Uxin Ltd (NASDAQ: UXIN) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that it has entered into a partnership with a website operated by Alibaba Group (BABA). Of course, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The partnership news;
- what we’re seeing from the stock; and
- what we’ll be watching for with regard to UXIN ahead.
UXIN Announces Partnership News
As mentioned above, Uxin is having an incredibly strong start to the trading session this morning after the company announced that it has entered a partnership. In a press release issued early this morning, the company announced that it has entered into a strategic partnership with Taobao, a website operated by Alibaba.
In the release, UXIN said that the two companies will collaborate in the areas of business to consumer and business to business used car transactions, integrated supply chain, and used care loan facilitation.
Under the terms of the agreement, the two companies will establish an online used car shopping mall within the Taobao Marketplace. UXIN said that through the partnership, it will extend its leadership by integrating its nationwide supply chain of cross-regional transaction services in infrastructure with Taobao’s platform.
In a statement, Kun Dai, Founder, Chairman and CEO at Uxin, had the following to offer:
As China’s largest used car e-commerce platform which pioneers in facilitating cross-regional transactions, Uxin’s platform 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.
Over the past few years, consumers have become increasingly receptive to buying used cars as a cost-effective alternative to new vehicles. This is particularly the case for consumers in lower-tier cities. With extremely limited used car selection in most cities, there is rapidly growing demand for an online platform that expands access to used cars from across the country. 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.
The above statement was followed up by Fan Jiang, President at Taobao. Here’s what he had to say:
We are excited to cooperate with Uxin to explore new retail opportunities in the used car vertical… With unparalleled understanding and expertise in China’s used car industry, Uxin has transformed the used car supply chain over the past seven years. By effectively tackling challenges throughout the used car transaction 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 close loop of efficient and professional used car transaction services. We are confident that Uxin will become an integral part of Alibaba’s ecosystem. Through the combination of Uxin’s nationwide supply chain and Alibaba’s massive traffic, our partnership will bring significant benefits to both used car consumers and business customers.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Uxin, the news proved to be overwhelmingly positive. After all, the partnership with Taobao will greatly expand the company’s audience. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:20), UXIN is trading at $3.58 per share after a gain of $0.72 per share or 25.17% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on UXIN. In particular, we’re interested in following the story surrounding the new partnership and the expanded sales and revenue it generates for the company. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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