IDF Capital invests in South African on-demand truck hire startup

SOUTH AFRICA – Droppa, a Johannesburg based on-demand platform for trucks and bakkies, has secured over US$0.34m investment from SA investor IDF Capital, reports Ventureburn.

Droppa CEO Khathutshelo Mufamadi, a former computer engineer who previously worked at Rand Merchant Bank and Standard Bank, founded the startup in 2016.

The web platform and app allow members of the public, and now retailers too, to source trucks and bakkies to deliver goods on their behalf.

Droppa levies a 15% commission on whatever bakkie and truck operators using the platform charge the end customer. Drivers using the platform charge between R300 (US$20.6) and R2000 (US$137.4) per load, with the charge depending on the size of the load.

Mufamadi said that about 300 drivers, from the Western Cape and Gauteng, where the startup currently operates, are currently signed up to the platform. In all, drivers have completed over 2000 trips since the platform went live in May last year.

He said with the current funding injection, Droppa, which currently has 10 permanent staff, plans to expand to more cities across South Africa including Durban in the first quarter of next year and Port Elizabeth in the first half of next year.

Presently cross-province deliveries are arranged on advanced booking only. Droppa also plans to create a booking management system customised per retail sector.

In the first quarter of this year, Droppa introduced a platform aimed at retailers, warehouses and small business.

Mufamadi said that this platform has cut the turnaround time that retailers delivering goods to clients commonly provided from the current up to seven working days to less than 24 hours.

The startup’s clients range from hardware stores, warehouses, furniture stores and fresh produce among others.

Droppa subsequently introduced a Droppa API for developers, which allows ecommerce and online platforms to integrate with Droppa for last-mile deliveries.

Mufamadi said the startup would also use the current investment to expand these two offerings.

He said the startup currently has a partnership with Hyundai which allows drivers who wants parts and services to get these at a reduced rate. He added the startup is looking to conclude similar partnerships with other vehicle manufacturers.

IDF Capital previously funded Droppa with R950 000 (US$65 245) for an eight-percent stake when the startup underwent acceleration in late 2017 to 2018, through its I’M IN Accelerator, which is aimed at black tech startups. The startup was part in the accelerator’s first cohort.

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