hi… I am Rotimi, we recently launched a crowdsourced on-demand delivery
& errand running platform called DropBuddies which typically
involves the use of our web/mobile app to accept delivery & errand
requests from users and also a mobile app to communicate these requests
to our dropbuddies who facilitate these requests. Users can then follow
their orders on a map almost in real time…Forgot your phone,make up kit,laptop or do you need to outsource your deliveries as an SME. Our dropbuddies also help you with any interesting errand request…Think purchasing stuff for you, helping you purchase your meds…whatever you need really.!! Our Url is www.dropbuddies.com and the 1st public version of our app is available for download on the android play store. Attached are snapshots of our mobile app
@Toyin_Solanke, you picked an interesting space. One that is leveraging on demand for convenience and the ubiquity of GPS-enabled mobile tech. There are few factors you need to consider as you validate your core hypotheses
Network: on-demand delivery is only viable within densely populated hyperlocal urban area where you can build a 2-sided marketplace of demand (time-poor, cash rich internet savvy people, preferably millennials) and supply (couriers, cash poor time rich).
Unit economics: this is where the water meets the garri! You need to proof that your unit economics is positive as quickly as possible. Simply put, you should make gross profit per each delivery, and you should proof that you can generate enough frequent transactions to breakeven on the cost of acquiring your customer within a short time (LTV:CAC ratio). This is the graveyard of many on-demand startups. Be clear about your hypotheses around this, and set out to validate them as quickly as possible.
Hyperlocality: dont be tempted to widen your delivery radius because people are asking for it. Except you are paying very very low wages to your couriers, a wide delivery radius will mess up your unit economics and your delivery efficiency. The shorter the travel time, the better for you. Although this will be dependent on where and how you are generating your demand.
The questions I’ll ask are;
are there enough consumer demand for on-demand deliveries?
how big is this market?
where can I build hyperlocal delivery network of demand and supply within short delivery radius
First of all I don’t think you’ve launched any platform yet. You download page has no downloadable content. And sincerely I think a problem like this is better tested on web & mobile web before native.
Now, I think you have a great ‘proposition’ but I think what’s more important is how you solve the problem, because for me the way a problem is solved says more about you than the problem you’re trying to solve, no matter how big or small a problem might be.
Back in college, in Ado, I’d ask my parent so send me some documents through the bus driver going fron I.B to Ado. The driver charges the same amount as he’d charge an individual going that route. And I’d get the items Within 24hrs. Time/money saved, the driver made some extra cash. Win/win. So yea, the problem exists, and so does the solution. Is your proposed solution better? I wouldn’t know.
One thing I’m sure of though, is the problem of trust. How do I trust your ‘drop buddie’ not run away or lose my vital documents? Or my wedding ring? Or my mobile phone?
That’s not the only problem I’m sure, but I think it’s the most important. If you can solve that, Goodluck.
Meanwhile an app like yours already exists, it’s called Roadie. I have the app on my phone but I’ve never used it because I don’t have a car. If I did, I wouldn’t mind running a few errands and making some cash to get me some chicken sandwich.
Thanks for the reply. As for viability i know for one that lots of people require pick ups and also would love to have people run their errands for them. Its not just pure hypothesis as we have been getting orders and commendations from people about the service and the product offering. The feedback has been great.However thanks for your comment. We really do appreciate it
I think we might need this service soon as we are coming up with something soon …we might be needing courier services like this… @Toyin_Solanke … and I tried opening your site, its not opening…giving No data received…
Thanks alot for the interesting reply…Let me get right to answering your questions.
I think there are lots of people who require lots of things in a very swift manner. Having operated for about a month and interacting with a good number of potential clients. The need for this sort of platform
I think its very huge. I for one wish i could outsource alot of the things i do on a day to day basis.Just yesterday a woman forgot her mobile phone somewhere in ikoyi and unfortunately was at VGC at that point in time. The service worked well for her. I think we all goof atimes and forget one important thing or the other. Also deliveries that have been outsourced to us by a number of small businesses are another interesting space.Within the last month our network of dropbuddies have done a lot of interesting errands,dropped off some interesting items and also helped a number of small businesses who have benefited from the service,so yes i think there is a good market.
Well currently we have not so many DropBuddies but have a good number of them who handle deliveries and errand runs around a good number of areas in Lagos. We also have a number of full time dispatch riders who also take on these deliveries when expectations are high and we are overwhelmed with requests.
A bulk of the business we’ve done over the last month have been from repeat customers. The fact that they dont have to leave their houses to do alot of things they ordinarily would have had to do is very gratifying i guess.
Thank you so much Dotun for the response. It is highly appreciated
Hi Yomi. The site is working fine here. It’s probably your mobile phones reception. Thanks for considering us as delivery partners for your new startup. You can send us a mail to partner@dropbuddies.com or inbox me here on radar. Thanks alot yomi
Thank you for the reply. Part of the reasons why i decided to post on radar is for good feedback from you all. Thanks for the comment on the download page issue. We have started fixing it as i type this. However if you do a search for DropBuddies on Google Play store im sure you would be able to download the app.
As for the question about the DropBuddies. We do verify everyone that comes in as a potential DropBuddy. If you visit our webpage you would see all the requirements you have to fulfil before becoming our courier.
You fill a very detailed online form
2.If you are selected we invite you for an interview where you are asked to provide your Valid Id,proof of address and guarantor.
3.We then do some extra verification before they are allowed to fully accept orders and operate as DropBuddies
Its quite a process. Just to give you an idea, we had about 500 applicants as at September and have screened them down to just 20. So there are a lot of things involved when it comes to verifying these people.
BTW Roadie is a cool app. Ludacris invested in it and i guess they are doing fine.!
Thanks alot for the comment. We really do appreciate the feedback
I wasn’t looking for answers to those questions by the way. I highlighted them as the questions Ill be asking/exploring if I were you in my quest for proving product/market fit. They are few lessons I’ve learnt whilst running meals.co.uk (an on-demand food delivery platform for highend restaurants). We’ve also been involved with Jinn app, an on-demand delivery service in London, which is similar to US-based Postmate.
I really appreciate that the opportunities and challenges in Nigeria will be totally different. You may have other hypotheses around your business model that you want to validate. It seems you have good understanding of the demand/supply dynamics of the space, If I were you, I’ll set out lots of experiments to prove out my key hypotheses as much as possible.
It’s a very interesting space, and could be exciting. I know max.ng are in the space as well, and they are doing a great job.
Akinara, If you looked at my questions closely, you will realize that these are fundamental questions any business has to answer. Its a chance for Toyin Solanke to communicate the value of the service which he has tried to do.
We all builds products and services with the belief and thinking that people want it. Even if you are disrupting a ‘business space’ with your products, you still believe that it is essentially what people need. The need has to be established first before building anything and this isn’t about running questionnaires.
Toyin Solanke, Can i know more about the kind of errands and deliveries you are getting? I am thinking this works best for deliveries (like a courier service) rather than picking up a forgotten phone or make up kit. What has been your experience with this?
Well we have gotten requests to buy items from funny places such as Balogun Market, we also recently helped people pickup vvip tags for “the experience” which held last week at tbs , yesterday alone we helped pickup 2 mobile phones and also today we helped someone transport a laptop from yaba to magodo and also deliveries of photobooks for 2 photographers. It has been a very interesting process so far and quite frankly a very enlightening one. Since we rely on a crowdsourced network alot of these people find these errands quite intriguing as they get to meet new people and earn decent money helping us do the runs.
I am happy someone has already replied this because I was going to go on a mini-rant. Great sometimes ideas come out of unexpected places and how many great startups have emerged from pivots??? We complain about not having world class startups, then beat down any quirky/unconventional ideas. We can’t have it both ways (there goes the mini-rant). I would definitely use this. I actually currently NEED this. But even if I didn’t, or nobody did, there has to be a place for experimenting and trial & error.
TomiWalker, i think you are missing my point.* If you looked at my questions closely, you will realize that these are fundamental questions any business has to answer.*
Secondly, i havent tried beating down any quirky/unconventional ideas. I have raised cogent questions that HAVE to be answered by anyone who is looking build a profitable and scalable business.
Thirdly, looking at my words, i never said the idea wasn’t good or okay. I raised questions on viability (profitability and scalability). Many start ups fail because of this. They have not been able to commercialize their ideas/businesses to translate to the right numbers. How would dropbuddies make sure that 5 years from now, they will still be around?
Fourthly, i am surprised at the idea or what is playing out here where it seems we are expecting that we release an idea or make a statement and everyone is supposed to like it. I havent said i dont like it nor have i implied that there is no place for experimentation of an idea. This is the perfect way to make something better (to look at critiques and make it better)
Ideas are meant to be critiqued. Business models are meant to be critiqued to make them better. Critiquing an idea doesnt even imply, suggest or make the person who gave the idea to abandon it. Some Successful people and businesses today have had their ideas rejected at first. And i am quite surprised that we are questioning the critiquing of an idea.
I am however happy that Toyin Solanke did not think this way. Because great business persons don’t think this way. They observe different perspectives and see how this impacts their business model.
Only I have no time to check these comments here but then, if you guys can make an Enterprise Version, these delivery/logistic companies will definitely way in.
UrbanNinja App provides a similar solution I believe and these Rocket Internet guys uses that App.
