5 ways Why Logistics Start-ups Should bring about Uberization

Uber has disrupted the cab marketplace. It has changed the way people hail cabs. Technology has been a game-changer across industries, and the transportation industry is no different. Owing to the boom in e-commerce, there has been an urgent demand for better utilization of trucks. Some of the barriers that impede the growth of the logistics industry are the lack of using available trucks optimally and charging arbitrarily. Besides, as tracking routes taken by the trucks are not possible, they have no accountability to their logistics companies.

The uberization of the transportation industry has led to the maximum usage of trucks and reduced costs. According to an Accenture report, uberization of the logistics industry has successfully brought down the costs by an estimated 10 – 20%, and 15% during the last mile delivery. Uberization ensures effective revenue allocation and effective use of available assets.

Smart start-ups in the logistics industry are equipped with machine-learning algorithms, hand-held GPS devices and cloud computing for seamless freight transportation. Truck booking apps have changed the way the logistics industry functions today, just as the Uber app has transformed the taxi industry.

Here are 5 ways why logistics start-ups should opt for uberization:

1. Track trucks available in the vicinity

Truck booking, enabled with GPS, detect the location from where freight needs to be transported. This prevents the prevalent industry-specific discrepancy of shortage of trucks for freight transportation despite trucks being available within a short distance of the pick-up location.

2. Connect customers with the mode of transport

After detecting available trucks for freight transportation assignments, it matches the nearest truck with the pick-up location. Hence, automation makes life easier for organizations that require freight transportation services. These truck booking apps also offer a rating system for both the trucks drivers and clients of the logistics company. This further promotes quality of service, establishing and strengthening the client-business relationship. This leads to the fragmentation of the logistics industry enabling optimal utilisation of available trucks.

3. Track route

Truck booking apps assure complete transparency in freight transportation solutions by showing the route to be taken by the truck. Cloud-enabled automation enables the mobile apps to recommend the shortest and most secure route to the destination. The truck driver, the 3PL firm that the truck belongs to, as well as the organization whose freight is being transported can track this route. This ensures complete transparency in the transportation system and makes the drivers accountable for quick and safe delivery.

4. Estimated time of travel

Truck booking apps offer further transparency in timely delivery of freight by informing the client about the estimated delivery date and time.

5. Online payments

After essential information about the addresses for pick-up and destination has been added in the truck booking app, along with the details of the freight, these apps generate the bill online. These apps enable digital payments through Debit and Credit Cards, Net Banking and digital wallets. Analyzing the recommended route and considering the toll changes that need to be paid along the way, the total bill amount includes the toll charges too. Online payment prevents truck drivers from charging exorbitantly for freight transportation services.

Author’s Bio: Sharon Fernandez is a senior technical writer for Trip In. She loves traveling, singing and is a big movies buff. She has an experience of 5+ years ranging from Logistics, Supply Chain Management and Manufacturing.

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