The founder of Filipino-owned logistics platform KargaX, the first inter-region and inter-island cargo delivery app in the country, vowed to provide a seamless solution to businesses, particularly the problems in the supply chain.
KargaX founder and president Jack Montebon said the mobile app is designed to connect shippers or businesses to accredited truckers in the country for their inter-island or inter-region shipment needs.
“This gives shippers the most effective logistics solution and truckers a more optimized less-costly trip,” said Montebon.
Montebon is sharing his expertise with KargaX as he has worked with startups like Ninja Van, Transportify, Lalamove and many others. His 12-year experience in the technology and logistics industry helped him see the divided and inefficient supply chain due to the water that separates cities and regions in the country.
Montebon said innovation can help the persistent problems in the industry, especially the truckers’ “empty miles,” as in the freight industry, empty miles are non-revenue or less profitable miles that are usually under-optimized.
According to the ASEAN-German Technical Cooperation, many deliveries from Manila to the provinces return empty which makes the routes more expensive as clients are charged for two-way transport. Around 35% of trips from Metro Manila are empty while more than 56% to Metro Manila are unoccupied.
“A freight-matching mechanism uses the available logistics management solutions to coordinate supply and demand. This makes trips cost-efficient and optimized. KargaX clients have seen a 10 to 30 percent reduction in their shipping costs. Meanwhile, KargaX-registered truckers traversed more than 300,000 miles since their launch last November. With better profits, the overall economy benefits.
“Thirty percent of these were fully-optimized trips—with cargo on the forward and back trip—as we have operations nationwide,” Montebon added.
He cited that a trucker who’s in their platform gets a booking from Manila to Davao and then gets a backload booking from Davao back to Manila through KargaX. They also act as a supplemental source of clients to the truckers who have their own shipment going to a destination but rely on KargaX to get them a load back. These figures can be more efficient as they start to scale.
“The Philippines freight and logistics market is projected to grow at 8.2% from 2022 to 2027 according to Mordor Intelligence,” Montebon noted.
Currently, KargaX is actively growing its roster of accredited truckers in the key cities. With sales and operation teams all over the country, KargaX is priming itself for growth to better serve businesses and truckers from all corners of the country.
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