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idealspace Berkeley Final Presentation
Express Pickup is a mobile app that allows individuals to order ahead from local retailers for curbside pickup. The business aims to onboard 100 retailers and acquire 300,000 individual customers by year 3. Key activities include maintaining the mobile interface, customer support, and expanding partnerships. The target market size is $4.2 billion and net income in year 3 is projected to be $2.2 million. An investment of $3.5 million is needed to achieve these goals.
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- 1. IDEALSPACE Week 01: MappingAnalytics for real estate Week 10: “Express pickup” for any retail business Interviews: 100 (0) total Mentor Engagements: 18 (1) total TAM $14.3 bln SAM $6.2 bln Target Market $4.2 bln (Hustler) (Picker) (Engineer) (Designer) (Helper) EWMBA 2015, EECS Undergrad FT MBA 2014, BA Undergrad EECS Ph.D. iSchool, MA in International Policy FT MBA 2015, BA Undergrad
- 2. Value Proposition CustomerSegments Churches want to accommodate donors who don’t want to give by cash or check Churches and donors want some other value in addition to just online processing of transactions A customizable mobile app increases donation participation & frequency Develop generous giving habits in the younger generation Churches want to engage with members more effectively GiveModo as a replacement for online giving portal Key Partners • Brokers • Data owners • Property owners • Utility and service providers Key Resources Key Activities • Web/mobile interface maintenance • Customer support • Partnerships Expansion Key Resources • Direct sales team • Data analytics engine • Mobile/web interface Cost Structure • Customer support • Sales team salaries • Commission to brokers Value Prop. • Small business owners: access to valuable information • Brokers: Qualified leads Customer Relationships • GET: Industry conferences • KEEP: customer support • GROW: referrals, recommendat ions Channels • SMBs: direct mail • Brokers: direct sales Customer Segments • Brokerages • Government development agencies Revenue Streams • SMBs: usage fee • Brokers: subscription model Mapping Analytics for Real Estate
- 3. Virtual Drive Through/ Moms 4 Our Journey Varioussales and marketing tools for SMBs 2-3.5 Included all retail & various segments of individuals 5-7 Experiment #1 8 Scale! 9-10 Restart! Real Estate + Predictive Analytics 1
- 4. Value Proposition CustomerSegments Churches want to accommodate donors who don’t want to give by cash or check Churches and donors want some other value in addition to just online processing of transactions A customizable mobile app increases donation participation & frequency Develop generous giving habits in the younger generation Churches want to engage with members more effectively GiveModo as a replacement for online giving portal Key Partners • Restaurant POS system providers • Communicati on service providers Key Resources Key Activities • Web/mobile interface maintenance • Customer support • Partnerships Expansion Key Resources • Direct sales team • WYSWYG storefront generator • Mobile app Cost Structure • Customer support • Sales team salaries Value Prop. • Access to locations with limited parking Customer Relationships • GET: Advertising and app store • KEEP: customer support • GROW: paid premium features Channels • Direct sales • Paid Advertising Customer Segments • Mothers with small children Revenue Streams • Free for individual users • 3-7% commission for restaurants Virtual Drive Through @ Week 4
- 5. Value Proposition CustomerSegments Churches want to accommodate donors who don’t want to give by cash or check Churches and donors want some other value in addition to just online processing of transactions A customizable mobile app increases donation participation & frequency Develop generous giving habits in the younger generation Churches want to engage with members more effectively GiveModo as a replacement for online giving portal Key Partners • Marketing firms serving retailers • Restaurant POS system providers • Delivery service aggregators Key Resources Key Activities • Web/mobile interface maintenance • Customer support • Ratings and user analytics Key Resources • Direct sales team • VC funding ($3.5 mln.) • IP protection Cost Structure • Sales team salaries - 7-30 FTE • Paid advertising - $17 to acquire customer Marketing the express pickup concept • Technical and support providers Value Prop. • Express pickup • Convenience • Access to locations with limited parking • Customer Satisfaction Customer Relationships • GET: Direct sales and app store • KEEP: customer support • GROW: venue/item recommendat ions Channels • Direct sales • Paid Advertising Customer Segments • Fast casual and casual dining restaurants • Convenience stores • 25-40 y.o. mothers with 0-5 y.o. children • 25-35 y.o. working professionals Revenue Streams • Service fee for individuals (5% of order, no less than $0.99) • 3-7% commission for retailers Express Pickup @ Week 10
- 6. Successes so far EdnaRay Restaurant The Campus Store Convenience store Ganesha Restaurant LA Familia Restaurant 4 retail customers on boarded 15 individual customers served 3 geographies tested
- 7. Business Today Express Pickup Activity Payment Providegoods Rate service 3 4
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- 11. Epiphany Moment “I’d ratherdrive 20 minutes to a drive through, then get out of the car to go across the street”
- 12. Data Drives Discovery Badweather = High demand
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- 15. Next Steps: 1. Enhanceservice: Improve timings precision 2. Drive cost down: move from direct sales to online sales 3. Just do it! Increase sign up rate to 2 customers/hour Ready to go ahead! Risks • Competition • Cost structure Target Market $4.2 bln. Net Income (Y3): $2.2 mln. Investment Needs: $3.5 mln. Investment Readiness Level
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- 18. Low High Is the pricefair? - How to pass all regulations? - How to stay afloat when with no cash inflow? - How to be profitable? Business operation timeline Concern • Repeat business is critical • Customer loyalty is critical • Time split between Marketing and Customer Service • Limited resources for new technology adoptio (mobile) Pressing need for solutions to run business profitable SMB owners Concern Barometer
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- 20. Express Pickup ata Glance # of Individuals # of Businesses Y0 Y1 Y2 Y3 500 Customer Acquisiton Goals Financial Projections, USD mln. Human Resources Product Development - Curbside - Customer profile - GPS tracking - Timing estimates Hire 13 FTE: 3 software engineers, 2 marketing, 7 sales Add 9 FTE: 5 sales, 2 software engineers, 1 marketing, Operating Plan Add 18 FTE: sales - Service rankings - Swtich from integration to platform model 1500 3000 100,000 300,000 600,000 Cash Flow Projections, USD mln. Seed - 0.5 mln. Series A - 3.0 mln. 0.2 0.3 0.5 2.8
- 21. Archetype on-boarding Single male youngworking professionals Working mothers with 0-5 y.o. children Broad population Fast Casual Casual Dining Convenien ce stores Other verticals Business Development Priorities Vertical on-boarding Customer-focused development Show curbside Map customers Add images and search Service ratings 1 2 3 4 Checklist for sales force 2+ employees in store simultaneously Curbside parking is available Personnel is tech savvy Owner/personnel can short-list 10-15 top products Average check is $10 or above
- 22. Test Market Pre- launch Roll Out GrowExpand Mature 5CriticalMetrics Develop Grow Stabilize Performance Metrics Parking failure rate decline from 10% to 2% Experiment success rate – from 70% to 95% Conversion (download -> purchase) reduced from 60% to 95% CAC: Individuals from $17 to$7 Businesses - from $220 to $120 Customer base growth: from 500 to 3000 businesses, from 100,000 to 600,000 inviduals LTV growth from $60 to $120 Churn rate decline from 40% to 33% Marketing, from 35% to 25% of revenue GM growth from 70% to 85% Field experiments done: 200 Service ranking – avg. 4 out of 5 In-app purchase : avg. 1.3/mo. Agreed commission individ.: 3% min. Average check size: $12 or above Agreed commission businesses: 5% Customer growth rate – 10%/year SG&A, 5% of revenue Market share – 15%