Chinese Huochebang Attracts Attention As The UBER Of Logistics With Its Value Over 1 Billion USD
Uberization is showing itself in many areas these days. A successful example of this new mobile technology trend from the logistics industry came from China.
“Truck Alliance” (Huochebang), which provides online infrastructure services to truckers and logistics companies in their tracking and management, deserved to be compared to the “Uber of Logistics” in China with its success and similar structure to Uber.
Locally known as “Huochebang” (Truck Gangs), the startup works with a system similar to Uber’s matching people with vehicles, matching truckers with empty spaces in their vehicles with logistics companies with cargo to be shipped.
Logistics transport in China is carried out by highways with a rate of 80%. In addition, the ownership of freight vehicles is 90% owned by individuals. (With these two indicators, we can emphasize the similarity of China to the Turkish logistics industry, which carries out road transport with a rate of 92% and where trucks are owned by individuals with a rate of 90%.)
According to Bloomberg data, China’s logistics sector size was 1.6 trillion USD in 2013. The fact that has been determined for such a huge logistics sector is; that the sector works in a fragmented structure and inefficiently. It has been determined that trucks that are in a position to work are idle 40% of their working time. Finding the solution to this problem in uberizing Chinese road logistics transportation, “Truck Alliance”, with its success in a short time, has signed a giant structure that mediates 100 thousand shipments every day, has 1,000 service points across the country, and returns a transaction volume of 120 million USD every day. threw.
“Huochebang” is also a rising star with the investments it has received. The successful startup, which has increased its total value to 1 billion USD with its most recent investment of 115 million USD, is called a “Unicorn” with its name in the investment world.
Of course, “Uberization” is not just a concept within the borders of China, many startups, especially in the USA, have covered great distances on the path Uber has shown, and they have both increased their logistics market integration and received large investments. For example; Startups like “Convoy”, “GoShare” or Uber’s own logistics venture “Uber Freight” are struggling to become the “Uber of Logistics” in the US market.