The concept of ‘Uber for X’ has taken the Indian startup ecosystem by storm, owing majorly to the fact that these ventures are asset light and do not own the vehicles themselves. Launched in July 2015, Turant Delivery is an on demand, hyperlocal logistics company that specializes in Intra City Logistics Cargo Vehicle Solutions. It is the brainchild of three ISB alumni – Ankur Mazumder, Satish Gupta and Siddharth Arora, created with a vision to simplify logistics for everyone.
The team maintains that the logistics sector in India has suddenly got a boost with the burgeoning eCommerce market. However, with this change in scenario came overcrowding and chaos.
“Today, when you look at the logistics of India, you see a chaotic space. We have many players in the market, but each would serve only one of the several segments of logistics. So, depending on your need, you would have to approach a different player”, said the team.
Turant’s business model was structured keeping in mind the specific woes of customer side and vendor side. Minimizing rates but ensuring good quality services ensures customer satisfaction and high customer retention rates, thereby increasing demand. Similarly, it helps vendors maximize output from their inventory.
Further, with this strategy, vendor revenue and customer base get also get a significant boost. This way, the supply and demand equation is stabilized. “Being consumers of logistics ourselves, we know that it is nowhere close to being hassle free. So we decided to simplify logistics for the end user by ensuring minimum involvement, which ultimately lead us to our one vision: Simplifying logistics,” maintains the team.
Features and Services
The company provides B2B and B2C logistics solutions. It aggregates all vehicles like LCVs, vans, mini trucks etc.; helps Corporates, SMEs and customers by fulfilling their logistics needs on an on-demand (SMEs/B2C) or a contractual basis. It also works with the vendors to help them optimize their inventory utilization.
Turant Delivery has its services divided into four categories-
- Relocation – Easy to use and convenient moving and packing services
- Customer Deliveries- Get anything delivered anywhere at anytime
- Warehouse deliveries- Moves goods in and out of a warehouse
- Electronics- Handles all electronics with care including fridge, TV, Microwave, etc.
The details regarding order (pickup/drop points, weight of goods etc) are specified and an estimated fare is generated. As soon as the customer makes their confirmation, it is a go.
The company has fixed point to point pricing for all clients, to ensure 100% transparency for all parties and eliminate the process of negotiation and haggling. Further, it has designed a zonal pricing algorithm that removes the variability and gives flat rates to all the consumers. The company claims for these prices to be lower than the market rate by a margin of at least 15%.
What Problems are being Solved by Turant Delivery with its Services?
According to the team, there is a huge mismatch between supply and demand in logistics, in India. Customers and vendors alike have several pain points when it comes to logistics. And Turant intends to provide solutions to all of those problems.
On the Customers’ front, Turant is trying to address the following issues:
a)No Reliability: Customers have no access on reliable vendors and end up losing immediate orders
b)No Single point of contact: Not having a single point of contact leads to huge delays in arranging vehicles and completing orders
c)Price Variability: Market prices are fluctuating and vary from vendor to vendor. There is close to 0 transparency in the pricing. This makes the customers uncomfortable.
d)Quality Assurance: There is no way for vendor to be sure of the quality of the vendor/vehicle without prior checks. This leads to substandard vehicles and delayed deliveries
Similarly, for Vendors, the following problems are being catered to :
a)Low Vehicle Utilization: Current vehicle utilization is less than 45%. This leads to huge losses for vehicle owners
b)Customer Acquisition: It is critical for vendors. However, these vendors do not have access to the resources to acquire new and retain existing customers
c)Driver Rights: It needs to be protected in the industry. And currently, there is nothing that helps protect these rights
“We are targeting three segments: B2B Corporates, B2B SMEs, and B2C and we have good traction in all three. B2B SMEs is the largest in terms of size and hence, is our first priority”- team Turant.
Revenue Model and Traction Details
Turant is an aggregator of vehicles and vehicle owners. It works on a commission/mark up model. It matches demand to supply on an order basis and charges a commission for the same. It has tied up with Corporates like: Spoton (TNT Group) and KD Logistics, and its Customer base is growing at a rate of 200%.“We project a 120% growth in our customer base for the next 12 months”, states the team.
On Fund Raising
Turant has applied for seed funding. Its applications are under process and meetings with investors are under way.
Scope and Market Size
The team maintains that the logistics market is very hot right now. Current intra-city LCV market size is close to $8billion, and is projected to be around $10billion in the next 3 years. All competitors combined have captured less than 1% of the entire market.
As per the company’s projections, this number would have risen to about 8% in 3 years. 2% of this 8% will be captured by them. With 92% of the market uncaptured, there would be a huge growth potential for them.
The intra-state logistics services space in which Turant Delivery is playing, is burgeoning with several startups coming up with ingenious technologies and approaches to revolutionize logistics solutions. In fact, it is speedily emerging as one of the VC favourite avenues.
In April, Resfeber Labs Pvt Ltd, which runs online logistics marketplace The Porter to book mini-trucks and tempos for intra-city pick-up and deliveries, secured $500k from Kae Capital. In May, Shippr raised $500K from i2india. In the same month, on-demand truck services provider TheKarrier Raised $235K from OutBox and Others. In June, Moovo raised an undisclosed amount from YouWe-Can Ventures. Similarly, in August, Pickingo, a B2B on demand logistics solution provider, bagged $1.3 million from serial investor Rehan Yar Khan Orios Venture Partners along with Zishaan Hayath in August.