Pandemic Effect Will Quickly Digitize the 100 Billion Dollar Turkish Logistics Sector

Attracting Attention In The World With Its Digital Solutions Supported By Increased Intelligence, TIRPORT Sheds Light On The Digital Transformation Of The Turkish Logistics Industry

The Pandemic, which deeply affected the world, imprisoned 4.5 billion people in their homes for months at the same time. The microscopic Covid-19 virus, 125 nanometers in size, which cannot live without humans, has stopped life in the world. The world economy has entered a period of recession unprecedented in its history. The parking spaces at the airports were not enough for tens of thousands of planes that could not fly, the oil consumption of 100 million barrels per day fell by 30%, and the global energy demand decreased by 15%. Over 150 million employees lost their jobs in 4 months.

If The Trucks Are Working, It Means The Factory Chimneys Are Smoking

In this process, hundreds of thousands of trucks were on the road every day to feed the people in quarantine and deliver the needed goods on time. Logistics once again reminded how strategic a sector it is for the survival of humanity.

The size of the logistics sector in the world has reached the level of approximately 5 trillion dollars as of the beginning of 2020. It is expected to grow by more than 30% in the next 5 years and reach a size of 6.5 trillion dollars.

In transportation, which is the most important leg of the logistics sector, 3 main products draw attention: 2PL, 3PL and 4PL. Most of the logistics activities take place in the “3PL” category. This category refers to the contract management of the journey of the goods between the manufacturer and the customer’s warehouse by logistics service providers.

3PL means the temporary storage of the manufacturer’s goods served by the logistics company before shipment to the customer, their transportation when the time comes, and the fulfillment of the processes of safely delivering the product to the customer’s warehouse under appropriate conditions.

Global Giants Invest Billion Dollars In Digitalization Every Year

World giants, each of which has a valuation of ten billion dollars, take place as global actors in this sector. Among them;

JB Hunt Transport Services, CH Robinson Worldwide, Ceva Logistics, FedEx Corp., United Parcel Service (UPS), Expeditors International of Washington, XPO Logistics, Kenco Group, Deutsche Post DHL Group, Americold Logistics, Maersk Group, Panalpina, Nippon Express, We can count Schenker, DSV Air & Sea.

Logistics giants have placed digitalization at the center of their strategies for the last 3 years. They invest billions of dollars every year. UPS bought the US new generation digital logistics company Coyote for 1.9 billion USD, logistics giants such as FedEX, DHL, Maersk, CEVA, XPO, DVS established venture capital companies. They started investing billions in logistics technology, warehousing and autonomous technologies, innovative start-ups in these areas. UBER has achieved a turnover of 500 million dollars in 2 years in the market it entered as a digital logistics operator in the USA, and is entering other markets with an aggressive growth strategy. Digital competition in the market is increasing rapidly.

Europe’s Largest Logistics Market Is On The Best Of Digitalization

In Turkey, where 92% of the transportation is done by road, 850 thousand trucks are on the roads. Every day, 450 thousand trucks are loaded, an average of 280 km. transport is in progress. 1.2 million truckers eat directly from this business.

The freight charge paid in one day in Turkey is over 1 billion TL. In the sector, where nearly 8 thousand large and small logistics companies serve, the 2 largest logistics companies do not have a market share of even 1% in the market.

The Turkish Logistics Sector, where 95% of the trucks on the roads belong to individuals, is preparing to transform with digital technologies that provide smart operation management tools and provide shortcuts to quickly reach cargo and reliable truckers.

TIRPORT Targets 7% Market Share In The Logistics Market In 5 Years

TIRPORT, a logistics technology startup from Turkey, has been growing rapidly in the market in the last two years with its innovative digital solutions. Many large logistics companies and manufacturers started to prefer TIRPORT in order to manage their logistics operations effectively. Increasing its business volume by more than 50% in 3 months during the pandemic process, TIRPORT aims to manage over 120 thousand transports per month by the end of 2020. It aims to increase the number of truckers, which has reached 40 thousand, to over 200 thousand within 2 years.

TIRPORT was selected as one of the “20 Startups to Become a Unicorn” in the finals in Hangzhou among thousands of candidates in the world’s largest startup competition create@alibaba held in China in 2019.

The FreightTECH market, where the US Coyote, Convoy, KeepTruckin and Flexport, the Chinese Manbang, the Indian Rivigo, Delhivery and BlackBuck have turned into billion-dollar companies, continues to grow rapidly.

According to the Global CrunchBase index, which closely monitors international technology companies, startups and investments and ranks them according to their categories and regions with various algorithms, TIRPORT has started to be among the top 20 in the world in the %22logistics technologies%22 category in May 2020 rankings.

Aiming to reach 200 thousand truckers in 2 years and manage over 300 thousand transports per month, TIRPORT continues to play a leading role in the industry 4.0 transformation of the market.