The Uber for de­liv­er­ies

A Gaut­eng trans­port company is dis­rupt­ing the de­liv­ery mar­ket by com­bin­ing old-fash­ioned ser­vice de­liv­ery with new-era on­line sales.

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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

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