RTI decay
Nineteen years ago, on 12 October 2005, India took a bold step toward enhancing transparency and accountability with the enactment of the Right to Information (RTI) Act.
Rivigo, a technology-enabled logistics company, launched the National Freight Index (NFI) with an aim to bring transparency to the logistics industry. It provides a live spot rate on over 7 million lanes and vehicle type combinations in the country.
NFI offers live rates and trends of spot price movements in the road freight industry.
Rivigo co-founder Gazal Kalra said, “In the existing logistics market structure, there are high inefficiencies due to information asymmetry, which leads to a great loss of value.
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NFI will enable unrestricted access and sharing of freight rate information. This will bring transparency in the market and propel the logistics sector towards efficiencies and growth.”
Both the index and the exchange are based on Rivigo’s machine learning and economics powered pricing algorithms, which are continuously improving on accuracy.
The road freight market for 2018 is estimated to be in the range of $150 to 160 billion.
About $130 to $140 billion of this is the full truck load (FTL) market.
Within this, Rivigo estimates that the spot freight market is about $110 to 130 billion and is growing at 9 per cent to 10 per cent every year. Efficiency of the spot freight marketplace will determine how this growth is compounded and NFI will empower all stakeholders to realise its full potential.
Rivigo founder and CEO Deepak Garg said, “Since its inception in 2014, Rivigo has emerged as the largest and the fastest growing technology enabled logistics company in India, owning a fleet of over 3,000 trucks and 5,000 drivers.
“It is estimated that there will be shortage of around 50 per cent drivers by 2022. To cater for this, we came up with the idea of relay drivers who will help to overcome the shortages and save time and improve the work culture in the truck driver industry,” he added.
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