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Delivery 2.0: Learning from The Past, Delivering the Future Dinner Event
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Transcript of Delivery 2.0: Learning from The Past, Delivering the Future Dinner Event
The On-Demand Economy
The On-Demand Economy is a member-driven organization of mobile commerce executives, thought leaders, service providers, journalists, investors, and consumer advocates.
We are experiencing a revolution enabled by new technologies and shifting consumer habits, spurring “The On-Demand Economy.” Mobile businesses are rapidly changing industries, cities, and lives. Smartphones are quickly becoming the remote controls that allow us to navigate our daily lives, and mobile spending will represent the fastest and largest spend shift we have seen in history.
The On-Demand Economy will serve as an unbiased platform to meet influential industry participants, collaborate with like-minded businesses, address collective issues, and provide access to research and data for all members.
Discover, celebrate, and learn from this innovative new industry that is redefining commerce by making lives around the world easier and more convenient.
2© The On-Demand Economy
5© The On-Demand Economy
Source: The On-Demand Economy n = 20
The Future of Delivery 2.04 out of 5 believe Delivery 2.0 will achieve long-term profitability at scale
80.0%
20.0%
Do you foresee long-term profitability at scale for Delivery 2.0 companies?
Yes No
6© The On-Demand Economy
Source: The On-Demand Economy n = 20
Why Will Delivery 2.0 Succeed when 1.0 Failed?Improved Technology & Shifting Consumer Behavior are the primary reasons for Delivery 2.0’s success
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Smartphonepenetration &
"always connected"lifestyle
Increased comfortwith purchasing
online
The rise of the part-time, or "1099",
worker
Lean inventorymodels
Measured growth, egproduct market fitprior to expansion
Expectation forInstant Gratification
Key Reasons why Delivery 2.0 will have long-term success
7© The On-Demand Economy
Source: The On-Demand Economy n = 20
Where is the Growth?Grocery & Food Delivery to Lead On-Demand Explosion
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Key Sectors of M-Commerce Growth Over Next 3 Years
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Logistics is key to achieving dominance in Delivery 2.0
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Logistics Engineering Partnerships &BD
Design Marketing HumanResources
Key Competency to Achieve Competitive Advantage in On-Demand Delivery
Source: The On-Demand Economy n = 19
How to Achieve Competitive Advantage?
© The On-Demand Economy
What Keeps You Up At Night?
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Owning the Customer & Product Quality & Availability are most concerning
© The On-Demand Economy
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Productavailability
Product quality "Ownership" ofthe customer
Departure foranother platform
Hours open Other Minimum orderquantity
Key Vendor / Supplier Issues
Source: The On-Demand Economy n = 19
Why Do They Leave?
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Desire for Greater Compensation & Advancement Opportunities Largely Responsible for Turnover
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Satisfying workingsalary expectations
OfferingAdvancementopportunities
Inability to performthe core
responsibilities
Scheduling mutuallyamenable hours
Other Satisfying workerbenefit expectations
Primary Factors for Employee Turnover
Source: The On-Demand Economy n = 19
© The On-Demand Economy
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Key Operating Challenges of On-Demand Businesses
What Keeps You Up At Night?Operational Resources are the Biggest Operating Challenge in the On-Demand Economy
Source: The On-Demand Economy n = 19
12© The On-Demand Economy
Where Do Customers Come From?Referrals, Facebook, & Google are top traffic providers
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Top Customer Acquisition Channels
Source: The On-Demand Economy n = 18
Yes, 67%
No. If "no", would you ever consider it in the
future?, 33%
Where Will Customers Come From?
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M-Commerce Apps to Drive Future Customer Acquisition
© The On-Demand Economy
� 33% of participants acknowledged
that did not acquire customers from
complementary mobile applications,
but 88% of those respondents said
that they would do so in the future.
Do You Acquire Customers from Complementary Mobile Commerce Applications?
Source: The On-Demand Economy n = 18
Customer Economics of Delivery 2.0
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LTV Rising while Acquisition Costs Decline
© The On-Demand Economy
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Decreasing Holding Steady Increasing
Current Trends of Customer Acquisition Costs and Customer Lifetime Value
Customer Acquisition Cost Customer Lifetime Value
Source: The On-Demand Economy n = 16
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Servicequality
Brand Customerservice &support
Price Userinterface
Availaibility Loyaltyprogram
Other
Primary Levers to Fend Off Commodization
Source: The On-Demand Economy n = 20
How to Succeed in a Crowded Marketplace?Brand & Service Quality seen as key differentiators
16© The On-Demand Economy
Source: The On-Demand Economy n = 14
Who is Your Competition?Amazon & Google are primary threat to future growth
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Best Positioned to Compete With You