In Keeping technology at the forefront, the startup

In the transportation ecosystem, the online marketplace has gained popularity in the
last 3-4 years. Keeping technology at the forefront, the startup transport aggregators
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.

Online freight aggregators have an edge over traditional service
providers with real-time demand aggregation, pricing transparency and
elimination of brokers, but technology adoption by suppliers remain a
challenge. The booking and utilization of trucks have traditionally been
done on an informal basis through the network of acquaintances and brokers. By
way of bringing this online, these companies help in bridging the demand-supply gap as well as getting the right
rates, both in real time.

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The road-freight portion of the 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 (per month).

But it is facing
challenges over issues, such as

Storage and pilferage issues
Brokers or Middlemen meddling
with the operations
Shipment location
Driver’s long hours of service
Late delivery of shipent
Transporters availability in
the region

This clearly showcases the current issues
in the Indian trucking industry. It 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.

So, there is an innate need to
develop a disruptive solution that can tackle problems related to IT, warehouse
management, networking, communication and complete logistics control. And 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 helped Delhivery,
a courier dispatch company from Delhi, track fleets in real time. They have now
instant invoicing system and get alerts every time their shipping trucks
reaches the destination, breaks down or
reports to their warehouse.

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

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

BlackBuck started in 2015 is an online
marketplace platform for freight 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 their unmatched technology 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.

 

 

The
advantages for both shippers and carriers (or fleet operators) in these
marketplaces are numerous. Some are listed below.

For Shippers

1.      On-demand availability of trucks

2.      Shipment tracking at all times

3.      Hassle free end-to-end freight
management