China’s ‘uber-for-trucks’ giants to merge in $2 billion deal

Business & Technology

Bloomberg reports that Huochebang and Yunmanman, two of the largest apps providing Uber-like services for China’s cargo trucking market, have agreed to merge. Neither company would agree to comment, but “people familiar with the matter” said that:

  • “Wang Gang, a backer of Yunmanman’s and an angel investor in ride-hailing giant Didi Chuxing, would become the chief executive officer of the new entity” worth over $2 billion; and
  • The companies are “already in the process of seeking new funding to sustain their rapid pace of expansion.”

It’s another sign of a maturing market in on-demand services broadly, as TechNode reports that “6 of China’s bike rental companies have shuttered in the last 5 months” and other niche ride-sharing and vehicle rental companies have confronted new challenges.