Delhi-based on demand cab aggregator startup, Roder has raised around $250,000 in a seed round of funding from Unicorn India Ventures, an early stage startup VC fund. The startup was launched in December, 2014 by 3 IIT Kharagpur graduates – Abhishek Negi, Ashish Rajput, and Siddhant Matre – aims to revolutionalise travel between cities by offering cabs at affordable rates for one-way journeys.
Bhaskar Majumdar, Managing Partner, Unicorn India Venture says, “Roder’s model is such that it not only makes cabs available at short notice but also results in substantial savings for customers. Our decision to invest in Roder is driven by the fact that their business model is scalable and this space is set to witness action and growth in the next few months.”
The new funding will be used by the startup for achieving market fit product, customer acquisition and for expansion in 20 new cities in North and Western region of the country.
The company focuses on driver and cab verification, training of drivers to ensure customer safety and overall experience. The Roder team uses technology to automate various processes, focuses on last-mile connectivity; making the system scalable. The company has launched its Android app and also accepts booking via its website and call center.
Abhishek Negi, Co-Founder, Roder says, “Since our inception in 2014, we have generated a GMV of over a crore by fulfilling 500 rides on a monthly basis, with an average ticket size of Rs 5,500. We are creating a new market for outstation cab services. The demand for booking one way rides via our platform has grown from 5% to 70% from our early days. We believe our team is now ready to take its services to new markets in the country.”
The startup is also working on introducing ‘ride-sharing’ feature for intercity travellers there by optimizing costs of travel for consumers. Roder has enabled the drivers to earn more from the same fleet of cars as their market and reach to consumers has increased with the use of technology. The company works with a pool of more than 4,000 drivers and is present in 13 cities. It’s a hybrid model where some of the fleet cars are owned by the company while the rest are driver owned cabs.
Cab aggregator model is the fastest growing cab service model in the organized taxi market. The companies in this space are expanding their portfolio by introducing an app for several category of business such as food and courier delivery services. Cab aggregators such as Uber and Ola are using predictive analytical tool to measure the significance of demand and supply of cab services to increase their profit margin by utilizing optimum level of resources.