Hong Kong logistics startup GOGOVAN said on Tuesday that it has merged with 58 Suyun, a unit under the Chinese mainland's largest intracity logistics platform 58 Home, making it a leading intracity logistics platform in Asia.
The merger will expand GOGOVAN's service area on the mainland, covering over 110 cities, with more than 1.2 million registered drivers in its network.
Established in Hong Kong, GOGOVAN, a mobile app logistics platform, currently operates in eight cities on the mainland.
As a shareholder of both GOGOVAN and 58 Suyun, Alibaba fully supports the merger.
The new company aims to cover over 300 cities on the mainland in the next two years and explore market in Southeast Asia, said Steven Lam, a co-founder of GOGOVAN, who will be the CEO of the new company.
With only 20,000 Hong Kong dollars, five youngsters in Hong Kong founded GOGOVAN in 2013.
As a business unit under 58 Home, 58 Suyun started its operation in September 2014. It provides services such as house moving and freight delivery.
