China's Didi Chuxing is launching Huaxiaozhu, a new economy ride-hailing service targeting new market segments, primarily younger users.

Incubated internally by an independent unit, Huaxiaozhu leverages Didi’s existing driver pool and operates by the same set of safety and compliance standards. The service has been in pilot operation in select cities of Guizhou and Shandong.

The move comes as the company takes on multiple growth initiatives during China’s post-COVID 19 recovery. These include Didi Delivery service, now operating in 21 cities, an on-demand logistics service that is landing in 30 cities, and a rebranding of its Express Pool service.

China’s GDP grew by 3.2% in the second quarter of 2020, the first major economy to rebound from the COVID 19 pandemic. Didi is a contributor in China’s national recovery programs to drive consumer spending and create more jobs, including the recent initiative from the State Development and Reform Commission for developing sharing economy platforms and the State Council’s Digital Platforms project for employment.