First it got a lesson in the pitfalls of ignoring government regulators. Now, trucking app operator Full Truck Alliance Co. Ltd. (YMM.US) is getting a new lesson in basic economics.
That’s our major takeaway from a brief announcement by the company on Friday warning of potential fallout from a rate hike for its freight brokerage services, its second-largest revenue source. Full Truck Alliance acknowledged the move was almost certain to scare off some of its customers, who consist mostly of truckers and shippers in need of trucking services.
The move is just one of the latest adjustments by Full Truck Alliance as it navigates an increasingly bumpy road in a slowing Chinese economy. Other changes include layoffs over the past year, and a rapid buildup of its lending to the small businesses that are Full Truck Alliance’s core clients and often require short-term financing to run their operations.