Why is Logistics SaaS failing in India?
Background
The logistics market in India has been chaotic and disorganized.
With the rapidly increasing demand for e-commerce products, changing online shopping habits, and changing customer expectations, logistics has become even more critical in a country’s economic growth. That’s why the Government of India recently introduced National Logistics Policy 2022.
According to Google’s report, the Indian SaaS market could account for 8% of the global SaaS SMB market. However, why is logistics SaaS still struggling to gain traction in India?
Here’s Why:
- Inertia in the face of technological progress:
Due to a lack of modern digital infrastructure, most transporters, delivery companies, and brands in India still use extremely outdated methods for managing their day-to-day delivery operations. There is resistance to integrating technologies in logistics due to the significant setup and ongoing costs associated with going digital, as well as a shortage of skilled workforce.
- The fallacy of thinking only in the present
Most transport companies approach logistics with an outlook focused on short-term fixes due to the complex nature of e-way bills, the GST system, and other unknown factors. It takes a lot of money to set up a system that is based on cutting-edge technology. Transportation companies are hesitant to make the initial financial investment necessary to achieve their long-term business goals due to the high degree of uncertainty introduced by events such as pandemics.
SaaS Solutions That Are Expensive And Not Very Flexible
Most transporters and delivery services lose money due to thin margins, inefficient operations, and high overhead. Few SaaS companies focus on providing enterprise-level solutions, and the ones that do are either too pricey or too rigid to meet the needs of the Indian market. This adds even more strain to transporters’ finances, despite the inefficiency of their logistics operations.
The Way Ahead
How is Floww striving to make a difference in the Indian Logistics market?
Floww is a homegrown logistics SaaS company that designs logistics solutions to solve the unique challenges of Indian transporters and delivery companies by providing efficient, flexible, and, most importantly, affordable ways to grow the logistics business.
Right from helping SMBs digitize their transport and logistics businesses, Floww offers customized solutions to simplify most complex logistics processes and empower transporters and delivery businesses to be a part of the new-age logistics era.
Floww App allows transporters, and logistics businesses to manage end-to-end logistics processes at their fingertips.
