Snack delivery service during the evening/night

3 november 2021

Company description:

The company, founded in April 2021, is a snack delivery service active during the evening/night hours when supermarkets are closed. They offer 30 minutes delivery with no minimum order amount and 2 euros delivery fee, with a product pricing really close to supermarket prices.

They are currently active in Den Bosch with more than 500 fulfilled orders from about 200 different customers. They are planning to use Den Bosch as a testsite for their activities and expand in the future to student cities all around the Netherlands. One of their goals is to reach 10 orders per day by January 2022.

With a team of 3 members they are working on this project. They are doing everything themselves from deliveries to business development. As the company grows they are planning to hire more drivers to deliver the products.

 

Business Model:

Clients can purchase the snacks through direct messages on their Instagram or the website of the company, which in the near future will be converted to an app. 

The snacks are currently bought at suppliers that offer bulk discounts like Makro, Kruidvat, and Action. The plan is to reach a volume large enough to be able to close deals directly with producers (Mars, Coca-Cola, etc…) to increase the margin while keeping competitive pricing. The start-up aims for having a 45% margin with closed deals; the current margin is at 30%. Although they do not have a minimum order amount, the average order is now around 11 euros per order. A returning customer rate of 90% indicates a sustainable business model. Its volume is bound to grow more when more effective marketing methods will be put in place.

Currently, practices to increase customer loyalty are active, such as free samples and personal promo codes; a close relationship to the customer is essential to the development, giving a solid customer base and revenue to begin with.

 

Customer type / profile:

B2C
 

Preferable investor type:

Angel investor; Venture Capitalist

 

USP’s:

Night delivery within 30 minutes;

– No minimum order amount;

– Pricing close to supermarket prices;

– High-quality customer care.

 

Capital amount needed:

€50.000,-
 

Investment need:

– €10.000,- for inventory

– €10.000,- for logistics

– €20.000,- for staff

– €10.000,- for marketing

 

Sector:

E-Commerce; Food

 

Phase:

Early Growth

 

Number of founders:

2

 

Current number of employees:

1-5

 

Experience:

1st founder: Graduate Master’s Degree in Media Innovation at Breda University of Applied Sciences and is active in deliveries since August 2020.
2nd founder: Student of International Business at Avans University of Applied Sciences and is active in Horeca since 2015.
 

Monthly turnover (current):

€813,-
 

Turnover (forecast) next 12 months:

€1700,- p/m
 

Turnover (forecast) months 13 – 24:

€5.000,- p/m

 

Current monthly expenses:

€703,-

 

Committed funding in the current financing round:

€0,-
 

Additional information:

This is the first round of investment of this company, to help achieve the first revenue milestone of €1700 p/m. Their plan is to reach a fixed volume and open in other student cities. Financing is needed to raise awareness of the service through marketing campaigns, compensate operating expenses, expanding locations and get the project into a running start-up.

Until now the founders have financed the costs personally. In total, they invested €1.200,-, although the investment was relatively small investment, they managed to generate more than €3.500,- turnover.

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