[Interview] "Check Freight Truck Rates in Advance Like Taxi Fares"

Interview with Song Ji-won, Head of DFM Business at Tmap Mobility
Utilizing Big Data... Achieving Over 90% Accuracy in Highly Volatile Freight Rates
Targeting the 7 Trillion Won Brokerage Market
Plans for Mutual Growth with 450,000 Vehicle Owners Nationwide

Song Ji-won, head of the DFM business at T map Mobility, is explaining the 'T map Cargo' service during an interview with our publication at the T map Mobility headquarters in Euljiro, Seoul, on the afternoon of the 16th.

[Asia Economy Reporter Cha Min-young] Tmap Mobility, the provider of the popular navigation app 'Tmap,' is making a significant impact by entering the freight transportation brokerage market. Customers are rapidly increasing as they can now easily compare the widely varying and previously negotiable estimated freight charges through digital transformation. Companies operating freight trucks have also seen a significant reduction in disputes related to freight charges with their clients.

On the afternoon of the 16th, Song Ji-won, head of the DFM business at Tmap Mobility, whom we met at the company's headquarters in Euljiro, Seoul, said, "In a market with information asymmetry where freight brokers do not disclose the exact criteria for freight charges, the highly volatile freight rates were a major concern for shippers (clients)." When Song entered a route from Incheon International Airport to Daejeon Integrated Logistics Complex on the Tmap Mobility freight brokerage solution 'Tmap Cargo' website, as if using a taxi service, the estimated freight charge was 238,000 KRW for immediate departure at 3 PM. The cheapest price was introduced as 215,000 KRW for departure at 11 AM the next day. If urgent, it could be sent for 230,000 KRW, or for a later time, for 210,000 KRW.

Opaque pricing was an unpredictable area for shippers every time. Song Ji-won explained, "For example, when exogenous variables such as heavy snowfall occur, drivers may not show up for work, causing large price fluctuations," adding, "Because distance, time, and supply factors are not uniform, standardizing freight charges was a very difficult market." In such situations, the price quoted by the broker inevitably became the price. Song said, "When freight truck operators estimated freight charges based on time, distance, and cargo type by intuition, the accuracy was only 60%, but with the introduction of digital technology, it has increased to 90% (according to Tmap Mobility standards)."

Tmap Mobility pursues big data-based smart mobility services. Their interest in the freight transportation market stems from the fact that despite vast big data, it is often underutilized. Song said, "The inland freight transportation market is worth 30 trillion KRW annually, with the brokerage market accounting for 7 trillion KRW," adding, "The market is large, and there are nearly 10,000 transportation companies, making competition intense, but the digital transformation speed is slower compared to other industries, which we see as an opportunity."

The platform-based Tmap Cargo service's primary goal is to provide a 'shipper-friendly service.' Although still in pilot testing, about 600 companies have used the Tmap Cargo service cumulatively, with 400 actively using it. The sectors are diverse, ranging from automotive to manufacturing, distribution, construction, and machinery. Going forward, Tmap Mobility plans to promote mutual growth with 450,000 freight truck owners nationwide. They also offer a dedicated Tmap navigation service for freight trucks free of charge. Song said, "Competitors provide freight truck-specific navigation services as paid subscriptions, but Tmap offers this service for free," adding, "There is growing demand for information on parking spaces and rest areas, so we are considering service improvements to enhance driver convenience."

The Tmap Cargo service will undergo a closed beta test (CBT) this month and is scheduled for official launch in the first quarter of next year. Tmap Mobility also plans to run a pre-reservation promotion for freight from December 22 this year to January 5 next year.

This content was produced with the assistance of AI translation services.