Internet company LeTV Holdings Co Ltd took the wheel of car-hailing service provider Yidao Yongche on Tuesday, making the Beijing-based smartphone maker and online video provider the latest tech giant to enter the cash-burning sector.

A unit of LeTV bought a 70 percent stake in Yidao, which is losing a battle against Alibaba Group Holding Ltd and Tencent Holdings Ltd-backed Didi Kuaidi as well as the United States firm Uber Technologies Inc.

LeTV did not disclose the size of the investment, but multiple sources told China Daily the amount was roughly $700 million.