China’s Uber for Trucks Earns $1 Billion Estimation

By | February 3, 2017

Uber Technologies is an American worldwide online transportation network company which is very useful for the people. There seems to be an Uber are everything to the people for these days. Uber needs that its drivers pass a DMV and backdrop check. The company also must have their own individual car and it must be insured. Because of these minimal requirements, the service attracts a general array of people. Now the Uber is ready for the trucking industry to take on china.

Trucking Alliance, Inc. is an online trucking logistics company and this company provides the services to truckers and shippers in China and china has earned the reputation “Uber for trucks” due to its likeness to the popular ride-hailing service of Uber.

The company, which customs under the name of Huochebang which is rendered as truck gangs and operates an online platform that is directly matched as empty cargo trucks with suppliers needing to transfer the goods and not unlike Uber’s method of connecting consumers with cars.

China has received revenue of $1 billion

Chinese has started the startup called Huochebang and this peddle itself in the country’s Uber for the trucking industry and it raised for 115 million dollars in a new capital round at a valuation of 1 billion dollars and this was reported by Bloomberg.

In most of the world, trucking is still the initial shipping for the transportation method, and many companies are still searching to disrupt the industry with an “Uber for trucking” idea which combines the truckers with the end user via digital apps.

The trucking industry in china generates more than 90 billion dollars per year in revenue and the IBIS World said this thing in a market research analysis report before starting in this year. And more than 90 percent of the freight trucks in China is owned by each person and therefore presenting an opportunity for the services which can connect these for each one to shippers in need of some transportation help.

The Huochebang and this is supported by Tencent, the maker of the especially WeChat the popular messenger application and this currently has more than 2.3 million trucks on its sales place and this has handled up to 100,000 bookings for a day. The important thing is it operates more than 1,000 service centers distributed all over China to encourage the drivers using its own platform.

The startup company has an exclusive revenue model in that and it does not charge a bill for any trucks, which is booked via from its site instead, the company sells toll passes to its truck drivers and it takes to cut when truckers top-up their credit or debit cards. This also provides loan financing options for its truckers.

Business Insider’s which is shortly called as BI Intelligence is a premium research service and this research has assembled a detailed report on same day distribute that takes a complete look at this sales place and sizes the percentage of users who will purchase the goods to be delivered on the same day.

The report discloses the demographics of same-day delivery users and therefore the retail where this help have the best chance of taking off, and assesses how each of the many new on the same day distributions that entry when compares to the others. It also looks at the new technology that absolutely could make getting a load delivered to our door at certain hours after we order it a common aspect.

Truck importance in china

Bloomberg is a major world new provider of 24-hour financial news and information, which including real-time and historic price data, financials data, sports and so no.

According to Bloomberg, the trucks which take more than 80 percent of the goods which are distributed in China. And while the logistics sector was valued at 1.6 trillion dollars in the year of 2013, the trucking industry remains disintegrate and inefficient. Therefore the trucks stand with empty of 40 percent of the time.

Given that, in China, everyone owns more than 94 percent of trucks on the road, and therefore anything which can reduce that percentage is more than welcome and it appears to be working.

Presently, the Huochebang which manages about one lakhs orders daily through its thousand service centers located throughout the country. It also processes 120 million dollars in shipping fees for each day.

Even though it bears the Uber for trucks label and Huochebang does not make money in the same way Uber does i.e. by taking a cut of the fees paid to drivers. Instead of the company derives its gain from selling an area of the services to the truckers that contain the toll cards and help with financing.

This company is a rising the star in the contribution to the world and too. It just raised from 116 million dollars from a group of the person who invested the amount. This new arrival of the funds gives to the company a valuation of 1 billion dollars, making it into a unicorn.

U.S revenue for Uber trucks

The Uberization is called as the logistics co-operation and is occurring at an active pace and is not just assign to the China.

Various companies in the America contest for the title of Uber for Trucks. The most three of the largest are Uber Freight, Convoy, and Cargomatic. The Go Share is a San Diego and it is based on Startup Company which, focused on the local moving and distribution is also making their progress.

Key points from the report

First, we are going to discuss the “Use”. The Business Insider (BI) intelligence estimates that 2 percent of the buyer which they are living in the cities and where the delivery take place on the same day and this was offered by the services. We can say in dollar term as that takes roughly as 100 million dollars worth of merchandise that are delivered on the same day which fulfills 25 US cities in this year.

“Consumer expectations” Here the consumer has an interest in the same day delivery is already a fair one. Maximum numbers are US shoppers said that they would use same day delivery because they have no time to purchase from the stores. They said they would consider relinquishing an online shopping and if the same day distribution was not an option.

“Demographics” The most ordinary same day delivery shopper fits for very a particular profile and this was highly likable for male, urban dwelling, and the youngsters. The products which people want to be delivered on the same-day are also fairly one.

“Barriers” In spite of the entire contest in the same-day distribution market, it still is a difficult thing to get the customer to pay for these services. Nearly 92 percent of people say they are eager to wait for four days or than longer for their e-commerce packages to enter.

In Conclusion                           

Therefore the Uber idea of the bypassing the intermediary and connecting the service to the providers and straightly to those who want them is exactly disruptive. But if it gives the results in higher productivity the trucking co-operation means less break and then so be it. Separated owner’s operators are likely to be grateful it very much.

 

Author Bio:

Andrew Shah is the Digital marketing Manager of Zoplay. He is a writer and coffee lover. He has is a graduate in Computer Science and Post Graduate in Entrepreneurship and leadership from Ulyanovsk State University, Russia. He is a passionate blogger & SEO Specialist. Zoplay is a Software Development company which has launched Cabily Script which is a Uber Clone with Android and iOS apps.

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