Guangzhou Automobile Group co. (GAC) has invested an undisclosed amount in Uber. This investment will include partnership around auto sales, maintenances of cars, insurance and marketing. The Chinese automobile maker is believed to have submitted a formal statement to Shanghai Stock Exchange for the deal.

GAC produces both consumer vehicles — under its Trumpchi, Gonow and Changfeng Motor brands — in addition to buses and commercial trucks. This deal has the potential to boost both companies in their quest to further impact Chinese market in their respective fields.


 Guangzhou Auto is looking for increased market share in the Chinese car market. By investing in Uber, it is likely to achieve certain level of benefits because the Chinese ride-hailing industry is booming.

Notably, GAC has been putting extra focus on making green cars, an area where Uber has been showing increasingly high interest. This deal will also enable the Uber to step closer to its plan for developing green cars, that will eventually strengthen its business domain within China – a territory which has historically been a tough market to crack, for US technology companies.

Uber is already supported by Baidu Inc. in its China operations. This partnership will further aid Uber to fight against local competitors like Didi Kuaidi, who have been putting extra pressure on Uber for a while now.

This is also a part of Uber’s continued strategy of strengthening its foothold in Asian countries, especially when India’s Ola, China’s Didi Kuaidi Joint Co., US-based Lyft and Singapore-based GrabTaxi have now  the global taxi alliance to fight against it.

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Biplab Ghosh

Biplab lives his life around technology and is particularly keen to explore the intersection of technology and human behaviour. Always looking for new ideas, and ways that can make things simpler. He is a geek with the flair for travel and has great passion for music and theatres.

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