Shares of China's largest used car e-commerce platform, Uxin (NASDAQ:UXIN), surged on Thursday. As of 1:16 p.m. EST, the stock was up 31.2%.
The stock's gain followed an announcement of a strategic partnership between Uxin and Alibaba (NYSE:BABA) subsidiary Taobao. Uxin and Alibaba's online marketplace Taobao are partnering to "foster further growth and expand service opportunities for used car e-commerce in China," the companies said in a press release on Thursday.
Specifically, the agreement between the two companies will enable Uxin and Taobao to establish a joint online used car shopping mall on the Taobao Marketplace. The mall will include used car shopping, post-transaction services, a robust suite of financing options, and consumer protection policies. In addition, the partnership will include a collaboration for an improved supply chain.
The companies assert that the partnership will extend Uxin's leadership in China's used car market by integrating its supply chain, transaction services, and infrastructure with Taobao's platform.
The partnership will deepen with time. In the future, the companies also "intend to collaborate on the enhancement of advanced data analysis in areas including intelligent used car recommendation and user behavior analysis, as more used car transactions are facilitated on Taobao," said the press release.