Enlightened Leadership for Responsible Businesses

PGP – Term 6

Submitted to:
Prof. Abhoy K Ojha

Submitted by:
Group 5

Ayush Solanki 2111229

Samarth Vanvi 2111293
Shivam Kumar 2111285
Supriya Murdia 2111490
Chaitanya Shinde 2111056
Contents
Introduction........................................................................................................................................................3
About Rivigo...................................................................................................................................................3
Business Model..............................................................................................................................................3
Growth Trajectory...........................................................................................................................................4
Why Rivigo?........................................................................................................................................................4
Logistics Industry................................................................................................................................................6
Organization Purpose and Structure...................................................................................................................7
Rivigo’s Ethics.....................................................................................................................................................7
Rivigo Culture.....................................................................................................................................................9
Rivigo Leadership Principles...............................................................................................................................9
Rivigo Core Beliefs............................................................................................................................................10
Driving Innovation............................................................................................................................................10
Points of Differentiation with Competitors...................................................................................................11
ESG Initiatives and Sustainability......................................................................................................................11
Triple Bottom line of Economic, social and environmental values................................................................11
Intertwined View of Sustainable Performance.............................................................................................12
Comparison of ESG Initiatives.......................................................................................................................13
Greenwashing...............................................................................................................................................13
Board Governance & Corporate Reputation.....................................................................................................14
Comparison of Corporate Reputation: Rivigo | Delhivery | Ecom Express...................................................14
How Can Rivigo, aided by Mahindra, create a better Corporate Reputation?..............................................14
Managing Diversity...........................................................................................................................................15
Behaviours at Rivigo.........................................................................................................................................15
Performance Culture........................................................................................................................................16
Recent Evidence/ News of Company Culture...................................................................................................18
Organizational Challenges................................................................................................................................19
Why did Rivigo become unprofitable?..........................................................................................................19
Rivigo’s Acquisition by Mahindra Logistics....................................................................................................19
Anticipated Challenges.................................................................................................................................19
Recommendations............................................................................................................................................19
Outlook.............................................................................................................................................................20
References........................................................................................................................................................20
Introduction
The objective of this project is to study an organisation’s efforts towards leading a sustainable, responsible
business and recommend ways on how these efforts can be bolstered and/ or suggest new initiatives
towards responsible means of running the business.

As a step in the direction of this objective, we will be analysing the company Rivigo i - which is transforming
the logistics industry with its unique business model and claims to lay conscious focus on achieving improved
livelistyle of its employees. The motto of Rivigo “Accelerating Commerce, Empowering Communities to
RISE” speaks of the purpose of the organisation and the problem it is trying to solve. Its goal is to humanise
logistics, simultaneously making it cost effective, faster and safer. ii

About Rivigo
Deepak Garg and Gazal Kalra, McKinsey alumni realised the strong need for humanization in the Indian
logistics industry and came up with Rivigo. The company was founded in 2014 after a road trip where the
founders talked to truck drivers, realised their pains and designed a workaround. The company has an asset
light model that connects truck drivers with the company through an app, available in 11 languages!

Rivigo has been a successful entrant in India’s $150 Bn (largely unorganised) road freight market. Its key
competitors are Delhivery, Ecom Express, Black Buck, Trukky and Lobb.

Business Model
Rivigo’s business model is akin to Relay Trucking Model or the driver relay model. In this business model, the
route of the truck has several designated pit stops. Truck drivers hand over the truck to another driver at
assigned pit stops and hence, get to work in shifts. There they take up another truck on their way back. In
this manner they are able to get back home by evening while also being able to earn a living. Rivigo currently
has a network of 70 pit stops across the country. Through this network, it achieves a driving distance of 5kms
or 250kms per driver per day.

This mechanism is made functional through an app where a duty alert rings on the driver’s phone. He
reaches the pitstop, scans a unique QR code and takes charge of the truck. Additionally, there (s)he also gets
a checklist of the terms & conditions applicable for the shipment that are subject to verification before the
truck is handed over. The same procedure is replicated for other truck drivers at the pit stop.

This business model solves the issue of driver shortage while also allows them to maintain a good work-life
balance, delivery times are shortened, and truck efficiency is increased.

Source: TheStrategyStory iii

Rivigo’s trucks are monitored in real-time (GPS, truck container temperature conditions, etc) and enabled
with IoT to allow for real-time route optimizations, verifications, and pass-overs. These features aid in
manifesting the trust of clients.

The company has deployed a patented AI system that optimises truck routes based on various standard
factors (distance, shipment size and value) and other innovative factors like equal distribution of transit
hours, rest hours, driving hours, fuel usage, driving behaviour, etc.

Growth Trajectory
In FY20, Rivigo clocked in revenues worth INR 1,080 crore iv. It has since inception, attracted the attention of
several investors like Trifecta Capital, Elevation Capital, SAIF Partners, etc. It is a Unicorn with a valuation of
$1.05 billion, as of September 2019. It has helped its clients save 12-20% of overall logistics costs. The
company got acquired by Mahindra logistics in November, 2022.

At present, Rivigo delivers to 4000 cities covering 29,000 pincodes. It has a fleet of 5000+ trucks and 200,000
clients.

Source: TheStartupTalkyv

Source: Tracxnvi

Why Rivigo?
The pointers below are the main reasons that made us choose to study Rivigo efforts of leading a
responsible, ethical business:

 Rivigo recognises the immediacy of minimized climate impact and working towards carbon-neutral
operations. The company aims to achieve carbon-neutrality by 2040. It is one of the few companies
in the Indian logistics industry to have their carbon-reduction target validated by the Science Based
Targets Initiative (SBTi)vii
  It was the first company in India to enter the domain of EV Cargo. Rivigo has already deployed EVs in
its facilities and is prodiving last mile EV vehicle-based solutions to industries
 Rivigo launched an initiative to bring transparency in India’s large unorganized logistics sector
through its National Freight Index (NFI) providing logistics decision makers and fleet owners direct
unrestricted access to freight rate and trends across the country viii
Rivigo is also investing heavily in installation of alternative energy sources in various locations in India
 Awarded the Great Place to Work certification for incorporating inclusion policies in the logistics
industry in a team of 22000+ workers. Rivigo has built an inspirational and revolutionary humanised
business model in the logistics industry transforming the conventional lives of truck drivers.

In most logistics companies, truck drivers have to stay away from their families for days, even months at a
stretch. They have to drive long hours, very frequently, overnight as well. This leads to sleep deprivation and
health deterioration. These work-life conditions often make them too tired/ fatigued to focus on the road
which often leads to road accidents endangering the life of the truck driver as well as causing huge losses to
the manufacturer/ receiver of the goods (depends on incoterms). According to a survey done by Save Life
Foundation, truck driving as a profession was not recommended by 84% respondents ix (who were truck
drivers themselves). Families are often reluctant to marry their daughters to truck drivers. They are also often
outcast by the society. Truck drivers are also significantly prone to other health disorders like obesity,
diabetes, obstructive sleep, kidney disorders, higher cardiovascular pressure, addiction to drugs & simulants,
musculoskeletal disorders, etc.
 Source: Save Life Foundation Surveyx

Rivigo’s business model discussed above helps overcome the above stated drawbacks in the logistics industry
and simultaneously leverages data and latest tech (EVs, and AR, VR augmentations) to make logistics cheaper,
safer, and faster. All of these initiatives and innovations make Rivigo a classic example of a responsible
business that does not offset the detrimental effects of its operations through CSR initiatives but conducts its
business responsibly in the first place, striving hard towards achieving a net-positive manifesto. It had also
been a classic example of how doing business responsibly and sustainably does not come in the way of
efficiency and growth but rather accelerates it.

However, gradually the company was accused of poor workplace conditions, a demeaning and toxic work
culture. It has exhibited declining profitability, and has not been able to stay strong in the face of its
competitors. Recent news dated November, 2022 announced the acquisition of Rivigo by Mahindra logistics.
Objective: Our analysis studies this roller-coaster journey of Rivigo from the lens of ethical and responsible
businesses.

Logistics Industry
Logistics is backbone of the economy for any country. Indian logistics industry contributes to ~14% of its total
GDP and it provides employment to more than 20 million people. The logistics sector includes all aspects of
the supply chain, namely transportation, inventory control, information flow, and customer support. It
determines the effectiveness of the nation's supply chain as well as having an impact on it globally. The
efficiency of logistics plays a role in determining how well businesses are able to meet demand. India has
been ranked poorly in the Logistics Performance Index (commonly used to rate country’s logistics
capabilities) released by the World Bank. India is ranked at 44 th position where India ranks poorly on factors
such as infrastructure, tracking, timeliness, logistics competence. While India’s share of logistics cost to GDP
is ~14%, it is 8% for USA and ~10% for European countries.

Out of 14%, the share of transportation cost is 8% and there seems to be huge scope of improvement there.

Fig. India’s current vs target logistics spend.

Obsolete infrastructure and vehicles, technologies, and fragmented are the primary reasons which have
driven up transportation cost.

Daily utilization of truck in terms of distance travelled per truck is 250 km to 400 km while for USA and
European countries, it is more than 700-900 km. While many factors contribute to this including ineffective
route planning, optimization, road conditions etc., a major factor is the health condition of truck drivers, both
mental and physical which make them less productive. Moreover, India’s CO2 emissions due to
transportation in 22 gigatonnes which when done effectively/efficiently can be reduced by more than 52% to
~10 gigatonnes.

Organization Purpose and Structure

Purpose of Rivigo: “…to make sure their pilots, truck drivers, spend their evenings with family and lead a
meaningful life full of respect and dignity. At present, after acquisition by Mahindra Logistics, Rivigo will be
steered by the organisation purpose defined below:

Source: Mahindra Risexi

Rivigo’s Ethics
1. At the point of conflict of interestsxii –

· Decisions shouldn’t be based on one’s personal, social, political, financial or other non-business-
related interests.
· Employees cannot engage in other activity which can have conflict of interest with the company. But
people above the level of Vice-President are allowed to hold one external Directorship/Advisory
Board positions for profit companies.
· Employees are responsible for any conflict arising which involves company’s reputation or resources
even outside the purview of duties of employees.
 ·Employees can be part of political processes or trade association but that shouldn’t conflict with
their work.
· One cannot use revigo’s affiliation in connecting political activities as this may affect company’s
reputation.
2. Anti – Corruption

· Rivigo have control system’s in place that such incidents do not occur.
· Employees cannot accept or request anything that can influence anything in the decision making.
· Employees have to report if they find any kind of misconduct to the higher authority.

3. Rules regarding acceptance of any kind of gifts:

· Employees cannot accept any kind of gift and courtesy that can influence the decision making in the
company.
· Family members are also not allowed for the same.
· Any kind of acceptance that is of kind of lavish in nature will also be considered as bribery. For
example dinner at 5-star hotel, holiday packages, etc.
· To secure any business from government by giving some gift by employees or their family to
government officials is also prohibited.
4. Fair Dealing

·Rivigo only partners with companies which follows high ethical standards as they have different
stakeholders in their value chain.
· Rivigo only liaise in business with reputable customers who are involved in legitimate business
activities.
· Rivigo conducts business only after conducting risk-based due diligence.
5. Antitrust and Competition

· Rivigo do not come to an agreement with competitors or potential competitors on terms of sale, bids
or tenders to suppliers or customers or anything else that could impact trade or harm competition.
· Employees when are in a situation with competitors or potential competitors in which information
that is competitively sensitive is brought up, employees must avoid being a part of the interaction.
· Rivigo do not agree on or propose agreements that restrict customers' or suppliers' freedom to set
their resale prices or margins and also affect their ability to sell through certain channels.
6. Intellectual Property and Confidential Information

· Employees have to keep the confidentiality of the company’s data

· If being asked from any external person like investors, press, or any other official communication
employees must refrain from discussing and instead direct to designated spokesperson.

Rivigo Culture
Rivigo is currently committed to building an institution by implementing scalable processes across technology
and business. The organization's core focus is on achieving depth in their approach, with the aim of
establishing a long-lasting philosophy that encapsulates their unique way of doing things.

Culture is formed by daily living and role-modeling, not by writing aspirational values. Culture is strengthened
at two critical moments: who is hired and who is celebrated. Rivigo's RLPs, core beliefs, and admired
behaviours are deeply embedded in the company's language, processes, actions, and aspirations. They guide
Rivigo’s way of life.

"The arc of disruption is long, but it always bends towards culture." xiii Building a great culture is fundamental
to the long-term success of an organization.

 Make a strong effort to hire exceptional people for every role and continually raise the bar. 

 Purpose drives their actions and all appointments, celebrations, technical and business
goals are aligned with making Logistics Human.
 The company is focused on getting real commitment, because sustained, long-term effort
leads to big, magical results.
 Purity and justice are the basis of all actions, and Rivigo never takes shortcuts.
 A good stride comes from clarity and focus, which the company says are the keys to all success.
Rivigo celebrates altruism, humility and a sense of belonging. They don't let short-term success get in
the way of building long-term, scalable institutions.

Rivigo Leadership Principles

The Rivigo organization is committed to recruiting talented people who can improve the team. It not only
values skills, but also the Rivigo Leadership Principles (RLPs), which are an integral part of its corporate
identity and guide their actions in testing times. These principles are similar to their DNA, and they rely on
these principles to guide our decisions.
Rivigo values the RLPs and live by them each day. They help each employee role model them and become the
best version of themselves.

Rivigo Core Beliefs

Rivigo's core beliefs revolve around the belief that a positive and consistent culture is necessary for success.
They strongly emphasize the following points:

 Creating a good culture is essential to the long-term success of an organization.

 Make a strong effort to hire fitting and talented people for every role and constantly raise the bar.
 Purpose is the driving force of their actions and all appointments, celebrations, technical and
commercial objectives are aligned with the objective of humanizing logistics.
 The company is focused on getting real commitment because concerted, long-term effort leads to
grand and magical results.
 Integrity and fairness are the basis of all actions, and Rivigo never takes shortcuts.
 The right pace comes from clarity and focus, which the company says are key to any success.
 Rivigo celebrates altruism, humility and a sense of belonging. They don't let short-term success get in
the way of building long-term scalable institutions

Driving Innovation
Rivigo has introduced innovative technology in India’s one of the most fragmented industries xiv:

 Patented driver-relay model (US Patent and Trademark Office, 2019)

 Internet connect trucks which clients can track in real time
 Containerised and GPS-enabled trucks with high-tech locking and safety mechanisms
 Sensors in trucks to collect data for coders and analysts to implement route optimization and pilot
(driver) allocation at pit stops
 Tracking of trucks’ movement for truck supply estimation by sales and operations teams
 Enabling quick resilience from protests/ strikes, demand-supply mismatches using automatic pricing
 Introduction of refrigerated lorries with remotely controlled temperature feature
 Launched a patented, novel tyre pressure monitoring system for commercial vehicles in India, in
collaboration with JK tyres to monitor tyre condition in real time reducing delays due to tyre
punctures
  Partnered with petrol pumps in India, launched fuel cards to avoid cash dealings
 Monitor and control carbon emissions, partner with clean tech and fuel-efficient truck
manufacturersxv

All of these innovations initiated and implemented by Rivigo have significantly reduced the uncertainty in
predicting the turnaround time of vehicles in India with is of profound importance for many industries like e-
commerce. Additionally, Rivigo is able to bring this certainty leveraging technology instead of burdening its
drivers with extended shifts and a poor work-life balance.

Rivigo has been treading on the path of conscious innovation which is central to its purpose and vision
hence, it is able to give its truck drivers a healthy work-life balance, achieve cost efficiencies and set an
example for other players in the industry.

Points of Differentiation with Competitors

 Rivigo provides its clients delivery times that are unheard of. Their driver relay approach, which uses
technology and data from their vehicles for optimization, makes this possible.
 Highly precise and reliable services - Their central control and planning staff uses cutting-edge
technology to continuously monitor the performance of all of their shipments and vehicles
 They offer customers total visibility and transparency - Real-time tracking, status updates, and
performance data are available to customers
 Additionally, Rivigo also seeks to increase operational safety to a seven-sigma level through fleet
adjustments, the use of technology, training, and on-the-job reinforcement
 Finally, its mission to humanise logistics is fundamentally based on the satisfaction of their pilots
(truck drivers) and they work hard to ensure their pilots lead happy and respectable lives xvi

ESG Initiatives and Sustainability

Triple Bottom line of Economic, social and environmental valuesxvii:
1. Rivigo has committed to converting its entire fleet to electric vehicles (EVs) by the year 2030 as part
of its electric vehicle initiative. As of the year 2021, the organization's fleet already includes more
than 100 electric vehicles (EVs). According to Rivigo's estimates, as a consequence of this change,
annual CO2 emissions have decreased by 7.5 million kilogrammes xviii.
2. Solar Energy: Rivigo has installed more than one megawatt worth of solar panels across its corporate
offices and warehouses. Because of this, annual CO2 emissions have decreased by 1,400 tonnes as a
direct result.
3. Waste Management Rivigo has implemented a waste management system in its offices and
warehouses, which entails the sorting of waste, the composting of organic waste, and the recycling
of recyclable materials. According to Rivigo, as a consequence of this, the amount of waste that has
been delivered to landfills has decreased by fifty percent.
4. Employee Benefits Rivigo provides its employees with a variety of benefits, including health
insurance, life insurance, and free vaccinations against COVID-19. In addition, the company has made
available to its staff members a mental health programme that includes both counselling and support
services for those struggling with mental health conditions.
5. Diversity and Inclusion Rivigo has implemented a number of programmes to promote diversity and
inclusion within its workforce, such as a women's leadership programme and an LGBTQ+ network.
These programmes are aimed at attracting and retaining employees from a wide range of
backgrounds. As of the year 2021, women make up 34% of Rivigo's workforce, and the company has
set a goal of increasing this number to 50% by the year 2025.
 6. An improved experience for the driver is provided by electric vehicles, which offer a ride that is less
bumpy and noisier than diesel vehicles. This has the potential to make driving more enjoyable for the
people who work for Rivigo, who spend a lot of time behind the wheel. In addition, electric vehicles
have instant torque and quicker acceleration, both of which can contribute to an increase in the
efficiency of Rivigo's fleet.

Intertwined View of Sustainable Performance (Systemic View)

Domains Definition Rivigo
Business Partially separable, overlapping Business Model is developed around EV and
with society and nature Better lifestyle of Truck drivers
Society Interface between business and Better lifesyle of Truck drivers, better logistics
stakeholders for faster services
Nature Interface between business and EV implementation for better environment
natural capital
Relational Economic, social, and More profits, better lifestyle for truckers, and
Value environmental implementation of EV
Domains
Relational Interdependence Needs all the facets to perform properly,
Principle that's why situation worsened

The core of Rivigo's business plan is to utilise technology to build a reliable and long-lasting supply chain in
India. Using its Relay Trucking technology, the company hopes to increase efficiency in the use of trucking
fleets, lessen environmental impact, and make life easier for truck drivers. The company's operations, as well
as its culture and values, reflect its commitment to sustainability.

Rivigo has implemented a number of initiatives that have significantly improved performance metrics in
order to reach its long-term business goals. The business has, for instance, cut fuel use by 35% by switching
to more fuel-efficient trucks and implementing more efficient routes. The business has secured money and
significantly decreased its carbon footprint as a result of this. The company has also implemented a relay
system to reduce driver fatigue, in which each driver operates a vehicle for a predetermined number of hours
before handing it off to another driver.

In addition, Rivigo's long-term success is due in part to the company's employee-focused initiatives. A good
example is the health and satisfaction of the company's truck drivers, who benefit from medical and life
insurance the company provides. Employee retention rates have gone up and the costs associated with
turnover have gone down thanks to the company's investment in a variety of training programmes that help
workers acquire new abilities and advance in their careers.

Financial, social, and environmental performance indicators have all seen significant increases as a result of
Rivigo's business strategy, which takes a holistic view of sustainable performance. The company's dedication
to environmental responsibility not only sets it apart from its rivals, but also ensures its continued growth
and prosperity in the years to come.

Comparison of ESG Initiatives

Let's compare Rivigo's ESG initiatives with Blue Dart Express Limited:
Blue Dart has taken several steps to reduce its environmental impact, including switching to energy-efficient
light bulbs and fine-tuning its HVAC system. The company has also put solar panels up to produce clean
energy at its facilities. A press release by Blue Dart claims that the company has reduced energy consumption
per shipment by 22% since 2011. (Source: Blue Dart Website). Greenhouse gas emissions have been greatly
reduced as a result of Rivigo's efforts to encourage the use of electric vehicles in its operations. Business
Today claims that Rivigo's electric vehicle fleet has travelled over 30,000,000 kilometres, avoiding the release
of over 3,500 metric tonnes of carbon dioxide into the atmosphere. (Source: Economic Times)

Blue Dart's social initiatives include things like building schools and clinics for kids who otherwise wouldn't
have access to either. A press release by Blue Dart claims that the company's charitable work in India since
2008 has improved the quality of life for more than 2.2 million people. Among Rivigo's many social initiatives
is its support for the families of truck drivers who have been killed or seriously injured on the job. The
Economic Times states that Rivigo's programme has helped over a hundred families.

Blue Dart has a well-defined Board of Directors and practises transparent financial reporting as part of its
governance initiatives. The company's financials are reportedly audited by one of the "Big Four" auditing
firms, and the board of directors is made up of seasoned professionals from a variety of fields, as reported by
The Hindu Business Line. Along with a Code of Conduct and a Whistleblower Policy, Rivigo has implemented
a number of governance initiatives to encourage ethical conduct and legal observance. The Economic Times
states that Rivigo has anti-bribery, anti-corruption, and data privacy provisions in their Code of Conduct.

Overall, both Blue Dart and Rivigo have made significant contributions to environmental, social, and
governance issues through the implementation of a number of ESG initiatives across their operations. Rivigo
has made significant progress in promoting the use of electric vehicles and supporting the welfare of truck
drivers, while Blue Dart has focused on energy-saving measures and social initiatives.

Greenwashing
Environmental: While Rivigo has made great strides in promoting the use of electric vehicles in its
operations, the majority of the company's fleet is still comprised of diesel-powered trucks. The Economic
Times states that as of now, only 10% of Rivigo's fleet consists of electric vehicles, but that number is
expected to rise to 25% by 2023.

Social Initiatives: Rivigo's programme to improve truck drivers' lives is commendable, but it's important to
evaluate whether or not the company's efforts are sufficient to fix the broader problems plaguing India's
trucking sector. Many truck drivers in India, for example, endure hazardous working conditions, low pay, and
long hours, all of which can have an adverse effect on their health. Scroll.in claims that the COVID-19
pandemic has made matters worse by contributing to a shortage of drivers and heightened competition
among businesses to secure their services.

Social Policies: During Covid-19 trucker faced additional problems, were not helped by Rivigo. The Truckers
were left to fend off for themselves against Government’s no mobility and lockdown policies. Also, their
accident policy is not preventive but rather remedial, i.e., They pay monetary fee after the accident is done,
but no step is taken to prevent it or to make the trucker cautious about the journey.

Diversity and Inclusion on the Board: While Rivigo has made strides to diversify its board, the majority of its
directors have experience in either the technology or logistics sectors. The board should also include people
with different perspectives and expertise, such as those with knowledge of environmental and social issues,
because they may bring more sustainable future to the table.

Although Rivigo has made public statements about its dedication to transparency and accountability, it is
important to determine whether or not its practises actually reflect those commitments. Some truck drivers
have complained that they were not paid for their time at work or that they were forced to work in unsafe
conditions, and the company has been criticised for both of these things. (Source: The Print)

Board Governance & Corporate Reputation

Till now, Rivigo has a solid standing thanks to its forward-thinking business model and tech-forward strategy.
In particular, Rivigo is well-known for its innovative use of data analytics and machine learning algorithms to
enhance the efficiency of logistics processes and the dependability of delivery times.

Rivigo has also been recognised for its dedication to the well-being of its drivers, who are provided with
ample rest periods, clean sleeping quarters, and other perks and insurance. As a result, the logistics industry
in India no longer has the same negative connotations as it once did, where low pay and poor working
conditions were common. But as any other logistical company, Rivigo faces some backlash due to following
reasons:

 Some customers have experienced delays in shipments and poor communication from Rivigo's
customer service team, according to reviews on sites like Trustpilot and Glassdoor. For instance,
Rivigo has a 3.6-star rating overall on Trustpilot, with some users complaining about delivery delays
and poor communication from the company.
 According to Quartz India, at least some departments at Rivigo have experienced turnover rates of
70%, with employees citing the company's demanding work schedules and stressful atmosphere as
the primary reasons for their attrition. The popularity of Rivigo, has been steadily declining as of late
(Source: Quartz India, "Why Rivigo, one of India's most high-profile logistics.
 The Indian Ministry of Road Transport and Highways issued a show-cause notice to several logistics
companies in 2019, including Rivigo, accusing them of breaking rules pertaining to the operation of
commercial vehicles. Despite denials from Rivigo and other companies and efforts to address the
issues, the incident generated negative press and raised concerns about the regulatory challenges
the logistics industry in India faces. (Source: Logistics firms under watch, face show-cause notices
from road ministry).

It's worth noting that Rivigo has won awards for a number of reasons, including its ground-breaking business
model, its dedication to the well-being of its drivers, and its use of technology to improve the efficiency of its
logistics operations. So, it cannot be entirely said based on above parameters whether Rivigo’s culture is bad
or goodxix.

Comparison of Corporate Reputation: Rivigo | Delhivery | Ecom Express

Ecom Express's corporate reputation is mixed, with the company facing challenges related to customer
satisfaction, employee satisfaction, and regulatory issues. While the company has been recognized for its use
of technology and innovation in the logistics industry, it has faced criticism and negative press in recent years.
For most of the companies in this domain, they are good with innovation, but very bad with employee
satisfaction, as we have observed with RIvigo and Delhivery also.

How Can Rivigo, aided by Mahindra, create a better Corporate Reputation?

First of all, it is important to understand that Rivigo mainly enjoys Built-in type of reputation, rather than
Bolted-on type of reputation. That is because, that whole industry is measured by the public, by how
efficient their systems are, how happy their employees are, etc… and not on marketing or advertising of the
product of the company.

· Company's Reputations is much better objectively as compared to their recent workings

· It is the time for Green Energy revolution, and Rivigo will be put at the forefront for EV logistics in
India
· Under Mahindra, we assume Rivigo will be at a much better management staff, with good cohesion
Managing Diversity
Rivigo policies have been focused on creating a culture of inclusivity by having a healthy environment
irrespective of their origination. Creating a company that is renowned for its open and varied culture, where
everyone feels respected, is involved positively, and make a joint contribution to the development of the
company. People on their team come from a variety of communities, and they draw on their own
experiences to best serve our clients. Together, they create and maintain a work climate that values
originality and fosters it to produce great achievements.

Below can be found their commitments towards inclusivity:

Source – Annual report

But there can be seen no active policy or initiative that company have taken to actually enable their mindset
of inclusivity in the company.

To prevent discrimination and harassment in the company whether it is verbal, physical or visual, 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.

Behaviours at Rivigo
Rivigo's core beliefs translate into the behaviors the company strives to embody. People who exhibit these
behaviors are likely to succeed on Rivigo.
 At Rivigo, the quality of work is
measured by the purity of intention.
Rivigo believes that villains are
heroes who relax after achieving a
goal. Rivigo strives to break this
cycle by setting higher goals Hero
rather than letting ego get in the
way.
Great organizations and Feedb
owners have faith in
ack
themselves and their work,
which creates courage and
propels them forward.
The company values truth and
transparency over saying the right thing.
Performance Culture
According to Glassdoor and Ambition Box, Rivigo has been rated 3.5 and 3.9 stars out of 5. Relative to other
logistics companies, it can be considered high. xx xxi
What evidence suggests: Glassdoor Dataxxii
Further break down of overall score into its components are shown below:
Companies are driven by empathy and
put people first in their products and
actions.
Purity Empathy
Great organizations and owners
have faith in themselves and their
work, which creates courage and
propels them forward.
Faith
Pure Truth The company values truth and
transparency over saying the right
thing.
Pro-
Accuracy
team
Rivigo values precision over kindness,
recognizing that precision and
kindness are ultimately the same.
 Promotions/
Appraisal 3.3

Job Security 3.3

Salary & Benefits 3.4

Work-Life Balance 3.5

Company Culture 3.5

Work Satisfaction 3.6

Skill Development 3.8

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

Fig. Ambition Box’s scores on various parameters

The following figure has been constructed based on Glassdoor reviews. A total of 200 comments were taken
into account out of 919 reviews available.

80.0%

70.0% 68.0%

60.0%
49.5%
50.0%

40.0%
31.0%
30.0%
20.5%
20.0% 14.0%
10.0%

0.0%
Work Life Job Security & Salary & Career growth Culture
Balance layoffs promotions

Fig. Key Areas of Improvement based on Glassdoor Reviews

It can be 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.

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
If Rivigo’s leadership principles are mapped against the “Big Nine Cultural values”, checkbox of
“Collaboration” and “Diversity” seem to be missing and there is very limited focus on “Performance”,
“Integrity” and “Respect”. It is consistent with the above findings of Glassdoor and AmbitionBox.
Performance deals with compensation, promotions, dealing effectively with underperforming employees.
Collaboration smoothens teamwork, diversity at workplace allows sharing of opinion without any racial or
ethnic filters. Integrity deals with ethical and honest professional behaviour. Respect corresponds to dignified
treatment, courtesy and consideration towards co-employees. In a heavy people-driven business like
logistics, these values are quintessential for smooth functioning of the company.

Recent Evidence/ News of Company Culture

1. Mahindra Logistics' recent acquisition of Rivigo's B2B business demonstrates Rivigo's core belief in
the importance of building a positive, consistent and strong culture for long-term success.
Acquisition gives Mahindra Logistics access to Rivigo's robust technology stack, which helps improve
service levels across its business lines, including enterprise mobility, last-mile delivery and
warehousing . Rivigo's B2B business, which generates an annual turnover of INR 3.7 crore, will now
be integrated with Mahindra Logistics' express business and the combined B2B express business will
be worth INR 55-60 crore.

However, the success of the acquisition will depend on Mahindra Logistics' ability to align Rivigo's
culture with its own and reduce Rivigo's high churn. Rampraveen Swaminathan, CEO of Mahindra
Logistics, said the company will focus on profitability over the next 12 months, in line with Rivigo's
core belief in the importance of good investments and long-term success.
The acquisition demonstrates Rivigo's firm belief that a strong organizational culture is the primary
determinant of long-term success, and the integration of Rivigo's B2B business by Mahindra Logistics
demonstrates its commitment to becoming a strong competitor in India's integrated express logistics
industry.xxiii

2. Rivigo, has been accused of being too controlling and often harsh which disses hardworking
employees and kills their motivation to work towards Rivigo’s success xxiv.

3. The article discusses the struggles of Rivigo, an Indian logistics startup, to maintain profitability and
growthxxv. Rivigo's business model relies heavily on technology and a unique trucking network, which
has led to high operating costs. The company has faced significant financial losses, employee layoffs,
and increased competition in the market. The company has also been criticized for its aggressive
sales tactics and mistreatment of employees.

Rivigo aims to improve efficiency in the logistics sector and has undoubtedly imparted improved work-life
balance of truck drivers. However, that the organizational culture, behaviors, and core beliefs are perhaps
compromised. Some of the signs of Rivigo’s toxic culture include:

 Employees are afraid to speak their mind due to previous victimization, witch-hunting, and
backbiting.
 Failure is discouraged, and employees are blamed and punished for making mistakes, hindering
innovation and learning.
 Working overtime is the norm, leading to a blurring or wiping out of the work-life balance.
 Hazy job descriptions create confusion, mismanagement of resources, and risk of becoming
unfocused and disorganized.
 Blame Game is prevalent, with a narrow focus on consequences and little praise for good work.
Organizational Challenges
Why did Rivigo become unprofitable?
Rivigo had been under tremendous pressure from investors to cut costs and divert from owning trucks to an
asset-light business modelxxvi. Its investors asserted the company’s inability to charge a premium for the
innovative truck relay business model. This was coupled with the claim of loopholes in its asset-light business
model which invited misuse from some truckers.

The pressure from investors was exacerbated during Covid as logistics industry had come to a standstill
during Covid – increase in fuel cost, toll charges – all of which forced Rivigo to hike freight charges by 4-5% xxvii,
lowering revenue by volume. Articles report that Rivigo could not become profitable due to sub-scale
operations. Its business model was well-ahead of time but Covid induced economic tussle drove the
company into struggling situations causing it to be sold.

Rivigo’s Acquisition by Mahindra Logistics

There was a downward revision in Mahindra Logistics’ valuation post Rivigo’s acquisition, which was entirely
financed through debtxxviii. Sources indicate that Rivigo and Mahindra Logistics will need at least a year’s time
to have a single back-end supply chain technology and begin tapping synergies xxix. Industry examples –
market pioneer and emerging leader, Delhivery’s acquisition of Spoton was not devoid of challenges
indicating that this acquisition will also have to stand the test of time.

Anticipated Challenges
Rivigo’s technology requires drivers to be somewhat tech savvy. Further, for one 48 hour trip which was
initially completed by a single driver, Rivigo completes the job through approximately 8 drivers. This adds in a
layer of complexity because a truck must not be stopped (Will disturb estimated time of arrival) and thus the
fleet of drivers must be confirmed a day before the truck departs. This leaves very little room for
emergencies. This requirement of having a huge number of trained drivers ready to depart at any point in
time limits the scalability of the business.

Data security – with so many levels of data monitoring, it becomes crucial to ensure the trucks and databases
are not susceptible to cyber-attacks. A company so heavily dependent on data will have to bear huge brunt
from all stakeholders if such a case arises.

Recommendations
The case of Rivigo underscores two key observations of workplace culture: firstly, attitude and belief
transcend from top management down to each level of the organisation; secondly, a manifesto of strong
leadership qualities, ethics, beliefs and values don’t necessarily and automatically flourish into practice but
needs to be nurtured and carefully in-grown into the company’s culture. To resolve these issues and restore
the organizational purpose, we suggest several actions that Rivigo's leadership can take:

 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.

Outlook
Rivigo was revolutionised Indian logistics through a novel driver-relay business model. However, this model
was well-ahead of its time when the industry was plagued with shortage of drivers and the profession being
looked upon with contempt. Further, asset heavy model of owning trucks made it impossible for Rivigo to
cope with the botto m-line downturns brought induced by Covid and resultantly, the company had got
acquired by Mahindra Logistics.

Mahindra Logistics has since long been trying to amp up its B2B freight business which it expects would rise
5x post this acquisition.

The roadmap ahead is for Rivigo to find itself a new identity and continue the novel purpose it started off
with and prove a driver-relay model can fly off. Acquired Rivigo and the new parent, should deliberate on the
above recommendations and create synergies – Mahindra’s reach, experience curve and deep pockets
coupled with Rivigo’s innovative and well-designed technology, clientele and network of pit stops, truck
drivers and fleet. These would benefit both parties and lead to a sustainable lifestyle for truckdrivers as well.

References
i
https://www.rivigo.com/
ii
https://thestrategystory.com/2021/04/25/rivigo-relay-business-model/
iii
https://thestrategystory.com/2021/04/25/rivigo-relay-business-model/#google_vignette
iv
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v
https://startuptalky.com/rivigo-logistics-company/
vi
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vii
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viii
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xii
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xiii
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xiv
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xviii
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xxv
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xxvi
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xxvii
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xxviii
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