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Mobility in India is broken. We have an overwhelming amount of issues related to the people who utilize (drivers or vehicle operators) and the infrastructure being utilized (road networks, parking, fuel) and the instruments of utilization (vehicles).
- Accidents and Fatalities → According to a World Bank study, road crashes are estimated to cost the Indian economy between 5 to 7 percent of GDP a year. Official government data show that each year road accidents in India kill about 150,000 people and injures another 450,000.
- Traffic and Congestion → The capital city of Karnataka recorded a travel time of nearly 29 minutes and 10 seconds to drive a distance of 10 kilometers in the year 2022, according to the Tom Tom traffic index.
- Air Quality → The pre-monsoon report on air quality released by IITR said that leading cause of air pollution during 2022-23 was automobiles, with number of registered vehicles having risen by 6.3% since 2022 - Business Standard
- Parking → . In 2011-12, a total of 41.56 lakh vehicles were registered. Cut to 10 years later: as per November 2021 data, the number of vehicles in Bengaluru has crossed one crore – 1,00,44,491. Resulting in parking availability or inefficient utilization of available spaces. - The Hindu
- Driver Crisis in Cabs and Trucks → Liquidity Crisis and Earnings Issues faced by Drivers against volatile fuel prices, cutthroat commissions, health and safety concerns etc. - Truck drivers and Cabs
But with the age of the internet and IoT enabled tech, the landscape is changing.
- Vehicles are becoming connected, electrified and autonomous.
- Vehicle services that are essential (fuel, maintenance, parking, insurance etc.) are becoming discoverable online.
- Digital Public Infrastructure to connect services is a reality —> India Stack —> Aadhar, UPI (Unified Payment Interface), AA (Account Aggregator), etc.
Fleet Management System —> Fleet management is an administrative approach that allows companies to organize and coordinate work vehicles with the aim to improve efficiency, reduce costs, and provide compliance with government regulations. In the context of this article, it refers to a system that helps any vehicle operator (commercial or consumer) in end to end utilization of their vehicle(s).
These solutions can serve as the foundation for establishing digital rails for vehicle ownership and connected fleet management systems that address every need for equitable fulfillment of mobility. However, it’s crucial not to lose sight of the bigger picture: the everyday Indian citizen. Take for example the Indian auto driver: Earnings can be meager, expenses can go out of control due to rising fuel prices and spare parts availability and savings will vanish, leading to a liquidity crisis that drives them to make unfavorable decisions. This cascades into direct issues for the whole system. Which later auto drivers may try to solve through acquisition of high interest loans or a preference for high ticket trips leading to cancellation and non-availability of cabs for users, or skipping out on vehicle insurance / repairs etc.
Instead of functioning like a central nervous system utilized to enable coordination and control between organs and muscles in our body, the mobility ecosystem in India operates like a dangled network of string and cup phones that may or may not have a person at the end of the line.
- Inadequate incentives or training for safe and efficient driving.
- Parking availability that’s not known or does not cater to the customer specific use case. Ex: a restaurant that only has 2-wheeler parking.
- Asset Light Aggregators who have no hand in fleet management for the cab operator leading to liquidity crisis.
- Non existence of Emergency Response systems for vehicles involved in an accident or fire etc.
- EV charging stations that are not actually “connected” to intended users over the internet, resulting in congestion or unfulfillment of need etc.
Check out an extension of this problem statement and our thesis here.
This project aims at bringing order and efficiency through the lens of economics and times for vehicle operators in India, through the following ways:
- Embedded Finance: Utilizing a closed loop (collection control and end use control is maintained by the borrower agent) credit solution to alleviate the liquidity crisis (which in our case would be via OCEN-Open Credit Enablement Network) and create incentives for being a great driver and commercial vehicle operator.
- Vehicle Services Marketplace: And utilizing a marketplace of connected goods and services relevant to vehicle utilization (which in our case would be via ONDC-Open Network for Digital Commerce / Beckn)
- Fleet / Vehicle Management Utilities: Enable fleet management utilities (expense management, driving coach, fuel efficiency tracking, vehicle issue tracking, etc.)
There are two ways to consume vehicle services and achieve benefits through our solution.
- Passive: Analytics and benchmarking that users can access to course correct the way they consume fuel or working capital. (Ex: measuring fuel efficiency between fill ups and utilizing driver coaching to improve efficiency)
- Dynamic: Accessing embedded finance and utilizing discounts / rewards for fuel and other vehicle services through our marketplace, or using our stack to build Insurtech capabilities for Telematic insurance and more.
Our solution is designed to solve for unorganized commercial vehicle operators and personal vehicle owners in India.
In our pilot phase we are working to plug into channels with vehicle operators such as ride hailing or logistics platforms. We are currently working with one such partner called Cargator.
Here's a flow depicting how our offering, Steel Bridge complements Cargator's functionality:
Steel Bridge is a consumer-facing offering that consists of three fundamental layers:
- Embedded Finance Layer
- Fleet Management Layer
- Marketplace Layer
We are currently testing the product among prospective users here.
What it does?
- Small Tenure/End use Controlled Credit: Steel Bridge provides an OCEN compliant credit product for unorganized commercial vehicle operators on the platform where they can access fuel and other vehicle services.
- Proxy for Credit Score: Steel Bridge transactions serves as a reliable proxy for assessing the creditworthiness of operators, giving lenders a new perspective on potential borrowers.
Who does this benefit?
- Vehicle Operators: Steel Bridge is a lifeline for operators facing liquidity crises, helping them manage their working capital efficiently and access the funds they need to keep their operations running smoothly.
- Lenders: For financial institutions and lenders, Steel Bridge offers an innovative way to diversify their credit products and expand their market reach. A product that takes advantage of OCEN and short term lending across an underserved category of borrowers.
What it does?
- Record Transactions/Expenses: This layer enables vehicle operators to record all transactions and expenses, providing them with insights into their Total Cost of Ownership (TCO).
- Record Fuel Usage and ODO Logs: Steel Bridge allows operators to track fuel usage and odometer readings, offering invaluable mileage data.
Who does this benefit?
- Vehicle Operators: Operators can use the Fleet Management Layer to increase their profits and productivity by optimizing their expenses and fuel efficiency.
- Lenders: Lenders can leverage the data collected to gain a deeper understanding of an operator's cash flow, operator productivity, and overall financial health.
What it does?
- Find the Best Services: The Marketplace Layer empowers vehicle operators to discover the best services at the most competitive prices.
- Avail Services at a Discount and Using Credit: Operators can leverage Steel Bridge to access services at discounted rates and make payments using their credit.
- Judge Cost-to-Wallet and Reliability: Steel Bridge provides valuable information for operators to make informed decisions about cost-effectiveness and service reliability.
Who does this benefit?
- Vehicle Operators: The Marketplace Layer is a one-stop solution for operators looking to acquire services at the best rates and optimal time intervals, enhancing their operational efficiency.
- Sellers: Service providers benefit from the platform by improving their distribution channels and increasing conversion rates, ultimately growing their customer base.
Steel Mobility wants to break down silos to create a seamless vehicle ownership and utilization experience.
India has 210M 2-wheelers and 70M 4-wheelers on the road who consume nearly +$100B in vehicle expenses that we want to aggregate/ organize to create solutions for the problem layer as shown below:
Mobility is a hedge against limited productivity and limited opportunity.
Steel Mobility's purpose is to make sure this principle remains true for every citizen who owns a personal vehicle.
Reach out to us to learn more.