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KargaX connects Philippine shippers and carriers to alleviate the “empty miles” problem of the trucking industry
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The use of the app in some cases has resulted in a 10% to 30% reduction in transportation cost for shippers
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Truckers can enroll multiple vehicles and drivers in the platform
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KargaX has a stringent accreditation process for truckers to guarantee only legitimate trucking companies are enrolled in the platform
KargaX, an app that connects shippers and carriers for inter-city, inter-region, and inter-island deliveries, was virtually launched on December 3.
KargaXis is designed to link shippers to multiple carriers, and seeks to alleviate the “empty miles” problem of the trucking industry.
“We’ve seen use cases where truckers traverse the Philippines with cargo on the forward and backload and shippers saving 10-30% of the shipment costs by finding the right truckers,” KargaX president Kristofer Montebon said.
Montebon, who has a 12-year experience in technology and startups such as Ninja Van, Lalamove and Transportify, said he is focusing on the logistics industry as he believes that “everything from food, fuel to construction materials hinges on an efficient supply chain.”
Citing a 2018 ASEAN German Technical Cooperation study, Montebon said 56% of delivery trucks from Manila to the provinces return under-optimized or empty while 35% of those going out of Metro Manila and returning to their base in the provinces are under-optimized or empty.
Montebon believes innovations like KargaX can solve the persistent problem of “empty miles,” or non-revenue miles, which happens when a truck has a load from the origin to destination, but none on its way back. This situation does not only adversely affect truckers but also shippers, who get charged for the entire two-way trip.
Montebon said he saw the need to create a freight matching mechanism to encourage wider use of available logistics management solutions and coordinate supply and demand. He sees much opportunities as the transport industry is projected by the Philippine Statistics Authority to grow at a compounded annual rate of 8%.
“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 10% to 30% reduction in transportation costs for the shippers,” Montebon said.
Truckers can enroll multiple vehicles and drivers in the platform, all through the app. Montebon said KargaX has a stringent accreditation process for truckers to guarantee only legitimate trucking companies are enrolled in the platform.
The KargaX team reviews the enrolled vehicles and can give approval within an hour. Once approved, the trucking company can assign the enrolled vehicles for bookings.
Clients or users can register and book trucks either through the app or their personal computer.
“We are integrated with Google maps for a more seamless routing. Clients can choose vehicle type, input cargo details, and their budget. The operator receives notifications through SMS and in-app about a booking and offers prices to the client through the app. They can chat and negotiate with the client,” Montebon explained.
KargaX does not have fixed pricing, allowing clients to negotiate rates with truckers. Montebon said the platform is free for use but the company gets a 10% share from the negotiated rates.
Once the client accepts the offer, the trucker can assign a vehicle and the driver and will be able to track the pickup and delivery of the shipment in real time through the driver’s phone. Both trucker and client may also track the shipment in real time.
Information about the assigned vehicle such as plate number, model, and driver information is visible to the client.
KargaX currently has sales and operations teams all over the Philippines located in the National Capital Region, Cebu, Bacolod, Davao, and Cagayan de Oro. The platform has more than 1,000 enrolled vehicles in NCR, 655 in CALABARZON, 386 in Central Luzon, 148 in Ilocos, 176 in Central Visayas, 179 in Davao Region, and 132 in Northern Mindanao. – Roumina Pablo
