You’ve seen how Uber, AirBNB and other on-demand apps have transformed not only their industries – but also the way we now expect to be able to work or make transactons. Anything from physical goods (cars, bikes and tools) to services (dogsitting, small household tasks) to other resources (knowledge, spaces) has been re-envisioned with a new business model for today’s sharing economy.
This 2017 workshop was for those looking to build their own on-demand start-up or app. Customers are ready for on-demand services – but what’s the best way to meet their needs for your industry? This workshop covered some of the key considerations and actionable to-do’s to help participants start on the right foot.
Topics included:
-Some background in growth of the sharing economy: why do some concepts take off and others go bust? What approaches have proven successful or not?
-Building the business: market validation, finding your niche and key partners
-Building the platform: should you start with web or mobile? iOS, Android or both? What’s the process and costs of building an on-demand mobile or web app?
-Prioritizing features, functionality and markets
-Monetization and growth strategies
-Tools and resources to help you succeed
-It’s not all about the technology: building the right team and offline experience
-Staying ahead: mobile trends and technologies to watch in 2017 and beyond
7. Date | November 1st, 2016
We now live in an on-demand, sharing economy.
The On-Demand Economy is defined as the economic activity created by
digital marketplaces that fulfill consumer demand via immediate access
to and convenient provisioning of goods and services.
14. Strategize
the
Approach
1. Identify the problem
• What are your customer‘s motivations/frustrations?
2. Research the Market
3. Identify your niche, UVP + accelerants
4. Build your business model
• Monetization strategy
• Unit Economics
5. Market validation
16. Date | November 1st, 2016
What are
your customer’s
motivations and
frustrations?
Does the effort
justify the reward?
17. Date | November 1st, 2016
Who are your
competitors ?
What regulations
would apply?
.
What market
gaps exist?
How are you going
to provide a more
customer-centric
solution?
2. Research the Market
18. Date | November 1st, 2016
3. Identify your niche + unique value proposition
(A) Targeted need
(B) Targeted Customer type
(C) City / Region
(D) Voice
19. Date | November 1st, 2016
60% of revenue
=
out-of-town travelers
renting cars from people
flying out of town
20. Date | November 1st, 2016
Identify your Accelerants
(concentrated temporary need)
21. Date | November 1st, 2016
SAcc
Uber
accelerants
• Restaurants
• Holidays/
Events
• Sports
• Weather
22. Date | November 1st, 2016
3. Build your business model
(A) Monetization Strategy (B) Unit Economics
23. Date | November 1st, 2016
Commissions or
Transaction Fees:
encourage higher
transaction amounts
or frequency
Subscriptions: If appropriate,
provides best model for revenue
projections, encouraging repeat
transactions (automatic
renewal)
Monetization Strategy
24. Date | November 1st, 2016
Commissions or
Transaction Fees:
encourage higher
transaction amounts
or frequency
Sponsorship /
Partnerships
Subscriptions: If appropriate,
provides best model for revenue
projections, encouraging repeat
transactions (automatic
renewal)
Advertising
Monetization Strategy
25. Date | November 1st, 2016
Instacart
• Delivery Fees
• Surcharge on items
• Partnerships with retailers
(Whole Foods, Costco,
Target), who provide
commissions.
From 30 in 2015 to >100 in
2016
• In-app Advertising - ie.
free delivery if you order
advertised items
26. Date | November 1st, 2016
Pley
• Subscription Model
• Focus on Lego, and, as of
2016, 3D printers
• Active community
development, allow users
to upload Lego or 3D
designs.
27. Each transaction has
cost value + revenue value
.
How many transactions do
you need to make a profit?
What is expected
transaction frequency?
Beware of too-small margins!
Pricing and Unit Economics
29. Date | November 1st, 2016
3. Market Validation
(A) Get Letters of Intent from partners
(B) Early signups from potential users
(via splash page, newsletters, social media)
(C) Complete a transaction!
30. Date | November 1st, 2016
First market validation:
3 international guests
booked airbeds at founders’
apartment, in town for
design conference
32. Build
the
Platform
1. Choosing your team:
Inhouse or Outsource
4. Map the User Journey
3. Prioritize features +
functionality (MVP)
6. Develop, Test, Launch
5. Design the Experience2. Decide on Platforms:
iOS, Android or Web
33. Date | November 1st, 2016
1. Choosing your team
In House
• FT Support, entrenched in your day-to-day
• You can control how their time is spent,
pivot as much as you like
• Can be more cost effective, if you have
the right people
• More time-consuming / effort for you
Outsource / External Company
• One-stop team with specialized skills
• Less work required for managing
HR/Operations needs
• Experienced
• Usually expected to work with defined
scope of work: costs can increase
with each scope change
34. (Google Analytics / Surveys)
Don’t know? Ask them!
(Home / Office / On-the-Go)
Where are the users
needing the platform?
(Region / Age /
Socioeconomic Status)
Target demographics
2. Decide on platform/s
Consider users first, then choose technology
iOS * Android * Web
35. iOS
- Usually better initial platform in North America
- More revenue per download (more first
adopters, higher disposable income)
- Less complex for testing
Android
- Higher market penetration
- Best for any market outside North
America, less affulent demographics
Web
- Complete Market Penetration
- Suitable for Office/Home users, once-in-
a-while access
- Not ideal for mobile use
36. Date | November 1st, 2016
3. Prioritize functionality and
features
• User-centric approach using the Lean Start-Up
methodology: Build-Measure-Learn
• MVP (Minimal Viable Product) to begin process of
in-the-wild feedback
- Identify desired outcomes first: what
features/functionality best support those
outcomes?
- Necessary vs nice-to-have
37. Date | November 1st, 2016
Functionality Considerations
Ø Sign up/Onboarding process
• How are providers vetted?
• Social logins
Ø Can a user be both a provider and a
customer?
Ø How is service delivered/quality ensured?
Ø How is match made?
Ø Reviews/ratings?
Ø In-app messaging or SMS?
Ø Save favourites?
Ø Pricing + Payment process
Ø Dispute Resolution process
Ø Phone feature integration requirements:
camera, GPS, Voice control
Ø On-Demand apps = 3 apps in 1!
• Provider app
• Customer app
• Administrator portal
Ø Is service immediate or scheduled?
Ø Does customer/provider need live updates?
38. Date | November 1st, 2016
4. Map the User Journey
1
MassageX - User Flow
version 1.0 - February, 8, 2016
User Opens the App
Was the user previously
logged in?
No Welcome Screen
Forgot Password Screen
Reset Password Login with Facebook
Submit Request
Does the user already
have an account?
Facebook Permissions
Request
No
Sign-up with e-mail
Login with e-mail
Does the user already
have an account?
Yes
Success
Failure
Alert User: Account
Exists, login instead
Alert User: Can’t Reset
Password
Alert User: Request Sent
Successfully
Alert User: Permissions
Needed
No
Alert User: Account
Creation Failed
Yes
Alert User: Account
Creation Failed
Failure
Did the user attempt
SMS verification before?
SMS Verification
Instruction Screen
Submit SMS
Save SMS attempt to
account via API
Attempt to send SMS
verification code
Alert User: Verification
Code Incorrect
Incorrect code
Did the user complete
SMS verification?
User Type Screen
Did the user already
enter User Type details?
Create User Object
w/ API
No
Create User Object
w/ API
Success
No
Success
Create User Type Object
w/ API
Success
Yes
Set User as SMS-
verified w/ API
Customer Home
Is verification score
below threshold?
Alert User: Verifications
are good! Add some.
Account Screen My Account
Dismiss
Show Me
Did the Customer sign-
up with Facebook?
Facebook Permissions
Request
Verify w/ Facebook
No
No
Include
Facebook Verification = 1
Set User as FB verified
w/ API
Alert User: Facebook
verification successful
Success
Verify w/ ID
Yes
Alert User: Verification
failed, try again.
Failure
Has the Customer had
ID verified?
No
From Camera From Library
System Access request
Select/Submit
Decline
Set User as ID verified
w/ API
Alert User: ID verification
successful
Alert User: Verification
failed, try again.
Failed
Alert User: Submission
failed, try again.
Failed
Success
System UI screen
Allow
Success
Save Account Details
Alert User: cannot save,
try again later
Fail
Success
Get Massage
My Addresses
Add or Edit Existing
Address Detail
Alert User: cannot save,
try again later
Save Changes
Alert User: save
successful
Success
Failed
My Payment Methods
Add or Edit Existing
Payment Method Detail
Alert User: cannot save,
try again later
Save Changes
Alert User: save
successful
Success
Failed
Card.io screen
System Access request
Add with Camera
Do not allow
SuccessSuccess
Failure
Are registered Providers
above threshold?
Alert User: Service may
not be available
No
No
Yes
Yes
Prompt User for
Notifications
Spa or Home screen
At Home
At a Spa
Does the user have >= 1
addresses?
Alert User: You’ll need
an address
Massage Details
Location Services
permission request
Spa Picker screenToggle Map/List
Pick a Spa
Allow or Deny
Available RMT Picker
Screen
Pick a Time
Date/Time Details
Next Step
Query API for available
Providers
Alert User: cannot
retrieve available RMTs
Failure
Choose an RMTPick for Me
Cost Summary Screen
Is available Provider
count >= 1?
Yes
Alert User: no Providers
available
No
Submit Booking
Is Provider still
available?
Alert User: booking
failed, try again
Alert User: booking
success
Booking List
Does the user have >= 1
bookings?
Alert User: Your
bookings will show here
No
No View BookingYes Booking Detail Screen
Addresses Payment Methods
My Bookings
View
Dismiss
Show once
Show once
Cancel Booking
Has this booking been
completed?
Rate Booking
Alert User: Confirm
Do not cancel
Update job status w/ API
Alert User: Cannot
update, try again later
Fail
Alert User: Success
Success
Provider Home
My AccountSave Account Details
Log Out
Alert User: cannot save,
try again later
Account Screen
Fail
Success
Setup Payments
Stripe UI screen/
webview
Is the Provider Profile
100% complete?
Upload/Change Photo
Alert User: setup your
profile = good
No
Has the user setup
payments
Yes Yes
Alert User: setup your
payments = good
No
From Camera From Library
System Access request
Select/Submit
Alert User: Submission
failed, try again.
System UI screen
Allow
Submit/update photo
w/ API
Failure
Deny
Upload/Change Photo
From Camera From Library
System Access request
System UI screen
Allow
Select/Submit
Alert User: Submission
failed, try again.
Alert User: Photo saved
successfully
Set/upload photo w/APIFailure
Success
My Bookings
My Availability
Has the user modified
availability recently?
My Availability
Yes
No
Save Changes
Save availability w/ API
Alert User: can’t save
availability, try again
Fail
Alert User: availability
saved
Success
Rate limited
Booking List
Filter
View Booking
Booking Details
Has this booking been
completed?
Cancel Booking
Rating ScreenSubmit Rating
Rate Booking Yes
Alert User: Confirm
Update job status w/ API
Alert User: Cannot
update, try again later
Failure
Rating Screen
Submit Rating
Alert User: Success
Success
Confirm cancel
Confirm Booking
Alert User: Confirm
Update job status w/ API
Confirm
Contact customer
service
Send message w/ API
Alert User: sending
failed
Contact customer
service
Send message w/ API
Alert User: sending
failed
Failure
Alert User: sending
successful
Success
Alert User: sending
successful
Failure
Success
Is rating score below
threshold?
Type = Customer
Low Rating ScreenYes
Log Out
No
Has the Provider been
verified?
Type = Provider Yes
Verification Screen
No
Log Out
Yes
Alert User: Finish setting
up your account
Alert User: Finish setting
up your account
No
Provider Locations
Screen
Submit
Submit
Type = Provider
Type = Customer
Yes
Alert User: Finish setting
up your account
No
Yes
Yes
Verify SMS
Correct code
Provider Locations
Screen
Submit
My Locations
Write locations w/ API
Alert User: Saved
successfully
Success
Success
Alert User: Submission
failed, try again.
Failure
Address Picker
Pick an AddressYes
New Address Screen
Save Address
Write Address w/ API
Alert User: Unable to
save address
Failure
Is registered Provider
count >= 1
Alert User: Providers
unavailable
No
Yes
Query for nearest
neighbour
Does the user have >= 1
payment method setup?
Yes, assume default
Alert User: You’ll need a
payment method
New Payment Method
Screen
Save Payment Method
Write Payment Method
w/ API
Alert User: Unable to
save address
No
Fail
Success
Next Available
Query Provider + date/
time
Submit Booking w/ API
Yes
Alert User: Provider just
booked!
No
Did the API find a
Provider?
“Reserve” provider w/
API
Yes
Did the API return > 1
Provider?
Success
Yes
Alert User: no Providers
available, try again later
No
Query for nearest
neighbour
Did the API return > 1
Provider?
Yes
Success Fail
Re-send Receipt
Yes Send receipt w/ API
Alert User: receipt sent
Confirm cancel
No
Do not
confirm
Has this booking been
confirmed?
No
No
Is this the user’s current/
next booking?
Yes
Complete Booking
Yes
Alert User: Rate
customer to complete
Safety Check
Safety Check
Has the safety check
been completed?
No
Update safety check w/
API
Submit Failure
Success
Is the Provider verified &
has complete profile?
Alert User: Need verify +
profile to book
No
Yes
Toggle A/B/C
40. How does it make users feel?
Building trust through design
Optimize how information is
presented + interactions occur
Real User Feedback
5. Design the experience
Integration with
offline experiences
42. Date | November 1st, 2016
1
• Freelance workers complete errands +
misc tasks for customers
• 2014: Changed model from auction-style
bidding on jobs, to recommending 3 workers
for each job.
• Once selected, workers automatically
assigned job (could accept/reject)
• Goal: allow booking to be complete by end
of visit.
• Launched new model for London launch first
Result:
• Users grew 3x faster than in other
cities
• # Users using service more than
once became 50% higher
• Amount customers spent doubled
• % of tasks completed doubled
43. Date | November 1st, 2016
Behavioral Design: BJ Fogg’s Behavior Model
1
For someone to do something,
3 things must happen at once:
1. They must want to do it
(Identify the right problem)
2. They must be able to do it
(Make it easy)
3. They must be prompted to do it
(Triggers at the right moment)
44. Date | November 1st, 2016
6. Develop, Test, Launch!
1
1. Native development vs. Cross-Platform
3. Real User Feedback throughout the process
2. Leverage existing tools where appropriate (ie. Stripe, Zendesk, Twilio)
4. iOS: Apple Guidelines audit at each step
5. Test on as many devices as possible (or relevant), in similar scenarios as real-life
3. Try to break (and then, fix) as many things as possible
50. Grow
the
Company
1. Build up the supply side
3. Marketing and Content Marketing
4. Maximize Partnerships + Channels
2. Beta test with insiders
51. Grow
the
Company
1. Build up the supply side
3. Marketing and Content Marketing
4. Maximize Partnerships + Channels
5. Leverage your community
2. Beta test with insiders
52. Grow
the
Company
1. Build up the supply side
3. Marketing and Content Marketing
4. Maximize Partnerships + Channels
6. Pound the pavement
5. Leverage your community
2. Beta test with insiders
53. Grow
the
Company
1. Build up the supply side
3. Marketing and Content Marketing
4. Maximize Partnerships + Channels
6. Pound the pavement
5. Leverage your community
7. Get creative!
2. Beta test with insiders
54. Grow
the
Company
1. Build up the supply side
8. Refine – Adapt - Pivot
3. Marketing and Content Marketing
4. Maximize Partnerships + Channels
6. Pound the pavement
5. Leverage your community
7. Get creative!
2. Beta test with insiders
55. Live in the future,
and then build what’s missing.
Paul Graham,
Founder, Y Combinator
57. Building an On-Demand Startup or App
November 1st, 2016
Billy Bouris
Iversoft Solutions Inc.
Thank you!
megan@iversoft.ca
@meganjmartin
@meganforsythe
@iversoft
