CHENGDU, China - Senmiao Technology Limited (NASDAQ:AIHS), a player in China's online ride-hailing industry, has entered into a strategic partnership through its subsidiary Sichuan Senmiao Zecheng Business Consulting Co., Ltd. with Chengdu Daren Duoduo Culture Media Co., Ltd. The collaboration, formalized on February 20, 2024, aims to develop an AI-driven application named "Thinking Cell" to support ride-hailing drivers and local lifestyle merchants.
The new application is designed to enhance the promotional and sales activities of local businesses and provide customized services to drivers on Senmiao's ride-hailing platform. Senmiao will contribute its AI technology expertise, while Daren Duoduo will handle the operation of Thinking Cell. The initiative is also expected to bolster Senmiao's SMS marketing campaigns and potentially improve the online ride-hailing experience for customers.
Xi Wen, Chairman and CEO of Senmiao, expressed enthusiasm for the joint venture, anticipating benefits for both Daren Duoduo's partners and Senmiao's drivers. He highlighted the potential for an improved on-the-road experience and increased satisfaction across the company's business operations.
Senmiao Technology operates its own ride-hailing platform and provides a range of automobile transaction and related services, including sales, financing, and leasing. The company's focus is on the burgeoning online ride-hailing market within its operational regions in China.
The collaboration with Daren Duoduo, a company specializing in group purchasing services and influencer training, may also explore additional applications of the Thinking Cell technology in the future.
This article is based on a press release statement from Senmiao Technology Limited.
InvestingPro Insights
As Senmiao Technology Limited (NASDAQ:AIHS) embarks on its strategic partnership to develop the "Thinking Cell" application, investors are closely monitoring the company's financial health and stock performance. According to recent data from InvestingPro, Senmiao Technology has a market capitalization of $7.18 million USD, reflecting its position in the market. Despite the company's innovative efforts in the online ride-hailing industry, it has not been profitable over the last twelve months, as indicated by a negative P/E ratio of -1.62. This could be a point of concern for potential investors evaluating the company's earnings potential against its share price.
In terms of stock behavior, AIHS has experienced significant price volatility, which is an important consideration for investors looking for stability in their portfolio. The InvestingPro Tips also reveal that the stock has seen a strong return over the last month, with a 45.16% increase, and an even more impressive three-month price total return of 150.85%. This recent uptick could signal a shift in investor sentiment, possibly tied to the company's latest technological initiatives and market strategies.
For those interested in a deeper analysis, there are additional InvestingPro Tips available that shed light on the company's long-term price performance and dividend policy. Senmiao Technology does not pay a dividend to shareholders, which might influence the investment decisions of those seeking regular income from their investments. With these insights in mind, investors can make more informed decisions while considering the potential impact of the new AI-driven application on Senmiao's future growth.
For a comprehensive analysis and access to more InvestingPro Tips, visit InvestingPro and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are currently six additional tips listed on InvestingPro for Senmiao Technology Limited that can further assist investors in their research.
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