Briefing: Taobao doubles down on used car sales with Guazi and Souche

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淘宝二手车分别与大搜车、瓜子二手车达成合作 – 36Kr

What happened: Alibaba’s online marketplace Taobao announced on Thursday that it is partnering with Guazi and Souche, two major online used car marketplaces, in separate statements. Guazi will add to its existing store on Alibaba’s auction platform, by opening a Taobao store. With the Souche tie-up, the two parties will join resources for the launch of an online used car shopping mall.

Why it’s important: China’s used car trading is growing rapidly with nearly 14 million cars sold in 2018, up 11.5% year-on-year, according to a report released by China Automobile Dealers Association. The removal of restrictions on used car re-sale locations in 2018 ramped up demand across regions. Taobao began moving toward its goal to create a one-stop destination for online used car selling beginning last year. The company inked a similar partnership with Uxin, another leading online used car market, in December. Alibaba is a Souche investor, while Alibaba and Guazi have a common investor following its $1.5 billion funding from Softbank in February.