GoGo Truck, a Chennai based mini truck aggregator has announced that it has raised Rs. 50 lakh in its seed funding round from Madurai based angel investor, but the company has not revealed his name.
The fund raised in this round will be used to consolidate its operations in the Chennai market and then expand its services to Hyderabad. A part of the funding will also be used for marketing initiatives and brand-building activities.
Founded in March 2015 by Vasister Arun and Senthil Kumar, GoGo Truck is an online marketplace which focuses on intra-city transportation. It helps users to hire vehicles for moving household goods, transporting perishables, e-commerce deliveries and even construction supplies in and around Chennai.
The company has tied up with more than 300 drivers who have mini-trucks such as Tata Ace, Ashok Leyland Dost and Tata 407. It recently started operations in Coimbatore and claims to be getting 2,500 orders just from the Chennai region.
Customers can book mini trucks using the application developed by the company. Once the booking is done, the nearest truck drivers is notified about the trip details through SMS, and the interested drivers can choose to accept the order. The drivers then contact the customers, arrive at the pickup up point, and deliver the goods to the destination. Users can also book the service using the company’s mobile application.
According to the firm, business-to-business (B2B) customers comprise 70% of its client base, while the remaining 30% orders comes from the retail segment. It has tied up with FMCG and food delivery companies on long term delivery contracts. It is also offering monthly/weekly plans, and even customized solutions for Business-to-Business customers.
GoGo Truck’s main aim is to connect transporters, mini truck drivers and customers, and provide a 24×7 service. It is currently charging Rs. 16 per km, though they do tack on additional charges for making night time deliveries.
Recently, many startups have come up which are trying to connect logistics services providers with customers for intra-city transport and relocation services.
In this segment, the company will compete against the likes of The Porter, Pickingo, BlackBuck, FreightBazaar, etc. which are trying to bridge the gaps among companies, warehouses, transporters and truck drivers to ensure on-time deliveries.