Insights Into The Service Industry

At the Opportunity Summit 2018 organised by Franchise India at Pragati Maidan, session moderator Sandeep Soni, Features Editor, Entrepreneur Media started off the session, “ The service sector in India provide for 60% GDP and 20% employment in the country.” However, it is one of the most troubled sector as well.

Challenges in the sectors:
There are many problems in the industry. Dhruv Bhagat, Chief Revenue Officer, Rivigo, says, “The core of the problem being the truck drivers. Post 1991 the numbers have come down to around 480 in a couple of years as predicted.”  Rivigo wanted to provide with a relay model whereas the truck drivers can return home in 24 hours.

With 90 lakh trucks running in the country, competition is not the problem.  The problem is to get technology in the industry and how technological cost can be cut down upon. To ensure that the recent drivers are retained and also to create more jobs for them, Rivigo, through technology is trying to bring the cause down to 8-9 %.

Fresh Ideas In the sector:

In India offices where we spend a considerable amount of time were mundane. Innova8 wanted to change this, irrespective of the location. Dr. Ritesh Malik, Founder, Innov8, says, “Co-working cannot be virtual. It is about going there and interacting.”

Another fresh idea to enter the industry was when Arunabh Sinha thought of targeting the Laundromat market in India. Although an old concept in the West, his idea was like a breath of fresh air mostly for the working professionals of India. Speaking of the challenges faced, Arunabh Sinha, Founder, UClean, says, “Looking at the industry, it is extremely un-glamorous. When we tried to source people from the non-dhobi community it was a great challenge, while the scions of the dhobi community were reluctant to join.”

Looking at a brighter future:

Not all is dark and gloomy in the industry. Looking at the Real Estate industry, a major change can be noticed. From being considered ‘dalals’, today the industry is witnessing top B-school entrants. Speaking on the topic Sahil Kapoor, Regional Director, RE/MAX India, said, “It never gained much respect like it should be… Today the government has created radar where the broker has to be much more responsible, registered. We were also supposed to have stringent laws.”

He also mentions that the role of technology in organizing the sector. “From a cluttered to an organized sector, real estate has been brought under the organized sector. Technology is the only way to decide where to buy, what to buy. This was one industry which lacked in terms of technology, but it has changed a lot.”