33. Your start
INTRO STARTING GROWING TAKEAWAY
What is particularly transformative about the
service?
Why now?
Why hasn’t this been done already?
What could the service ultimately become and how
does that change the market opportunity?
34. Your market
INTRO STARTING GROWING TAKEAWAY
By tackling a particular problem in a more narrowly
defined market, a start-up can become the new
standard in that market.
10% online, 90% offline
Create a consistent experience from on-line to off-line
It’s all about tech; actually lots of CS / Ops offline work
More = Better; wrong; Less Drivers, More training
Consumer > Business; sometimes
Product Features and Web App
Concept
Do you set the price?
Do you let the market do it?
What's you quality control over final price?
What we do
We set the price
We align our prices and twist them a little based on the market / competition
Concept
What is your level of implication?
Who do you blame in case of problem?
Example: Uber, Airbnb, eBay
What we do
- People will blame us before the drivers
High quality control
Background check for drivers
Verification
Training
We insure users get a vehicle: implies operations in this process
Concept
What product(s) serve the best your customers?
Do I need to be cross platform?
Depends on target and clients expectations
Started as consumer, then went SME, now larger companies
What we do
Started with an app
Extended to desktop and tablet for multipurpose:
Ex tablet: IKEA booth
Ex desktop: Corporate orders
Concept
Expectation higher on business side rather than customer.
Customer retention harder, cost a lot of marketing
Business demand is a longer process, more sustainable long term
Network Effect for B2C target
What we do
There’s no rule, adapt to market evolution and demand
Started 100% consumer oriented, them moved to business and professional demand
Concept
Which side to grow first and why
How to grow at same time
What we do
Which side is harder to grow first?
We build supply first
We balance supply and demand. Tactics
What we do
Subsidies. Driving supply
Marketing: SEM, off-line. Driving demand
Surge pricing (Uber style), driving supply where demand ask for focus
Aggregated demand & offer (vs. call center)
What we do
Fulfillment rate: set high objectives (ex: minimum for us: 90%)
Retention on both sides: based on quality, make sure the people you provided with your service will return.
Concept
Traditional: single user, distribution center, sorting center, no route optimization
What we do
Last mile represents average 28%
Last mile players fragmented market opportunity
Gogovan: compete on quality
Concept
Traditional: single user, distribution center, sorting center, no route optimization
What we do
- Not assets
- Real time pooling
- Network effect thanks to tech
Concept
Value is being lost in traditional process
Drivers lose the opportunity to use their transportation capacity
Users face supply problem
What we do
Route optimization
On-demand, gathering huge data base
Concept:
Where do I take a cut?
What we do:
Driving revenue from supply or demand?
Amazon inventory, commissions / cut, advertising, insurance for high value goods, partnerships
Concept
- Breadth: offering a wide range of products under 1 roof, cost more in HR / IT / OPS ressources
- Depth: specialized in a service offer, 1 specific product or pricing, 1 geographic presence (single marketing mix)
What we do
Both, depending on geographic expansion
SEA
Going deep into each market, focusing on cities growth for each country
Product: tailor building product for different projects (Google in HK, McDonald in SG)
Developing a targeted marketing strategy
Main objective: long term retention strategy, stickiness
CHINA
Expansion key strategy
Develop as fast as possible as many cities as we can
Heavy sales (off-line) approach
Concept
- Speed- Execution- Replication
- Localization
What we do
- Speed: 2 years and 12 cities
- Execution: think fast, act fast. Example:- Replication: standardize without losing flexibility and creativity
- Localization: standardization can go against localization. Build strong foundation to make fine-tuning and small changes easy.
Concept:
Cash flow: anticipate cash burn when scaling.
Network effect: what effect one user of you service has on the value of your service to other people?
Critical mass: estimate the number of users / revenue generated that will allow you to scale, grow and develop your product.
What we do
- Customer acquisition cost
Cash flow: burn cash when scaling
Network effect: we rely on the value we bring up to the market, by shortcutting the traditional way. We believe respectively both supply and demand can increase their revenues and find flexibility and simplicity with our platform
Critical mass: KPI? Number of orders? FF rate?
Concept
Cohort
Life time value
Profitability
What we do
Cohort WHY
The cohort provides a grid for us to view retention on both the demand and supply sides. We are able to see and track the lifetime values and usages of all of our users, including business users.
The cohort presents an easy way to view this information, showing both percentages and absolute numbers.
Currently we update the cohort every month; however, we may eventually create a weekly cohort as our users become more “sticky”.
Cohort WHAT
We use the cohort to analyze how well we retain our users and drivers.
We can also see the percentages of drivers who become verified in a month and also take an order.
This allows us to see if we are doing a good job with our driver training and recruitment.
On the demand side, we can see the user retention and see if our new and existing users are staying with our platform overtime.
In the event that there is a fall-off, we can easily follow up with the users in that cohort and see what happened.
Premature scaling can kill a company
Who is your core market and what do they value
Consumer
Speed
Access
Engaging
Business
Robustness
Service Level
Reliability
Cost
Shift in Strategy (Chart showing Breakdown of Consumer vs. Bus Trend) (image)
Old Graphics vs. New (app or marketing materials)
Single vs. Multi Product
Image of a foundation
Areas process is very helpful
HR
Finance
Tech
If you are tech, use tech for as many functions as possible (many great 3rd party services)
How to build a scalable platform while remaining relevant at a local level
Considerations
Language, features, payment, registration, marketing
Visual- China vs. SEA (fragmented countries)
2 tech teams; overall team size and sales strategy
Keep similar wherever possible, small changes
Build things that can be applied universally first
Pick markets that are more similar (HK was very different, made it difficult for us)
-market size
Advantages / challenges
Your team’s capabilities
Your understanding of tech
Capital available
If you have a good model, it will be competitive
When to invest in existing markets and when to expand
No right answer
Everyone has their own opinion particularly investors
Easy Taxi vs Grab Taxi (Breadth vs Depth)
Easier to do breadth in China as city by differences are smaller; tech platform is more universal