An “Uber-like” logistics start-up based in China’s Guizhou province will soon be able to expand its operations after securing $156 million in venture capital funding from Baidu Capital and investment firm All-Stars Investment Ltd.
Huochebang is a logistics service that operates in a manner similar to the well-known Uber ride-sharing service, helping truck drivers and owners find cargoes to transport, parking facilities, truck sales and leasing, and other related services.
Founded in 2011, the company currently has 2.6 million registered vehicles, and 1,000 service centers in China. According to investment monitor China Money Network, Huochebang drivers have five million daily transport requests.
Baidu Capital, which was formed only last October, has already invested heavily in China’s transport industry, having co-led a $600-million investment in Shanghai-based electric carmaker NIO in March.
In a statement, Baidu Capital Managing Partner Wu Wenjie said, “Huochebang’s team has a deep understanding of the Chinese logistics market, and has established the largest and the only nationwide dispatch platform. At the same time, the company continues to develop and has established a new business model of combining its dispatch platform with an after-sales service platform.”
The transport company plans to use the latest funding infusion to upgrade its dispatch system, improve after-sales services, invest in technology, and build its team.
Huochebang’s success has attracted competition, with a Beijing-based truck logistics company called Fuyoukache securing $36 million in venture capital investment in March. Alibaba Group’s Best Logistics Technology Co. is also planning to expand, having announced it intends to raise $1 billion via an initial public offering in the US later this year.