Applying artificial intelligence and big data in the full truck load segment, Mavyn is fast winning immense trust and goodwill in an industry that is rapidly absorbing unified freight consolidation with automation, writes Rajesh Rajgor
Ever since the two-sided network model that connects customers with service providers using technology has seen success in business models like Ola, Uber and Airbnb, many sectors from food to freight have accepted digitization with the help of artificial intelligence and big data like fish takes to water. The whole idea of an ecosystem with little or no manpower involved – using computerisation to re-factor the end-to-end transportation process and aiming to provide best prices and services to shippers – is now becoming a natural and simple next step of evolution. This is turning several traditional business models into technological entities!
Additionally, the growing interest of venture capitalists (VCs) eyeing the Indian logistics space for funding is further fuelling the growth of technology-based aggregators. “The logistics industry has been on the VCs list ever since 2007. Post 2010, the first phase of investment came in seeing the favourable market sentiments, both in the long-haul segments and last mile deliveries. In current times, the lockdown brought about by the pandemic has forced many logistics service providers (LSPs) to revisit their business models and scout for VC funding,” elaborates Sachin Haritash, Founder and CEO, Mavyn.
Sachin is indeed correct; however he and his start-up partners, Rajesh Haritash, Co-Founder and CTO; Rohit Jain, Co-Founder and CMO; and Atul Kawatra, Co-Founder and Non-Executive CFO didn’t have to look beyond their roots at Chetak Logistics to establish their enterprise in 2018. “Raising initial funds from the Chetak Group and in personal capacity from friends, we started Mavyn, an app and web-based freight exchange platform. Today we provide end-to-end shipping needs to companies with the help of artificial intelligence that allows shippers to book shipments within seconds.”
“While the pandemic has turned many businesses over their heads, it has also postured new opportunities with respect to technology. The logistics sector has largely been manpower- centred and we wanted it to be dependent on automation. With Uber and Ola models successfully depicting how technologies enable efficiency and collaborative operations, it was time that the Indian long-haul and last mile logistics space lap up to the digitisation. The model has worked wonders and the response is terrific,” he adds.
Going Online
Mavyn primarily focuses on express truckload of more than 800 km transportation in India. Its services are bracketed in three categories: normal up to 400 km, express up to 800 km and prime with over 900 km. A potential shipper either has to log on to the website or use an app to place an order. Post the registration, the customer has the liberty to choose the route, the type of truck or trailer he requires and then confirm his booking. “Our platform offers the most competitive rates to the shipper. We have verified a fleet of trucks and drivers that facilitate hassle-free and trustworthy load delivery from point A to point B,” Sachin says.
“Growing from our first shipment to successfully completing 15,000+ shipments, we truly believe that it is our quality and consistency with paperless delivery that has helped us grow. Being a technology-driven company, we insist on enabling drivers with smart phone so that they update their location by using the Mavyn driver app. This allows our shippers to stay updated about their shipment location throughout the journey. Our customers can also avail the facility to track live movement of the shipment. The Mavyn app has an in-built auto alert through SMS and email,” he adds.
Elaborating about the business model and revenue generation, Rajesh Haritash, Co-Founder and CTO, explains: “Mavyn operates in an asset-light marketplace model similar to Uber and Ola. Our revenue model is based on a take-rate basis at a point of time. This proves to be the difference between our total cost of accessing the supply and the returns we get from the customer for the logistics service provided. Depending on the availability of trucks, the prices vary. Our operational team, currently comprising 25 people, monitor the availability of trucks at a given point of time and then help regularise the rates.”
“All our truck partners are verified by a trusted broker and are credible, helping us serve contract-based clients as well as ad-hoc orders,” he adds. Mavyn has found takers with companies sharing a similar thought process. “From Groffers, Myntra, Pidilite to Tata Chemicals, Amazon and Hindustan Unilever, we cater to clients across the spectrum. Our transportation network covers 34 districts and 7,850 routes. Our digital presence helps us clock 80 percentage lower operating expense as compared to traditional and large logistics companies in India,” he Rajesh informs.
Truckers in Sight
While the customer side setup was relatively easier given the consumer expectations, the truckers’ app setup was made more robust to include factors like payment, POD setup and one that exudes credibility and transparency for the truckers. “Many of the truckers in the northern and western part of India know us and are ready to join the portal as service providers. However, truckers in the southern and north-eastern parts of India pushed us to create a more inclusive app with simple features that is extremely user-friendly. We assured them payments within 72 hours and we have fulfilled all such contracts,” Sachin states.
“Since each truck is embedded with a GPS tracker and Mavyn app with the truck driver, it is easy to watch where the material has reached. Once an ad-hoc order is processed, customers can make 80% advance payments on the platform and the balance 20% on delivery. Some other features include track and trace, truck mapping, verifications, professional account management practices and checking the health and condition of the truck. It also includes information on daily movement of goods according to truckers’ routes. This ensures that the truckers associated with us never run out of trips even during the off-peak season. Over a period of time, the platform has evolved, thus making the product simple for the transporter,” he adds.
Mavyn aims to be the largest truckload platform in India, having its network spread across all districts of India with the number of shipments exceeding 2,000 tonnes per day. Even though the ongoing pandemic has cautioned people to spend only on essentials, Mavyn, which has seen a year-on-year growth of 15% in the last three years, is optimistic about continuing with the growth story. “Today we have reached a scale of 1,000 tonnes per day of service spending 3% of our employees’ cost. However, our aim is to achieve the lowest employee cost of 1%, which will be the lowest across the world in the trucking industry,” Sachin says.
“We have clocked a turnover of Rs 36 crore in FY21 and are optimistic of crossing a turnover of Rs 55-60 crore. This will primarily be on account of large volume orders for essential goods in cities with severe restrictions due to the second wave of the pandemic. Additionally, with greater technology efficiency we want to improve truck utilisation and reduce wastage of fuel in the supply chain. We already have been insisting on trucks to have FASTags for faster turnaround time. At any given point it will be our technology-enabled efficient service that will be the differentiator,” he sums up.