If you are an entrepreneur interested in starting an online trucking business, then this entire blog is dedicated to you. In this blog, we provide you all the step-by-step information from workflow to the cost of starting a business to kick start your entrepreneurial career.
Before getting started, let’s discuss why to invest in an online trucking business now
Table of contents
- Reason for the growth of trucking business
- How does an online trucking business operate?
- Top players in the trucking industry
- 6 steps to start a successful trucking business
- Features to be considered
- Cost to start an online trucking business
- Summing up
Reason for the growth of trucking business
According to the report, the global market of the trucking industry reached $4.2 trillion in 2020 and is expected to attain $5.5 trillion by 2027. This proves the success of the trucking business and motivates many entrepreneurs like you to start their business.
There are several reasons contributing to the growth of the trucking industry,
- Constant cash flow
- Number of investors ready to invest
- Technological advancements
- Global opportunities
How does an online trucking business operate?
- Sign up using a mobile number or email address
- Submit necessary legal documents
- Receive shipping request
- View the shipment details
- View the route by using the live tracking option
- Deliver the shipment
- After successful delivery, payment will be credited to their account
- Register via email or mobile number
- Search for vehicle of appropriate size and send the request
- Receive shipment details
- Track order status
- Pay for the orders
- Rate and review the experience
- Manages all the activities done on the platform like current and completed shipments, order requests, and so on.
- Transfer the payments to truckers
- A certain amount will be collected as a service fee.
Top players in the trucking industry
- Trucker path
The trucker path is the fastest growing trucking company founded in the year 2013 by Ivan Tsybaev and Victor Radchenko.
Truckerpath provides a wide range of solutions for both shippers and truckers to find their trucks, weigh stations, and so on. It has nearly 7,00,000 drivers and is still counting on.
Dolly is a US-based trucking company started in the year 2013 by Chad Wittman, Jason Norris, Kelby Hawn, Micheal Howell.
It allows the shippers to request a truck to take things from one place to another and can also schedule the rides instantly.
It helps in providing safe and efficient services for the shippers.
Lugg is an on-demand trucking app founded in the year 2014 by Eric kreutzer, Jordan brown. It offers services for store delivery, Craigslist furniture delivery, storage moves, and junk removal.
Lugg offers two kinds of services including scheduling your delivery upto 30 days in advance or requesting an on-demand service and getting your services done in 30 minutes.
Buddytruk is a US-based on-demand trucking app founded by Brain Folley, Russell Tuchman, Ryan Salmons, Tim Kolenut in the year 2013.
It allows the shippers to book a truck to deliver their shipments from one place to another within just a few minutes.
6 steps to start a successful trucking business
Step 1: Create a business plan
A business plan is the first step when you decide to start your own online trucking company. Listed below are the factors that should be considered while creating your business plan,
- An executive summary
- Analysis of market trends
- Financial prediction
Step 2: Legal Requirements
After creating your business plan, it is important to register with state and local government bodies. The following are the basic rules to start an online trucking business,
- The driver should get a commercial driver’s license
- The vehicle must have a registered gross vehicle weight exceeding 26,000 pounds or 11, 7797 kgs with two axels.
- Vehicles with multiple axels have no weight requirements.
Step 3: Buy your assets
When it comes to the trucking business, it is necessary to buy all necessary assets like trucks whether it might be used trucks or new trucks. Buying a brand new truck may lead to less repair, maintenance when compared to buying a used truck.
Step 4: Insuring your fleet
Insurance coverage is the most important aspect in every business to avoid any risks. Protect your trucking business from unwanted financial burdens by insuring your fleets. Insurance should cover risks such as any damages occurring to your vehicles in case of road accidents.
Step 5: Set a budget
A key factor in starting an online trucking business is to set a price that should be affordable. Setting up an affordable cost will attract potential users.
Step 6: Build your app for your trucking business
It is most important for every business to have an app so that they can connect with more potential users. Having an on-demand mobile app will lead to many benefit like,
- Boost customer engagement
- Build brand awareness
- Remain competitive
- Increase profit
Proof of delivery:
The driver needs to send the proof of delivery by just uploading the images after delivering the successful shipments to the exact location.
The driver has the option to message the shippers to clarify their doubts regarding the shipments.
Dashboard displays all the necessary information regarding shippers, truckers, bookings, and overall earnings.
Alert and notification:
Admin can send a notification to the driver in case of any route or location changes and send shipping details to the customers.
Shippers get the push notification and alerts via the app regarding the shipment details along with driver details.
Geo-Location & Routing:
Enhancing the experience of the user with the availability of tracking features. It helps the shippers to track their shipments in real time including their deliveries, the routes, and the drivers’ locations before or after pickup. It also helps drivers in optimizing the routes.
Availability of payment gateway is one of the most convenient options for shippers. Shippers can have an option to pay for their shipments via multiple payment options like the card, cash, or wallet.
How much does it cost to start an online trucking business?
There are a number of things to consider while estimating the cost for starting an online trucking business. Factors contributing to the cost includes,
- Permit fee
- Heavy vehicle use tax
- State specific permits
- Payroll insurance
- Fuel cost
- Maintenance and repairs
Cost to build an on-demand apps
When it comes to estimating the cost of app development, it depends on several factors includes
- Number of hours invested
- Technology stack used
- Number of developers
- Number of platforms
- Based on complexity
- Third-party integration
- Based on designs
All these factors above mentioned are the key aspects to consider while starting building your own trucking business.
We’ve discussed everything you need to kick start your online trucking business. Now it’s your turn to create a strong business plan and choose the best software solution to get started.
Thanks for reading this. Cheers.
About the author:
*Mohamed Natheem, Digital Marketing Executive at RadicalStart Infolab. He can be reached via [email protected]