Illustrating the growing traction of the online cargo transportation market, Moscow-based logistics services provider KPD-Cargo has acquired a majority stake in online trucking service GroozGo for $2.1 million.
Reported earlier this month, the deal move came just two months after a competing Russian project was announced, and almost simultaneously with another funding round for Deliver, which attracted $3 million.
The capital injection will be used to fuel GroozGo’s expansion in Russia and neighboring countries, as well as to support its in-house R&D.
What distinguishes GroozGo from similar services is that it selects and verifies all its carriers before adding them to the system. Only cargo and car owners can use the service, which allows avoiding mediators and shady schemes, claims the startup. All the cargo is insured by the company.
Today the service serves as a ‘Uber for trucking,’ performing non-scheduled orders from small companies. However, the company plans to switch to regularly scheduled orders, which will expectedly allow a significant increase in the volume of transported cargo. The company is also planning to create a mobile app for drivers.
Launched in early 2016, the service claims to have performed over a thousand orders and attracted 3,200 truckers so far, says its website. GroozGo charges a 7% fee per order.
The startup expects to account for 1.5% of the Russian transportation logistics market by 2020, reports local online publication CNews.ru based on its exchanges with GroozGo’s CEO and founder Oksana Pogodaeva.
Sources: GroozGo, CNews.ru, Kommersant.
