Uxin Ltd (NASDAQ: UXIN) is climbing in the market today after the company announced that it has entered into a new partnership. Of course, the news of the partnership excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The company’s partnership with Alibaba;
- what we’re seeing from UXIN stock as a result; and
- what we’ll be watching for ahead.
UXIN Announces Partnership With Alibaba
As mentioned above, Uxin is having a great day in the market today after the company announced that it has entered into a partnership with Alibaba. In a press release, the company said that it has partnered with Taobao, an online platform that is operated by Alibaba Group. Through the partnership, the two companies will work together to develop a new, online platform for the sale of used vehicles, both on a business to business and a business to consumer level.
This is overwhelmingly positive news for Uxin as the partnership with Taobao will greatly expand the company’s audience. After all, the website is one of the largest marketplaces in China today. 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 offer:
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
As investors, one of the first lessons that we learn is that the news moves the market. In the case of Uxin, the news proved to be overwhelmingly positive. After all, the company is partnering with one of the leading online marketplaces in China, greatly expanding its audience and opening the doors to what may become a large stream of revenue. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top in the market this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:11), UXIN is trading at $3.73 per share after a gain of $0.87 per share or 30.42% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on UXIN. In particular, we’re interested in following the story surrounding the company’s work with Alibaba to create the online used vehicles marketplace. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!