Unmanned sanitation, characterized by complex operational environments and diverse working conditions, demands deeper integration into service operations. Against this backdrop, autonomous driving enterprises are increasingly establishing their own operational service subsidiaries.** In May 2024, Yunchuang Zhixing partnered with Jinlv Environment to establish Deqing Yunchuang Environmental Technology Co., Ltd., which holds an Urban Domestic Waste Management Service License. By June, Yunchuang Zhixing won the bid for the “Intelligent Sanitation Application Scenario Promotion Project” in Deqing County, deploying nearly 10 unmanned sweepers by September.
Additionally, in November 2024, Yunjie Technology registered Shenzhen Yunjie Intelligent Cleaning Service Co., Ltd. By December, the company secured contracts to lease unmanned sweepers for Shenzhen’s Huanggang Park and Caitian Park projects.
Beyond Yunchuang Zhixing and Yunjie Technology, other long-standing players like Kuwa Technology and City Light have also strategically expanded into smart sanitation operations.
Kuwa Technology, the “top bidder” in unmanned sanitation for 2024, established Changsha Licheng Smart City Operations Management Co., Ltd. in 2019. In March 2020, it wholly founded Bozhou Kuwa Environmental Technology Co., Ltd., followed by the creation of Hengyang Yancheng Smart City Operations Management Co., Ltd. in July 2022. These subsidiaries operate in public facility management or ecological conservation and environmental governance, all holding urban waste management licenses.
City Light, meanwhile, founded wholly owned subsidiaries such as City Light (Guangzhou) Urban Service Co., Ltd. and Jiangsu City Light Smart City Service Co., Ltd. in 2023 and 2024. In September 2023, it partnered with Dijia Technology to establish Shenzhen City Light Smart City Service Co., Ltd., retaining a 49% stake. Early 2024 saw the establishment of Huizhou City Light Smart City Operations Service Co., Ltd., aligning with its successful bid for local government sanitation projects.
The decision by autonomous driving enterprises to establish sanitation service subsidiaries stems from multifaceted considerations.
First, commercial expansion and profitability.
On one hand, relying solely on equipment sales yields limited profits. Operational services unlock new revenue streams—long-term contracts for road cleaning, waste transport, and bundled equipment-service packages enhance product value, stabilize cash flow, and mitigate market volatility.
On the other, these services generate vast operational data (vehicle trajectories, cleaning efficacy, equipment failures), critical for refining autonomous technologies, optimizing algorithms, and upgrading hardware. Successful case studies also bolster corporate credibility for future bids.
Second, market and competitive dynamics.
Transitioning from equipment suppliers to integrated service providers allows companies to stand out by offering end-to-end solutions. Vertical integration secures supply chains and cost efficiencies, while direct engagement with clients enables tailored services. Accumulated experience fosters industry standards, granting early-mover advantages.
Third, policy alignment.
Regional governments increasingly favor operators with robust service capabilities. Recent smart sanitation bids have been awarded to consortiums combining autonomous driving firms and traditional service providers. Establishing operational subsidiaries positions companies to meet these criteria and secure more government contracts.
Final Thoughts
Autonomous enterprises are not competing with traditional service providers but collaborating to expand the market. Examples include Sait Intelligent’s partnerships with Beikong Chengfu, Shenneng Environmental, and Runkeeper Property, as well as Kuwa Technology’s alliances with Yuehuan Group and City Light’s collaboration with Jieya Environmental. These synergies demonstrate that only through complementary strengths can the industry jointly expand and strengthen the sanitation market “pie,” fueling sustained growth.
