Business Plan

GocaarGo.com – Transport Aggregator

Swapnil Dashora, Kamran Khan, Neeraj

Lodhi
GocaarGo.com
5/1/2015
Table of Contents
Executive Summary .............................................................................................................. 2
Service Description ............................................................................................................... 2
Web Portal ........................................................................................................................ 2
ERP System ...................................................................................................................... 2
Call Center ........................................................................................................................ 3
Mission ................................................................................................................................. 3
Financial Requirements ........................................................................................................ 3
Organizational Structure ....................................................................................................... 3
Technology ........................................................................................................................... 4
Market Analysis..................................................................................................................... 4
Market Growth ...................................................................................................................... 4
Go to Market Strategy ........................................................................................................... 5
Push Marketing Strategy ................................................................................................... 5
Pull Marketing Strategy ..................................................................................................... 5
Competitors .......................................................................................................................... 5
Milestones............................................................................................................................. 6
Risks and Challenges ........................................................................................................... 7
Management Team ............................................................................................................... 7
Financial Planning ................................................................................................................. 8

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Executive Summary
GocaarGo.com, as the name kept on a temporary basis suggests, is a project to aggregate
the very widely used transport service in this industrial era, trucks. Transportation sector
which has 6.4% of the GDP contribution in India is mostly dominated by road transport which
is 4.5% of India's GDP as per the report of Planning Commission of India. This huge
contribution to GDP makes road transport a USD 9 billion sector which gives our project a
glittering opportunity to organise the services which are predominantly unorganised.
The idea is to become a reliable service provider to assist customers in moving freight and
help transporters booking more orders using technology to ease and secure the entire
process. Gocaargo.com will provide a portal for customers to find a vehicle to move their
goods locally, i.e. within city, or intercity, i.e. from one city to another and would help
transporters to get more customer orders increasing their existing boundaries. The portal
would be a simple user friendly platform like any other ecommerce portal with minimum
navigation requirement and would provide the features like tracking goods/truck online using
GPS, generating online invoice to name a few. While for transporters the company would
provide an ERP solution built by a sister company to integrate them to the system where
they would be able to respond to a customer requirement.
The model would roll out in phases with the target to associate 25000 transporters from 25
cities and to facilitate 10% of the traffic in these 25 cities in the first year of operation. And in
next 3 years the target is to grab a market share of 5-7% all across the India.

Service Description
Gocaargo.com is a cloud cum web based service to optimize and to ease goods and
transport services. The service consists of three main components described below:

Web Portal
This would be the interface for the customers to use the services. The portal will provide
multiple options to the customers for placing his requirements. The customer would have to
describe his requirement in 4 mandatory parameters namely the pickup location, drop
location, date of pickup and the weight of load. There would be a 5th conditional field where
he can select the number of trucks required if he knows it otherwise he would have to tell the
number of packets and the size of each packet which would help the system to calculate the
number of trucks required.
This portal would be a light weight portal to help customer open it on even thin client
systems like mobile phone or tablets. With future expansion of the project there would be a
dedicated app to handle mobile and tablet enquiries. The portal would be optimized with text
and graphical representation of the information to provide ease of use keeping minimum
load time.

ERP System
This system, developed by sister company, is a third party system to be used to integrate
transporters with the system. This would have a comprehensive set of features for business
solutions required by transporters in their operations. The ERP system would be given to the
transporters for free for the first six months which would later be charged by the sister

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company itself as per their costs. An added feature of receiving notification about customer
requirement would be implemented to help transporters receive run time information on the
same. This system would be supported by SMS notification system as well. The notifications
would go only to the transporters who have operations in the required area.
The transporters would be required to share their quotation who want to respond to the
customer query. They can reply to the ERP notification or SMS notification with the quotes
they want to put for a particular customer requirement. The value of their quote plus 10%
GocaarGo.com margin would be displayed on the customer web portal which would list all
the quotes from which customer can select one.
ERP solution is used to lure the transporter to associate with GocaarGo.com hence it’s been
setup free for first six months.

Call Center
This is the most crucial piece of whole system for the initial stages. Call center works as a
center of stage in this project with it interacting with both, customers as well as transporters.
A customer can make a call to place an enquiry or track his enquiry. In cases where a
customer doesn't know how many trucks would be required to move his load he can talk to
call center and get his requirement registered.
After an enquiry is placed on the portal, the role of the call center is to get in touch with
transporters in the area and make sure to get the best deal available. The job of call center
would be more of sales cum customer service with them expected to convert the maximum
number of enquiries possible.

Mission
Mission is to become a platform for transporter user interaction to simplify the process of
booking a fleet for moving goods by virtualizing the process and eliminating unnecessary
delays and middle man cost.

Financial Requirements
The project is ideated by 3 individuals namely Swapnil Dashora, Kamran Khan and Neeraj
Lodhi. The company formed would be a Pvt Ltd with 1/3rd shares held by each.
The company seeks a fund of 2.5 crore as the first level of investment. This fund would be
used in setting up the operations and marketing the idea to customers and transporters to
reach the targeted associations in the period of 12 months.

Organizational Structure
● 3 Directors
● 5 resources for IT development and support
● 5 call center executives
● 10 sales executives
● 3 relation managers for key accounts

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Technology
IT development for web portal and ERP would be done by hiring the IT resources of sister
company on an hourly basis. The same resources would be providing tech support
afterwards.
ERP system is an existing product which would be customized for each transporter. Web
portal has to be built from scratch and hence primary focus of IT team would be to
implement web portal during the first three months and launch a beta version. Then phase
by phase other details would be added basis on customer feedback.

Market Analysis
The market targeted by GocarGo.com is the goods transport which is 90% of the total road
transport market as per the planning commission's report. The report calculates that the total
road transport sector, including passenger transport where ola cabs, uber, meru, taxiforsure
etc. operates in, is USD 9 billion of which goods transport has USD 8.1 billion share.
The market is very huge and is highly unorganized. Most of the business comes from
industrial goods movement but household goods movement also contributes a significant
business. Industrial goods movement can further be divided into long distance goods
movement, which gives the major revenue in the sector, and local goods movement.
GocaarGo.com will tap all these categories of goods movement in a phased manner starting
with long distance goods movement.
Currently the sector is highly unorganized. The transporters depend hugely on their frequent
customers and mainly on brokers who are playing as a platform between customers and
transporters currently. These brokers are individuals with a small number of contacts among
customers and transporters to whom they contact whenever a customer requirement comes
and charge their commission. The commission varies from 6-20% depending on the deal
and their monopoly in the region. While the customers are currently querying these brokers
and their fixed transporters for their requirements, who are also very small in number,
GocaarGo.com can provide a neutral platform for both the stakeholders while giving a huge
exposure of the other party to each of them. The platform would be useful for the customers
in finding a reliable and cost efficient service provider while transporters would be able to
look more number of queries. Using this platform transporters would be able to optimize their
movement by not travelling empty if there could be a deal available in the area for coming
back home. This would provide a win-win situation for both the stakeholders with
transporters earning extra income while coming back home and customers getting
discounted services from these transporters.

Market Growth
The sector has been growing at an average rate of 7% since last decade with the pace
speeding up while the economy is taking an upward swing. The market has been untapped
which gives huge potential to expand rapidly. With the increase in organized market the

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sector is supposed to expand faster giving an opportunity to grab a bigger share of market in
short time.

Go to Market Strategy
GocaarGo.com is planning to use both Pull Marketing Strategy as well as Push Marketing
Strategy.

Push Marketing Strategy

With the launch of services the company will employ Sales team to push the platform to all
the stakeholders. GocaarGo.com will hire two different teams for both the stakeholders,
Association Team to keep building association with more number of transporters and
Relationship Mangers to build relationships with key accounts like frequent goods movement
industries.
The company is looking to hire 10 sales executives in Association Team to help it expand
into 25 cities across 2 states in the period of 12 months.
The sole objective of these teams is to increase the usage of GocaarGo.com among both
the stakeholders.

Pull Marketing Strategy

The company will be using both ATL marketing as well as BTL marketing. The main source
of increasing brand visibility is by sticking company’s name on each of the associated lorry.
This technique will help us catch the most number of eyeballs of the target audience. With
the trucks having GocaarGo.com mentioned on them roaming in the vicinity of target, the
visibility of the brand would manifold in the focused region. The other methods to be used for
pulling the customers to the platform would be hoardings in the target location, mainly in
industrial area, ads in magazines targeted to market segment, seminars and workshops and
internet marketing.
Unlike push marketing strategy, as would be used by company, the impact of employing pull
strategy will not be measurable but this would help the company in getting more number of
customer queries directly on the web portal which will in turn help call center generate more
number of leads and deals.

Competitors
The main competitors in the segment are travelsuvidha.com, trucksumo.com, and
sastabhada.com. All three of them provide the long distance goods movement services but
there is a huge difference between the way they operate and the way GocaarGo.com plans
to operate. The biggest challenge these companies face is to increase the base of associate
transporters which would be the easiest way for GocaarGo.com. Having an existing
business solution developed by sister company which would be given freely for initial
months; the transporters have given tremendous response to the market survey done by the
company to associate them with us.
The competitors are also facing challenges in attracting customers for the reason being
unfocused targets and not so proper planning. The competitors have been stumbling in

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finding customers without proper sales team and have been more or less behaving like a
virtual broker only with very less number of associations in the target location and virtually
zero repeat business from frequent service users.
To address to this issue, GocaarGo.com will be rolling out in a phased manner to get
maximum number of associations from strategically chosen locations and employ
relationship managers to increase the stickiness of key accounts. This gives us a giant edge
over the competition and would help us in churning out maximum stakeholders on our
platform.

Milestones
 Q1 – Service setup has to be finished by the end of Q1. By the time quarter 1 ends:
o The office would be set up
o The call center would be in working condition
o The web portal would have launched beta version
o The call center employees would have been hired and trained to attend
customer queries
o The sales resources would have been hired and trained for their respective
roles
 Q2 – The target for Q2 is:
o Seven thousand transporters would be associated till the end of Q2
o One thousand query per month would be hitting the web portal
o All the employees for call center, sales team, relationship manager posts
would be hired by the end of Q2
o The services would be launched in 8 cities

 Q3 – The target for Q3 is:

o Ten thousand transporters would be associated till the end of Q3
o The sales team would be generating a revenue of Rs One Crore per month
o An average margin of 10% would be charged on all the bookings
o The services would be launched in 16 cities across two states of India
o One thousand bookings per month would be happening through
GocaarGo.com
o Mobile app and mobile website to be launched in beta version

 Q4 – The target of Q4 is:

o Fifteen thousand transporters would be associated till the end of Q4
o The services would be launched in all 25 planned cities
o Five thousand bookings per month would be happening through
GocaarGo.com
o The operational breakeven would be achieved in this quarter
o A foundation for second phase would be laid in this quarter for further
expansion geographically as well as operationally

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Risks and Challenges
A business has to have its own risks and challenges and GocaarGo.com would not be
spared either. The main risks and challenges that could be faced by the company are as
mentioned below:
 Risk of goods – The responsibility of goods travelling in any truck of the associate
would be solely borne by customer himself. A customer would have to take an inland
transport insurance of his goods before loading the same in any associate truck.
 Risk of illegitimate goods movement – The responsibility of verifying the legitimacy of
travelling goods would be solely borne by associate transporter. The transporter
would have to verify the goods travelling in his truck before loading up the same.
 Risk of unforeseen events – The responsibility of delay in travel or late arrival of the
goods due to unforeseen events like natural calamity or strike or riots would not be
shared by any stakeholder and the customer would have to prepare his further
schedules as per the intimation received from GocaarGo.com in case of any such
events.
 Challenges in retaining talent – As the market is not new and there are some
competitors who will try to lure talent, the challenge would be to retain them without
making any compromises. The company plans to do so by giving target based and
performance based incentives.
 Legal Challenges – As per the new government policy, all the transporters have to
install a GPS device in their vehicle. GocaarGo.com would tie up with a device
provider to purchase discounted devices which it would sell to its customer without
any margin to help them install these devices which would further help
GocaarGo.com in enabling the feature of GPS tracking which is planned in second
phase. The challenge could be that certain transporters would refuse to install these
devices. These transporters may have to be given these devices for free if they
appear profit generating.
 Challenge of timely arrival of truck – The biggest turn off for the customer currently is
the late arrival of the requested truck and this challenge is faced by all the
competitions as well. The company is addressing this issue by constant follow up by
call center team to ensure timely arrival of truck at asked location

Management Team
The management team has 3 individuals who are also the promoters.
 Kamran Khan – He is a mechanical engineer who is an entrepreneur and is running
his own company since last 7 years. His company provides coaching and training in
various verticals of engineering, mainly in IT and architecture & designing. He works
in Ujjain where he has got 2 offices with 2500 square feet of office space. With his
contacts in foreign cities like Dubai and Abu Dhabi GocaarGo.com dreams to rollout
the services on international platform after a successful run in India. His brother is
working in the transport industry itself who is a broker. He and his contacts has been
the main source of information about the current state of industry.
 Neeraj Lodhi – He is also an entrepreneur and has been running a company since
last 18 years which provide IT solutions to businesses. He has a team of 25 IT
engineers with different domain knowledge for variety of projects. His company has

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 researched and built the ERP solution that GocaarGo.com would be using to lure
transporters. His experience and expertise in developing IT solutions would give an
unmatchable advantage to GocaarGo.com which aims to be the well ahead of the
curve using its IT supremacy. Using the ERP system his team developed which gives
at least a year of the head start to GocaarGo.com, it plans to integrate whole
ecosystem with one platform in phased manner.
 Swapnil Dashora – He is an MBA from IIM Lucknow who is currently working with
HDFC Bank assisting Super HNI clients in their banking and investment needs. With
his Business Administration knowledge he would be handling Finances and
Investments in the company and monitoring the marketing plans for brand building.
With his contacts among investors and Super HNI people his job would be to plan for
attracting investments in company and providing strategic exits for the investors who
want to cut profits. Having knowledge and experience of Planning and Strategizing,
he adds one more feather to the trio for strategy building for GocaarGo.com

Financial Planning
The cost involved in operating GocaarGo.com for one year and the investment required for
the same are as below:
FUNDING Estimated
Investor
Funding
Promoter 1 50000 ← Amount to be contributed by an owner
Promoter 2 50000 ← Amount to be contributed by an owner
Promoter 3 50000 ← Amount to be contributed by an owner

Total Investment 150000

Loans
Bank Loan 0

Total Loans 0
Total Other Funding 0

Total
FUNDING 1,50,000

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 Resources Per Resource
COSTS Total Cost
Required Cost
Fixed Costs
Basic Website + App ← Design and creation of a basic webs
10,00,000 10,00,000
Business Entity ← Creation of a business entity such a
50,000 50,000
Legal/Professional
← Legal, accounting, etc.
Fees 15,000 15,000
Reserve for
← Desired amount of cash to be held i
Contingencies 5,00,000 5,00,000
GPS ← Purchase and installation of a GPS
500 4,000 20,00,000
ATL Brand
← Sticker on all the associated trucks
Development 10,000 300 30,00,000
Brand Advertising ← Initial advertising push. Includes hoa
5,000 1,500 75,00,000
Business
← Business cards, letterhead, flyers, b
Cards/Stationery 5,000 100 5,00,000
Office
← Cubicles, desks, chairs, counters, d
Furniture/Fixtures 15,00,000 15,00,000
Call Center
← Expensed of operation call center in
Operations 12,00,000 12,00,000
Call Center Salary ← salary
5 1,20,000 6,00,000
SMS Communication ← Bulk SMS purchase to communicate
50,00,000 5,00,000 5,00,000
Sales Team Salary ← salary
10 1,80,000 18,00,000
Relationship Manager
← salary
Salary 3 6,00,000 18,00,000
Directors Salary ← salary
3 6,00,000 18,00,000
Total Fixed Costs ← Investment Required
2,19,65,000