Baidu Enters Used Car Market In China
As we have noted in a series of posts about Baidu, the company certainly has its fingers in a lot of different investments. Most of them are consumer focused, and many of them revolve around the future of users in China. On Thursday, Baidu invested in a $170 million investment in used cars for China consumers.
The funding for the Chinese company Uxin, is a four year old company in the making, and has gotten a ton of cash thrown its way. It has raised $430 million so far, but the investment is small compared to the China used car market, which is soaring as more consumers want cars in the country.
Baidu and Used Cars?
Although the used car market in China has gotten big, Baidu’s postition in the market is still a little questionable. Baidu’s investment into Uxin is actually started as a business to business seller of cars, but found its niche in selling to Chinese consumers. It forms a place for dealers and consumers to meet online.
The Uxin startup has 1,000 specialists throughout 50 cities in China, who inspect cars and offer refunds if the cars are no good. Additionally, the company offers financing on the vehicles, which is rarely done in China. Baidu though, sees the investment as a way to connect users to cars in the China market.
Baidu In China Growing
What this investment in Uxin shows, is that Baidu is continuing to see the China region grow, and is attracting Chinese consumers in new ways. By giving them a market to the cars, giving them the data on the cars, and a platform to buy them, users will know Baidu throughout the car buying process.
Auto financing is not done much in China, and Baidu has a lot of capital to kickstart that in the country as well. Baidu has massive datacenters that can crunch the data, provide search data on the cars, and give users a positive experience in buying cars. Baidu is a unique company in this way, and sees China’s used car market as an untapped market for them.
Baidu is reaching into another new market in China. It could be huge, or could be a flop, only the future of cars in China will dictate that in the future.