How to Win-Win in Local Logistics

Summary

3eco Systems, founded by Peter Voelkner in 2020, is revolutionizing local logistics in India by leveraging technology and electric vehicles. With a focus on hyperlocal transportation services, 3eco operates a fleet of over 1,000 electric three-wheelers in major Indian cities. The company aims to address India’s logistical challenges, such as heavy traffic and high costs, by offering high-efficiency services with dedicated drivers and cutting-edge technology. 3eco’s approach emphasizes people-first values, smart resource management, and sustainable solutions, making it one of the most efficient logistics providers in India’s fast-growing e-commerce market.

Takeaways

• 😀 3eco is a hyperlocal transportation provider in India, focusing on efficient local logistics to tackle growing demand for home deliveries, especially since COVID-19.
• 😀 India is experiencing rapid economic growth, but its logistics costs are among the highest in the world, contributing to over 14% of the nation's economy.
• 😀 Unlike large companies focused on long-distance logistics, 3eco specializes in local, intra-city logistics, relying on deep local knowledge and resources.
• 😀 3eco operates a fleet of cutting-edge electric three-wheelers, aiming to reduce costs through high vehicle utilization, efficient fleet management, and proprietary technology.
• 😀 The company has over 1,000 electric vehicles across five major cities and plans to expand to 10 more cities in the next two years.
• 😀 3eco emphasizes having full-time, dedicated drivers (Service Professionals or SPros) rather than gig workers, ensuring high-quality service and consistency.
• 😀 By using proprietary resource management software (EPRO) and real-time tracking systems, 3eco optimizes its operations and provides data-driven insights to improve efficiency.
• 😀 The company has strong internal leadership, with clear communication, transparency, and a focus on continuous improvement, which drives employee engagement and innovation.
• 😀 3eco's business model revolves around solving customers' logistical problems and offering better value at the same cost, ensuring customer satisfaction and loyalty.
• 😀 Future growth includes not only expanding logistics services but also exploring new revenue streams, such as advertising on electric vehicles and creating hyperlocal marketplaces for local businesses.

Q & A

What does 'The Last Mile' refer to in the context of e-commerce?

In e-commerce, 'The Last Mile' refers to the final stage of the supply chain, where products are delivered from distribution hubs to the customer's doorstep. This is seen as the most crucial step in ensuring customer satisfaction.

How does Peter Voelkner view the 'Last Mile' differently from large e-commerce companies?

Peter Voelkner views 'The Last Mile' as his 'First Mile.' For him, it begins with his street, neighborhood, and city, which are integral to his daily operations, as opposed to being the final step in a global supply chain.

What company did Peter Voelkner found, and what service does it provide?

Peter Voelkner founded 3eco Systems in 2020, a company providing hyperlocal transportation services in India, focusing on efficient local logistics and delivery.

How has the COVID-19 pandemic affected the demand for local deliveries in India?

The COVID-19 pandemic significantly increased the demand for local deliveries, as people were forced to stay at home and within their local communities. This shift made home deliveries, from food to electronics, essential.

What are some challenges India faces in terms of transportation and logistics?

India faces challenges such as overcrowding, pollution, inadequate infrastructure, heavy traffic, and delays. These issues contribute to higher transportation and logistics costs compared to other major economies.

How does 3eco address the issue of high logistics costs in India?

3eco addresses high logistics costs by using technology to enhance the efficiency of local deliveries, focusing on electric vehicles, dedicated infrastructure, and proprietary fleet management systems.

What kind of vehicles does 3eco operate, and why are they effective for local logistics?

3eco operates category L5, high-performance electric three-wheelers that can carry loads up to half a ton. These vehicles are well-suited for dense, geo-fenced local markets with complex delivery schedules.

Why does 3eco only employ full-time drivers rather than gig workers?

3eco employs full-time drivers to ensure consistency, quality service, and proper training. Full-time employees are more reliable and can be effectively managed, unlike gig workers who might frequently change.

How does 3eco use technology to optimize its operations?

3eco uses a comprehensive suite of technologies, including telemetry for tracking vehicles and batteries, live CCTV for monitoring depots, a mobile app ecosystem for real-time communication, and proprietary software like EPRO for resource optimization.

What unique approach has 3eco taken to customer service and business growth?

3eco has focused on solving specific problems for customers by providing high-value services at competitive costs. This win-win approach, combined with innovation and efficiency, has driven their growth and customer loyalty.

How does 3eco plan to diversify its revenue streams in the future?

3eco plans to expand beyond transportation by exploring advertising opportunities on the sides of its electric vehicles and setting up hyperlocal marketplaces for local businesses like Kiranas or cloud kitchens to connect and trade efficiently.