Ideanomics Purchases BYD’s Electric Vehicles for Mass Rideshare Service Across China

By Thomas Price Tuesday, January 5, 2021

The business of electric vehicles (EV) has been radically changing the automobile industry in recent years. With sales and development of highly efficient batteries and vehicles ramping up even further in 2020 and 2021, the future of transportation looks to be very different in the very near future. This becomes even more salient when looking at the many businesses that have already made major investments into the market for public or commercial uses. Ideanomics has recently made waves within the electric vehicle world with their company, Mobile Energy Global, or MEG, purchasing a veritable fleet of EVs from Meihao Chuxing, a joint venture between BYD and Didi. So, what are the details of this purchase, who are these companies, and what effect will be seen from this decision in the near future?

MEG and Meihao Chuxing

Mobile Energy Global or MEG is a division of Ideanomics that focuses on ramping up use and sales of commercial electric vehicle adoption. The basic premise of how MEG works breaks down into a few different aspects. The first of which is the sale of electric vehicles. The company helps fleet operators purchase and procure their choice of electric vehicle best suited for their needs and then collects a fee on these sales for facilitating the deal. This is taken a step further with MEG by helping the fleet operators make these large scale purchases without a large cash deposit through the assistance of MEG’s many financing partners, again taking a fee for connecting the operators with these partners. Finally MEG also earns revenue from selling pre-paid or wholesale electricity that is used specifically for charging personal and commercial EVs. The bulk of MEG’s work is done with a major focus on pushing the electric vehicle goal in China specifically.

Mehao Chuxing on the other hand is a joint venture between BYD and Didi created to build and develop the world’s first custom-built, fully EV car created specifically for ride-hailing. BYD works on a series of energy and electric products and solutions including EVs and batteries while Didi is a rideshare service that is widespread and popular in China.

The created BYD D1 model comes equipped with L2 Assisted Driving and will be linked with a fleet management system in order for operators to better optimize the vehicles, while also monitoring energy and other important factors. The vehicle has a range of 260 miles due to its Blade Battery and can reach a top speed of 81 mph. The venture is split 65/35 between BYD and Didi, respectively.

MEG’s Purchase Details and Plans

MEG’s recent purchase agreement was for 2,000 of the BYD D1 vehicles. These vehicles will then be utilized across multiple cities in China for ride-hailing through the use of Didi’s rideshare app. The deliveries on this massive purchase are set to begin in the first half of 2021 with deployment into the Chinese cities happening very shortly after that. This should be a major and possibly lucrative step toward the further adoption of electric vehicles into rideshare and taxi services business. This becomes particularly enticing when considering that the projected value of the EV market in taxis and rideshare services in 2025 is $30 billion.

The purchase of these 2,000 electric vehicles by MEG is one of many decisions that look to be happening across the entire automobile industry as environmental sustainability continues to be pushed to the forefront of the entire field of transportation. With more and more vehicles that will be in high use, switching from internal combustion to electric, MEG’s purchase should play a small part in lowering overall carbon emissions and quite possibly generating a lot of revenue as well for businesses.

About the Author

Headshot for author Thomas Price

Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

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