Digital freight brokerage sector is currently a multi-billion dollar industry and has witnessed significant funding by marquee investors and PE firms since 2016. Since, 2016, the market has witnessed presence of both digital freight brokers and digital freight marketplace. To distinguish these two, Digital freight brokers operate traditional businesses with a relatively small number of outside partners, while digital freight marketplace seek to build software platforms with a relatively large number of partners and participants.
What adds Complexity to Freight Transport Market?
Transporting freight is always a complex business as there are numerous regulations with which carriers and shippers must adhere, presence of coordination problem since freight shipments must be transported via different modes of transport and evolving expectations for shippers.
Traditional freight brokers, owing to their extensive experience with a large pool of people are well able to assess shipper’s need and work as intermediaries between shippers and carriers. Individual freight brokers perform a function that can not yet be replicated entirely with software.
How the Disruption can happen in Freight Brokerage Market?
Traditional brokers invest more on human resource instead of software technology, which is the focus area for every digital freight brokerage company. The market is moving towards technology enabled software, which can easily connect shippers with carriers through the use of technology.
If the digital freight brokers will be able to create a financial distress for traditional brokers and can affect the market positioning of these players significantly, disruption can be made successful in this sector. The financial distress can be made possible only on the basis of price, along with some of the crucial factors highlighted below:
- Effectively matching of shippers with carriers, wherein carriers will not reject the request received by the shippers.
- Large Audience of shippers and carriers is required to be offered with services across multiple road corridors and catering to every end user industries, serving as one-stop solution.
- Strengthening both forward and return route load volumes by expanding strategically
- Coordinating with partners and provide complementary tools and services including insurance, finance, fuel cards, toll cards and others to reduce the friction between the entities.
- Maintaining and enforcing rule for participants of platform to protect interest of the entities.
Hurdles faced by Digital Freight Brokers
The digital freight brokers are growing in the market & reshaping the entire trucking industry. But these players have their own set of challenges to meet. Few hurdles being faced by them in their roadmap to success are:
- Slow technology adoption among truck drivers, major stakeholder of the industry.
- Local peculiarities like intermediaries who have deeply entrenched relationships with shippers and transporters make it tough to scale up in this heavily fragmented market.
- Indemnity related issues and collusive malpractices within organizations and at octroi/toll nakas.
The existing players can focus on these challenges in order to scale well in their businesses.
Is digitalization the future of trucking sector in India?
The online freight penetration is expected to rise in the future due to the rise in internet penetration, better services being provided to both shippers & carriers, enhanced efficiency & better utilization of trucks and the ecosystem approach being followed by digital freight brokers. With home grown startups, global companies like Lalamove, Gogovan and Ezyhaul have started to expand their operations into the market. They will continue to provide competition to domestic startups. It is expected that long haul movements will continue to dominate the market due to the rise in the distribution needs across the country by major industries. Finally, the ability of both traditional trucking and trucking-tech companies to scale and to operate profitably will be determined in part by the quality of road infrastructure and legislations surrounding it.
Key Segments Covered:-
By Confinement
Intercity
Intracity
By Carrier Options
FTL
PTL
LTL
By Type of Operating Model
Spot Based Model
Load Board Model
Contract Based Model
By Type of Revenue Model
Commission Based Model
Subscription Based Model
By Type of End Users
B2B
B2C
Intercity By Type of End Users (on the basis of number of bookings)
FMCG
Petrochemicals & Paints
Metals
Others
Intracity By Type of End Users (on the basis of number of bookings)
Logistics
FMCG
Furniture
Others
Intracity By Type of Trucks
Below or equal to 5ft
Between 6-8ft
Above 8ft
Intercity By Type of Trucks
3-12 MT
13-28 MT
Above 28 MT
Key Target Audience:-
Truck Aggregator Companies
Logistics Companies
PE and Venture Capitalist Firms
Transport Contractors
Logistics Association
Time Period Captured in the Report:-
Historical Period: FY’2016-FY’2020P
Forecast Period: FY’2020P-FY’2025F
Companies Covered in Report:-
Blackbuck
Porter
Let’s Transport
Truckola
Rivigo
Blowhorn
Trukky
Lalamove
Lynk
Portflip
EzyHaul
Trukky
Lobb
Key Topics Covered in the Report:-
Evolution of Truck Aggregators
Demand Analysis of Digital Freight Brokerage Companies
Demand & Supply Ecosystem
India Digital Freight Brokerage Market Size
Funding wave in India Digital Freight Brokerage Market
India Digital Freight Brokerage Market Segmentation
Competitive Landscape of India Digital Freight Brokerage Market
SWOT Analysis of India Digital Freight Brokerage Market
Trends & Developments in India Digital Freight Brokerage Market
Challenges Faced by India Digital Freight Brokerage Market
Interview of Founders of Porter, Trucksuvidha & Let’s Transport; Pranav, Ishu Bansal & Sudarshan Ravi respectively on roadmap of India Truck Aggregator Industry
India Digital Freight Brokerage Industry Future Outlook to FY’ 2025
Recommendations for New Player Entry and Strategy for Existing Players
For More Information on the research report, refer to below link:-
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