A proud winner of the Scale Challenge, a Walton Family Foundation funded incubator program. Today, 25% of customers abandon a cart online at checkout because express delivery is not available as an option. Offering next day delivery is very challenging for many retailers, but it's becoming essential for their existence. Flype has developed a proven concept that will enable them to offer their customers a premium next day delivery, without investing in any logistics facilities, saving them millions of dollars in facility costs, invaluable time and helping them retain 25% of their customers!
Flype has already sent parcels internationally, where we have delivered 500 packages with 170 travelers to 27 different cities around the world (4 continents). We are signing up retailer clients, and already have the interest of recognized retailers guaranteeing initial volumes of over 1000 parcels/day.
We have assembled an experienced team and partnered with industry experts. The platform is estimated to launch in September 2020 and development is already in progress.
Flype has won the Top Idea award at Venture Cup, Sweden’s largest startup competition and is a proud winner of The Scale Challenge, a Walton Family Foundation and CAI incubator program.
We have received interest from many retailers within cosmetics, clothing and accessories and much more. On a high level, any retailer with an online and physical stores can use Flypes services. Although Flype will add value to many retailers, those who'd benefit the most are cosmetics retailers. The reason is that, most of their products are flammable items, hence they cannot be shipped by air with traditional couriers. Flype is the only way they can offer their customers in other cities next day deliveries on these products.
When it comes to travelers, our specific target group is millennials and young adults since they're the easiest segment to target and convert at start. Other companies have proven great success with this. Though we have no doubt that business travelers and airline staff will be interested in delivering with Flype since the entire delivery process is easy, seamless and provides a valuable compensation.
Problem or Opportunity
Research and statistics have shown that 25% of customers abandon a cart online if express delivery was not available as an option at checkout. In addition to that, retailers are seeing a 10% increase in revenue fr om the areas wh ere they offer next day delivery. That is why many retailers are spending billions of dollars in R&D just to make next day delivery available in more areas. However, adding a next day delivery alternative is far from simple and is quite problematic for many retailers. The following case explains a major reason behind that:
Rituals is a global cosmetics retailer that has a lot of stores across the U.S. However, they only have one distribution center in Wisconsin. Naturally, all their online orders are shipped from the distribution center since no shipping company can ship these parcels from the individual stores. Because of that, the fastest delivery option Rituals can offer today is 4 business days, which is completely unacceptable. The only way they can solve this problem is by building more distribution centers, however, that is an expensive process that is very heavy operationally and will take a lot of time. They are planning on building a new one in California, but it will take until 2022 for it to get finished.
Solution (product or service)
By using Flype, retailers will be able to ship parcels from their individual stores to customers in other cities and countries, with daily travelers. This will essentially enable each store they have to act as a distribution center, saving them millions of dollars in facility costs, invaluable time and helping them retain their customers.
The two most significant competitors that are currently out there are Grabrr and Hitchhiker. These two companies have proven the great interest from the travelers to deliver parcel while traveling. However, they are both struggling with demand since they operate on a P2P model, meaning that a private person requests a parcel directly from the traveler.
There is no existing company that offers this service to retailers the way Flype does.
Advantages or differentiators
1. Decentralizing retailers logistics, enabling each store they own to act as a distribution center
2. Express delivery for flammable items (such as perfumes)
3. High standards of flexibility and precision
4. Real time tracking of parcels from the moment they leave the store till they get to the customers home
5. High customer satisfaction thanks to a traveler review and rating system
6. Envirounmentally friendly
Flype will take a 15% cut out of the travelers revenue, plus a 2-5% insurance fee that will vary based on the travelers experience level. We estimate our revenue in 2024 to be $225M.
Money will be spent on
Running the public beta, marketing, further integration costs with e-commerce platforms to make our service available to a large variety of retailers and additional product development after the public beta.
Offer for investor
We are already signing investors and have secured enough resources to build our platform. The development has therefore already begun.
We are seeking 5M SEK, and have already raised the first 1M. The offer is based on Startup Tools infamous WISE agreement, with a cap of 30M SEK and a discount of 25%.
Had we launched a year ago, our business would have been doomed today due to the pandemic. Thankfully, we are still at a development stage and will plan our launch together with the opening of travel. This will make is easier for us to initiate direct collaborations with airlines, train companies, ferries and booking sites since we will help them retrieve their customers quicker. There is no doubt that a fall in trave would impact our business, just like many other businesses, and this is the main risk for Flype.
Incubation/Acceleration programs accomplishment
The Scale Challenge, an incubator program out of NW Arkansas, US, that is funded by the Walton Family Foundation to find disruptive innovations within logistics and transport that'd benefit Walmart, and other retailers. Out of the 150 US participants, Flype is the only European based company. By the end of March 2020 Flype was honored in being declared a winner of the program, and invited to NW Arkansas, USA, on the 24th of September 2020 to meet with the Walton Family, their network of investors and representatives from Walmart, who are interested in backing up the project financially and discussing other potential partnerships.