Israeli startup Bringoz plans to revolutionize shipping

Amazon delivery, photo: Reuters
Amazon delivery, photo: Reuters

Bringoz will use algorithm and on-demand services to improve the efficiency of delivery services.

In the past few years, the shipping field has been undergoing a global revolution. Amazon, Uber and established delivery companies have been trying to cope with a massive amount of packages, with the use of relatively innovative technologies - from drones that could deliver milk to our back yard to autonomous cars that could make savings in human resources.

The Israeli startup Bringoz, which began operating in January 2016, attempts to use algorithmics to deliver packages quickly and efficiently. "We are a platform connecting shippers and couriers," says CEO Doron Bakchy. "How does it work today? Each shipping company brings its products to a warehouse and, from there, distributes them on set routes, on the same day or the next day."

Bakchy says that about 57% of the world's population currently lives in urban areas, which raises real estate prices. Shipping companies require huge hangars, which they tend to situate in relatively remote industrial areas. This choice presents an economic advantage (shipping companies pay lower rent in these areas) but causes delays in packages and makes the process inefficient.

"We work in the field of on demand (services), which is very trendy and very sexy. Take, for example, a situation in which a delivery in Tel Aviv costs 25 or 30 shekels. The driver has to come from Ramat HaChayal to southern Tel Aviv, which takes him about 45 minutes and makes this uneconomic. This is why taxi drivers do not carry out deliveries.

"We decided to think of the shared taxi format. Imagine that I could relate to my car according to its volume whether a bike, a motorcycle or a transporter. My assumption is that a shared taxi has a fixed route with the variant being the daily number of passengers. I do not know how many passengers will go in the car. This is what Via and uberPOOL are doing today.

"Another issue is that there are endless preconditions in the field of packages, including schedules. Packages must reach their destination between a certain hour and a certain hour and, on the way, you must take into account volume, urgency, the weather and more."

Bringoz was founded in 2015 by Bakchy, Eliav Oschry, German Balodis and Adar Tzror and has recently raised $1 million. The algorithm developed by the company calculates all factors (such as space in the vehicle and when should a certain package reach a specific destination) and offers a dynamic route. Unlike a shared taxi, which operates along a fixed route, Bringoz couriers receive up-to-date, real-time data and change their route during the day based on the constraints detailed above.

Bakchy says that company has received investments from both angel investors and international logistics companies. Bringoz chairman is Reuven Spiegel, former Discount Bank CEO. The company's client list includes Max Brenner, Zer4u, FedEx and more.

Published by Globes [online], Israel business news - - on July 17, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Amazon delivery, photo: Reuters
Amazon delivery, photo: Reuters
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