![]() ![]() A well-optimised digital freight network can empower a truck operator to better utilise his assets, reducing the idle time by 40-50% and improving earnings by 20-30%. Impact of digitisationĭigitisation of trucking can have a profound impact on the individual, community and nation. The moment a customer realises your solution is available in their native tongue, and it is trustworthy and directly impacts the P&L, they are ready to embrace your product or app. Are we addressing the trust factor? Is our 24×7 service reliable? Can my customer reach out to my team even at 3 AM? And, finally, is my product available in their language of convenience? He will try only those products that make his unit economics improve directly.Īs we design products for such Bharat users, we need to constantly ask if we are solving the right problem for them and improving their business. This customer is struggling daily to make his ends meet. A fleet operator, unlike your urban consumer, is not willing to invest in a product or service for the sake of convenience. ![]() Similarly, you have to build a highly customised digital product for a trucker. India has truckers residing across six lakhs villages, and we need more concerted efforts to get to them. BlackBuck has deployed resources across 1.5 lakh+ villages in India to build awareness, educate, and handhold truckers and help them develop trust in digital transactions. In trucking, digitisation at scale can only be done with a solid distribution network. However, digitising a trucker-sitting in a remote village in India and conducting his business in the most traditional way possible for decades-is easier said than done and involves investing time and resources. In fact, they are not part of the formal economy and don’t even remotely participate in the digital economy.Ĭoncerted efforts must go into unlocking the efficiencies of this segment - helping small fleet owners better utilise fleet, achieve optimal diesel consumption, reduce carbon footprint, better manage payments, increase revenues, and most importantly, uplift their overall socio-economic status by bringing dignity and pride to the overall trucking community.ĭigitisation of small fleet operators is the need of the hour for India. Small fleet operators in India are largely uneducated and ignored. The answer to these fundamental questions will majorly decide the path to making India’s logistics efficient. To streamline India’s $300 billion logistics industry, we need to get down to the brass tacks and narrow our lens to a truck operator’s demography, including their ownership, efficiency, how they get a load, the number of days they drive in a month and manage their operations. The ability to manage a truck using efficient methods is non-existent. It involves buying a truck at a high-interest rate (between 40-60% from local moneylenders), hiring drivers, tracking the trucks, and managing payment leakages for fuel or tolls. ![]() High operating costs: Truck operations come at a high cost for a small fleet operator. So, how do we find a better way to help a truck operator get better realisation in his business? Typically, truckers lose 15-20% of their earnings to these intermediaries before the final payment comes through. It takes one to three days to get a load, and a lot of trucks end up running empty on roads with no return loads.ĭependency on intermediaries: There are at least 2.5 intermediaries between a truck operator and a shipper while making a transaction. However, 100% utilisation of assets is practically impossible in this segment primarily because finding a load is difficult. Poor asset utilisation: Most trucks, on average, run 15-16 days of the 30 billable days. However, the trucking industry is riddled with inefficiencies. The small fleet operators who own less than five trucks drive 85% of India’s logistics needs, becoming the backbone and crucial player in the logistics economy. The Indian logistics economy is dominated by road freight. While it is welcoming to see proactive dialogues around policy changes and infrastructure upgrades, the problems of high cost and highly unreliable logistics in the country are deep-rooted in the inefficiencies of the trucking ecosystem. The Indian government will announce the much-awaited National Logistics Policy this week, which will enable India to be on par with countries like the US and UK when it comes to logistics costs.Īt an estimated 14% of GDP, India’s logistics cost is particularly higher than the rest of the world. Although the backbone and crucial player in the logistics economy, the trucking industry is riddled with inefficiencies. In India, small fleet operators fulfil 85% of India’s logistics needs. ![]()
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