Mahindra SmartShift—the first intrapreneurial start-up incubated within the Mahindra Group in the digital mobility space—is aiming at redefining the logistics business in India. It is a technology enabled platform based on the market place model that connects cargo owners and transporters for on-demand logistics requirements and helps them work with each other towards a mutually beneficial relationship. The platform is aimed only at the small commercial vehicle segment, currently the market for which is largely unorganised in India.
After running its operations in Mumbai and Hyderabad, it has now launched its Benglauru operations. Post this, it is also planning to launch its platform in all the metros, including Chennai and Delhi NCR and subsequently plans to cover 29 other cities in the country.
The company claims that ever since the launch of its platform in October 2015, it has garnered over 12,000 stakeholders and clocks approximately 1,200 transactions every day. It also aims to add value to one million stakeholders in three years. Cargo owners (both businesses and individual users) can access the SmartShift service through a mobile app (available on Android), the website or through a dedicated call centre. The platform has a feature of ‘Reverse Bidding’ through which the app emulates the bargaining process between cargo owners and transporters, allowing them to close the deal at a mutually acceptable price.
The company is also says Mahindra SmartShift platform has the ability to offer transparent pricing, a single click booking process and the capability to track cargo after dispatch. It is also possible for users to book a vehicle in less than three minutes and negotiate the best price through its ‘BID’ feature. The company charges 15 per cent commission on the total trip value from the transporter.
“According to a report, the logistics industry in India is pegged at $130 billion with 35-40 per cent of it being in the intra-city space. It is also estimated that 18 lakh small commercial vehicles complete millions of transactions daily, across the country,”explained Kausalya Nandakumar, CEO, SmartShift.
This start-up is also aiming to guarantee return trips to the transporters. “We have seen that many of the vehicle drivers and transporters who were earlier getting on an average one or two jobs in a day are now getting at least ten jobs a day through our platform. We are aiming to tap transporters in the FMCG space mainly in liquid distribution and e-commerce space...In the cities we are operating in, we hope to expand our business through positive word of mouth amongst transporters," added Nandakumar.
