Ideanomics, a global Fintech and AI catalyst for transformative industries, announced the signing of a strategic joint venture with China’s iUnicorn. iUnicorn is a top-five Chinese ride-hailing service in both ridership and financial performance, which offers only luxury branded electric vehicles such as Tesla, BMW, Buick, Mercedes, and Cadillac, in addition to Chinese electric vehicle manufactures. The JV will become a green finance and integrated marketing service enterprise for new energy vehicles as part of Ideanomics’ New Energy Vehicle division. The JV will become the exclusive sales, marketing, operations, and financing partner for iUnicorns activities, as well as for other EV activities, including tour bus and other specialty vehicles.
Ideanomics will have 50.1% ownership control. The board will contain 5 members comprised of 3 from Ideanomics, including the chairman, and 2 from iUnicorn. Additionally, iUnicorn will appoint the CEO and the parties will coordinate on the appointment of the JV’s CFO. The JV will be domiciled outside of China to allow the flexibility to spin-off the business in the future.
Ideanomics will contribute advisory and sales responsibilities which will include arranging ABS-based auto financing with its bank and financing partners, from assets provided by vehicle manufacturers to the value of 5 Billion RMB, as well as order origination in Vietnam, and other target territories up to and including the U.S. Ideanomics will also contribute its tour bus and commercial vehicle orders.
iUnicorn will contribute its signed sales orders in Chengdu of 19,000 vehicles, plus a further 89,000 vehicle orders mainly in Sichuan province, which are in addition to the Chengdu order. iUnicorn will also provide sales and operational support for the joint venture. The fulfillment of these orders will commence immediately, with the Chengdu order anticipated to begin to take delivery during the 3rd quarter of 2019. The JV will generate revenues from fees from ABS, ranging from 0.7% to 1.5% and also commissions on vehicle sales orders, which will vary according to manufacturer and vehicle model.
China has approximately 1.5 Million taxis operating in its towns and cities, making it one of the largest focus areas for the reduction of carbon emissions from vehicles. Vietnam has seen 15% CAGR in the number of taxis between 2012 and 2017 and shows no signs of slowing with a high-growth population currently at 95 Million people and reflective of the ASEAN region as a whole.
“Ideanomics has the right experience in the electrification and cleantech markets for iUnicorn to succeed and outpace our competitors. Our ability to collaborate in multiple areas will benefit our riders, our drivers, and our shareholders,” said Yang Guang, Chairman of iUnicorn. “We are excited about the revenue opportunities available to this joint venture, and Ideanomics provides a strong entry point into the Ex-China and U.S. markets, on the ground and in the capital markets.”
iUnicorn offers luxurious ride-hailing services with luxury branded electric vehicles such as Tesla, BMW, Buick, Mercedes, and Cadillac. iUnicorn aims to solve the safety and comfort problems of private travel, as well as provide high-end, standardized, professional and private business vehicles for enterprises. iUnicorn has been operating profitably in Guiyang, Chengdu, Shanghai, Shenzhen and Guangzhou, and first-class service has begun to grow nationwide.
Ideanomics is a global Fintech and AI catalyst for transformative industries. Ideanomics combines deal origination and enablement with the application of blockchain and artificial intelligence technologies as part of the next-generation of financial services.
The company is headquartered in New York, NY, and has offices in Beijing, China. It also has a planned global center for Technology and Innovation in West Hartford, CT, named Fintech Village.