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Transporters are notoriously averse to change- be it investment in new trucks or technology or business process. This industry got its severest jolts of last 50 years in a span of just 8 months- Demonetization (see my article here) and GST !!

So how are they coping? Are they finally giving up their OLD ways?

Here are QUICK reactions in first TWO days post- GST:

• General feeling is of RELIEF- after all GST is not as disruptive on ground level as Demonetization.
• As most transporters are covered under GTA- they have no immediate need to connect to GSTN, worry about HSN, change IT too much.
• They were happy to see a good June- thanks to GST sales they had better business in what is normally a lean month
• With Octroi gone- big markets like Mumbai and Pune are now much more easy to handle. A Big Plus for GST

All in all- it is "Jaise The" for the industry- for now. Will it remain so?

Here are BIG threats to transporters in coming months:

• GST is consumption point driven- thus Delivery TAT and Real Time Status matter ever more to shipper. LOT OF TECH
• As customers consolidate warehouses- they need MORE distribution power- that is smarter, agile, visible fleet- MORE TECH
• To benefit from Consolidation- Transporter has to become 3PL and provide end to end service. NOT POSSIBLE WITHOUT TECH.
• As E-way bill gets rolled out by 2018- data needs to be transferred to transporter in REAL TIME before they start journey- EVEN MORE TECH

A boring industry is now very very interestingly poised. Now, it is not a matter of WHETHER but WHEN will this industry adopts massive change and invests in TECH like their startup peers like Rivigo and Blackbuck.