The first fulfillment and last mile delivery sharing economy
Chile
Market: Logistics and warehouses
Project stage: Operating business
Also this project:
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Find investments
- Participate in the Unicorn Battle
Idea or High Level Concept
We offer is a logistics service for ecommerce. Which means that we store their products, we pick and pack their orders and we deliver those orders. We allow them to forget about their logistics and focus on their business.
But what is interesting about our business, is the way we are solving the e-commerce last mile logistics: through a sharing economy, where we store the e-commerce products and pick and pack their orders in peoples houses.
We could say we are enabling darkstores, but a very low cost.
Territory of the product or service implementation
North America, South America
Traction and Current Status
In almost one year we have achieved to now: 87 clients 68,000 MRR 11,000 monthly orders 18 Wareclouds 60 Clouders
Problem or Opportunity
When it comes to the last mile, the pandemic is finishing what Amazon started. Whether it’s same-day, two-day, or choose-your-day, customers have come to expect dependable home delivery. And with the pandemic, those expectations have only increased.
Accounting for 53% of shipping costs, the last mile continues to be the critical piece where efficiency and consistency are lacking. And these costs only continue to rise as skyrocketing home delivery demand is overwhelming traditional last mile carriers and resulting in surcharges.
Solution
What Wareclouds offer is a fulfillment and last mile delivery service for e-commerce. But what is interesting about Wareclouds, is the way we are solving the problem: through the sharing economy.
We store the e-commerce products and pick and pack their orders in peoples houses; and we deliver those order through people with a car who are willing to pick up those orders and deliver them to the final consumer. We are solving what darkstores could not: a cost efficient space that does not disrupt the customer in-store experience.
We are changing the industry economics, performance and engagement:
Customer Segments and Market
Small and medium e-commerce retailers Global market: USD 80 billion
Revenue Streams and Cost Structure
We charge e-commerce for: - Storing their products: USD 40 / month - Picking and packing their orders: USD 1.25 / order - Delivering their orders: USD 4 / order
We share that revenue with Wareclouds and Clouders Average operational margin: 27.15%
From the traditional logistic companies, we are able to offer cheaper and faster las mile deliveries.
From the new logistic companies, we are able to offer cheaper las mile deliveries, and we allow e-commerce to boost their own channels.
Risks
- Legally issues in each state we will launch. - Copycats doing the same as we do (important to build a network effect). - Being able to maintain trust between all the users. - Being able to support scalability (operational and technological)
Incubation/Acceleration programs accomplishment
Get into Startup Chile and Newchip
Won the competition and other awards
Startup Chile Chile Global Angels
Money will be spent on
Team: 75% Marketing: 12% Software and hardware: 8% Office: 5%