BEIJING, May 7, 2024
/PRNewswire/ -- In recent years, for various reasons, many Chinese
concept stocks have been consistently undervalued in overseas
capital markets. However, some Chinese e-commerce companies have
gone against the current with their professional capabilities in
global markets, gaining widespread recognition and showcasing the
immense potential for the internationalization of Chinese brands.
Against this backdrop, Quhuo (NASDAQ: QH) — a leading gig economy
platform focusing on local life services — plans to extend its
mature on-demand delivery services to overseas markets, exploring
new growth opportunities globally.
The international on-demand delivery market boasts a massive
consumer scale and high growth potential. According to Brainy
Insights, the global online delivery market is expected to grow
from USD 216.21 billion in 2022 to
USD 667.04 billion by 2032. However,
compared to the development of the on-demand delivery industry in
China, overseas delivery services
generally face challenges such as poor service experience,
insufficient capacity to handle large volumes of orders, and high
delivery costs. In countries and districts like Europe, the United
States, and Singapore, high
delivery costs have directly impacted service accessibility and
consumer satisfaction, limiting the potential for market
expansion.
As a leading domestic on-demand delivery service company, Quhuo,
with its operation model and professional technical capabilities
that have been validated in the domestic market, extends its mature
on-demand delivery services to overseas markets. The company aims
to further develop online delivery services through cooperation
with local on-demand consumption service platforms.
According to Gang Wang, Chief Operating Officer of Quhuo, the
Company has identified Southeast
Asia as the priority region for its international expansion
from 2024. The Company focuses on analyzing and testing business
models and forecasts in the Southeast Asian market and conducts
in-depth feasibility studies on other international markets such as
Australia, the Middle East, and North America.
In terms of market entry and cooperation, the Company will use
the local on-demand delivery market as an entry point,
collaborating with local service providers and labor forces.
Currently, Quhuo is discussing cooperation methods with leading
on-demand consumption service platforms in the United States, Singapore, and Thailand, laying a solid foundation for its
overseas market layout.
Operationally, the company will rely on the Quhuo+ technology
platform to improve the fulfillment efficiency of service orders
through data analysis and AI technology. Over the past decade,
leveraging the management advantages of the Quhuo+ platform, Quhuo
has successfully managed multiple life service scenarios such as
food delivery, ride-hailing, and housekeeping under a unified
digital management system. The platform has facilitated flexible
deployment of service personnel during peaks and troughs of
different scenarios, reducing costs and improving efficiency while
increasing overall income for service personnel, achieving a
win-win for all parties involved.
In terms of employment support, Quhuo is committed to providing
job opportunities for groups in need of flexible employment, such
as students, unemployed individuals, and retirees. The company
offers a variety of delivery tasks, including easy tasks during
off-peak hours and orders that do not require fast completion. Such
arrangements allow workers to choose the type of task that suits
their lifestyle and availability, truly making use of fragmented
time to balance work and life. Additionally, Quhuo has set specific
delivery zones for workers, allowing them to work near their homes,
which can reduce commuting time and physical exhaustion while
improving work efficiency.
At the same time, Quhuo hopes to create a large number of stable
jobs in the on-demand delivery industry in Southeast Asia. According to the "Food
delivery platforms in Southeast
Asia" released by Momentum Works in 2023, the total
transaction volume (GMV) of Southeast
Asia's food delivery platforms continues to grow, reaching
$17.1 billion last year. The report
also indicates that despite rapid market growth, a large population
remains underserved by delivery services, suggesting immense
potential and market space in the
on-demand delivery industry. Through its
advanced Quhuo+ technology platform, Quhuo can provide
training and career development opportunities for workers. The
platform has set up a series of targeted training programs,
covering on-demand delivery operations, customer service skills,
time management, and the use of professional delivery tools and
technology. These trainings help workers enhance their skills,
increase job stability, and secure income. The company firmly
believes that as the Southeast Asian market further develops, it
will attract a large workforce to the on-demand delivery industry,
thereby injecting new vitality into local economic growth.
According to the company's management, Quhuo expects to
implement on-demand delivery in three Southeast Asian countries by
the end of 2024. By 2025, the business will expand to more than
five new countries and explore other regional markets, driving a
significant increase in company revenue.
As Quhuo expand globally, the company is seeking to grow through
its "Last Mile" delivery service, which is committed to providing
more convenient life services to global consumers. This
international effort is expected to open new growth paths for
Quhuo, significantly boosting its revenue and market share.
About Quhuo Limited
Quhuo Limited (NASDAQ: QH) ("Quhuo" or the
"Company") is a leading gig economy platform focusing on local life
services in China. Leveraging Quhuo+, its proprietary
technology infrastructure, Quhuo is dedicated to empowering and
linking workers and local life service providers and providing
end-to-end operation solutions for the life service market. The
Company currently provides multiple industry-tailored operational
solutions, primarily including on-demand delivery solutions,
mobility service solutions, housekeeping and accommodation
solutions, and other services, meeting the living needs of hundreds
of millions of families in the communities.
With the vision of promoting employment,
stabilizing income and empowering entrepreneurship, Quhuo explores
multiple scenarios to promote employment of workers, provides,
among others, safety and security and vocational training to
protect workers, and helps workers plan their career development
paths to realize their self-worth.
Safe Harbor Statements
This press release contains ''forward-looking
statements'' within the meaning of Section 27A of the Securities
Act of 1933, as amended and Section 21E of the Securities Exchange
Act of 1934, as amended and the Private Securities Litigation
Reform Act of 1995. All statements other than statements of
historical or current fact included in this press release are
forward-looking statements, including but not limited to statements
regarding Quhuo's business development, financial outlook, beliefs
and expectations. Forward-looking statements include statements
containing words such as "expect," "anticipate," "believe,"
"project," "will" and similar expressions intended to identify
forward-looking statements. These forward-looking statements are
based on Quhuo's current expectations and involve risks and
uncertainties. Quhuo's actual results and the timing of events
could differ materially from those anticipated in such
forward-looking statements as a result of these risks and
uncertainties, which include, without limitation, risks and
uncertainties related to Quhuo's abilities to (1) manage its growth
and expand its operations, (2) address any or all of the risks and
challenges in the future in light of its limited operating history
and evolving business portfolios, (3) remain in its competitive
position in the on-demand food delivery market or further diversify
its solution offerings and customer portfolio, (4) maintain
relationships with major customers and to find replacement
customers on commercially desirable terms or in a timely manner or
at all, (5) maintain relationships with existing industry customers
or attract new customers, (6) attract, retain and manage workers on
its platform, and (7) maintain its market shares in relation to
competitors in existing markets and its success in expansion into
new markets, as well as the development of the COVID-19 pandemic
and its impact on Quhuo's business and industry. Other risks and
uncertainties are included under the caption "Risk Factors" and
elsewhere in the Company's filings with the Securities and Exchange
Commission, including, without limitation, the final prospectus
related to the IPO filed with the SEC on July 10, 2020 and the Company's latest annual
report on Form 20-F. You are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the
date of this press release. All forward-looking statements are
qualified in their entirety by this cautionary statement, and Quhuo
undertakes no obligation to revise or update any forward-looking
statements to reflect events or circumstances after the date
hereof.
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SOURCE Quhuo Limited