Didi Chuxing will launch an intra-city cargo delivery service in the Chinese cities of Chengdu and Hangzhou as part of efforts to push into the already crowded on-demand logistics market.

The logistics service will be available from June 23, when users can place orders through Didi’s China app, according to a company statement Tuesday.

Didi will be relying on its data analyzing and order dispatching capabilities to compete with established players including SoftBank-backed Manbang Group, JD.com-endorsed Fuyou Kache and Lalamove, among others, the statement said.

So far, more than 20,000 drivers have signed up for the service, with driver recruitment and training still in progress, the statement added.

Early signs of Didi’s intention to launch a freight delivery service appeared a month ago, when the Beijing-based company took out a job ad to hire van drivers in 10 Chinese cities.

In March, Didi piloted a home delivery service called Paotui in Chengdu and Hangzhou with a promise to deliver daily necessities city-wide including vegetables and medicines. The service came at a time when the Covid-19 pandemic had dampened demand for its core ride-hailing services.

Contact reporter Ding Yi (yiding@caixin.com)

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