Senmiao Technology Ltd (NASDAQ:AIHS) reported a robust growth of 514% in revenues from automobile transaction/ associated services to $15.655 million in 2020. Its revenues from the sale of automobiles surged to $11.536 million in 2020. It rose by 535% compared to the previous year.
Posts stellar growth in the first nine months of 2020
President, CEO, and Chairman of Senmiao, Xi Wen, said the company posted stellar growth in 2020 though suffered slowdown in Q4 2020 because of ongoing coronavirus crisis. The company increased its revenues almost five times by streamlining automobile transactions and related services. Its business expansion to Changsha and Chengdu offered rich dividends. Senmiao conducts its automobile transactions through Jinkailong Automobile Leasing Co., Ltd.
Bets on long term growth
Senmiao expects to maintain strong growth in the long term in China because of rapidly growing online ride-hailing service. The company shifted its focus to proving automobile rental services from automobile transactions in the near term to target better growth.
Sourcing funds to maintain operations
Senmiao is also mobilizing capital to continue its operations at this difficult juncture. As part of this initiative, the company received $7 million in funding from Hongyi Industrial Group Co., Ltd to support auto business in China. The company will also expand its operations in South Western China.
Q1 2020 results of Uber
Uber Technologies Inc (NYSE:UBER) posted revenues of $3.5 billion in Q1 2020. Its revenues surged by 14% compared to the previous year.
The gross bookings of Uber rose by 8% to $15.8 billion. Eats improved by 54% YoY, whereas rides dropped by 3%.
CEO of Uber, Dara Khosrowshahi, said its rides business is impacted by COVID-19 pandemic. The company focuses on Eats business to maintain a healthy balance sheet. It is also encouraged by the reopening of the businesses. Uber expects to stage a smart recovery because of its variable cost structure and presence worldwide.
Uber is maintaining ample liquidity to tide over the current crisis. CFO, Nelson Chai said the company is also taking alternative measures to emerge stronger. Uber recently adopted cost-cutting measures like reducing recruiting teams and supporting teams and exiting unprofitable Eats in eight markets.