1. B2B trucking across the MENATP region is a massive USD 80 Bn market…

The B2B trucking market is a massive USD 80 Bn+ market across the region. This number also includes the transportation done in-house; however, it still represents a sizable opportunity for players looking at the logistics space.

Further, there are numerous road infrastructure projects lined up across the region which will drive robust growth in the segment helping it become a USD 100 Bn+ market by 2025.

2. …that is marred with challenges for Shippers and Truckers

The B2B trucking value chain is quite complex with numerous challenges. In the below infographic we have outlined a simplified version of how the value chain looks like and who are the intermediaries.

Both Shippers and Truck owners (Truckers) face numerous teething challenges in an industry that is quite capital intensive and operationally taxing. The supply of trucks is quite fragmented across the region with Single owners having <5 trucks accounting for majority of supply.

Lack of price transparency, manual processes, poor load tracking, lack of reliability, hard Shipper/Trucker acquisition are few among the numerous challenges at play.

The fragmented nature of supply and long working capital cycle makes the case for intermediaries in the value chain who play an important role at present.

Note: 1. Brokers are individuals or SMEs who connect shippers with transporters/ truckers and charge a small commission. In most cases, they do not bear the working capital risk. 2. Challenges and solutions mentioned not exhaustive 3. Routes represent how a typical transaction could take place between various intermediaries

3. Numerous eB2B trucking platforms are at play in MENA region

Numerous Tech enabled Trucking platforms are at play in the region and are multiplying in scale on a yearly basis.

Trukker is the largest player in the region and has a presence across countries. Trella and Trukkin are other sizable players with a wide regional footprint currently.

List of sizable eB2B Trucking players in the region (not exhaustive)

1. Note: Number is Trella’s carrier partners figure as per press release on their website on 21 June 2021, post their recent fundraise.

4. …and are seeing increased investor interest, especially in Pakistan more recently…

Funding activity has picked up recently, especially in markets like Pakistan and Jordan which are relatively more underpenetrated at present and offer strong potential from the standpoint of intensity of challenges in the value chain.

Multiple sizable rounds have been announced over the last 2 years in the region.

5. …and the USD 0.2 Bn eB2B trucking market is entering a period of exponential growth with penetration levels at <0.3%

This market is set up for rapid growth at present. Funding inflow is strong, and players have the benefit of hindsight on how this industry has evolved in other regions like US, China, SEA and India.

The segment could multiple 7-8x over the next 3-5 year horizon and is one of the sectors to watch out for in the short to medium term.

MENAP eB2B trucking market size, 2020-25E