October 16, 2019: A host of new start-ups are disrupting the ecosystem of road logistics by organising the unorganised, historically under-served truck-owner community and meeting their existing and new needs, says the new Deloitte report.
The report’s objective was to understand how any enterprise interested in this sector could have a positive impact on the lives of owner-operators.
According to the report, India’s road logistics sector is plagued by quite a few challenges, such as fragmentation in the ecosystem and information asymmetry due to multiple intermediaries that leads to low asset utilisation (as finding adequate loads can be difficult for a trucker).
This is further compounded by limited digital capabilities, which could ensure a healthy flow of information.
Harsh Kapoor, Director, Deloitte India, said “Our research has shown that key customer needs (of “loads and loans”) are starting to be met interestingly by out-of-industry players, typically start-ups.
As such, traditional actors in this ecosystem, such as CV OEMs or fuel players, have an opportunity to invest in or collaborate with some fast-emerging businesses/platforms, to build more brand relevance and market traction.”
