Founded in Jan’16 by Vivek Pandey, Bharat Khandelwal & Sushant Arora, Now is an on-demand Bike Taxi and Delivery platform (web & mobile) which allows customers to avail bike taxi service at 4 Rs/Km (+ Rs. 10 Booking Charge) +1 Rs/Min: Min charge Rs 20; and at the same time, provides logistic solutions to merchants for the delivery of food, grocery, medicine etc., on bike.
The platform also allows individuals to send across packages within the city like a C2C courier service.
The Noida-based startup holds the vision of creating a last mile transportation network which transports people and goods. To try out the services, download its app which is currently available only for Android users, here.
Now uses the same motorcycle driver for the purpose of Rides and Deliveries. “Given a model where one rider does both the tasks, the rider utilization is much higher–a factor which will definitely lead to a better unit economics for the business and a much quicker path to break-even and profitability”, Vivek.
Monetization and Traction
The startup commissions from the Trips which are done to either transport people or deliver packages. It claims to be already breaking-even in 1 city cluster at a 1000 transactions by the month of May. Further, the believes that Now will attain an overall operational break-even in NCR in the next 3 months.
The company claims to be doing 1200 transactions on a daily basis, 700 Rides and 500 Deliveries across NOIDA, Ghaziabad, Gurgaon and Faridabad. As per its website, it has served over 6500 customers as of now.
The Android app is rated 4.6 on Play Store.
How is Different from Other Bike Aggregators? What is its USP?
Elaborating on the distinguishing attributes of Now, Sushant said, “We have a different model overlapping between Bike Taxi Rides and Deliveries which increases the overall utilization of the riders and improves the unit economics of the model. Most of the delivery companies currently are under pressure due to under utilization of the riders because there are certain peaks during the day according to which capacity has to be planned however the order flow doesn’t remain same the entire day. Same is the case with Ride as well since Bike Taxis solve a last mile problem the peak demands for it are in morning and evening during office hours and then tapers off. The good part is that peaks of Bike Taxi and Delivery don’t collide so our idea is use drivers for bike taxis during morning and evening office rush and then move some capacity to delivery during lunch time and at nights. None of our bike taxi or delivery competitors is doing both in an asset light way and have such unit economics as ours which will take us to break even in less than 3 months.”
The company has been funded by two angel investors: Ruchirans Jaipuria –MD of Jaipuria group and Anuj Sanghi from the Sanghi Motors Group. It raised $500k, of which $200K is banked and the rest would come based on the certain milestones being met. “Apart from just money our investors are strategic in nature, Jaipuria group with varied interests in F&B and retail distribution network of over 200,000 outlets and a 1000+ restaurants and Sanghi group with tie ups with auto OEMs and lenders bring a lot more to the table”, says Bharat.
It is in advanced talks with VC firms to raise Series A.
The short term plan of Now is to create the best Ride or Deliver product and provide a great experience to its customers (individuals and merchants). Thereafter, it wants to set a market leadership in the Ride or Delivery space in Delhi NCR. The company’s long term goal is to build a retail distribution network which handles both on-demand and scheduled delivery for distributors, merchants and individuals.