Even if the automotive industry as a whole is in decline this year, it still can't stop those who dream of it.

April 4, cargo Lala (Shenzhen cargo Lala Technology Co., Ltd.) industrial and commercial changes, the scope of new intelligent vehicle equipment manufacturing, intelligent vehicle equipment sales, new energy vehicle sales, auto parts and accessories manufacturing, new energy vehicle electric accessories sales.

At the same time, cargo Lala also made it clear in the prospectus that it is using the knowledge and expertise gained from the operation of the existing vehicle rental and sales services to develop new business opportunities, such as the research and development of electric commercial vehicles, formally responded to the previous rumors of car-making.

Car project boots on the ground

Cargo Lara's car project can be traced back to as early as 2021, when Cargo Lara has begun the related recruitment of talent, involving new energy truck manufacturing and other professional fields, in order to achieve the logistics chain closed loop and the car's "digital intelligence "

What's going on?

While cargo Lala first responded that for the car-making matter, there is no external disclosure of information for the time being, but also said that it will continue to recruit and reserve talents, and did not deny the possibility of car-making. After that, there are also a lot of cargo Lala car-related news.

Last July, Chongqing Hi-Tech Industrial Development Zone Management Committee issued a news release that cargo Lala with a total investment of 10.5 billion yuan to be set up in Chongqing Hi-Tech Industrial Development Zone within the scope of the automotive headquarters in China, the layout and construction, including the vehicle research institute, intelligent network center, supply chain and large manufacturing synergistic centers, and so on. In addition, there are informed sources to the media, car-making project base landed in Chongqing High-tech Zone, the office is stationed in Chongqing City University City, the team's initial configuration configuration is complete, covering the car-making team, the after-market auto repair team and auto sales team.

Until this year, the cargo Lala car-making matter with its IPO together, to the front. Recently, cargo Lala submitted a prospectus to the Hong Kong Stock Exchange, applying for listing on the main board, the main body of the listing name "Lala Technology", and summarize the current business situation, further pointed out the direction of future development.

The prospectus shows that the net proceeds from the IPO will be used primarily to drive core business growth and expand service offerings in mainland China; to further accelerate business expansion globally to capitalize on the vast opportunities in the global logistics market; to invest in research and development to continue to develop and enhance the technological infrastructure; and to be used for working capital and general corporate purposes.

Building cars is the new business opportunity Lala is talking about.

Development needs new business opportunities

Compared with other Internet car, cargo Lala car closer to their own needs. Data show that cargo Lala was founded in 2013, is engaged in the same city / cross-city freight, enterprise version of the logistics services, moving, LTL, car rental and sale and car after-market services of the Internet logistics platform, can be integrated through the *** enjoy mode of social capacity resources, complete the massive capacity reserves, relying on the mobile Internet, big data and artificial intelligence technology, to achieve a variety of models of instantaneous intelligent scheduling, for individuals, commercial and enterprises to provide efficient logistics solutions.

As CargoLaLa is able to realize closed-loop transactions from order placement, pricing, prepayment, freight matching, order tracking to payment settlement and confirmation, it has greatly enhanced customer retention and user stickiness, and its market share has been increasing.

Data released by Frost & Sullivan shows that CargoLaLa is the largest logistics trading platform in terms of global closed-loop freight transaction value (GTV) in the first half of 2022, and at the same time, CargoLaLa is the largest logistics trading platform with the largest average monthly active merchants in the world in 2022, as well as the largest logistics trading platform with the largest number of completed orders in the world in 2022.

It is reported that in 2021, the market share (transaction value dimension) of CargoLaLa in the domestic inter-city freight transportation platform reached 53.6, which is nearly 10 times that of the second place; as of 2022, the company's business has covered more than 400 cities in 11 markets around the world, with an average of about 11.4 million active merchants per month, and an average of about 1 million active drivers per month; from 2020 to 2022, CargoLaLa's global GTV increased from US$3,732 million to US$7,307 million at a CAGR of 39.9%. Cargo Lala's global fulfillment order volume is 428 million as of 2022.

But it's also the world's largest logistics trading platform, which was founded 10 years ago and only became profitable for the first time last year. The content of the prospectus shows that in 2020-2021, cargo Lala adjusted annual loss of $155 million and $631 million, respectively, and last year was the year that cargo Lala realized its first profit, adjusted annual profit of $53 million.

For the previous loss, cargo Lala said mainly in emerging and existing markets to accelerate the geographical expansion of sustained investment, as well as the high cost of acquiring users, these aspects of the investment, resulting in cargo Lala today's market position, but too low profits, but also increased the risk of sustained operation of cargo Lala.

Self-production and self-marketing to achieve a closed loop

"R & D electric commercial vehicles and car-making project, which is a very promising and strategic initiative." Some industry insiders said to the "steam talk", with the global environmental protection and carbon emission reduction requirements, electric commercial vehicle market demand continues to grow, especially in the field of urban logistics and distribution, and cargo Lala as a company focusing on the field of logistics, electric commercial vehicles can provide a huge business opportunity for it.

On the one hand, CargoLaLa's core advantage lies in its deep understanding and rich experience in the logistics and distribution business, as well as its good reputation and user base in this field, which will be its competitive advantage in the electric commercial vehicle market.

On the other hand, the average monthly activity of about 11.4 million merchants, resulting in cargo Lala itself has a great demand for logistics vehicles, rather than earning driver membership fees, it is better to "self-production and self-sale", in order to digest the production capacity at the same time to find a higher point of growth in profits.

Of course, there is the most important point, is to further realize the closed-loop transaction. Cargo says its success depends largely on its ability to attract, retain and recruit merchants and drivers in a cost-effective way. However, CargoLaLa's merchants currently have multiple shipping options, such as personal and rental vehicles, and may rely on offline or other digital freight platforms for customer acquisition, factors that may reduce CargoLaLa's user retention rate. Therefore, having its own brand of electric commercial vehicles is also an essential part of Cargo Lala's development. However, how to obtain new energy production qualification after openly building a car, and whether it can afford the high cost incurred by building a car are also problems that Cargo Lala has to face.

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