September 29, 2017

Future of Transportation and Truck Booking in India

In India, future of transportation and truck booking is to convert the process from manual to automatic (online) to manage transportation and truck booking online.Indian Transportation sector is approximately $100 billion market annually but highly unorganized due to manual way of working.Transporters are not familiar with online transport management and online truck and freight booking process.

It has got the huge number of problems which stakeholders face in day to day life. This is the only sector in India where only 2% of the market is captured by technology player as on date rest 98% is still open. The Indian transportation sector is continually growing at a compound annual growth rate of approximately 14%. We spent almost 15 percent of our GDP on transportation and logistics due to its unorganized nature, whereas in developed countries this figure is around 7%. However, the industry still remains heavily fragmented, unorganized and very rough in nature in its day to day operation. Online truck booking and online transportation can make it simpler but there are challenges lying ahead.You can read about benefits of online truck booking and its contribution to GDP. Before designing the platform or a mobile application it is important to understand the functioning and the core players of this market.

Functioning of Core Players in Transportation Industry


The core players in the transportation industry are Shippers.The shipper is the first owner of the goods, who needs it to be shipped from a pick-up point to drop point. At times, the goods shipped might have multiple pick-ups and drop points. Shipper can be a retailer, manufacturer, distributor where loads can be shipped from Transporters.


They are the primary players of freight handling for shippers; rates are decided either on market dynamics basis or through bidding.They are responsible for delivery of goods from the customers’ loading point to the unloading point, also accountable for consignment loss and damage claims during transportation. Some have their own fleet, but to fulfill the demand of truck requirement a large portion of fleet is sourced from market brokers.


Brokers/Agents are the main intermediaries between transporters and truckers, representative on behalf of truck owners, providing fleet to the trucking companies. They play a critical role in the Indian trucking ecosystem as they are the ones who are giving continuous work to them. Since the trucking companies have hardly any interaction with truckers, therefore brokers play an important role to bring trustworthiness in this sector.

Truck Owners-

Approximately 85% share of the truck fleet in India is accounted by less than 5 truck owners. They mainly depend on brokers for getting loads to keep their business going, either directly from customers or through trucking companies. Some of them ‘attach’ themselves to specific trucking companies. The rates they get are as per the market which reflects the supply-demand situation on specific origin-destination segments. In this structure of transportation business, the huge commission goes to broker and that where great opportunity lies for technology-based transporters.

Challenges & Opportunities for technology players

There are companies popping up every month in this sector but YOULORRY believes only handful will survive not all. Hardly anyone working in Indian transportation industry is comfortable to use technology therefore; it is the toughest challenge to introduce technology in this sector. Companies working with strong ground staff in synchronize with technology team have an edge and higher chances of survival. As per market experts Indian logistic industry is valued at $ 300 billion by 2020 that is where great opportunity lying ahead for companies like us, hardly 2% of the market is captured by tech based companies as yet. Western countries have seen the disruption in transportation industries but yet to happen in India. YOULORRY belies market is still not explored completely, many more road blocks are expected when will move ahead.

Driving Indian Transportation sector with use of Technology

There have been several attempts made by various companies to bring this sector in the online world. But it has not gone as easy as was expected till now, though the shippers have chosen to work through online platform, the transporters, brokers and fleet owners have preferred to work offline to fulfill the daily loads avoiding online working.
Technology can play a significant role in bringing the sector online and once it is done, it will impact this sector greatly. However, the following aspects need to be addressed appropriately.


In order to introduce online truck booking, online transportation or online freight booking in this sector, winning trust is very important. Because, the functioning of transportation industry is very rough in nature and stakeholders are not comfortable transacting with one another unless they know the people involved in the transaction. There are huge risk involved while transporting such loss or damage of goods & money at various layers that cannot be fixed beforehand, therefore believe among people is necessary.You need to read about 14 things to remember while online truck booking.

Simplicity in technology-

These are not tech say people, we should make sure, the exchanges need to be simpler as it could be.

  • Eliminating Intermediaries- In order to benefit the truck owners, it is important to reduce the number of layers involved between the shipper and the receiver. Then only the pricing would get better and the fleet owners would get benefited out of it.
  • Educate- The people working in this sector need to be educated about a lot of issues, such as online freight booking, online truck booking, awareness about road safety measures, timely deliveries of goods, etc.

I still believe that technology has a long and a major role to play in this industry, especially in the Indian context. There is a flurry of start ups in sector; leading ones are YOULORRY, RIVIGO, BLACKBUCK and few more.


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