Hyderabad-based truck aggregator TruckSumo.com has suspended its services, as signs of distress become evident in a segment that lured several startups and investors over the past couple of years. The company had been facing difficulties in continuing its operations for some time. The devepment was first reported by TechCircle.
An executive at the company’s customer care centre said that the firm has stopped taking orders since June 1 and that there is no clarity when the services will resume. The reasons for the company suspending its operations couldn’t immediately be ascertained.
However, co-founder Nithin Baalay denied the company is shutting down. “We are still operational in Hyderabad and Bangalore, serving some of the top companies in the market,” he said in response to an email query from Techcircle.
TruckSumo was set up by Nithin Baalay, Arun Rao and Abhishek Bajpai to organise the intra-city transportation problem. The startup is an aggregator of mini-trucks and connects businesses having local logistics needs in real-time with service providers who can fulfill those needs. The trio want to rewire the intra-city logistics sector with their venture.
Over the past two years, a number of startups have entered the road transport sector seeking to bring changes in an industry notorious for the lack of transparency in deals, arbitrary rates, all-cash transactions and delayed deliveries.
Online truck aggregators such as TruckSuvidha, Porter, BlackBuck, GoGo Truck, FreightBazaar, Moovo, Turant Delivery and CargoExchange have been trying to bridge the gap among companies, warehouses, transporters and truck drivers to ensure on-time deliveries and optimum use of fleet capacity. Many of these startups have raised funding from marquee investors including Tiger Global, Accel Partners and Sequoia Capital.
TruckSumo’s apparent troubles come at a time when startups across sectors are reeling under a fund crunch as investors turn cautious. Over the past six months, only one logistics startup—GoGo Truck—has raised funding.