Truxapp says ‘Don’t compare it to the other trucking Ubers’

According to Truxapp, technology can conveniently transform limitations for more robust and efficient freight transportation services in the entire region

Posted in Industry Updates


Why is the logistics market suddenly seeing an influx of Uber-style logistics aggregators in the market? You could argue that is how the growth of new technology works. Someone creates a genuinely new idea, and then somebody else sees another use for it, and so on and so on. However recent research from Frost & Sullivan suggests that there are deep structural problems within the sector in the GCC, largely because a digitally driven evolution hasn’t yet taken place.

According to its survey on the industry, Frost & Sullivan has found that productivity levels of international logistics companies are 10-15% lower in the region compared to their global operations largely because of minimal technology adaptation. Throw in its assessment of the logistics and freight transportation industry in the GCC as one that is highly fragmented with “several players, low productivity, minimal regulation, high costs, and limited value-added service”, then you’ve got an industry that could be right for the picking.

The slew (slew-bers?) of precocious companies entering the market in the last year have pitched themselves as aggregators of truck supply serving one function: namely to join up a customer who needs something delivered with a company – or individual – that has the truck to deliver it. The appeal is obvious. As someone with goods to move you don’t need to own an expensive fleet that could always breakdown when you need it the most. And on the other side, a truck or fleet owner can tap into a hitherto unknown source of business, often without the need to fill out extensive tender documents or be left hanging around waiting for a call back.

A number of these companies have emerged in the market in recent months, including Truxapp, a company that has solid track record in India and one that is determined to differentiate itself from what is already looking like a crowded space.

“While several industries are becoming digitally enabled, the logistics sector has largely been neglected, or not given the necessary attention, because of its complexities as a B2B service. Unlike technologies behind B2C ride-sharing companies, road freight has many more variables and a complete knowledge of the logistics sector is critical when developing a platform like Truxapp,” explains Naseer Ahmed, co-founder and CEO for Truxapp – International. “Once appropriately established, digitally-enabled trucking services can immensely support all industries as well as the drive toward seamless Smart Cities. Currently, the logistics is lagging and this is affecting growth in many other sectors that depend on the efficient movements of goods.”

“Digital savvy and connected consumers expect faster, accurate deliveries and an optimal user experience which can make or break brand loyalty. These are some of the factors that will put a strain on companies reliant on logistics and transportation if they fail to rapidly adapt to changing market dynamics and meet customer expectations,” says Ahmed. “The Truxapp team comprises of professionals who have the knowledge and track record to deliver their expertise to businesses daily – managing the complexities of the logistics sector and supporting them to meet their customers’ expectations. The Truxapp team has specifically built the technology to address the pain points of the sector for clients and transporters alike and this is where we add substantial value.”

Truxapp is certainly ambitious. It wants to own 5% of the overall logistics market in the GCC by 2022 and if that is not enough to make you stop and think, consider this: since firing up operations in India in 2015 with its own propriety technology, it has amassed 350,000 trucks which are serving over 200 corporate clients. In less than a year in the GCC, it can already list 20,000 trucks for B2B deliveries. If it continues its rapid pace of expansion, Truxapp fully believes it will attain its goal of adding revenues of $400 million in the GCC to $1 billion globally by 2022.

To maintain its growth, it must ramp its presence even further if it is going to receive 40% of its revenue from the region in little under four years. COO Abhinav Chaudhary, says that Truxapp is offering a fully-realised technology solution for the logistics industry. He dismisses the idea that it should be viewed in the same way as other companies claiming to offer a similar service.

“The buzzword that the majority of these start-ups love to call themselves... disrupters, well," he pauses and sighs. "We want to call ourselves something very humble and that is stabilisers."

To Chaudhary, it is disruption of a different kind, such as economic pressure on the supply chain, that is generating change in the markets it is active in.

“From a stabilising perspective, the technology that we bring to the table for supply chain managers, recruitment managers and all the transportation experts is holistic. The majority of the guys that are trying to be the Ubers of transportation are only currently focusing on the demand side. Our technology is there to stabilise demand but also the supply side and what is happening to transporters, freelancers in various regions.”

Looking at the operational aspects of its services, Chaudhary says that client experience has been designed to ensure it is the same as using a single supplier. The aim, he adds, is to ensure that their business is no longer tied to the ongoing running costs of owning fleet or contracting third-party fleets.

“We are acting as a single transporter for any customer who is bound to have peaks and downs within their replenishment cycle. Instead of having the conventional wisdom within the logistics supply chain industry, they are going to get the lowest transport prices from us,” he says. “Secondly they are not going to have go to seven or eight suppliers because one transporter will now and then fill-up his capacity. So the stability for the customer is that Truxapp will be to meet whatever they need in terms of deliveries or vehicles.”

He continues: “At the same time, the transporters are not required to hunt from company to company to look for demand or suffer with delivery cycles of customers. So, again, we are a stabiliser for them.”

According to Truxapp, it provides a reliable and efficient platform for businesses such as retailers, wholesalers, distributors, exporters, importers, to large industries and SMEs that depend on logistics to provide their services. Truxapp is able to offer a raft of transportation services, not just general transportation but also heavy load hauling for the construction industry and cross-GCC logistics movements and international freight forwarding.

Through the Truxapp platform, businesses can access data, predict production and delivery schedules via customisable dashboards, “resulting in enhanced market reach and customer satisfaction,” it claims. The Truxapp dashboards show real-time data, various heat maps including scope of reverse haulage, automated documents and reports, utilisation and uptime index, employee and vehicle management, data analytics and flexible pricing. The technology also offers the management of human resources and freight insurance services.

In addition to its logistics-oriented technology, the company is also offering consultancy-style advice to its blue-chip clients helping them to understand the logistics aspects of their business. Chaudhary describes scenarios where again, Truxapp, helps manage the cash flow of its customers.

“We are working with them to improve their transport set-up. We are letting them know what would be an ideal solution for them,” he remarks. “Such as whether they should look at selling off their own vehicles in the long-term or looking a different handling services at their warehouses in terms of off-loading arrangements to building platforms or ramps or boogie movements. The solutions we are providing are not just transportation services where they book a truck and we send it to them.”

As the interview draws to a close, he pitches in with what he feels is a crucial difference between Truxapp and the other upstarts out there: “Our team isn’t just made up of IT guys who have built up an app and a web platform. We have guys from DHL and Aramex who have worked in procuring transportation.”

Switching to On-Demand
According to Truxapp, technology can conveniently transform limitations for more robust and efficient freight transportation services in the entire region through on-demand transportation and shared resources. Truxapp dashboards for clients showing real-time data, various heat maps including scope of reverse haulage, automated documents and reports, utilisation and uptime index, employee and vehicle management, data analytics and flexible pricing. The technology also offers, the management of human resources and freight insurance services. Furthermore, Truxapp’s machine learning algorithms for pricing and reverse haul, enables supply chain managers to make decisions based on data of seasonality, replenishment cycles and other logistics factors.

“Technology is key in building a successful service. From the start, we focused on developing our own technology for Truxapp, because it is something we could shape for our customers and transporters,” says Manmohan Agarwal, Founder of Truxapp. “While it was easier to adopt a technology, we did not want to be held back in a platform that drives us; rather, we wanted to be in the driver’s seat. Working with marque clients we have customised solutions for them to improve services and cater to their requirements – technology has to be approachable, in order to work for the diverse segments we operate with.”

Asset-light technology heavy weight
Truxapp describes itself as a B2B, asset light, technology–enabled logistics venture, redefining the road freight transport landscape. Truxapp uses cutting edge, in-house built technology that aggregates the market demand and supply on web and mobile apps with state of art algorithms for all stakeholders associated with commercial transportation. Truxapp’s technology addresses the existing problems in the logistics space and makes it more automated and data driven, pushing boundaries and creating the next generation transportation data science.

With several industries transforming to digital operation models, the road transport and trucking industry is no different. Truxapp provides visibility on movements within the trucking life-cycle events. This also includes ad-hoc selected trucks in the shortest duration, of any type from anywhere.

Truxapp’s proprietary technology simplifies the road freight life cycle, increases operational efficiencies and reduces costs for the end users. It addresses the inadequate logistics and transportation models to support companies become more agile and responsive toward their customers’ needs. This has enabled Truxapp to establish itself as the leading technology based aggregator of road transport and has started to create an eco-system where aggregated demand and supply work in tandem, building consistency, transparency and precision in the sector and has made business reliable, efficient and economical.

Truxapp, in a short period of time has on-board, a diverse portfolio of multi national and other leading companies in diverse sectors which include, port movements.

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