In the transportation ecosystem, the online marketplace has gained popularity in thelast 3-4 years. Keeping technology at the forefront, the startup transport aggregatorsare redefining the logistics landscape of India, making the movement of goods morereliable and efficient. These online marketplaces bring shippers (those whoship goods) and carriers (transporters who carry these goods) on a singleconnected platform.Online freight aggregators have an edge over traditional serviceproviders with real-time demand aggregation, pricing transparency andelimination of brokers, but technology adoption by suppliers remain achallenge. The booking and utilization of trucks have traditionally beendone on an informal basis through the network of acquaintances and brokers.
Byway of bringing this online, these companies help in bridging the demand-supply gap as well as getting the rightrates, both in real time.The road-freight portion of the logistics market is currentlyvalued at US$150 billion per annum and is growing at a compounded annual growthrate (CAGR) of around 12%. That translates to a new trucking demand of US$ 18billion 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 (per month). But it is still facingchallenges over issues, such as Storage and warehouse management issues Poor infrastructure Middlemen meddling with your operations No control over drivers and their HOS (hours of service) Untimely deliveries Availability of transportersThis clearly showcases the currentscene in Indian trucking industry.
It is highly fragmented, unorganized and lacks communication. In spite of a whopping4.7% contribution to our GDP, logistics management still has loopholes and hence incapable of deliveringits share.So, there is an innate need todevelop a disruptive solution that can tackle problems related to IT, warehousemanagement, networking, communication and complete logistics control.
And somelogistics startups aggregators are gearing up to finally streamline theunorganized trucking business. Companies like Trukky, GoGoVan, etc. are pushingthe fragmented trucking in the country with logistics management apps.Let’s Transport helped Delhivery,a courier dispatch company from Delhi, track fleets in real time.
They have nowinstant invoicing system and get alerts every time their shipping trucksreaches the destination, breaks down orreports to their warehouse. Some more notable players from Indiain this segment are Moovo, The Porter, BlackBuck, Blowhorn etc. They are gradually making the logistics a betterplace to work.
These startup aggregators are successful in convincing peoplethat mobility solutions will be going tohelp in solving biggest logistics hurdles.These online truck aggregators are facingtough competition from legacy businesses such as Transport Corporation of IndiaLtd (TCI), Delhi Assam Roadways Corp. Ltd (DARCL) and Karnataka Roadlines Pvt.Ltd.BlackBuck started in 2015 is an onlinemarketplace platform for freight where shippers and fleet operators can engageseamlessly. They are solving some of the core problems in the areas such asprice discovery, route optimization, in-transit tracking and timely deliveryassurance. With the help of their unmatched technology integrated platform, theyare able to ensure that the right shippergets the right fleet operator at the right price.
Ever since itsinception, Blackbuck is able to incorporate shippers and fleet operators tooptimally utilize their potential to achieve maximum results. They are focusedtowards bringing a positive impact on thefreight ecosystem that encompasses and stitches together countless livelihoods.In China, Huochebang, an Uber-typeservice for trucks was started in 2011. It works with over 3.
7 million trucksin China with the help of a cloud-based logistics platform. The company hasbeen in the spotlight and it is believed that its service helped to save asubstantial amount of money in fuel costs and contributed to a reduction ofcarbon emission to the extent of 33 million tons, getting praises from topleaders including President Xi Jinping and Premier Li Keqiang. The company has achieved astoundinggrowth in the last couple of years.
It has got investments from big giants likeTencent Holdings, Baidu, andInternational Finance Corp. and raised about US$370 million.Recently, Huochebang merged with Ymm56 to form Manbang. Itsfirst-ever CEO, Wang Gang, projected growth available in the Chinese freightmarket for which the company hopes to take advantage after the establishment ofthe Big Data laboratory.
This facility will serve as the key to utilizing bigdata to improve logistics. Theadvantages for both shippers and carriers (or fleet operators) in thesemarketplaces are numerous. Some are listed below.For Shippers1. Instant availability of trucks2.
Advanced shipment tracking3. Hassle-free end-to-end freightmanagementFor carriers(or fleet operators)1. Daily loads across India at rightprices2.
Fast payment settlements3. Attractive range of services andbenefits