Case Study

How this food delivery giant used Hubbler to optimize their Lease management system

About the company

They are India's most successful food delivery partners, rendering services in over 500 cities across different states.

When the company began in 2014, it concentrated solely on delivering food from restaurants to customers. Now, they have expanded their repertoire to include on-demand grocery delivery and instant package delivery services.

Headquartered in Bangalore, they works with more than 2 lakh delivery partners and over 5000 employees as of September 2021. They required a better property management system and needed to automate its processes.

2 lakh delivery partners
500 cities
5000 employees
The Process

In any emerging startup, speed and accuracy in performing tasks can fall short of the effort required to manage the task efficiently. This was a major problem for the company in question. Most of their processes involved manual labor for complex tasks such as contract management, payment management, and landlord onboarding.

Further, the manual effort involved a lot of paperwork, slowing down the process. For a smaller organization, this might have been an ideal way of dealing with the day-to-day operations, but for a company that has to deal with restaurants all over the country - manual labor was a nightmare to deal with.

Lease agreements and contracts had to be sent back and forth between the parties involved. The documents were also dealt with using multiple platforms (emails, comments on docs, etc.), slowing the communication process even further. Getting approvals was another major concern since they had to be manually checked with the different business departments and verified before moving on to the next step.

With all the tedious work required to run the business, it's easy to see how the whole system was holding them back and not pushing it forward. They needed a unified software system to manage their micro kitchen operations, automate rental payments, and simplify lease accounting workflows.

Challenges
Manual Paperwork

During the initial stages of its growth, they carried out its property management tasks and payments using its manual labor power. As their list of clients grew, so did the work involved. The lease agreements and contracts could no longer be managed through the pile of emails flooded in its inbox. All the bills, invoices, and payments were checked, recorded, and managed manually

Decentralized Data System

They did not have a centralized system to store all the data. So, no one person or department could get access to the data when needed in time. This further increased the delay in bill payments.

Approval and Verification

Verifying the details of property owners was also very difficult. All their personal information such as bank account, GST, and PAN details had to be verified manually. Further, tax calculations were very hard to perform, and the risk of errors occurring was also high.

The Hubbler Solution

So, Hubbler provided a no-code platform, which was customized for its needs with key capabilities:

Completely automate the business processes
Generate contract-compliant monthly payment invoices/advices
Automate payment settlements against said invoices
Create alerts based on SLAs

Property and Owner Onboarding

Lease management was one of the greatest concerns. Using emails to contact property owners and going back and forth negotiating the terms of the agreement was very cumbersome. They used comments on the document software to make corrections, but finalizing all the details took a lot of time.

Hubbler assisted the automation of their lease management workflow by providing a platform where the property and owner details can be entered easily without manual paperwork. GST, PAN, and bank account details could also be verified automatically. With all the relevant details entered into a system, a contract with the start and end date would be generated.

Getting approvals for contracts was also simplified with the centralized data system. All the relevant departments and personnel got timely email reminders and notifications depending on the customized approval sequence. In addition, Hubbler provided scheduled email reminders of important payment dates, rent escalation, and termination dates and automatically generated payment advices.

With Hubbler, they established an efficient and automated property and owner onboarding system with which they could manage more than 300 property owners without the need for any manual intervention.

Invoice and Payment Automation

With Hubbler's invoice and payment automation, they were able to counteract the issues faced with manual accounting. Based on the property and contract database, the system generated billing reports and payment advice. A timely reminder is scheduled for the payments. The invoices are generated, verified, and approved automatically without any disruption in the workflow.

Now, they manage more than 1200 invoices and rents receipts automatically every month.

IFRS 16/AS 116 Accounting

The IFRS 16/AS 116 involved complex tax calculations that they would calculate manually. The process was often time-consuming and led to frequent errors, with the added risk of tax fraud. With Hubbler, they were able to skip all the risks and create simplified formulas to calculate these taxes automatically.
All the information required was extracted from the property and owner details database - there was no need for manual intervention. A monthly report is also generated with details such as amortization costs, imputed interests, rent paid, lease liability, lease assets, prepaid lease, etc., to keep track of the process.
They now has more than 5 API integrations for verifications and payments through Hubbler.

Utility Bill Payment Automation

Forgetting important dates is common among humans but is often detrimental to the proper functioning of a business. Before Hubbler, they faced constant delays in making utility bill payments, mainly due to the large manual labor required. With the disruption in the utility facilities available due to the delay in payments, the day-to-day operations often suffered. To solve this problem, Hubbler enabled them to automate all the utility bill payments.

The software provided the list of all the properties that have an impending utility bill or rent to be paid based on the property and contract database. They could simply select the property for which it has to make the payment and approve of the payment to be processed. Further, Hubbler also integrated some of the leading payment and banking systems so that they don't need to visit other portals to make the payments.

In order to not miss any important dates and deadlines, Hubbler uses reminders to notify them of the relevant dates and deadlines.

They can now process more than 900 utility payments automatically each month thanks to the new, empowered utility payment software by Hubbler.

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Hubbler has helped automate a complicated, multi-level business process in less than a week. Our processing time is now 60% faster and everything is approved on time. Our team likes using the slick mobile app and our vendors love the self-serve portal.

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CIO, DreamSoft