Manbang says its apps are making China’s trucking industry more efficient, and that it is close to breaking even on its operations. But as Manbang tries to raise another billion dollars at a valuation of $10 billion, investors are becoming skeptical, people familiar with the situation said. The company still has to figure out how to make money, one investor said.
The Chinese startup dubbed the “Uber of trucks” has attracted foreign investors from Alphabet Inc to SoftBank Group Corp on the premise that it can make a lot of money from connecting the nation’s truckers with shippers who need goods carried.
Millions of users—both truckers and shippers—have signed on to the platform run by Manbang Group, or Full Truck Alliance, which is valued at USD6 billion. But Manbang has been giving away its main service of matching truckers with shippers for free, and is still figuring out who, and how much, it can charge. After several months of study, it says it decided a few months ago not to charge the truckers who make up the bulk of its users.
Source: Wall Street Journal