Influx of internet and instant chats and easy availability of smartphones have not only eased general communication, but also opened new business models for selling goods.
According to a report by ASSOCHAM-Resurgent India, the number of consumers who purchase online has touched 100 million with e-retail growing 65 per cent year- on- year in 2018. Given the success of e-commerce giants like Amazon, Flipkart, Snapdeal and several other portals from properties to spectacles and furniture to apparels in India, it is evident that it is not merely a trend but a structured way to hold onto your customers as well as potential buyers.
In 2014, Mr. Nitesh Bagadia, Director at Premier Logistics, ventured into the business of used trucks by setting up an online portal called www.indotrux.com. He has expertise in the field of logistics for over two decades and his knowledge in terms of commercial vehicle is enormous. This gives an operational backbone to IndoTrux.
Mr. Navin Agrawal and Mr. Pratik Bagde, two IT professionals who have got corporate experience provide product a technological edge. Their field experience for the past two years, has contributed to immense domain knowledge of this sector. Thus, the IndoTrux founding team is a well-balanced combination of IT and trucking professionals.
What looked like a simple business model was the first step into the world of web. Sellers would list their trucks and buyers would order after subscribing to the website. However, the subscription model is not the best option unless you generate a lot of Ads or charge the buyer and seller a registration charge upfront. That is not an ideal business scenario. “Nobody would like to pay just for registering the website without them liking a product. Hence we worked on refining available vehicles, inspecting vehicles and their price feasibility before making them available online. It gave a structured framework and neat presentation of the used trucks,” said Mr. Nitesh Bagadia, Founder and CEO, IndoTrux.
Started in 2014 and having gone through a resurgence in terms of it design and layout in 2015, IndoTrux has come a long way. A look at the website clarifies the effort gone behind segregating the used trucks not just by brand but also by vehicle type (model), year of manufacturing, location, popular trucks and kilometers run. Mr. Bagadia revealed: “We have a started a certification of used trucks which includes a check list of around 20-25 points, including engine condition, aesthetics, body of the vehicle, tyre condition, insurance valid or not, etc. All these factors help us get on to the fair value of the vehicle. We believe this step of inspection is the biggest value addition that we offer as there is a lack of transparency regarding the health of the vehicle and there is no central certification agency that does this.”
It is evident that in a profession that lacks transparency, to establish one is a huge task. From large fleet operators to some buying a vehicle for a contract, everybody needs a reliable vehicle. In the fragmented and unorganized used truck market dominated by local brokers, IndoTrux floated a two-pronged strategy. The first one saw them get used trucks listed from local brokers and the second one invited individual users / fleet operators to bring their vehicles for inspection and get them listed. Apart from this, the portal has information about the new trucks, their specifications, prices and expert reviews so that customers can compare the first-hand version and the second-hand version of the truck.
Abiding by all the norms set by the Government on taxation, IndoTrux also helps its customers in getting a second-hand vehicle finance and insurance. With a special section known as Transport Directory on the website, which aims at creating the largest directory of fleet owners along with their information, IndoTrux also keeps everyone updated with the news and videos of the latest happenings in the Indian trucking arena.
Creating value
Encouraged by the early progress IndoTrux has achieved, the company has managed to list more than 4,000 commercial vehicles (both LCV and HCV) online in the last 12 months, IndoTrux is eyeing expansion too. “We are preparing to rapidly encash on our online presence by expanding fleet listing from 450+ cities in both Tier 1 and Tier 2 cities of the nation,” beamed Mr. Bagadia.
Asked about the OEMs already entering the field of second-hand trucks, he said: “We are aware that every manufacturer has also started taking back his own vehicle and then sell it after refurbishing it, but that is confined to their own brands. We have the willingness to handle vehicles of different brands and models. In fact, we can extend one of our inspection services or help them list their refurbished vehicles on our portal to find the right customer. Our online platform can act as a digital showroom for these vehicles. We plan to create a professional and trusted brand in such an unorganized market with technology at its core”.