INTRA-CITY

LOGISTICS
RESEARCH
REPORT
2016

Table of Contents

Introduction...............1
Definition ..........1
Logistics industry global trends and developments .........1
Logistics industry in India trends and developments ......4
Recent developments in Indian logistics industry..
Growth spurt in ecommerce and hyperlocal logistics. ...
Major Players in hyperlocal logistics in India8
Intra-city mini truck aggregators .9
Global perspective..... 11
Trends and Development...12
Summary...14
Contact Information.15
Company Information..16

Introduction
Definition
Logistics management is the
part
of
supply
chain
management
that
plans,
implements, and controls the
efficient, effective forward,
and reverse flow and storage
of goods, services, and
related information between
the point of origin and the
point of consumption in order
to
meet
customer's
requirements.
A third-party logistics provider
(abbreviated
3PL,
or
sometimes TPL) is a firm that
provides service to its
customers of outsourced (or
"Third
Party")
logistics
services for part, or all of their
supply chain management
functions. Third party logistics
providers typically specialize
in
integrated
operation,
warehousing
and
transportation services that
can
be
scaled
and
customized to customers'
needs based on market
conditions, such as the
demands and delivery service
requirements
for
their
products
and
materials.
Often, these services go
beyond logistics and include
value-added services related
to
the
production
or
procurement of goods, i.e.,
services that integrate parts
of the supply chain. When
this integration occurs, the
provider is then called a thirdparty
supply
chain
management
provider
(3PSCM) or supply chain

management service provider (SCMSP). 3PL

targets a particular function in supply management,
such as warehousing, transportation, or raw
material provision.
The global 3PL market reached $750 billion in
2014, and grew to $157 billion in the US; demand
growth for 3PL services in the US (7.4% YoY)
outpaced the growth of the US economy in 2014.
As of 2014, 80 percent of all Fortune 500
companies and 96 of the Fortune 100 used some
form of 3PL services
Source: Wikipedia

Logistics industry global trends

and developments
Global Logistics Industry is ~USD 4 Trillion in 2013
representing 10% of Global GDP. The global
transportation services market is fastest growing
sector with ~
7%
y-o-y
growth since
2011.
US accounts
for
more
than a 42%
of
global

transportation services sector. However, the focus

will shift to Asian countries due to increasing
intraregional trade activities.

India, Indonesia, Malaysia, Philippines, etc. have

increasing intraregional trade in combination with
high GDP growth rate, thus transforming Southeast
Asia into a new regional cluster.
Given that the logistics sector is dependent on the
global economic environment and international
trade flows, the market is still suffering the lingering
effects of the global economic crisis and recovery
has been slow. Nevertheless, sector players should
be able to tap substantial potential for growth going
forward. North America and Southeast Asia appear
to be the most interesting markets for logistics in
general and contract logistics in particular.
Emerging markets are expected to offer aboveaverage growth rates for the industry. Intraregional
trade is becoming increasingly important in Asia in
particular, and this, combined with high GDP growth
rates, may transform the region into the most
significant regional cluster in the world.

Over the past ten years, global logistics markets

have grown substantially typically by 2.0-2.5 times
the global GPD. In the economic crisis of 2008/09,
however, this correlation also worked in the
opposite direction. Current annual performance
indicates a reduction in the multiple since logistics
market performance stagnated, particularly in 2012
and 2013 while the economic situation was picking
up, i.e. a certain decoupling from the economic
cycle is visible due to factors like less centralization
of inventory and reduced manufacturing in
developed countries.
Regional trendsUS/North America: The US and Canada's contract
logistics markets each grew just under 2.0% in
2013. In North America, the contract logistics
market grew 1.5% in 2013. For the second time
after 2012, the total size of the market exceeded the
pre-crisis level of 2008 prior to economic downturn.
This was mainly driven by the increased
manufacturing production in Mexico, resulting in a
5.2% increase in contract logistics in 2012 as well
as 2.0% in 2013. The 2013-2017 growth forecast for
North America is 6.3%.
Europe: The effects of the economic environment
were therefore felt in the European contract logistics
market. Weighted growth for the region reached
only 1.1% in 2012, 5.8% for the CEE and 0.9% in
mature Western European countries. In 2013
growth was even slower with an overall growth rate

in Contract Logistics of only 0.5%. The downturn in

Southern Europe's economies resulted in a
significant drop in contract logistics. Assuming an
improving European economy, the forecast
indicates a CAGR growth rate of only 2.5% and
5.1% from 2013 to 2017 for Western and Central
and Eastern Europe, respectively.
Asia Pacific: Traditional trade lanes connecting
China with the US and Europe are losing some of
their importance. The "Modern Silk Road" between
Asia and the Middle East is also resulting in
increasing trade. From 2001 to 2010, trade
increased over 700% and now more than half of the
Middle East's trade is with Asia. Except for
Singapore and Hong Kong the logistics setup in
Asia is not as developed as it is inEurope or the US,
resulting in quite a low LPI score (logistics
performance indicator). Source: rolandberger, global
logistics markets

Logistics industry in India trends

and developments
Indian logistics market is expected to grow at a
CAGR of 12.17% by 2020 driven by the growth in
the manufacturing, retail, FMCG and e-commerce
sectors.
India spends around 14.4% of its GDP on logistics
and transportation as compared to less than 8%
spent by the other developing countries.
3PL logistics market in India is expected to be worth
US$ 301.89 billion by 2020. NOVONOUS estimates
that the warehouse market in India is expected to
grow at a CAGR of 10% whereas freight forwarding
market is expected to grow at a CAGR of 12% till
2020.
Source: researchandmarkets, logistics in India

Indian logistics sector is estimated to have grown at

a healthy 15% in the last five years. However,
growth in sub-sectors varies, with the lowest being
in basic trucking operations and highest in supply
chain and e-tailing logistics. Some studies estimate
the share of Indias logistics spend in GDP at 13%
(versus 7-8% in developed countries), implying
overall size of $180-220 bn (direct costs +wastages
from inefficiencies). A comparison with other
countries shows inefficiencies are high in the Indian

Capacity constraints and inefficiencies can be noted

from the high transit time in rail as key train routes
operate at >110% utilisation, thus leading to an
average speed of 25 km per hour. The road sector
is fraught with inadequate and low-quality highway
availability, thereby limiting the trucks size and
impacting economies of operation.

Despite being an
economical
mode
of
transport,
railways has lost
market share in
freight movement
to roads in the
last few decades
due to capacity
constraints.
Compared
to
other countries,
Indias rail share
in
goods
transport is 31%,
which has come
down from 60%
in 1980s and
48% in 1990s.
Source Financial
Express, logistics set
for rapid growth Mar
2015

logistics sector.
Infrastructural bottlenecks across modes (rail, road,
waterways) have stifled the sectors growth.

source: motilaloswal, logistics industry sector analysis

Source: business-standard

Recent developments in Indian

logistics industry
Logistics industry in India has seen a recent spurt
and activity due to the advent of ecommerce and
hyperlocal business in India. Whole new industries
are waiting to be serviced for their logistics
requirements.

Myriad challenges surround last-mile delivery in

India, the costliest leg of the supply chain.
Technology startups have now come up with various
innovationsreal-time GPS tracking; a flexible signin, sign-out model to balance demand and supply of
delivery boys; and a "milk run" model, whereby fleet
members can pick up and drop deliveries on a
dynamic route.
These firms have had little difficulty scaling to
reach over a thousand orders per day within
months, and all have ambitious plans to expand
their workforce to be thousands-strong by the end of
the year.

ExcerptNagarjuna, a popular chain of restaurants here, has

shut down its in-house food delivery service. It has,
instead, opted to use Roadrunnr for getting hot
meals to its customers.
This is one of many restaurants and small
businesses that find it too expensive to hire a fulltime delivery staff. Roadrunnr is a hyperlocal
logistics start-up that enables last-mile delivery of
packages, serving small businesses such as
restaurants, florists or laundry services, as well as
larger e-commerce entities such as Flipkart and
Snapdeal. Merchants pay Roadrunnr Rs 40 for a
regular delivery and Rs 55 for a premium delivery
up to 4.5 km, beyond which the company charges
Rs 10 a km.

Companies that promise large-scale pickups and

drop-offs using minitrucks, such as Moovo, Porter,
TheKarrier, and Blowhorn, have all received seed
injections recently. Companies solving challenges of
intercity delivery, too, have received funding, notably
TrucksFirst, which received $10 million from SAIF
Partners in May.
This kind of funding activity in the logistics space,
and the solutions that are being developed, does
not have a parallel in other startup ecosystems.
Developed countries do not suffer from half the
headache that delivery incurs; China's ecommerce
boom coincided with heavy government investment
into transport and road infrastructure, both within
and between cities, minimizing on-ground hassles
for companies.

E-commerce deliveries have taken the lead. Ecommerce is half of all transactions for Roadrunnnr
and the share is expected to go up. As more people
shop online, getting packages to customers on time
is getting harder for companies such as Snapdeal
and Flipkart. While they are investing heavily on
setting up warehouses, demand is fast outpacing
their growth.

Source economic times, how hyperlocal logistics are new

attraction for investors Apr 2015

Delivery is a problematic thing, especially in the last

mile, because of (staffer) attrition, which stands at
about 80 per cent in large cities like Bengaluru.

The Indian e-commerce industry is poised to cross

USD 100 billion by 2020. Now, e-commerce giants
who have already spent millions online on customer
acquisition are acknowledging the hyperlocal

Growth spurt in ecommerce and

hyperlocal logistics

opportunity and preparing to partake

hyperlocal gold rush.

in

the

Amazon, Flipkart and Paytm are prepared to up the

ante by launching their hyperlocal services. Amazon
Kirana is already operational as a pilot in Bengaluru.
Paytm has launched Zip mobile app and is testing in
Bengaluru. Ola has launched Ola store, an
hyperlocal grocery mobile app.
The strong emergence of e-commerce will place an
enormous pressure on the supporting logistics
functions. The proposition of e-commerce to the
customer is in offering an almost infinite variety of
choices spread over an enormous geographical
area. Firms cannot compete solely based on sheer
volumes in todays ever-evolving, information
symmetric and globalized world of e-commerce.
Instead, the realm of competition has shifted to
delivering to ever-shortening delivery timeliness,
both consistently and predictably. Logistics in
developing economies such as India may act as the
biggest barrier to the growth of the e-commerce
industry. Till date, logistics models developed in
India target the metropolitan and the Tier-1 cities
where there is a mix of affluent and middle classes
and the internet penetration is adequate. According
to industry benchmarks, the delivery cost in the
captive logistics models are 10 to 20% expensive
than the 3PLs whose expertise lies in quick delivery
at an affordable cost. Further, the logistics set-up
and requirements in developing countries are also
dependent on the purchasing behaviour of the
customers. Industry estimates reveal that the total
spend on warehousing and sortation centers could
be as high as 3 to 6% of top-line revenues, which
represents an cumulative spend of over 450 to 900
million USD of spend in warehousing till 2017-2020.
The industry is expected to spend an additional 500
to 1000 million USD in the same period on logistics
functions, leading to a cumulative spend of 950 to
1900 million USD till
2017-2020.
Source: ASSOCHAM & PwC, growth of ecommerce in India

eCommerce logistics market in India is pegged to

reach $5.1 billion by 2020. Last mile logistics
constitutes 40% of eCommerce logistics and is
expected to grow at a CAGR 48% to reach $2.1
billion by 2020.
iamwire.com

There are 7 firms who are the prominent names in

the B2B logistics space.
Roadrunnr
Opinio
Shadowfax
Parsel
Grab
Delhivery
Quickli

Indian hyperlocal logistics Industry size 2015 (USD

M):
B2C

Conceirge

45

Groceries

23.2

Food

43.5

Medicines

9.2

Ecom Express

133

End to end

Logistics

12

Delhivery

85

End to end

funding money toward logistics startups jumped

from US$69.3 million to US$617.7 million between
2014 and 2015. The Indian hyperlocal market
revenues grew at a rate of 41% in 2015. The
research report reveals that the Indian hyperlocal
market will grow at a considerable CAGR rate, thus
projected to exceed $343.6 Mn (INR 2,306 Cr) by
2020.

BlackBuck

30

Freight

Rivigo

30

Inter-city
transport

RoadRunnr

21

Hyperlocal

Source: Tracxn, hyperlocal landscape

Gojavas

20

End to end

QikPod

09

Parcel lockers

Shadowfax

8.8

Hyperlocal

Opinio

8.3

Hyperlocal

The Porter

6.5

Mini truck
aggregator

B2B

Within hyperlocals, services have higher margins of

around 20% as opposed to product based models
which earn 2-10% margins or even non-hyperlocal
e-commerce companies, which operate on 3-7%
margins, depending on the category.
-

Financial express

Source: techinasia

Top funded logistics startups in India (USD M):

Major Players in hyperlocal

logistics in India
According to Tracxn Technology, a start-up tracker,
at least 27 hyperlocal business-to-business delivery
start-ups have been founded in India since January

last year, with about $38 million being invested into

the sector.
In terms of volume, the major hyperlocal logistics
service providers in India are:
Roadrunnr
Grab

Quickli
Shadowfax
VDeliver
Roadrunnr.com: Roadrunnr was founded in
February this year by Flipkart employees Mohit
Kumar and Arpit Dave to focus on business-tobusiness deliveries. It makes use of an on-demand
model to partner delivery boys and manage lean
and peak demand, and charges businesses a flat

rate per delivery. Roadrunnr has received funding of

USD 21 M till date.
According to the company, it is doing close to
25,000 deliveries a day on average with a fleet of
nearly 5,000 delivery boys.
Grab.in: Grab.in (formerly GrabaGrub) enables
online food delivery for local restaurants. Works with
over 440 merchants in 7 cities as of Aug 2015.
Restaurants using Grabs services will be able to
track and share precise delivery time with the
customer. For the financial year 2014-15, it
delivered orders worth Rs 35 crore in Mumbai. Has
more than 500 delivery boys on field and promises
a delivery in 35 min. Delivering over 2500 orders
per day in Mumbai and Pune. Raised $1 million
from Oliphans Capital and independent investor
Haresh Chawla. Reported to be raising $10M in
August 2015.
Quickli.com: Quickli is a mobile platform which
provides deliveries on demand (DoD) for
businesses. Merchants can schedule a delivery
through its mobile app or a missed call, and then
Quickli's agent picks up the package and delivers it
to the destination. Claims to deliver any product in
Gurgaon in under an hour with goods like medicines
and food delivered in under 15 minutes. Customers
include local retailers, restaurant owners, property
managers who need to send documents to their
clients, among others. Has a feature for businesses
to track the package and keep their customers
posted about the same. Launched in April 2015 in
Gurgaon and has acquired 35+ paying businesses
in a fortnight. Employs 40 delivery executives as of
May 2015. Doing 1000 deliveries a day as of Sept
2015. Plans to expand operations to entire Delhi
NCR region, Bangalore and Mumbai in the next few
months. Raised undisclosed funding from 500
Startups, former Rocket Internet partner Mato Peric
and some high networth individuals

Shadowfax.in: Shadowfax is a technology based

B2B on-demand delivery service. Provides delivery
solutions to local sellers requiring express delivery
without the need to hire delivery boys. Provides
tech-enabled customer service tracking along with
real-time consumer feedback. Charges the
merchants on a per-delivery model. 35+ employees
and 350+ riders as of Aug 2015. Clocking 3000
orders daily. Raised $300K in an angel round led by
Kunal Bahl, Rohit Bansal, Zishaan Hayath (Powai
Lake Ventures) & Prashant Malik (Limeroad).
Vdeliver.in: VDeliver provides hyperlocal logistics
services in Hyderabad. It provides last mile delivery,
cash on delivery, pickup & delivery, cash before
delivery and reverse logistics services for a number
of goods. It provides users with food delivery from
the listed restaurant partners of the company, office
supplies delivery, medicines, gifts, groceries and
document delivery services. It provides 4 hr, 12 hr
and 24 hr delivery services. Has various sources of
revenue, The primary and direct source of revenue
being from both individual customers & local
business including local ecommerce portals. The
Secondary source of revenue is the income
generated through commissions charged to the
restaurants for giving an order. Other sources of
income include advertising through the delivered
parcel as a medium.Their monthly revenue clocks
up to around INR 2.5 lakh per month of which 20%
income is from the secondary source while the
remaining 80% is primary revenue generation as of
February 2014.
Opinio: Opinio would provide delivery of food,
grocery, bakery, medicines etc. Launched in 2014
as an opinion exchange platform, pivoted to
logistics segment in 2015. Has tied up with around
500 merchants in 15 areas in Bengaluru and three
areas in Delhi as of Sept 2015. Founders are alumni
of IIT Kanpur. Funded by Accel Partners and Tracxn
Labs. Opinio has raised $7 million in Series-A
funding, along with participation from Sands Capital
and Accel Partners, apart from Delhivery.
Source: tracxn.com

Intracity mini truck aggregators

TheKarrier: based out of Bangalore, TheKarrier
aims to provide on demand logistics for intracity
delivery for businesses and individuals. They
currently operate about 300 Light Commercial
vehicles (LCVs) through partners all around
Bangalore. They have served over 1000 customers
so far. To make the process more seamless, they

recently launched an app for the drivers and are

now in the process of launching a consumer facing
app as well.
Blowhorn: Blowhorn is a Bangalore-based online
marketplace for last mile logistics. Blowhorn offers a
tech platform connecting customers who want to
move goods quickly and effortlessly to owners of
mini-trucks. Unitus Seed Fund, a venture seed fund
supporting startups innovating for the masses,
announced that it has led the seed round
investment in Blowhorn. This investment marks
Unitus second in the mobile-on-demand sector,
following mGaadi, which currently has have over
9,000 drivers available in Bangalore via their mobile
apps.
GogoTruck: GoGo Truck provides trucks on
demand to transport goods for customers. Has tied
up with a network of vehicles and with use of
technology enables customer to get the closest
truck for moving their goods with reliable drivers.
Charges extra for labour costs. Developing a mobile
app. Operating in Chennai as on June 2015. Started
out in Feb 2015 with 20 Tata Ace Mini Trucks and
now have a fleet of 75 trucks (owner cum drivers)
which include trucks like Tata Ace, Ashok Leyland
Dost and Tata 407 spread across Chennai. Claims
to be growing at about 100 per cent, month-onmonth, and has completed about 250 orders in the
month of June 2015.
Shippr: Shippr is an online logistics platform. Its
first product, MiniShippr is a local deliveries logistics
solution that aggregates intra-city transportation
providers. Users can book online or call the service,
fill in the details about the shipments and then the
delivery is done by vehicle owners who have tied up
with Shippr. Minimum price for a delivery is INR
500. Claims to help single vehicle owners reduce
their idle time by 40%. Received 600+ queries
within one month since launch, with 60 queries
converted to successful transactions. Currently
operating in Bangalore. Planning to expand into
corporate segment. Became part of the i2indias
startup incubation programme Venture Factory in
Jan 2015, raised $500k from the same in June
2015.
Porter: Porter (Resfeber Labs Pvt Ltd) aids in
making intra-city pickups and deliveries efficient and
reliable with economical pricing. Users can track the
drivers in real-time through the web platform and
even get periodical SMS alerts. Platform includes
management tools for live tracking with replay of

historic tracks, geo-fencing alerts and scheduled

reporting. Corporate clients include ITC, Delhivery
and UrbanLadder. Clocking 2000+ transactions
every month. Has a fleet of 100 trucks in Mumbai.
Expanded to Delhi/NCR and Bangalore after
funding. Raised Rs 35 crore round led by Sequoia
Capital India with participation from Kae Capital and
angels like Shaadi.com founder Anupam Mittal,
Freecharge co-founder Sandeep Tandon and JM
Financial's Rajeev Chitrabhanu.
Moovo.in: Moovo is an online portal for intra-city
goods transport for individuals and businesses.
Customers can book through its website, mobile
app or call center, get an instant quote, information
about the driver designated by Moovo's technology
and later a call from the driver. Customers can also
keep track of the driver through the GPS, while they
do the delivery. Provides services like furniture and
home appliances movement, relocation services,
moving goods in and out of warehouse, custom
delivery of goods to retail stores, and construction
supplies movement. Available in Delhi, Noida and
Gurgaon as of Feb 2015. Clocking 1000 orders per
month from clients including consumers, small
businesses and online retailers. Raised seed
funding from YouWeCan Ventures and other angels
including Vikram Chachra of Eight Innovate, former
PayTm VP Pratyush Prasanna, Anindya Shuvra
Sen, President of HR Reliance Jio Bijay Sahoo,
Nitin Sethi, Sameer Nagpal of Cocubes.com and
Doshi Family of Doshi Diagnostics.
Trucksumo: Truck Sumo is an online marketplace
for transportation solutions. Connects individuals
and SMEs with moving needs to transportation
companies who can fulfill those needs. Customers
enter their pick-up and drop-off locations on the site,
get instant quote and rate the experience after the
trip is over. Yet to launch as of Jan 2015. Founding
team from IIT, ISB and Columbia University. As of
Sept 2015, it provides services within Hyderabad
only.
Instavans: InstaVans is an on-demand intra-city
mini-trucks provider. Plans to use algorithms and
automation of processes to improve utilisation of
trucks and manage delivery times better. Planning
to launch mobile app soon. Currently catering to
Bangalore. Raised funding from Dell Services
president Suresh Vaswani's family office.
TurantDelivery: TurantDelivery is a provider of on
demand logistics services. Through tie-ups with
various partners, it provides runner boys for
hyperlocal and bespoke delivery, mini-trucks for
intra-city shipping and trucks for intercity goods
transport. Partnered with XpressRunner, Quickli,

LoadKhoj, Jugaado, CargoCarriers, Quifers, Zaicus,

among others.
Source: tracxn.com

Other players:
Mahindra Smartshift: Mahindra & Mahindra
launched an intracity logistics aggregator platform
called SmartShift, which will act as an exchange
platform for cargo owners and transporters.
Operates on an asset-light model, not owning the
fleet of mini-trucks. Allows anyone with a Small
Commercial Vehicle (SCV) to register on the
platform. Works on a reverse-auction system,
wherein the user sets the base price and the
transporters bid lower prices for the services. Both
parties rate each other after the job is done.
Operating as a separate business (Orizonte
Business Solution Ltd) from Mahindra & Mahindra.
In March '16, tied up with LendingKart for enabling
associated SMB's to get working capital with ease.
LoadingTempo, Logisure and YeloTempo in Jaipur,
MUVR and Tempawala in Ahmedabad and Indore's
Maalgaadi.

Global perspective on intra-city

logistics / aggregators
Global logistics players are highly organized. Typical
logistics problems faced
In emerging markets like India are virtually non
existent in developed markets. This is the reason
that intra city logistics are mostly covered by large
players that provide end to end solutions like UPS,
FedEx, DHL, etc. who have streamlined their

processes for inter-city logistics. Hyperlocal logistics

industry has mostly emerged due to demands and
necessity of current scnearios in Indian market.
Adding to the fact that developed markets generally
dont have SCVs(Small Commercial Vehicles),
visible mostly in emerging market, or small
businesses that operate them. Global ecommerce
platforms generally dont require 3rd party solutions
for last mile or intra city logistics. Most of the intra
city providers are small, unorganized businesses
like bike couriers, package carriers, etc. But there
are no organized intra city freight services except
for large corporations. Due to this dominance of
large players, hyperlocal and intra-city solutions,
specifically minitruck aggregators have not emerged
in the global context. It is a phenomenon specific to
regions like India, Singapore and China.

Trends and development

There is a huge mismatch between supply and demand in intracity/hyperlocal logistics, in India.
Customers and vendors alike have several pain points when it comes to logistics, and several
players have emerged in different regions to address these issues. Many platforms have
emerged to provide vendors, small businesses, and individuals with independent SCV
operators, to meet and cater to their shipping and transporting needs. Add to the fact that the
SCV transport industry in India is highly disorganized and undisciplined, these startups are
trying to solve these pain points.
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.
-iamwire.com
The SCV industry is expected to reach 1 million units by FY 2021. The key demand drivers for
the industry would be:
The need for last mile connectivity for both goods and people transportation
Better operating economics combined with better financing options making SCVs more
lucrative for end customers
New applications being developed to expand the market, prompting newer customers to buy
SCVs
source: Mahindra.com
Transportation presently accounts for 5.5 per cent of the GDP, and intra-city logistics is a
significant part of it in value terms
Mumbai alone accounts for 6 -7 million transactions a month in intra-city logistics, and there
are over 18 lakh vehicles available in the ecosystem across the country
source:business today

SWOT analysis of intra city logistics businesses:

Strengths
solves present customers pain points like reliablity, discovery, contact, price variabliity, safety
and quality of service
addresses the smal business owner/vendor/operator problems of vehicle utilization, customer
acquisition and protecting drivers rights
advantage of technology for wider customer reach and better utilization of trucks, route
optimization, etc.
accountablity / tracking of independent contractors
economies of scale to cut costs and maximise effciency and revenue
aggregation is an asset light model, not capital/resource intensive
Weaknesses
highly disorganized and split industry, need for proper structuring and organization of SCV
operators

low barriers to entry, overcrowded segment with many players entering the market
intense competition in the segment with no tried and tested successful model
most players are still trying build business and scale
hard to get drivers and contractors on board/verification averse
not easy to scale across geographies

Opportunities
huge gap in supply and demand, which provides a large, lucrative and untapped market
boom in e-commerce, coupled with the needs of frequently relocating students and
professionals has led to a spurt in the need for intra-city transportation
in intra city transport, it's hard for shippers to discover prices in real time. Also, there is
demand opacity and less visiblity where truckers ply their vehicles empty while they return from
a trip
more than two million registered small trucks that transport more than 1.5 million tonnes of
goods

Threats
local vendors and small SCV operators/fleets
threat of entry of large player in the industry

Summary
The hyperlocal market in India has been largely driven by a rising number of startups and
consumers (who prefer on-demand delivery). As compared to 2014, the Indian hyperlocal
market revenues grew at a rate of 41% in 2015. The research report reveals that the Indian
hyperlocal market will grow at a considerable CAGR rate, thus projected to exceed $343.6 Mn
(INR 2,306 Cr) by 2020. The exponential growth of online buying in India has resulted in lakhs
of packets to be delivered every day. Also, in recent years all major eCommerce players have
started offering next day and same day deliveries. Unfortunately, any supply chain is only as
strong as its weakest link and at present last mile is that weakest link. Economies of scale,
finely tuned operational efficiencies, advanced technologies and above all, high quality
manpower are the key factors that lead to success in last mile delivery.
After cabs, inter and intra-city trucks seem to be the next logical market for both Indian
entrepreneurs and VCs to go after in the logistics sector. The sector is unorganized to an
extent; people and truck operators face issues related to discovery, accessibility, and clarity on
price points. The market was controlled by the drivers and customers had no transparency on
the actual price points. The drivers, on the other hand, had idle times of about 40 to 50 per cent
while on their jobs. Minitruck aggregators have emerged to solve this problem.
Nowhere near profitability yet, the mini-truck aggregators are currently building business and
scale. Angel investor Ajeet Khurana believes that inter-city aggregators will scale up more
quickly compared to intra-city operators, which is more of an informal business. After bringing
all the stakeholders online, there is a higher matching of demand and supply which has led to
more efficient usage of available inventory. However, several of these intra-city aggregators will
not be able to survive because customer adoption is not enough, he said. People Group CEO
Anupam Mittal, who has invested in Porter, says the truck aggregation market is much larger
than the cab aggregation market but also highly inefficient. Therefore, it offers an opportunity
to introduce disruptive models and create value.
As he explains, the challenge is to create a service that solves the inherent problems. You
dont have control over the driver, he is out of your sight. This business is all about execution, it
is a high-operations game and teams that demonstrate that will make the cut. It is not a oneplayer game at the moment and there will be a handful of players as it is a large market, he
says.