Logistics Marketplace’ Empowering the Transporters in Pakistan

To understand the dynamics of any marketplace, the first thing to identify is the stakeholders involved. Brokers exist as the ‘middle man’; they connect transporters to shippers, and it’s this connection that we’ll be focusing on in this segment.

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In Pakistan, brokers tend to take the shape of ‘addas’; central locations where smaller-sized transporters gather. These are necessary because there is no other way, beyond referrals, for these transporters to connect with customers

For these transporters, the return trip is as important as the order they take up in the first place. The prospect of taking on another order when coming back is vital, as obviously, the return trip is an expenditure of fuel and time. With the adda system, however, it is more likely than not those transporters will receive one-way orders, and be forced to return empty-handed.

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We can see that while the adda acts as a marketplace for transporters, it is more like something transporters are forced to participate in to stand any chance of obtaining any orders. There are many ways technology can be used to completely transform the market, but we’ll go through some of the more obvious ways small-to-medium sized transporters can find empowerment to hold their own in the market.

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