E-commerce giant Alibaba Group Holding has agreed to buy a 10% stake in a Shanghai-based state-owned online ride-hailing service, joining the flood of investment into the sector since market leader Didi Global had 25 apps removed from domestic app stores earlier this year amid a probe into violations of data privacy and security.
Dazhong Transportation Group said in a filing to the Shanghai Stock Exchange on Wednesday evening that Alibaba will invest 40 million yuan ($6.27 million) in its ride-hailing subsidiary Letzgo. The deal is subject to regulatory approval and will be scrapped if it fails to get the green light, the company said in a separate filing.
