In China’s freight industry, reaching actual truck owners and ensuring the authenticity and reliability of user data is crucial for our business. The Electronic Toll Collection (ETC) system has played a significant role in achieving this goal. To use ETC services, freight drivers first need to obtain an On-Board Unit (OBU) device. However, the current market faces various issues in the distribution and acquisition of OBU devices, which hinders the development of freight ETC services. As an innovative challenger in the industry, Trucpal has recently addressed this problem with our self-designed OBU self-service machines.
The Importance of ETC in Trucpal’s Strategy
China’s transportation environment is extremely complex, and truck owners often lack transportation permits, requiring cooperation with transport companies. This makes it very difficult to identify genuine truck owners through documents alone. ETC is one of the main expenses for vehicles, with each vehicle only able to have one ETC card, linked to the owner’s real-name bank card. This effectively locks in highly engaged real users, which is why we decided to use ETC as an entry point to quickly gather truck owner users. Once a large user base is established, we can guide ETC users to utilize other features of our platform. Additionally, ETC is a mandatory expense for long-distance transportation, and the government provides a 5% to 15% toll discount to promote ETC usage, making it an economically attractive way to attract users.
Challenges of Traditional OBU Procurement Methods
To use ETC services, truck drivers need to purchase an OBU device. Traditionally, there are two main ways to buy OBU devices:
- Online Purchase: Although convenient, this method comes with risks. Online channels are poorly managed, leading to frequent overcharging and even scams where drivers pay but never receive the device. In 2023 alone, regulatory authorities in the freight industry received numerous complaints from drivers about these issues, causing significant losses to the industry. Moreover, since truck drivers spend most of their time on the road, even if they provide a delivery address, they often cannot receive the device promptly due to their travel schedules.
- Offline Store Purchase: Most offline stores are official outlets located in city centers, which are not truck-friendly since trucks are often not allowed on city streets. Additionally, the high cost of store rent leads to higher prices, and there are occasional stock shortages.
Innovative Solution: OBU Self-service Machines
Inspired by the success of mobile power banks in China, Trucpal has pioneered the introduction of OBU self-service machines. These machines provide a convenient and accurate solution for distributing OBU devices without the need for dedicated stores, thereby reducing costs. By partnering with existing truck stops, gas stations, and used truck markets, we can strategically place these machines in locations frequently visited by truck drivers.
This innovative approach not only makes it easier for truck drivers to purchase OBU devices but also reduces the risk of online scams. Trucpal is currently working with suppliers on product design and production, and we believe that in the near future, OBU self-service machines will be deployed nationwide at major truck driver hubs. This initiative will significantly boost Trucpal’s ETC business and user growth.
Trucpal’s strategic focus on ETC services and the innovative deployment of OBU self-service machines demonstrate our commitment to enhancing China’s freight industry. By addressing the complexities of the transportation environment and providing practical solutions, we aim to create a more efficient and reliable system for truck owners. As we continue to roll out these initiatives, Trucpal will achieve substantial growth and become a leader in the digital transformation of the freight industry.
