1. The booking and utilization of trucks have traditionally

1.      Logistics Market Place and TruckAggregation Inthe transportation ecosystem, the onlinemarketplace has gained popularity in the last 3-4 years. Keepingtechnology at the forefront, the transport aggregator startups are redefiningthe logistics landscape of India, making the movement of goods more reliableand efficient. These online marketplaces bring shippers (those whoship goods) and carriers (transporters who carry these goods) on a singleconnected platform. Online freightaggregators have an edge over traditional service providers with real-timedemand aggregation, transparent pricing with the elimination of brokers, but technology adoption by suppliers(shipper)remains a challenge.

 The booking and utilization of trucks havetraditionally been done on an unorganized basis through the network ofacquaintances and brokers. By bringing this online, these companies help inbridging the demand-supply gap as well asgetting the right rates, both in real time. This has facilitated real-time tracking of goods that helped classifythe responsibility of different stakeholdersat each step of shipment which would further increase the efficiency of thewhole logistic channel.The road-freight portion of the Indianlogistics market is currently valued at US$150 billion per annum and is growingat a compounded annual growth rate (CAGR) of around 12%. That translates to anew trucking demand of US$ 18 billion generated every year. If you break itdown to a month it is worth US$ 1.5 billion which is about Rs.

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9,000 crores.With the onset of GST and abolition of interstate and the value-added regime, Logistics is looking betterthan ever. Now that consolidated warehousing is a reality and the “Zero-milecity” status of Nagpur is finally being incentivized by logistics industry thelogistics cost for non-bulk industries is set to reduce by 20%.

Anotheropportunity for third party logisticsarises when GST tax on warehouses has increased from 15% to 18%. This ispushing towards transport services that have a highdegree of value addition and bigger tax credits can now be claimed.Still, the story may notbe so fairytale-ish as many intrinsic problems of transport sector are stillleukemia of blood vessels of our economy: Transportation. Problems like storageand pilferage, middlemen meddling, connectivity, Drivers’ grievances for longworking hours and health issues, accompanied by erratic delivery times and notto mention exiguous density of transporters throughout the country, has beenproving a challenge in the Indian truckingindustry which is highly fragmented, unorganized and lacks communication.

In spite of a whopping 4.7% contribution to our GDP,logistics management still has loopholesand hence incapable of delivering its share.Thisgenerates an urgency to develop a disruptive solution that can tackle problemsrelated to IT, warehouse management, networking, communication and completelogistics control. Meanwhile, 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 has helped Delhivery (a courier dispatchcompany from Delhi) to track fleets in real time. They have the facility of instantinvoicing system and get alerts every time their shipping trucks reaches the destination or breaks down in the middle, itreports to their warehouse.

Some morenotable players from India in this segment are Moovo, The Porter, BlackBuckLogistics, Blowhorn etc. They are trying to make the logistics a better andtransparent place to work. These startup aggregators are very much successfulin convincing people that mobility solutions will only be going to help in solving logistics biggest hurdles.These online truck aggregators arefacing tough competition from legacy businesses (or service providers) such asTransport Corporation of India Ltd (TCI), Delhi Assam Roadways Corp. Ltd(DARCL) and Karnataka Roadlines Pvt. Ltd.BlackBuck started its operation in 2015 is anonline marketplace platform for freight management where shippers and fleetoperators can engage seamlessly.

They are solving some of the core problems inthe areas such as price discovery, route optimization, in-transit tracking andtimely delivery assurance. With the help of the technology enabled integratedplatform, they are able to ensure thatthe right shipper gets the right fleet operator at the right price.Ever since its inception, Blackbuck isable to incorporate shippers and fleet operators to optimally utilize theirpotential to achieve maximum results. They are focused towards bringing apositive impact on the freight ecosystemthat encompasses and stitches together countless livelihoods.InChina, Huochebang, an Uber-type service for trucks was started in 2011.

Itworks with over 3.7 million trucks in China with the help of a cloud-basedlogistics platform. The company has been in the spotlight and it is believedthat its service helped to save a substantial amount of money in terms of fuelcosts and contributed to a reduction of carbon emission to the extent of 33million tons, getting praises from top leaders including President Xi Jinpingand Premier Li Keqiang. Thecompany has accomplished astounding growth in the last couple of years. It hasgot investments from big giants like Tencent Holdings, Baidu, and International Finance Corp. and raisedabout US$370 million.

Recently, Huochebangmerged with Ymm56 to form Manbang. Its first-ever CEO, Wang Gang, projectedgrowth available in the Chinese freight market for which the company hopes totake advantage after the establishment of the Big Data laboratory. Thisfacility will serve as the key to utilizing big data to improve logistics. These online services have already started to cater tothe internal problems of the trucking industry.They are committed to improving theliving standards of drivers while binding the much fragmented and sporadictransport sector into the single transparentsystem.This is proving advantageous to both shippers and carrierswhere shippers now get seamless on-demand availability of trucks withtransparent tracking and communication helping them create better supplyforecasts customer service while careers can now manage Inter and intracity daily transport at right costspowered by fast payment settlement enabling an attractiverange of services and benefits.

These even helps clear the cloud overthe legal and storage responsibility of different stakeholders at differentstages of transport.