India's road network is the second-largest in the world only after the USA, having approximately 4.7 million kilometers of roads which have around 8 million transportation vehicles traveling on their path at any given point. Road transportation accounts for about 6% of India’s GDP. Still, these industries such as Mumbai and Pune transport services are affected by various inefficient services, corruption at many levels, accidents and poor services. Also, the fact that, all the business run entirely on trust which most companies have a terrible record of keeping when it comes to providing new technological facilities like package tracking etc.
Part of the problem in the current scenario lies in the ownership of trucks in India. Three-fourth of all trucks in India are owned by the owners with just 1-5 trucks which accounts for staggering management problem. One cannot expect a lot in terms of services offered by the when so many players are competing only on the price point. This cutthroat nature of the competition eventually results in the drivers being underpaid. Drivers who are quite unskilled are given the responsibility and are put under long shifts and demanding delivery schedules. The conditions offered by the Indian Highways are not that safe either and we probably cannot count them as one of the safest in the world. As a result, even those people who are looking for some or the other kind employment rarely consider being a freight carrier as a job option, knowing that with operators like Uber entering the Indian market, driving a cab brings them more money and is the safer and better option.
According to a Business Today report, cab drivers are earning thrice as much as their counterparts engaged in the freight carrier business. There was a time when India had an oversupply of truck drivers the truck transport services in Pune. However, post-economic liberalization in the early 90’s, the shortage of the truck drivers has been increasing ever since.
According to the legitimate estimate, around 2.3 million vehicles (27% of total transport vehicles) remain idle every single day just because no one is ready to drive them. If the shortage continues its uptrend, it will reach an unprecedented 50 percent by 2022. At present, all this translates into an estimated annual economic loss of around Rs. 4,20,000.
However, things are undergoing a massive change in the transport services in Pune with investors backing technology-driven start-ups.
Emergence of online market
The market is getting flooded by many tech start-ups and online solutions such as Logistics Junctions owing to the tremendous technological advancement that has been evident in all the fields. This technological advancement also introduced itself into the Pune transport corporations and freight carrier business with various solutions offering services like live package tracking on GPS making it easier to track and find every move.
Following are some of their offerings and the overview of the facilities they are providing:
One of the most important features they are offering is the facility of Driver Relay
Driver Relay: Every driver is changed by the transport service provider in Pune in every few kilometers to allow them to return to their homes on the same day.
Technology offerings include:
For long distance inter-state routes, Web and Mobile Apps for higher efficiency and transparency are coming into the picture giving the following advantages.
All these and various innumerable start-ups such as Logistics Junctions are using blends of technologies to bring some sense into the unorganized trucking businesses in India.
The top advantages offered to them are:
Difference between earlier and emerging market
One of the most important things is that truck trasnport services in Pune muct create better conditions for truck drivers. Drivers who seek to not travel in the long run at a longer distance will be provided with the jobs similar to that of the Uber driver, having an opportunity to return home at the end of the day.
In terms of service owners, this will provide them with the assurance that the drivers are not over exerted and therefore the risk of accidents due to human errors will be reduced for sure.
In terms of the customers, the most important factor is that they will be assured of their products safety and can easily keep track of it.
It is evident that the trucking and logistics space in India is attracting new entries operating on truck aggregation and marketplace models. The technologies mentioned above are helping them create differentiation with better efficiency and management capabilities.
On the greater good, the best way to transport or hire trucks would be to use the new online solutions which are technologically helpful and are providing way better facilities than its counterpart solution which is currently in the market.
Giving a better-managed solution, managing the organization at every level and giving benefits to all its consumers involved, make it the preferable and perfect solution to be used on many levels.