Investment in rideshare start-up broadens Michelin’s product promotion horizons in China

Through its Incubator Office, Michelin has invested in a start-up in China that has developed and promotes a mobile application dedicated to providing ridesharing matches and services. The company is called Luli Information Technology (路俪科技), and Michelin sees growth potential for the firm in what it believes will be a significant market for ridesharing – a concept the tyre maker views as a “key component of a multi modal transportation ecosystem for today’s cities.”

The app is called Lu You tong Xing (路友同行) and it is primarily used to facilitate ridesharing during the daily commute. It draws upon experience gained in its maker’s its core area of expertise, and Michelin sees the app and Luli’s strategy as aligning with its own “perspective of caring about people, the environment and doing the right thing.”

“This investment is a unique industrial partnership in the shared economy that not only gives Luli exceptional visibility as a challenger in the market but also promising business opportunities,” stated Jean-Claude Zhang, chief executive officer at Luli Information Technology. “It also positions Luli as a responsible provider of ridesharing services.”

Philippe Barreaud, head of Michelin’s innovation incubation programme in Asia, added: “This investment clearly strengthens Michelin’s position as a player in the area of sustainable mobility and also creates an additional channel to promote our offering of products and services to consumers in China.”

The Incubator Program Office (IPO) is an entity within the Michelin group tasked with developing and rapidly testing innovative business models outside the tyre industry. Since the launch of IPO Michelin, two incubators have been created in the United States and in China, together with a third incubator in Europe. Furthermore, the Michelin Incubator Program Office has already selected 20 projects and start-ups.