According to a Chinese statement, Cao Cao Mobility (the ride-hailing arm of Chinese automaker Geely Automobile Holdings) has announced a Series B raise in the amount of $589 million (RMB 3.83 billion). The company claims that this will allow it to upgrade its technology and expand the fleet.
Cao Cao announced Monday that the company's total funding was now at $773.2 million (RMB 5.8 billion). Suzhou Xiangcheng Financial Holding Group was the lead investor in the round, along with Suzhou High-Speed Rail New City Group (three other state-controlled entities) and Suzhou High-Speed Rail New City Group.
Cao Cao's largest competitor, Didi Global (a Chinese ride-hailing app) is currently under cybercrime investigation by the Chinese government. This has caused stock prices to plummet. Didi was a staple of China's ride-hailing industry, so any setbacks could create a vacuum for others.
Cao Cao is available in 62 Chinese cities. In July, ride volume increased 32%. Didi was also taken out of app stores in China. According to the Ministry of Transport, Meituan, China's e-commerce company, saw a 24% increase in ridership in July. Bloomberg reports that the Chinese government is shaming Meituan, as well as Amap, Alibabas ride-hailing service and navigation unit, for disrupting fair competition, and harming the interests of passengers and drivers.
Cao Cao, while all the other ride-hailing players are under scrutiny by the government, is well placed for growth and a greater market share as long as it's playing fair.