Kobo360, the logistics startup backed by Goldman Sachs, has introduced HaulSight, a subscription-based fleet management software, as a strategic move to expand revenue channels. This new platform enables companies to monitor their fleet’s activities, optimize route planning, and access discounted invoices, offering significant operational improvements. HaulSight is tailored for large corporate clients, including manufacturers like Flour Mills and Dangote, and FMCG giants like Unilever—all of whom rely on both in-house and third-party logistics providers.
Distinct from Kobo360’s traditional truck-hailing services, HaulSight is a pure software solution, focusing on fleet optimization without engaging in the sourcing of trucks, driver management, or handling of transit liabilities. “The businesses can vet and onboard their truck drivers themselves on the app,” shared a source close to the company.
Tackling Market Pressures and Maintaining Profitability
HaulSight’s launch comes at a pivotal moment, as surging fuel prices tighten margins for truck drivers, compelling Kobo360 to reassess its commission structure. The company faces a delicate balancing act between drivers, who push for higher fares, and cargo owners, who prioritize affordable logistics costs to keep consumer prices down. This shift towards software could help Kobo360 navigate these pressures, adding a steady revenue stream independent of its aggregator model, where margins are squeezed by competitive demands from corporate clients. Over the past few years, Kobo360’s commission fees have dropped from 20% in 2019 to 8% by 2021—a clear indicator of the negotiating power that corporate clients wield over truck-hailing services, a trend less pronounced in the consumer-focused taxi-hailing sector, where companies like Uber and Bolt have steadily increased rates.
Positioning HaulSight in a Crowded Market
While fleet management software offers a promising revenue model, it’s a competitive space with established international providers charging $7–$50 per vehicle monthly, and local providers averaging ₦100,000–₦150,000 per vehicle—a range affordable for large corporations but steep for smaller enterprises. For logistics providers, targeting big clients often requires patience, as enterprise sales cycles can stretch over months or even a year.
“Kobo360’s longstanding relationships in the B2B logistics sector could help speed up HaulSight’s adoption,” said Alex Adenuga, CEO of B2B logistics company Movam. However, even with a strong market presence, switching costs can be high. Adenuga noted, “One popular Nigerian manufacturer has relied on Nova Truck for years, making it difficult to switch providers smoothly.”
Fleet Management: A New Industry Direction for Logistics Startups
Kobo360 isn’t the only company exploring fleet management solutions. SendStack, another logistics startup, recently moved away from its aggregator model, pivoting to sell fleet management software to fleet owners. An industry expert noted that software is an easier sell to venture capitalists than logistics alone, as it offers visibility into logistics inefficiencies that remain a pain point for large manufacturers and FMCGs.
For Kobo360, HaulSight represents a chance to leverage its current network of over 50,000 trucks, including micro-fleet operators, to generate new value through optimized fleet management. As the demand for efficient logistics operations grows, HaulSight could offer Kobo360 a distinct advantage, providing crucial insights to an industry often described as chaotic.
By launching HaulSight, Kobo360 seeks to transform logistical pain points into opportunities, helping clients make the most of their costly assets and offering them a clear path to profitability in an increasingly challenging logistics environment.