Just Deliveries addresses the dearth of last mile delivery services for perishables and fragile items that require regulated temperature and careful handling.
At a glance:
Startup: Just Deliveries
Founder: Mansi Mahansaria
Year it was founded: 2015
Where is it based: Mumbai
Problem it solves: Safe and timely delivery of perishable and fragile goods
Funding raised: Bootstrapped
Were you ever stuck in a situation where the pastries you ordered were no longer fresh by the time you reached a party where everyone was waiting for you to bring in the desserts?
Did you then wish you had a specialised delivery service that ensured timely delivery of perishables?
Mumbai-based Just Deliveries does just that - ensuring safe delivery of perishables, and gifts that need careful handling, in perfect condition.
How it began
Talking about the beginning, Founder of Just Deliveries, Mansi Mahansaria, says,
“I was supposed to pick up a cake in the evening for my sister’s birthday celebration. I was caught in crazy traffic, and the Mumbai heat made my cake practically melt. I spent two hours hoping that the cake stayed fine. I started to wonder why there was no courier service for perishable items and delicate stuff.”
This idea inspired Mansi, leading to the birth of Just Deliveries in January 2015. However, it did not receive much traction initially due to the cost economics. The costs were restrictive at the time, as an air-conditioned van with a driver and delivery boy was needed to transport even a single cake.
Mansi says, “The turning point for Just Deliveries came when we got our first client for whom we handled the backend logistics for a restaurant chain. We were in charge of stocking their outlets every morning from the central kitchen.”
How Just Deliveries works
Just Deliveries concentrates mostly on the delivery of perishable goods and items, without which customers would be forced to take care of the logistics themselves by arranging for cars and drivers who struggle with location, parking, and careful handling of items.
Mansi explains, “In the B2B segment, there are many small and medium food and beverage companies, which need help with daily logistics for food items. Till we came into the picture, these restaurateurs had to either manage with their own fleet of vans, or depend on unorganised players that are expensive and inefficient. With Just Deliveries, the cumbersome issue of logistics is outsourced and business owners can focus on their core business.”
Just Deliveries offers one-off delivery service for distribution of gifts, and also helps hotels with large outdoor catering. It does not follow a fixed algorithm, but the process mainly involves GPS tracking, and remote temperature monitoring. For bulk deliveries, each delivery is mapped out area-wise.
Gradually, Mansi wants to build an Uber-like model to effectively cater to one-off delivery requests.
Managing cost-effective operations
Currently, the core team comprises Mansi, Rujuta Kulkarni, Aakash Kambli, and Samata Jagtap. An MBA graduate, Mansi has worked for several corporates including the Tata Group and IDFC PE, before starting her own venture. As the founder of Just Deliveries, she looks at constantly setting up systems and processes to make operations smooth and cost effective. Arranging for funding for expansion and getting on board new B2B clients are her key responsibilities.
Just Deliveries’ marketing manager, Rujuta, is a graduate in pharmacy, and has earlier worked in research and marketing. Aakash is the operations manager, whose key responsibilities include scheduling deliveries, analysing data in order to reduce the cost per delivery, and identifying areas of improvement to enhance efficiency. Account manager, Samata, holds a Bachelors degree in Accounting and Finance, and is primarily responsible for ensuring timely payments.
The company started small and has witnessed steady growth. Mansi says, “We started with 8-10 clients, mostly home bakers and florists. Today, we have over 50 regular clients including 5-star hotels, wedding planners, and gifting experts who get their fragile gifts delivered across Mumbai. In the B2B space we have 8-10 anchor clients from small to large restaurant chains, frozen food companies, and pizza chains.”
Just Deliveries generates 55-60 percent of its revenue from fixed annual contracts with restaurant chains for managing its deliveries on a daily basis from the central kitchen to outlets. A bulk of its revenue comes from gift distribution services, which are one-off in nature. A part of its revenue also comes from one-off requests by hotels for large outdoor catering, or from gifting specialists who book its vans for a few hours to deliver perishable consignments to clients within the city.
From a revenue of Rs 1 lakh to Rs 1.5 lakh per month in 2015, Just Deliveries now generates a revenue of Rs 8 lakh to Rs 9 lakh per month with a healthy profit margin.
Competition and the differentiator
Mansi says, “According to industry experts, India’s temperature-controlled logistics industry is estimated at Rs 12,000 crore-Rs 15,000 crore and is poised to grow at a minimum 20 percent annually. One of the primary drivers is the increase in the consumption of perishable goods that are sensitive to temperature.”
However, concierge-based services like Dunzo and Quikr’s new services are also popular. They are making technological advancements with chatbot platforms to assist their clients.
Bengaluru-based Dunzo recently announced the launch of a subscription service ‘DunzoX’. With an upfront payment of Rs 299, it gives users priority allocation and support with free delivery for the first three kilometres for 30 tasks in a month. Says Mansi:
“Mid-sized restaurant chains are not serviced by the biggies like Cold Ex and Snowmans and this is where Just Deliveries is finding a lot of traction. Similarly, courier services like Blue Dart and Vichare do not deliver gifts as open packages; neither do any of the bikers services – this is a niche area where Just Deliveries is a much trusted service. Food Delivery is the backbone for food and beverage companies and ensuring uninterrupted and hygienic conditions is our focus and USP.”
What the future holds
The company is bootstrapped and was founded with Mansi’s savings, an initial seed fund of Rs 20 lakh.
On future plans, Mansi says, “We intend to continue expanding within Mumbai and build our fleet network. When we double our capacity, we will roll out an Uber-like model where all food and perishable items can be delivered across the city, according to the customers’ convenience.”