Technology

How Indian Logistics Startups Are Driving Efficiency In Truck Industry

truck logistics startups in india

Logistics and transportation play a crucial role to help the economy of India to sustain. You can call them as the nervous system to a country’s economy. And talking about a developing nation like India, with the rise of ecommerce platforms, logistics is growing like it’s no one’s business!

Increase in retail outlets, affluent demands from customers and increased connectivity are some of the major reasons why logistics is on a roller coaster. In spite of all these factors, you’ll come across a slew of problems which affects the industry to achieve its maximum potential. In fact the global cost of logistics accounts to approx 5 percent compared to 6 to 10 percent of what we have in India. Well, that means we still have a gigantic scope to improve our revenue margins by implementing better minds in logistics and supply chain management process. Then what’s stopping us?

Logistics on the whole, incorporates outbound and inbound supply chain & manufacturing segments in India. And these sectors are hugely fragmented. There is no proper regulatory structure to govern or control the industry!

Though Indian trucking is pegged to almost $130 billion market with around 6 million vehicles on road, broadly speaking, it’s cudgeling brains 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 lack communication. Despite of a whopping 4.7% contribution to our GDP, logistics management still have 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 shoving the the fragmented trucking in the country with logistics management apps.

Few Example

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 destination, breaks down or reports to their warehouse. Some more notable players here 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 can actually help in solving biggest logistics hurdles.

In India the process gets a bit difficult as majority of truck drivers are uncomfortable with English. That’s a reason why Blackbuck has incorporated Hindi in their driver’s app that makes it accessible and easier to more number of drivers. In short logistics startups are planning tactfully to introduce an Uber like trucking solution that modernizes the crippled logistics business.

How These Logistics Startups Are Breeding Revenues In India with Uber like trucking solution?

If you have a trucking business, the first thing you must rule out is an outdated operating system. And that’s what these startups are aiming. Let’s find out the major strategies

Updating An Outdated System

Old school operations is one of the major bottlenecks of the troubling logistics in India. There is no way to find out the whereabouts of your trucks, drivers, fuel count, speeding etc. Though GPS enable fleets incorporated with logistics management apps helped the case, it’s time to have a real time touch with clients and truck both. These companies are including top features for logistics app to improvise a better management and that includes:

  • Multilingual features in driver app (include local language)
  • Truck mapping (with geo-location features)
  • Driver account management (includes log/personal details)
  • Truck maintenance alerts (engine, brakes, parts health check)

Better Communication Within The Trucking Network

When you run a business, you’ve to deal with your employees, your clients and everyone else in your network. Similar goes for logistics business. Over the time, you need to make the management platform simpler and easier for your drivers, your clients and for internal management. And that’s the reason why startups like Let’s Transport and BlackBuck have introduced uber like trucking solution in their trucking management. With this, you get a business running like an oiled machine. Well how is that possible?

With logistics management apps solution, you get a shipper or admin app, driver app, an app for your merchant. So whenever there is an initiation for picking up a shipment, you, with the shipper app get alerted. Now comes your part to initiate your available drivers for delivering the shipment. The first to grab to order picks it up, choses the predefined route and reaches destination on time! All over app within few taps.

Isn’t that amazing how mobility can actually cut down the hassles of communication?

What New Things Are They Spicing Up?

BlackBuck has done a commendable job while trying out something new. Apart from the top listed features for logistics management apps, they have utilized some unique logistics app features to address current problems. You can have the features that includes:

The distance and mileage calculator

Shippers and merchants can track the overall distance covered. This will further help drivers to optimize the route, reach destination on time and get more deliveries done everyday.

A separate dashboard for shippers

No more idle trucks! To help keep track over available trucks, this features can be your savior. You can view available trucks with few taps on your smartphone. With that, you can easily assign orders to idling drivers- ultimate transparency in your business.

Your Trucking Bottomline

If you’re running a trucking business, you need to understand the demands of this fragmented market. There are major loopholes to cover but the result is not inconceivable. While you can take ideas from different logistics startups, it’s not required that you copy paste. India’s logistics market is different and hence the need is different as well. Think of out of the box solutions to resolve the pain points of logistics and its traditional ways. It’s high time to think of out-competing the market as the industry is yet quite untouched.

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7 Comments

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      Thanks, Najma! Glad you liked it. 🙂

      Yes, you’re true that the upcoming changes in taxation with GST will make India one big market for logistics startups. With larger warehouses and larger trucks, there will be a new adoption in the hub-and-spoke market. Technology driven logistics startups can now plan meaningfully to make more savings over time.The best part?

      There will be a single rate taxation that will stop logistics startups to build separate warehouses in differents states to cohere individual state’s tax code (keeping in mind that startups have limited resources). And hence easier goods movement across the country.

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    In India, trucks as the mode of transportation is widely used. Its very important to update the system and to improve the quality of transportation with the need of the time. I like this article very much. The information given in this article shows the truth about the status of supply chain in India . Thanks for sharing.

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      Thank the author for sharing the thoughts about transportation in India.
      And it is really great that logistic improving start-ups appear in India.
      But aren’t they a bit late? The USA “Uber-for-Trucking” market is VERY crowded and Very hot.
      Such companies like Uber Freight, Convoy, Doft.com, Transfix, Cargo Chief are developing such kind of Apps for years now. And whoever will win – will try to expand to another markets like India. Still there are options, that need to be developed. Like truck maintenance reminder – that would be interesting.

      • 7

        Thanks, Charu for liking it! 🙂

        Yes, the market is ‘hot’ because it’s something that will reduce a lot of man hours and bring automation largely. It’s true that India is a bit late but I think Uber for trucking is in Vogue in India too!

        And since India is also gearing up for the change, we at All Ride Apps are trying to make it easier for logistics startups by bringing a one-stop solution for all the truck and logistics variants. These type of solutions will outweigh different risks and reduce the challenges faced.

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