The Freight-App Battle a Chinese “Uber for Trucks” Couldn’t Win

In 2018, Kuaigou Dache invested RMB524 million on sales and marketing, more than its RMB453 million in income. 8 years later on, its noted moms and dad, GOGOX, conditionally consented to offer its mainland China organization for simply RMB1

Under an October 16 filingGOGOX prepares to offer its subsidiary GGEx Holdings and relabel itself GOGO Technology. The offer stays based on conditions and investor approval. In the very first half of 2026, the mainland company produced RMB44 million in earnings however lost RMB49.3 million after tax, with net liabilities of RMB2.48 million.

That seems like a shutdown, however GOGOX later on clarified that only ownership would alter. Kuaigou Dache, a mainland Chinese freight and moving platform, is anticipated to continue running under its brand-new owner. GOGOX, the noted moms and dad, prepares to leave mainland China and concentrate on Hong Kong and other abroad markets.

The Fee Model Was Part of the Story

Kuaigou’s roots depend on 58 Suyun, a freight service under 58 Daojia, related to 58. com, typically compared to China’s Craigslist. In 2017, 58 Suyun combined with Hong Kong-founded GOGOVAN; the combined business embraced the Kuaigou Dache name in 2018.

Similar to reserving a trip on Uber, clients might utilize Kuaigou’s app to schedule a truck, choose a lorry, go into pickup and drop-off places, and examine the fare. According to GOGOX’s IPO prospectus, matching algorithms then linked orders with motorists based upon place, car type and scores.

The competitors likewise took various paths to charging chauffeurs. Lalamove, referred to as Huolala in mainland China, presented a membership-plus-transaction-fee design in 2016. Kuaigou followed in 2018, after relying more greatly on per-order charges

Subscriptions might decrease per-order costs in exchange for in advance payments, while commissions connect platform earnings to finished reservations. Neither design warranties chauffeur commitment: what matters is the number of tasks motorists get and just how much they take home after costs.

Scale Is Harder to Copy Than Fees

Both platforms invested greatly to bring in carriers and chauffeurs, wagering that more users would imply denser networks, much shorter waits and more orders per motorist. Discount rates do not ensure commitment, and even advanced matching software application is of little usage without sufficient orders and chauffeurs in each location.

Kuaigou had a hard time to keep up. In 2021, it held 3.2% of mainland China’s online intra-city logistics market by deal worth, versus 52.8% for Lalamove and 5.5% for Didi Freight. By 2025, a different price quote based upon closed-loop freight GTV put their shares at 0.5%, 61% and 12.4%, respectively. The quotes utilize various market meanings, both put Kuaigou well behind its bigger competitors.

A Costly Battle, a Strategic Retreat

Hong Kong and other abroad markets represented 85% of GOGOX’s earnings in the very first half of 2026, though earnings from those markets fell 4.3% year on year. The business runs in Hong Kong, Singapore, South Korea, India and Vietnam, dealing with Lalamove throughout the area, Porter in India’s truck-hailing market and GrabExpress in Southeast Asia’s parcel-delivery sector.

Kuaigou’s decrease had to do with more than prices. Years of heavy marketing costs stopped working to close the space with Lalamove, while Didi Freight and Manbang contributed to the competitors. Motorists tend to prefer platforms with more offered tasks, while carriers desire trucks when and where they require them. Kuaigou had a hard time to construct a network on the very same scale as its bigger competitors.

GOGOX mentioned magnifying competitors and weaker-than-expected development in mainland China. The outcome was a pricey defend market share that never ever equated into a strong sufficient position to sustain business.