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Senmiao Technology Ltd (NASDAQ:AIHS) stock continues to trend higher in the previous session on high volume. The stock ended up by over 22%, extending its weekly gains to 34%. However, despite the recent gain, the stock is still down over 73% so far this year.
Senmiao Technology Limited announced on September 27, 2022, that its wholly owned subsidiary Chengdu Xixingtianxia Technology Co., Ltd. has signed an agreement with Guangzhou Baishi Haoyun Automobile Leasing Services Ltd., which is a leading automobile leasing company that has operated locally in Guangzhou for 20 years.
According to the recent agreement with Chengdu Rongcheng Yueda Technology Ltd., Baishi Haoyun will utilize Senmiao’s online ride-hailing platform to provide ride-hailing services. These services are to be provided by appointment in Guangzhou, using its own vehicle and driver resources while remaining in compliance with relevant regulations.
Baishi Haoyun will assume responsibility for the management services of its own drivers. Senmiao will assign online ride orders to Baishi Haoyun’s drivers and provide real-time information including service types and prices. It will even pay commission fees to Baishi Haoyun on a monthly basis, which are based on fares collected from customers.
Xi Wen, Senmiao’s Chairman, and Chief Executive Officer, said that Guangzhou is one of the key cities in which Senmiao has a fantastic opportunity to boost its market share. They are in the ideal position to serve a larger population in this city with the support of vehicles and drivers from Baishi Haoyun. The partnership commenced in August 2022 for a term through August 2, 2023, subject to agreement renewal or early termination.