Chapter 2, The Portfolio Chronicles
How does a local merchant compete and collaborate with his bigger competitors in such a hyper funded consumer internet space. With the consumer being spoilt on choice and price having a third variable of on-demand (timely delivery) is a huge challenge.
Traditional business’ houses have viewed logistics as a part of the 4PL solution and thus warehousing, vehicle ownership, intra and intercity logistics were loosely grouped together as one offering. With the advent of eCommerce, each part of the value chain is being broken down and solved by specialized ventures. Having come from a family that deals in 4PL, I could see how the new generation of startups were breaking down the traditional workflow and thinking.
The logistic business in india is $130billion and is growing at 10% with local logistics being a significant pie which was always viewed as a loss maker. We feel the opportunity in local logistics is going to grow exponentially with the advent of on-demand and quicker delivery expectations by clients, especially with the advent of Amazon Prime, Uber Rush, Flipkart first and Snapdeal express.
We believe that one can build a profitable first and last mile logistics business through the creation of a full stack technology platform viz-a-viz an operationally heavy (people centric business) with RoadRunnr being the leader in that space.
Mohit, Arpit and the rest of the team have a great understanding and experience of building scalable platforms from their time at Flipkart, Ola, Amazon, Thoughtworks and Infibeam. Having seen the entire workflow of consumer ordering to order fulfillment the team was able to appreciate the complexity of the local logistic challenges and using their vast network, attract the right skill set to help them build this platform successfully.
The beauty of the platform is that it should allow any component to be assigned particular attributes based on which the system automatically matches them in the right que. This allows for a modular design that allows for product awareness (grocery, laundry, food and more), vehicle differentiation (cycles, petrol/electrical bikes, trucks and more) and location intelligence.
RoadRunnr will become the defacto destination for – anything, anywhere(local) anytime…
RoadRunnr is a Blume portfolio company. For decades, logistics grew in an extremely fragmented fashion to handle intercity, intracity, bulk, courier etc. The emergence of an e-commerce industry, unthinkable delivery turnaround times, an on-demand economy has created the need for a different order of locational intelligence and demand/supply management. Blume has been a believer for some time in commerce enablers, specifically in Logistics / supply chain – witness our investments in Nivaata and Grey Orange Robotics (Fund I) as examples.