What is Jugnoo?
Co-founded on 1st of November 2014 by Samar Singla and Chinmay Agarwal, Jugnoo is a hyperlocal on-demand multi-service provider which employs autorickshaws as its logistic partners. The startup has three wings of services with their respective apps. It not only offers transportation facility to the users but also provides delivery services.
What services does it offer?
Jugnoo extends three kinds of services to its users:
- Jugnoo Autos on Demand: This service lets you book an autorikshaw instantaneously or schedule a pick-up for later. The charges structured for this service are Rs.20 meter down ; Rs 5/km and Re 1/min. This app is available on Android as well as iOS.
- Jugnoo Meals: This is an on demand delivery service of fresh, home-cooked and affordable meals (Breakfast, Lunch and Dinner) at your doorstep. Their in-house chefs concoct a variety of hygienic and healthy meals for multiple preferences, and follow a daily rotating menu. This app is available on Android as well as iOS.
- Jugnoo Fatafat : Jugnoo Fatafat is an on-demand delivery service from stores within the city. Through this app, one can call for any item one needs from any store and it would be delivered to their doorstep. With a minimum delivery of Rs. 300, Jugnoo offers this service for free. The best part of Jugnoo Fatafat is its custom order feature. This feature renders an option of placing a custom order in case one fails to find a particular store for a particular product.This app is available on Android and iOS.
Currently, the auto booking service is functional in Chandigarh Tricity, Ludhiana and Amritsar (and launching publically in Jaipur soon) while the delivery services are available only in Chandigarh. A distinguishing aspect about these services is that all of the operations are carried out by their autorickshaw community.
How well is it doing?
Jugnoo has a userbase of 80k currently, and processes about 1500 transactions per day, generating a revenue of approximately $1900.
80% of its revenue comes from auto bookings and rest from delivery. The average ticket size for auto rides is Rs. 80 and for on-demand delivery is Rs. 450. With addition of further categories, this number is expected to increase upto 1.5x.
Presently, Jugnoo is not focussed on margins but rather on providing quality service and expanding fast. According to Samar Singla, CEO, “margins is a piece that will come eventually. Merchants are already coming on-board themselves to get associated with Jugnoo – I am sure getting profit margins would be an easy task.”
The Market Scenario of On-demand Delivery Services and the Vigorous Competition
On-demand delivery market is going to bring the next big disruption in the eCommerce ecosystem, maintains Singla. WIth an existing market size of around $350 billion, this is going to expand exponentially in the near future. In fact, “Flipkart and Amazon will be kicked by hyper local commerce disruption”, asserts Singla.
However, it is to be noted that Flipkart too has started innovating in the area of hyper local deliveries.
Additionally, startups like Grofers and Doormint may also prove to be a big competition to this model. Further, Ola and Uber already have a very similar model to that of Jugnoo, with however, a major difference i.e, both of these companies employ cabs to offer their services while Jugnoo’s signature wagon is autorickshaw. Moreover, with Ola introducing Ola Cafe in four major Indian cities, the competition is no more restricted to only the on-demand transportation service sector but as well prevails in the food delivery sector.
Putting forth a view on the market competition, Singla opines, “we don’t see Ola and Uber as competition, but in fact, as a potential partner to Jugnoo due to our hyper local commerce model and availability of excess inventory. Ola and Uber will have a natural inclination to push their cab services more than autos due to the ticket size. This makes the auto drivers feel insecure with such services. We have had a few cases where Ola auto drivers have come to us as they feel threatened working with them. With an ongoing constant fear among autos that cabs are eating their market share, Ola and Uber will find it better to partner with us rather than handling autos themselves.”
In April beginning, the company raised $1mn from Rajesh Mathur (Junglee Flywheel), Vikas Taneja (Partner and MD BCG Group, previous investments include Rapportive, PubNub), Kirloskar Bros and others in a seed round.
It is looking forward to raise another round of funding soon.
The team believes, Jugnoo holds the potential of being the largest on-demand service in India in five years, where users will be able to find anything and everything on a single platform. They are strongly focussed on their product, which is also the core foundation of what we they are doing. All of their products have been developed, keeping scalability in mind.
Singla says, “we have already expanded to 4 cities within 5 months of operations. There is still a lot to be done on the product side, but if someone asks me to move to Philippines or China tomorrow, we are all set to go!”