(Photo/DoNews)

Chinese logistics platform Suyun.daojia.com announced on Monday that it has merged with Hong Kong-based logistics platform GoGoVan.

The new company, taking on the English of GoGoVan and continuing using “58 Suyun Daojia” as its Chinese name, is estimated to be valued at over $1 billion, according to Cai Weiding, a director in charge of the merge from financial institution China Renaissance, Caixin magazine reported.

Chen Xiaohua, CEO and founder of 58Daojia, which owns suyun.daojia.com, told Caixin magazine that the two companies’ business models complement each other, as 58Daojia focuses on service to businesses, while GoGoVan eyes customers. GoGoVan could further develop its business in the Chinese mainland with the help of 58Daojia’s reputation, while 58Daojia could also better open up the Asian market.

It marked the largest merger between a Chinese mainland company and a Hong Kong-based startup, Cai said. “It also gave another example to merge cases in China. That is, companies no longer take down one another through a merge case; rather, the two sides can integrate resources to gain advantages.”

58Daojia, launched online in September 2014, has businesses in more than 100 cities in China, with more than 1 million drivers. Daily orders can top 400,000.

Founded in September 2013, GoGoVan currently has operations in 14 cities in China, South Korea, and India. With more than 180,000 drivers, the platform has processed a total of nearly 30 million orders.