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China’s Didi Chuxing to launch cargo delivery service

Didi Chuxing cargo delivery
The services will be available in Chengdu and Hangzhou

China-based ride-hailing company Didi Chuxing has announced that it is launching an on-demand cargo delivery service, the media reported.

The cargo delivery service by Didi Chuxing will be available in Chengdu and Hangzhou and will start operating on June 23.

Customers will be able to place logistic orders through Didi Chuxing’s mobile application.

A spokesperson from Didi Chuxing told TechWeb that the company selected Chengdu and Hangzhou as the first two pilot cities after a comprehensive assessment based on user votes and driver registrations in various cities.

According to reports, the company has hired more than 20,000 drivers so far and recruitment and training are still underway. Didi Chuxing has also hired two logistics companies for the recruitment and training process.

Didi Chuxing’s intention to launch a freight delivery service were speculated a month ago, when it took out a job ad to hire van drivers in 10 Chinese cities.

Media reports also reveal that Didi has already invested $14 million as registered capital in two cargo delivery and packaging companies.

Didi Chuxing, which is  China’s largest ride-hailing platform, is doubling down on bike rentals, public bus services, and home delivery, seeking new growth engines in a more general mobility market.

Since the coronavirus pandemic, which originated in the Chinese city of Wuhan last year, the logistics and transportation sector has taken a severe hit.

Recently, Didi Chuxing said its ride-sharing orders in China this month has recovered to levels seen over the same period a year earlier.

Earlier in March, Didi launched an errand service called “Paotui,” in Chengdu and Hangzhou, promising to deliver everything from groceries, drinks, medicine, and even flowers within a city, with drivers from the firm’s dedicated service Didi Chauffeur as the first batch of errand runners.

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