Mo­bile app Yun­man­man set to be­come Didi of cargo firms

China Daily (Hong Kong) - - BUSINESS -

BEI­JING — Mo­bile app Yun­man­man, or YMM, is look­ing to shake up the lo­gis­tics sec­tor in China by be­com­ing the Didi of cargo com­pa­nies

In just three years, YMM, owned by Jiangsu Manyun Soft­ware Tech­nol­ogy Co Ltd, has re­de­fined the land-based lo­gis­tics scene in China, hav­ing con­nected busi­nesses re­quir­ing cargo de­liv­ery with 78 per­cent of the na­tion’s heavy truck driv­ers in more than 350 cities.

Founded in 2013 by Zhang Hui and around five co-founders in­clud­ing Miao Tianye, the app has re­duced av­er­age wait­ing time for cargo driv­ers from 2.27 days to 0.38 days and fa­cil­i­tates about 240,000 trans­port deals every day.

Miao, who is the pres­i­dent of Manyun Soft­ware Tech­nol­ogy, said that the app has also helped re­duce car­bon emis­sions by 70 mil­lion tons and gaso­line ex­penses by 130 bil­lion yuan ($18.97 bil­lion) be­tween 2015 and 2016.

“As a group of peo­ple with­out any lo­gis­tics back­ground, we were drawn to the off­line road trans­porta­tion sec­tor be­cause it can gen­er­ate sev­eral tril­lion yuan in rev­enue sim­ply through face-to-face trades,” said Miao, who had for­merly worked at Chi­nese e-com­merce gi­ant Alibaba for eight years.

“YMM is quite sim­i­lar to Alibaba’s e-com­merce plat­form Taobao. To­day, we have con­nected more than 850,000 cargo own­ers to over 3.9 mil­lion heavy truck driv­ers around China.”

Pre­vi­ously, heavy truck driv­ers waited in in­dus­trial parks for as­sign­ments which were sim­ply scrib­bled on a small black­board. But this was not the only ex­am­ple of in­ef­fi­ciency in the in­dus­try — data from China’ s Min­istry of Com­merce showed that there is a 37 per­cent chance that driv­ers are trav­el­ling with no load, which is a waste of time and fuel.

“In the com­ing years, YMM will be look­ing to de­velop an in­tel­li­gent au­to­ma­tion sys­tem, which takes only 38 sec­onds to match cargo to a driver with an ac­cu­racy rate of 99 per­cent. The sys­tem takes 1.2 sec­onds to de­ter­mine a price and is 98.4 per­cent ac­cu­rate. The sys­tem can also help boost schedul­ing ef­fi­ciency to 95 per­cent and in­crease the in­come of driv­ers by 20 per­cent,” said Miao.

The ben­e­fits that YMM pro­vided driv­ers, how­ever, was not read­ily ac­cepted. Miao said that the com­pany sent more than 2,000 peo­ple to in­dus­trial parks around the coun­try to pro­mote the app, only to have many re­turn with bruises in­flicted by an­noyed driv­ers who were re­sis­tant to change. Some of these mar­keters even had their phones con­fis­cated.

“Any change to a busi­ness model that has been around for decades will be ex­tremely dif­fi­cult to ac­cept,” said Miao.

De­spite the chal­lenges, the team at YMM sol­diered on and even­tu­ally grew the busi­ness rev­enue to 450 bil­lion yuan in 2016. The com­pany has a pres­ence in three cities — its head­quar­ters are lo­cated in Nan­jing, Jiangsu province, while its re­search and de­vel­op­ment fa­cil­ity and mar­ket­ing cen­ter are based in Shang­hai and Bei­jing re­spec­tively.

Be­sides con­nect­ing driv­ers with cargo own­ers, YMM also rolled out a credit sys­tem to boost trans­parency and en­sure that both par­ties honor their con­tracts. Of­fend­ers with low credit rat­ings are placed on a black­list that pro­hibits them from us­ing the app.

num­ber of cargo own­ers which YMM has con­nected around China

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.