Udacity Nanodegree Product Manager. Pitch Presentation for the Udacity product manager course. Subject is why to switch from human delivery to autonomous drone delivery and how to prepare for it.

1. DOORDASHThe futur of delivery
Product Owner: Benjamin Hülsen

2. Vision
Reliable
predictable
cost-efficient
Drone Delivery

3. OurCostProblemMaketechnologysolveit!
Providinghumanresourcesfor
adeliveryserviceinlessthan
60minisourbiggestcostdriver.
https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/the-changing-market-for-food-delivery#
“Speed ofdeliveryisthe biggestvariable in customersatisfaction,with an average 60 percent of
consumers across markets citing it as a keyfactor.The optimalwaittime is no morethan 60 minutes.”

4. Market

5. Prevalance
Whats the problem?
Highly-
Competitive market
decreases profit.

6. Total addressable market
There are >128.000 households in the U.S. in 2019
Due to the pandamic
every household is a
potential customer
Orders during pandamic (May 2020)
Spending on delivery
2016: 30bn USD https://www.bloomberg.com/news/newsletters/2020-08-11/food-delivery-coronavirus-sales-boost-could-change-habits
https://www.statista.com/statistics/1116319/favorite-food-and-grocery-delivery-services-during-coronavirus-lockdown-by-brand/
https://www.statista.com/statistics/183635/number-of-households-in-the-us/
https://www.statista.com/topics/1986/food-delivery-industry-in-the-us/

7. Business Case

8. Commission & consumer fees
Picture from: https://www.sec.gov/Archives/edgar/data/1792789/000119312520292381/d752207ds1.htm#rom752207_7 Page 107, 93
Our Business

9. Weather
Whats the problem?
Food orders raise
whenever deliverer
hesitate the most.

10. Deliverer
Whats the problem?
Salaries
Scaleability
Reliablity
Predictability
Control
from Doordash FAQ

11. Focus
Where are we starting?
The extensive use of technology is our step
forward to securely satisfy customer demands.

12. Our Solution
Self-driving robots

13. The Solution
Shifting gradually from human to drones delivery
We will develop a drone operating software to
• gain full time and cost transparency
• managing resources accordingly
• and reroute robots to enhance deliveries

14. ReturnofInvestmentResults
DeliveryTime-mostcustomercomplaints
OperationalCosts-Lowerto1/30,000
Decreaserefunds-Safe50%ofCosts

15. ReturnofInvestmentKeyFactorsAffectingCost
Infrastructure
Drones+ Development
SoftwareDevelopment
Maintenance+Support
Training
Hiringspecialskills
Rewards
Workshops
Assessment
Promotion
Campaign
HumanResources
Merchant Marketing

16. ReturnofInvestmentInitialInfrastructureCost
Infrastructurein$
DroneDevelopment
(Software+Hardware)
DroneAllocation
ReroutingSoftwareDevelopment
Maintenance+Support
Total
250,000,000
50,000,000
5,000,000
3,000,000
308,000,000
CurrentResearchCost:
SoftwareDevelopmentCost:
RobotROI:
MaintenanceCost:
https://www.sec.gov/Archives/edgar/data/1792789/000119312520292381/d752207ds1.htm#rom752207_7 -> Page93
https://www.cleveroad.com/blog/software-development-costs
https://www.robotics.org/roi-calculator-answer.cfm
http://blog.lookfar.com/blog/2016/10/21/software-maintenance-understanding-and-estimating-costs/

17. ReturnofInvestmentInitialMerchantCost
PreparingVendorsin$
TrainingVideo
SupportCenter
UserManual
100,000
250,000
50,000
VideoProductionCost:
SupportCenterCost:
Documentaion:
https://en.cifnews.com/delivery-the-idea-of-%E2%80%8B%E2%80%8Bsegway-ninebot-use-autonomous-robots-to-reduce-costs/
https://www.cloudtask.com/blog/how-much-does-it-cost-to-outsource-a-call-center
https://www.njcreatives.org/how_much_should_i_charge/
Total 400,000

18. ReturnofInvestmentInitialHumanResoucresCost
PreparingStaffin$
TrainingWorkshopsforStaff(25,000People)
HiringPeoplewithneededSkills(approx.200)
RewardBudgetforOperators
30,000,000
25,000,000
30,000,000
TrainingCost:
HiringCost:
RecognitionCost:
https://www.patriotsoftware.com/blog/payroll/cost-training-employees-average/
https://toggl.com/blog/cost-of-hiring-an-employee
https://www.rewardgateway.com/blog/employee-recognition-budget
Total 85,000,000

19. ReturnofInvestmentInitialMarketingCost
Infrastructurein$
Promotion
Campaign
50,000,000
200.000
CurrentMarketingCost:
PromotionCost:
CampaignROI:
https://www.sec.gov/Archives/edgar/data/1792789/000119312520292381/d752207ds1.htm#rom752207_7 -> Page93
https://www.sheerid.com/promotional_pricing/
https://www.webfx.com/internet-marketing/the-cost-of-marketing.html
Total 50,200,000

20. Costs Overview
Cost
Total
Category
Infrastructure Reduced operating
costs
down to x1/30
= 290,000,000
by50%
= 176,000,000
Merchant
Resources Reduced refunds
Marketing
Total
CategoryAmount in $
308,000,000
400,000
85,000,000
50,200,000
443,600,000 446,000,000
Amount in $
Benefits(after3years)(Initial)
“... have shown a drastic reduction in delivery
costs in the last mile to 0.05yuan from 1.5yuan.”
LowerDeliveryCost:
Current Refund andAdministrative Cost:
https://en.cifnews.com/delivery-the-idea-of-%E2%80%8B%E2%80%8Bsegway-ninebot-use-autonomous-robots-to-reduce-costs/
https://www.sec.gov/Archives/edgar/data/1792789/000119312520292381/d752207ds1.htm#rom752207_7 Page 107, 93
Return ofInvestment

21. Costs Overview: Dasher Compared to Operator
Picture from: https://www.sec.gov/Archives/edgar/data/1792789/000119312520292381/d752207ds1.htm#rom752207_7 Page 107, 93
OPERATOR + DRONE
VS.
VS.
Delivery Cost
Operator gets $1.5 and Maintenance $0.5
DoorDash keeps $10.80 $2
Return of Investment

22. Measurement
Our Key Performance Indicator:
Average delivery time
Average cost per delivery
Total refunds per month

23. Competitors

24. Competitor 1
Subsidiary firm of UBER
Uber has a high cash flow
Works on autonomous driving
Bonus Program for Uber + UberEats
Can utilise its Uber drivers

25. Competitor 2
Subsidiary firm of TAKEAWAY
Can leverage best practices globally
Higher reach, multipayment methods
https://www.justeattakeaway.com/gh-transaction/grubhub-transaction/
Largest food delivery outside China
The only profitable delivery business

26. Our Advantage
We have the right know-how
The knowledge we acquired
will tremendously shorten
the development time.
“Our core belief at Scotty has always been that Autonomy + Remote Assistance is the future.” Scotty CEO Tobenna Arodiogbu

27. Roadmap

28. Pillars
Protoype
Test areas
Open world
Step by step

29. Prototype
Step 1
Build own robot to
avoid dependance
and keep full control
Hardware
Software
Infrastructure

30. Prototype
Step 1
1. Aquire promising startup to get a headstart.
2. Build Doordash Drone Operator Software MVP.
3. Train first 20 Operator Team.

31. Test Area
Step 2
Establish a small scale,
reliable delivery system
in an easy terrain.
Campus
Easy Customer
Real Conditions

32. Test Area
Step 2
1. Select a campus with 9000 potential customers.
2. Get selected usecases working 90% of the time.
3. Start service. Get customer satisfaction to 90%.

33. Rollout
Step 3
2023 - First delivery
in the open world!

34. Rollout
Step 3
1. Find midsize city: easy terrain and young population.
2. Manual rerouting in <80% of the deliveries.
3. Get all Dashers replaced by drones.

35. Scope
Food
Groceries
Postal Service
Where do we go from here?

36. Where do we go from here?
Widening the scope
Scotty will be able to carry
technology to keep the food
warm or cold and even finish
the cooking.

37. Where do we from here?
Widening the scope
Scotty can take on
the last mile of
postal service.
Cities will be less
crowded.

38. Where do we from here?
Widening the scope
The service can
be used to deliver
erveryday groceries
as well.

39. Let’s begin