A new, automated retail delivery service was wondering how much demand would exist for its new app, and what kind of pricing structure might work.
Situation
The client had a concept to develop a “Skip the Dishes” type of on demand delivery service for retailers of any type, allowing them same-day speed and app-automation for local deliveries. He felt this would be critical in a pandemic world, but also in the long run. Since local couriers were already an option for such companies, the company needed assurance that the service would be in demand and to determine what pricing structure may work best. They were approved for received funding from Alberta Innovates to conduct the research.
Solution
The research involved contacting several retailers in many categories (a total of 30). The research revealed an urgent demand for the service concept, so much so that many retailers were saying “we want to pilot this” and “we need this now!” due to the pandemic. Of 30, 17 of the retailers stated they would be beta-testers. This validation gave the client the confidence to proceed with design and development of the solution involving a sizeable financial and time commitment. We also were able to develop a strong case for a unique pricing and implementation methodology.
Results
While the demand was undeniable, and we recommended a “go”, the client was still months away from having a minimum viable product. A few months after the research was completed, a new competitor appeared that was very well-financed, with a nearly identical concept, and already at the point of launch, so they decided to not to go forward right away; they may be moving in the near future. Tenato also gave the client consent to resell the research report and beta-test list of leads to its newfound competitor to help recoup their investment (which could then go into their new firm).
