Sendy's Struggles: A Case Study of Africa's Logistics Challenges

Company Overview

Sendy, a Kenyan-based startup, was a delivery platform that promised seamless logistics services. Launched in May 2014, their business model consisted of registered riders who used motorcycles, vans, and autorickshaws for on-demand delivery of goods. Meshack Alloys, Evanson Biwott, and Don Okoth started the company to close the logistics gap caused by the lack of instant, affordable delivery services. By September 2014, Sendy had established itself as a sustainable logistics platform with exponential growth, having over 8,000 customers and a thousand deliveries in tow.

Market Analysis

As a company, Sendy explored different niches in the logistics and transportation industries. Sendy Ride, an online taxi order app, was launched in July 2016. Cab rides were available in Nairobi, with the option of ordering motorcycle rides.

At this time, Sendy had competitors like Mondo Ride and Little Cab, the latter being funded by Safari, which also funded Sendy. While their impact was felt as a prominent company, it was often short-lived by their regular decision to revert to their main cause, running Sendy fulfilment centers. Two months later, Sendy Ride suspended operations to meet rising customer demand in the logistics sector.

Revenue

Sendy’s primary source of revenue was from e-commerce transactions and delivery commissions. After the first year of business, the startup recorded $45,000 in revenue, coupled with 27 riders and 12,000 deliveries. By the third year of business, revenue and the number of signed riders had tripled to $1.5 million and 700 respectively.

Growth and Expansion