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


On-Demand Framework

3

Delivery 2.0 Survey



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



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

0%

10%

20%

30%

40%

50%

60%

70%

80%

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



Where is the Growth?Grocery & Food Delivery to Lead On-Demand Explosion

0%

10%

20%

30%

40%

50%

60%

70%

80%

Key Sectors of M-Commerce Growth Over Next 3 Years

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Logistics is key to achieving dominance in Delivery 2.0

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Logistics Engineering Partnerships &BD

Design Marketing HumanResources

Key Competency to Achieve Competitive Advantage in On-Demand Delivery


How to Achieve Competitive Advantage?

© The On-Demand Economy

What Keeps You Up At Night?

9

Owning the Customer & Product Quality & Availability are most concerning


0%

10%

20%

30%

40%

Productavailability

Product quality "Ownership" ofthe customer

Departure foranother platform

Hours open Other Minimum orderquantity

Key Vendor / Supplier Issues


Why Do They Leave?

10

Desire for Greater Compensation & Advancement Opportunities Largely Responsible for Turnover

0%

10%

20%

30%

40%

50%

60%

70%

Satisfying workingsalary expectations

OfferingAdvancementopportunities

Inability to performthe core

responsibilities

Scheduling mutuallyamenable hours

Other Satisfying workerbenefit expectations

Primary Factors for Employee Turnover




0%

10%

20%

30%

40%

50%

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



Where Do Customers Come From?Referrals, Facebook, & Google are top traffic providers

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Top Customer Acquisition Channels


Yes, 67%

No. If "no", would you ever consider it in the

future?, 33%

Where Will Customers Come From?

13

M-Commerce Apps to Drive Future Customer Acquisition


� 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?


Customer Economics of Delivery 2.0

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LTV Rising while Acquisition Costs Decline


n=15

0

2

4

6

8

10

12

14

16

Decreasing Holding Steady Increasing

Current Trends of Customer Acquisition Costs and Customer Lifetime Value

Customer Acquisition Cost Customer Lifetime Value



0%

10%

20%

30%

40%

50%

Servicequality

Brand Customerservice &support

Price Userinterface

Availaibility Loyaltyprogram

Other

Primary Levers to Fend Off Commodization


How to Succeed in a Crowded Marketplace?Brand & Service Quality seen as key differentiators



Who is Your Competition?Amazon & Google are primary threat to future growth

0%

10%

20%

30%

40%

50%

60%

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80%

90%

Best Positioned to Compete With You