Viewing offline content

Limited functionality available

Dismiss
Deloitte UK
  • Services

    Highlights

    • Major Programmes

      Connecting people and technology to anticipate and respond to ever-changing conditions, and solve for society’s greatest challenges.

    • Deloitte Ventures

      Connecting our clients to emerging start-ups, leading technology players and a whole raft of new Deloitte talent.

    • Towards net zero together

      Discover the people leading the change and what could be possible for your business.

    • Audit & Assurance

      • Audit
      • Audit - IASPlus
      • Assurance
    • Consulting

      • Core Business Operations
      • Customer and Marketing
      • Enterprise Technology & Performance
      • Human Capital
      • Strategy, Analytics and M&A
    • Financial Advisory

      • Mergers & Acquisitions
      • Performance Improvement
    • Legal

      • Legal Advisory
      • Legal Managed Services
      • Legal Management Consulting
    • Deloitte Private

      • Family Enterprises
      • Private Equity
      • Emerging Growth
    • Risk Advisory

      • Accounting and Internal Controls
      • Cyber and Strategic Risk
      • Regulatory and Legal
    • Tax

      • Global Business Tax Services
      • Indirect Tax
      • Global Employer Services
  • Industries

    Highlights

    • Ecosystems & Alliances

      An engine to embrace and harness disruptive change

    • Resilience Reimagined

      Resilient organisations thrive before, during and after adversity. How will you become more resilient?

    • Consumer

      • Automotive
      • Consumer Products
      • Retail, Wholesale & Distribution
      • Transportation, Hospitality & Services
    • Energy, Resources & Industrials

      • Industrial Products & Construction
      • Mining & Metals
      • Energy & Chemicals
      • Power, Utilities & Renewables
      • Future of Energy
    • Financial Services

      • Banking
      • Capital Markets
      • Insurance
      • Investment Management
      • Real Estate
      • FinTech & Alternative Finance
    • Government & Public Services

      • Health & Human Services
      • Defence, Security & Justice
      • Central Government
      • Infrastructure, Transport and Regional Government
    • Life Sciences & Health Care

      • Health Care
      • Life Sciences
    • Technology, Media & Telecommunications

      • Telecommunications, Media & Entertainment
      • Technology
  • Insights

    Deloitte Insights

    Highlights

    • Deloitte Insights Magazine

      Explore the latest issue now

    • Deloitte Insights app

      Go straight to smart with daily updates on your mobile device

    • Weekly economic update

      See what's happening this week and the impact on your business

    • Strategy

      • Business Strategy & Growth
      • Digital Transformation
      • Governance & Board
      • Innovation
      • Marketing & Sales
      • Private Enterprise
    • Economy & Society

      • Economy
      • Environmental, Social, & Governance
      • Health Equity
      • Trust
      • Mobility
    • Organization

      • Operations
      • Finance & Tax
      • Risk & Regulation
      • Supply Chain
      • Smart Manufacturing
    • People

      • Leadership
      • Talent & Work
      • Diversity, Equity, & Inclusion
    • Technology

      • Data & Analytics
      • Emerging Technologies
      • Technology Management
    • Industries

      • Consumer
      • Energy, Resources, & Industrials
      • Financial Services
      • Government & Public Services
      • Life Sciences & Health Care
      • Technology, Media, & Telecommunications
    • Spotlight

      • Deloitte Insights Magazine
      • Press Room Podcasts
      • Weekly Economic Update
      • COVID-19
      • Resilience
      • Top 10 reading guide
  • Careers

    Highlights

    • Hear from our people

      At Deloitte, our people are at the heart of what we do. Discover their stories to find out more about Life at Deloitte.

    • Careers Home

  • UK-EN Location: United Kingdom-English  
  • UK-EN Location: United Kingdom-English  
    • Dashboard
    • Saved Items
    • Content feed
    • Profile/Interests
    • Account settings

Welcome back

Still not a member? Join My Deloitte

The road logistics industry in India

by Harsh Kapoor, Avinash Nayak
  • Save for later
  • Download
  • Share
    • Share on Facebook
    • Share on Twitter
    • Share on Linkedin
    • Share by email
Deloitte Insights
  • Strategy
    Strategy
    Strategy
    • Business Strategy & Growth
    • Digital Transformation
    • Governance & Board
    • Innovation
    • Marketing & Sales
    • Private Enterprise
  • Economy & Society
    Economy & Society
    Economy & Society
    • Economy
    • Environmental, Social, & Governance
    • Health Equity
    • Trust
    • Mobility
  • Organization
    Organization
    Organization
    • Operations
    • Finance & Tax
    • Risk & Regulation
    • Supply Chain
    • Smart Manufacturing
  • People
    People
    People
    • Leadership
    • Talent & Work
    • Diversity, Equity, & Inclusion
  • Technology
    Technology
    Technology
    • Data & Analytics
    • Emerging Technologies
    • Technology Management
  • Industries
    Industries
    Industries
    • Consumer
    • Energy, Resources, & Industrials
    • Financial Services
    • Government & Public Services
    • Life Sciences & Health Care
    • Tech, Media, & Telecom
  • Spotlight
    Spotlight
    Spotlight
    • Deloitte Insights Magazine
    • Press Room Podcasts
    • Weekly Economic Update
    • COVID-19
    • Resilience
    • Top 10 reading guide
    • UK-EN Location: United Kingdom-English  
      • Dashboard
      • Saved Items
      • Content feed
      • Profile/Interests
      • Account settings
    3 minute read 07 February 2020

    The road logistics industry in India On the cusp of transformation

    3 minute read 07 February 2020
    • Harsh Kapoor United States
    • Avinash Nayak United States
    • Save for later
    • Download
    • Share
      • Share on Facebook
      • Share on Twitter
      • Share on Linkedin
      • Share by email
    • Enter startups and new ecosystems
    • Innovation to the rescue

    Emerging tech-driven disruption paves the way to value-creation in the Indian road logistics ecosystem. Incumbents will need to accelerate innovation to remain relevant.

    India’s logistics market is worth as much as US$ 160 billion, and road logistics is a majority player in it.1 Yet most road logistics participants—truckers, transporters, retailers and mechanics—complain of an inherent trust deficit, possibly because of the opaque network of middlemen and small operators. As a result, the industry faces acute inefficiencies—fragmented ownership, demand and supply mismatch, low utilization, low pricing, low returns and low wages. High broker commissions and a lack of transparency don’t help either. That said, India’s road logistics industry seems ripe for consolidation through digital transformation.

    Enter startups and new ecosystems

    Learn more

    Explore the Future of mobility collection

    In a hurry? Read a brief version from Deloitte Review, issue 27

    Create a custom PDF or download the issue

    Learn about Deloitte’s services

    Go straight to smart. Get the Deloitte Insights app

     

    A host of road logistics startups are taking on the challenge of managing inefficiencies by trying to organise this largely unorganised sector. They’re doing so by leveraging technology—and data. In the process, they’re carving new channels, meeting existing needs and uncovering new opportunities. Investors too are paying attention, investing across three key areas—long-haul transport, short-haul delivery and logistics software solutions. In 2018 alone, freight trucking startups raised as much as US$ 140 million, a big leap from a mere US$ 2 million in 2014.2

    Winning in road logistics is, however, a complex task—demand for a particular truck is not fungible, and truckers do not get paid fully on completion of a trip, which exposes them to working capital risk. Our analysis reveals the emergence of three models that address core business problems. Interestingly, all three hinge on a mix of asset ownership and working capital risk (figure 1).

    While the startups are solving problems for the core business via digital freight-matching at the right price, they are also opening new channels. For example, value-added service platforms are emerging either as standalones or as part of the freight-matching marketplaces. They have access to data that gives deep insights on vehicle use, maintenance patterns and even driver behaviour. All this has given rise to new ecosystems, which will likely allow truckers more freedom to operate on new routes and emerge as a one-stop source for all their needs.

    Innovation to the rescue

    As technology opens new pathways to success, incumbents are left exposed to the risk of annihilation. They’ve to scale on the digital maturity curve by building or/and buying technology that works for them. However, preparing for innovation requires a different approach; piecemeal improvements to existing technology are not lasting solutions. Our research reveals that successful innovators use multiple levers across the value chain to arrive at compelling propositions. Several innovation frameworks can be leveraged by incumbents to understand where they stand in terms of commitment to innovation.

    We recommend incumbent companies should:

    • foster a portfolio mindset for innovation
    • include investments that proactively create value in growth areas that are new to them
    • use multiple types of innovation (not just new products) to create new experiences and businesses.

    Read the full report A time of reckoning: Road logistics in India that offers a deeper dive into the industry’s woes, how startups are creating new ecosystems and what incumbents can do to remain relevant in their new reality.

    Acknowledgments

    Cover artwork by: Kevin Weier

    Endnotes
      1. India’s logistics industry to be worth $215 bn by 2020–21: CARE Ratings, Business Standard, 20 October 2018. See also: https://www.business-standard.com/article/companies/india-s-logistics-industry-to-be-worth-215-bn-by-2020-21-care-ratings-118101700898_1.html View in article

      2. Tracxn home page, accessed 18 December 2019. See also: https://tracxn.com/ View in article

    Show moreShow less

    Topics in this article

    Innovation , Technology , India , Future of Mobility , Digital Transformation , Asia Pacific (APAC)

    Innovation — Doblin, a Deloitte business

    Doblin, Deloitte’s innovation consulting practice, is focused on solving complex problems through a rigorous, interdisciplinary approach. The people at Doblin bring together diverse points of view to discover new opportunities and create real change. Our close-knit team taps into deep industry experience and innovation acumen to collaboratively tackle complex problems. Working closely with clients, we ignite effective transformation rooted in real human needs and ambitious business goals.

    Learn more
    Get in touch
    Contact
    • Harsh Kapoor
    • Director
    • DTTILLP
    • harshkapoor@deloitte.com
    • +91 99996 00035

    Download Subscribe

    Related content

    img Trending

    Who owns the road? The IoT-connected car of today—and tomorrow

    Article 7 years ago
    img Trending

    3D opportunity for the automotive industry

    Article 8 years ago
    img Trending

    Picturing how advanced technologies are reshaping mobility

    Article 4 years ago

    More in Future of Mobility

    • Who’s going to pay for the future of mobility? Article3 years ago
    • Electrifying the global automotive industry Article4 years ago
    • Creating IoT ecosystems in transportation Article3 years ago
    • Technological barriers to the elevated future of mobility Article3 years ago
    • The elevated future of mobility Article3 years ago
    • How are global shippers evolving to meet tomorrow’s demand? Article3 years ago
    Harsh Kapoor

    Harsh Kapoor

    Harsh Kapoor leads Doblin, the innovation practice of Deloitte, in India. Kapoor has worked with clients from various industries, including oil and gas, automotive, consumer goods, life sciences and industrial products. His work has been primarily focused on helping clients develop compelling value propositions to drive exponential growth in existing and/or new business areas. Kapoor has an MBA from the London Business School and a bachelor’s degree from the University of Notre Dame, USA.

    • harshkapoor@deloitte.com
    Avinash Nayak

    Avinash Nayak

    Avinash Nayak is a part of Deloitte’s strategy and innovation practice and is based in Mumbai. He has eight years of experience in advising clients across markets in Asia and North America. His focus has been on helping clients define and achieve their growth and innovation priorities. Nayak has worked with clients across various industries, including automotive, consumer goods, health care and chemicals. Nayak has an MBA from IIM Ahmedabad, and a bachelor’s in chemical engineering from ICT, Mumbai.

    • avnayak@deloitte.com

    Share article highlights

    See something interesting? Simply select text and choose how to share it:

    Email a customized link that shows your highlighted text.
    Copy a customized link that shows your highlighted text.
    Copy your highlighted text.

    The road logistics industry in India has been saved

    The road logistics industry in India has been removed

    An Article Titled The road logistics industry in India already exists in Saved items

    Invalid special characters found 
    Forgot password

    To stay logged in, change your functional cookie settings.

    OR

    Social login not available on Microsoft Edge browser at this time.

    Connect Accounts

    Connect your social accounts

    This is the first time you have logged in with a social network.

    You have previously logged in with a different account. To link your accounts, please re-authenticate.

    Log in with an existing social network:

    To connect with your existing account, please enter your password:

    OR

    Log in with an existing site account:

    To connect with your existing account, please enter your password:

    Forgot password

    Subscribe

    to receive more business insights, analysis, and perspectives from Deloitte Insights
    ✓ Link copied to clipboard
    • Contact us
    • Careers at Deloitte
    • Submit RFP
    Follow Deloitte Insights:
    Global office directory Office locations
    UK-EN Location: United Kingdom-English  
    About Deloitte
    • Home
    • Press releases
    • Newsroom
    • Deloitte Insights
    • Global Office Directory
    • Office locator
    • Contact us
    • Submit RFP
    Services
    • Audit & Assurance
    • Consulting
    • Financial Advisory
    • Legal
    • Deloitte Private
    • Risk Advisory
    • Tax
    Industries
    • Consumer
    • Energy, Resources & Industrials
    • Financial Services
    • Government & Public Services
    • Life Sciences & Health Care
    • Technology, Media & Telecommunications
    Careers
    • Careers Home
    • About Deloitte
    • About Deloitte UK
    • Accessibility statement
    • Cookies
    • Health and Safety
    • Modern Slavery Act Statement
    • Privacy statement
    • Regulators & Provision of Services Regulations
    • Deloitte LLP Subprocessors
    • Supplier Standard Terms & Conditions
    • Terms of Use

    © 2023. See Terms of Use for more information.

     

    Deloitte LLP is the United Kingdom affiliate of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”). DTTL and each of its member firms are legally separate and independent entities. DTTL and Deloitte NSE LLP do not provide services to clients. Please see About Deloitte to learn more about our global network of member firms.

     

    Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom. A list of members of Deloitte LLP is available at Companies House.