BlackBuck is an incredibly popular digital platform for trucks. BlackBuck is considered the pioneer in the field of trucking. The company has introduced a new and organized pathway for making trucking convenient for all shippers and truckers. Basically, it’s a tech-enabled platform for logistics services to shift conventional trucking to a digital platform.
The company is working towards making truckload bookings and moving them at the utmost capacity. The shippers would have all the required information about the whereabouts of truckers.
BlackBuck was founded in 2015 and has brought remarkable development in the field of trucking operations. Legally, BlackBuck is termed as Zinka Logistics Solutions Pvt. Ltd. It is headquartered in Bengaluru, Karnataka, India.
BlackBuck helps the shippers to have access to a suitable truck at an accurate time for the right place, just by pressing a button. The company has partnered with the World Bank and the Indian Government on various important policies including the Goods & Service Tax (GST), E-Way Bill, and many others.
Zinka Logistics, the parent organization of BlackBuck recently launched its IPO on 13th November 2024.
In this article, we will be discussing the BlackBuck Business Model, how BlackBuck makes money as well as the strategies opted by BlackBuck for its immense success.Let’s get started!
BlackBuck is the leading as well as the largest trucking network in India. The company has put great effort into shifting trucking to the digital platform and enabling the shipper with the right trucker or reshaping the trucking infrastructure in order to simplify payments, financial services, and insurance.
BlackBuck’s strong technology helps it to provide efficiency, dependability, and seamless experience to the truckers as well as shippers.
BlackBuck has a hugely strong team of over 2000 people and holds the best sets of investors including Apoletto Asia, Goldman Sachs, Light Street, Sequoia Capital, Accel Partners, Tiger Global, and IFC.
The company deals with more than 10,000 clients onboard across 3000+ villages along with 400+ industrial centers and over 3,00,000 truckers. It formerly received ‘CNBC-TV18- Young Trucks Startup of the Year‘ and the ‘Zee Business- Company of the Year Logistics’ in 2018. BlackBuck’s company logo marks the beginning of a new path.
BlackBuck company functions in more than 200 cities across India. The track records of the distributed assets to the truck drivers in all these cities became quite difficult to manage and organize through a spreadsheet. In the upcoming years, the company is prepared to expand its territory and enlarge its assets to more cities to facilitate the services.
Key Features of BlackBuck
BlackBuck utilizes various advanced technologies in the field of logistics. The company comes up with tons of features, but the most effective are:
Quality benchmark
Monitoring and controlling
Direct procurement channels
BlackBuck Business Model
BlackBuck follows business-to-business (B2B) as well as business-to-consumer (B2C) models. BlackBuck company works towards upgrading the logistics services for the truckers. It contributes towards dealing with the major issue of trucks returning empty.
The company designed its business model in such a manner that its trucks can be reassigned from their definite location for another trip so that the customers would get better prices and pay for the return trip and most importantly, a lower carbon footprint.
BlackBuck used to function with spreadsheets to keep track of its assets and trips. But, with the increased number of registered trucks and shippers, the management became very tough and complicated. That’s why the company is putting major research into a better solution for this problem and seeing more options in hand.
How Does BlackBuck Make Money?
BlackBuck charges a small amount of fees from its customers at a fixed rate for the contract business. It generates a huge fraction of its money by charging the customers as well as the truck owners a commission of around 15-20% depending on the freight value.
Blackbuck Logistics Company provides all the required facilities to the registered trucks for a smooth truck race. With its advanced technology, BlackBuck takes trucking to the next level in the industry.
BlackBuck is upgrading logistics into an absolutely reliable and efficient at country level. BlackBuck made a net profit of INR 28.67 crore in Q1 FY25, compared to a net loss of INR 35.93 crore in the same quarter in FY24. Blackbuck’s revenue from operations grew by nearly 55%, reaching INR 92.16 crore, up from INR 59.46 crore in the previous year.
BlackBuck YoY Topline Growth
BlackBuck’s operating revenue grew from INR 119 crore in 2022 to INR 176 crore in 2023, reaching INR 297 crore in 2024. Commission income increased from INR 75 crore in 2022 to INR 127 crore in 2024, and subscription fees went up from INR 39 in 2022 crore to INR 117 crore in 2024. Service fees also rose from INR 4 crore in 2022 to INR 13 crore in 2023, reaching INR 51 crore in 2024.
BlackBuck raised funding worth $364 million in around 9 funding rounds. In its last funding round, the company raised $67 million from prominent investors including VEF, Tribe Capital, and Emerging Asia Fund in 2021. This increased BlackBuck’s valuation up to $1.02 billion and took it to the list of unicorns in space at 2nd after its biggest competitor Rivigo.
Competitors of BlackBuck
BlackBuck is immensely famous in the logistics sector. With its advanced technology and features, it’s known to be quite distinguished. As the leading and largest logistics services provider, many companies are up to beat BlackBuck. But, its top competitors in the market are Delhivery, BlownHorn, Rivigo, Xpressbees, and ElasticRun.
Conclusion
BlackBuck has worked enormously in the field of logistics services and ought to make the procedure convenient and efficient. The company utilizes advanced technology in trucking services and develops a huge customer base, resulting in great deals.
The company follows both B2B and B2C business models. Its major source of revenue is from the commission it charges from the customers and truckers which is 15-20%. BlackBuck is one of the largest logistics services providers in India and is working on improving trucking more efficiently.
FAQ
What does Blackbuck company do?
BlackBuck company helps move goods across India. It connects truck owners with businesses that need to transport goods. It also uses technology to make trucking easier and more efficient.
What is BlackBuck company?
BlackBuck is an Indian logistics company that connects trucks with businesses for goods transport.
Is BlackBuck a unicorn?
Yes, BlackBuck is the first logistic startup to turn unicorn in 2021.
Who is BlackBuck company owner?
Rajesh Yabaji is the co-founder and CEO of BlackBuck.
The transportation system of a nation is crucial for its financial improvement and social development. Transportation by road is favourable for different types of vehicles due to its simplicity, adaptability, administration, and dependability. In this manner, the share of cargo, truck, and traveller vehicles has been expanding rapidly when compared to other modes. In this article, we will discuss truck business in India, the future of trucking business in India, and more.
The Trucking industry has been fulfilling the need for cargo transportation. The spatial spread of the street arrangement (highways and other roads), its quality, and access have a significant role to play.
Today, more than 65% of the nation’s cargo is being shipped on trucks, and this emphatically affirms the modular move of load transportation from rail to the street.
The trucking industry has entered quickly into the market through a wide scope of administrative measures. The truck population in India is developing at a pace of 15% every year, taking the present number to more than 2,000 trucks for every million populace. In India, the trucking industry is a noteworthy player in load development, contributing 55% of the ton-km attribute.
These sterling outcomes are regardless of street limit in India being extremely low; the majority of the National Highways have two paths or less, and blockage on streets represents a significant challenge with more than 25% of the majority of India’s National Highways being clogged. The trucking industry is the most significant connection that encourages profitability and aggressive proficiency, prompting fast financial improvement of the nation through its contribution to the economy.
Even though the administration strategies on deregulation and other monetary changes have increased the nation’s street cargo transport in the recent decade, the absence of privatization has shortened the accessibility of assets which can achieve a turnaround.
The Indian trucking industry involves an enormous numerous players, for example, truck drivers and proprietors who are in some cases not the same as administrators, forwarders, booking operators, specialists, private lenders, and so forth.
Despite having the second-largest street arrangement on the planet and a street transport industry contributing 4.9% to the GDP, it is miserable to see that the street cargo market is profoundly divided, ruled by a huge network of little administrators, and based on a many-sided and complex arrangement of connections and money related issues.
Market share of truck sales across India in FY 2021 by Trucking Companies
The truck is a vehicle made to ship payload. The truck is also known as a lorry in different nations. Trucks differ om their size, power, and setup. Present-day trucks are found to a great extent fuelled by diesel motors. Trucks are normally arranged into various classes like trailers, convey vans, taxis, tippers, unbending trucks, and haulage.
There are many companies in trucking industry inIndia. Among them, the leading truck companies are:
Ashok Leyland
Ashok Leyland | Trucking Industry in India
Ashok Leyland is the biggest business vehicle producer and leading trucking company in India. It started operations in 948 and is a prominent manufacturer of transport vehicles, trucks, business vehicles, and military and crisis vehicles. Ashok Leyland is the sixteenth biggest producer of trucks universally.
Ashok Leyland’s yearly deals record to over 7000 motors and 60,000 vehicles consistently. It now essentially focuses on 16 to 25-ton scope of the truck, just like the mark it made in the whole scope of trucks: from as less as 7.5 tons to as substantial as 49 tons limit.
Tata Motors
Tata Motors | Trucking Industry in India
TATA Motors Limited, a subsidiary of TATA Group is an Indian global car assembling organization established in 1945 and headquartered in Mumbai, Maharashtra. It is a subsidiary of the Tata Group. Tata Motors manufactures autos, trucks, vans, mentors, development hardware, and military vehicles. It is the world’s fourth-biggest truck maker. It recorded a turnover of $42 billion. TATA Hispano, TDCV, Land Rover, and Jaguar fall under TATA Motors’ umbrella.
Mahindra And Mahindra Limited
Mahindra And Mahindra – Trucking Industry in India
Mahindra and Mahindra Limited (M&M) is an Indian car producing company established in 1947 and headquartered in Mumbai. It is an auxiliary of the mainstream Mahindra Group. It is one of the biggest vehicle producers in India and the biggest manufacturer of tractors in the world. Maxximo, Genio, Bolero Maxi Truck, Mahindra Navistar Trucks, Gio, and Alfa are some of the vehicles fabricated by Mahindra and Mahindra Limited.
The Growth Of Trucking Industry In India
The Indian trucking Industry arrived was estimated at $9,054 Million in 2019. The market is right now encountering two-fold development rates and is being catalyzed by various components. Trucks offer various benefits over railroads. For example, rather than rail transport, trucks can acknowledge items in smaller amounts, they can likewise arrive at provincial and sloping districts, and require less time than the rail for the stacking and emptying of the items.
Top Manufacturers In Trucking Industry
Moreover, India’s solid monetary development has been a significant driver for the trucking business. The solid financial development has additionally catalyzed the enhancement of divisions, e.g., framework, land, coordination, mining, and so on.
Different elements spearheading this market include rising livelihoods, urbanization, development in the rustic economy, and web-based business. GST has also simplified the transportation system to quite an extent. Looking forward, we expect the Indian truck market to arrive at deals worth $ 17,870 Million by 2023, showing a CAGR of 12% during 2019-2024.
Different types of trucks generate individual economic growth. Even though their figures demonstrate wild conduct throughout the years exclusively, their development has been staggering. The light-duty truck section has seen consistent growth throughout the years. Following the productive situation of the little truck section, the heavy-duty truck segment has demonstrated a development rate nearly equal to the light-duty truck segment in the year 2018-19.
Truck Industry in India
The medium-duty trucks have demonstrated average conduct throughout the years and have figured out how to keep up their state homeostasis. Little trucks have seen an inconceivable increase in their numbers. The light-duty and medium-duty truck divisions are seeing consistent numbers right now. The heavy-duty truck portion has likewise demonstrated extensive development, adding up to practically 18% in FY 2019.
Light Duty Truck
The significant tyrant of this fragment is Tata Motors which has seen a development of nearly 4% while the market moved from 58% in 2016 to 54% in terms of marketing in 2019.
Various organizations, in particular SML Isuzu, Mahindra, Force Motors, and Ashok Leyland have extremely insignificant offers. The light-obligation truck fragment is controlled by the Indian OEMs, with Tata Motors as the pioneer of this fragment. Other top players incorporate Eicher and SML Isuzu. The individuals who utilize these vehicles include truck proprietors and drivers. The use in that capacity is basically on a momentary premise.
Medium Duty Trucks
From being a dominating low spending fragment, the segment has moved to the medium spending category. The market is driven by Tata Motors, which holds a 39% share; Eicher Motors firmly follows with a comparable 34% piece of the medium-duty trucks industry.
The rest of the segment is dispersed among two significant players: Ashok Leyland and SML Isuzu. Pioneers like Eicher Motors and Tata Motors have seen an outstanding change in their grasp over the market. Ashok Leyland has developed by over 6% in the medium-duty trucks segment.
Heavy Duty Trucks
This was a transcendentally medium spending category which is expected to become a high budget section by 2020. The key despot of this fragment is Tata Motors, which holds 56% of the market and has gone down by nearly 3% in the last 5 years.
Ashok Leyland comes in at the second place with a 45% share of the market. It has ascended by nearly 9% over the previous year. Organizations like Mahindra and Mahindra, Volvo, and VECV hold minor portions of this truck segment.
How To Start A Trucking Business In India?
A high-level description of the steps involved in starting a trucking business in India is as follows:
Gathering Of Funds
With the vital ability and security to begin the trucking business, you can look for monetary help from the banks for putting resources into the vehicles. If you don’t get the bank endorsement, consider an accomplice who can share the vital capital for starting the business. Leasing vehicles as opposed to purchasing them is one alternative when you have fewer assets.
Truck Transport Business in India
Registration And Licensing
There’s a truckload of administrative work to be finished. However, keeping interesting plays on words aside, with a decent business consultant nearby, you can enlist as a sole owner, association, or an LLC to comprehend the expenses collected on fuel, hardcore vehicles, and so on. Next, protection plans rely upon your trucking business’ structure and area. Contact your money related counsel to know the best arrangement for your organization.
Buying Or Leasing Truck(s)
The advantages and disadvantages of both are similarly begging to be proven wrong because, at the end of the day, everything comes down to your spending limit and the amount you need to put resources into the business. Purchasing trucks require some genuine assets; however, there are alluring alternatives accessible to enable you to deal with conventionally low-loan fees. You could likewise go in for semi-utilized trucks to cut down the expenses.
Renting could be a decent alternative for individuals who can’t bear the cost of initial instalments and long haul responsibilities. Over the long haul, they may get costly. If you’re fortunate enough your business vehicle may accompany protection or upkeep sponsored rent from the proprietor itself.
Search For Potential Customers
Exhaustive statistical surveying is an absolute necessity to get knowledge about potential clients and overarching rivalry if any. Makers, wholesalers, retailers, farmers, builders, and specialists can shape a perfect client base for a trucking business as the need for shipping crude materials, prepared stock, pressed items, etc. to the distribution centers and outlets arise.
Advertisement For Business
Sustaining a new company is a challenge. Advise your potential client base by promoting it in different advertising mediums. Seek the assistance of tabloids or purchase a promotion space in the yellow pages directory. Marketing expands the review estimation of your organization. Guarantee your business name, logo, and contact subtleties which will show up on the vehicles. Moving towards vehicle specialists is likewise one way to look for agreements.
Appoint Expert Drivers
Hire legitimately qualified rock-solid drivers with a perfect foundation and a valid driver’s license. The individual ought to be at any rate 25 years of age and prepared in the regions of street well-being, vehicle security, and the handling of freight.
Truck industry in India is progressing in the direction of the national rollout of Bharat IV (BS-IV) and outflows’ standard proportionate to Euro IV. The Indian government as of late presented the rollout of BS-VI, jumping BS V. That is enormous – it took Europe 10 years to change from Euro IV to VI, yet in India, OEMs did it in only four years. A significant test for vehicle makers and a significant open door for the provider.
OEMs outside India are accustomed to running enormous apparatuses, progressively stringent mileage, and emanations guidelines. The collective result will bring speed and power along with a solid foundation, and in India, this kind of implementation implies enormous speculation.
That is not to propose that India’s administration is attempting to make life hard for vehicle producers. In reality, quickening development in vehicle assembling is at the core of Make In India, the intensely advanced, home-grown venture that envelops different verticals and segments.
For the car business, that incorporates the second emphasis of the administration’s Automotive Mission Plan, AMP II, which by 2026 intends to make India’s car industry one of the top 3 in the world, increment car fares to 35-40% of generation, increment the business’ GDP commitment to over 12%, and make 65 million car industry-related employments.
FAQs
How to start a truck transport business in India?
One can start Truck transport business in India by following the steps:
Conduct research and gain full knowledge of the transport business and industry.
Form a Business Plan, Business registration and Apply for a loan.
Get an Office Space, Hire staff and Get Trucks and Lorries for the transport business.
Commence Transport Business In India.
What are the different types of trucks in India?
Different types of trucks in India are:
Refrigerator Truck
Dump Truck
Cement Mixer Truck
Garbage Truck
Dump Truck
What is the future of transport business in India?
The statistics from the economic survey in India also showcased that the logistics industry CAGR of 8 per cent in the next five years, to reach USD 330 billion by 2025.
How the employment in the transport industry of India?
As per the available data, over 22 million people are directly employed in this industry, which contributes to about 6% of the GDP.
What is the sale in the Trucking industry in India?
In year 2021, estimately 81 thousand trucks were sold across India.
Who sells most trucks in India?
Tata Motors sells most trucks in India. It has the market share of 51% truck sales in India.
Who are the leaders in the Trucking industry in India?
Top companies that leads in truck manufacturing in India are:
Purbalee Dutta
