Daily Commute a Big Challenge
Daily commute is a big challenge especially in metro cities across India, where employees spend hours on the road which are highly unproductive if they are ‘self-driving’. This problem was solved when companies started providing daily cab services to their employees – a common culture for most of the IT/ITES companies in the urban India.
However, the traditional vendor driven employee commute model has been fraught with inefficiencies and immense paper-work; which has resulted in tech-driven start-ups which are solving for in efficiencies in the employee transportation by managing it through technology.
Tech Solving for Daily Commute
These new breed of start-ups include names such as Aaveg, Move-in-Sync, Routematic, Hopon and Commutec which are making the employee transportation effective through use of technology in turn providing a host of benefits to the employers/vendors which include cost savings, increase employee productivity and satisfaction, complete regulatory compliance.
|Start-up||Headquarters||Enabling Technology||Enabling efficient employee transportation|
|Routematic||Bengaluru||AI||Enables rostering through an AI-based routing, automated vehicle dispatch, live tracking, and paperless automated billing|
|Move-in -Sync||Bengaluru||SaaS||SaaS product automates the complete transport management process thereby cutting down the carbon footprint and eliminating manual intervention; providing its customers complete control and visibility over their transport operations in real-time.|
|Aaveg||Gurgaon||SaaS||Using SaaS based platform to manage end-to-end operations, it has successfully transitioned many large corporates from manual to 100% compliant, efficacious and paperless operations.|
An Optimistic Market
Market estimates the value of urban commute market between $8 billion and $12 billion (2019), with enterprise spending expected to account for almost 90% of this segment.
What’s interesting start-ups in this segment are expected hit the profitability faster (some of them are already profitable) as they deal directly with the enterprises (B2B focus) in addition to being asset light; compared to cab aggregators who are focused on the B2C segment and are highly dependent on deep discounting strategies.
Commutec founded in 2015 is one key example of a bootstrapped has never made losses as per Randeep, the CEO of the company.