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Rivigo using Technology to Disrupt Indian Logistics Industry

February 23rd, 2017

Rivigo is one of the fastest growing technology enabled surface transport companies in India. Rivigo developed a unique model (relay model) wherein they have been able to double average utilisation level of trucks from about 6,000 km per month (conventional model) to about 12,000km per month. Rivigo’s focus is to reduce turnaround time rather than existing models in the industry which focus on saving costs.

The Rivigo Technology
At the heart of RIVIGO’s model is the dependence on technology to solve common issues facing the trucking industry – pilferage, leakages, etc. They have developed over 100 products and three of them are patented in the US, including the fuel system. They provide fuel cards to ensure that fuel is filled through electronic payments, ETC TAGS for national highway toll payments and drivers carry minimal cash and focus their energies on driving.

Core Logistics Operation of Rivigo is superior in India
The company launched 3 products – Rivigo Prime (Full Truck Load), Rivigo Green (Cold Chain) and Rivigo Zoom (Part Truck Load). Rivigo’s unique relay model has been able to double average utilisation level of trucks from about 6,000 km per month (conventional model) to about 12,000km per month. Example: Rivigo can move a truck between Mumbai and Delhi in 26 hours compared to competition which takes almost twice the time. In a relay model, typically with Full Truck Load which ranges over 1,500 km distance, only one driver runs a truck for a certain distance (250-300 km) and then a new driver replaces him. The driver is able to return to his originating place the same day by taking return load, which is identified with help of technology.

Where we Disagree with Rivigo ?
Rivigo follows an asset heavy strategy to help build economies of scale, and currently owns and operates a fleet of ~1,500 vehicles. Instead of this, the company must forge a partnership with Truck Manufacturers like Tata Motors and Ashok Leyland and force them to lend trucks on “Machine as a Service Model” by sharing complete Analytics of the Truck’s usage and share profits with Manufacturers.

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