India has taken to taxi-hailing services like a fish to water. The metro cities or the tier one cities live on these ride-hailing services as the numbers revealed by the companies are astonishing, to say the least. The taxi service in India, however, has become stagnant with major companies trying out different businesses. Uber entering into food-tech while Ola buying Foodpanda, it is quite sure that the growth has hit the roof once and for all.
However, it is not that these companies did not try something new in the ride-hailing business. There was a surge a year or two ago when the bike taxies took to the streets. The idea was brilliant, one could reach their destinations in half the time and in India, some cities run on two-wheelers. That said, there was something wrong with it, the idea was put into work but just couldn’t take off. Every ride turned out to be a loss and major companies like Uber and Ola cut down on their bikes.
There was another startup in the name of Baxi. Baxi is a Gurugram-based startup which entered this bike-hailing business but was shut down in the mid-2017 as it could not sustain the competition from Uber and Ola but also because there were not enough people using it. This bike-hailing business is not something which can run on its own. It needs side-wheels to balance and Baxi have finally found a solution.
The Indian startup has thought of an idea which is not out of the world but goes hand in hand with their previous model. This alternative is something which has earned them accolades in the recent months. The alternative is to act as a roadside pickup service along with the bike-hailing service. The hyper-local delivery model will shake hands with Fast Moving Consumer Goods (FMCG) brands. This will help them with quick deliveries.
The company is poised to launch in the month of January. The BC Technologies owned company will face some steep competition from Shadowfax which recently raised $10 million in funding from various investors. However, Baxi has the upper hand as it has tied up with some major Indian brands such as Patanjali Industries and Mother Dairy.
Patanjali Industries is a story in itself, India loves anything ‘ayurvedic’ which is what Patanjali did and their products are shipped and sold across all of India. Baxi will benefit to a great extent from this as the demand for Patanjali products is ever growing and it is not going to stop anytime soon. Their idea to tie up with retail chains who cannot exist on applications and take their products directly to the consumer is a good and sustainable thought. Only time will tell how Baxi works its way through this time around.
– Unmesh Phule