In the era of technological advancements, every industry has to adapt itself to the changing scenarios of the technology to keep marching towards the future. While the growing customer dissatisfaction is showing the red signal to industry’s future, the industry itself is gearing up to take on the challenges and the opportunities offered by the latest technological advancements. Mainly, the techno-savvy optimists, in the industry, are predicting a bright future for the industry.
Backed by the college days research thesis, “Shared Economy on Transportation”, Pranay and Yash started Cubito, three years ago in Bangalore. Then started as shared cabs for the daily commute, today the company is known for providing intelligence platforms for complete logistics supply chain. Cubito reinvented the process of technology by empowering complete operational automation for its partners, people, and country. With a vision of Sustainable Global Logistics by its efficiency, Cubito is committed to help businesses building reliability, cost rationality, and visibility.
Pranay Agrawal, a Chemical Engineering graduate, and Yash Patodia, a Mechanical Engineering graduate are the alumni of Birla Institute of Technology and Science. Both of them possess the qualities like, thoughtfulness, diligence and intelligence, and are result-oriented and self-motivated individuals in the pursuit of achieving goals. This duo is best at organizing and communicating at all levels and determined to their work.
Growing with Team
In the changing technological scenario, we can’t stop and say that we have achieved what we have thought of. Pronouncing this idea, Pranay, Co-founder, Cubito, stated that “To be very honest we are not there yet”. According to him, they have a lot more to achieve in the coming future but are happy with the progress made in last three years. Learning from their experience in the past, he mentions that “Our overall operational experience has been the biggest teacher of all”. Thanking their mentors, Venkat Raju and IVK, he confers the achievements on their experimenting team that works hard in making the product reach at that agility and stability it displays today.
Funds and Revenues
As far as funding concerned, this logistics start-up raised a couple of rounds of Angel and Seed funding. The company is marching with the help of these funds and with the revenues earned. They also have their figures crossed for more attracting investments in near future.
Ups and Downs and Success Mantra
Business does not only mean the profits and success. It has many stories of failures and tragedies too. In the same course, Cubito had massive failures along with its surprisingly successful stories. With these ups and downs experiences, the company has set proper expectations with an idea to keep the momentum going in every situation.
For the survival of any organization, it is recommended to keep its cost always less than what it earns. Following the same, Cubito has kept it to the bare minimum that supports a decent environment with about 40 people, to keep them energized.
Talking about the failure situations, Pranay says, “Persist on what you believe in. 5-10 things not going your way does not mean you are wrong. Eventually pays off.”
Transition from B2C to B2B
In January 2015, focusing on the transportation logistics sector, Cubito had transited its operations towards B2B from a B2C business. The reason behind this shift was the several issues related to the supply of cabs that made them discuss the problems and start looking at SaaS in the B2B space. Adding to this Yash, a Co-founder at Cubito, said that, “Technology was always our forte and after being in the market for about a year, we realized the huge potential in B2B SaaS, and forged an action plan. It was a logical pivot. We had rejected acquisition offers and have invested heavily in technology and started serving blue chip enterprises”.
Strategy to Compete
There are a couple of players in the market with their impressive ways of business similar to that of Cubito. Everyone has been playing their respective part to keep themselves up in all the situations and will continue to do so. But what makes Cubito different from its competitors is the experience in running ground operations so far. This makes Cubito believe its coverage and ground tested technology running 10,000’s vehicles daily will help it lead the way ahead. Further to include, potentially covering all tier 1 cities in the country, now Cubito is moving to tier 2 cities where the problems statement is magnified. They are expecting to make progress on the growth and start realizing benefits on a national level.
Market Capacity and Challenges
Mentioning the estimated capacity of the market, Pranay added, “In our case, we are talking 14 percent of India’s GDP. Road transport which delivers shipments across the country consists about 60 percent of it. India can save over 40-50 percent of that by using technology and eliminating mistakes that cost a lot. Long term effects can affect overall logistics services prices in the country, topped with the massive growth that we are witnessing in the Indian Logistics Market.”
Cubito also faces many challenges in dealing with a market where Apps are still unknown apart from Whatsapp and Tier 2 cities where coordinated logistics is not heard of. The sheer scale of rejection, in the beginning, was the absolute surprise for this start-up. But with the passage of time, Cubito realized that one need to have a lot of patience while dealing with any such situation. That experience now over the years has made it able to handle such situations without any fear, and the result is in front of you.
The core reason behind Cubito’s success is their ability to execute technology on an industry which is immensely unorganized. Their understanding of the industry and operational experience is what makes them stand out and simplify operations to the extent they have achieved.