How has start-up and logistics sector fared in 2019 and outlook for 2020?

The use of technology, primarily the internet has helped start-ups to be more aware of the challenges and opportunities in their respective businesses.

Jan 28, 2020 02:01 IST India Infoline News Service

Sachin Haritash
''The Start-up and Logistics sector has had a consistent performance even when the market conditions were moderate. As per a report of IBEF (India Equity Brand Foundation) India attracted $1.70 billion worth of Foreign Direct Investment (FDI) in 2019. The past two years saw major contributions by the services sector to India's Gross Value Added (GVA). Numerous organizations, mainly in the consumer goods and F&B sector started outsourcing some of their activities such as transportation and packaging. Outsourcing saved time for organizations to focus on their core operations. And this is where the demand for start-ups and logistics services providers increased.  The whole start-up trend that began back in the late 2000s was a game changer in the Indian economy as enterprises focused on a B2C approach rather than the B2B approach, which was earlier considered the best way to ensure longevity for businesses. The use of technology, primarily the internet has helped start-ups to be more aware of the challenges and opportunities in their respective businesses.
 
As of 2019, India is home to 8000+ start-ups and as per a recent report by NASSCOM, it has given employment to more than 2 lakh people. Apart from this, efforts of government through initiatives such as Make in India and Start-up India has encouraged and given an opportunity for people from rural markets to be full-fledged entrepreneurs. It has further managed to establish a strong bond between the urban and rural markets. The logistics sector too has been a major source of employment in India. The recent shift of businesses to execute their logistical functions through a digitized platform has proved to be time and cost-efficient, which in turn makes the entire end-end transportation hassle-free. Digitization has given a ray of hope to the trucking business, which was turbulent in terms of employment. Mavyn, a digital logistics and truckload transportation company is a good testimony of both the start-up and logistics sectors. As a start-up, it has managed to cover 30 districts and 500+ routes in less than a year. And as a logistics enterprise, Mavyn is based on digitization where it offers round the clock services along with verified end-to-end transportation. This has brought a sense of relief and trust to shippers and truckers. To sum it up, Start-Ups and Logistics companies like Mavyn are continuously innovating on the basis of the market trends and year, 2020 may see breakthroughs of effectiveness and efficiency in these two sectors.''
 
The author, Sachin Haritash is Founder & CEO, Mavyn

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