58 Suyun, freight subsidiary of Chinese online marketplace 58 Home, has entered into a merger with GoGoVan, an intra-city logistics and online platform based in Hong Kong.
According to the two companies, the merger will create the largest online intra-city logistics platform in Asia. The merged company, in which 58 Home will hold a majority stake, will retain the 58 Suyun brand in China and the GoGoVan brand outside China.
“We are very impressed by GOGOVAN’s great achievements and impacts as a start-up in the Southeast Asian market, as well as the management team’s entrepreneurial spirit and their ability to innovate and execute,” said Xiaohua Chen, founder and CEO of 58 Home who will also serve as chairman of the merged company. “The combined company will have the ability to expand in both mainland China and Southeast Asia as well as provide more tailored and well-rounded services to customers. The merger also lays the foundation for the combined company to become the global leader in intra-city freight services.”
The company will be the only online platform in Asia to provide full on-demand logistics and freight services to both corporate and individual customers in mainland China, Hong Kong, Taiwan, Singapore, South Korea and India.
“We are delighted to form our strategic partnership with 58 Suyun,” said Steven Lam, founder and CEO of GoGoVan who will serve as CEO of the new merged company. “I’m grateful for the trust and support from Mr. Chen Xiaohua and 58 Home, and I look forward to leading the combined company to new growth and development. The combined company will leverage 58 Suyun’s existing premium brand, large user base and online traffic for a quick expansion to 300 cities in mainland China. Meanwhile, by leveraging GoGoVan’s logistics expertise and business development experience in Southeast Asia, the combined company will further accelerate its growth in other Asia markets. Last but not the least, we aim to continue offering high-quality, efficient and reliable logistics services for enterprise clients.”
