Lalamove, a logistics platform providing on-demand services, has now begun operations in the United States, seven years following its initial launch. The company currently operates in China, Southeast Asia, and Latin America.

Recognizing the increased demand for delivery services as many Americans remain at home due to the ongoing COVID-19 pandemic, the Hong Kong-based company is initiating its U.S. presence in the Dallas-Fort Worth metropolitan area, a significant center for distribution and logistics nationwide. Service expansion to Chicago and Houston is scheduled to occur shortly.

The company achieved a $1 billion valuation early on, alongside competitor GoGoVan, and has since established a multifaceted, locally-focused business model. Essentially, Lalamove functions as a platform connecting those needing to transport goods with available drivers, similar in concept to Uber.

Within China, where the service is known as Huolala (货拉拉), the company primarily acts as an intermediary between individuals or businesses requiring cargo transport and a network of truck drivers. In Southeast Asia, the business operates in a similar fashion, with the added service of food delivery for restaurants. In the U.S. market, Lalamove offers a fleet of sedans, SUVs, and pickup trucks available around the clock, catering to businesses in sectors such as catering, retail, e-commerce, manufacturing, and construction, with service fees beginning at $8.90.

“The need for delivery is paramount, particularly during these times. Many local businesses either lack their own delivery fleets or find them cost-prohibitive. We are pleased to collaborate with businesses in the Dallas-Fort Worth region to provide their customers with same-day, on-demand delivery options,” stated Blake Larson, Lalamove’s international managing director, who previously co-founded Easy Taxi, a ride-hailing startup focused on Asia and backed by Rocket Internet.

Similar to GoGoVan, Lalamove was established by an entrepreneur from Hong Kong who received education in the United States. Both companies have attracted investment from prominent institutions both within China and internationally.

Lalamove’s investment partners include Hillhouse Capital, Sequoia Capital China, and Shunwei Capital, founded by the creator of Xiaomi. GoGoVan, following a merger with China’s 58 Suyun, has secured funding from Tencent, Alibaba, KKR, and New Horizon Capital.

This global expansion by the Hong Kong-based startup occurs at a time when TikTok has faced challenges in the U.S. due to its connections to China. In Lalamove’s case, the Chinese division, Huolala, is managed by a Chinese team, while independent international teams oversee the company’s operations outside of China, according to TechCrunch. A key issue for TikTok has been its reliance on the technological resources of its Chinese parent company, ByteDance.

Currently, Lalamove has verified and registered over 500 partner drivers in the Dallas-Fort Worth area, with plans to increase this number to 1,000 by the end of the year. The company is also actively recruiting for positions at its regional office, despite the widespread job losses, furloughs, and hiring slowdowns occurring across the U.S.

Lalamove reports having connected more than 7 million customers with a network of over 700,000 delivery partners across 22 global markets to date.