Yulu - An Eco-Friendly Solution to Last-Mile Connectivity

Yulu is a Bangalore-based electric bike-sharing startup that aims to provide a sustainable and affordable last-mile connectivity solution to commuters. Founded in 2017 by Amit Gupta and Naveen Dachuri, Yulu has a fleet of electric bicycles that can be rented through its mobile app. The startup aims to reduce traffic congestion and air pollution in cities by promoting the use of eco-friendly transportation options.

Backstory

Prior to starting Yulu, Amit Gupta worked as the CEO of InMobi, a mobile advertising company, and RK Mishra was the founder of Zoomcar, a self-drive car rental company. Naveen Dachuri, on the other hand, has experience in the technology and operations sectors.

The founders of Yulu identified a gap in the transportation market in India. They noticed that while many people owned personal vehicles, there was still a need for affordable, sustainable and eco-friendly transportation solutions in congested urban areas. This led them to develop a bike-sharing platform that aimed to provide people with an easy and efficient mode of transport while also reducing traffic congestion and air pollution.

Yulu initially started with a fleet of 200 bicycles in Bangalore, which were made available through a mobile app. Users could locate and rent a bicycle from a nearby location, ride it to their destination, and then park it at any designated Yulu zone. The bicycles were equipped with GPS tracking, and users could pay for their rides through the mobile app.

As the company grew, Yulu expanded its operations to other cities in India, including Pune, Mumbai, and New Delhi. They also introduced electric bicycles to their fleet, which allowed users to cover longer distances and tackle hilly terrains more easily.

Vision of the startup.

The primary aim of Yulu is to reduce traffic congestion, air pollution, and carbon emissions in urban areas by promoting the use of bicycles and electric scooters. The company has deployed a fleet of shared bicycles and electric scooters in various cities across India, which can be rented using the Yulu app.

Yulu aims to provide a sustainable solution to the last-mile connectivity problem in cities, which is one of the major causes of traffic congestion and pollution. By encouraging people to use bicycles and electric scooters for short trips, the company hopes to reduce the dependence on cars and other vehicles, thereby reducing the carbon footprint of urban transportation.

Another aim of Yulu is to make transportation affordable and accessible to everyone. The company offers its services at a low cost, making it accessible to people from all walks of life. Yulu also aims to create job opportunities for local people by hiring them as delivery executives, mechanics, and other support staff.

In addition to its environmental and social aims, Yulu also aims to be a profitable business by offering its services to a large number of customers. The company is constantly expanding its services to new cities and has partnered with various organizations to promote the use of bicycles and electric scooters.

Business model

The business model of Yulu revolves around offering a sustainable and affordable mode of transportation for short-distance commute. Yulu provides bicycles and e-bikes that can be rented by users for a nominal fee. The company has a network of IoT-enabled docking stations across various locations in the city, where users can pick up and drop off bikes.

Yulu follows a unique 'pay-per-use' model, which means that users only pay for the time they use the bike. This model makes it affordable for people who need to travel short distances and do not want to spend money on transportation. The company charges a nominal fee of Rs. 5 for the first 30 minutes and Rs. 1 per minute thereafter.

The company has also partnered with several cities, corporate offices, and residential complexes to provide its services. Yulu's bikes can be accessed through its mobile app, which enables users to locate the nearest bike, unlock it using a QR code, and pay for their ride through digital payment methods.

Yulu has a fleet of over 10,000 bicycles and e-bikes, which are maintained by a team of technicians to ensure safety and quality. The company also provides helmets for users to ensure safety while riding.

Yulu's business model has gained significant traction in India, and the company has expanded its services to multiple cities across the country. The company has also raised significant funding from investors like Blume Ventures, Wavemaker Partners, and Bajaj Auto.

Target Market

The target market of Yulu comprises individuals who live and work in urban areas, who are looking for a quick, convenient, and cost-effective way to travel short distances within their city.

Yulu primarily targets the millennial population, who are tech-savvy and environmentally conscious. This demographic is also more likely to live in densely populated urban areas and prefer alternative modes of transportation to avoid traffic congestion and reduce their carbon footprint. Yulu's services are designed to cater to the needs of these individuals, offering a quick and efficient mode of transportation that is also eco-friendly.

In addition to millennials, Yulu also targets working professionals and students who need to travel short distances within their city, but do not want to rely on public transportation or private vehicles. Yulu's services are ideal for last-mile connectivity, which is the distance between a person's home or workplace and the nearest public transportation hub.

Yulu's target market also includes tourists and visitors to the city who want to explore the local sights and attractions. Yulu's bicycles and electric scooters offer an easy and affordable way to navigate through the city's narrow lanes and busy streets.

Yulu's target market comprises individuals who value convenience, affordability, and sustainability, and who are looking for a quick and efficient mode of transportation for short-distance urban commuting.

Funding

In September 2018, Yulu raised $7 million in a Series A funding round led by venture capital firm, Blume Ventures. Other investors who participated in the round included 3one4 Capital, Wavemaker Partners, and Rocketship VC. The funds were primarily used to expand the company's operations in Bengaluru and to launch its services in other cities.

In December 2019, Yulu raised an additional $8 million in a funding round led by Bajaj Auto, a leading Indian two-wheeler manufacturer. Other investors who participated in the round included 3one4 Capital, Wavemaker Partners, and Rocketship VC. The funds were used to further expand the company's operations in existing and new cities.

In September 2020, Yulu raised an undisclosed amount of funding in a Series B funding round led by US-based VC firm, Rocketship VC. Other investors who participated in the round included 3one4 Capital, Bajaj Auto, and Wavemaker Partners. The funds were primarily used to accelerate the company's growth, increase its fleet size, and expand its services to new geographies.

Overall, Yulu has raised a total of $20 million in funding till date. The company has been successful in attracting prominent investors due to its innovative business model and its mission to promote sustainable urban transportation in India.

Future Plans

The company has been steadily expanding its operations in Bangalore and has also launched its services in other cities such as Delhi, Mumbai, Pune, and Bhubaneswar. Yulu has been successful in partnering with local governments, corporate offices, and residential communities to promote sustainable transportation and reduce carbon emissions.

Yulu has ambitious plans for the future. The company aims to expand its services to more cities across India and eventually expand internationally. Yulu also plans to introduce new products and services to its platform, such as e-bikes, electric cars, and last-mile delivery solutions.

Yulu's long-term vision is to become a leader in sustainable micro-mobility solutions and to create a positive impact on the environment and the communities it serves. With its innovative business model and strong partnerships, Yulu is well-positioned to achieve these goals and revolutionize urban transportation in India and beyond.