Hello-Chuxing to launch hitch service

Startup Hello-Chuxing plans to expand its bike-sharing business to include a hitch service after it completed a new round financing.

The lead investors in the company's latest round of financing, which raised billions of yuan, were Primavera Capital and Ant Financial, but Hello-Chuxing declined to disclose further information, news outlet ThePaper said on Friday.

According to news website Jiemian, the financing completed in September this year brought in around 4 billion yuan ($584 million).

Also in September, Hello-Chuxing partnered with ride-hailing platforms Shouqi Limousine & Chauffeur, Dida Chuxing and digital mapmaker AutoNavi to provide a more comprehensive mobility service, including bike- and moped-sharing, car-sharing, premier taxis, and ride-hailing.

The unicorn's counterpart, Didi Chuxing, the country's largest car-hailing platform, has still suspended its hitch ride service since Aug 27, until it has corrected all safety problems. Earlier this year, two female passengers were killed by drivers when using Didi's hitch service.

"The transportation market is still quite large, and there are many pain points yet to be solved," Hello-Chuxing said in a report by ThePaper. "We will create a safe and convenient service by inspecting drivers' qualifications, providing full-time customer service and issuing security warnings."

The market scale for China's mobility service hit $15 billion in 2017, while the number is expected to surge to $201 billion by 2025, and $656 billion by 2030, Strategy&, a consulting firm under PwC, said in a report recently. By 2030, the service will contribute 22 percent of revenue and 30 percent of profits to the automotive industry, it said.

Earlier this month, auto manufacturers SAIC Motor and BMW Group also opened their own ride-hailing services in China.