The SOSVAN Cargo Transport Platform, Born in England, Is Being Developed in Lithuania
Raimundas Duoba began developing in Lithuania the idea for SOSVAN, a cargo transportation platform that originated in England. Although growth has been gradual, the network of drivers and customers continues to expand. The entrepreneur, who also earns his living from cargo transportation, is confident that this people-to-people business model will eventually expand into neighbouring countries.
The idea of creating a cargo transportation network came to R. Duoba while living in England, where he spent almost 20 years and, at one point, provided removal and relocation services.
"There are online platforms where people post requests when they need to move house, while individuals and companies offering removal services submit their proposals. The customer then chooses the best option. It is very convenient for both the customer and the service provider, as practically anyone can become a provider. I liked the principle that there is no need for companies or intermediaries – the customer and the service provider communicate directly," says R. Duoba.
In 2017, after briefly returning to Lithuania, he reached an agreement with an IT specialist to develop the platform. Since he could only invest his personal savings, developing the concept and building the website took several years. MB "Sosvan" was officially established in 2021, when the platform became publicly accessible.
Making Dishonesty Not Worthwhile
The original business idea was very simple – to create an online platform where people could post requests for parcel transportation, while drivers already travelling in the required direction could offer to deliver the items for an agreed fee.
"The service helps people save money when they need to transport goods, as they can expect more affordable delivery options. It also helps drivers earn extra income or at least reduce their travel expenses, which is important for many people. Above all, it encourages a sense of community, which is very important to me," says the founder of SOSVAN.
As the idea developed, many additional services were introduced. These are intended to give SOSVAN a competitive advantage not only over traditional courier companies but also over various social media groups where people look for someone to deliver forgotten keys from the seaside or other unusual items that conventional delivery services are unable to handle.
Every shipment transported through SOSVAN is insured for up to €300. Customers can also rate drivers. This means that when arranging a delivery, customers can read reviews from other users and assess whether a particular driver is suitable for their needs.
"The main problem with social media groups where people look for someone to transport their goods is that you never really know who you are handing your belongings to. There is no guarantee that the person will not disappear or that the delivery will actually be completed. When booking through our platform, the level of security is much higher. We simply remove unreliable drivers from the system," explains R. Duoba.
The SOSVAN platform generates revenue from subscription fees paid by drivers, starting at €2 per day, as well as a service fee charged to customers – 5% of the transportation price agreed between the customer and the driver.
Registered drivers can also publish their planned travel dates and routes, allowing people who need to send parcels to find them directly.
"We do not hide drivers' contact details. I believe around 50% of deliveries take place outside our platform, allowing people to save that 5% fee. However, I do not consider this a major issue. I am happy that, with our help, people are helping other people. We receive subscription income, and we still have a long way to go in expanding the business. Even agreements made directly between customers and drivers help the platform grow. Of course, in such cases, the shipment is not insured through our platform, and customers cannot rely on our emergency assistance if something goes wrong. I believe that, in the long run, bypassing the platform will simply become less worthwhile," says R. Duoba.
Creating an Alternative to Parcel Lockers
SOSVAN's main customers are people who need to transport goods requiring special attention and specific handling conditions.
"We have even transported a rose more than three metres long, which was simply too large for conventional courier companies to handle. There is quite a demand for oversized shipments because courier companies either refuse non-standard items or charge very high prices for transporting them," says R. Duoba.
The platform also transports works of art, which people may not want to entrust to ordinary courier services for security reasons, as well as fragile items and other shipments requiring individual attention.
The transportation of animals is also becoming increasingly popular, particularly when pets being given to new owners need to be transported from one city to another.
SOSVAN also has regular business customers.
SOSVAN has become a transportation partner of umdo.lt, a marketplace for surplus construction materials, helping customers transport building materials. The company also serves businesses that regularly deliver unusual goods to their customers. For example, one of these businesses manufactures various landscape architecture products, such as concrete flower pots and sculptures.
The SOSVAN business model continues to evolve. A network of partner shops is already operating and expanding in Vilnius, Kaunas and Klaipėda. Customers can leave and collect small parcels sent through SOSVAN at these locations.
If a parcel is dropped off at one of the partner shops by 1 p.m. in Vilnius or Klaipėda, or by 3 p.m. in Kaunas, it can reach another city on the same day.
This idea was also inspired by R. Duoba's experience in England.
"In England, parcel locker networks are not expanding in the same way as they are in Lithuania because there are so-called drop points in small shops. When ordering products online, customers choose a shop where their parcel will be delivered and collect it after work, often purchasing something from the shop at the same time. This system is so popular that parcel lockers are practically unnecessary," explains R. Duoba.
According to him, in terms of delivery speed, this service primarily competes with the transportation of parcels by intercity buses, a service widely known and used in Lithuania. Its competitive advantage is that there are several partner shops, and their locations may be more convenient for many customers than traditional bus stations.
Currently, approximately 18,000 drivers offering transportation services are registered on the SOSVAN platform, although the number of those paying membership fees is lower. Around 500 deliveries are completed each month.
For now, the platform is operating at a loss. In 2023, it generated €13,000 in revenue and recorded a loss of a similar amount. The financial results for 2024 are still being finalised, but it is already clear that the year was also unprofitable.
"We are still growing and investing more than we earn, but I have no doubt that the service will become popular. At the moment, it mainly lacks brand awareness. Until we can allocate larger budgets to advertising, we have to grow gradually. Nevertheless, I am confident that the service will become popular not only in Lithuania but will also expand into neighbouring countries," says R. Duoba.
Parcel transportation to and from foreign countries is already available. The company is also considering finding partner shops in Riga where customers could drop off and collect parcels.
For now, R. Duoba himself and two other private individuals are investing their personal funds into the project. The possibility of bringing in a new investor is also being considered – someone who could contribute financially, share expertise or become actively involved in the business.
Read the full article: https://www.vz.lt/mano-verslas/2025/07/12/sosvan-uzdirba-is-tu-kam-netinka-nei-kurjeriai-nei-facebook-grupiu-pavezejai-570436
