On-Demand Logistics Platforms Grow in China
China’s private freight company Lalamove has been in the public eye after their trucks drove into the US Consulate in Chengdu, Southwest China's Sichuan Province, to transport items for US staff. As an internet logistics service platform that grew from the Greater Bay Area of Guangdong, Hong Kong, and Macao, Lalamove's business covers 352 cities in China, Hong Kong, Taiwan, and 21 overseas cities, with up to 6 million monthly active users on the platform. Lalamove’s customers include individuals who want to move home, as well as corporate clients such as e-commerce giant JD.com, state-owned oil refiner Sinopec, and retailer 7-Eleven.
Zhou Shengfu, the founder of Lalamove, said that the Internet logistics market will further expand and penetrate into fourth and fifth-tier cities in China. Also, he is convinced that the transformation of China’s freight industry by mobile is far from being over.
In addition, KrASIA reported that Didi Chuxing, Chinese largest ride-hailing platform, recently also ventured into the sector, unveiling a logistics channel inside its app. According to Securities Daily, the ride-hailer’s freight business has covered eight cities in China, including Shanghai and Hangzhou, achieving more than 100,000 daily orders. Other companies that have recently raised significant funding rounds for their logistics operations in China include Manbang and YTO.
It is noticeable that new investment comes in as competition in China’s on-demand logistics market is heating up. Revenues of China’s major logistics players quickly bounced back after months of depression due to Covid-19. Meanwhile, some market analysts believe that the logistic market is more complicated, fractured, and lacking in standards compared to passenger transport. The competition will be fierce with lots of cash burn.
Photos from Retails News from Asia
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