TRUXAPP Projects $1B in Revenue by 2022
Founded in 2015, Truxapp is revolutionising the trucking industry and is set to change the landscape of the Middle East’s road freight system. It set up its first international operation in the UAE in 2017 and plans to quickly expand to the rest of the GCC within 2018. Experts in road freight transport and logistics, SCV to HCV, intra-city to inter-city, long-haul to last-mile delivery, Truxapp covers all operations within the sector.
Since launching Truxapp has aggregated over 350,000 trucks and over 200 corporate clients as a group with revenue projections of US$1 billion by 2022, with over 40% of the revenues coming from the GCC alone.
Truxapp already boasts 20,000 trucks listed in the GCC, and entered the UAE market in 2017 to deliver seamless solutions to the logistics industry as demand grows at an exponential rate. According to a report by Frost & Sullivan, Saudi Arabia and UAE are the largest logistics markets in the GCC, with an estimated market size of $55B and $30B respectively. In addition, the addressable road transportation opportunity size across the GCC is $24B.
With its highly advanced, user friendly, proprietary and customisable technology infrastructure, Truxapp is addressing the inadequate logistics and transportation models with the aim of supporting companies to become more agile and responsive toward their customers’ needs.
Naseer Ahmed, Co-Founder and CEO for Truxapp – International, said: “While several industries are becoming digitally enabled, the logistics sector has been neglected because of its complexities as a B2B service. Unlike technologies behind B2C ride-sharing companies, road freight has more variables, however, once appropriately established, digitally-enabled trucking services can immensely support all industries as well as the drive toward seamless Smart Cities.”
Ahmed further explained that the UAE has a growing population with increased consumption and high-internet penetration rates, and the expanding e-commerce sector is expected to reach US$ 10 billion in the next two to three years.
“Digital savvy and connected consumers expect faster, more accurate deliveries and an optimal user experience which can make or break brand loyalty. These are some of the factors that will put a strain on companies reliant on logistics and transportation if they fail to rapidly adapt to changing market dynamics and meet customer expectations,” added Ahmed.
Currently the logistics and freight transportation industry is highly fragmented with several players, low productivity, minimal regulation, high costs, and limited value-added services. In fact, Frost & Sullivan’s report mentions that in Dubai alone it is estimated that productivity levels of international logistics companies are 10-15 percent lower compared to their global operations because of minimal technology adaptation.