Alibaba reduces stake in GoGoX amid Hong Kong logistics services firm’s mounting losses, as it faces cutthroat competition on the mainland

Alibaba has cut its GoGoX stake four times over the past two months, leaving it with an 8.89 per cent equity holding as of December

GoGoX has recorded losses since 2018 owing to stiff competition on the mainland and its continued international expansion

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GoGoX, which operates as Kuaigou Dache on the mainland, has seen its market value shrink by more than 90 per cent since its Hong Kong trading debut in June 2022. Image: GoGoX

Published: 11:00pm, 4 Jan 2024Updated: 11:46pm, 4 Jan 2024

Chinese e-commerce giant Alibaba Group Holding has further reduced its stake in Hong Kong-listed logistics service provider GoGoX Holdings, which is facing cutthroat competition and regulatory pressure in the mainland’s intracity delivery courier market.

Alibaba, which owns the South China Morning Post, has cut its GoGoX stake four times over the past two months, slashing its equity holding to 8.89 per cent as of late December from 12.23 per cent in mid-2023, according to Hong Kong stock exchange records.

Following those moves, the biggest shareholder of GoGoX remains billionaire Yao Jinbo – the founder, chairman and chief executive of mainland Chinese online classifieds giant 58.com – with a 38.69 per cent share. GoGoX co-founder Chen Xiaohua, with a 5.95 per cent stake, retains his position as the company’s third-biggest shareholder.

Founded as GoGoVan in Hong Kong in 2013, GoGoX became the city’s first unicorn in 2017 after its merger with short-distance freight service platform operator 58 Suyun. Still, GoGoX has recorded losses since 2018 owing to stiff competition on the mainland and its continued international expansion.

GoGoX, one of Asia’s first mobile app-based logistics services platform operators, has expanded its operations over the years from Hong Kong to mainland China, Singapore, South Korea, India and Vietnam. Image: GoGoX

GoGoX, which operates as Kuaigou Dache on the mainland, has seen its market value shrink by more than 90 per cent since its Hong Kong trading debut in June 2022. Its share price closed up 6.8 per cent to HK$0.63 on Thursday.

Alibaba reduces stake in GoGoX amid Hong Kong logistics services firm’s mounting losses, as it faces cutthroat competition on the mainland

Alibaba has cut its GoGoX stake four times over the past two months, leaving it with an 8.89 per cent equity holding as of December GoGoX has recorded losses since 2018 owing to stiff competition on the mainland and its continued international expansion

Alibaba has cut its GoGoX stake four times over the past two months, leaving it with an 8.89 per cent equity holding as of December

GoGoX has recorded losses since 2018 owing to stiff competition on the mainland and its continued international expansion