The Benefits Of APIs For Transport And Logistics

The Benefits Of APIs For Transport And LogisticsThere is currently a lot of momentum in the travel, transportation and logistics sector with respect to Application Programming Interfaces (APIs). More and more often, non-technical companies see the opportunities that lie in APIs to revive existing revenue sources or establish new ones. A very comprehensive article on ProgrammableWeb.com laid out the current status and opportunities that APIs can provide to the travel, transportation and logistics sector. Also noted is the massive potential and interest from cities to transform into Smart Cities. The article mentions many examples where, for example, startups co-create value with transportation API providers via innovative solutions like screachTV, Toothpick or TransportBuzz. Another compelling example is what DHL achieved. APIs allowed them a ten-fold increase in partner integrations within a year. Due to internal optimization of operational efficiency, DHL achieved a 10% cost saving. Further $60 million in savings are estimated in the near future. Find more about the DHL Integrated Shipping solutions here.

APIs for Transportation and Logistics

APIs are a way to simplify managed and controlled access to an organization’s assets such as data or services. Generally, that leads to a combination of the following benefits:

  • Additional revenue channels or extension of existing channels
  • Wider reach (e.g., increase of an organization’s brand awareness)
  • External sources of innovation (facilitating the idea of open innovation)
  • Increase in operational efficiency

For more details about the business of APIs, we recommend the article “What is an API? Your guide to the Internet Business (R)evolution“. There are a number of other cases where organizations deployed APIs to considerable benefit; for example:

  1. Expedia established an affiliate network that yields $2 billion revenue per year – 90% of which is generated by APIs (source).
  2. Fitbit exposed APIs to leverage external sources of innovation and saved $1 million in R&D expenditure (source).

3SCALE provides an API management solution that covers the core aspects of exposing an API including usage policies, rate limiting, access control and security, analytics and reporting, API documentation, a developer portal, and monetization and billing.

We have a tiered pricing model with the first tier absolutely free – forever. So, everyone can test us totally risk-free. 3scale Transportation PartnersWe have a very strong track record of customers from the travel, transportation and logistics vertical including Transport For London, SITA, FlightStats, OCTranspo, or CabForce.

If you are interested, test us by signing up for our free Base Plan or request a demo

In related news, we would also like to share our involvement in the recent Smart Transportation and Energy hackathon that we co-organized with the Startupbootcamp Berlin where two of our customer APIs participated (Flightstats and TransiCast). You can read more about this hackathon in an earlier post on this blog.