GoGoVan and 58 Suyun merged build big logistics-hailing

GoGoVan became unicorn after the merger with 58 Suyun. The Hong Kong-based van-hailing application also plans to expand business to 200 cities in China and enter the Southeast Asian market in the next two to three years as the world's number one inter-city logistics platform. The combined company will use the name GoGoVan in English and 58 Suyun in Chinese.

Tinuku GoGoVan and 58 Suyun merged to build big logistics-hailing

"The goal of our merged company is to become the world’s largest short-distance logistics platform," said GoGoVan co-founder and CEO, Steven Lam.

The logistics market in mainland China is currently worth about 800 billion yuan (US $ 121 billion) for the business-to-business segment and 400 billion yuan for business-to-consumer. Markets are projected to grow by 20 and 15 percent annually over the next few years.

CEO of 58 Home Chen Xiaohua, which operates 58 Suyun business units, said the two companies will not compete and will complement each other with power in the market where the internet giant Tencent is the largest shareholder.

58 Suyun focuses on individual customers in more than 100 cities in mainland China, while GoGoVan operates in six Asian markets are Hong Kong, Singapore, South Korea, Taiwan, India and mainland China where has a strong corporate client base.