(Yicai Global) Oct. 17 -- China's largest state-owned taxi operatoris the latest in a long line of firms chancing their luck at breaking into the country's ride-hailing market, which Didi Chuxing has towered over since mid-2016.

Qiangsheng Taxi, one of China's oldest cab companies,has established Qiangsheng Bannixing, a Shanghai-based joint venture with LSS Financial Leasing, the two parties said in a statement. The new company aims to cover between 50 and 100 major cities by next year, though that may change depending on demand in local markets.

The setup follows similar moves by car giant Geely and firms such as Alibaba-backed bike-sharer HelloChuxing and lifestyle services platformMeituan-Dianping. State-owned SAIC Motor is also considering entering the market, a report said at the end of August. These new players could threaten Didi's 63 percent market share after drivers murdered two passengers this year, damaging its position and reputation.

Qiangsheng Bannixingaims to be the first ride-hailer to set up a standardized management system for vehicles and drivers. Its platform, Qiangsheng Smart-E, will deal with driver-related issues such as rest stops, vehicle maintenance and charging as well as roadside rescues and traffic law violations.

"There is no direct competition between Qiangsheng Smart-E and existing ride-hailing platforms," said Hu Lielei, director and general manager at LSS Financial Leasing. "The service model will help us to gain customers, solve problems related to idle transportcapacity,while improving service and efficiency."

The JV is already cooperating with vehicle providers and rental firms such as CaoCao Car, Weltmeister GetnGo, Huolala and Kuaigou Hailing. Operations are focused on the eastern Yangtze River Delta area at present and could expand to surrounding areas.

Editor: William Clegg