Top Logistics Startups to Watch in 2024
No matter, how you want to deny it, the energy and logistics sectors are shaping the world. They are connected and they are the reason & also the solutions behind many economic issues. Many entrepreneurs already notice that and build startups to solve today’s problems in these two subjects.
Logistics startups are basically responsible for the supply chain management of goods and services. The industry is one of the fastest-growing sectors in the world with a huge market size. According to BusinessWire, the US Logistics Market is estimated to be USD 175 Tn in 2022 and is expected to reach USD 236.41 Tn by 2027, growing at a CAGR of 6.2%. This means There is a huge potential there.
The market has been growing due to the increase in demand for order fulfillment, warehouse management, and tracking systems that are required in the logistics industry. The major players are expected to consolidate their positions in the market in the next few years and gain a higher share of the market. Let’s dive in.
The List of The Top Logistics Startups to Watch in 2023
Shipping a home office can cost hundreds of pounds in courier and custom fees, and it can take hours to navigate the tax compliance and administration associated with shipping equipment to other countries so that’s the solution they provide. Hofy make the world feel small for People Operations and IT teams. Their software and logistics turn hours of manual processes into seconds and reduce the mammoth task of provisioning and managing remote work equipment across the world to simply managing a SaaS tool. They combine and automate all the tools that companies need – from asset tracking and mobile device management (MDM), to a fully-fledged website – to set their new hires up for productive work at home and manage the equipment lifecycle effortlessly.
Freightos offers to automate the process of booking shipments and arranging for truck rentals, but also works to reduce lead times for shipments by working with carriers and shippers. They are making global trade frictionless with the world’s largest freight marketplace, logistics tech powering over 2,000 top-tier providers, and more. In 2018, freight-as-a-service startup Freightos announced that it had raised $20.4 million in Series B funding.
Locus is a global decision-making platform that automates human decisions in the supply chain to provide efficiency, transparency, and consistency in logistics operations. They are a leading-edge technology company dedicated to solving the most challenging last-mile problems in global logistics.
Shipnap enables retailers to ship their products via Amazon, which is a much cheaper option than hiring a logistics company. With this service, retailers save on labor costs and overhead expenses. Shipnap also charges retailers just for the cost of shipping their product.
Uber Freight is a freight brokerage company that connects truck drivers with shippers mainly in North America and Europe. They use technology to create more efficient and cost-effective freight transportation options for shippers all over the world, which has seen them grow at an average rate of 50 percent per year since their inception in 2017
Flexport is a freight forwarding company that offers customized solutions across borders, including customs clearance and international shipping through its network of offices located around the world. With its global reach, it has become one of the most prominent freight forwarding companies in the world by connecting importers, exporters, and all other types of trading partners with its global supply chain.
How to Choose a Logistics Startups to Use?
There are a number of factors that need to be considered when choosing a logistics tech company. Here are the top four things to consider:
1. The type of logistics service you need
There are many types of logistics services out there. You should first identify what type of logistics service you need and then find companies that offer this service to help you narrow down your options.
2. The level of experience in the field
Logistics is a tough industry and there is no shortage of competition out there. Therefore, it’s important to work with companies that have years of experience in the industry and have been successful in the past.
3. The cost
Pricing is an important factor when choosing a logistics company, but it should not be your only consideration as some companies offer excellent services at an affordable price while others might be more expensive but may provide better quality services than their competitors do.
It’s always good to read reviews about different companies before making your final decisions.
The logistics sector is booming because of the increase in e-commerce. The delivery time is becoming shorter and shorter, which means that there are more orders for distribution companies to fulfill. We all know that logistics startups are offing a new way of transportation. They are usually used to deliver goods and products. This can be anything from food to clothes, to medication. In the past, logistics companies were mostly focused on transporting goods from one place to another. Nowadays, they also have to deal with warehouses, packaging, and delivery services. It’s hard for a company to keep up with all these new changes if they don’t have the right tools in place. That’s why the need for logistics software is increasing.
Many logistics company offers on-demand, last-minute deliveries across the country. Some of them even use drones to deliver packages in minutes and ship them from their own fleet of warehouses. These new types of logistics company which doesn’t use trucks, but instead use drones and other robots to transport goods. Many of them will keep disrupting the traditional logistic industry with their low-cost alternative that minimizes emissions and congestion on the roads.