Kobo360, a prominent player in Africa’s logistics landscape, has announced the development of HaulSight, a new fleet management software designed to support the continent’s largest businesses in optimizing their logistics operations. The subscription-based platform aims to provide companies with advanced tools for tracking vehicles, planning routes, and gaining access to invoice discounting.
HaulSight represents a strategic expansion for Kobo360, targeting established clients like Flour Mills, Dangote, and Unilever. Unlike its core truck-hailing service, HaulSight is purely software-based, giving companies full control over vetting and onboarding their drivers while sidestepping direct involvement in logistics or cargo responsibilities. This approach enables Kobo360 to diversify its offerings without assuming the operational liabilities associated with its truck-hailing platform.
This launch comes amid rising costs in Africa’s logistics sector, as fuel price hikes continue to squeeze the margins of truck operators. In response, Kobo360 has had to revisit its commission structure, a balancing act between ensuring sustainable earnings for truckers and meeting the price expectations of its corporate clients. In the past few years, Kobo360 has notably lowered its commission rates from 20% in 2019 to 8% in 2021 to accommodate these pressures, a stark contrast to the gradual commission increases seen in the ride-hailing industry.
Fleet management software offers a promising revenue stream for logistics providers like Kobo360, allowing the company to serve corporate clients and small fleet operators without the complications of the aggregator model. Alex Adenuga, CEO of logistics startup Movam, notes that fleet management software can bring substantial cost savings for companies, though it faces unique challenges. “For VC-backed firms, the B2B market size may not be large enough to support expected growth, but there’s a real demand for visibility and control over logistics operations,” he explains.
Pricing remains a hurdle, with international fleet management software providers charging $7-$50 per vehicle per month and local firms offering rates between ₦100,000 and ₦150,000 per vehicle, limiting accessibility for smaller businesses. For larger corporations, however, these solutions can streamline operations, but the lengthy sales cycles—often taking up to a year—are a common obstacle in Africa’s corporate landscape.
Kobo360’s established reputation in logistics since 2017 gives it an edge in accelerating sales and building trust, which could be critical for gaining traction with HaulSight. However, some companies remain reluctant to switch from familiar solutions due to high transition costs, as seen with longstanding users of platforms like Nova Truck.
Despite these challenges, other logistics startups are also exploring the fleet management sector as an alternative to aggregator-based models. SendStack, a startup focused on last-mile delivery, has shifted its approach to prioritize fleet management software for local operators, seeking to tap into the growing demand for logistics transparency.
Industry insiders suggest that improved fleet management is essential for the logistics sector’s growth, especially for businesses managing costly assets. With HaulSight, Kobo360 aims to address these operational needs, offering African companies greater efficiency and control over their fleets. As the demand for seamless logistics solutions continues to rise, HaulSight positions Kobo360 to deepen its footprint in the B2B logistics market and potentially reshape the future of fleet management in Africa.
