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ChinaTravelNews learned that Ctrip has acquired Beijing-based TangRen World, a ground transport service provider for Chinese outbound tourists. Yuchen Wang, CEO of Ctrip’s land and water transport unit, has confirmed the move and said consolidation between the two companies is in progress, but he declined to reveal deal details such as transaction cost. According to Mr. Wang, after the acquisition, TangRen World’s strength in connecting ground transport suppliers will be integrated with Ctrip’s own advantages as an online aggregating platform for various travel services.
The combination will help further standardize the service quality in the sector at the business end, while TangRen World will still operate as an independent brand at the customer end. Overseas ground transport solutions include car-hailing and car-rental services. Guangzhou-based Zucuche raised RMB 700 million in its series B and B+ rounds in August 2016. Shanghai-based Huizuche received RMB 200 million in its B round funding in June 2016. Beijing-based Hi Guides closed its series B round in August 2016 reaping RMB 120 million. Hangzhou-based Yitu8.net’s series A+ and B rounds of financing brought the company a total of RMB 170 million this year. After the acquisition, Ctrip plans to sort out customer needs and supplier information of outbound Chinese travelers’ ground transport services by leveraging TangRen World’s resources, and build a set of quality control standards for the service, ahead of setting pricing rules and management procedures of the “Driver+Guide” service. Ctrip’s takeover of TangRen World will bolster service quality of the highly fragmented overseas transport sector and put competitive pressure on other suppliers in the sector. The deal may even impact on the car rental segment to some extent. Ctrip’s increasing control on outbound car-hailing service will also help the company expand and consolidate other destination services such as tours and shopping. (Translated by Jerry) |
