58 Suyun was spun out of 58 Home, which is part of US-listed 58.com, a Chinese version of notice board Craigslist that is backed by Tencent, the Chinese social media group. The rump of 58 Home has raised funding from Alibaba, private equity firm KKR and Chinese insurer Ping An, and Alibaba also continues to back 58 Suyun.
GoGoVan counts Alibaba among its early backers. It most recently raised C series funding in June last year; 58 Suyun raised Series A funding at the end of 2015.
As such, the deal brings tech rivals Tencent and Alibaba, each of which have market capitalisations of about $400bn, under the Suyun roof. Previously the two, which compete fiercely in a host of sectors, have been brought together by mergers in food delivery — Meituan-Dianping; and ride hailing — Didi and Kuaidi.
In a further twist, GoGoVan’s China clients include bike sharing companies Ofo and Mobike, whose bikes it picks up from where they are dumped and moves them back into ranks. Ofo is backed by Alibaba and Mobike by Tencent.