Alphabet’s venture firm CapitalG and Softbank are planning to finance $1.9 billion into a China’s truck-hailing firm Manbang, as per the Chinese company’s statement. The survey suggests that more often, Manbang is described as China’s ‘Uber for trucks’, due to its provision of connectivity between shippers and truck drivers using company’s app.
According to various reports, the formerly know Full Truck Alliance Group has already some of the big investors under the equity, such as—Foxconn and Apple Inc. In addition to that, the Manbang truck-hailing firm has also home-ground investors like state-backed private equity firm China Reform Fund and Hongkong-based firm Ward Ferry.
Reports also stated that, with all the cumulative fund raisings the valuation of the Chinese truck-hailing company has increased to $6 billion approx. Manbang CEO Wang Gand says, “The deal has brought Manbang’s development into a new stage and could become the world’s largest platform in terms of transportation capacity.”
China is one of the world’s busiest markets for goods transport, thus the demand for haulage is increasing day by day. Considering the market, investing in such truck-hailing firms would be more profitable than others.
According to China’s company, most of the fund will be utilized to recruit new talent in order to expand the services in various areas. And also, the company will make some acquisitions of other firms if termed as beneficial and necessary.
Manbang also added, from about 7 million truck line in China around 5.2 million are members of the Full Truck Alliance currently known as Manbang. There’s a possibility of an increase in tension in rivals of the company in transport industries.