Chinese ride-hailing company Wanshun to go public in the US via a SPAC

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On September 4, Chinastarmarket stated that Wanshun Car-Hailing, a ride-hailing service platform located in Shenzhen, had just established a cooperation deal with an overseas special purpose acquisition company (SPAC) that plans to go public in the United States this year. Wanshun Car-Hailing was founded in the year 2016 with 100 million yuan ($14.4 million) of capital and its headquarters in Shenzhen, according to public records. Its primary business is platform-based shared travel and customization, sales, and deployment of new energy vehicles. Zhou Zhengqing is the company's controller, with 41.97% of the shares.

According to data, the firm's car-hailing and new energy vehicle sales businesses raked in over 5 billion yuan in 2021. It has secured online car-hailing service permits in 350 cities throughout China as of July 2022, making it the biggest in the sector at the time. It currently has over 600,000 licensed drivers, over 2 million locally registered drivers, and more than 110 million users.

Wanshun Car-Hailing, unlike other online car-hailing services, also offers retail outlets. It has so far developed over 12,300 offline storefronts that serve as the platform's "driver's home" and new energy vehicle sales outlets.

According to some insiders, Wanshun Car-Hailing previously had no public records of foreign equity funding and listing in the U. S. would surely increase its direct financing avenues. This action, on the other hand, assists to enhance company branding and boost its market share.

However, at the start of August this year, several drivers reported that Wanshun Car-Hailing had pushed them to engage in click farming and benefit from it. The business suggested a unique strategy called "co-partner plan" on its official website, claiming to be the first Chinese company to do so. This approach enables drivers to work as co-partners in order to attract additional drivers to the platform. A driver also complained on a Chinese complaint forum that the firm had made fraudulent claims and was suspected of money laundering, and that its "co-partner" model was a pyramid scheme.

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