School Papers

In gained popularity in the last 3-4 years.

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.

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 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.

 

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.