Jugnoo Delivery, a firm in the business-to-business hyper-local delivery space, has shifted to a fully pre-paid model from a partly pre-paid and partly post-paid model.

As a result, merchants will now have to put funds in their e-wallet through debit/credit card, before ordering a delivery through Paytm. The company said it will also be soon integrating with FreeCharge and MobiKwik.

Facing competition from multiple logistics players in Tier-I cities, Jugnoo Delivery has focussed on smaller cities. “It has been a challenge in Tier-I cities with multiple players. We have been successful in Tier-II and III cities,” said Zorawer Singh, Vertical Head, Jugnoo Delivery.

Its competition includes national-level playerssuch as DTDC and Shadowfax.

The firm, which earlier had flat fares, has also started surge pricing.

The company has enrolled about 5,000 auto-rickshaws and 4,000 bikers, of which 700 are active on a daily basis, which means they carry out at least one delivery a day. The company, which focusses on B2B deliveries, has also forayed into the B2C space.

The firm, which does 4,000 deliveries daily, is targeting 25, 000 deliveries a day in the next six months, as part of a pilot with a few e-commerce players to offer on-demand delivery, apart from exploring opportunities in the B2C domain.

The average amount paid by a merchant for a delivery is ₹45-50, of which Jugnoo retains a small commission.

Auto-rickshaw fares for carrying cargo are highest in Nagpur, followed by Delhi and Bengaluru, which have CNG-based rickshaws. Fares are cheapest in Ahmedabad, Vadodara, Bhopal, Udaipur, Lucknow, Nashik, Kota and Surat. In bikes, Delhi, Bengaluru and Hyderabad have the highest fares, followed by Tier-II and III cities, the company said.