Felipe Trevisan, founder and CEO at Vuxx. Photo: Vuxx/Courtesy
Business

Brazilian Vuxx grows 200% during the pandemic with freight market technology

Meet Vuxx, a medium-weight cargo transportation marketplace that connects companies that need fractional delivery services to freight drivers

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Brazilian digital carrier Vuxx started 2021 at an accelerated pace of growth, after growing 200% last year, and does not intend to stop there. The company is currently expanding its sales team and its goal is to consolidate its operations beyond São Paulo metropolitan area.

Vuxx is a medium-weight cargo transportation marketplace – it transports from 20 kilos to 10 tons per delivery – that connects companies that need fractional delivery services to freight drivers. All negotiations and real-time tracking of deliveries are handled by the app. As for the driver, the system shows how much he will receive and the best routes to optimize travel time.

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Among Vuxx‘s main customers – the shippers (as companies that need transportation for their products are known) – are building materials industries and stores, automakers, automotive parts distributors, as well as retail and e-commerce.

When it was launched in 2015, then called Gadle, the company had five employees and a few customers. Today there are 60 employees, more than 300 customer companies, and more than 10,000 registered drivers. And despite the COVID-19 pandemic, which dropped the company’s revenue by 70% in April 2020, a redesign of the commercial strategy help Vuxx recover quickly and break records, reaching a growth of 200% compared to 2019 and projected annual revenue of BRL 20 million.

BRL 2.5 million round during the pandemic gave the impetus for growth

While adjusting amid the pandemic, Vuxx received a BRL 2.5 million in a round led by BR Angels Smart Network in December last year. “When the round came out, we were already in a good situation, with positive EBITDA and growing, so the round was excellent because we didn’t need the money to catch up, and we were able to invest in the company,” reveals Felipe Trevisan, founder and CEO at Vuxx.

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The investment made it possible to increase the sales team and accelerate the acquisition of new customers and the expansion to cities in the interior of São Paulo, such as Bauru, São José do Rio Preto, and Ribeiro Preto, and also from Baixada Santista. Still, in 2021, the company will arrive in Belo Horizonte.

Also, part of the investment will be used to improve the technology and the app’s algorithm, so that the system is more and more complete and provides a better experience for customers and registered drivers.

“The idea is that we can see every detail of the operations and thus better plan the operation for the next day. Each delivery has to make our system smarter and the next delivery is even better,” says Trevisan.

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A good algorithm is crucial to Vuxx’s plans. Its improvement is especially important for the driver so that he can make more deliveries in less time, ensuring more routes per day and less idleness. This evolution is not only based on the app’s data, but also the contribution of the drivers themselves.

The driver, by the way, is central to Vuxx. Especially in a market that Trevisan classifies as “wild”. “Working in the freight sector is very complicated. The negotiations are very tough, there is an abuse of power on the part of those who hire the transport service and a very informal relationship with drivers, with great risks of fraud.”

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To overcome these obstacles, the company guarantees to provide a better remuneration than the market average. Besides, Vuxx’s technology facilitates the drivers’ work routine, organizing delivery times and indicating the best places to park, for example. Situations were experienced by Trevisan himself when he worked helping to load and unload cargo and also as a delivery driver during an exchange in Australia in 2008.

“These factors are super stressful for the driver because they result in unproductiveness. My experience was very important to understand what they face. Our role as a tech company is to create value for people’s lives,” highlights Trevisan.

Vuxx encourages cargo transportation by female drivers

Recently, Vuxx created a sustainability department and launched the “Women Project”, which aims to increase the number of female drivers. According to the company, the project has already taken effect: in December 2020, women performed 4% of the routes executed by the platform; in early March, they already cover 10% of routes.

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Vuxx plans to reach 40% of routes run by female drivers by the end of the year. To achieve this goal, the company is strengthening its relationship with drivers, seeking to ensure more safety for them. Also, it invests in affirmative actions, with campaigns aimed at the female audience.

“The way we work, without gender bias and with a more efficient security system, has attracted more female drivers. And by realizing the social and economic role that we have as a company, we expand these affirmative actions,” said Trevisan.

Translated by Carolina Pompeo.

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