New Delhi: In India, trucks on the highway are often slow not just because of traffic congestion but due to severe driver fatigue. For decades, long distance truck drivers were forced to stay away from their homes for days, struggling with lack of proper sleep and exhausting driving conditions. Recognising this deep rooted issue, former McKinsey consultants Deepak Garg and Gazal Kalra turned a massive logistical challenge into a business opportunity and launched Rivigo in 2014.
The founders did not just change the vehicles; they completely overhauled the traditional trucking ecosystem. Rivigo introduced the highly innovative driver relay model. Under this system, the company set up designated pit stops every 250 kilometres. Much like a relay race, one driver would take the truck from point A to point B, hand over the steering wheel to a second driver who would continue to point C, while the first driver took a return trip home. The drivers changed, but the truck kept moving.
This massive operation was held together by a strong technological backbone. The entire network was seamlessly managed through GPS tracking, advanced sensors, route algorithms and a central control tower. The public and industry impact was immediate. Deliveries became significantly faster, trucks operated for more hours on the road, and most importantly, drivers finally had the chance to return home to their families regularly.
Investors quickly noticed this revolutionary approach. By 2019, Rivigo reached a massive valuation of around $1.05 billion and proudly joined the coveted unicorn club. However, scaling up brought steep financial challenges. With rapid growth came mounting costs for purchasing trucks, fuel, maintaining hubs, technology upgrades and manpower.
Despite generating a substantial revenue of around 600 crore in the financial year 2022, the company posted a severe loss of 160 crore. While the relay model was highly effective on an operational level, running it profitably on a large scale proved to be increasingly difficult. Eventually, the mounting operational costs forced a major business transition, and in 2022, Mahindra Logistics acquired the B2B express business of Rivigo for approximately 225 crore.