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Ugandan Brothers lead shift in logistics industry with new digital logistics firm 

watchdog by watchdog
5 years ago
in Business
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Transport Engineering PhD graduate Daniel Emaasit from the University of Nevada in the USA together with his brother Tobias Tukei who has been in the logistics industry for over 7 years teamed up  to start on demand warehousing and logistics firm  Logistify AI and they believe this company will tilt the logistics and warehousing industry on its head.

 The Covid 19 pandemic is causing a good amount of Panic  across the industry and Emaasit believes their start up is the solution to rapid response support during this time through providing speedy ware housing services for essential commodities like masks, food, sanitizer and essential medicines that are highly needed now.

Tobias Tukei
Tobias Tukei

Their pay as you go model gives you the flexibility of using the facilities under their management starting from a few hours to  days, months and much longer that traditional logistics firms don’t.

The old business model in the industry was built on locking down clients into inconvenient long-term contracts something Emaasit and his team want to change.

Breaking Out

 Logistify AI started operations in July last year and the company has been growing steadily month on month. They have since on boarded a number of leading ware house owners like Equator Catering Services, BAT Uganda ware houses in Jinja, Rafiki Property Services, East Africa Investment,  Sarjan Property Agencies and Creston Business park to mention but a few. 

Through his experience working for DSV Global, Tobias Tukei the company’s co founder realised ware house owners do have seasons of low or no business at all.

one of the warehouses they have on board
one of the warehouses they have on board

Combining their experience growing up in rural Eastern Uganda to parents who were farmers and owned a ware house with the challenges Co-Founder Tobias Tukei saw in the logistics industry as he worked, he got a good understanding of the bad and good seasons in the industry and the company as a result is equipped to help clients navigate through them both.

During this lockdown due to Covid 19, the key products taking up large spaces in the warehouses    include food, sanitizer and soap which are critical for survival in this period.

 However more products including all fast moving consumer goods, light and heavy commodities including timber among other things will be added on as the lockdown eases.

International clients like Aqua Fish and Son Fish both makers of fish feeds based in Egypt have already trusted them as a service provider of choice and the numbers are set to rise.

Growth 

With close to 50 prospective clients already in talks with the firm, CEO Daniel Emaasit says the growth is promising.

Month on month growth figures show a 33% increase in bookings, a 120% increase in users and a 167% growth in listings.  Daniel Emaasit the company’s CEO believes they will break even with in a year’s time thanks to this rapid growth.

Another warehouse
Another warehouse

Challenges

Limited knowledge among warehouse owners about their product, some warehouses being hard to reach, internet access for the rural ones remains an issue to   yet a lot of the firm’s business’ is online leaving out some customers.

 

The Future

They are exploring how to roll out complete pick, pack and ship services with transport to the final destination from the warehouses as clients demand more of these.

Over  20000 usd about 75.7 million has been sunk into the business by the founding brothers with plans to expand across borders. 

Kenya, Rwanda, Tanzania are the next markets with  the entire continent being the ultimate target going forward says the firm’s COO Tobias Tukei.

New forms of storage space will also become available going forward with plans to have on board every one with a deport, vacant store, residential house and even vacant shop as a client on the supply side.

What sets them apart?

While most sites and companies in this sector list real estate in general, Logistify AI has put it’s focus on the ware housing, storage and logistics sector.

They also ease the monetary transactions in the sector as an intermediary and single centre for payments something that makes the work of the ware house owners and those hiring them easier. 

Affordability is embeded in their service as there is no extra payment charged to  customer besides a 10% shippers fee that is booked on the storage fee to ensure customers are not exploited.

Back and forth communication that goes into invoicing has also been reduced with customers being able to receive invoices through the Logistify app and make payments through mobile money, card payments and direct bank deposits.

Choosing to take on a digital approach to a largely brick and mortar logistics industry, the ease of scaling across borders is another advantage they intend to use  and build Logistify AI into a real force in the industry COO Tukei concludes.


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