These emarketplaces provide Internet solutions that connect users and providers of transportation services at a neutral site. Recognizing the golden opportunity in this space, service providers are emerging at lightning speed to try to establish a sustainable niche for itself. In a new report titled Driver's Seat Still Open - A Closer Look at Logistics eMarketplaces, IDC analyzes the developments in the B2B transportation emarketplace and profiles the key service providers emerging in this space. According to IDC, the service providers currently in the space provide either contract management services or spot transaction services, the latter being more prevalent.
Most providers also focus on only one mode of transportation.
Currently, service providers are racing to build up transaction volumes at their respective sites and are trying to build liquidity by focusing on point solutions. Once customers are brought to the site, the real challenge for service providers is to integrate legacy systems and to ensure smooth execution of their applications under battlefield conditions. While there is definitely room for multiple players, IDC predicts the industry will witness a significant shake out and consolidation over the next 12 to 18 months. There are already players making their move in this direction. It describes the current trends, competitive landscape, and challenges facing vendors and makes recommendations for service providers trying to establish a sustainable niche in this space.