eHi, a Shanghai-based online car rental service, has secured over $100 million investment from China's leading OTA Ctrip.com and existing investors.
In 2012, US-based Enterprise Holdings invested in eHi for a 15% stake in the company. Now, Ctrip will become a strategic partner in eHi after Enterprise Holdings.
This week, Ctrip along with DCM invested $60 million in Yongche, Beijing-based online car rental service provider.
Tnooz spoke to Ctrip regarding the company's investments in online car rental market, Ctrip says:
"Car rental is a very small business for Ctrip now but (it) has great potential. Ctrip is still an OTA model for travel related services but with the strategic investment, we could with our strategic partners more closely (grow) together in the future."
eHi's other investors include Qiming Venture Partners, Ignition, Jasco, New access, CDH Ventures, and Goldman Sachs.
eHi provides self drive car service (has a latest-model car division too), and chauffeur driven limo services for corporates. All of these services are bookable online.
CEO and founder of eHi, Ray Zhang says:
"There will be many areas eHi and Ctrip may work together on Chinese travel products for consumer and corporate customers."As car rental has increasingly become part of an indispensable travel need for Chinese consumers and corporate clients, we feel there are many opportunities for us as well as for Ctrip to make more convenient travel packages for customers."
eHi says car rental industry has seen the fastest growth in China travel industry and this trend is expected to continue.
Its services span across 80 cities in China through more than 400 service outlets with a fleet size that exceeds 13,000 vehicles and 80 different vehicle types.
Founded in January 2006, eHi claims it as the largest car service chain in China.