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How China hopes to reform chaotic trucking sector via Uber tech
MUCH hope is pinned on the merger of two rival Chinese trucking giant to bring order and efficiency - even improved public health - what all agree is a chaotic road haulage sector.
Last week's merger of Huochebang with its rival Yunmanman, intends to bring an Uber-like system to China trucking which carries 80 per cent on the country's freight, says Bloomberg.
The new company should be able to match drivers with cargo and on a huge scale. As of July, Huochebang was working with 4.5 million truckers and 880,000 shippers.
But the merger also involves an "internet of vehicles", whereby every vehicle reports its location and, in turn, receives data on every other vehicle's location, thereby reducing congestion.
The merger is said to solve much of that problem, creating a company with the scale to rationalise an inefficient and often chaotic industry.
It gives government a large, computerised dispatching agency that can be integrated into its broader plans.
The situation dates back to China's decision to disband the state-owned monopolies, which were replaced by millions of independent truckers.
By 2012, there were nine million trucking companies - six million owned one truck - resulting in 90 per cent of commercial trucks today.
Finding freight is a struggle for most, requiring affiliating with bigger companies or wasting hours in the open truck market in negotiations with shippers.
Last week's merger of Huochebang with its rival Yunmanman, intends to bring an Uber-like system to China trucking which carries 80 per cent on the country's freight, says Bloomberg.
The new company should be able to match drivers with cargo and on a huge scale. As of July, Huochebang was working with 4.5 million truckers and 880,000 shippers.
But the merger also involves an "internet of vehicles", whereby every vehicle reports its location and, in turn, receives data on every other vehicle's location, thereby reducing congestion.
The merger is said to solve much of that problem, creating a company with the scale to rationalise an inefficient and often chaotic industry.
It gives government a large, computerised dispatching agency that can be integrated into its broader plans.
The situation dates back to China's decision to disband the state-owned monopolies, which were replaced by millions of independent truckers.
By 2012, there were nine million trucking companies - six million owned one truck - resulting in 90 per cent of commercial trucks today.
Finding freight is a struggle for most, requiring affiliating with bigger companies or wasting hours in the open truck market in negotiations with shippers.
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