The technological revolution made life simpler. Like all other industries, logistics and transport goods and items can be delivered by booking from the app. Porter is a leading mobile app in India for packing and moving services.
Here in this article, we cover complete details on how Porter works what are all the revenue streams, and how the Porter app makes money. The company offers a wide range of services in its mobile app including truck booking, courier service, packers, and movers.
Porter Business Model
- What is Porter?
- A Brief History of Porter
- How Does Porter App Work?
- How Porter Makes Money
- The Future of Porter
- Porter Competitors
- Conclusion
What is Porter?
Porter app is an intra-city mini-truck aggregator and tech-enabled logistics company that provides affordable and reliable moving services. Operating in 20+ cities, Porter enables On-demand delivery services between inter-city with a large variety of vehicles.
From renting trucks and mini-trucks to booking bike delivery for couriers, the app provides an all-in-one service through its mobile application. The Porter app is available for both Android and iOS platforms in the respective Google Playstore and also in Apple Appstore.
Best-known booking as packers and movers through mobile apps in India, the other promising services made it a favorite for many in this segment.
A Brief History of Porter
Founded in 2014, Porter was founded by Pranav Goel, Vikas Chaudhary, and Uttam Digga in India. Started with the vision of providing the best logistics service for both Direct-to-customer (D2C) and also for business-to-business (B2B).
The on-demand marketplace app is now successfully running in India’s top 19+ cities. With over 8 Million customers in 10 years, Porter is working with over 1000+ full-time workers in different full-time roles in various cities of India.
The company has raised over $150 million as of 2023 from various top investors. Some of the prominent partners of Porter include Peak XV Partners, Kae Capital, and Tiger Global Management. In the financial year 2022–23 (FY23), Porter has made a revenue of over INR 1750 crores which is more than double its previous year’s performance of INR 847 crores.
Related: Zepto Business Model and How it works
How Does Porter App Work?
Porter app works by connecting users and delivery partners through a mobile app for goods and products moving services. The on-demand marketplace application enables vehicle owners of trucks, 3 Wheeler, and Bikes to onboard as delivery partners.
Users can able to register with the mobile app from their respective mobile devices to book the service. Both the user and delivery partner have separate apps for their operation, the company integrates both of them for seamless service.
For User
After installing the app on a mobile device, the user can register as a Porter member by registering with the mobile app. Once registered then different services offered by the company listed in the home screen.
User can choose their respective option from Trucks, Packers & Movers, Two Wheelers, and All India Parcel. By selecting any of the options, then the pick and delivery details will need to be entered.
Once the details of pickup and delivery are updated, then the price for the service will be updated. After confirming the booking, the system will assign a nearby vehicle for the job.
The delivery partner will arrive at the doorsteps to pick up the goods from the customer. The app provides live tracking of delivery till it reaches the drop location.
Driver Partner
With the Porter Delivery Partner program, the owners of trucks, 3-wheelers, mini-trucks,s, and two-wheeler vehicles can able to join. The app required all the necessary information about the partner with his vehicle details.
Once the information is updated, the system will confirm the delivery partner. They will be assigned with nearby jobs for pickup. The payment for the work will be added to the wallet and the driver partner can able to withdraw to a bank account.
The app provides its services in 18+ cities in India including Ahmedabad, Jaipur, Ludhiana, Chandigarh, Delhi NCR, Lucknow, Vadodara, Indore, Nagpur, Surat, Mumbai, Pune, Kolkata, Hyderabad, Bangalore, Chennai. Coimbatore, Kochi.
How Porter Makes Money
The revenue stream of the Porter app is based on commission share. After successful delivery, the company charges up to 30% of the driver partner’s wallet.
With operating over 18+ top cities in India, Porter is a leading on-demand delivery marketplace platform that connects users and driver partners. The fare price is calculated based on the total distance traveled between the pickup and drop location.
The factor of cost includes the type of vehicle, type of goods, the total weight and length, and loading and unloading operations. After calculating all the charges, Porter makes revenue from the commission for each delivery.
Apart from commission, the app also provides a rental option for the vehicle. The courier pickup service also integrated with Porter which operated by connecting with other channel partners.
The Future of Porter
With the quick expansion of its services in other cities, the future of the Porter app is to operate across India. The company is planning to raise new seed funding from top investors.
According to a recent interview by Co-founder and COO Digga, the Logistics services startup is anticipated to grow by 60 percent to reach about Rs 3,000 crore in revenue and be profitable by 2024.
With the demand for courier service for small-scale businesses across India, Porter planning to expand its operation for quick courier pickup at doorsteps. The sector looks promising and expects to make a profit from it by 2028.
Porter Competitors
The on-demand logistics booking app is expanding and lots of competitors successfully operating in India similar to Porter. Here are some of the popular apps like Porter in India as follows:
- Goody
- Vahak
- Mover
- Packers & Movers by NoBroker
- Shiprocket
Conclusion
In conclusion, Porter app innovative idea is a game changer in Indian logistics inter-city to inter-city operation. With different types of fleet options and engaging app features provides the best solution for its users. Porter makes a profit based on each delivery by commission. The company expanding across Indian cities and planning to incorporate more on-demand services.
Source — smarther.co