Tech logistics startup COGOS ties up with Maruti Suzuki to promote 'Driver-Cum-Owner model'

Homegrown intra-city logistics startup COGOS, on Friday, joined hands with India’s largest automaker Maruti Suzuki to provide easy adoption of compressed natural gas (CNG) vehicles amongst the driver partners of COGOS.

Prasad Sreeram, CEO & Co-Founder of COGOS, in a statement, said, “We are glad to announce this partnership with Maruti Suzuki which will help us in supporting our driver partners. We would also like to thank Kalyani Motors for their support. Our long-term goal will always be to support and educate our driver partners and this is just a step in a similar direction.”

According to the company, this “initiative is a first in the logistics sector and is available for CNG vehicles to promote sustainable and green logistics.” The offer has been implemented with the help of Maruti Udyog’s Kalyani Motors to help promote the Driver-Cum-Owner (DCO) model throughout the nation.

Around 50 per cent of the country’s $150 billion transportation logistics market is in the short-haul and last-mile delivery sectors. 30 per cent of this is currently serviced by third-party logistics, with the remaining 70 per cent fragmented among many small vendors and DCOs.

Small transporters typically operate a particular fleet and rent them out under fixed contracts to their clients. Others follow the DCO model and seek business through freight consolidators and brokers who take a commission.

Earlier, COGOS has also partnered with multiple financial institutions to enable easy financing for driver-partners when buying EVs. Recently, it acquired Porter's fast-moving consumer goods (FMCG) trade business and announced its expansion in three states earlier in the year.