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On Demand Businesses 101

Jugnoo, India’s leading auto-rickshaw aggregator – Client Success Story

 

Jugnoo success story

There is no doubt that ride hailing apps are here to stay. Previously have these applications been more or less limited to cars, until Jugnoo came and introduced the concept into the auto-rickshaw market. Founded in 2014, Jugnoo has ventured into the industry as one of the leading auto-rickshaw aggregators with 30.000 people transacting per day.

From having a tough time convincing auto drivers to involve technology into their daily work,  Jugnoo have now more than 10,000 autos empanelled under the brand. Growing day by day. For indians have autos always been a commonly used and affordable method of transport. It has now become easier to catch a ride thanks to Jugnoo.

In a conversation with the founders we spoke about the Jugnoo’s challenges, expansion plans and the future of the on-demand economy.  

Q1) Starting an On-Demand auto service is definitely a great idea. Tell us something about Jugnoo and your personal motivation for starting this service?

Jugnoo is an auto-rickshaw aggregator, focused on doubling the driver’s efficiency and earnings, and providing affordable transportation to the masses on a tap.

There are around 5 million auto-rickshaws in our country, whereas the utilization is only 30%. Despite being one of the most popular and economical modes of public transportation in India, auto-rickshaws have remained highly underutilized due to inefficiencies prevalent in the conventional hailing procedure such as availability and fares. Jugnoo was started with a vision to overcome these roadblocks by bringing structure into this space, aggregating auto-rickshaws via technology, thereby, enabling optimum utilization of resources.

Q2) Could you shed some light on Jugnoo’s Business Model?

We focus on keeping our drivers and customers engaged. Through Jugnoo, drivers are able to pick up more rides and get work even in lean hours, which reduces their idle time significantly and eventually increases their earnings.

We take a 10% commission from the drivers and a small convenience charge from the customers.

Q3) What is the value proposition that you offer?

Jugnoo is a mobile app offering one of the largest networks of auto-rickshaws in India. Jugnoo provides the most affordable on-demand auto-rickshaw rides to the masses thereby increasing the efficiency of the most common means of public transport.

With Jugnoo, hailing an auto-rickshaw is simply a tap away!

Q4) How did you solve the initial egg and chicken problem to gain customers & drivers on your platform?

It has been a very interesting journey. Although, majority of the auto-rickshaw drivers already own and use a smartphone but initially, they showed reluctance towards adopting a technology based App as a means of earning their daily livelihood. Jugnoo’s founders themselves travelled in auto-rickshaws and spoke personally to drivers to convince them and make them understand the advantages of integrating technology in their routine activities.

For making customers familiar with our platform, we launched our App at PECFEST of PEC University of Technology, Chandigarh and gave free rides to people in Chandigarh. The response was phenomenal and gave us the initial kick to begin with.

Q5) How is Jugnoo different from other on-demand cab or auto platforms?

Jugnoo is the only start-up in India to focus exclusively on auto-rickshaw space.Hence, our market is different and much bigger than the other players in the industry.

Also, we are an aggregator in true sense. We believe in leveraging existing supply rather than creating a new one.

Q7) Are you satisfied with your technology platform as it exists today?

Technology is an ever evolving domain. At Jugnoo, we ensure our product  is constantly updated to keep up with the growing customer needs and rapidly changing market.

Q8) What is one particular Marketing Tool or process which you swear by, that has helped you gain more users on the platform?

We have been growing largely through word of mouth which is the most tangible way for us to know that our offering is sought after. We also engage in user referral campaigns and social media promotions for this purpose.

Q9) What is the hardest thing that you had to overcome during your journey of getting Jugnoo to where it is now?

The hardest thing we had to overcome was to make the drivers realize the difference that technology can bring into their lives. Theirs is a strata of society not so familiar with technology or technology based platforms. To them, using technology for something as basic as earning their living, didn’t come quite easy. It took a lot of convincing and training to make them understand the advantages and get on board.

Q10) As of now, Jugnoo is present in major cities of India. Are you planning to expand to more geographical locations? If yes, what would be your strategy?

We are already working towards providing access to the remotest corners of the country. We also plan to have an international presence over the coming months.

Q11) What do you feel is the future of the On-Demand economy and how can it help people and businesses alike?

India being home to the second largest internet using population in the world, we see really bright prospects for the future of on-demand economy here. The industry has paved way to new opportunities for entrepreneurs and startups to expand their horizons. With more people giving in to the comfort of having products and services delivered to them sitting at their homes, we can anticipate even more growth for this industry in the times to come.

Q12) How do you see Jugnoo evolving in coming years?

Jugnoo aims to be the largest auto-rickshaw aggregator in the country and intends to be the first mobile commerce company to do one million transactions a day along with having a strong international presence.

Q13) Any advice for startups trying to make it big in the On-Demand space?

It is a highly competitive space. You need to carve your own niche and then keep your focus undivided towards it. It might seem quite tempting to venture into multiple services in one go, but it ultimately makes you get lost in the crowd. There is no substitute for hard work and don’t be afraid of taking risks.

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