- Zhejiang Geely Holding Group and Tencent Holdings Ltd have successfully won a joint bid to obtain 49% share in the recently created High Speed Network Technology Company.
- Geely and Tencent will collaborate to offer an integrated one-stop mobility service platform for users.
2018 June 7, Hangzhou. Zhejiang Geely Holding Group (Geely) and Tencent Holdings Ltd (Tencent) announced that they have successfully won a joint bid to acquire a 49% stake in High Speed Network Technology Company (High Speed Network). Geely and Tencent joined together in the three-way joint venture to create an integrated one-stop platform that will offer mobility service to train users.
High Speed Network was established in December 2017 as a subsidiary of state-owned China Railway Corporation to provide WiFi and technology services to high-speed rail customers across China. The equity offering was part of a new policy to reform state-owned enterprises through mixed ownership structures of state owned and private enterprises. The Geely-Tencent partnership created for the bid, stood out from others based on the two company’s experience in innovation, mobility, and online services.
Geely and Tencent will collaborate to increase the number of WiFi hotspots and create a platform offering value-added services throughout the high-speed rail network. The new platform is part of a wider move towards creating a smart and intelligent transportation network across China. It will offer ticket services, shopping, tourism and catering services from the jointly developed WiFi Platform.
In a statement, Geely Chairman, Li Shufu said “As an automotive technology company, Geely has continuously advanced the development of cutting-edge technologies and has accumulated rich experience in the areas of mobility and smart ecology whilst providing a leading user experience. As the country deepens its reforms, we join hands with Tencent to provide passengers with highly integrated smart mobility services in order to meet their diverse traveling needs.”
Chairman and Chief Executive of Tencent, Pony Ma stated that “The digital era in China is undergoing a period of change and opportunity. Tencent hopes to become a digital assistant, where it will share its spirit of “digital craftsmanship” to help everyone achieve a transformation and upgrade themselves digitally. The acquisition of the 49% share in High Speed Network by Geely and Tencent is an important step in the reform of state-own enterprises and the development of smart transportation. We will join hands with Geely to create an open and cooperative ecosystem of railway internet services and provide passengers with one-stop travel solutions.”
High-speed rail has become an important part of Chinese people’s lives. In 2017, the number of high-speed railway passengers exceeded 1.7 billion. With the continued development of high-speed rail infrastructure, passengers have increasingly pushed for better services, including stable, high-speed, and comprehensive mobile network services. Geely will use its strengths in innovation, advanced mobility solutions, smart driving, and new energy to ensure High Speed Network in its mission to “provide service digitally and make travel smart.”
As a global automotive group that is transforming through high-tech development, Geely has accumulated strong experience in ride hailing, connectivity, and digital mobility services. Founded and invested in by Geely, CAOCAO is a committed to developing a new energy vehicle based mobility service platform that through cloud commuting, big data, and other technologies helps create a smart transportation network connecting people and vehicles. Today, CAOCAO has already been put into operation in 24 cities across the China with more than 23,000 new energy vehicles in its network.