Full Truck Alliance has been a prominent player in long-distance logistics, while Lalatech dominates the intra-city freight market. However, on April 20th, Jiemian News reported that NYSE-listed Full Truck Alliance launched its own intra-city freight brand called “Sheng Sheng”. This move suggests that the company aims to compete with Lalatech in its dominant market.
Based on Frost & Sullivan’s data, Lalatech held the top position in China’s intra-city freight market with a 52.8% market share in 2021. DiDi Freight followed in second place with a 5.5% market share, while GOGOX ranked third with a 3.2% market share.
Full Truck Alliance has been involved in local freight transportation for several years, but its business volume has remained small. In 2020, it acquired a local freight transportation company called “Shengsheng Huitouche” and launched “Yunmanman Express” three months later. The current launch of the “Sheng Sheng” brand is a merger of these two previous brands.
“Sheng Sheng” is currently available in 14 cities, including Guangzhou, Foshan, Dongguan, Suzhou, Wuxi and Changzhou. The service is mainly concentrated in the Yangtze River Delta and Greater Bay Area. “Sheng Sheng” offers three types of services: economical carpooling, regular express and fast express. It provides a variety of vehicle models such as micro vans, small vans, medium-sized vans, small trucks and large trucks.
“Sheng Sheng” offers two pricing models: fixed and negotiated. The fixed model takes into account factors such as supply, demand, and market prices to determine the cost. On the other hand, the negotiated model provides a guide price for shippers but allows users to adjust their bids according to their actual cargo size.
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Full Truck Alliance claimed to have amassed a significant number of shippers, transportation resources, and data intelligence technology. Additionally, it has successfully connected the long-distance trunk logistics network with the urban distribution network.
Both Full Truck Alliance and Lalatech are under regulatory pressure in China. The Ministry of Transport has engaged with several freight platforms in the past, and on April 17th, it released a work plan mandating that these platforms reduce their commission rates or membership fees by the end of May. This move is aimed at ensuring truck drivers receive a reasonable income.
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