Welcome to the mid-December 2017 Passel Times!
A bit of a different format this time around. You’re essentially seeing the same report I sent to our investors and Advisory Board. I thought you might find it interesting.
We continue to deliver on a regular basis and have over 30 deliveries under our belt.
As we are still acquiring Passers (665 at the moment), it is still a challenge quickly finding the least inconvenienced person. The plan, up until now, was to use a courier. However, this is obscenely expensive and, even under startup economics, we can’t be burning $40 a delivery.
There is also a quality issue with the “casual” couriers, so we’ve reverted to a professional courier whenever possible.
We have a new plan, and it looks like this:
If we get three strikes for people who live near the delivery address, we now broadcast a message to a group of Passers who we think are likely to find it attractive to complete a 2-hour delivery for $20.
(So, if $10 a delivery wasn’t your bag, sign up for a chance at $20 – www.join.passel.com.au)!
We have activated this a couple of times and it worked beautifully.
It’s a good plan, and effectively means we are our own Plan B.
We are now post-revenue.
As part of the pilot incentive with every new client, we offered the first 10 deliveries for free. Now we’re in invoicing mode.
We have to start somewhere, but we have proven that customers are willing to pay for 3-hour delivery and we’ve proven we can crowdsource them. Now it’s just a matter of scaling!
As I mentioned, we have over 650 Passers. About 90% are Melbourne and Geelong, but people from all over Australia continue to register. On average, we’ve added 20 or so a day for the last 2 weeks.
Next Week’s Goals
I’d like to see us complete 10 to 20 more deliveries between now and Christmas. We’re capable of more, but I think by now most people have done their Christmas shopping.
It would be great to see some excellent stories. Perhaps a mum delivering to a mum?
We’ve raised $120k so far, and it’s got us to this stage. Another $100k will get us up an running and enable us to quickly get to a recurring revenue level where I can start talking to VCs about a seed round.
We have traction, we have successfully proven the model, and we have a significant number of red-hot leads and introductions lined up for the new year.
(The investor/advisor report actually names names, but I’m not supposed to discuss some stuff publicly).
We’ve proven we can acquire Passers – about 300 in the past 3 weeks with very limited advertising. (By the way, we had 3 registrations in the time it took me to edit this report!)
Finally, there is a bucketload of investor interest in delivery startups – the most recent being Target USA’s $550M acquisition of courier company Shipt and Walmart buying Parcel.
We’re in the pipe, 5 by 5, and ready to scale.
All I ask for is a name, and a number or email address. I’ll do the rest!
I’d really prefer to meet with them myself. I think I do a pretty good job of selling the vision.
And that’s it for this week.
From me and Julian and our families, friends and investors, customers and Passers, thanks very much for all your ongoing support and feedback.
Have a Merry Christmas and let’s make it an awesome 2018!
|CEO & Co-Founder|