58 Daojia, the home service arm of China’s largest classifieds platform 58.com, announced its 2016 development strategy at a conference held in Beijing last Thursday.
Chen Xiaohua, the CEO of 58 Daojia, said at the conference that the company will invest in 5-10 companies in the future, and in 2016, it will open its platform to 100 O2O service providers and build business connections with 10,000 offline providers.
The company also released the user data of its segmented services at the conference. 90% of its housekeeping service users are old customers and it has a 70% monthly user retention rate. Its urban delivery service covers 36 cities including Beijing, Shanghai and Shenzhen, and its old users account for 90% of the total users of its delivery service.
Chen also disclosed their business expectations for 2017. The trade volume of its housekeeping business is expected to reach RMB 3.5 to 4.5 billion (USD 538 to 692 million) in 2017. The delivery service will be available in 100 cities and the trade volume is expected to reach RMB 5.5 to 6.5 billion. Its beauty service is expected to have a trade volume of RMB 2.5 to 3.0 billion.
In addition, the company will continue to use the resources of its VCs including Tencent, Alibaba and Ping An Ventures. It plans to have a total trade volume of RMB 12.5 to 15.0 billion and reach the goal of having two or three of its businesses make a substantial profit in 2017.
Founded in September 2014, 58 Daojia offers home services including cleaning, carwashing, same-city delivery and beauty services. It is considered a Tencent-backed company because it has received multiple investments from Tencent. Additionally, in October 2015, it closed a USD 300 million Series A round of financing from Alibaba, KKR and Ping An Ventures.
In the home service field, its competitors include Tencent-backed JD Daojia and Baidu Shangmen.
(Top photo from 58 Daojia official website.)