India’s road logistics sector is crippled with various challenges and bottlenecks. Thus, this sector is grabbing the eyeballs of startups who are willing to work in this sector, says a report published by Deloitte.
The sector is undergoing challenges such as fragmentation in the ecosystem and information asymmetry due to multiple intermediaries. These challenges lead to low asset utilisation, the report said.
According to the report titled ‘A time of reckoning: Road logistics in India’, the budding entrepreneurs are exploring new channels while meeting both existing and new needs of the historically under-served truck owner community.
As per the report, further changes happening in the macro-environment around data affordability, unified tax regime, and the emergence of digital payments have pulled the startups towards the sector.
“In addition to providing loads to truckers, start-ups in this space have been able to add value-added products and services, such as fuel cards, fastags, and insurance. These start-ups are laying the building blocks of an ecosystem,” the report added.
Harsh Kapoor, Director, Deloitte India, said making a remark on the report, the 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.
