In a CAGR of around 12%. That translates to

In the transportation ecosystem, the online marketplace has gained popularity in the
last 3-4 years. Keeping technology at the forefront, the startup 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$150 billion per annum and is growing at a CAGR of around 12%. That
translates to a new trucking demand of US$ 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).

Though Indian
trucking is pegged to almost $150 billion market with around 6 million vehicles on road, broadly
speaking, it is facing challenges 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 transporters

This clearly showcases the current
scene in Indian trucking industry. It’s highly fragmented, unorganized and lacks communication. Despite 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, 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 aggregators are facing
stiff competition from legacy businesses such as Transport Corporation of India
Ltd (TCI), Delhi Assam Roadways Corp. Ltd (DARCL) and Karnataka Roadlines Pvt.
Ltd.

BlackBuck, 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 their unmatched
technology integrated platform, they are committed to ensuring that the right shipper gets matched with the right fleet
operator at the right price.

Ever since its
inception in 2015, BlackBuck has been empowering numerous 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 fuel costs and also 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 achieved 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.      Instant availability of trucks

2.      Advanced shipment tracking

3.      Hassle-free end-to-end freight
management

For carriers
(or fleet operators)

1.      Daily loads across India at right
prices

2.      Fast payment settlements

3.      Attractive range of services and
benefits

 

 

 

 

 

 

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