UAE road-freight tech venture TRUXAPP projects $1bn in revenues by 2022
Truxapp, a technology-enabled trucking and logistics provider, established in 2015, is rapidly becoming a market leader in the road freight and trucking sector with a projected US $1-billion in revenue by 2022.
Truxapp has aggregated over 350,000 trucks and over 200 corporate clients as a group during the last few years, 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, Saudi Arabia and the 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 $24 billion, and this is where technology in transportation logistics is becoming increasingly relevant.
With its highly advanced, user friendly, proprietary and customisable technology infrastructure, Truxapp is addressing the inadequate logistics and transportation models to make LSPs more agile and responsive toward their customers’ needs.
As the UAE transitions towards a more economically diverse, knowledge-based economy, away from oil-related sectors, trade and freight volumes are expected to increase to match demand across all trade sectors, under a technology driven shared resources solution, according to Naseer Ahmed, co-founder and CEO for Truxapp.
“While several industries are becoming digitally enabled, the logistics sector has largely been neglected, or not given the necessary attention, because of its complexities as a B2B service,” he explains.
“Unlike technologies behind B2C ride-sharing companies, road freight has many more variables and a complete knowledge of the logistics sector is critical when developing a platform like Truxapp. Once appropriately established, digitally-enabled trucking services can immensely support all industries as well as the drive toward seamless Smart Cities. Currently logistics is lagging and this is affecting growth in many other sectors that depend on the efficient movement of goods .”
Ahmed further explained that the UAE has a growing population with increased consumption and high-internet penetration rates, the nation is witnessing an expanding e-commerce sector, expected to reach US$ 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,” says Ahmed. “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.”
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, adds: “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.”