If Ola and Uber were the pioneers in introducing taxi-booking via a mobile app, Tygr, an omni-transport app, has gone a step ahead and incorporated technology in all forms of transport, including taxi and bike transportaion. Tygr offers automation services to taxis used for individual needs as well as heavy vehicles used by enterprise clients or business entities. Aditya Poddar and Dipanjan Purkayastha founded Tygr app in April 2016 as a single platform for individuals and business clients in the transport industry. It looks after the varied needs of the customer—passenger intercity transportation, last-mile delivery, logistics operations and rental service for recreation or emergency. Tygr does not take over the operations from logistics companies who are running the business locally but offers its technological solutions to improve efficiency in the operations, says Purkayastha, explaining the main idea behind Tygr. In the second leg, Tygr connects operations to fleet owners in a locality where they are economically and socially strong. They handle the on-ground operations and become franchise partners for Tygr and align their local business with Tygr’s set-up. Meanwhile, Tygr maintains app development, marketing and branding for the company. “Logisitics has many different stakeholders and we want to make sure that all stakeholders win,” Purkayastha adds.
For revenue generation, the company works on a commission model. On the passenger segment, the company charges a fixed monthly subscription to the driver instead of a commission. The monthly subscription paid by the driver to the company is Rs 200-500. For logistics, delivery and transportation which includes its rental services, Tygr operates on a revenue share model with the logistics owner and the commission ranges from 2-20%.
Logistics contributes about 60% of Tygr’s total revenues, delivery contributes 20% and the remaining is generated from passengers and speciality services. Currently, Tygr’s taxi and delivery service is live in Mumbai, Indore, Pune, Ranchi, Kolkata, Raipur and Bengaluru. For the transportation business, the company is running a pilot with 700-800 trucks. Currently, 10,000 vehicles are using its app and it is targetting to have 30,000 vehicles onboard in the next 3-6 months.
Purkayastha explains Tygr’s rationale behind building a business model exclusively for India. “American marketplaces are more homogeneous. It is a strong economy and they have very strong rules but India is extremely fragmented. So, we have built a product that is flexible and can be modulated and configured differently for different locations,” he says.
For international expansion, Tygr is aggressively looking at Australia, Canada, London, Malaysia and Singapore. “We have associates in these countries who are interested in doing business with us,” Purkayastha adds. In December 2016, the company raised $3 million in pre-Series A funding from Franchise India. The fund will be deployed towards marketing, product development and expansion of distribution network to international markets, according to Purkayastha.