Logistics service providers help businesses manage their supply chains, including warehousing, inventory management, shipping and returns. They have undoubtedly become a prominent part of all supply chains. In India, third-party logistics, which largely operate as an unorganised sector, face several challenges. This study is primarily focused on analysing the challenges faced by Indian logistics providers in road transportation. The challenges identified through literature review and expert interaction are analysed and ranked with the help of the Analytic Hierarchy Process, which is a Multi-Criteria Decision-Making tool. The results show that cost and availability challenges outweigh quality and technology challenges. The most significant challenges, as obtained from the results of the study are increasing operating costs, frequent vehicle breakdowns, increasing traffic congestion in Indian cities, low supply chain visibility, theft and highway robbery, complexities of scheduling and lack of skilled transportation and logistics workforce. This will also help policymakers identify and prioritise the areas of improvement.