Didi Huoyun, the on-demand cargo delivery service launched by Didi Chuxing, is planning to upsize its financing size amid strong demand from investors, as reported by 36Kr on January 13. In December, Didi Huoyun initially intended to sell shares worth at most USD400m. Nevertheless, at present, the firm’s shares are over-subscribed by seven times from investors. Therefore, the company now is mulling to raise additional funding, but final plans are yet to be finalized. The financing proceeds will be used to expand the company’s service network in China.
By matching China’s large pool of self-employed truck drivers with delivery and home moving demand, Didi Huoyun significantly improves the efficiency of the Chinese road freight industry. in 2020, Didi Huoyun began its operation in Chengdu, Sichuan province, and Hangzhou, Zhejiang Province. As of September 2020, the number of the platform’s daily orders exceeds 100,000. Nevertheless, in the road freight industry, there are already two dominating companies, namely Huolala and Manbang, which also engage in truck-hailing services. However, on the other hand, Didi Huoyun will have access to Didi Chuxing’s extensive infrastructure layouts and data analyses of the Chinese transportation sector, giving the newcomer advantages.