The slides elaborate on how Uber direct should expand into fashion delivery

1. Uber Direct
Expansion into fashion

2. Problem
• As a customer, I have to wait for at least 24 hours to get my
delivery even if I choose the most expensive delivery option
today
• As a retailer, I want to cater to more customer preferences and
a lot of customers these days want faster delivery options

3. Target Audience
Retailers:
● Large retailers and high
end chains for better
reach
Customer:
● Customers who can
afford express delivery

4. Value Proposition
Faster delivery leading to
increase in satisfaction with
brand
Provide on demand delivery for
customers in a time when
leaving the home is not safe
Customer Retailer

5. Opportunity size
• Total Addressable Market
(Last Mile Delivery): $3.2 B
• Service Addressable Market
(Fashion Last Mile
Delivery): $928 M
• Service Obtainable Market:
$550M (luxury and large
retailers make up about
60% of the addressable
market)
$3.2 B
Source:
https://www.statista.com/statistics/278890/us-apparel-and-accessories-retail-e-commerce-revenue/
https://www.ibisworld.com/industry-statistics/market-size/clothing-boutiques-united-states/
https://www.ibisworld.com/united-states/market-research-reports/clothing-boutiques-industry/
Last Mile Delivery Market

6. Product Solutions
• Solution 1:Creating a marketplace for brands to showcase content
and provide option to fulfill deliveries through Uber
• Solution 2: Exposing an API which can be consumed by businesses
for a B2B integration with Uber Direct for on demand delivery
option on the retailer checkout page
*Prioritisation exercise in appendix

7. Product Solution - B2B integration
Integrating into existing applications gives enables
users to use their favourite apps while getting
delivery through Uber
MVP:
● API for fashion retailers to consume
powered by backend uber matching
engine
● Delivery window of 5 hours
● Limited onboarding of retailers

8. Experiment
Launch with one retailer for one location:
• Build an API and integrate into a retailer delivery page
• Location for the experiment can be a large city like New York,
San Francisco with high acceptance to new ideas
• Test the demand: Percentage of deliveries being fulfilled by Uber

9. Validating Hypothesis
Assumption Validation Mechanism
Customer demand exists
Painted door test
(Include the delivery option on the
website which on clicking validates user
interest)
Retailer willing to adopt the solution Conversations with the retailers
Operational capacity to meet delivery
demand Results from the MVP experiment

10. Expanding Uber Direct into retail globally
Standardising on demand delivery in the retail industry.
Think fast delivery, think Uber
What is the long term vision?

11. Post launch success (3 month period)
Primary Metric Benchmark
Number of
deliveries made
At least 10% capture
of the Last Mile
Delivery Market
Deliveries fulfilled
by Uber per brand
outlet
At least 30% of
deliveries through
Uber
Increase in sales for
retailer
Capture and increase
in sales through A/B
testing
Click through rate
on website
Large retail Chain:
5-10%
Luxury brand: 30%
Secondary Metric Benchmark
Delivery error
rate
Error rate below
5%
Number of
retailers
onboarded on the
platform
30% of total large
retailers and
luxury brands
Customer
Satisfaction
through NPS
3.5 - 4 star

12. Risks and mitigation
Risks Mitigation
Theft of merchandise by driver
Evaluate insurance coverage and place
a price limit if necessary
Integration Problem with retailer
Come up with older architectures
support for API integration
Customer service can’t coordinate with
store
Set up a point of contact for each retail
outlet for delivery
Returns cannot be processed easily
Return processing to be done through
existing retailer channels

13. Appendix

14. Ranking and prioritisation
Metric:
Convenience
delivered to the
customer
Resource
requirement to
execute
Return on
Investment
Ease of Adoption
for brands
Solution 1
(Marketplace)
Medium
(New platform
adjustment)
High
(High
development
cost and time)
Medium (Only
deliveries are
being made by
Uber)
Low (Brands need
to integrate with
the application)
Solution 2
(B2B integration)
High
(Customers can
use existing
platform)
Medium
(Easy to develop
technology but
logistic
execution is
complex)
High
(Low investment
good returns)
High
(Simple
integration)