Rivigo Submitted by:

Ayush Solanki 2111229

Samarth Vanvi 2111293
Project Presentation
Shivam Kumar 2111285

Enlightened Leadership for Responsible Businesses Supriya Murdia 2111490

Chaitanya Shinde 2111056

03-03-2023
About Industry
Value Chain of Logistics Industry

15 lakh crore
Logistics market size

14%
Logistics spend as % of GDP
inefficiencies in the industry…
Huge scope of
improvement in
• India ranks poorly at 44th
transportation
position in Logistics
Performance index
published by World Bank

Reasons for inefficiencies in

transportation
• Ineffective truck
utilization
• Ineffective route
planning
• Low distance
travelled/day
• Poor Mental/Physical
High logistics cost health of drivers
Introduction to Rivigo and its Business Model

• Founded by Deepak Garg and Gazal Kalra in 2014

• Global first concept: Driver Relay Trucking Moel
• Network of 70 pitstops across the country and
fleet of 5000+ trucks and 2 lakh+ clients
• Delivers to 4000 cities covering 29,000 pincodes
• Patented AI system that optimises truck routes
based on standard factors and equal distribution
of transit hours, rest hours, driving hours, fuel
usage, driving behaviour, etc
• FY20 Revenue: INR 1,080 crore
• Clients saved 12-20% of overall logistics costs
• Aim: Carbon neutrality by 2040
• Launched National Freight Index to bring
transparency in freight rates across the country
• Certified Great Place to Work
Ethics policy of Rivigo
Conflict of interests :-
• Decision Bias.
• Employee cannot engage in
other activities.
• Can be part of political
process but cannot be
conflicted with work.
• Employees are responsible
for their conduct outside
their purview of work too.
Fair–Dealing :-
• Partners only with
stakeholders who only follows
high level of ethical standards.
• Liaise in business with
customers who are involved in
legitimate businesses.
• Conducts business only after
risk-based due diligence.
Anti-corruption :-
• Company have their
control system placed.
• Cannot accept or request
any favour which may
influence the decision
making.
• If they observe any
misconduct have to report
directly to higher authority.
Antitrust and Competition :-
• Do not do any agreement that could
impact trade or harm competition.
• Any information that is
competitively sensitive is brought
up, employees must avoid being a
part of the interaction.
• Do not do any agreements that
restrict customers' or suppliers'
freedom to set their resale prices or
margins
Regarding acceptance of gifts
• Employees family members
cannot accept any kind of gift or
favour.
• Any lavish favours like dinning in
5-star or holiday packages are also
included.
• To secure any kind of business
employees cannot give gifts to
gov. officials.
Intellectual Property and
Confidential Information :-
• When asked from external
person like investors, press, etc
refrain from commenting and
direct them to designated
spokesperson.
• Keeping the confidentiality of
the companies data.
Culture and Behaviour at Rivigo Board Key Traits

Acumen to straddle
across profit pools
At Rivigo, the quality of work is Companies are driven by empathy and
measured by the purity of intention. put people first in their products and Clean Compliance
actions. History

Purity Empathy Forward thinking

Rivigo believes that villains are Great organizations and owners attitude
heroes who relax after achieving a have faith in themselves and their
goal. Rivigo strives to break this work, which creates courage and Ability to view
cycle by setting higher goals propels them forward. verticals in silos
Hero Faith
rather than letting ego get in the
way. Developing SCA in
Technology

Great organizations and Feedb Value creation on the

owners have faith in Pure Truth The company values truth and Social Side
ack
themselves and their work, transparency over saying the right
which creates courage and thing. Good track record of
propels them forward. Pro-
meeting stakeholder
expectations
Accuracy
team
Rivigo values precision over kindness,
The company values truth and Conservative Accounting
recognizing that precision and Policies
transparency over saying the right thing.
kindness are ultimately the same.

“The arc of disruption is long, but it always bends towards culture”, Deepak Garg
Leadership Principles
Performance Culture
80.0%
Promotions/Appraisal 3.3 70.0%
68.0% Out of 919 reviews
Job Security 3.3 60.0%
49.5%
available on
50.0%
Salary & Benefits 3.4
Glassdoor, 200 of
Work-Life Balance 3.5 40.0%
30.0%
31.0%
them were analysed
Company Culture 3.5 20.5%
20.0% 14.0% and the results are
Work Satisfaction 3.6

Skill Development 3.8

10.0% depicted in the
0.0%
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5
Work Life Job Security & Salary & Career growth Culture adjacent graphs.
Balance layoffs promotions

Company Culture,
Job Security, Career
Growth have
received an average
rating by employees.
These are also key
areas that employee
recommend for
improvement.
ESG Initiatives of Rivigo

Electric Vehicles :- Waste Management :- Diversity & Inclusion :-

• Full EV by 2030 • Segregation, Composting and • Women's leadership Program
• Till 2021, 100s EV Recycling across all warehouses and LGBTQ+ network
• 7.5 mil kgs CO2 removed • Reduction by 50%, sent to landfills • Till 2021, 34% women, by
2030, aims for 50%
Employee Benefits :-
Solar Power :- • For 2020, free health & life Improved Driver Exp :-
• Installed 1MW plants insurance, Covid-19 vaccines • Frequent breaks as well as
• Reduced 1.4 mil kgs of CO2 • Free Counselling services and paid leaves, helps Drivers
support for Mental health • Whistle-blower policy, and
anonymous complaint policy

Domains Definition Rivigo

Business Partially separable, overlapping with society and nature Business Model is developed around EV and Better lifestyle of Truck drivers

Society Interface between business and stakeholders Better lifestyle of Truck drivers, better logistics for faster services

Nature Interface between business and natural capital EV implementation for better environment

Relational Value Domains Economic, social, and environmental More profits, better lifestyle for truckers, and implementation of EV

Relational Principle Interdependence Needs all the facets to perform properly, that's why situation worsened
Greenwashing and Corporate Reputation

Environmental :-
• Still most of the fleet is made of diesel trucks
• Rivigo has not been transparent with number of Framework for Managing Reputational Risk
EV vehicles introduced
• Only 10% trips are EV powered
• Has yet to implement plans that were laid out for Determinants of
Reputation-Reality Gap
Changing Beliefs & Weak internal Co-
Reputational Risk Expectations ordination
2021

It is the time for Green Under Mahindra, we

Governance :- Company's Reputations
Energy revolution, and assume Rivigo will be at
• Their executive team is not diversified enough Ways to Manage is much better
Reputational Risk objectively as compared Rivigo will be put at the a much better
• Company is not transparent with their reporting to their recent workings forefront for EV logistics management staff, with
in India good cohesion
of Truckers' lives
• Accountability is low, truckers not getting paid

Strong & Sustainable

Social Initiatives :- Reputation
• During Covid-19 trucker faced additional problems,
were not helped by Rivigo
• Their accident policy is not preventive but rather
remedial
• After Covid-19, truck drivers were not looked after
Diversity and Inclusion by Rivigo

RIVIGO’s commitment :-

• No active policy or initiatives taken by company in this regards.

• Rivigo has a procedure in place to make certain that any instance of sexual harassment is dealt with in a
manner that is acceptable, sensitive, and as quickly as possible.
Performance Culture: Mapping Rivigo’s Leadership Principles vis-a-vis Big 9 Corporate Values

RLP vs Big 9 Agility Collaboration Customer Diversity Execution Innovation Integrity Performance Respect
Ownership
Hire & Develop
Deep Dive
Customer
Centricity
Boundless Energy
Think Big
1% Improvement
Everyday
Respectfully
Disagree and
Commit
Cost Leadership
Say/ Do = 100%
Technology
Obsession

Analysis of Glassdoor data (200/919 reviews) : It is observed that the company scores high on parameters such as Skill
Development, Culture etc., but when it comes to monetary compensation, it doesn’t score well. This is consistent with the
results above as the values of Performance, Respect, Collaboration, Diversity and Integrity are under-represented.
Organizational Challenges

Pressure to move from owning

Pressure from investors to Covid induced standstill in
trucks to an asset-light business
become profitable logistics industry
model

Covid induced increase in fuel Cucoon period of about a year

Sub-scale operations hindering
costs & toll charges causing hike post acquisition to develop
economies of scale
in freight rates common backend tech

Industry wide shortage of truck Large scale monitoring and data

Tapping synergies between drivers but Rivigo’s model collection posing high
Rivigo and ML post acquisition requires 8 drivers per fleet susceptibility to cyber attacks
versus 1 in traditional models and cyber theft
Recommendations for improved work culture
Recognizing employees' efforts, encouraging freedom of expression, and sharing information with them to reduce communication breakdowns.

Embracing the possibility of failure, learning from it, and having productive conversations about potential takeaways.

Leading by example, taking care of oneself, and promoting work-life balance to set a positive norm for employees.

Drafting well-thought and precise job descriptions to provide clarity, setting expectations and goals, and complementing them with regular
feedback and reviews.

Focusing on opportunities and giving praise for genuine good work to foster innovation, creativity, and communication.

Establishing two-way feedback mechanisms for early alerts of situations of employee disbelief or burnout, knowledge of avenues to improve and
information of any malpractices breeding in the company.

Widespread communication of changed ways of working to reset corporate goodwill on track.

 Thank you!
We’re now open to questions.

03-03-2023