Brands and operations will be supported separately
By bringing together two Chinese platform giants as shareholders, G7 Connect Inc., a fleet management company supported by Tencent Holding Ltd., has decided to merge with its smaller competitor E6, which regards a division of Alibaba Group Holding Ltd. as an investor.
The ramifications come as the G7 considers a possible initial public offering in Hong Kong, which could happen as soon as this year.
“We decided to finish the merger before the IPO because we feel it will have a significant impact on the industry.” G7 CFO Zhang stated, “We are ready to start at any time as soon as the market conditions improve.”
The G7 and E6 manage freight and logistics services with artificial intelligence and IoT technologies, while sensors and cameras collect data to improve efficiency.
Both firms use modern driver assistance technologies to identify and warn of unsafe driving or insufficient distance between vehicles, as well as real-time load weighing to avoid theft.