Shubham Saroj
Rivigo is changing how we perceive Truck Drivers and that’s a Good Thing
Introduction – Rivigo is a technology-enabled logistics platform provider that offers transport services. It was founded in 2014 by Deepak Garg and Gazal Kalra. It is headquartered in Gurugram, Haryana, India.
Early Days – Rivigo started when the founders were on a road trip and they realized that the truck drivers have been marginalized and looked at as outcasts, which needed to change. They immediately knew what their calling was and they started Rivigo to ensure healthy working conditions for the truck drivers who were working in the logistics industry.
Rivigo is a technology company that is building the unique innovation of relay trucking, enabled by technology, data, culture and operational excellence. The novelty of this company lies in its unique business model of relay-trucking.
In other words, truck drivers drive for a few hundred kilometers, then the Truck Drivers are changed every now and then. The company decides these changes over stops, also called relay pit stops. Such an exceptional model ensures that the companies get the services of a truck every time. And the drivers can return to their families every day.
The goal of the company is to make logistics more human, faster, safer and cost-effective. Rivigo is solving a real and fundamental problem of truck driver shortage using a breakthrough relay model. Their mission is to ensure each truck driver, the pilot, now spends less time away from his family, thereby leading a life of meaning, dignity and respect.
They have been transforming the sector with their global-first driver relay model and cutting-edge technology to consistently provide unparalleled delivery times and reliability to our clients. Their technology obsession has resulted in simple, intuitive technology products gaining quick and easy adoption by the trucking industry.
They are contributing to building the new India by defining the next-generation trucking industry with accurate predictions, high levels of efficiency and simple automated operations. The company also has created a network of over 70 pit stops across the country. This translates to a driving distance of around 250 km or around five hours for a driver between pit stops.
The truck drivers are known as pilots and they are treated with utmost respect and dignity where they are paid timely wages along with other benefits such as life insurance and health benefits. In this process, the founders of the company solved the basic problems due to which people weren’t taking up jobs in the trucking industry despite being unemployed.
Some of the problems solved are as follows:-
- Truck Drivers now don’t need to be on the road for several days, weeks or months
- Poor working & Living conditions
- No further need to drive faster or in a riskier manner
- Reduced Stress due to less driving
- No further harassment from police authorities
Funding – Rivigo has raised a total of $268.7 million in funding over 11 rounds. Their latest funding was raised on Nov 2, 2020 from a Series G round. Rivigo is funded by 6 investors which are as follows:-
- SAIF Partners
- Warburg Pincus
- InnoVen Capital
- Trifecta Capital Advisors
- KB Global Platform Fund
Valuation – On September 2019, Rivigo officially entered the unicorn club with a valuation of $1.05 billion.
Revenues – Rivigo reported revenues of INR 1,080 Cr with expenses of INR 1,622 Cr, leading to a loss of INR 541 Cr. The company managed to cut its employee benefits cost by 11%, due to lay off of 100 people in Q1 of FY20. The logistics startup is now running after an asset light model, as the investors are demanding better unit economics.
Rivigo has recorded a 5% increase in its revenue in the financial year 2020 that ended in March last year. The company reported revenues of INR 1,080 Cr in FY20 versus INR 1,028 in FY19. Rivigo’s expenses also grew another 5% from INR 1,532 Cr to INR 1,622 Cr in the same time period, leading to a 6% increase in losses from INR 511 Cr to INR 541 Cr.
Acquisitions – They haven’t acquired any other startup as of now.
Controversies – There have been no major controversies as of now but the company had to lay off more than 100 people during the pandemic to gain sustainability as well as profitability.
Future Plans – Rivigo’s future plan is to use semi-autonomous technology to make the job of the truck driver safer and more efficient. The driver relay model coupled with the level 3 autonomous vehicles cam solve the issues associated with trucking and provide a cheaper and more plausible future than fully autonomous trucking.
Intermediate autonomous technology and relay driving are mutually symbiotic as together, not only can they make trucking safer and cheaper but also build a strong foundation for building fully autonomous vehicle technology. This tech will be a true game changer for the trucking industry.
Conclusion – To sum it up, relay trucking is a new and unique business model that will disrupt the industry and will give millions of truck drivers the respect and dignity which they always wanted. This model will ensure that both the company and its drivers will benefit in the long run and this proposition will favour as a win-win situation for everyone involved in the trucking industry.
But it isn’t as easy as it sounds as Rivigo faces massive competition from similar business models startups like Delhivery, who may give Rivigo a run for its money. Hence, they need to be careful with each and every step that they take in the future.
Who do you think will in this rivalry? Comment down below and tell us. We would love to read your comments and reply to them as well if we find them valuable. And if you want to know about Delhivery, then make sure to check out our blog on the startup.
