Goods hailing APP set to disrupt the goods transportation market – Business Report
Tech start-up, Palanto is an on-demand platform deemed to be the Uber for bakkies. Palanto connects bakkie owners to users requiring transport to move goods. Users offer their desired fare to drivers who bid for the fare either by declining or accepting it.
Bakkies drivers are often next to retail centres punting business from customers buying appliances and hardware. Drivers approach customers as they exit stores offering them their services. This can be frustrating for customers, but a means of survival for drivers.
Users interviewed by Palanto team at proof of concept stage said they used classified adverts to find transport services. Often vehicles listed would be out of their area when requested. It often took several calls before finding a driver. During house removals, going to retail parks with MAKRO, Game or Build-It stores was a better option, although at a cost.
Interviewed drivers said their customers came via referrals, classified ads, roadside posters or from retail parks. 100% of those interviewed were upbeat about a goods hailing service which will end their days of waiting for business at retail parks.
Mcebowezwe Vilakati, founder & CEO says Palanto has a triple bottom line financial model - “a best practice I learnt while doing my MBA at Leeds University Business School. Business should be about the three P’s; (People, Planet and Profits).
Palanto has a societal impact ; creating jobs and providing access to market for drivers, convenience to users through a ubiquitous APP downloaded on smart devices, environment protection by reducing the advertising footprint on roadsides and creating shareholder value through profits.”
The total addressable market size of the sector is worth R9bn per annum according to Stats SA (2019). However Vilakati purports that the market could be a lot bigger because of C2C transactions taking place off the radar.
Research reveals about 1.1 million informal traders across the three metros of Gauteng (WIEGO, 2018). Informal traders move textiles, fresh produce and other consumables daily. The Johannesburg Fresh Produce market opens doors to 10,000 hawkers daily. “The market opens at 5:00 am meaning that as early as 4:00 am 10,000 hawkers require transportation, therefore a goods hailing service wouldn’t have come at a better time. Adding to this is home removals, retail furniture and hardware purchases.
Asked about the technology platform and how Palanto will beat competition, Vilakati added that their technology partners are world class India based software group that has done work for numerous Silicon Valley ride hailing companies, Scuderia Ferrari, Saint Gobain, Nike & other successful startups like Glovo, Foodini, and Bevy.
As a result their pre-seed funding stage has been gaining momentum through various crowd funding platforms.
Although claiming to be the Uber for bakkies none of two current direct competitors provide a fully functional on demand app with driver ETA’s, “in-APP” trip cancellation and a functionality to offer a desired fare to drivers, added Vilakati. Whilst the other competitor offers a web based platform, the one with an App based platform also takes bookings and no drivers are dispatched with less than an hours notice.
The Palanto APP gives users an option to insure their goods and also an option to choose the number of loading assistants.
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