Internet-based business makes
entrepreneur’s life easier and, what’s more important for success, makes
customer’s’ life better. Online interaction substantially fastens communication
between customers and Acceleration of interaction is the key competitive advantage
in the transportation sphere, which all entrepreneurs strive to develop. And
Californian company Uber has made the most outstanding breakthrough in this
field. Their app enabled to reduce waiting time up to few minutes, for example,
in London it would take only 3 min to get a taxi on average. Their innovative
idea allowed to kill two birds with one stone: absence of central park and
distribution of drivers within the city allowed to reduce waiting time, and an
opportunity for any licensed driver to be connected to the system resulted in
high growth of drivers, which lead to cost reduction.
Uber’s success could be used not only in
the taxi sphere, the point is that such system when the Internet allows to
accelerate communication between customers and sellers, could be also
implemented in other services. Indeed, Uber launched new apps and created new
services such as delivery service UberRush and water taxi UberBoat in order to
diverse their business. Another one company that is using such system is American
start-up Convoy. At this stage the company is aimed at working by the principle
Business to business, i.e, to produce programm product, with will be used by
small businesses to, for example, deliver goods from the warehouse.
Can such company be effective in Russia,
what prospects and challenges will freight aggregator face in our country?
The system may function like this:
Logistic company, that has its own carpark, connects drivers to the aggregator
and at the same time it identifies not the driver but the vehicle with its
characteristics. Should the driver come to work, he activates the app which
means he’s ‘on line’, then he can receive orders. In the client’s app a person
sets the following options: location, destination, transport type (van,
refrigerator, cistern), freight descriptions, transportation company
Let’s explore the structure of the Russian
According to the agency ‘Autostat’, there
were 3,95 mln LVC-class trucks in 2015 that could be used for such purposes.
There are about 3,73 mln medium-sized and
small-sized trucks in Russia. Should we consider presented brands in these
classes, we can suggest that there are 41,5 % -1,5 mln – trucks weighing up to
10 tons (GAZ, ZIL, Mitsubishi, Hyundai, Isuzu), and the rest belongs to heavy
trucks weighing more than 10 tons.
So, in Russian there are almost 5,5 mln
vehicles, which is enough to satisfy client’s needs. But at the same time,
according to the statistics agency “AUTOSTAT”, in 2015 75% of trucks
were aged over 10 years and 40% of LCV were aged over 15 years.
Considerable aging of Russian truck park
won’t allow to apply Uber standards for drivers selection (foreign brand cars,
not older than 2006). At the same time they need to sift through defective
cars. For accomplishing this, they need to establish the assessment system by
using the obligatory polling for clients once they are done with transporting.
Once the basic rating base is formed, clients will be able to set the lowest
rating of the driver they would trust to carry their freight. Just like this
defective or dirty trucks will be tossed out.
The serious challenge is capturing the
market share, which could be achieved by the aggresive marketing techniques in
order to attract partners and clients. At the early stage the marketing
campaign will be targeted at individual carriers, then at uniting (acquisition)
small freight transportation companies, which constitutes 81,7% of freight
services market in 2015 according to FM Logistic.
automation processes involve literature fulfillment, automatic calculation of
the cost of transportation, the search for a customs broker, the inclusion of
insurance services. The introduction of such technologies should lead to an
increase in the efficiency of the freight forwarding company, increase
competition among freight forwarders, which will lead to increased demand. In
turn, the subsequent development can lead to the full automation of forwarding
activities and to the transition to full-scale aggregators of freight traffic.