The Shanghai, China-based car rental company, eHi Car Rental, announced Aug. 30 that it signed a $70-million investment agreement with a group of investors, including Goldman Sachs as the lead investor and eHi's existing shareholders.
eHi operates more than 120 self-drive service locations in 34 cities, serving over half a million customers. The company also provides chauffeured service in more than 70 cities and serves nearly half of the Fortune Global 500 companies in China. Its 4,000-plus vehicle fleet includes a variety of models from small vehicles to buses.
"This is by far the largest equity investment in the Chinese car rental business. In conjunction with the previous two investments we received from other leading investors, this transaction connotes recognition of our leading position in the industry," said Ray Zhang, eHi's founder and Chairman CEO. "After this closing, we will further expand our fleet and geographical coverage, provide more value-added services and pioneer a greener life style through car sharing for our customers, promote fleet outsourcing to more corporate clients, and maintain our leading position in China's car rental market."
eHi was the first car rental company in China to launch a car-sharing service in Beijing and Shanghai in 2009. The company said car-sharing has the potential to reduce congestion and pollution in Beijing, which added an average of 1,900 cars per day in the first six months of this year.