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Hi, I'm Tom from Shutl.
This is what the web looked like at the time of the
world's first e-commerce transaction.
I don't know if you guys remember Yahoo!.
They were indexing 30-odd thousand pages at the time.
Three years ago, Google passed the trillion index mark.
The web has gone from tens of thousands to trillions.
The web is a very different place.
And so is e-commerce.
Today's consumer can find and purchase anything from
anywhere in seconds.
One thing has hardly changed.
Shoppers must wait a day or many days for delivery, which
takes place at a time determined by a courier
company and not the consumer.
The reason delivery is so important--
it's the last interaction that a retailer
has with their customer.
Beyond the product, it's probably the single greatest
influence as to whether or not a consumer is going to shop
more or less with you in the future.
Now, because courier companies try and deliver at a time that
may or may not be appropriate to the consumer, there's a
relatively high incidence of either failed delivery attempt
or complete delivery failure.
Cost of which gets picked up by retailers,
billion pounds last year.
Far more significant, delivery has been shown to be the
single greatest inhibitor to conversion within
a retailer's website.
And when you look at what consumers have to say about
delivery, and how delivery impacts them, and you look at
how delivery impacts upon consumers, and that the
majority of what consumers say about delivery is negative, it
gives you a sense of just how big of a problem delivery is.
The reason that delivery has problems is that e-commerce is
delivered by hub and spoke couriers.
These guys work by sending one vehicle out on the route
making collections.
They bring back to a hub.
They sort, distribute, and then send out on multiple
vehicles, running on multiple delivery routes the next day.
Now, hub and spoke is the most cost-effective way of sending
something from A to B. In fact, it's the only
cost-effective way of sending something from A to B, as long
as the distance between A to B exceeds 10 miles.
What's interesting is if distance is under 10 miles, it
can be as cost-effective, sometimes even more
cost-effective, to send a courier straight from
collection to delivery.
The challenge is these big national courier companies
that do hub and spoke cannot do these point to point
journeys because all their vehicles run
on preordained routes.
The guys that do those point to point
deliveries are these guys.
There are 3,000 of them in the UK.
And together, these 3,000 courier companies make up just
3% of the courier market, the other 97% being those 12 hub
and spoke couriers.
So this market is highly fragmented.
These businesses are local.
They're brands retailers don't know.
And they're brands consumers certainly don't know.
Individually, they're not big enough or national enough to
serve the e-commerce delivery market.
And that's where Shutl comes in.
We are an aggregator and secondary market for capacity
across the local point to point courier market.
And we pull this capacity together into a platform,
which we expose to retailers via an API.
So think of us like a PayPal for really awesome delivery.
We take a whole bunch of data into our API, which enables us
to provide a dynamic price and promise to the consumer.
We've got two options.
Our ASAP option, called Now!, we will tell the consumer the
number of minutes we will deliver with it.
The promise is within 90 minutes of purchase.
The average delivery time is about 17 minutes, quickest to
date, less than 15.
And then, we've got When?, when we will tell the consumer
what one-hour time windows are available to them,
same day or any day.
But what's great about these propositions, they can be
offered 24 hours a day, seven days a week for a comparable
price to standard delivery, which can mean even free to
the consumer.
What we've done in the background is we've worked out
which courier company is best for that transaction on the
basis of their price and their quality rating.
If the consumer chooses our option and checks out, we send
the delivery, via an API, straight into the chosen
courier company's auto-management system.
They're then responsible for allocating to one of their
couriers, who will collect, usually, from a store, rather
than a warehouse to keep the delivery distance short.
We have a second API with the courier companies where we
take live data out.
So for example, we know the GPS location of the courier
that's doing the delivery at all times.
So we serve that up onto a tracking page.
And we email it to the consumer.
We also take, via that API, status updates.
So we know when they collected and when they delivered.
So we know whether or not they performed within service
expectation.
If they did, their quality rating improves.
And if they didn't, it worsens.
The quality is of utmost importance to us because we're
a branded proposition.
The consumer chooses us or doesn't choose us.
If we provide a crap service, they won't choose us, not just
at that retailer, but at any retailer, ever.
So we are incentivized by the lifetime
value of the consumer.
We send the consumer this email a couple seconds after
delivery, where we ask them to rate the [? qualitative ?]
aspects of the experience, value for money, ease of use,
speed of delivery, delivery person.
We ask them how they found out about us.
We ask them the Net Promoter questions.
A score of 0 to 10, how likely would you be to recommend the
service to a friend or colleague.
And then, there's a free text field where we tell them,
specifically--
we ask them to tell us how we can improve the service.
Anything that goes in there streams out live onto Twitter,
to our Shutl feed.
It streams live onto our homepage and
our feedback page.
You can go to shutl.co.uk/feedback.
You can see exactly what consumers are saying.
So what do they say?
Well, they actually have quite a lot to say.
Remarkably, 26% of consumers respond and answer all of
those questions.
The reason these consumers are so engaged is that they find
the service magical.
Across these four categories, we average 93 and 1/2%.
More importantly, is the Net Promoter site.
81% of respondents rate the service a 9 or a 10 out of 10,
in terms of their likelihood to recommend.
That's higher than Apple.
There's no one else in the delivery space that have as a
positive NPS, which kind of is why ours is so high, I guess.
But to give you a sense of our kind of "Think Big" bit, what
our ambition is for this business, delivery,
historically, has always been a reason for the consumer not
to make a purchase.
What we're doing is we're making Shutl a reason for the
consumer to buy, and not just to buy at one retailer, to buy
at any retailer.
Currently, about a third of consumers say that they were
aware of us before they made their purchase.
So we're already influencing buying behavior.
More importantly, the majority of customers say that offering
Shutl makes them way more likely to buy from that
retailer again in the future.
And the repeat usage shows that.
So these are the people that we are live with as of today.
This is why they're using us.
It's all about attracting customers, improving
conversion, increasing order values, all the things that
are good for retailers to do.
We are live, currently, in 20-odd cities across the UK.
We'll be covering about 75% of the UK as of next month.
And we've got much bigger ambitions though.
We are a platform business.
We're a technology business.
We're not a logistics play.
We're aggregating capacity across the supply side, demand
side, and putting it together into something pretty cool.
And that's Shutl.
Thank you very much.