A DETAILED CASE

STUDY
Submitted by (Group 33):
1. Vardaan Bajaj(161030116)

2. Nikita Rawat (16105073)

3. Tanishq Goyal(16105082)
INTRODUCTION

NAME
• Samay • Tier 2
Singla • JUGNOO • Tier 3
• Chinmay
Agarwal
FOUNDERS CITIES
SYMBOL AND IT’S SIGNIFICANCE

• Jugnoo means firefly. According to Samar, the word Jugnoo is

related to nostalgia and happy memories. When people see
an auto with a Jugnoo sticker, it becomes easier for them to
remember Jugnoo company. The name, thus, has a recall
value.
THE JUGNOO STORY
• Auto rickshaws are an essential medium of transportation in
India, especially in tier 2 and tier 3 cities. However, the sector
is still unorganized. Owing to this, many of the times, the
autorickshaw drivers have to sit idle, while many commuters
have to face inconveniences finding auto rickshaw. To fill this
gap Samar Singla and Chinmay Agarwal founded Jugnoo in
2014.
• Jugnoo is India's largest technology driven on-demand auto
rickshaw aggregator, which connects riders with safe, reliable,
convenient auto rickshaw just in few clicks.
THE JUGNOO STORY
• Founded in November 2014 by a handful of IITians, Jugnoo
began as India’s first auto-rickshaw aggregator with the
objective of making daily commute easy and reliable. After
bringing the on-demand revolution to daily commute, they
expanded their vision and dream of touching everyday lives in
a much bigger way.
• With 10,00,000 transactions per month across 45+ cities,
what began as a small company in 2014 is now spearheading
the evolution of the local Indian marketplace into a Digital
Reality.
• Jugnoo now provides a wide range of local services on-
demand - Auto-Rides, Groceries, Food Delivery, Meals,
Logistics and even a location-based local social network!
JUGNOO SERVICES

DODO
DELIVERIES

ASK LOCAL FLIGHT MAP

FATAFAT MULTILINGUAL
MENUS INTERFACE
BUSINESS MODEL

• Pricing at Jugnoo differs on a city to city basis. The strategy is

to be the most affordable A-2-B transport option for the app
users in that city. Some cities have a base fare + per km + per
minute charge, some cities operate on meter fare. You can
check the rates in different cities by downloading the app and
searching for the cities. The fare is displayed in the bottom
bar.
REVENUE MODEL

• Jugnoo charges a commission back from the drivers. The

commission rate is 10% of the ticket size in most cities. they
run a number of incentive schemes for the drivers, this again
is based on the stage of maturity in a city and the
engagement level of the drivers. It is trying to build efficiency
in the market where the final income of driver through
Jugnoo should increase to significantly more than what they
were earning on the road and the customer get a predictable
and cost-effective medium of transport. For food delivery, the
company charges merchants a commission and pays the auto
drivers for delivery.
CUSTOMER ACQUISITION

• In the initial days, Samar and Chinmay themselves met the

auto drivers and explained the concept of the company.
Convincing them to integrate technology in their routine work
was quite a challenging task. Besides for making the Jugnoo
app familiar to the target customer, the app was launched at
PECFEST of PEC University of Technology, Chandigarh. Also,
free rides were provided to people in Chandigarh.
PARTNERS

HELPCHAT
IXIGO ZOPHOP
(TAPZO)

OYE TAXI PAYTM

SCOOT MOBIKWIK
GROWTH OF JUGNOO

• When Samar Singla and Chinmay Agarwal started Jugnoo in

2014, they were clueless about the impact they were about
to have on the daily lives of people. While initially, the duo
launched an autorickshaw aggregator platform as a lark, they
soon realised the mess they had stepped into. While autos
are used as the major mode to commute for many in India,
the segment is still troubled with serious issues such as
recalcitrant drivers, exorbitant fares, and non-availability of
autos.
GROWTH OF JUGNOO

JUGNOO’S GROWING USER BASE

Jugnoo’s Growth Timeline
COMPETITORS
COMPETITION
• Jugnoo has a great market presence in the arena of Auto
rickshaw aggregators competes with startups like Ola, Uber
and newer ones like mGaadi, TeleRichshaw and AUTOnCaB’s.
However, the concept of Jugnoo is unique as it focuses only
on auto rickshaw space.
SWOT ANALYSIS
• A SWOT Analysis is a powerful tool to develop business
strategies for start-up firms as well as for existing companies.
This simple framework is used to evaluate the positioning of a
firm in a competitive market. SWOT analysis of Jugnoo s
Journey Disrupting Traditional Markets Through Technology
can lead the company towards making effective and wise
business strategies.
• The SWOT stands for-
 Strengths
 Weaknesses
 Opportunities
 Threats.
STRENGTHS OF JUGNOO
• The geographic presence in different regions can act as one of
the major strength of the organisation. It determines the
business’s reach to the target market and ensures the easy
accessibility.
• The wide product portfolio can allow the organisation to
expand the customer base and offset the losses from one
product category with benefits obtained from the other.
• Strong online presence on different social networking sites
and efficient social media management can enhance the
effect of positive e-WOM and develop strong relationships
with customers.
• Strong financial position and health can allow the firm to make
further investments.
• Access to the suppliers that offer raw material at a lower cost
can improve the overall business efficiency.
• The locational advantage can improve the competitive
positioning of the firm in various ways, such as- lower cost,
improved accessibility or enhanced brand image.
• The well-developed and efficiently integrated IT infrastructure
can improve the operational efficiency and increase
knowledge of the latest market trends.
• Competent and committed human capital can act as a
powerful source of competitive advantage, particularly when
business is service oriented in nature.
WEAKNESSES OF JUGNOO
• The organisation can draw the criticism from the
environmentalists for its poor waste management practices
and inability to integrate sustainability in business operations.
• The company may lose efficiency due to poor inventory
management practices.
• Insufficient budget for the marketing and promotion activities
weakens the firms’ ability to expand the customer base and
encourage repeat purchase.
• Less expenditure on the research and development activities
can weaken the company performance due to poor
local/international market knowledge.
• The inability to understand customers’ needs and expectations
lead to an ineffective strategic decision-making process. With
this weakness, the organisation may not be able to identify the
potential improvement seeking areas in product/service mix.
• The prices charged by the business may not be perceived as
justified when compared to the product/service characteristics.
It indicates the need to revise the pricing strategy.
• The poor customer service (such as inefficient customer
complaint handling) can trigger the negative word of mouth
about the business and affect business growth.
OPPORTUNITIES
• The exponential growth in the population, and particularly in
the existing or potential customer segments is a great growth
opportunity for the business organisation.
• The changing customer needs, tastes and preferences can act
as an opportunity if the business organisation has good market
knowledge.
• The advanced technological integration can decrease costs,
improve efficiency and result in the quick introduction of
innovative products.
• Reduction in the interest rates makes the fund raising and
financing at lower cost easier for the business organisation.
THREATS
• The changing regulatory framework and introduction of new
stricter regulations impose a major threat to the Jugnoo’s
Journey Disrupting Traditional Markets Through Technology.
It makes compliance with legal standards more complex and
challenging for the business organisation. Inability to comply
with changed regulations raises the risk of expensive law
suits.
• Shortage of skilled labour in the market can make it difficult
for the organisation to attract talent with the right skills set.
• The increasing number of direct and/or indirect competitors
affects the organisation's ability to sustain and expand the
customer base
• The rise in inflation increases the cost of production and
affects the business profitability.
WHAT COULD HAVE BEEN DONE
DIFFERENTLY?
• Jugnoo should have provided sufficient funds on marketing
campaigns. Only, social media marketing and referral
programs are not enough.
• It should not have done aggressive hiring during just few
months of establishment of company.
• It should have focussed more on data analysis as it would help
in predicting the company requirements and future and
improve its performance.
• It should implement good waste management practices so that
it should not affect sustainability of business operations.
• Customer service should not be ignored. Good customer
service is essential for business growth.
WHAT COULD HAVE BEEN DONE
DIFFERENTLY?
• Proper strategies should be thought to avoid excess delays in
launching of new products.
• Company can think little different as compared to other
delivering services. It can offer food delivery service to
passengers travelling in buses or trains because people don’t trust
the quality of food provided at bus terminals and railway
stations.
• Before moving abroad, Jugnoo should have created a solid
customer base in most of Tier 2 and Tier 3 cities of India. This
would have made Jugnoo a common household name and that
would have yielded significant returns based on their intrinsic
strategy of motivation.
CONCLUSION
• Undoubtedly, Jugnoo has improved wage scenario for the
autorickshaw drivers as well. A dedicated driver earns up to
25k per month and this is possible by optimized usage of
their time, live know-how of best paths they could take to
reach the destination and of course less bargaining. Team
Jugnoo does not favor perks and considers them as a sign of
weakness of their business model. In India where
approximately 30 million auto rides are taken and Jugnoo is
currently involved in 0.1 % of it, hence there is a huge
potential to be exploited.
• Jugnoo’s aims to extend its services to the remotest corners
of the country. Also soon it aims to become a major
international player.
THANK YOU!