Road and air freight distribution specialist E-Gistics Ltd has earned a £131,000 government tax credit for research and development into a new online booking platform for smaller logistics companies.
The new E-Gistics digital platform seamlessly networks smaller, independent distribution companies together to lower their costs and improve efficiencies for themselves and customers. Hauliers, pallet members and forwarders can now digitise the way deliveries are carried out, working together to fix a price for end-to-end deliveries instead of doing so by email or phone.
This effort qualified for the UK Government’s R&D tax credit scheme, that either pays a lump sum or reduces an annual corporation tax bill.
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Fraser Harper, CEO of E-Gistics Ltd, said: “The freight forwarding sector has a digitisation requirement but some companies have been unsure how to go about it.
“In the end, it was probably inevitable that a third party software specialist would bring them all together and that’s what we’ve done.
“Digital freight is destined to become more like other areas of the transport sector where automation and digitisation have turned things on their head. Uber in the personal transport space is a prime example.
“We knew we were investing heavily in technology and tax incentives like these make it so much easier to continue to do that. The Government was clever to introduce this scheme. It encourages businesses to invest in technology and if companies don’t embrace digital, they don’t have a great future ahead of them.”
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Richard Armstrong commented:“Fraser and the team are a great example of a SME that is using the R&D tax credit regime to support the future growth of their business.
“Technology is at the heart of what they do and their innovations promise to revolutionise the way the parcel delivery sector functions, not just in the UK but across Europe.
“It’s important to remember that R&D tax credits still apply to projects that don’t succeed. There really is no good reason not to innovate with such valuable incentives on the table.”
Source: Apex Insight
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