2. Have You Ever…
…walked away from a purchase because you couldn’t get the item home that
same day?
…had difficulty coordinating your friends or family to help you move a large item?
…made up an excuse to NOT help your friends move on a weekend?
…felt uneasy when thinking about hiring a day laborer?
…had to wait around all day for a large item delivery?
…needed to borrow a pickup truck?
…put off a project or task because you didn’t have easy access to pickup truck or
the necessary labor when you wanted it?
If there was an easier way to get access to a pickup truck and a pair of hands on-
demand around your schedule, would you use it?
3. Problem
Brick and mortar retailers need to expand their large item delivery capabilities to
compete with the growing e-commerce segment
Increasingly online shoppers are looking for flexible options regarding product
availability
48% of customers have ordered online and picked up their purchase in-store
37% of consumers research items online, but prefer to make purchases in-store
35% of consumers have ordered online and returned their purchase in-store (Shop Visible)
To address this, more retailers are offering in-store pick up and some online
retailers are setting up brick and mortar locations (e.g. Amazon), but that doesn’t
solve the “last mile” delivery issue for the large item purchaser with a small
vehicle
4. Solution
In these cases, most people either:
Pay high shipping costs to get a large item to their home which can be expensive and based
around the delivery companies schedule, not the client’s
Or rent a pickup truck from somewhere like U-Haul which wastes precious time
Or borrow a truck from a friend which can be very inconvenient for both parties
Or browse a marketplace for options which can lead to wasted time, inflated pricing,
unreliable scheduling, and working with uninsured/un-vetted service providers
EZtrux is a convenient network of pickup truck drivers and moving companies
that help clients with large item delivery, assembly, and hauling needs on-
demand
From the customer’s perspective, think of an Uber style service for pickup trucks
and labor
From the service provider’s perspective, think of a Priceline or AirBnB style model
where they join our network to utilize their excess capacity
5. How it Works
Building our platform requires addressing a two-sided market
Customers
Direct B2C and endorsement from large item retailers
Service providers
Small independent contractors and larger moving companies
Users enter the job description and their desired timeslot
They receive a quote based on time, distance, and services requested to
review/accept before job is submitted to network
Job details are sent to the closest individual driver and/or company that matches
the criteria for the job (tools, truck type, etc)
Once the driver begins the job, the client will be notified via push
notifications (choice of text/email), and a job timer will begin
The driver will get a digital client signature upon completion of the job which will
stop the job timer
7. Market Size
• E-commerce is currently outpacing traditional retail growth per yer (17%
vs. 3.5%), but in-store sales still represent a bigger market than online sales
($144 bn vs $38 bn per yr)
• 73% of customers report they want to touch merchandise before they
purchase, especially regarding big ticket items (Shop Visible)
• The overall logistics/transportation industry is a $40.5bn market and the
retail/wholesale sectors accounted for 53.7% of revenue over the last 5
years = $21.7 bn (IBISWorld)
• There are multiple categories of retail store, but in 2015, the total sales
revenue (in-store and online) for only warehouse clubs (Costco + Sam Club
+ BJ’s) = $154.4 bn (Market Realist)
• Approximately 8% of Costco sales are delivered via freight; assuming other
warehouse chains experience similar numbers = $12.3 bn in product sold that needs
to be shipped to customers every year through just warehouse clubs
8. Market Size Continued
There are 191.1 mil US online shoppers
(Statista) which also include the peer-to-peer
segment (e.g. EBay and Craigslist)
44% (84 mil) of online shoppers want the ability
to buy online and pick-up their purchases
immediately (UPS Pulse report)
The pickup truck rental industry is a $4.1 bn
national market (IBISWorld)
Not to mention those that need to also secure extra labor for
a variety of reasons/projects (moving, hauling, etc).
9. QMI Market Size
• Ideal B2C customer demographics based on surveys, current
sales, and census data
• 20-30 yr old F + 30-55 yr old M/F = ~1 mil people in OC (test market)
• If we assume that on average, 33% of those people need access to a
pickup truck and labor once per year = ~330,000 possible instances *
~$100/job = $33 million addressable market/yr in OC alone (median
HHI of $74K+)
• There are 53 counties throughout the US that match OC’s median HHI
• Assuming similar stats and demand, the national B2C market
represents a ~$250 mil opportunity per year
10. Ideal B2C Client Mindset
No easy access
to pickup
truck/labor
Service cost
makes sense
for item or
situation
Time
constraint or
convenience
preference
Non-ideal
delivery
option at
POS
11. Service Providers
• Interested in joining our network because we provide additional
revenue opportunities with no marketing overhead
• OC pickup truck drivers
• Registered pickup truck owners in OC ages 18-50, M, HHI < $100K = ~7K
people
• OC freight trucking companies – vehicles of all sizes + insurance,
licensing, people, and equipment necessary to handle jobs for larger
retail partners
• ~750 registered companies
• Currently working with Affordable Moving and Storage
• 20 trucks, 40 employees, and $5 mil+ insurance policy
12. Business Model
Service (labor included) - $50/hour + $25/hour for extra laborer
Mileage - $1.50/mile driven from pickup location to dropoff location
Charge by the minute after 1 hour ($0.83 for 1 person or $1.25 for 2)
Quote based on 15-30 min blocks at pickup/dropoff + drive time + services
75% / 25% split with service providers (we pay money transfer fees)
14. Traction
Current live beta site – MVP (minimum viable product)
Surveys (B2C, retail, and warehouse stores), simple website, free ads posted on CL
(B2C and drivers), email/phone outreach to large item retailers, job coordination
handled via phone/text
Network of ~20 responsive drivers/laborers
1 retail account – OC Recycled Furniture
1 moving company service provider – Affordable Moving and Storage
Completed ~60 jobs
15 B2C – CL ads and word-of-mouth
45 B2B – OC Recycled Furniture
Allowed us to test sales process, dial in price point, understand
customer needs/job dynamics, evaluate service providers, and
prove the business model
Need to continue beta testing newly developed app, marketing
messaging, and job scheduling with larger services providers
15. Go-To-Market Strategy
Test business model in local market of OC
Service provider recruitment
Digital/manual outreach to ~750 possible affiliate partners
Forging B2B partnerships (large item retailers)
Digital/manual outreach to ~1,200 possible affiliate partners
Direct B2C marketing
Surveys
Word of mouth and email collection for follow up outreach and FB
lookalike audience ads
Money Mailer
Paid digital marketing plan
FB paid ads
Based on 20 emails of customers/advisors, the lookalike audience
(1%, US) = ~2 million FB users
SMM
PR
16. Business Channels
• Moving help
• Peer-to-peer e-commerce delivery
Low hanging
fruit
• Furniture and appliance stores, etc
Large item retail
delivery
• On-demand (around customer schedule)
order fulfillment for big box retailers
Enterprise
partnerships
17. OC Business Channel Estimates
• Based on survey outreach and research, these estimates represent
instances where retailers would use our services regardless of
current delivery capabilities
• Large item retailers (ex. furniture stores, appliance stores, garden centers,
etc)
• ~1,200 stores that average 30 deals/mon = ~500K possible deals/year
• Warehouse Club & Superstores – Costco, Sam’s, etc
• Some Costco’s have 40/day/location (Tustin, Irvine, Laguna Niguel)
• 24 total warehouse stores that average 10/day = ~85,000 possible deals per year
18. Timeline
Phase 1 – Aug
• New user website
and driver app QC
• Implement service
provider and B2C
marketing plan
Phase 2 – Sept
• Official launch
• Retail partner push
• Continue to refine
process
Phase 3 - 2017
• Expand partners
• Expand team
• Expand revenue
opportunities
19. Offer - $50K for 20%
Currently self-funded and looking for additional $50K
angel investment to get through next 3 months
Use of funds:
Business admin - $6K
Completion of application development - $16K
Marketing testing/branding materials - $13K
Part-time employees and team building - $15K
20. Team
Rikki Torres, MBA
• CEO
Michael Sawitz
• Fast.Start Studios Advisor
Steve Gross
• Business Development
Advisor
Tim VanNorman
• Financial Forecasting
21. Team Continued
Lenny Vainberg, Retail Advisor
RST Brands
Karoleen Mito, Legal Counsel
Mito Law, P.C.
Alana Long, Commercial Insurance Broker
IQ Risk
Dan Ionita-Ariton, Service Provider Expert
Nancy Sanchez, Designer
Jerry Kornbleau, Industry Analysis
Vander Co, Development Team
Real problem is on the retail side
Shoppers are looking for immediate gratification when purchasing a big ticket item and having it at home the same day
Not to mention those that simply need to rent a truck and/or hire labor for other reasons
Clients can get the help they need with large item purchases without having to waste time comparing options through a marketplace, renting/borrowing trucks, or hiring un-vetted day laborers
Service provider is paid immediately via merchant services (fully PCI compliant merchant account – Braintree)
These screenshots are from our user web app currently in development and will be ready to begin QC in Aug
On top of demographics, client mindset plays a role
At least one factor has to be present for client to consider our services. The more, the better
7K drivers * 50% pass background check * 20% response rate * 3 deliveries/day = ~750K delivery capacity/yr
Once an independent contractor applies to join our network, they will need to provide information to pass our background check process
In order to be approved for the network, drivers must:
Have a truck model year 2000 or newer
No DUI/DWI within 7 years
No major moving violations in last 2 years
And no felonies
Once the driver passes the DMV/background check, an in-person meeting will occur to make sure company values/SLA align before drivers are activated/added to the network
We also have the capability to build a labor only pool (people without pickup trucks, but still have reliable transportation) that can meet up at the pickup/drop off locations to help with loading, assembly, or general labor
There are other on-demand delivery networks such as Buddytruk (LA), Lugg (SF), BringPro (OC), and Dolly (Seattle), but there is no national or local dominant player. Our goal is to win our local market.
Each company does the same thing in the same way, just in different geographic areas and slightly different pricing models. Currently it’s a sales/marketing/branding/service offering race.
What we've learned/accomplished so far through research and sales, all achieved with initial cash investment of only ~$40K (exclusively app and legal) and 1+ year of my sweat equity
MVP allowed us to test business concept for product/market fit and identify customers (B2C, retailers, service providers)
These are the three business channels that our main customers originate through
Part of the B2B QMI taught us that our busy season is not Christmas/end of year holidays like most retail business, but instead January through black Friday
Currently seeking additional seed funding - $50K for 20% ownership – to keep the project going
We also need:
Connections to local large item retailers/service providers
Additional board members/advisors/team members
Investment banking/investor relationships to get us to Series A raise of $500K
Still need:
CTO/IT
Accounting
Project Management
Sales assistant/appointment setters (retail partners and service providers)
Guerrilla marketing (survey’s and fliers)
Digital Marketing
Summary:
Most people react positively to the concept and can see themselves using our service
Customers expect a service like this to already exist, but most can’t name a company that does this
Been able to build traction (IC network, B2C sales, retail partner, and moving company) pre working app
Very close to beginning app QC
Already had interviews with local Costco managers
The business model allows all sides to benefit – customers get what they need easier, retailers increase their sales and services without increasing overhead, service providers get more business without increasing marketing, and EZtrux builds a profitable/scalabale/helpful business
This is great timing for this concept because customers are used to the on-demand concept of everything and retailers are looking for ways to better compete with e-commerce prices and next day delivery
There are enough service providers and a large market potential in OC alone (test market) to build a profitable business that satisfies investor ROI expectations (5x-10x ROI in 3-5 yrs)
Winning our local market will take sales, marketing, and branding expertise more than tech innovation
Why wouldn’t Uber just do this?
Completely different order frequency, demand, insurances/liability, margins, and pool of service providers
We can use Uber Rush tech to strengthen our software inexpensively, but it’s really a different business model
They might be willing to purchase a company that has made significant traction
How are you going to handle the IC vs. Employee issue?
Legal team is keeping a close eye in Uber case and making sure our contracts, marketing messaging, and service providers lean as far towards IC as possible
Looking into lead provider and franchise process/opportunities
You really think this is a big enough problem in the eyes of customers and retailers to support a startup business?
Yes, although its difficult to collect quantitative data on “potential large item purchasers without easy access to a pickup truck/labor,” our B2C and retailer surveys, sales to date, and the appearance of direct competition have shown market validation
We are in a race and want to build a helpful service for those that need us
How are you going to compete with automated delivery from self-driving vehicles?
Even if large items can be delivered with automated vehicles, they still need to be carried into client homes and assembled, which is a different puzzle every time
How are you going to get service providers and retail partners to join your network? How are you going to get customers to use your service?
I’ve downloaded lists of service providers and retail partners using my access to UCI database resources (old fashioned phone calls and emails)
Digital marketing and neighborhood mailers
What’s your differentiation from direct competition?
Advisor connections to big box retail executives
Sales, marketing, and branding experience
Pricing model that works for all parties
How much $ have you invested so far?
~$40K (legal and app) + 1.5 yr sweat equity
Any revenue? Over how long?
~$5K over ~3 months
$50K isn’t enough to reach your goals, how much more are you looking for next round?
$500K+
If you reach your fundraising goal, how many jobs do you need to do to break even? How long will that take?
40K jobs
2 years
See 5 yr P&L on next slide
What’s your exit strategy to get investors 5x-10x their investment in 3-5 years? Who would buy you?
National moving company? Uber? Direct Competitor?
Is OC big enough to create investor desired profitability? What is that number? Can you get there with only Costco?
Yes, if we’re purchased at 5x rev in yr 3 = $35 mil exit
330 deliveries/day * 365 day = ~120K jobs handled by 110 FTE service providers (110 * 5 = ~550 drivers)
Large item retailers + warehouse clubs in OC = ~600K possible jobs/yr
120K jobs = 20% of retail/wholesale club possible market in OC
How are you going to scale nationally?
Focus on counties with similar OC demographics (53 counties)
Use test market stats to show results to executive boards of big box retailers so they can push local stores to endorse us
Focus on partnering with moving companies in those areas
Expand via franchising?
