This document summarizes the results of validating business model hypotheses for a food delivery service. Several hypotheses were tested, including that restaurants would be willing to pay a commission fee and customers a delivery fee. Interviews with 10 restaurants found that 7 out of 10 responded positively to the commission fee hypothesis. A/B testing of delivery fees of 1€ vs 3€ will determine the optimal fee level. Benchmarking of competitors found commission fees range from 10-17.5% and delivery fees from 0-3€. The document concludes key hypotheses around revenue streams have been validated.

1. April 27, 2015
CLASS PRESENTATION 8
Chief
Food
Officers

2. Agenda
Hypothesis Forms – Revenue Streams2
Hypothesis Validated1
Free Marketing Channels3
Next steps4

3. Restaurants’ New Feedback
7
5
7
2
0%
20%
40%
60%
80%
100%
Restaurant and
takeaways -
General interest
Commission fee Delivery -
validated if it should be
done by YND
Validation of Hypotheses
# of positive answers # of negative answers Validated
New Insights
 Medium quality restaurants are
more interested in this business
idea.
 Some would only be able to pay
the comission fee during week
days
HYPOTHESIS VALIDATED | HYPOTHESIS FORMS| BENCHMARKING

4. Overview of the Hypotheses
Customer Segments: StudentsCS1
Customer Segments: ProfessionalsCS2
Value Propositions: No time to cookVP1
Value Propositions: No skills to cookVP2
Value Propositions: No quality food optionsVP3
Value Propositions: No want to CookVP4
Value Propositions: Fast delivery of oodVP5
Value Propositions: VarietyVP6
Channels: WebsiteCH1
Value Propositions: Convenience/UsabilityVP7
Key Partners: RestaurantsKP1
Revenue Streams: Delivery Fee from CustomersRS2
Revenue Streams: Comission Fee from restaurantsRS1
Not Validated Validated
HYPOTHESIS VALIDATED | HYPOTHESIS FORMS| BENCHMARK

5. Key Partners Key Activities Value Propositions Customer
Relationships
Customer
Segments
Revenue Streams
ChannelsKey Resources
Cost Structure
CS
1
CS
2
KA
2
KP
1
KP
3
KA
4
KA
3
KA
1
KR
3
KR
2
KR
1
C0
4
CO
3
CO
2
CO
1
KP
2
VP
1
VP
3
VP
5
VP
7
VP
6
VP
4
VP
2 CR
3
CR
2
CR
1
CH
2
CH
1
RS
2
RS
1
Business Model Canvas
HYPOTHESIS VALIDATED | HYPOTHESIS FORMS| BENCHMARKING

6. Revenue Streams: KP1 + RS1
Hypothesis Restaurants will be able to pay a
commission fee for the service provided.
Test 1 Interview 10 restaurants.
Validation 1 At least 60% of the respondents have to have
a positive answer in order to validate the
hypothesis.
HYPOTHESIS VALIDATED | HYPOTHESIS FORMS| BENCHMARKING

7. Revenue Streams: CS1 + CS2 + RS2
Hypothesis Students and Professionals will be able to
pay a delivery fee (either fixed or variable)
for the service provided.
Test 1 A/B Testing: 1€ or 3€.
Validation 1 The landing page that get more answers will
give us the amount that we will be able to
charge to the customers.
HYPOTHESIS VALIDATED | HYPOTHESIS FORMS| BENCHMARKING

8. Benchmarking
HYPOTHESIS VALIDATED | HYPOTHESIS FORMS| BENCHMARKING
Company Coverage
B2B B2C Notes
Set-up Fee
Subscription /
Month
Avg.
Commission
Premium
Listings
Delivery Fee Annotations
Delivery Hero /
Hungryhouse.co.uk
Global /
UK
499 GBP 14.99 GBP 14,0% n.a. 0 GBP
Free delivery on
almost all listings
Price guarantee,
i.e. same prices
as in partner
restaurant
Lieferando D n.a. n.a. 10,0% Yes 0 - 3 EUR
Set by restaurant
partner, free
delivery above a
minimum order
-
JustEeat /
JustEat.co.uk
Global /
UK
approx. 500 GBP n.a. 12,5% Yes 0 - 3 GBP
Free delivery on
almost all listings
-
Foodpanda Asia n.a. n.a. 17,5% n.a. 0 - 7 EUR
Strong
dependence on
country
characteristics
Delivery as well
as pickup
NoMenu PT ? d Markup ? ? ? ?
Revenue Streams: Comission Fee from restaurantsRS1 Revenue Streams: Delivery Fee from CustomersRS2

9. Thank you!
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