Trucpal: A Rising Challenger in China’s Freight Industry (Part 2)
Leveraging ETC Business
Trucpal is an intelligent comprehensive management platform for freight trucks, aiming to digitize the entire freight production process. Our specific services include truck-cargo matching, ETC, refueling, charging, online payment, tax planning, and post-vehicle e-commerce (insurance, tires, lubricants, and even vehicle procurement). However, these functions are merely basic Web2.0 internet platforms. Ultimately, we aim to combine the system with blockchain technology, evolving the physical industry towards Web3.0, using token economics to disrupt the traditional internet ecosystem.
Currently, the core function of the platform is ETC. Since ETC can reach real truck owners and ensure the authenticity and reliability of user data, it is crucial for our business. China’s transport landscape is complex; individual truck owners often lack transport licenses and need to affiliate with a transport company, making it difficult to identify real truck owners from documentation. ETC is one of the main costs for vehicles, and each vehicle can only apply for one ETC card, bound to the owner’s real-name bank card. This effectively locks in real users with strong stickiness, which is why we decided to use ETC as an entry point to quickly gather truck owner users. Once a substantial user base is established, we can guide ETC users to use other platform functions. Additionally, ETC is a mandatory expense for long-distance transportation, making it a low-cost way to attract users. Currently, all basic functions of the Trucpal platform are online, except for the network freight and e-commerce functions.
Trucpal: Leading Compliance Development
Trucpal is a pioneer in the new era of compliance. As one of the first companies in the freight industry to achieve financial and tax compliance, Trucpal sets new standards for operational excellence and regulatory adherence. Our online freight segment will no longer consider tax subsidies in future development but will expand based on regional freight volumes and our ETC business coverage, adopting compliant VAT deductions to reduce costs and promoting a transparent charging model. Our partnership with SuTong Card demonstrates our commitment to compliance and innovation.
- Establishing a New Account Model with SuTong Card
To meet stringent financial and tax compliance requirements, Trucpal has partnered with SuTong Card, the market leader in ETC services, from the beginning to establish a new, regulatable account model (Trucpal is currently undergoing a comprehensive account upgrade). This innovative model aims to simplify financial transactions, ensure transparency, and maintain regulatory compliance, effectively mitigating financial risks on the platform.
Meanwhile, we will establish wholly-owned or joint venture network freight companies in various provinces to focus on local business, invoicing and paying taxes locally. This approach prevents the loss of local tax revenue, which is especially welcomed by local governments in times of tight finances, while also being more compliant. The SuTong Card model is a new model that meets the development requirements of China’s freight industry under new regulatory demands. As other ETC service providers in different provinces follow SuTong Card’s example, Trucpal will be fully prepared to expand its business.
- Providing Comprehensive Financial Services
In addition to our compliance initiatives, Trucpal is currently one of the few companies in the freight market with commercial factoring qualifications. We can provide a range of financial services to our clients, including accounts receivable, loans, and prepayments, designed to meet different client needs and support their development.
We enter the market with ETC business, acquire users, and create a reliable credit system for them during the service process, providing corresponding financial services based on their credit ratings. This business combination gives Trucpal a competitive advantage in the market.
- Innovating with Trucpal Token and User Credit System
Trucpal is at the forefront of financial innovation with Trucpal Token and the user credit system. This combination represents a significant advancement in reward and incentive management within the industry.
In the Trucpal mining system, every transaction between cargo owners and truck owners earns Trucpoints, which are held by Trucpal. Traditionally, companies could only use points to reward users, but Trucpoints can be used as cash in our application and redeem for Trucpal Tokens, sharing 75% of Trucpal’s ecosystem revenue. This makes them more valuable than ordinary points and deeply binds users to the ecosystem for mutual benefit. Additionally, Trucpoints can be used as collateral to solve the problem of lack of guarantees or collateral for credit loans. When we provide loan or prepayment services to users, their Trucpoints are locked. If users default, we will deduct the necessary Trucpoints.
Trucpal will also integrate third-party credit as an auxiliary measure, but the number of Trucpoints held by users will be the primary basis for our financial investment evaluation. The more Trucpoints users hold, the more active their transactions are, indicating healthier business operations and higher corresponding user rights levels on the platform. The platform will provide better financial products for users with higher rights.
Future Outlook and Vision
China’s freight industry is at a critical moment. The government’s push for compliance is reshaping the industry landscape, bringing challenges to established giants and opportunities for new entrants. Trucpal is uniquely positioned to seize these opportunities. As the first company to partner with SuTong Card to launch a new financial account model, we are setting new benchmarks for the industry. Our innovative account models, comprehensive financial services combined with the flywheel effect of Web3.0 tokenomic, enable us to expand rapidly and become a disruptive force. We believe in our ability to lead the industry towards a more compliant, sustainable, and innovative future. Trucpal is not just a challenger; we are the new standard-bearers in the freight industry, ready to drive change and set new milestones for others to follow.
