JD goes into ride-hailing

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China’s second largest e-commerce platform JD.com has entered the ride-hailing business.

Jiangsu Jingdong Information Technology, a subsidiary of JD.com, quietly updated its information on China’s National Enterprise Credit Information Public System in late August. The update added online taxi booking, used automobile sales and public transportation services.

JD.com didn’t respond to the inquiry made by local media Monday.

Jiangsu Jingdong Information Technology mainly focuses on JD.com’s delivery services. It obtained the delivery certificate from the State Post Bureau of China in 2010 and has 298 branches in provinces across China including Shandong, Shaanxi, Zhejiang and Sichuan. According to local media, experts were quoted that it’s possible that JD wanted to build a Didi for freight because of the company’s expertise in logistics. Statistics show the market value of freight is worth RMB 1.2 billion, ten times more than the online ride-hailing market.

JD can also take advantage of the network it has built on deliveryman to expand into the online personal ride service if it intends to.

China’s ride-hailing business is undergoing a new wave of shifts and regulations as the public was blaming Didi for the murder of a female passenger on August 25 while she was using Didi’s carpooling services. The public accused Didi of lacking safety measures. Governments agencies across the nation have also launched investigations against Didi.

Former founder of Kuaidi Dache, Chen Weixing, announced his coming-back Thursday with a new blockchain based ride-hailing app VV Go that seeks to improve passenger safety and increase the income of drivers.