A new mobile app was launched recently to empower logistics providers and shippers in terms of real-time tracking and safe and reliable delivery of goods.
Supported by the country’s largest network of logistics providers, KargaX, the newest delivery and delivery tracking app, enables truckers to become efficient, aims to resolve the empty miles or non-revenue miles. Non-revenue miles happen when a truck carrying load from the origin to destination, goes back empty-handed, without load to make up for miles travelled.
KargaX president Kristofer Montebon said the platform is designed to give shippers multiple carrier options, while carriers can get more shippers who can fill in the load capacity. It enables shippers to have the most cost-effective solution, while truckers can have a more optimized trip.
“KargaX is a tech platform that connects shippers and carriers conveniently and seamlessly. We've seen use-cases in which truckers transport cargoes in many parts of the country and it's loaded on its way back. On our app, shippers save 10 to 30 percent of the shipment costs by finding the right truckers. This is not a problem experienced by carriers alone, this is a problem experienced both by carriers and shippers,” said Montebon, who has 12 years of experience in technology and startups.
He said innovations like the KargaX platform can resolve one of the most persistent problems of "empty miles" in the trucking industry. This adversely affects not just the truckers but also the shippers, as they are charged for a two-way trip.
A study by the ASEAN German Technical Cooperation in 2018 found that 56 percent of delivery trucks from Manila to the provinces were returning under-optimized or empty, while 35 percent of outbound Metro Manila were returning to their base in the provinces under-optimized or empty.
"The pandemic has given impetus to develop the technology to optimize the price for shippers and maximize the load for carriers. In some of our use-cases, this resulted in a significant reduction in transportation costs for the shippers" said Montebon, who previously worked with Ninja Van, Lalamove and Transportify.
KargaX aims to democratize the trucking industry by allowing flexible rate terms and posting the same for bookings, eliminating the element of surprise when clients are bill-shocked over the amount they should be paying.
“We are providing options to shippers. They get multiple options of shippers with options to get the best price-offs. The shipper has the option for what they exactly need. We have everything from FB type four-wheelers to 12-wheelers, even trail trucks. We make it very convenient for shippers,” Montebon said.
Another plus to the overall trucking strategy is that all bookings are covered by in-house insurance policy loss, ensuring that the shipments will have adequate protection from origin to destination.
Up on the app, shippers and carriers can discuss delivery details including the cost, should they want to negotiate, as well as specific reminders for sensitive cargoes. The chat function of the app is where negotiations are locked-in.
Montebon said with the app, a shipper does not need to build its own fleet of cargo truckers. They are simply relying on the efficiency and reliability of over a thousand partner trucks in Metro Manila, more than 600 partners in CALBARZON and the app just as rapidly opens up its Visayas and Mindanao operations.
KargaX has a sales and operations team all over the Philippines located in the National Capital Region, Cebu, Bacolod, Davao and Cagayan de Oro. KargaX's stringent accreditation process for truckers guarantees that truckers booked from the platform are legitimate companies. A trucking company may also enroll multiple vehicles and drivers seamlessly through the app.
They need to upload photos of the driver, the truck and other requirements. The KargaX team will review the enrolled vehicles and approve them within an hour. Once approved, the trucking company can assign a vehicle for booking. KargaX is integrated with Google maps for a more seamless routing.
With its attention to details paired with benefits for the industry and the economy, the app was hailed as top 4 among the ten most promising startups in the Startup Innovation Challenge.