1. The booking and utilization of trucks have traditionally

1.      Logistics Market Place and Truck
Aggregation

 

In
the transportation ecosystem, the online
marketplace has gained popularity in the last 3-4 years. Keeping
technology at the forefront, the transport aggregator startups are redefining
the logistics landscape of India, making the movement of goods more reliable
and efficient. These online marketplaces bring shippers (those who
ship goods) and carriers (transporters who carry these goods) on a single
connected platform.

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Online freight
aggregators have an edge over traditional service providers with real-time
demand aggregation, transparent pricing with the elimination of brokers, but technology adoption by suppliers(shipper)
remains a challenge. The booking and utilization of trucks have
traditionally been done on an unorganized basis through the network of
acquaintances and brokers. By bringing this online, these companies help in
bridging the demand-supply gap as well as
getting the right rates, both in real time. This has facilitated real-time tracking of goods that helped classify
the responsibility of different stakeholders
at each step of shipment which would further increase the efficiency of the
whole logistic channel.

The road-freight portion of the Indian
logistics market is currently valued at US$150 billion per annum and is growing
at a compounded annual growth rate (CAGR) of around 12%. That translates to a
new trucking demand of US$ 18 billion generated every year. If you break it
down to a month it is worth US$ 1.5 billion which is about Rs. 9,000 crores.
With the onset of GST and abolition of interstate and the value-added regime, Logistics is looking better
than ever. Now that consolidated warehousing is a reality and the “Zero-mile
city” status of Nagpur is finally being incentivized by logistics industry the
logistics cost for non-bulk industries is set to reduce by 20%. Another
opportunity for third party logistics
arises when GST tax on warehouses has increased from 15% to 18%. This is
pushing towards transport services that have a high
degree of value addition and bigger tax credits can now be claimed.

Still, the story may not
be so fairytale-ish as many intrinsic problems of transport sector are still
leukemia of blood vessels of our economy: Transportation. Problems like storage
and pilferage, middlemen meddling, connectivity, Drivers’ grievances for long
working hours and health issues, accompanied by erratic delivery times and not
to mention exiguous density of transporters throughout the country, has been
proving a challenge in the Indian trucking
industry which is highly fragmented, unorganized and lacks communication.

In spite of a whopping 4.7% contribution to our GDP,
logistics management still has loopholes
and hence incapable of delivering its share.

This
generates an urgency to develop a disruptive solution that can tackle problems
related to IT, warehouse management, networking, communication and complete
logistics control. Meanwhile, some
logistics startups aggregators are gearing up to finally streamline the
unorganized trucking business. Companies like Trukky, GoGoVan, etc. are pushing
the fragmented trucking in the country with logistics management apps.

Let’s Transport has helped Delhivery (a courier dispatch
company from Delhi) to track fleets in real time. They have the facility of instant
invoicing system and get alerts every time their shipping trucks reaches the destination or breaks down in the middle, it
reports to their warehouse.

Some more
notable players from India in this segment are Moovo, The Porter, BlackBuck
Logistics, Blowhorn etc. They are trying to make the logistics a better and
transparent place to work. These startup aggregators are very much successful
in convincing people that mobility solutions will only be going to help in solving logistics biggest hurdles.

These online truck aggregators are
facing tough competition from legacy businesses (or service providers) such as
Transport Corporation of India Ltd (TCI), Delhi Assam Roadways Corp. Ltd
(DARCL) and Karnataka Roadlines Pvt. Ltd.

BlackBuck started its operation in 2015 is an
online marketplace platform for freight management where shippers and fleet
operators can engage seamlessly. They are solving some of the core problems in
the areas such as price discovery, route optimization, in-transit tracking and
timely delivery assurance. With the help of the technology enabled integrated
platform, they are able to ensure that
the right shipper gets the right fleet operator at the right price.

Ever since its inception, Blackbuck is
able to incorporate shippers and fleet operators to optimally utilize their
potential to achieve maximum results. They are focused towards bringing a
positive impact on the freight ecosystem
that encompasses and stitches together countless livelihoods.

In
China, Huochebang, an Uber-type service for trucks was started in 2011. It
works with over 3.7 million trucks in China with the help of a cloud-based
logistics platform. The company has been in the spotlight and it is believed
that its service helped to save a substantial amount of money in terms of fuel
costs and contributed to a reduction of carbon emission to the extent of 33
million tons, getting praises from top leaders including President Xi Jinping
and Premier Li Keqiang.

The
company has accomplished astounding growth in the last couple of years. It has
got investments from big giants like Tencent Holdings, Baidu, and International Finance Corp. and raised
about US$370 million.

Recently, Huochebang
merged with Ymm56 to form Manbang. Its first-ever CEO, Wang Gang, projected
growth available in the Chinese freight market for which the company hopes to
take advantage after the establishment of the Big Data laboratory. This
facility will serve as the key to utilizing big data to improve logistics.

 

These online services have already started to cater to
the internal problems of the trucking industry.
They are committed to improving the
living standards of drivers while binding the much fragmented and sporadic
transport sector into the single transparent
system.

This is proving advantageous to both shippers and carriers
where shippers now get seamless on-demand availability of trucks with
transparent tracking and communication helping them create better supply
forecasts customer service while careers can now manage Inter and intracity daily transport at right costs
powered by fast payment settlement enabling an attractive
range of services and benefits. These even helps clear the cloud over
the legal and storage responsibility of different stakeholders at different
stages of transport.