This week’s podcast is about Full Truck Alliance, a B2B marketplace platform for freight and cargo. There are a lot of lessons on the difficulties and complexities of matching, pricing and network effects for more complicated services.
Questions for simple network effects:
- Local vs. regional vs. international network effects?
- Fast vs. slow network effects?
- Directionality of interactions (Facebook vs. Twitter)?
- Degree vs. value of connections?
- Minimum viable scale vs. asymptotic scale?
- What is congestion / saturation / degradation scale?
- Linear vs. exponential growth at different scales? For each user group.
Questions for complicated network effects:
- Less than truckload freight (LTL). This is about coordinating demand and locations for mobility. This is similar to carpooling in ride-sharing. The matching, pricing and network effects are more complicated.
- On-demand vs. synchronous vs. asynchronous. Matching, pricing and network effects are more complicated. Pricing can follow spot demand vs. scheduled.
- Cyclical and other fluctuations in both supply and demand. This impacts both prices and utilization.
- Route specific network effects. Need to balance supply and demand (and critical mass) on each route.
- Serial routes. Matching, pricing and arranging multiple routes in sequence. Much more complicated
- How does this compare with economies of scale in geographic density.
How FTA describes its flywheel.
Numbers on FTA usage
From the Concept Library, concepts for this article are:
- Network Effects – Simple
- Network Effects – Complicated
- Marketplaces for Services
From the Company Library, companies for this article are:
- Full Truck Alliance
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