The UBER For Trucks In Indonesia Is Here
The term ‘Uber’ is no longer just a brand describing by the American technological company, which revolutionised the way taxi and car rides can be booked. Essentially offering a service that works on demand. Now, several companies across the globe are inspired by the on demand concept, and have come up with their own versions of it, in many industries worldwide. In Indonesia, the concept of ‘uberisation’ has become more relevant than ever before, in one industry which is constantly branded as ‘outdated and inefficient’ and that is the area of logistics.
The term ‘Uber’ has become a verb
The horror of logistics in Indonesia
Often described as outdated and inefficient when compared to other logistics industries across the globe. The need for disruption is long overdue, and a few startups are taking on the challenge to penetrate the market. There are several logistics companies in Indonesia. Trucks carrying huge loads of goods can be seen in the major cities like Jakarta as well as on the roads connecting to different cities, towns etc. However, there is an inherent problem of shipping goods from one island to another, as there are more than 17,000 islands across the country, making it a logistical nightmare. Sending goods from Bali to Java would need to be multi modal, therefore increasing the total costs.
Furthermore, considering the fact that Indonesian is still a developing economy, roads, ports and routes in several areas are either not properly functioning or its current capacity cannot sustain the increasing volume of shipments. For example, roads in Jakarta and Surabaya are often congested with cars and motorbikes. Furthermore, the busiest port in Indonesia known as Tanjung Priok has a long queue of goods waiting to be cleared by the customs as the port does not have the capacity to meet the logistical demands of today’s day and age.
All in all, the cost of logistics is extremely expensive and inefficient. This as a result has led to a higher cost of goods being sold as well as a whopping 25% of Indonesia’s Gross Domestic Product (GDP) being attributed to the logistics industry
The startups Which Are Taking The Matter To Their Own Hands
Recognising the existing issues as well as the success of Uber’s concept, startups in Indonesia have sprouted, seeking to turn the problem into a business opportunity. The first and biggest startup in the field today is Kargo, which is based in Jakarta. Founded in 2015, it first rolled out a service for trucks. Several fleet operators do not have the technological features like real time tracking,which customers often request for. Furthermore, they have partnered with many fleet operators and today, has over 400 different logistics companies listed on its platform. What Kargo seeks to provide is transparency and reliability. By providing all the different companies that could perform the shipment, the customers can compare the prices as well as lead time based on the location and destination provided. This would allow customers to know beforehand what to expect when they choose a particular option. Moreover, the booking with Kargo takes less than 3 minutes, as compared to traditional operators- usually a few days.
In less than 2 years, Kargo has expanded to offer 12 different types of services, ranging from air, sea and land freight as well as domestic and international orders. Most recently, it rolled out its international parcel delivery services where individuals can send items from Indonesia to the rest of the world. As such, making the startup the one stop destination for all needs related to logistics and transportation in Indonesia.
Kargo is growing quickly and seeks to revolutionise the Indonesian logistics industry. The CEO would be sharing about the Indonesian logistics industry as well as how businesses can reduce their costs of logistics at the upcoming Retail & Distribution Operations Forum held in Jakarta on 27 July 2017.
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