Did you know trucking is the largest player in the transportation and logistics market with 35% of market share, followed by passenger ground and shipping with 26% and 17%, respectively? As one of the major players of the world economy, accounting for 5% of total GDP, the transport industry is highly competitive. And, it seems to have no room for new startups and entrepreneurs.
But …
There Is a Hack For Everything
The transportation sector does have opportunities for entrepreneurs, who want to make it a career. You want to make your future in the transportation sector? You can. It may be complicated but possible with the right business ethics and proper business planning.
In this post, we will discuss what you need to avoid competition in the transportation business. But to start with:
Transportation Business Market Glimpse
- $72.3 billion is the total value of the global Intelligent Transport System (ITS) market projected to be on roadways by 2022.
- 35% of the total logistics and transportation sector is dominated by trucking and logistics.
- $1.3 trillion was a projection for the U.S. market size in 2019.
- $27 billion is the projection for the global logistics market to reach by 2023.
These are some statistics about the transport industry to understand how you can make the best out of it. As far as beating competition in the transport business is concerned, you need to think strategically.
What Strategies You Should Apply
When it comes to strategies, you need a little bit of research based on your region and location, where you want to set up your business and serve customers. Then decide:
- The type of transportation service you offer
- The quality service you provide
- The technology you invest in
- Etc.
Why the Transportation Business Niche Matters
Did you know “competition” is one of the biggest challenges in the transportation sector that you have to face? According to FinancesOnline, transport and logistic business owners believe that stiff competition is their most significant barrier, followed by stagnant global growth, commoditization, labor costs, and more.
So, to stay competitive, you need to confront the challenges that the transport business is facing. Then come up with a suitable transport business idea.
Avoid Popular Niches
Usually, people like to go with popular business niches, which is one of the main reasons they never beat the competition.
There are plenty of transportation services that are not popular yet most profitable. Dump truck businesses, bicycle rentals, and many others can be the best transport business ideas.
Top 5 Transportation Business Ideas
The business ideas suggested here are less popular yet very profitable. You can consider any of them to start with.
Courier Business
As online shopping is getting popular, courier services are also in high demand. People expect their products to be delivered to their doorstep as quickly as possible. All you need is to buy a vehicle, earn licenses, get permits, and start earning. You can reach out to your online stores and ask if they are willing to make you a courier partner.
Specialized Transportation
You can also choose to provide a niche transportation service, such as milk transportation, grocery transportation, livestock transportation, or others. Niche transportation is good for two reasons: first, you may not have to face stiff competition, and second, you can become a regular courier partner with companies in need. You also need a vehicle, business license, and permit to run this business.
Minibus Taxi
In many countries, including India and South Africa, minibus taxis are the primary source of local transportation. In this business, you may have less competition. You can help daily wage workers or other people who need transportation. There is room for growth in this business. You can expand your business and start serving people from various regions and localities.
Airport Transfer Services
Airport transfer services are lucrative and highly beneficial. You will get hundreds if not thousands of passengers every day to travel to and from airports. Some of them even need your service to reach their end destination. If this appeals to you, get a business license from local authorities, buy a vehicle, and start this business.
Dump Truck Business
The dump truck business could be the most profitable initiative if appropriately implemented. There are two ways you can start this business: first, you can create it locally if there is an opportunity. Second, you can do a little bit of research, find the right location with plenty of mining, construction, manufacturing businesses, and get started. Research how to start a dump truck business, take expert help and consider achieving business success in the dump truck industry.
These are some of the transportation niches which can be profitable, and you will face less competition. If you like any of the ideas given here, you can start exploring the business’s potential and conduct good planning before starting it.
Apart from the business niche, there are some other things that you need to consider to avoid competition:
Steps to Implement to Stay Competitive
The steps suggested here may vary based on the transport service you want to begin with. Let’s take a look at them and adapt them according to your business needs.
Quality Service
You know today’s customers like speed, comfort, and convenience. In transportation, delivering products to their destination in time will be a winning factor. So you need to dedicate your effort to transporting the load to the destination on time. It will earn you reliability and increase your retention rate.
Competitive Customer Service
Customer service is important, though it may vary depending on the type of business niche in the transport industry. For example, you may not need to have a dedicated customer support team for a dump truck business or airport transfer service. However, if you start a courier service, you need to have a dedicated team who will update customers about their shipment whereabouts.
Technology You Utilize
Technology is integral to the transport industry, like many businesses. Meaning, technology can help you manage everything from warehousing, freight forwarding, and customs clearance to tracking and visibility, reporting, customer service, and more. You can consider how technology can better support your business and help it grow.
Cost-Effective Services
Along with reliable and fast services, today’s customers also look for cost-effective services. Importantly, customers are tech-savvy, and they do a lot of research before making any deals, purchases, and bookings. So, ensure that you are providing services at a competitive cost. You can also consider rewarding your best customers. For example, you can consider offering reward points to your customers. They can exchange those points for money when they make a booking next time.
Final Thoughts
The logistics and transportation business has fierce competition, which has been exacerbated by the coronavirus pandemic. However, as the saying goes, “adversity opens up opportunities.” In the current situation, you can find plenty of business ideas in the transport industry. All you need is to choose the right niche, make a good business plan, and get started.
We hope you found this blog post Transport Business is Highly Competitive, But You Can Still Profit useful. Be sure to check out our post How Transportation Has Upgraded Over the Years for more great tips!
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