After making an impact in the passenger transportation market, Uber-type smartphone-based aggregator platforms are set to make a similar mark in the freight market, connecting truckers with customers. Chennai-based start-up GoGo Trucks and Delhi-based Truckmandi are a few such players in the Indian market.

Based on a study in the North American market, research firm Frost and Sullivan has stated that by 2025, 16 per cent of third party logistics business will be enabled by mobile platforms.

In effect, the mobile-based freight brokerage – connecting truck owners/fleet owners with customers – is expected to expand at a compound annual growth rate of 74.65 per cent and generate $26.4 billion in revenue in 2025, says the study.

Mobile-based freight brokerage is in a nascent stage, with a penetration rate of lower than one per cent (in 2014) and approximately $100 million in total revenues, said the study.

In North America, several innovative firms, such as Cargomatic, Transfix, Coyote, and Keychain Logistics are pioneering the development of mobile-based freight brokerage.

comment COMMENT NOW