How do we feel about the job of truck drivers carrying those huge trucks loaded with materials that need to be supplied to the designated location within the scheduled time? Well, there is a social stigma associated with the truck driving job which has been in existence for years now. It is perceived as a very high-risk job due to poor living conditions, vulnerability to contraction of HIV, drug and alcohol addiction, and excessive pressure from truck owners to drive faster and more. People thought the truck driving profession was not worthy of a means to earn their living.
This is where India’s ‘Billion Dollar Logistics’ Startup Rivigo created an impact and changed the way we now look into the truck driving business. From removing social stigma to designing a sustainable and profitable logistic business model, Rivigo is a pioneer in introducing a driver relay system into logistics which not only increased efficiency but also brought smiles to many truck driver’s families.
The Beginning of Rivigo
Rivigo, which is headquartered in the ‘Millennium City’ of India, Gurugram was founded in 2014 by former McKinsey consultants Deepak Garg and Gazal Kalra with the idea of creating a relay truck model, where no driver would drive more than four-five hours at a stretch and would return home the same day.
Prior to starting the venture, Deepak had spent nearly a decade with McKinsey and was involved mainly in the logistics and automotive sector. During his tenure, he noticed that trucks were not selling in line with the growth of the economy. He set on a road trip to understand the concern and discovered that truck drivers have been marginalized and looked at as outcasts which demotivated many people from taking truck driving as a profession.
Gazal Kalra, who is an MBA from the Stanford Graduate School of Business and a Masters in Public policy from Harvard Kennedy School, was keen to put together a startup and joined Deepak in his venture. The fleet of trucks has increased from 25 in 2014 to about 2100 in 2019 and Rivigo provides assured delivery from anywhere to everywhere in India in 3 days. The drivers who were the most important resource of Rivigo are called Rivigo Pilots. It re-envisions the truck as an IoT Platform with intelligent sensors that constantly interact with a real-time responsive logistics network.
Rivigo’s Funding
In 11 rounds of funding after starting in 2014, Rivigo has raised a total of $ 268.7M. The latest funding was raised on November 2, 2020, from a Series-G round, which was by Elevation capital and the funding amount stood at INR 844 Million. Earlier this year, it also raised funding from Trifecta Capital Advisors which was nearly INR 250 Million.
In 2019, the company had been trying to manage costs and turn its asset-heavy business to asset-light. In August 2019, the company has shifted its focus towards the Relay-as-a-Service model (RaaS). It will be offered to fleet owners using its technology, pilots, and a countrywide network of relay pit-stops.
How Rivigo Stands out from its competitors
Reduction in Delivery Time: Rivigo has reduced delivery time to anywhere in India by a large margin. The Driver relay model and optimization using technology have enabled them lower deliver time. Also, Since, drivers have to drive only four-five hours in a stretch, so that efficiency also increases which results in a reduction in delivery time.
Highly reliable and precision services: Rivigo boasts to its consumers of being highly reliable and safest pf the options to transfer your materials from one location to another. Rivigo has 24×7 central planning and control team that monitors the performance of all the vehicles and shipments using cutting-edge technology.
Increased visibility and transparency to its customers: Customers of Rivigo have real-time access to time tracking, technology usage, training, and on-the-job reinforcement. Also, Rivigo has its core vision of making its pilot live a life of fulfillment, dignity, and respect.
Also Read: Dunzo – Creating A New Market Through New-Age Experiential Marketing
Unique Marketing Strategies by Rivigo
Rivigo is much more than a logistics company – It was a pioneer in India using technology to transform logistics. It developed a unique branding strategy that included measures to improve Rivigo as a workplace where you want to be.
Brand Architecture: Rivigo introduced new divisions like Rivigo Retail, Rivigo Healthcare, and Rivigo Finance. Rivigo’s technology platform, VYOM, was clubbed together with Rivigo Logistics. Rivigo Pilots, were the core of the company and the focus of branding remain on them only but the purpose was renewed.
Visual Identity: The new visual identity was constructed to help Rivigo clearly reflect its defining traits like discipline, passion, professionalism, and Integrity as above all of them. The new logo of Rivigo was thus constructed in a simple, geometric form with curved edges. Similarly, the visual language was crafted in a geometric fashion, with one primary rounded edge and divisions in flat brand colors.
RIVIGO Freight: This is India’s largest digital trucking marketplace. Clients can add or post full truckload requirements and get truck supply with a single click at the best spot market rates. This feature was widely marketed by Rivigo trying to target the customer base who are young and mostly into using apps.
Service Offers
Full Truck Load (FTL): FTL, is a service that is based on a global first and unique driver relay model which allows Rivigo to deliver in unprecedented times while ensuring that their pilots return home on the same day.
Express Cargo (Zoom): This service provides the highest reliability and highly précised and safe operations. It also provides complete transparency and visibility.
Cold Chain: Rivigo also provides a temperature-controlled supply chain operation which is very useful especially in the pharma industry. This option ensures that there is unbreakable cold chain refrigeration in which elements like cooling systems and cold storage are used.
Conclusion
According to the co-founders, Rivigo is the only company in the world to have a cracked relay trucking model. The vision of Rivigo is to make the relay trucking model accessible to fleet owners and as a means to achieve it has already started the RaaS model. The Indian road freight market is estimated to be worth around $150 billion and Rivigo still believes that there is no company with direct competition. Also, Rivigo’s model is one of a kind and is not easy to be takedown by any new players all of a sudden.
Although in recent years truck marketplaces such as Blackbuck, Lobb and Trukky have entered the market, the majority of the truck freight business is still with Rivigo. However, Rivigo believes that its focus on being human over everything else will always be a big differentiator. Rivigo also recently launched National Freight Index (NFI) to provide live freight rates for different lanes and vehicles across the country. The move is aimed at bringing pricing transparency for over seven million lane and vehicle type combinations in the country through real-time data.
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