- Market validation
- business model
- Founding team
According to a recent study, around 30% of people order food delivery at least once a week. Despite growing demand, the delivery industry is still plagued with problems, with food often arriving late, cold or damaged. This not only negatively impacts the customer experience, but also damages the reputation of the restaurant and the delivery service.
Let us tell you a story about John. John had a busy day at work and decided to order his favorite food from a nearby restaurant using a delivery service. He was delighted to relax and enjoy his meal, but unfortunately the food arrived cold, soggy and almost inedible. John was extremely disappointed and frustrated with the delivery service, and decided he would not order from this restaurant again.
This issue not only affects John, but thousands of other customers every day. It becomes more difficult to keep these loyal customers if they do not receive reliable and satisfactory delivery service from popular food delivery apps.
There are various reasons why this problem exists. First, there is a lack of reliable and efficient transport infrastructure, which can lead to delays in deliveries. Second, there is a shortage of experienced and qualified delivery drivers, which can also lead to late deliveries and customer dissatisfaction.
Additionally, some of the current industry-implemented solutions, such as automatic algorithms for routing and pacing, do not provide the necessary real-time accuracy and precision. This results in missed delivery windows and food arriving too early or too late.
- The problem is the late, cold and damaged arrival of food when ordered online for delivery.
- The issue is highly relevant given the rise of food delivery services and the growing number of people ordering food delivery.
- Current solutions implemented by the industry, such as algorithms for routing and pacing, have not proven to be accurate in real time.
- The problem is caused by a lack of reliable transport infrastructure, as well as a shortage of experienced and qualified drivers.
Solution / value proposition
Our delivery service aims to solve the problem of grocery shopping which is time-consuming and inconvenient for busy individuals and families. Our solution is a mobile app that allows customers to purchase groceries online and have them delivered to their doorstep, with no minimum order requirement.
What sets our service apart is our commitment to providing high quality, fresh, locally sourced produce. We work directly with local farmers and vendors to ensure our customers get the best quality produce, meat and dairy available.
Our app allows customers to customize their delivery preferences, such as delivery time, special requests, and recurring orders. This not only saves time, but also provides flexibility for customers who have changing schedules.
Customers will feel relieved and satisfied after using our delivery service. They will no longer have to deal with the hassle of grocery shopping, finding parking spots and maneuvering through crowded aisles. Instead, they can sit back, relax, and let our delivery team do the work.
Our solution is amazing because it provides an easy, convenient and efficient way to buy groceries while supporting local farmers and vendors. Unlike other delivery services, we prioritize high quality products, customer satisfaction and flexible delivery options.
- We use a mobile app that makes shopping easy and convenient
- We focus on providing the best quality locally sourced products
- We offer flexible delivery options to accommodate varying customer schedules
- We provide hassle-free delivery, saving customers time and energy
- We support local farmers and vendors, contributing to the local community
Our research indicates that the delivery services market has a Tam of 0 billion, and it’s growing rapidly. The reason for this growth is twofold: the increase in e-commerce and the growing demand for convenience. We expect the market size to continue to grow over the next few years, creating a prime opportunity for our delivery service.
In terms of specifics, we have identified that our addressed market is mainly made up of small and medium-sized businesses that do not have the resources to use their own delivery team. Additionally, there is a growing trend of people ordering groceries and other products for home delivery, which provides another avenue for our services. On average, each business or individual spends approximately 0 per month on delivery services, providing a significant revenue opportunity for our business.
Starting a delivery service in today’s market is a strategically sound decision for several reasons. First, there is a significant gap in the market, with many underserved consumers and businesses needing a reliable delivery service that can provide quality service and convenience. Second, the rise of e-commerce has pushed delivery services to become more efficient and accessible, creating an optimal environment for a new player to enter the market.
The delivery services market is currently experiencing above average growth rates which is only expected to continue in the coming years. The demand for faster and more reliable delivery services is also increasing, which we believe provides significant opportunities for our delivery service. By providing quality service and providing innovative solutions, we expect to become a leader in this growth market.
Based on our research and market analysis, customers are willing to pay a premium for timely and efficient delivery services. Although prices may vary by location, on average customers are willing to pay an additional 10-20% for same-day or expedited deliveries. We plan to use this information to guide our pricing strategy, offering competitive rates that will allow us to remain profitable while providing valuable service to our customers.
Our business model is a subscription-based delivery service that delivers fresh, healthy meals right to our customers’ doorsteps. Our goal is to provide our customers with healthy and convenient meal options that fit their busy lifestyles. The service includes breakfast, lunch and dinner options, as well as snacks and smoothies.
Revenue Generation: We generate revenue through subscription plans that provide customers with a range of meal options to choose from. Each plan is tailored to specific dietary needs such as vegan, gluten-free, high protein, and low carb. Customers can choose between weekly or monthly subscription plans that automatically renew unless canceled before the next delivery cycle.
Products: Our core product is the meal delivery service which includes a variety of breakfast, lunch and dinner options as well as snacks and smoothies. We understand that different people have different food preferences and we strive to cater to everyone with customizable options in the subscription plan. We also offer add-ons such as extra servings and specialty items for an additional fee.
Revenue Projection: According to market research, the meal kit and delivery services industry is expected to reach a valuation of .63 billion by 2027. Our conservative first-year revenue projection is 500 000 and we expect to reach 5 million dollars in revenue by the third year. Our revenue should increase as we expand our services and reach a wider audience.
- Weekly subscription plan: /week
- Monthly subscription plan: 0/month
- Add-ons: to
We plan to implement a referral program that offers current customers a discount on their next meal delivery when they refer a friend. We also plan to partner with local gyms, wellness centers and health-related businesses to offer discounts on membership plans to their customers.
Our main competitors in the delivery services market include Uber eats, Doordash, Grubhub, Postmates , and Instacart . These companies have established a strong brand presence and gained significant market share in the industry.
Uber eats and Doordash Offer food delivery services to restaurants and have a user-friendly app interface. However, they have limited options in terms of grocery delivery and retail.
Grubhub is known for its wide range of restaurant options and seamless ordering process. However, they don’t offer as many delivery options for other types of goods.
Postmates offers delivery services for everything from food to retail and grocery items. However, their prices may be higher than competitors, which could deter cost-conscious customers.
Instacart is a grocery and retail delivery service that offers an intuitive app interface and fast delivery times. However, their services are limited to certain geographic regions.
What sets us apart from our competitors is our focus on sustainability, local sourcing and personalized customer service . We prioritize working with local businesses and farmers to ensure our deliveries are environmentally friendly and support the community. Our customers also have the option to choose their preferred delivery time and method, making the experience more tailored to their needs.
Our Unique Selling Points (USPS) include:
- Eco-friendly and sustainable delivery options
- Support for local businesses and farmers
- Flexible delivery times
- Competitive pricing for food and retail/grocery items
- Personalized customer service and attention to detail
In terms of customer retention, our biggest threat comes from established competitors offering similar services. However, we believe that our sustainability initiatives, emphasis on local sourcing and personalized customer service will differentiate us from these competitors and ultimately drive customer loyalty.
Our founding delivery service team is made up of seasoned professionals with the expertise and experience to make this business a huge success. We believe in the collective abilities of our team to meet the challenges that come with running a delivery service business, and we are committed to making this business a socially responsible and profitable business for ourselves and our investors.
Our team is led by John Smith , who has an MBA from Stanford University and over a decade of experience in the logistics industry. He has extensive experience in managing supply chain operations, and he has an extensive network of industry contacts.
Jane Lee is our logistics expert, and she has a background in transportation and logistics management. Previously, she worked for a large logistics company, where she managed a team of dispatchers and drivers. She holds a bachelor’s degree in business administration
David Zhang is our Chief Technology Officer, with over a decade of experience in software development and engineering. His programming expertise and experience in designing scalable systems will be instrumental in streamlining our business operations and ensuring the seamless delivery of our services.
We also have Mary Johnson on our team, who is experienced in marketing and advertising. She has worked with various startups that cater to the digital space, helping them gain the market traction they need.
Finally, our team would not be complete without Daniel Wu , who is our financial analyst. He has an MBA from Harvard University with an emphasis on finance and accounting. He previously worked for a major investment bank, providing financial advice and guidance to high-end clients.
Together, our team has a shared passion for logistics, and we are committed to bringing our expertise, experience and innovative perspective to creating a delivery service that is both environmentally friendly and socially responsible. We believe that our collective skills complement each other, and we have the drive and ambition to push beyond our limits and build the delivery service into a top-tier delivery provider.
We are convinced that we are the right people for the challenge of bringing a new level of quality services to our customers in a growing market that is looking for more sustainable alternatives.
Traction / Milestones
Our delivery service has seen significant growth and progress since its launch. In the last quarter, we gained 50% more customers and our orders increased by 70%. This growth shows that our business model is effective and there is strong demand for our services in the market.
One of the critical drivers of our growth is our customer satisfaction metrics. We regularly measure our Net Promoter Score (NPS), and it has always been in the 80-90 range, demonstrating that our customers love our product. Additionally, our customer retention rate is at a peak of 90%.
We’ve also made a product market fit, as shown by our user engagement metrics. Our daily active users (DAU) increased by 60% and we saw a 50% increase in average order value. This growth in user engagement shows that we are providing value to our customers and have found a problem to solve.
Furthermore, our market research has shown that there is massive growth potential in the delivery services market. The food delivery market alone is expected to become a 0 billion industry by 2025. We have identified a unique niche market that we specifically curate, and our growth potential is substantial.
To support our growth, we focused on key metrics, such as customer acquisition cost (CAC) and customer lifetime value (CLTV). Our CAC decreased by 20%, and our CLTV increased by 30%, demonstrating our ability to execute and save money and time.
Our milestones include expanding to two additional cities over the next six months, launching a loyalty program to increase customer retention, and exploring partnerships with restaurants and grocery stores. These milestones align with our mission to become the leading delivery service in our niche market.
- 50% increase in customers
- 70% increase in orders
- NPS score 80-90
- 90% retention rate
- 60% increase in dau
- 50% increase in average order value
- 10% decrease in CAC
- 30% increase in CLTV
- Expansion to two additional cities over the next six months
- Launch of a loyalty program
- Explore partnerships with restaurants and grocery stores
Our company, Delivery Service, is seeking seed funding of million to propel our product development and release a beta. We believe that with this investment, we can successfully meet the challenges of the delivery industry and become a dominant player in the market.
The funds we raise will mainly be used to improve our product and grow our team. About 50% of the funding will be allocated to product development to improve our delivery algorithms, improve our user interface and add new features to our platform.
The remaining 50% will be used to scale our operations by hiring a team of professionals to help with customer support, marketing and other business development activities.
Our goal with this investment is not only to improve the efficiency and quality of our delivery service, but also to expand our reach to more customers around the world.
With the new funding in place, we aim to achieve the following key milestones:
- Full development of our product and release a beta within the next six months.
- Enroll at least 100 new business customers in the first year of product launch.
- Expand our operations to new cities in the United States and abroad.
- Generate consistent growth in revenue and profit margins over the next two years.
We believe that with the right funding, the expertise of our team and the growing demand for more efficient delivery services, the delivery service can become a successful and sustainable business in the industry.