Easing transportation woes
Calyn Yap | 24 Aug 2018 00:30
Singapore-based logistics technology start-up Ezyhaul Sdn Bhd expects to turn profitable next year, having seen strong traction since its maiden foray into Malaysia two years ago.
It currently has more than 3,000 trucks of various capacities in its network, up from over 1,000 in mid-2017. Of the figure, the majority are SME truckers due to the value that it brings.
Larger customers contribute 60% to its revenue and SMEs make up the remaining 40%. In terms of size, conversely, 5%-10% of its customers are larger companies while 80% are SMEs.
A business-to-business player, Ezyhaul connects shippers with pre-qualified and reliable hauliers that have unutilised capacity in their trucks that ply domestic and cross-border areas.
The start-up estimates that some 65%-70% of return loads in Southeast Asia are empty and truck utilisation rates average just 40%-45%. By using its platform, such empty capacity and losses through return journeys can be significantly reduced.
Its co-founder and CEO Raymond Gillon says, “The transportation industry is incredibly commoditised and smaller truckers are typically at the bottom of the food chain and are basically surviving from month to month. They’re not happy because they’re being squeezed on their rates and price is the only competitive advantage.”
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