Ah! Ventures - Rough

Idea, Business model and USP:

Foodos is a hyperlocal logistics startup which enables the customers to order simultaneously from 

multiple restaurants as a part of a single order. For instance, a customer can choose to place a 

combined order from Dominoes, ZK's and Naturals Icecream at one go, make one payment, and get 

all the items delivered together.The individual customer or a group of customers can cater to their 

diverse tastes without the hassles  involved in placing multiple orders, making multiple payments 

and getting unsynchronized deliveries. 

Foodos has two revenue models: 

F1: The B2C arm of the business model where we charge the restaurants 15-22% of the bill amount    

for relaying and delivering the orders. 

F2: The B2B arm of the business model where we charge the restaurants 10-15% of the bill amount 

for providing them delivery as a service, thus, converting their fixed cost of delivery executives into 

the variable cost of per order commission. 

Unique Selling Point: 

1) Multiple Restaurants, One Delivery:  Imagine the possibility of not settling with what you do not 

want, this is the biggest USP of Foodos. We at Foodos believe that a customer should never have to 

compromise on what he craves for. “Foodos Curate”, our android application,helps the customers 

decide on what to eat from a vast collection of well curated and categorised combos. 

Growth / traction achieved till date in numbers: In March 2015, we launched our prototype and reached 40 orders/day in two months of operations. The Retention Rate ranges in 60-70%, while the Cost to Acquire a Customer ranges in INR 30-40. The average Life Time Value of a cohort lies between INR 60-100. We had 2 full-time and 2 part-time delivery executives working for us.

Team profile (with LinkedIn links) and team member expertise 1) Aayush Sharma: Ex-Consultant @ Persistence Market Research

Co-founder @ bawaindori.in- a breakfast and evening snacks chain

Handled Operation @ Purnajaivik

Linkedin: https://in.linkedin.com/pub/aayush-sharma/101/25a/691   

2) Shubham Sharma: Ex- Area Operation Manager @ Swiggy

                            Co-founder @ bawaindori.in- a breakfast and evening snacks chain

3) Tejas Inamdar: Ex-Senior Consultant @GSLAB

Developed Atklique

High level projections, Future Strategy and Expansion Plans: At the end of one year of operations, Foodos is projected to be clocking north of 3000 orders/day and doing 42lac gmv/week, at the growth rate of 7% WoW.

We want to place Foodos in the market as an innovative company i.e. known for its choice and service quality. After acquiring a significant amount of traction we plan to roll-out our advertising model. For other hyperlocal companies looking to outsource their deliveries in peak sessions to contractors with well oiled logistics, Foodos would be a probable contractor. After designing a prominent number of SOPs we plan to diversify into other domains of the industry.

In 6-8 months of operation we plan to be the market leader in Pune and in one year of operation we plan to have a presence in three cities. In two year of operation we plan to operate in six major cities. After 3 years of operation we plan to capture a significant market share in 10 cities doing 25000 order/day.

Funds Raising and Traction:

We will be requiring 60-80 lacs INR as a working capital. This will provide us a runway of about 5-6 months. We plan to do about 1900 orders/day at the end of 6 months.

Questions for VCs

These are the questions we need to be prepared about for funding:

1) You are picking up from three restaurants. One has a prep time of 5 minutes, while the other has the prep time of 30 minutes. What do you do?

A:

2) What is your cancellation policy?
A:

3) What is your social media strategy? What is your response time for queries on social media?
A:

4) How are you going to make profit out of it?
A:  Sir we have two major USPs that other startups do not have:

         1) Cart Value: The make or break for any startup is the average cart value. While the other startups are actually moving towards decrement in the ACV, we are existentially increasing it, by involving more people to order together.

         2) How many orders a DE is doing in a day: This is fundamentally very important

4) Why did you stop Kothrud?
We needed to do massive rework. so we had to take a step back and reflect on our learnings. It was basically a small venture to test the market fit. it was an ideal time to stop as the prototype as our target market had already left the area for their hometown.

Operations Plan #03 - DE Salary Structure and Operational Hours

Fixed Salary: 8500/-

Payment: for 1st-15th date, payment will be done on 30 days.

Weekoff: 1.5 days. (one full day, one half day)
                                 if Half day, it will be mandatory to do one peak shift.

Incentive: 2500/- (Approximated)

26 days present: 500

Rest of the incentives to be distributed into no. of orders they do.

10 orders a day - 100/-     (medium probability - medium incentive)
90 orders a week - 500/-   (bad probablity - high incentive)
250 orders a month - 1000/-   (good probability - low incentive)


Operational Hours: 11AM - 11PM
Peak Distribution:  11am - 3pm : Lunch Peak
                                3pm - 7pm : Non Peak
                                7pm - 11pm : Dinner Peak

Day break would be given between 4 to 6 pm

Operations plan #2 - Order cycle, App requirements

Life cycle of the order:

Type: F1
Restaurants involved: 3
Bill Amount: 300

Cash to be paid: 180

As soon as the user places an order, it is reflected in the PE app and the Dashboard. The PE app should tell him the following details before confirming: 

Order Type: F1
Restaurants Involved: 3
"Marrakesh"
"Chutney Sauce Murabba"                  } Restaurant names
"Happy Singh Da Kitchen"

Bill Amount: 300                (combined bill amount of all the restaurants)
Cash to be paid: 180           (combined cash to be paid to all the restaurants)

There will be a confirm button beneath all the details. There will also be a "order Placing Timeline" at the top. 

As soon as he confirms the order, he will see the individual details for every restaurant. For ex:

Restaurant: Marrakesh           (Restaurant Location/Map)
Items: "Dal Makhni"

Bill Amount: 100
Cash to be paid: 0 (Postpaid)

|There will be a "placed" and "Pickedup" button at every restaurant page|

After pressing the three pickedup buttons, he will see a drop down list of all the DEs with the "free" status, prioritized in a way such that the DE who just completed the delivery last would appear last.

After selecting the DE, He will press "Dispatched" 

As soon as he presses "Dispatched", the order will appear in the app of the DE assigned. 

He will see the following details: 

Restaurant Names:
Items:
Bill amount: 300
Cash to collect from the customer: 225 (Assuming 75 rs discount)

Customer Details: Name:
                            Address:
                            Phone Number:

Customer Map!

                         
|Both PE and DE app should have a button to call the helpline|

After the order is delivered, he will press "Delivered"

So to sum up:

PE presses these buttons:
                Confirmed
                Pickedup (individual pickup buttons for every restaurant involved)
                 Dispatched

DE presses these buttons:
                 Confirmed
                 Delivered

For every button, there will be a mural popup where he would confirm the button press, thereby reducing the risk of pressing the button by mistake.

Operations plan #1 - Terminologies, Business Model, Restaurant types

Operational plan #1

1) Cluster: A cluster is a group of restaurants within a distance of 1 kilometer, carefully chosen by the expansion team. A user will be able to order from more than one restaurants in one order, but the restaurants will have to lie in the same cluster. This will enable Foodos to serve the users faster while retaining the capability of multiple retaurant delivery.

2) Picking Executive (PE): A PE is an executive who will pick the items from the restaurants involved in an order. His sole purpose is going to pick the items, cross-check the items, put the branding materials and dispatch it to the Delivery Executive (DE) standing at the cluster point. He will have the ability to pick and constitute 2-3 orders at one time, thereby reducing the workforce needed at the peak time. All his activities will be tracked through the PE app and the status will reflect in the "activity dashboard".

3) Delivery Executive (DE): A DE is an executive who will do the last mile delivery. His sole purpose is to receive the order from PE, collect the change if required in the case of a COD order, go deliver it to the customer, come back to the cluster point and submit the cash to the PE. A DE will be able to deliver 2-3 orders in the same round, if there be a need. All his activities will be tracked through the DE app and the status will reflect in the "activity dashboard".

4) Cluster Point (CP): A cluster point is a geographic location conveniently decided to be near the middle of all the restaurants in that specific cluster. The DEs are going to wait around this point when they are not fulfilling any order. The PE will come to this point and assign the the order(s) that he has picked up.

Revenue/Business Model:

FOODOS1: This is the primary revenue model of Foodos. This is a B2C model. In this model, we have a specific kind of tie-ups with the restaurants where we bring them the customers through our mobile and web platforms and provide them with the logistic solution to deliver the following orders. This helps them in two ways:
          1) In this competitive landscape where restaurants come and go really fast, we are providing them a solution to reach more customers and get known. This also helps them retain the existing customers.
          2) The last mile delivery has been a hassle for a majority of restaurants. Except Dominoes, Faasos and a couple of other players, restaurants do not have the capital or resources to infuse in technology to maintain logistics. Hence, their delivery team do not work efficiently and this adds to their cost. Foodos intends to convert their fixed cost into variable cost.

         We charge the restaurants a commission of 15-22% of the bill amount of every order that we relay and deliver. We do not charge customers anything.

FOODOS2: This is the secondary model of Foodos. This is a B2B model where we deliver any order that restaurants get through other relaying channels like FoodPanda, TinyOwl or on call. For a majority of QSRs and fine-dine restaurants, delivering to the customers is more challenging than finding the customers. Hence with this model, they can outsource their deliveries to us.
 
         We charge the restaurants a commission about 1 0-12% of the bill amount of every order that we deliver. We do not charge customers anything.


Restaurant Types:

1) Postpaid:
     these are the restaurants where the PE does not pay for the order while collecting the order. The payment for the week is done at the end of the week, after deducting our commission. In reference to the PE app, these values should be visible to him:
                         Bill Amount : Rs. 100
                         To pay "the restaurant" : 0

2) Prepaid:
     These are the restaurants where the PE pays for the order, whatever is left after deducting our commission. Say, if the commission is 20%, this is what PE sees in the app:
                        Bill Amount: Rs. 100
                       To pay "the restaurant": 80

3) Advance:
      These are the restaurants where the PE pays for the order, the whole bill amount. Then, at the end of the week, we would go to the restaurant and collect our  commission of the week. Say if the commission is 20%, this is what PE sees in the app:
                     Bill Amount: Rs. 100
                     To pay "the restaurant": Rs. 100

Marketing plan

1) your target market
2) how to attain them
3) How to retain them

Your Target Market:

The Working Bachelors:
They are the people in the age group of 22-29 who work in companies and industries. They often have their lunch in the companies itself. Our target user is an average working bachelor who orders food more than twice a week. They either order through restaurant aggregators like FoodPanda and Swiggy, or from the QSD (Quick Service Delivery) restaurants like from faasos and box8. They are majorly ordering lunch. They majorly favor service over discounts.
           
The DINK families:
The double income no kids families who come home after a day of work and are not convenient with cooking the food. These users come into the age group of 26-33 Years and have good disposable income. They are majorly ordering dinner with good order value. They might have maids or cooks employed, or may dine out and come home, but about twice or thrice a week, they are going to order food from restaurants because it is more convenient than anything else. They majorly favor service over discounts.

The College going crowd:
They are the students going to universities and colleges and come in the age group of 17-23. They are by far the most confused crowd about deciding what to eat. They often eat in the group of 2-3 people, with the people they live together in flats of hostels. They have high repeat rates, but majorly favor discounts over service.


Two Kinds Of Cases:

When a group of people are ordering food:

When a group of people, whether it be Colleagues, friends or family, is eating together as they often do, there is a huge problem they face. To settle on a restaurant that fits the cravings of everybody, so that they can order together. Or, they need to place separate orders for every restaurant involved, make separate payments and get synchronized deliveries at their doors.
           Foodos could be a huge problem solver here, as they place one order for as many restaurants as they want, make one payment, and get it all delivered together at the doorstep in a reasonable time.
This will constitute to about 95% of the orders we receive through the platforms.


When one person is eating alone:

When one person is ordering food alone, he will get fundamentally more choices than any other service. He could checkout really fast through our "foodos Curate" Application, where combos are pre-made for faster checkout.
          This type is going to constitute 5% of our orders, but are important nevertheless.

Marketing Values:
At its core, Foodos is not a food delivery service. Its more than that. We are into delivering choices, delivering the freedom of not settling down. Food is not something you gulp down, whatever and whenever you can, and get on with your life. What you eat and how you eat is very intimate to your existence. If you are settling in your cravings, you'd probably settle in every other aspect of your life.
               Foodos would never be into hefty discounts and promotions. they will be a very small part of the experience we strive to provide. We believe that awesome and timely service and vast pool of options could outrun hefty discounts and promotions in the long run. And that is why every late delivery and cancelled order changes us.

Communicating effectively with the existing and potential customers is not a spend, its an investment to us to get our values propogated to our customers

Marketing streams:

1) F2: Our B2B arm of the business, F2, is a potential marketing stream for us. We acquire the details and preferences of the customers through this model, to whom we could promote our services very effectively.

Online:

1) Social Media Engagement:
Social medias like Facebook and Twitter are the real good mediums to understand, segregate and reach your target customer base. Here engagement is more important that advertisement. We are going to create and maintain pages and profiles on all the major social networking sites that fit our business and will religiously engage with the customers.

2) Banner Ads: Although they have gone almost obsolete, they still help brand recall an minimal costs

3) Content Marketing: This is the key to standing out from the crowd. The quirkiest things become viral today. Content marketing is super cheap and super effective.

Print Marketing:

1) Newspaper inserts
2) Restaurant branding
3) Pamphlets



promoted combos and discounts:

After a significant amount of traction, we are going to roll out the "Happy Hours" feature in the "Foodos Curate" mobile application. This will basically be an assortment of the curated combos which are being sold at discounted rates.
             At the non peak hours when the restaurants don't do much sales, they are eager to give discounts. A happy hours feature in restaurants, you could say. this is because of two reasons:
1) The chefs are sitting idle. They still have to pay the rent.
2) The raw materials may expire.

This feature could be a real value creator in terms of traction. We could reach to a huge target base by promoting the "happy Hours" feature, with the help of mailers, SMS or push notifs.


CAC:
LTV:  Can all be calculated better if we have the startup running.


Referrals:

Whacky: Direct mails and letters.
             
Links: http://draytonbird.com/


























Marketing budget? 5-7 Lakh
Cost to acquire a customer?
Life time value of a customer?

Promoted "recommended" Combos (Category)
Only 30 left
Live offers manipulation by a mail request from restaurant.

Its not that tough when you think about it.

You need to get the business plan right.
You need to get the pitch deck right.

You need to get the operational plan, of how the bits will form together into an operational monument. an operational wonder.

You need the product UI.

* in pitch deck, add a target slide before the funding request.

Networking Plan: Foodos

Influential People:
Swastik Nigam (The Mesh)
Advitiya Sharma
Amit Subodh


Seedfunders:
Nishant Singhal (YouWeCan Ventures)
Karthik (Blume Ventures)
MyFirstCheque
Indian Angel Networks
Mumbai Angels
Oris Ventures
Harvard Angels India
SeedFarm by SeedFund
Kae Capital
Ojas Ventures
Startup Centre
Dev Khare (Lightspeed Ventures)
The Grex
India Quotient


Accelarators/Incubators:
500 Startups (Pankaj Jain)
The Morpheous
TLabs

pitch deck slides

Below are the slides that we are going to put in our Pitch Deck:

1) Welcome
2) Problem
3) Solution
4) Market Validation
5) Market Size
6) Product
7) Business Model
8) Market Adoption
9) Competition
10) Competitive Advantages
11) Fundraising

the new system: Business plan finishing goal

either bear the pain of discipline or bear the pain of consequences.

We have four verticals of operations:
Business plan
executive plan
networking
product design

Business plan:
we have been pushing it away and away since days. but we will go systematically from here:

9,10,11 september: Pitch deck.

12-25 september: finalized business plan
       12-14 september: financial plan & Funding request
       15-16 september: marketing plan
       17-18 september: Design and development plan
       19-20 september: Operations and management plan
       21-22 september: Executive summary, business description and competitive analysis
       23-25 september: recheck the business plan and take suggestions. Finalize.