In episode 292 of Semantic Mastery's weekly Hump Day Hangouts, one participant asked if having a truncated URL is an issue with ranking service pages.
The exact question was:
Hi gents. I have a site structure question you may be able to help me with. I have a local site that has it's sub-menu pages off a parent menu (eg ervices) not showing the full url path. In fact it removes theervices part and only shows the truncated path domain.com/page-1 instead of showing the full path domain.com/services/page-1. Is that an issue with ranking service pages, and how does Google see this? thank you for all you do for this community!!!