E-commerce group Alibaba has reportedly paid RMB 3bn ($460m) for a 10% stake in China-based chauffeured car service UCar, China Money Network reported yesterday, citing a legal document.
Although the report was accompanied by a photograph of the document, signed by UCar chairman Lu Zhenyao, in question, Alibaba has denied the report, according to Tencent Tech.
UCar was formed in January 2015 by car rental firm China Auto Rental (CAR) and provides a chauffeured ride service. Despite denying the investment, Alibaba and UCar did announce a strategic agreement that will involve UCar opening a store on Alibaba’s travel platform, Alitrip.
Alibaba’s reported investment follows $550m raised by UCar in September 2015 from Legend Capital, the corporate venturing subsidiary of conglomerate Legend Holdings, and private equity firm Warburg Pincus.
CAR supplied the company’s series A funding, investing $125m in July 2015.