BlackBuck - An Online Marketplace for Logistics Transactions, Helping Customers Move Full Truck Loads Between Cities
BlackBuck is an online B2B marketplace for inter-city Full Truck Load (FTL) transportation. Keeping technology at the core, BlackBuck is redefining the logistics landscape of India, making it reliable and efficient.
The transportation sector has been at the heart of India’s economic activity. Since the beginning of the first plan in 1951, road freight traffic has grown annually by 9.1% but the road network has grown annually by just about 4.2. This has put tremendous pressure on the existing road network leading to congestion, delays and eventually higher costs and lower profitability in the trucking business.
BlackBuck, India’s only comprehensive truck aggregator that is not only bringing down costs, but also enhancing the logistics operations of companies. From a 96-point checklist for truck empanelment to transparent auction-based pricing to anytime tracking of freight, BlackBuck has several firsts to its credit, and is well on its way to transforming the logistics function for companies. The company has recently closed a funding of $ 25 million. The company has attracted funding from some of the biggies in the industry including – Tiger Global, Accel, DST Yuri Milner’s Founders Fund and Flipkart. It is one of the well-funded companies in online B2B Logistics space.
The firm has its presence in 220 locations and has customers like Unilever, Britannia, Godrej, Marico, Jyothy Laboratories, EID Parry, Asian Paints etc.
BlackBuck believes that while road infrastructure is critical to move goods, the trucking industry can benefit substantially through the rapid adoption of technology. BlackBuck has, therefore, focused on a platform where truckers and users can use technology for efficient and effective transportation of goods. For the truck operators, Blackbuck has transferred several benefits including better price, better access to demand (low idle time) and greater control of one’s fleet.
The company was Founded by three Co-founders - Rajesh Yabaji, Chanakya Hridaya and B Ramasubramaniam.
In An Exclusive Interaction with BWDisrupt’s Team, Rajesh Yabaji, Co-founder, BlackBuck Shares Details About the Company and Their Future Plans
How did the idea came to start BlackBuck?
During my stint at ITC, I led the task of transforming the Supply Chain. Freight was an area which took a high spread of costs and it was really difficult to execute any change in the way things were executed. The idea of building BlackBuck came across during this stint, met Subbu & Chanakya (Co-Founders) with whom I shared similar passion for this industry and to bring in positive impact. This is how BlackBuck was born.
I decided to resign in Dec 2014 and served 3 months’ notice period at ITC. On 20th Apr 2015, the company was founded. The company received venture funds from Accel Partners & Flipkart, a week after the foundation date.
All our memories have turned very sweet, taught us a lot, and seasoned a baby BlackBuck into a commanding and dominant position. What was more important in all these instances was perseverance. We faced many challenges while we were building the business. Given we are in a very unorganised segment, there were instances when we were cornered and singled out by multiple established players. The perseverance and the BlackBuck Spirit demonstrated by the team lifted us from the ground and took our scale through the roof. I think it’s important that quality time and effort is spent on all problems and these are solved along the journey. Every problem you solve helps you add value to the business.
BlackBuck is an online B2B marketplace for inter-city Full Truck Load (FTL) transportation. Keeping technology at the core, BlackBuck is redefining the logistics landscape of India, making it reliable and efficient. BlackBuck brings truckers and customers on a platform to execute the transaction using intelligent auction engines equipped with smart mobile interfaces. Integration of technology with on-ground execution helps manage execution in the most effective manner.
Unique key feature/services
Penetration of technology in the field of logistics is limited. BlackBuck keeps technology at the core of its overall offering and differentiates itself in the following ways:
BlackBuck’s Effective Execution is carried out through the following four aspects.
a) Direct procurement channel
BlackBuck’s direct procurement platform aggregates the supply from the freight market. This ensures availability of freight to the customers in the most reliable fashion. Depending on demand, continuous aggregation and empanelment is taken up for the BlackBuck platform.
b) Quality benchmarking
Trucks are empanelled through a standard quality auditing and verification process, which ensures quality shipping standards. BlackBuck audits trucks at periodic intervals depending on the industry of usage.
c) Monitoring and control
With investment in technology in the empanelled trucks, BlackBuck delivers track and trace facility for its customers where the entire shipment can be monitored from the placement at source to dispatch after the unloading process at the destination. With its proprietary geo-‐fencing technology, it authenticates all the process parameters of execution.
d) Transportation analytics
Data analytics on overall transportation provides all the information to the customer in a single view helping the customer effectively manage transportation.
Technology penetration in logistics is at the lowest. BlackBuck has built technology, which integrates both demand and supply onto a single platform. BlackBuck works with customer through tech-integrated platforms, where they can place orders very simply. This is done through technology integrations, portal based and mobile app. At the click of a button, customers can track and trace their shipments, analyze the shipments carried out on the platform.
Transporters across the country are empaneled on the platform through a mobile application, through which they interact with us. Transporters through the platform have real time visibility of customer’s demand. BlackBuck is also using technology to bring about a change in the payments structure in the industry and eliminating the use of cash. The entire transaction has been made seamless for the eco-system using technology
BlackBuck has till now raised $30 million from Tiger Global, Apoletto, Accel Partners and Flipkart.
BlackBuck works on transaction fee model.
BlackBuck now has a PAN India Network, servicing over 150 Customers across 220 locations across the country.
We want to see the world of transportation to be run using technology! Completely. We believe this would be the best way to execute freight, which will lead to making us the largest freight company in the short term – As the market is very fragment at moment. In the long run, we want to look at possibilities of launching multiple business segments and also taking the story global.
For supply partners we are primarily using BTL (below the line) activities to promote usage of the platform and for customers, we will use an optimum mix of ATL (above the line) and BTL campaigns depending on the target customer segments.
Market size & opportunity
The logistics industry of freight contributes to 6% of India’s GDP. Majority of this portion is inter-city logistics. It is estimated to be a $100 Billion market in India. The current players operating in transportation are asset-light and very fragmented. The suppliers to them again are completely fragmented with average ownership of 3 Trucks per person. The business in this industry happens in a broken offline method. BlackBuck is looking at this huge market to re-create logistics commerce using technology, building a platform where buyers and sellers of freight can engage seamlessly.
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