{"id":362,"date":"2024-07-07T13:31:59","date_gmt":"2024-07-07T08:01:59","guid":{"rendered":"https:\/\/www.sachinthakur.in\/blog\/?p=362"},"modified":"2024-07-07T15:48:39","modified_gmt":"2024-07-07T10:18:39","slug":"how-porter-became-an-8000-crore-rs-logistics-company-startup-case-study","status":"publish","type":"post","link":"https:\/\/www.sachinthakur.in\/blog\/how-porter-became-an-8000-crore-rs-logistics-company-startup-case-study\/","title":{"rendered":"How Porter Became an 8000 Crore Rs Logistics Company? (Porter Case Study)"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_68_1 counter-hierarchy ez-toc-counter ez-toc-white ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.sachinthakur.in\/blog\/how-porter-became-an-8000-crore-rs-logistics-company-startup-case-study\/#Introduction\" title=\"Introduction\">Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.sachinthakur.in\/blog\/how-porter-became-an-8000-crore-rs-logistics-company-startup-case-study\/#Government_Initiatives\" title=\"Government Initiatives\">Government Initiatives<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.sachinthakur.in\/blog\/how-porter-became-an-8000-crore-rs-logistics-company-startup-case-study\/#Private_Sector_and_Startups\" title=\"Private Sector and Startups\">Private Sector and Startups<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.sachinthakur.in\/blog\/how-porter-became-an-8000-crore-rs-logistics-company-startup-case-study\/#Understanding_the_Problem_Intracity_Logistics\" title=\"Understanding the Problem: Intracity Logistics\">Understanding the Problem: Intracity Logistics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.sachinthakur.in\/blog\/how-porter-became-an-8000-crore-rs-logistics-company-startup-case-study\/#The_Founders_and_the_Birth_of_Porter\" title=\"The Founders and the Birth of Porter\">The Founders and the Birth of Porter<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.sachinthakur.in\/blog\/how-porter-became-an-8000-crore-rs-logistics-company-startup-case-study\/#Early_Challenges_and_Solutions\" title=\"Early Challenges and Solutions\">Early Challenges and Solutions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.sachinthakur.in\/blog\/how-porter-became-an-8000-crore-rs-logistics-company-startup-case-study\/#Building_the_Technology\" title=\"Building the Technology\">Building the Technology<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.sachinthakur.in\/blog\/how-porter-became-an-8000-crore-rs-logistics-company-startup-case-study\/#Initial_Growth_and_Setbacks\" title=\"Initial Growth and Setbacks\">Initial Growth and Setbacks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.sachinthakur.in\/blog\/how-porter-became-an-8000-crore-rs-logistics-company-startup-case-study\/#Improving_Customer_Experience\" title=\"Improving Customer Experience\">Improving Customer Experience<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.sachinthakur.in\/blog\/how-porter-became-an-8000-crore-rs-logistics-company-startup-case-study\/#Expansion_and_New_Services\" title=\"Expansion and New Services\">Expansion and New Services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.sachinthakur.in\/blog\/how-porter-became-an-8000-crore-rs-logistics-company-startup-case-study\/#Future_Opportunities\" title=\"Future Opportunities\">Future Opportunities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.sachinthakur.in\/blog\/how-porter-became-an-8000-crore-rs-logistics-company-startup-case-study\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.sachinthakur.in\/blog\/how-porter-became-an-8000-crore-rs-logistics-company-startup-case-study\/#The_Unheard_story_of_Building_Porter_with_Founder_Pranav_Goel\" title=\"The Unheard story of Building Porter with Founder Pranav Goel\">The Unheard story of Building Porter with Founder Pranav Goel<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.sachinthakur.in\/blog\/how-porter-became-an-8000-crore-rs-logistics-company-startup-case-study\/#Your_Thoughts\" title=\"Your Thoughts\">Your Thoughts<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Introduction\"><\/span>Introduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In FY-2023, India spent more than 14% of its GDP on logistics costs. For context, this number was 10% in the case of China and 7-8% in the case of developed countries like the US and Japan. This shows how inefficient and expensive the Indian supply chain is when compared to more productive nations. Even countries like Vietnam and Thailand rank better than India when it comes to the Logistics Index, and this sometimes makes these countries an attractive option for companies to do business in, compared to India.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Government_Initiatives\"><\/span>Government Initiatives<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Now, it&#8217;s not that the government is not doing anything about it. The current government had launched a national logistics policy in 2022. One of the aims of this policy was to reduce India\u2019s logistics cost from 14% to 8%, something that will help India compete with developed nations.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Private_Sector_and_Startups\"><\/span>Private Sector and Startups<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The government can only make policies; it&#8217;s up to the private sector and startups to make use of them and build businesses. In this video, I want to talk about one of the fastest-growing logistics companies in India. A company whose founders were inspired by Uber and how it organized a heavily unorganized sector of taxis. Porter is trying to do the same with the last-mile logistics in India. It is going after a 200 Billion dollar market, and in this video, we will talk about its origins, struggles, and big future ambitions.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Understanding_the_Problem_Intracity_Logistics\"><\/span>Understanding the Problem: Intracity Logistics<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To understand Porter, we first have to understand the problem it is solving: Intracity Logistics. It is basically the transportation of resources inside a city. So if you, as a business owner or a regular customer, need to send a package to someone inside the same city, it is called Intracity Logistics. Logistics determines how efficient an economy is. The cheaper and faster it is to move goods inside a country, the more productive it is going to be.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"The_Founders_and_the_Birth_of_Porter\"><\/span>The Founders and the Birth of Porter<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/economictimes.indiatimes.com\/markets\/stocks\/news\/indias-logistics-sector-big-opportunity-for-investors\/articleshow\/95526299.cms\" rel=\"nofollow\">In 2024, 90% of India\u2019s logistics sector is still unorganized<\/a>, and this situation was even worse 10 years ago before two college friends from IIT Kharagpur decided to start Porter. The problem they were trying to solve was simple yet significant: making intracity logistics efficient and cost-effective. Inspired by Uber, Uttam Digga, and Pranav Goel aimed to bring a similar transformation in the logistics sector.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Early_Challenges_and_Solutions\"><\/span>Early Challenges and Solutions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In the beginning, it was just Uttam and Pranav, who divided the roles between themselves. Uttam would go on the field to onboard truck drivers, and Pranav would get on the call with small business owners and anyone else who needed trucks to move their goods. They started with a phone and Google Sheets, but soon realized they needed a tech solution.<\/p>\n\n\n\n<div class=\"is-layout-flex wp-container-3 wp-block-columns\">\n<div class=\"is-layout-flow wp-block-column\">\n<figure class=\"wp-block-image size-full is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.sachinthakur.in\/blog\/wp-content\/uploads\/2024\/07\/image-2.png\" alt=\"\" class=\"wp-image-367\" width=\"337\" height=\"337\" srcset=\"https:\/\/www.sachinthakur.in\/blog\/wp-content\/uploads\/2024\/07\/image-2.png 400w, https:\/\/www.sachinthakur.in\/blog\/wp-content\/uploads\/2024\/07\/image-2-300x300.png 300w, https:\/\/www.sachinthakur.in\/blog\/wp-content\/uploads\/2024\/07\/image-2-150x150.png 150w\" sizes=\"(max-width: 337px) 100vw, 337px\" \/><figcaption class=\"wp-element-caption\">He is the Co-Founder at Porter. Before this worked as Analyst at JP Morgan and HSBC. He studied at IIT, Kharagpur.<br><br>Read more at:\u00a0<a href=\"https:\/\/yourstory.com\/people\/uttam-digga\">https:\/\/yourstory.com\/people\/uttam-digga<\/a><\/figcaption><\/figure>\n<\/div>\n\n\n\n<div class=\"is-layout-flow wp-block-column\">\n<figure class=\"wp-block-image size-full is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.sachinthakur.in\/blog\/wp-content\/uploads\/2024\/07\/image-3.png\" alt=\"\" class=\"wp-image-368\" width=\"343\" height=\"343\" srcset=\"https:\/\/www.sachinthakur.in\/blog\/wp-content\/uploads\/2024\/07\/image-3.png 170w, https:\/\/www.sachinthakur.in\/blog\/wp-content\/uploads\/2024\/07\/image-3-150x150.png 150w\" sizes=\"(max-width: 343px) 100vw, 343px\" \/><figcaption class=\"wp-element-caption\">Pranav Goel is the Co Founder and Executive Vice Chairman of Porter. He previously worked at J.P. Morgan as an Analyst. Pranav Goel attended Indian Institute of Technology, Kharagpur.<\/figcaption><\/figure>\n<\/div>\n<\/div>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Building_the_Technology\"><\/span>Building the Technology<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The duo brought in Vikas Choudhary as their third co-founder, who built their technology platform. Their initial pitch was simple: \u201cBook from us, we are 20% cheaper\u201d. This pitch worked, and in less than a year, Porter had more than 500 business customers, processed more than 3,000 bookings a month, and had a monthly revenue run rate of 30 lakh rupees.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" loading=\"lazy\" width=\"932\" height=\"720\" src=\"https:\/\/www.sachinthakur.in\/blog\/wp-content\/uploads\/2024\/07\/image-4.png\" alt=\"\" class=\"wp-image-369\" srcset=\"https:\/\/www.sachinthakur.in\/blog\/wp-content\/uploads\/2024\/07\/image-4.png 932w, https:\/\/www.sachinthakur.in\/blog\/wp-content\/uploads\/2024\/07\/image-4-300x232.png 300w, https:\/\/www.sachinthakur.in\/blog\/wp-content\/uploads\/2024\/07\/image-4-768x593.png 768w\" sizes=\"(max-width: 932px) 100vw, 932px\" \/><figcaption class=\"wp-element-caption\"><a href=\"https:\/\/www.linkedin.com\/pulse\/our-journey-porter-pranav-goel\/\">Read Story<\/a> <\/figcaption><\/figure>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Initial_Growth_and_Setbacks\"><\/span>Initial Growth and Setbacks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>By 2015, Porter\u2019s app was ready, and they felt unstoppable. However, they suffered from having &#8216;too much money&#8217; in the bank and expanded too quickly into intercity logistics, which led to financial strain and layoffs. They learned the importance of focusing on their core competency before expanding.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Improving_Customer_Experience\"><\/span>Improving Customer Experience<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Porter focused on ensuring timely deliveries and efficient operations. They introduced GPS tracking, constant driver check-ins, and per-minute charges for loading and unloading to incentivize efficiency. These improvements led to significant growth in their customer base.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Expansion_and_New_Services\"><\/span>Expansion and New Services<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Porter expanded its services to include two-wheeler parcel delivery in 2020, quickly becoming a leader in this segment as well. They raised significant funds and relaunched their intercity delivery service, expanding their presence to over 20 cities.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Future_Opportunities\"><\/span>Future Opportunities<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Porter has a massive opportunity ahead. The intracity logistics industry alone is a 40 billion dollar market in India, and their current revenue is just a drop in that ocean. They are also exploring intercity logistics and adding electric vehicles to their fleet, making their operations more cost-effective and environmentally friendly.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The journey for Porter has just started. As the GDP of India grows, logistics companies like Porter will be direct beneficiaries. With continued focus on efficiency and customer service, Porter has the potential to become a logistical giant on par with global leaders like FedEx and UPS.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"The_Unheard_story_of_Building_Porter_with_Founder_Pranav_Goel\"><\/span>The Unheard story of Building Porter with Founder Pranav Goel<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"The Unheard story of Building Porter with Founder Pranav Goel: The Inspiring Talk 138\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/KnMG-_p25ZI?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Your_Thoughts\"><\/span>Your Thoughts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Let me know in the comments what Porter needs to do to get there. And also, what has been your experience using its services? Good or bad, write it down, and I will see you in the next one.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction In FY-2023, India spent more than 14% of its GDP on logistics costs. For context, this number was 10% in the case of China and 7-8% in the case&hellip;<\/p>\n","protected":false},"author":1,"featured_media":365,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[11],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.13 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Porter Became an 8000 Crore Rs Logistics Company? 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