Logistics space yet to see big transformation in tech adoption

With an intention to bridge the gap between movers and packers, and the end consumers, Shift Freight formally launched and started its operations in February 2020. The movers and packers aggregator has now grown to nearly one-lakh-strong customer base across the country. The app eliminates the efforts involved in searching movers and packers and places instant bookings for on-demand shifting and roadside assistance services in six States. In an exclusive interview with Bizz Buzz, Avinash Raghav, Co-founder of Shift Freight, spoke about how their platform made shifting easier, reliable, quick, and time-saving

After a consignment is surveyed, the details are shared with all shifting partners who bid to come up with the most competitive pricing. This is a win-win situation for the customers as they get the best possible pricing without running from pillar to post

Trucks getting stranded due to red tape, especially during long-route transit, are a usual sight, but it can be eased if paperless authorisation is implemented by the authorities. Another point where the government can play is in restricting the skyrocketing prices of fuels like petrol and diesel

What is the story behind your startup? What inspired you to launch Shift Freight?

Gone were the days when moving things used to be a tiresome task. Our journey started in October 2019 based on the findings that most of the logistics companies were into the B2B segment and not much was in offing with regard to the consumer sector. Shift Freight provides one-stop services for all shifting needs.

How technology enabled-companies have breakthroughs in the traditional freight transport business?

The traditional freight transport business in India, especially in the movers and packers segment, has always been scattered and disorganised. The differentiator in the space has come in the form of tech-based aggregators that have leveraged technology to provide standardised, economical and secured services.

The aggregators like Shift Freight have a wide network of movers and packers spread over different locations across the country and are managed with the help of tech-powered tools. For instance, our app has an automated bidding system in place that results in the end consumers getting the best pricing.

What advantages do the customers enjoy, while booking on-demand freight services on your platform? How affordable are your services when compared to unorganised vendors?

The first factor that helps us gain as well as retain customers is our massive pan-India network of movers and packers across different geographical locations. It helps in smooth and unhindered movement of goods in transit even on long routes. Tracking of a consignment in transit has also become glitch free with cutting-edge technological innovations.

Also, a day before the shifting, a dedicated shift coordinator gets in touch with the customers, apprising them about developments before and during transit till the last mile delivery. This eventually allows the customers to trust the services available as they get accurate information even when there's a roadblock. Customer delight at the core of operations is actually our USP.

With regard to pricing, we have an automated bidding system in place. After a consignment is surveyed, the details are shared with all shifting partners who bid to come up with the most competitive pricing. This is a win-win situation for the customers as they get the best possible pricing without running from pillar to post.

What is the total number of orders your company delivers in a month? Let us know about your vendor network and team size?

By December 2020, we were receiving nearly 20 odd orders per day, which has now grown at least four times to stand at a minimum of 80 orders per day. The immediate target, however, is to reach 200 orders per day, which would soon become a reality. The vendor network is massive and spread across all regions within the country.

We started with a team of nearly five people, but within a year we went for nearly 12 times team expansion, with at least 35 people in operations and around 25 people in technology. Each new entity is signed up as a Normal Vendor and once their services are found to meet the company's standards and protocols, they are elevated to be Super Vendors.

How Covid-19 pandemic affected your business?

The very launch of our business almost coincided with the outbreak of the pandemic. We all have witnessed the mayhem unleashed by the pandemic and lockdowns on businesses across sectors and industries. But, there have also been a few positives that cannot be ruled out, foremost of which is the enhanced level of adoption of technology.

The pandemic also resulted in a large number of relocations across the country, with many residing in rented accommodations in metro cities moving back to their hometowns, and it was technology that made contactless shifting a reality. Some of the tools that became the facilitators here include video call surveys and cashless payment modes.

How did your business survive the challenging times during lockdowns and restrictions on movement?

The business did come to a standstill even before getting a kickstart, but that left us with an adequate time frame to strengthen ourselves technologically. We immediately shifted our focus to boosting the strength of our technology teams and realigning the operations in accordance with the new normal.

We made sure our shifting partners were well trained and equipped with all essentials like masks, sanitizer, vehicle sanitizing machinery and PPE kits. This kept both our team members as well as consumers risk free. While such timely measures helped significantly, we kept our customers on the top pedestal by hiring resources that were good at customer service skills.

In how many cities are you operating currently? Tell us about your expansion strategy.

Though the company is based in Noida in the national capital region, within a short span, we opened offices in Hyderabad, Chennai and Bengaluru. Gradually as our customer base swelled, we became operational in centres like Pune, Mumbai, Lucknow and Kolkata as well. Currently, we are located in all zones, with smaller offices in many tier-2 and tier-3 cities as well.

We are focusing on further strengthening and widening the network of our shifting partners. We are also eyeing penetration in areas that are yet to be covered by us.

Are you providing B2B services as well?

Yes, we are providing both B2C as well as B2B services. Apart from intra-city relocation of household goods, we offer inter-city relocation of household goods and vehicles. We are also into inter-city and intra-city office relocation services. Besides, we have tied up with some of the major corporate entities in helping their employees shift bases.

Do you see any challenges in logistics space in the current scenario? Are you seeking any support from the government to boost the movers and packers segment?

The logistics space is yet to see massive transformations with regard to adoption of technology and operational efficiency. The hotel and car rental aggregators have become a household name, thanks to the sheer comfort and ease they provide in booking services. Such a drastic change is not seen in consumer behaviour when it comes to movers and packers space.

While this needs a proactive approach by all industry stakeholders, it also requires a boost from government and authorities. Trucks getting stranded due to red tape, especially during long-route transit, are a usual sight. It can be eased if paperless authorisation is implemented by the authorities.

Another point where the government can play a significant role is in restricting the skyrocketing prices of fuels like petrol and diesel.

Can you reveal the investment details of your company? Are there any fund-raising plans in near future?

We have started with $1 million from our angel investor and have been able to sustain and become profitable in a short duration. We are not looking for immediate funding, but we are open to investors who are like-minded.

What is the market size of the movers and packers segment of the logistics industry in India? What is the market share of your company?

The movers and packers market here is around Rs15,000 crore annually which is mostly unorganised. As we are a new company, we are just warming up to the market requirement. We have gone up from 30 movements a month to 2,000 movements in the last 18 months. So, we are still small in terms of the opportunity pie.