The space for heavy freight transportation has witnessed big developments in 2019, with Trukker in Dubai raising $23 million, and Trella in Cairo raising $600,000. Now, Lorryz joins the race. Adnan Ahmed, co-founder and chairman of Lorryz Transport, said that there was a massive appetite for investors to enter the heavy transport sector in today’s fast-paced world.
Last January, the UAE-based startup raised $ 1.4 million in initial financing from the Emirates Development and Investment Center, a commercial and financial consulting firm, and i-cell Telecom Group, a company that specializes in investing in the communications and technology sector.
Ahmed explained this unique demand to Waya saying that, “There are tremendous benefits from using technology to improve this sector, and investors have become aware of this,” pointing to the multiple problems facing the heavy transportation industry in the Gulf region.
The first of these problems is that the heavy transportation sector is very fragmented, and companies are forced to carry more loads than the bearable capacity of their trucks. Additionally, they suffer great losses as a result of having to return these trucks on the roads while being empty. This leads to shippers wasting time in rate negotiations, and suffering due to lack of efficiency, transparency and visibility in the whole process. Moreover, customers and companies complain of a lack of transparency in the whole process.
According to Ahmed, “Modern technology bridges all of these gaps, through a highly efficient process of linking supply and demand with business development, and reducing carbon emissions.” Through its mobile application, Lorryz makes it easier for companies to request transportation cars, obtain quotations, and follow up on their shipping processes. It also works to help buses work with an optimal itinerary to reduce travel times without empty haulage.
Major Developments In The Heavy Transportation Sector
Lorryz Transport is currently operating in the United Arab Emirates and Pakistan, and is trying to experiment with opening the platform to individuals instead of limiting it to companies only. Additionally, the company plans to expand in the near future to Iraq and Kenya. Lorryz is the latest competing company in this sector, which during 2019, witnessed several developments.
“We believe that regional startups will pave the way for giant companies, which will decide at some point to enter the region.”Adnan Ahmed, Founder & CEO, Lorryz
When asked about the subject, Ahmed commented saying, “The opportunity is still open for new players. It is a very big sector, and the market still suffers from a lot of problems. Having competition is very healthy, as it will contribute to improving the technologies available to customers, and guarantee them better prices.”
Ahmed adds that the Lorryz team boasts professionals in logistics, shipping and maritime transport, and they all acquire multiple years of experience in the sector in global markets, which adds great value to the company’s ability to understand the challenges of the market.
Furthermore, Ahmed says that these companies succeeded in reaching their goals in a relatively short period of time because they work in the United States, which is a huge market, but also the introduction of modern technology in the region is much more prevalent than it is in the Gulf region, where companies face problems related to drivers’ acceptance of modern technology, and an even bigger problem – the rules and laws of cross-border traffic.
“We believe that regional startups will pave the way for bigger companies to enter the region, but it will take time due to all of these complications,” Ahmed added.