City Freight Scuffle Fast Dog Taxi To Grab The First Share?

Shortly after the vicious incident of huolala, kuaigou taxi spread rumors of IPO in Hong Kong.

Recently, it has been reported that kuaigo taxi (58 express, gogox) has communicated with HSBC, CICC and other investment banks on listing matters, and plans to list in Hong Kong in the third quarter of this year, raising up to US $500 million and valuing it at about 1.5 billion yuan. At the same time, it is reported that the listing plan and timetable of kuaigou taxi are still likely to change, and may go to the United States through spac merger.

Qixinbao data shows that since its establishment in 2014, fastdog taxi has completed four rounds of financing, with investors including 58 cities, Tencent investment, rookie network, Sequoia Capital China, etc. The latest round of strategic financing took place in September 2020. The financing object is Swan home (fastdog to the parent company), and the investor is Sequoia Capital China.

Sprint freight first?

Kuaigou taxi, formerly known as 58 express, was founded in 2014. In August 2017, 58 express was merged with gogogovan (fast dog express), and the next year it was officially renamed "fast Dog Taxi".

Fast Dog Taxi Service is positioned as a "taxi platform for pulling goods". It is committed to providing short distance goods transportation and transaction service platform for customers to pull goods, move, and transport things anytime and anywhere. According to the official website, there are 3.6 million registered drivers on the platform, and its business scope covers more than 20 million users in 346 cities and 6 countries.

The fast dog taxi out of the IPO news, is seen as its sprint "Freight first stock" signal.

However, the fast dog taxi is not the first player on the track who intends to be listed. As early as 2017, there was a rumor that the goods would be listed in the United States. In December 2020 and January 2021, the latest valuation is expected to reach US $10 billion, which is regarded as the final preparation before listing.

In addition, manbang group has also recently heard that it will go to the U.S. for listing within this year, and the amount raised may be between $1 billion and $2 billion.

"Intra city freight transport is not an emerging field. Many enterprises have been working on this track for a long time, especially represented by freight Lala and fast dog taxis," an industry commentator said. "It is expected that the industry concentration will tend to gather towards the head platform in the future."

It should be noted that in the field of intra city freight transport, it is difficult to establish core barriers due to the low entry threshold.

"No matter the transportation capacity, technical ability or operational efficiency, in fact, does not constitute the core competitiveness. Although it takes a long time for each customer to cultivate their usage habits, when a new product appears and greatly promotes subsidies, it may impact the past user habits in a short period of time," said the commentator In addition to the first mover advantage, other platforms do not have a particularly strong "moat."

This also means that intra city freight may be in a state of scuffle for a long time, so the funds and ammunition brought by financing and listing are particularly important, which may also constitute the biggest driving force for players in the industry to go public this year.

Compliance issues to be solved

Despite the vigorous development of the Internet freight market, the safety and risk issues such as spraying mobile advertisements on motor vehicles, carrying goods on buses, removing seats without permission, illegal operation, and unauthorized transportation of dangerous goods have also been controversial.

On April 1, the law enforcement corps of the Shanghai Municipal Communications Commission, together with the Shanghai Traffic Police Corps, the law enforcement corps of the Shanghai urban management and Law Enforcement Bureau, the Shanghai Emergency Management Bureau and the Shanghai market supervision bureau, jointly held an interview with the network freight platforms such as yunfull, huolala, didi freight, Kuai dog taxi and sharing transportation.

At the meeting, the law enforcement team of Shanghai Municipal Transportation Committee first reported three recent accidents of dangerous goods transportation, and emphatically pointed out that dangerous goods are extremely dangerous in road transportation, and once accidents occur, it is very easy to cause casualties and property losses.

During the interview, the law enforcement corps of Shanghai Municipal Transportation Commission required all network freight platforms to implement offline vehicle inspection and verification for registered vehicles, prohibition of providing transportation matching business of dangerous goods, timely provision of registration and operation data, establishment of full-time safety emergency liaison personnel, and timely reporting of violations or accidents.

In addition to the potential safety hazards in the transportation of goods, in February this year, the incident of "women renting and taking goods to hire a taxi on the Internet" broke out, exposing the lack of safety measures in the vehicle and the entry threshold for drivers on the Internet freight platform.

In the above-mentioned incidents, there was no relevant recording and video recording equipment in the huolala app and the vehicle, so it was difficult to record and obtain evidence directly. Since then, huolala has launched seven major rectification measures, including but not limited to the mandatory whole process recording function in the car following order scene, expanding the deployment of safety on-board equipment, adding position protection function in the car following order scene, and strict driver access system.

However, after the completion of the agreed rectification, some media found that there are still loopholes in the driver access. New drivers can receive orders without training at a cost of hundreds of yuan through the "internal number" service provided by the intermediary.

A similar problem occurs with fast dog taxis. In the "black cat complaint" platform, the 21st century economic report's search for "kuaigou taxi" yielded 1652 results, including false orders, no compensation for damage to moving goods, inconsistent distance between orders pushed by the platform, and drivers' starting price for sitting on the ground, etc.

In addition to travel safety, there are also user information security issues. In 2020, kuaigou taxi service appeared on the app list of infringing users' rights and interests reported by the Ministry of industry and information technology for many times. Due to the privacy violations such as private collection of personal information, private sharing with third parties, frequent application for authority, excessive claim of authority and other violations of user privacy, kuaigou taxi service was reported and rectification was required within a limited time.

In an interview with a reporter, pan Helin, executive director and professor of the Digital Economy Research Institute of Central South University of Finance and law, believed that the Internet freight platform needs to coordinate the relationship between users and drivers, especially in terms of service uniformity, compliance and normalization, and it needs valuable output. In terms of providing service security, the platform should take the necessary responsibility.

However, from the current point of view, the industry still has a long way to go to truly achieve safety and compliance.

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