China’s largest used car e-commerce platform Uxin and Alibaba’s leading e-commerce platform Taobao are joining hands to further serve Chinese consumers and car dealers with abundant used car choices, effective financial means and advanced technology to ensure the quality of used cars.
In Hangzhou on Dec. 6, Uxin (NASDAQ: UXIN) and Taobao announced a strategic partnership to foster further growth and expand service opportunities for used car e-commerce in China by jointly establishing an online used car shopping mall on Taobao. The two platforms will collaborate in the areas of B2C and B2B used car transactions, integrated supply chains, and used car loans to serve consumers around China.
At the initial stage, the two will provide a number of used car products and service offerings ranging from intelligent listing, displaying, and matching, to one-stop transaction solutions.
With access to Uxin’s inventory of over 290,000 used cars and cross-regional transaction facilitation capabilities, Taobao users will now be able to purchase used cars from anywhere in China. Chinese consumers can now make use of a full range of financing and post-transaction services, with superior consumer protection policies provided by both Taobao and Uxin.
“As China’s largest used car e-commerce platform which has pioneered cross-regional transactions, Uxin shares many similarities with Taobao, which presents many areas for potential synergies. We are honored to work with Taobao to provide Chinese consumers with integrated used car transaction services,” said Kun Dai, Founder, Chairman and Chief Executive Officer of Uxin.
Used car trading has a promising future in China. According to the China Automobile Dealers Association, 7.89 million used cars were sold from January to August 2017, an increase of 20.85% over the same period last year. The number of domestic used car transactions is estimated to reach 20 million by 2020.
Dai pointed out that an increasing number of Chinese consumers choose used cars over new vehicles, especially in lower-tier cities, due to their more affordable prices. As most cities have only limited used car selections, there is higher and higher demand for an online platform that expands access to used cars from across the country, he said.
“By combining Uxin’s unique ability to support cross-regional used car transactions with Taobao’s massive e-commerce traffic and superior data capabilities, we are confident that we can take the used car purchasing experience to the next level,” Dai said.
Taobao also recognizes Uxin’s value in its supply chain. Fan Jiang, President of Taobao, said that Uxin has effectively tackled challenges throughout the used car value chain, such as providing a wide selection of high-quality used cars, standardized used car inspections, value-added services and used car logistics.
“Uxin has created a closed loop of efficient and professional used car transaction services. Through the combination of Uxin’s nationwide supply chain and Alibaba’s massive user traffic, the partnership will bring significant benefits to both used car consumers and used car businesses,” Jiang said.
The partnership will further help car dealers, because the supply chain platform could further extend their market reach to third and fourth-tier cities. Taobao’s brand influence and payment guarantee system, coupled with Uxin’s extensive supply chain, can not only help large used car dealers build integrated online sales processes, but also aid medium and small-sized car dealers to solve problems such as testing, sales channels, and after-sales protection.
In addition, the two companies also aim to collaborate on the enhancement of advanced data analysis in areas including intelligent used car recommendations and user behavior analysis, as more used car transactions are facilitated on Taobao. In addition to the joint control of the quality of used cars, Uxin and Taobao will use technologies such as artificial intelligence, big data, and machine learning to accurately analyze the price and residual value of used cars.
(Top photo from Uxin)
Liukun Wei has contributed to the article.