The emergence of on-line hyperlocal providers and e-commerce companies in India has led to the creation of about 200,000 jobs for blue-collar staff who ship objects to clients, in accordance with business estimates.
However it is usually the sort of job that continues to see a excessive attrition price. Which means that firms like Zomato, Swiggy, Dunzo, Amazon India, and Flipkart have to interchange a good portion of their supply workforce each three to 4 months.
“A small portion of these workers either switch jobs to go to a different delivery company, or they take up a different job,” stated Madhav Krishna. “And a large chunk of them end up going back to their villages to work on their farms.”
“There is a cyclical migration phenomenon in India wherein a very large population migrates from villages to cities looking for a job. They work in cities for a few months and then return to their hometowns in time for the next crop harvesting season,” he stated.
The attrition price is so excessive that it has change into a serious problem for firms to maintain hiring new individuals, Krishna stated. Moreover, with e-commerce and on-demand supply area projected to develop 4 to 5 instances in India by 2025, environment friendly provide acquisition is a serious requirement for progress.
Three years in the past, Krishna, who obtained his Masters in machine studying from Columbia College earlier than transferring to Bangalore, based Vahan, a startup that’s making an attempt to assist these firms discover potential blue-collar staff at scale.
Vahan operates a WhatsApp Enterprise account the place it informs potential candidates of the accessible jobs within the business. candidates are offered with a collection of qualifying questions, screened, and are authenticated by Vahan.
A lot of this course of, which takes merely minutes, is automated through an AI-driven chatbot, and Vahan (Hindi for “vehicle”) directs the shortlisted candidates to its purchasers for a walk-in interview and on-boarding. Its purchasers immediately embrace meals supply companies similar to Zomato and Swiggy, hyperlocal concierge service Dunzo, and logistics firm Lalamove.
“There are three things that need to come together: What do people want? What are their capabilities? And the third is, what is available in the market?” Krishna stated. “It’s really a matching problem that we’re trying to solve. We are using data and machine learning to solve a complex matching problem.”
Y Combinator (YC) not too long ago chosen Vahan to take part in its Summer season 2019 batch. In an announcement, Adora Cheung, a companion at YC, stated, “High mobile penetration coupled with massive growth in data consumption has made it possible for companies such as Vahan to reach millions of Indian via digital channels.”
“Vahan is addressing a space that is severely underserved and is poised for disruption via tech. Their use of WhatsApp is a great fit for reaching the blue-collar audience and their traction proves it. We are excited to back them and see them grow!”
Vahan makes income from taking a lower every time its prompt candidates change into a part of the company shopper’s workforce. For one of many aforementioned purchasers, the referral lower is about 7.5%, two sources at that firm stated. The quantity additionally varies primarily based on how lengthy these candidates persist with the platform, they added.
Within the final 12 months, Vahan has amassed over 1,000,000 customers and has helped over 20,000 individuals safe a job. Every day, round 5,000 customers verify Vahan to search for a job. “This is all through zero-marketing spend. Job seekers are finding us through their friends,” Krishna stated.
This is the reason Vahan operates on WhatsApp, too. “Most of the people we’re trying to help, they are not active on any online recruitment platform. WhatsApp is one of the few apps they use heavily,” Krishna stated. “We send over 50,000 messages a day on WhatsApp and 95% of them get read. In fact, 15% get read in under 10 seconds”, he added.
WhatsApp, with greater than 400 million customers in India, has change into a each day behavior for a lot of the internet-connected inhabitants of the nation. In recent times, many firms have constructed their companies on prime of the platform to make use of it as an efficient distribution channel for his or her companies.
As an example, Meesho, a social commerce app, helps tens of millions of individuals within the nation purchase and promote merchandise on WhatsApp. It not too long ago acquired an funding from Fb, the primary of its form by the social juggernaut within the nation. Dunzo, which has been backed by Google, and Sharechat, which counts Twitter as one its buyers, additionally began on Fb’s immediate messaging app.
As for Vahan, it plans to quickly provide skiling programs to its customers as they navigate extra job alternatives sooner or later. It’s also working with many firms for deeper system-level integrations.
Because it sees the platform obtain traction, Vahan additionally desires to develop its providing past supply jobs.