Please ensure Javascript is enabled for purposes of website accessibility

Why Uxin Stock Jumped Wednesday

By Daniel Sparks - Dec 12, 2018 at 11:26AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company's recently announced partnership with this Alibaba subsidiary is off to a running start.

What happened

Shares of Uxin (UXIN 5.48%), China's largest used car e-commerce platform, jumped on Wednesday. The stock rose as much as 30.4%. As of 10:55 a.m. EST, the stock was up 26%.

The stock's gain follows a press release from the company detailing a successful start to its new marketplace on Alibaba's (BABA -1.13%) online marketplace called Taobao.

Vehicles parked in a parking garage.

Image source: Getty Images.

So what

Uxin facilitated more than 2,000 used-car transactions on the company's new Uxin Taobao Marketplace store during the first 18 hours of Taobao's Double 12 Shopping Festival, the company said in a press release Wednesday. 

The news follows an announcement last week of Uxin's collaboration with the Alibaba subsidiary. A partnership between the two companies would not only bring Uxin's used car sales to the Taobao platform, but it would include posttransaction services, financing options, consumer protection policies, and a collaboration for an improved supply chain.

Now what

Uxin CEO Kun Dai was pleased with the Uxin Taobao Marketplace's early start, calling initial sales "robust." But the CEO is also excited about the important partnership's long-term potential. "This is just the first step in our partnership with Taobao," said Dai in the company's press release on Wednesday. "Going forward, we will continue to integrate and optimize our platform to make buying used cars online even more transparent and convenient."

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Uxin Stock Quote
Uxin
UXIN
$0.44 (5.48%) $0.02
Alibaba Group Holding Limited Stock Quote
Alibaba Group Holding Limited
BABA
$93.41 (-1.13%) $-1.07

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
356%
 
S&P 500 Returns
124%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.