After B2C Grocery Space, Here's Why an Auto-Rickshaw Aggregator Is Diving into B2B Logistics
"There is no reason why the B2B logistics segment can't be cracked"
Jugnoo, an auto-rickshaw aggregator, jumped into exploiting the hyperlocal space by buying out SabKuchFresh to power up its grocery delivery service ‘Fatafat’. Less than a month after this announcement, the company has now decided to explore the on-demand B2B logistics space with the launch of Dodo Deliveries.
How does it work?
It is an omni-channel, on-demand, hyper-local logistics service which is enabling vendors to deliver products to their customers when, where, and how they want it while ensuring a seamless delivery experience. This is a dual concept that not only adds to the array of services offered by Jugnoo, but also claims to help the local merchants and vendors to scale their businesses.
Tackling a tedious sector
The enterprise logistics arm of business has been under a lot of scrutiny after startups having failed to cope with the challenges of managing logistics costs, recruiting efficient manpower and failure to retain customer loyalty.
Speaking about the challenges of this sector, Samar Singla, founder and CEO of Jugnoo told Entrepreneur Media that since Dodo uses Jugnoo auto-rickshaw drivers for logistics, there are no manpower issues faced. “We already have a well established network of 12,000 auto-rickshaw drivers. Dodo is unit economics profitable from day one. The segment is indeed challenging but with a focused approach and attention to unit economics, there is no reason why the B2B logistics segment can't be cracked,” he said.
Details about the logistics arm
Dodo is integrated with Jugnoo, which gives the drivers an additional source of income by taking delivery requests when they are not taking any ride. Apart from optimally exploiting its existing auto rickshaw fleet, Dodo has also aggregated other means of deliveries such as two-wheelers and commercial vehicles.
Dodo is currently doing 200 deliveries per day and aims at delivering more than 500 orders per day in the next one month. Talking about the business model; there is no stipulated size for minimum order and charges for delivery start from as low as Rs. 30 per delivery.
Currently operational in Chandigarh tricity, the services will be implemented in Indore, Gurgaon and Noida in two weeks’ time. Moreover, Jugnoo intends to launch ‘Dodo’ in morethan 15 cities in the next 2 months.