Primarily, the freight business model has just one goal; a marketplace where drivers, owners, operators, and customers can connect. It is not a simple concept to implement and execute. It requires more than just a pretty user interface. Undoubtedly, an in-depth research on the fleet operations and shipping processes was carried out in the real world. Technology is in its advancement phase and needs to be fully embraced to reap the benefits. Bit-by-bit adoption of technology will be of little or no use, and will not result in an “Uberized” marketplace for freight business owners.
To create value and pursue the road to glory in the on-demand freight space, it is imperative to consider various aspects as well as takeaways of the modern-day trucking business, such as –
Direct Interaction, No Intermediaries
In this industry, the middleman is the mastermind. He is the one responsible for managing the bookings by taking a considerable margin. Therefore, the on-demand business model for freight should be innovative enough to capitalize on more bookings to truckers and in eliminating anyone in the middle. This also helps in saving money on additional charges paid to the one that mediates. One essential aspect of this model can be what truckers wish for, and the only wish truckers have is the choice of routes, which will take them back to base or home after a trip or a couple of trips.
Payment Integration
Truckers handle their cash themselves over small hauls. Here, you can try to convince the truckers to adopt digital payment methods by showing them how easy and comfortable their lives would become if they start using it. The on-demand business model requires customer engagement at a high rate, and not involving the digital payment methods would not lead to that, exhibiting the business as outdated.
Onboarding Needs
The onboarding of freight service providers would totally depend on physical verification. This will ensure that the uniformity is maintained among all the service providers. Not everyone can take this huge responsibility. Since the responsibility is crucial, the risk is high as well. Screening of personnel and inspection of vehicles are necessary steps to ensure the standards are met and the freight service provider is ready to be on-board. Apart from ascertaining the capacity and the condition of the trucks, the screening of drivers and vetting of records is also important before onboarding the freight service provider.
Load Matching
Load matching capabilities are very important for the platform that you are building. Trucking depends on the amount of load it has, the path it chooses to deliver the load and the distance it has to cover. The platform should be strong on the programming end to deliver the exact detail of the load and capacity. Customers need to get the best rates to use the platform. Convincing a trucker to embrace an on-demand freight transportation model can be achieved only by offering a better opportunity for profits and quick returns. The expectations can only be met if the loads are matched with the capacity.
User app and driver app
Just like Uber, you need two mobile applications; one for the customers and one for the truckers. A clean, user-friendly, and well-optimized platform will keep the clutter out of the interface. With two different apps for drivers and users, it will make the job easier and less complicated. Customers will share their requirement details, which will then be forwarded to the truckers who can accept or reject the request as per their availability and convenience. The users and drivers using the on-demand app can communicate with each other until the transaction concludes.
Quick documentation
Documentation has always been an issue for the traditional truckers. This issue should also be solved by the application. A customer should get a pop up to upload the necessary documents to process and verify the load request by the driver. Moreover, your application should have a chat option as well for the customer and the trucker to chat with each other in order to avoid any conflict and clear doubts about the documentation.
Integrating telematics and geolocation
The vehicles should be equipped with telematics to ensure the real-time shipment tracking in order to calculate the ETA. It also allows the customers to know which route was taken by the trucker. For drivers, the real-time updates will help in sharing traffic updates and information about congestion on roads with the customers to understand the situation better. The real-time monitoring does not only help in tracking the shipment location but also allows one more capability enhanced by this, which is push notifications and delivery updates.
If you have an on-demand startup idea to reinvent the freight business, we are all ears and ready to help you develop a solution as per your needs.
