Rivigo - The one and only trucking relay model in the country!

Only when we thought that logistics can no more get interesting and is at the top of its game, Rivigo was set up in 2014 by former Mckinsey consultants Deepak Garg and Gazal Kalra. With the sole idea of creating a relay truck model, where no vehicle driver would drive for more than four-to-five hours at a stretch and also would return home the same day.

Company Name Rivigo
Headquarter Gurgaon, Haryana
Sector Logistics
Founders Deepak Garg,Gazal Kalra
Founded 2014
Website rivigo.com

Rivigo - About and how it works
Rivigo - Target Market Size
Rivigo - Founders and Team
Rivigo - How did it start?
Rivigo - Startup Launch
Rivigo - Business Model and Revenue Model
Rivigo - Startup Challenges
Rivigo - Competitors
Rivigo - Funding and Investors
Rivigo - Growth
Rivigo - Future Plans

Rivigo - About and how it works

Rivigo Logo
Rivigo Logo

Rivigo is changing the route of logistics in the country by launching the relay model of trucking and heavily deploying the technology. In the process, it is also ensuring that the truck drivers who used to be on the road for 20-30 days at a stretch now get to sleep in their bed every night.

A truck relay! Sounds interesting right? Let’s see how this platform caters to its target audience.

  • The mobile application of Rivigo is built for the drivers to make their life simpler by providing a one-stop solution for all their needs. This application is more image-based than text and is available in 11 different languages. Also, it tracks everything a driver needs to do, from notification of duties to surveys.
  • The pilot gets the duty alert on the phone and he reaches the pit stop. There, he scans his unique QR code which is a testament that he has reached the required destination. This way the incoming pilot gets the alert on his application on the subsequent pilot that he needs to hand over to.
  • The interesting part is that there is a technological handshake through QR codes on the two pilots’ app. The pilot who is taking over has a checklist regarding the truck’s and shipment’s condition which he needs to verify through the Rivigo application. And all this takes less than five minutes following which the pilot can drive off to his next pit stop.
  • This whole magnanimous process of routing and assigning of pilots is taken care of by Rivigo algorithms. Rivigo’s trucks are all IoT-enabled with the feature that tracks the vehicle in real-time. This ensures reliability and avoids breakdowns.
  • This smart and real-time monitoring took off to another level when Rivigo launched refrigerated trucks for the fresh produce sector of the economy. Here, the clients can check the thermostat and regulate it through the mobile application.

Also Read: List of Top Logistics Startups in India


Rivigo - Target Market Size

According to a recent survey of the economy, the Indian road freight market is estimated to be worth around $150 billion. And Rivigo believes that they are operating in a monopoly market with no other company that is in direct competition. Their model is one of a kind in a large enough market with room for multiple players and there are multiple different problems to solve in the sector.

Rivigo - Founders and Team

  • Deepak Garg- Graduated from IIM Lucknow, Deepak worked as a software developer at Geometric Ltd. and by the time Deepak launched Rivigo, he had spent close to a decade at McKinsey as a consultant and was deeply involved in the logistics and automotive sector.
  • Gazal Kalra- Gazal has a dazzling MBA from the Stanford Graduate School of Business and a master’s in Public Policy from Harvard Kennedy School. Before launching Rivigo, Gazal was a consultant at the World Bank Group. Interestingly, she was also a parliamentary associate of Lok Sabha for close to two years.

Rivigo - How did it start?

All of this started when McKinsey and the National Skill Development Corporation (NSDC) happened to conduct a joint study to identify where India most needed skilled jobs. And to everybody's surprise Logistics and construction emerged as the top sectors. That's Exactly when Deepak Garg decided to take some time off from work, and flea on a road trip to interact and connect directly with the truck drivers to understand the reasons behind the shortage of drivers.

“It all started with a road trip, listening to the truck drivers and realizing that they have been marginalized and looked at as outcasts, which needed to change,” says the founder of one a kind Truck Relay.

Rivigo - Startup Launch

While Deepak was just getting acquainted with the idea of the startup, he met with his future co-founder Ghazal Kalra over coffee. That time, she had just gotten back from the US after finishing her joint program and was looking to put together a startup. Deepak and Gazal had not worked together yet, but Deepak knew Gazal through her husband who happened to be his colleague at McKinsey. To get a primary idea of what was happening on-ground, Gazal decided to hit the road herself. She was looking to understand the underlying reason behind Indians not taking up paid jobs like truck drivers. And the most surprising fact was this was the condition despite the massive unemployment ratios in the country.

Reminiscing, she said, “At a village in Rajasthan some three-four unemployed men were sitting around playing cards. I asked them: ‘Why don’t you consider the option of becoming a truck driver?’ They took great offense to the question. One guy said no one would marry him if he took that option, while another said he had studied till Class 8, not for such a job.”

Analyzing this stigma on the mindsets of the people, this duo realized that there were several reasons why the “truck driving” profession has traditionally been frowned upon. Among these reasons, the biggest one was owing to drivers staying on the road for a stretch of days. So this meant that truck drivers go home three-four times a year. Also, this profession was perceived to be a high-risk job mainly because of factors like poor living conditions, vulnerability to contracting HIV, drug, and alcohol addiction, and pressure from truck owners to drive more and faster. Somehow both these co-founders knew that if they work out an arrangement where they could send the driver home the very same day, the whole scenario could be reversed.

Rivigo - Business Model and Revenue Model

Rivigo to date has always declined to reveal the pricing modules that it charges to its app users, i,e., customers. But the company made a point saying that their clients see a saving of 12% to 20% in overall logistics cost when they use the Rivigo application. However, Rivigo has not been able to pass on the entire cost-benefit to clients.

Rivigo - Startup Challenges

  • Theoretically, this system sounds simple enough. But in reality, this process is very cumbersome. Rivigo has created a network of over 70 pit stops across the country which translates to a driving distance of around 250 km or around five hours for a driver between pit stops. But this to go as effortlessly as imagines, the team has to ensure full control and monitoring of the mechanism.
  • And that’s not it. The pilot who is handing over the truck again needs to board another truck that is coming in the opposite direction. So, essentially the trip planning and routing are required to be done optimally that trucks are traveling in both directions in the about a similar time.
  • Also, one of the major challenges faced by Rivigo is finding the right set of drivers and has, therefore, requires huge investments to build an effective HR process. Both the co-founders have tried to create a hiring process for drivers that is as stringent as the management hires involving checks for behavior, attitude, and technical skills. All drivers go through strict and regulated training programs at Rivigo.

Rivigo - Competitors

Although Rivigo believes that they do not have any direct competition in the industry. However, in recent years we could see truck marketplaces such as Blackbuck, Lobb, and Trukky entering the market. Not just that, there are ventures like Delhivery and Ecom Express, operating in the same segment, who offers a holistic combination of warehousing, line haul, and last-mile delivery services.


Also Read: LogYcode - Digitizing and automating the Logistics and Supply Chain


Rivigo - Funding and Investors

With its latest funding of $65 million, Rivigo entered the elite unicorn club. This funding was raised from existing investors Warburg Pincus and SAIF Partners. To date, Rivigo has raised $180 million.

Rivigo - Growth

  • Owns a fleet of 3,000 trucks
  • Covers 29,000 pin codes across the country.
  • Curated an undisturbed network of over 70 pit stops and 200 branches.
  • Recently launched National Freight Index (NFI) to provide live freight rates for different lanes and vehicles across the country.

Rivigo - Future Plans

Gazal said: “Rivigo is only getting started: Our philosophy from day one has been that this is a large sector to solve for. We want to build Rivigo into an institution that will last beyond our lifetime. Our aspiration keeps growing every year. But the main aspiration is quite simple – make India number one in logistics in the world.”

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About Vidhi Punamiya

  • Mumbai
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