This Uber for Trucks Company Is Growing 30% Per Year—and It's Profitable

China, often referred to as the "world's factory," thrives on its ability to produce goods at scale. Yet, for every product leaving a factory floor, there’s an unspoken hero ensuring it reaches its destination: logistics. Whether it’s shipping electronics to Europe or garments to North America, these goods must first traverse thousands of kilometers from inland factories to bustling coastal ports. This is where trucking becomes the lifeblood of China's economy.

China boasts the largest trucking industry in the world, with over 64,000 freight trucking companies employing approximately 1.3 million people crisscrossing its vast terrain (IBISWorld). In 2023, the logistics sector contributed 14.6% to the country's GDP (Statista), with trucks responsible for transporting 73.7% of the freight (IBISWorld).

The scale of China's trucking industry is unparalleled, but with size comes complexity. There were some challenges to overcome:

China's trucking industry was plagued by inefficiencies:

1. Fragmentation: The market was highly fragmented, with millions of owner-operators and small fleet owners, making it difficult for shippers to find reliable carriers.

2. Empty Runs: Trucks often traveled empty on their return trips, leading to 40% of all trips being non-revenue-generating. This wasted time, fuel, and money, and contributed to unnecessary emissions.

3. Manual Matching: Freight matching relied on traditional, time-consuming methods, such as brokers or bulletin boards at logistics hubs.

These challenges not only hindered profitability for truckers but also drove up logistics costs for businesses—an inefficiency China could ill afford.

This is where Full Truck Alliance (FTA) emerged as the "Uber for trucks," leveraging technology to bridge the gap between supply and demand in the trucking industry. Formed in 2017 through the merger of Yunmanman and Huochebang, FTA has become a leader in modernizing the highly fragmented logistics sector. The platform connects shippers with truck drivers in real-time, providing solutions that significantly enhance efficiency and transparency. Like Uber, FTA operates as an asset-light platform, eliminating the need to own a fleet of trucks.

FTA’s innovations include:

• Real-time Matching: Using AI and big data, FTA ensures that every truck trip has a payload, drastically reducing the empty-run rate.

• Driver Empowerment: Truckers gain access to more job opportunities, reducing dependence on brokers and increasing their income.

• Shipper Benefits: Businesses enjoy lower logistics costs, faster delivery times, and more reliable services.