Why Transportation and Logistics Companies Need a Mobile App?

The Transportation and Freight Industry is going through a powerful transformation influenced by modern technologies. Due to the field of specifications of the trucking industry, the companies have to gather and analyze huge amounts of data. That’s why computers and other smart gadgets have become an integral part of their work. But the question is, do they unlock the whole potential?

The transportation app market is much bigger than it seems. It involves not only taxi and delivery apps, but also apps for logistics, cargo tracking, and many other. In fact, this niche is developing rapidly as the companies trying to keep up with time.

Nowadays many who have established their business on trucks and cargo shipping want to create a transportation mobile app. And when regular people think about building an app for startup or their company, most likely they think about something like Uber for trucking industry.

Let’s take cargo transportation as an example. This type of service makes a considerable share of transport and logistics apps as the demand for custom mobile apps for transportation is continuing to grow.

Houston, we have a problem

Unfortunately, everything goes not very smoothly. The industry is losing $16 billion annually due to demurrage of trucks and containers. Private transport operators and large corporations bleed cash simply because they can’t provide distinct load for their cargo vessels. And as the result, the prices get higher, companies are forced to leave the business, and level of competition is decreasing. What are the ways to solve this problem?

Old-school approach

When there is a void in any industry, there are always subcontracting suppliers that are ready to fill them. Cargo brokers learned well how to set up those who have cargo and those who can deliver it. The problem is that they take sufficiently large fee for their services (around 20%). Many got used to this scenario and use it for years, others consider broker’s commission too large and decide not to waste the part of their profits.

Modern approach

The availability of broadband Internet and the huge amount of devices make everything available on demand starting from on-line movie theaters and TV networks up to homestay booking with Airbnb, and ordering a cab with Uber. And this niche is continuing to spread like a wildfire.

If this isn’t an answer to the questions “why logistic companies need a mobile app?” then let’s continue.

Logistics app development is becoming more and more popular as mobile app for cargo tracking allows to work without brokers at all or reduces their responsibilities and significance.

Modern technologies enable the customers to easily find the service suppliers. And the wide availability means fewer empty trucks and consequently fewer lost revenues and more profit.

Let’s talk business

The opportunity to spare will make happy every businessman, especially, when quality is not harmed at all. And in case with the implementation of technical solutions the comfort and client’s satisfaction can be increased.

So, which tasks can be solved by a mobile app for vehicle location tracking?

  • Database management
  • Real Time GPS tracking
  • Clear payment scheme
  • Schedule management
  • Immediate request confirmation
  • Reduction of paper documentation

Moreover, if you develop advanced optimization algorithm you will be able to receive more weighty results. But if you get rid of subcontracting suppliers and reduce the prices, then how the software monetization will work? The answer is simple. You need to become software supplier, not a consumer. It will boost your competitive position.

Choosing the right monetization strategy

As for now there are several kinds of apps for logistics companies and their clients:

  • Free for the service providers
  • With the shipment margin (for customers)
  • With monthly/annual subscription (for customers)

How to develop Uber for delivery?

Which technologies do transportation companies use? The majority uses a combination of software tools from different providers and try to make them work as a system. This sets some limits for structuring an operating system as you need to use compatible software to interact with other companies. How can you avoid this hindrance? You can develop a mobile app for a logistic company in accordance with your own requirements.

Of course, this task is not very simple. Besides, you will have to find suitable developers that can handle such project. You should think carefully, as the responsibilities of your IT partner will include the systematization of functionality, building of clearly structured development process.

The effort to develop a logistic app should be focused on functionality and usability. However, it doesn’t mean that you don’t need a custom design. On the contrary, if you are planning to develop a mobile app for vehicle location tracking for iOS and Android, colorful design will mark your app among the competitors. But don’t go too far.

In order to be successful, the functionality should include not only the mechanism to load a truck. The drivers should have the opportunity to count and update the prices, build trusted relationships with companies and have access to potential clients.

It’s obvious that client’s opinion is built on the feedbacks and their own experience of collaboration. So, you need to pay much attention to reputation and launch the applicants selection and ranking system. This way you will assure good quality of provided services (as drivers will be motivated to keep high rankings) and make a positive image of your brand.

All in all, application development is an investment that can substantively increase your profits or even change the specification of your business.

Looking for more answers to the “How to develop Uber for delivery?” question? Contact AMCON SOFT and we will answer all your question and will tell the approximate cost of our services.

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