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Say hello to Hello Chuxing as it ventures into ride-hailing in China
CKN
2018/10/15 02:26:51
2,602
China's Financial News, China News, HelloBike

Oct 15, 2018 (China Knowledge) - Bike-sharing startup Hello Chuxing, previously known as HelloBike, has announced the launch of its new ride-hailing services, last Friday.

The company will be partnering ride-hailing provider Shouqi Limousine and Chauffeur and digital mapmaker AutoNavi Software as it begins offering its services in Shanghai, Nanjing and Chengdu. The company will eventually expand to cover more than 80 cities in China.

Hello Chuxing is the latest of a number of new entrants into the Chinese ride-hailing market. Meituan-Dianping initiated ride hailing trails early last year in Nanjing with plans to enter at least 7 cities, but has faced several roadblocks in its efforts. Meituan now only operates in Nanjing and Shanghai, and has announced that it will not invest any further capital and resources to develop its ride-hailing services.

Just last week, Geely has also declared a partnership with Daimler AG to develop ride-hailing services in China. In addition, China’s second largest e-commerce company JD.com is also considering to enter the fray. Its express delivery unit, Jiangsu Jingdong Information Technology, recently updated its company profile to add several businesses operations, including online cab booking. JD.com however, has not made any concrete announcements on its plans.

Competition in China’s ride-hailing market is only set to increase in the future. While Hello Chuxing is backed by Alibaba’s Ant Financial, raising RMB 2.06 billion in a funding round earlier in June, it may, just like Meituan, find that having deep-pockets may not be enough to be successful in this market.

Hello Chuxing currently has over 200 million registered users in more than 300 cities around the world. In comparison, market leader Didi Chuxing has 550 million users across over 400 cities.

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