The Uber for deliveries
A Gauteng transport company is disrupting the delivery market by combining old-fashioned service delivery with new-era online sales.
to accommodate these clients.
“Most of our client base grew from my and other vehicle owners’ existing client networks. Educating and motivating conventional customers to use the app proved much more challenging than I thought it would be. As a matter of fact, if I knew then what I know now, I would have put more money into market research and the marketing of the product than what I have spent on technological development,” Mufamadi admits.
At the moment, there is not much competition in the market, says Mufamadi. “Droppa’s main advantage is that we have low overheads, which allow us to charge 15% to 20% cheaper than our competitors. We are also able to cut down the hustle by getting quotes and a vetted driver in a very short time.”
App users get an instant online estimate of the cost of the delivery. Clients are charged a base rate to make short distance deliveries worthwhile for vehicle owners, in addition to a set rate per kilometre which depends on the vehicle size and distance travelled. Fifteen percent of the payment goes to Droppa, while the rest is paid weekly to vehicle owners.
Plans for the future
The most difficult part of getting the business off the ground so far, is to get start-up and operational funding. “Getting a big idea like this off the ground is expensive. I am trying to raise another R5m to help me roll the business out to the rest of the country.”
He is currently testing the Cape Town market, which he wants to break into before the end of the year: “Cape Town is the biggest adaptor to technology in the country, so I think the city and its suburbs would be more open to our service. Later next year, I want to move into other cities with large populations, such as Durban and Port Elizabeth,” he says.
The company will be rolling out another online platform, Droppa for Retailers, in September 2018 to allow furniture shop owners, warehouses, hardware and small businesses to also make use of Droppa bakkies and trucks for deliveries. ■
Khathutshelo Mufamadi Founder of Droppa