CUSTOM CHALLENGE; RWANDA
PROVEN INTERVENTION TO BE DISTRIBUTED
Technologies and services used for logistics services and freight. Kumwe will stimulate the transporter network by building a platform to easily connect the organizations and individuals in need of transport with transporters.
Learn more about the Custom Challenge and why we only fund ideas that focus on distributing proven poverty interventions.
DISTRIBUTION MODEL INNOVATION
Freight transportation costs 60% more than in developed countries, which has a crippling effect on economic development. Kumwe is lowering these costs by connecting shippers and truck owners via an online marketplace. By working with Kumwe, shippers gain access to a larger network of price-competitive transporters, and these transporters gain access to more jobs. Kumwe started operation in Rwanda in August 2016 with 23 completed transports in the first month, and is expanding its operations into Uganda in early 2017.
Kumwe will establish a mobile-based freight brokerage system, Kumwe. Instead of searching for trucks through countless channels, you send one request to a freight broker, either through an online portal or directly through a person. You specify the load details - time, pick-up, drop-off, size, cargo type, etc. - and immediately receive quotes from several carriers. You then select one carrier, considering both the price and past service levels which the broker carefully tracks. Any issues with the transporter are reported back to the broker.
On the back end, the broker is primarily a digital platform. Drivers and their trucks are kept in a database; when a request for transport comes in, it is forwarded via mobile phone to carriers that meet the order needs. Drivers then use their mobile phones to bid on or ignore the request. Once you select a driver, the deal is confirmed and payment held by the broker. Upon completion of the job, drivers are rated by the customer based on metrics like on-time pickup, on-time delivery, cargo damage or shrinkage. After confirming there are no major issues, funds are released to the driver.
PILOT AND SCALING GOALS
Register 20 independent truck driers and freight companies
Establish 1-2 main partners to build volume backbone
Offer free trial period to get sticky with user base
Register 100 drivers and freight companies by the end of year 1
150+ transactions per day by year 2