Page 24 - ITLN May-June 2024 for Magzter

Focus
Logistics
Startups

but taking massive haircuts, which can
go up to 80% of the front row."
Trucknetic's founder emphasised
the importance of reducing the wastage
of miles without charging fares as a
key performance indicator. We are
using machine learning and artificial
intelligence to match return trucks with
demand opportunities, aiming to reduce
the return load deficit and address
the demand-supply mismatch, which
currently results in significant losses.
According to Trucknetic’s Jain, “We are
losing close to $75- 100 billion every
year because of the demand supply
mismatch in the country.

India's last-mile delivery and EV
adoption
According to a BCG report titled "Electric in the long run despite higher upfront
Vehicles: Future of Last-Mile Deliveries costs. This is particularly true for two-
in India" by Vikram Janakiraman, wheeler EVs, where TCO superiority
Natarajan Sankar, Aditya Khandelia, and becomes evident compared to ICE
Aditi Tiwari, last-mile delivery in India is (Internal Combustion Engine) vehicles.
undergoing a significant transformation The decreasing prices of batteries
due to the rapid adoption of EVs in the are projected to enhance the total cost
organised sector. Important players like of ownership advantage for electric
Zomato and Big Basket have announced vehicles (EVs), particularly for three
ambitious commitments to electrify their -wheelers and four-wheelers, even
fleets, indicating a growing trend towards without subsidies by 2025. Government
sustainable transportation solutions. support at both central and state levels
Zypp Electric's Gupta highlighted is expected to further drive EV adoption
the growing adoption of electric through regulations and initiatives
vehicles (EVs) in India's logistics We continuously improve such as FAME-II, which offer incentives
sector, attributing the trend to route planning to reduce for fleet operators to transition to EVs.
government incentives and industry fuel consumption and The organised sector is in a good
initiatives to reduce emissions. While position to promote EV adoption by
EV usage was initially focused in carbon emissions. As addressing challenges like high costs,
major cities, there's a noticeable a result, our clients financing, and insurance. Large EV
uptick in Tier II and Tier III cities, have saved 12 million fleet operators, often startups, lead the
thanks to increased awareness and kg in greenhouse gas way by acquiring EVs, offering fleets on
supportive policies like the FAME emissions. lease, and providing maintenance and
scheme. The availability of affordable charging infrastructure.
electric commercial vehicles Nishith Rastogi
facilitates this transition, especially Locus The way ahead
in areas dealing with pollution and The future of India's logistics sector
traffic congestion. The last-mile delivery sector is looks promising, driven by innovation,
The adoption of EVs for last-mile experiencing substantial growth across digitalisation, customer-centric
delivery in India's Tier II and Tier III various sectors, such as food delivery, approach. Startups are disrupting the
cities has notably increased due to groceries, and e-commerce, with a industry by leveraging technology and
shorter distances, less crowded roads, projected CAGR of 15-20%. EV adoption innovative business models to improve
and improved infrastructure. This trend is also driven by the significant efficiency and reliability. Their focus on
is driven by growing environmental financial benefits they offer regarding addressing last-mile challenges and
consciousness and the economic reduced Total Cost of Ownership digitising freight in India is shaping a
benefits recognised by logistics firms. (TCO), making them financially viable more customer-centric ecosystem.
22
May - June 2024 www.itln.in