How to be a successful transportation business owner in India? | LogiPe

How to be a successful transportation business owner in India?

Published By: LogiPe on August 23, 2022

The logistics and transportation industry is a major player in the Indian economy. It contributes a significant portion of the annual GDP and encompasses many jobs. The industry, however, is not without its challenges. In this article, we shall discuss the issues faced by logistics and transportation business owners in India and how to overcome them.


Caption: Running a successful transportation business involves many factors.

[Source: delivery vector created by vectorjuice]

Problems faced by transport owners in India

Despite being part of such an important industry, logistics companies in India face a range of problems. These problems can cut down on profits drastically. Identifying them is the first step toward tackling them. We list the most prominent ones below.

Poor infrastructure

Drivers spend a large part of their dispatch time on the road. Unfortunately, road infrastructure in India has a long way to go. Not all places are well-connected. Necessary amenities like fuel stations and dhabas can sometimes be tough to find. Further, bad roads can lead to excessive wear and tear on the truck, not to mention health complications for drivers. Accidents precipitated by these factors are not uncommon. Traffic congestion adds to delays on the road, driving down productivity.

Warehousing and parking problems are other issues which hurt the productivity of logistics companies in India. Loss of goods in the storage means that the owners lose out on investment. Parking fines and limitations make life difficult for drivers on the road.

Irregular truck maintenance

Trucks need regular care and maintenance to keep them in good shape. However, the cost of this maintenance can sometimes push shipping companies to cut corners in this regard. Unscheduled maintenance and irregular check-ups mean that the trucks are often in sub-optimal condition. In the long run, poor maintenance can cost more than regularly keeping trucks in proper shape.

Fuel expenses

It is a well-known fact that fuel costs are regularly on the rise. The rise in fuel prices aggressively cuts down on the profit margins for shipping companies. Increasing expenses force transportation business owners to either work with lower margins or increase prices. The latter choice could push customers towards competitors. Trying to minimize the number of trips is another option, but this places an excessive burden on drivers while not providing them suitable compensation.

Labour shortage

Drivers being underpaid is another problem faced in the logistics industry. Due to poor compensation, many chose to quit the field. There is a significant amount of labour turnover, which makes it difficult to have stability. Even when there are a sufficient number of vehicles, drivers are unavailable to drive them. This results in unplanned downtime and losses for shipping companies.

Drops in efficiency

In high-volume seasons, transport businesses are flooded with requests. Meeting many deadlines is challenging, and this often results in delays. Delays can push customers away from a company. The delays also slow down the cash flow, making it harder for the firm to stay on top of finances.

Slow payment processes

Several factors slow down the collection process in the transport industry. There are delays in billing from either the service provider or the customer. A proof of delivery needs time to be dispatched, slowing the process further. In addition, customers and vendors can be late on their payments, making matters worse. Without a proactive receivables collection plan, payment cycles extend drastically, hurting cash flow.

Difficulty in sourcing credit

Banks have strict obligations for credit which many transport business owners in India find difficult to meet. As a result, the owners often have to turn to other sources of credit. It is not easy to find a suitable credit provider who meets the proper needs of shipping companies. Choosing lenders with higher interest rates or stricter terms can result in bad debt for the company.

How LogiPe helps manage payments for transportation business owners

As we have seen, transportation and logistics is a low-margin industry. To maintain profits, owners must manage their finances very well. LogiPe helps achieve this on various fronts by helping streamline payments and ensure a smooth cash flow.

Receivables on LogiPe

Receivables on LogiPe is a feature that allows business owners to keep track of payments. Uploading relevant bills allows tracking the expenses. The owners can send the buyers payment links and reminders via text and WhatsApp. Any outstanding payments are easy to track so that collections can occur promptly. All these steps help smoothen cash flow and shorten payment cycles. As a result, income is available promptly, avoiding delays — further, receivables on LogiPe credit all payments into the master account, streamlining the process.

LogiPe card: digitizing payments

As we have seen, offline payments make paperwork longer, leading to delays in payment cycles. LogiPe Card introduces a solution for drivers on the road. The drivers can use the LogiPe card to make immediate purchases on the road, be it refuelling or food. All establishments which accept cards also allow LogiPe card payments. Partner fuel pumps provide 2% cashback on fuel transactions using a LogiPe card.

Further, the business owner can track all drivers’ spending via LogiPe cards and set limits if need be using the Logipe app. The process of card recharge is also centralized, with the owner able to recharge whenever needed via the LogiPe app.

Other benefits of using LogiPe

LogiPe provides more benefits on financial side for transportation owners, outside of streamlining payments. Here we introduce some of these.

FASTag benefits

FASTag is a mandatory feature on toll booths all over India currently. LogiPe allows you to obtain LogiPe for all your vehicles on the fleet for zero charges. Further, there are no transaction charges while doing FASTag transactions. Instead, there is a 1% cashback on all FASTag transactions.

LogiPe also allows fleet owners to recharge FASTag for their vehicles simply by using the LogiPe app. The app also issues new FASTag promptly when needed.


LogiDeposit is an investment option provided to specific users, allowing them to earn more profitable returns than means like fixed deposits. The interest rate of 8%, applied annually, is higher than FDs. This interest is credited daily, provided the user deposits the amount for a minimum of 15 days. The starting amount is ₹1000, up to a maximum of ₹ 5 lakh.

This feature provides a reliable long-term source of regular revenue.


Becoming a successful transportation business owner in India involves many factors. The industry is very competitive and requires owners to stay on top in various areas to remain profitable. We, at LogiPe, provide financial solutions for transport business owners. Visit our website to know more about our products.