In hyperlocal logistics, unit economics is a challenge: GoJavas' Ghadge
Vijay Ghadge founded GoJavas, an e-commerce focussed logistics company, in 2013 with 20 people. Originally an in-house delivery venture of fashion e-tailer Jabong, it later spun out as a separate third-party logistics firm. Two years down the line, QuickDel Logistics Pvt Ltd, which operates GoJavas, has emerged as a strong player in the e-commerce logistics sector, delivering nearly 2.5 lakh shipments a day, with nearly 10,000 people on its rolls.
"When we started GoJavas we didn't know where to open our delivery branch. So initially we operated out of a van and would park near Gurgaon Toll. When we started getting more orders from Delhi, we parked our van near a CNG filling station in south west Delhi. It was only after a month and a half that we finally rented an office in Delhi," Ghadge says in this interview with Techcircle.in.
Today, GoJavas operates in 300 cities, covering nearly 3000 pincodes. It plans to reach 400-450 cities in the coming year.
In March, Jasper Infotech, which owns and operates online marketplace Snapdeal.com, picked up a minority stake in the firm for an undisclosed strategic investment. Last month, it invested $20 million in the third-party logistics services provider. That money, Ghadge says, has helped it firm up its technology back-end.
"From open box delivery to 90 minutes reverse pickup and many more, GoJavas has brought innovations in the market to handle orders more efficiently," says Ghadge.
GoJavas now plans to enter the crowded hyperlocal logistics space, though Ghadge admits unit economics is a challenge when doing hyperlocal deliveries.
"We have cracked the business model in e-commerce, as we turned EBITDA positive last year. However, on the hyperlocal space we have not been able to solve the equation. Once we will find a solution we will go and implement it," Ghadge explained.