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RaRa Delivery gets $3.25M for its ambitious on-demand delivery plans in Indonesia – TechCrunch

RaRa deliveryAmbitious goal is to provide same-day delivery in Indonesia without burning cash like many on-demand logistics providers. The company today announced that it has raised $ 3.25 million in seed funding led by Sequoia Capital India’s Surge Program and East Ventures. Other participants included 500 Startups, Angel Central, GK Plug and Play, and angel investors Royston Tay and Yang Bin Kwok.

Launched in 2019, RaRa Delivery relies on a unique engine that batches orders based on data such as real-time traffic information and optimizes delivery routes. It currently operates in Greater Jakarta and is preparing to expand to five other Indonesian cities this year.

RaRa Delivery’s goal is to integrate with all major marketplaces in Indonesia. This allows sellers to offer RaRa Delivery as a delivery option to their customers. We also partner with brands, small e-commerce businesses and seller aggregators. Notable clients include e-commerce platform Blibli, coffee delivery startup Kopi Kenangan, Grab Merchant, healthcare platform Alodokter, and grocery store Sayurbox. According to RaRa Delivery, daily order volumes have increased 15-fold over the past year, partly due to increased demand for food and drug delivery during pandemics.

Prior to launching RaRa Delivery, co-founder and CEO Karan Bhardwaj worked in Unilever to manage the e-commerce supply chain in Southeast Asia and Australia. During that time, he worked on different types of distribution channels, including marketplaces, e-commerce aggregators, and last mile delivery providers.

Over the past few years, Bhardwaj has been watching changes in customer expectations for deliveries. Many are not satisfied with even next day delivery. They want their orders to be delivered on the same day, often within a few hours.

“It’s not a luxury to need a good experience over time,” says Bhardwaj. There are Amazon Prime in the US, SF Express courier in China, and Coupang in South Korea, but “the adoption of same-day delivery has not reached its true potential in Indonesia due to the lack of a suitable supply solution. Exactly that. Is what we are. We are about to crack. “

Bhardwaj added that he is willing to pay 2-3 times more for same-day delivery than next-day delivery, and even higher for delivery within an hour.

However, many traditional logistics players with a hub-and-spoke delivery model are not designed for on-demand delivery. On-demand providers, on the other hand, have higher operating costs because the driver processes one order on a single trip.

“If a company has 10 orders, we will send 10 drivers and everyone will receive one order,” says Bhardwaj. “They can provide a 3-hour delivery service, but there is no integration or optimization. The cost per order is very high, there are distance and weight restrictions, and no cash on delivery is offered.”

RaRa Delivery’s real-time batch engine was created as a more scalable and sustainable alternative. The company’s driver fleet processes orders for a wide variety of businesses, including food and beverages, groceries, healthcare and e-commerce. All of these businesses have different time requirements for delivery. For example, a restaurant must deliver within an hour, but a grocery store can deliver up to 3 hours, and an e-commerce store can deliver up to 8 hours.

Once an order is placed, RaRa Delivery’s system groups them into batches and optimizes capacity, distance, time slots, and driving routes based on real-time traffic data. There are 2 to 15 orders in batches, and the composition is flexible. For example, some batches may require a series of pickups followed by deliveries, depending on what creates the most efficient route, while others may have scattered pickups.

According to Bhardwaj, this will allow RaRa Delivery drivers to make multiple deliveries in a single trip, increasing the amount of money they can earn and reducing downtime. Each batch of RaRa Delivery takes approximately 2-6 hours to complete.

“In a normal on-demand scenario, the driver takes an order, completes that order, and waits for another order, which reduces the driver’s potential revenue,” he said.

RaRa Delivery also allows cash on delivery. Usually, when a delivery service offers cash on delivery, it means that the driver needs to return to the hub to drop the money. RaRa Delivery’s tailored products indicate to the driver the amount of cash to collect for each order. Once they are complete, a code will be generated that allows the driver to deposit cash using a convenience store instead of a hub.

Startup plans for seed financing now include expanding the product ecosystem, including batch engines, seller portals, real-time order tracking, customer chatbots, and COD adjustments.

The initial deployment focuses on Indonesia’s Tier 1 cities before expanding to smaller cities and covering the whole of Indonesia within a few years. Since then, RaRa Delivery plans to expand to other countries. According to Bhardwaj, batch engines are geo-independent and require minimal localization for new markets.

RaRa Delivery gets $3.25M for its ambitious on-demand delivery plans in Indonesia – TechCrunch Source link RaRa Delivery gets $3.25M for its ambitious on-demand delivery plans in Indonesia – TechCrunch

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