Around 14.4% of India’s GDP is spent on logistics as compared to less than 8% spent by other developing countries. It is expected that logistics market in India can grow to be worth $307 billion by 2020 and the unorganized nature of the sector will lead to a huge scope for tech driven logistics startups to flourish, according to industry experts.The development in ecommerce industry in India is difficult and slow unless there is progress in the logistics industry of the country which is promising and expected to grow at a rate of 9-10% per annum. This fact is seen as a major opportunity by the startups in the logistics field which are trying to aggregate the transportation or trying to create an online logistics marketplace.Logistics industry in India is interplay of technology, infrastructure and service providers which ultimately helps in reducing costs of their customers. The interplay of these essential pillars of logistics industry leads to some of the most complex problems faced by the same. The major problem lies in the insufficient integration of transport networks, creation and implementation of latest and useful technologies and inefficient use of warehouse and distribution facilities.In such situations, online market place for logistics is gaining momentum which provides freight owners, transporters and clients the convenience of connecting easily and in a short time. In traditional method of freight booking, transporters do not usually have information regarding availability of trucks and quotation of services. They do not have the power to put their own terms of business due to the middleman. This leads to high payment for freight services.Logistics marketplace has found a way out of this conundrum and has seen increased participation of all the stakeholders. The marketplace enables the business owners to have real time information of the freight movements. The owner can also choose the delivery vehicle according to his/her business needs which will effectively control costs. The fleet owners will be able to use their fleet efficiently by proper scheduling and real time visibility. Also, in such environment, small time carriers can also compete with large companies in open market.Where logistics marketplace is seen gaining momentum, truck aggregator startups have pulled the plug on operations. In 2016, out of 212 startups that shut down their operations, 6 were logistics tech startups. Around $119 million were invested in these startups. The perception that technology innovation in this sector would drive the growth of this industry proved wrong. Aravind Sanka, ex-cofounder of TheKarrier believes that the pain point of requiring truck on demand was deep rooted and not very pronounced which stood as a huge challenge. One of the major problems is that it is a credit-driven business which makes it difficult for starts ups to scale up. It is extremely challenging to fund a credit that may span up to 35-40 days.The startups who added technology aggregation to their business models to grab attention of the investors were left disappointed by the investors due to the number of startups shutting down in this sector. The investors who are wary of investing in logistics tech startup, believes that the thorough study and full stack view of the market might have helped. 2017 is said to be a landmark year with the introduction of GST and a push towards digital and cashless economy. Even though a lot of buzz and significant traction for technology enabled logistics startups is expected, only few resilient companies who are adding value to the chain will remain.These logistics startups are also bringing good to the society as a driver is earning more than what he used to because of lack of frequent availability of work. With truck aggregators a truck driver gets to work 20-25 days a month as compared to 15-20 days earlier.The $40-50 billion road freight industry in India is notorious for the lack of transparency in deals, arbitrary rates, all-cash transactions and delayed deliveries. Tech startups who address these issues will change the way this industry works by providing reliability and quality to its customers.For bringing in transparency, reliability and reducing costs involved in logistics, upcoming technology like Blockchain is foreseen as a promising technology for supply chain. Blockchain can bring transparency for the customers, transparency for auditors and enhance security as it is a public ‘distributed ledger’ whose copies are with everyone on the network and which is not very easy to tamper with which increases its reliability. This blockchain technology could couple with online logistics marketplace which will take the system to the next level with the help of smart contracts in supply chain, compliance paperwork through blockchain and add tremendous value to the system, thereby reducing costs and increasing profits of companies in logistics industry.