Road-Freight Tech Venture 'Truxapp' Projects $1 Billion in Revenues by 2022
Truxapp, a technology-enabled trucking and logistics provider, which has been working since 2015, is rapidly establishing itself as a market leader in the road freight and trucking sector. Truxapp has aggregated over 350,000 trucks and over 200 corporate clients as a group with revenue projections of US$1 billion by 2022, with over 40% of the revenues coming from the GCC alone.
Entering the UAE market in 2017 to deliver seamless solutions to the logistics industry as demand grows at an exponential rate. Truxapp already boasts 20,000 trucks listed in the GCC and growing, along with a steady list of Blue Chip Clients across various sectors.
According to a report by Frost & Sullivan, a leading global strategy consulting company, Saudi Arabia and UAE are the largest logistics markets in the GCC, with an estimated market size of US$ 55 billion and US$ 30 billion respectively. In addition, the addressable road transportation opportunity size across the GCC is US$ 24 billion, and this is where technology in transportation logistics is becoming increasingly relevant.
With its highly advanced, user friendly, proprietary and customisable technology infrastructure, Truxapp is addressing the inadequate logistics and transportation models to support companies become more agile and responsive toward their customers’ needs. As the UAE transitions towards a more economically diverse, knowledge-based economy, away from oil-related sectors, trade and freight volumes are expected to increase to match demand across all trade sectors, under a technology driven shared resources solution.
Naseer Ahmed, Co-Founder and CEO for Truxapp – International, said: “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. 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.”
Ahmed further explained that the UAE has a growing population with increased consumption and high-internet penetration rates, the nation is witnessing an expanding e-commerce sector, expected to reach US$ 10 billion in the next two to three years. This is in addition to the overall increase in merchandise trade.
“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,” added 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.”
Currently the logistics and freight transportation industry is highly fragmented with several players, low productivity, minimal regulation, high costs, and limited value-added services. In fact, Frost & Sullivan’s report mentions that in Dubai alone it is estimated that productivity levels of international logistics companies are 10-15 percent lower as compared to their global operations because of minimal technology adaptation.
Technology can conveniently transform these 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, utilization 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, empowers supply chain managers to make decisions based on data of seasonality, replenishment cycles and other logistics factors.
Manmohan Agarwal, Founder of Truxapp, said: “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 & transporters. 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, which include; Ports, Import-Export, Retail & Distribution, Manufacturing, SME’s & large industries, in the sectors such as Automobile, Building Materials, Cement, FMCG, Iron & Steel, Oil & Gas, Pharma and 3PL MNC’s to name a few.”
With an experienced team, with diverse backgrounds including road freight and logistics, coupled with strong technology transportation solutions, Truxapp is the ideal partner to transform road freight to meet the aspirations for smart, digitally-enabled cities across the region that are also sustainable, efficient and with a reduced carbon footprint.
Truxapp first started in 2015 in India, with the aim to revolutionize the Trucking Industry and to change the landscape of Road Freight System. It set up its first International operations in the UAE in Q1 2017.
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