Introduction
BlackBuck is a Bengaluru-based logistics company that was founded in 2015. The company provides technological solutions for logistics and transportation and has become one of the fastest-growing logistics startups in the country. From the day it was launched, the company has been on a mission to modernize the logistics industry through technology and innovation. BlackBuck has been backed by some of the world’s most prominent tech investors like Sequoia Capital, Goldman Sachs, and Accel Partners, among others. The company has acquired a massive client base over the years, including some of the biggest names in the industry like Hindustan Unilever, Coca-Cola, and Asian Paints.
History
BlackBuck began with a focus on full truckload logistics, but has since diversified into other areas like part load and cold chain logistics. The company has a strong presence in over 300 locations across the country and has helped address the challenges in the logistics industry through its innovative solutions. Its technology platform assists both shippers and truckers in optimizing their operations, resulting in more efficient transport. The platform helps truckers to find cargo and offers them the convenience of being paid on a daily basis.
Funding
BlackBuck has raised a total of $293 million in funding. The company’s last funding round was Series D where it raised $70 million led by Sands Capital. Blackbuck’s investors include Sequoia Capital, Goldman Sachs, Accel Partners, Wellington Management, and B Capital, among others.
Performance
BlackBuck has witnessed tremendous growth and has disrupted India’s logistics industry in many ways. The company’s platform has been a game-changer in the industry, providing a much-needed technological edge to traditional logistics operations. Its services have been well received by both shippers and truckers, with its customer satisfaction rate being some of the highest in the logistics industry.
Reason for Layoffs
However, in April 2020, BlackBuck had to lay off over 200 employees due to the impact of the COVID-19 pandemic on the logistics industry. The company cited a steep decline in demand for transportation services as the primary reason for the layoffs. The pandemic-induced lockdown has resulted in the temporary suspension of a large number of supply chains. This has severely impacted logistics companies like BlackBuck, resulting in the layoffs.
Number of Employees Laid Off
This was a significant move for the company that had reportedly offered jobs to over 9,000 people. To mitigate the impact of the layoffs on its employees, BlackBuck provided an attractive severance package that was more than the stipulated norms. The company also assured its employees of their pending dues, such as leave gratuity and salary settlements.
Statements from Company Stakeholders
Rajesh Yabaji, CEO and co-founder of BlackBuck, acknowledged the impact of the pandemic on logistics operations, leading to the layoffs. He added, “The past month has been difficult for us as we mourned the sudden loss of one of our employees. The COVID-19 pandemic has further compounded this situation.”
Conclusion
The logistics industry has been deeply impacted by the pandemic, and companies like BlackBuck had to take tough measures such as layoffs. However, the company’s actions in providing a sizeable severance package showed its commitment to employees and a desire to maintain goodwill. Moreover, BlackBuck has already witnessed a growth in demand since the lifting of restrictions and expects a full recovery soon. With innovative solutions that address traditional logistics challenges, BlackBuck is positioned to continue driving the industry forward.
