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CARDROPS MODEL
ANALYSIS
A Devil’s Advocate View
It is not about convenient delivery...
It's about secure storage
But is a car boot secure?
• Don't leave valuables in your car
• Parking lot not responsible for loss/theft
If people are anxious about leaving items in
their car, then CarDrops defeats the
purpose
Framing the Service
Car is a physical extension of the owner
• Emotional attachment
• Willing to give access to some third party?
• Especially at times when owners are not nearby
Fear of turning their cars into potential
targets
Popular in-car services involve the owner in
the car or under supervision
Invading Personal Space
Target Group Size
Owners with own cars
That are not hatchbacks
That have regular work locations
Not in protected parking areas
Cannot receive parcels
at work
Target Group Size
Owners with own cars
That are not hatchbacks
That have regular work locations
Not in protected parking areas
Cannot receive parcels
at work
Acceptance of Night-time delivery
• Anxiety
• Hassle
Is this less convenient than using a
pick-up point?
Value Proposition Comparison
Competitor Cost Security Effort Convenience
Kiala     
DHL      
DPD      
BOL.COM     
TNT      
Value Proposition Comparison
Competitor Cost Security Effort Convenience
Kiala     
DHL      
DPD      
BOL.COM     
TNT      
Future Proof?
What if a competitor partnered with a wide-range of 24 hr distribution
points?
• Petrol Stations
• Fast-food drive-thrus
• Fitness Centres
Targeted Marketing
X-Promotions
Reposition
• Cost of membership
• Perception of inscecurity/viable target
• Turning off tracking (lost revenue streams)
CarDrops must be used almost daily to offset:
• Food (including fresh, frozen*, warm)
• Necessities (Diapers, toiletries, etc.)
• Entertainment (DVD rentals, flowers, etc.)
• As well as weekly shopping
CarDrops "removes" end of workday errands:
Recommendations
• Partner with local chains to allow the delivery
without a minimum transaction1
• Insulated containers (fresh, frozen*, warm)2
• Subscription-only pricing option3
• Absorb merchant delivery costs in monthly
subscription (where possible)4
• Revenue stream through selling tracking
information5
Key Partnership (Albert Heijn)
CarDrops Partnership
AH Delivery
cost is
removed
Sent to
CarDrops to
sort and deliver
Sorted by AH,
CarDrops picks
up & delivers
Extend AH
delivery zone
Targeted
Marketing
Current state
Online shopping and
delivery from €4.95 +
premium
Does not deliver to northern
NL
Main cost comes from
delivery not order picking
Hurdles
• Technical and/or logistical insulated container solution1
• Partnership & pricing model (is €99/year still viable?)2
• Changing consumer perception3
• Quick deliveries (i.e before 5 pm when ordered the
night before)4
• Privacy issues surrounding sharing tracking information
with third parties5
The make-or-break for many online stores
is not in delivery but in the management of
exchanges/returns
o How does CarDrops fit into this?
Question

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Analysis of CarDrops Business Proposition

  • 2. It is not about convenient delivery... It's about secure storage But is a car boot secure? • Don't leave valuables in your car • Parking lot not responsible for loss/theft If people are anxious about leaving items in their car, then CarDrops defeats the purpose Framing the Service
  • 3. Car is a physical extension of the owner • Emotional attachment • Willing to give access to some third party? • Especially at times when owners are not nearby Fear of turning their cars into potential targets Popular in-car services involve the owner in the car or under supervision Invading Personal Space
  • 4. Target Group Size Owners with own cars That are not hatchbacks That have regular work locations Not in protected parking areas Cannot receive parcels at work
  • 5. Target Group Size Owners with own cars That are not hatchbacks That have regular work locations Not in protected parking areas Cannot receive parcels at work Acceptance of Night-time delivery • Anxiety • Hassle Is this less convenient than using a pick-up point?
  • 6. Value Proposition Comparison Competitor Cost Security Effort Convenience Kiala      DHL       DPD       BOL.COM      TNT      
  • 7. Value Proposition Comparison Competitor Cost Security Effort Convenience Kiala      DHL       DPD       BOL.COM      TNT       Future Proof? What if a competitor partnered with a wide-range of 24 hr distribution points? • Petrol Stations • Fast-food drive-thrus • Fitness Centres Targeted Marketing X-Promotions
  • 8. Reposition • Cost of membership • Perception of inscecurity/viable target • Turning off tracking (lost revenue streams) CarDrops must be used almost daily to offset: • Food (including fresh, frozen*, warm) • Necessities (Diapers, toiletries, etc.) • Entertainment (DVD rentals, flowers, etc.) • As well as weekly shopping CarDrops "removes" end of workday errands:
  • 9. Recommendations • Partner with local chains to allow the delivery without a minimum transaction1 • Insulated containers (fresh, frozen*, warm)2 • Subscription-only pricing option3 • Absorb merchant delivery costs in monthly subscription (where possible)4 • Revenue stream through selling tracking information5
  • 10. Key Partnership (Albert Heijn) CarDrops Partnership AH Delivery cost is removed Sent to CarDrops to sort and deliver Sorted by AH, CarDrops picks up & delivers Extend AH delivery zone Targeted Marketing Current state Online shopping and delivery from €4.95 + premium Does not deliver to northern NL Main cost comes from delivery not order picking
  • 11. Hurdles • Technical and/or logistical insulated container solution1 • Partnership & pricing model (is €99/year still viable?)2 • Changing consumer perception3 • Quick deliveries (i.e before 5 pm when ordered the night before)4 • Privacy issues surrounding sharing tracking information with third parties5
  • 12. The make-or-break for many online stores is not in delivery but in the management of exchanges/returns o How does CarDrops fit into this? Question