A company that e-commerce is good at fulfilling its orders is a good business. It is measured by its ability to fulfill last-mile deliveries or the final leg of its supply chain. Last mile logistics must be completed at lightning speed in order to create a loyal customer base.
Sourabh Chatterjee launched Uncle delivery last June in a bid empower Small and Medium Enterprises (SMEs). It has grown to include over 86,000 drivers as well as an active user base of nearly 24,000 users.
Uncle Delivery currently operates in Bengaluru and Mumbai, Delhi and Hyderabad, and has approximately 235 employees.
They don’t have the hassle of negotiating prices or settling for a vehicle that isn’t available. Uncle Delivery brings convenience and low-cost solutions to their doorstep that traditional logistics markets cannot offer,” says Sourabh Chatterjee (Executive Director, Uncle Delivery).
What is the secret to it?
The app has two versions depending on whether you are a driver or a user. The User version allows anyone to place an order to move their goods anywhere in a city or region. Uncle Delivery will receive the order from its nearest partners, who have been verified and registered on its Uncle Delivery Driver App. Once a driver accepts an ordered, they connect with the user to pick up and drop off the goods.
Sourabh says, “Through AI, on-ground market surveillance and matching the User request with best-priced Supply(driver) to execute it, and for the same we charge the Commission/lead fee from our Partner (driver),”.
Uncle Delivery verifies drivers by verifying personal documents and details about the vehicle they use.
Uncle Delivery is the core of a highly lucrative business. According to a Redseer study, intracity logistics by road will grow to $372 billion in 2026. According to the study, 60% of intra-city logistics will be driven primarily by on-demand businesses. This is the act of providing services to customers based on their needs. Because of the time savings and lower capital required to develop your own fleet, on-demand businesses can be considered more cost-effective than traditional business models.
Uncle Delivery can cater to anyone, from individuals to small businesses, by following this business model. Uncle Delivery also sees itself as an aggregator platform. This is similar to Zomato and Swiggy, which don’t have their own fleets, but rather hire staff to carry out their services.
How to fund and how to get there
Uncle Delivery is managed by an unknown group of private investors. Porter is considered to be the closest competitor. Uncle Delivery is focused on moving goods within a specific region, and not between cities. However, their current focus is on intra-city, same-day on-demand delivery. Sourabh says that Porter’s main business is intracity goods movement. This is very similar to ours.
Uncle Delivery provides services in three categories: two-wheelers for smaller goods, three wheelers to transport slightly larger goods, and four wheelers for trucks. Our platform offers a variety of vehicle types that are priced so we can be cheaper than the rightly priced competitors. He says that users will find our platform attractive.
Sourabh says that the company has established a GMV trajectory of Rs 1.5 Cr per Month by Year-To–Date (YTD), July’23, with a forecast INR 43 Cr of GMV at the end of FYMarch’23.
The gig economy
The gig economy in India is currently being formalized. According to NITIAayog, nearly 77 million people were employed in gig economies in 2020-21. This number is expected to rise to almost 2.35 crore by 2030.
According to the report India’s Booming Gig Economy, gig workers will make up 6.7% of India’s non-agricultural workforce by 2029-30. This is 4.1% of India’s total livelihood.
Uncle Delivery doesn’t penalise employees like its competitors. Sourabh says that Uncle Delivery offers affordable services with high earnings for drivers. He also states that drivers are not penalized for inactivity and that they do not require minimum login hours.
We also offer milestone-based incentives to drivers in order to ensure that drivers earn a good income. He explains that a highly active driver on our platform can earn more than on other platforms.