Be a part of the m-commerce revolution
Kill that queue - Liberating m-commerce with FastTrack
Impatience is a virtue!
We just had enough! It’s 2015 and we are still queuing in all sorts of places, at the grocery store, the flower shop, at our local take away restaurants ... Even though we have pre-ordered, we still need to queue in order to pay. Why!? No one benefits from the queues and the ancient way of pre-ordering were payments needs to be done at the concession point. We just had to find a solution which could help the merchants to get rid of the queues and increase service. It’s not about pre-ordering, it is about pre-payment!
There are numerous mobile ordering systems on the market today. But none of our restaurants had them, because they were too expensive. So we had to reverse the existing models, turning the business model upside down to come up with a service everybody could afford. And we needed incentives to change the behavior in order to grow big!
This is FastTrack!
With our business model every merchant can not only afford this solution, since we offer it at no cost, there is also an incentive to save money using the built in payment system. FastTrack is a free to use software/app solution, where the merchant easily can insert their offers. Every merchant gets their own branded m-commerce app with a PSP and Bank solution included as well as a set of CRM/Promotional tools, to increase sales on their existing customer base.
You can try the service by downloading Geiko on Appstore or Googleplay. Bon apetit!
All business is local
We strongly believe that the best person to sell the app to the consumers are the local merchants, since they already today have the relationship with them. Helping the merchants building their brand, growing the relations and increase sales on their existing customer base as well as saving money with the built in payment system, will help us converting people to buy stuff conveniently through their phone, pre-order, pre-paid! Less queues, better service
The merchant’s best friend
We sell time to the stressed people!' We are positive that if we can attract merchants with a good tool to save money and increase service, the customer will be willing to pay for it and of course save time!
A free to use m-commerce service with possibilities for every merchant to save money from the built in payment solution and business model.
A cheap service for the customers in order to get a better service, no time-wasting queues and promotions from their favorite merchants.
Technology for ordinary people
The service consists of the app interface and the backend interface, simple and robust.
The app-interface is customizable in colors, content and pictures to build the local merchants brand and strengthen the relation to their existing customers. This gives the merchant his/hers own app, which makes her/him responsible for the service that comes with it.
The back end interface is cloud based and can be loged in to from any connected device. The backend is divided into permission levels. One for shop owners who wants to have control over the offers, prices, promotions etc. And one for the shop staff, that only should be able to open and close the app, execute orders, withdraw products from the menu and export sales reports.
The merchants have full control of their app via the backend interface, where they build product categories, products and menus. They can choose to insert pictures, launch promotion campaigns or send messages to their customers. If they have more than one shop, they can add more shops into the same app all geo tagged for customer convenience. Apart from the code base we have developed for the apps, we have spent a lot of time to develop different automation tools in order to handle large volumes of merchant apps. Even though we have a couple of steps left to be totally automated we have come a far way down the path. The plan is there, all we need is resources!
The market and market potential
There are more than 150 000 merchants in the hotel, restaurants and retail business in Sweden. Among them there are more than 22 000 restaurants. More than 40% of the Swedish population has used their mobile device for purchasing products 2014. That is a 163% increase since 2012
Given the agreements we have got and the reactions we have met during our first 10 weeks sales period we strongly believe we will be able to attract 0,6 % of the Swedish restaurant market within the first 18 month. That will make 1300 restaurants up and running merchants in April 2017. With an average of 9 purchases/day through the app and an earning of 3,2 SEK/transaction we will have a turnover at appr. 950 000 SEK/month. In this forecast we will have black figures in month 19 (see enclosed financial forecast for more specific information)
The competition consists mostly of portal apps primarily within the restaurant business. All having the same business model where the restaurants pays for the service via subscriptions, percentage on the transactions and sometimes also a service fee from the consumer. The average margin for a restaurant is about 1-2 %, why every cost needs to be taken under consideration. Also the portals has to build their own brands and not the restaurants. In the portal the restaurants compete with all the other restaurants in the portal. One should bare in mind that an ordinary Pizza shop has got between 70-80 % recurring customers. With FastTrack the restaurants promote their brand towards their customers. Being in the customers phone means they are in the customers life!
The up-side-down business model
As aforementioned most of the competition builds portal apps, promoting the portal, not the restaurants. In the portal every restaurant competes with all the other restaurants in the app. And baring in mind that 70-80% are existing customers, the restaurant will probably have 70-80 existing customer orders through the app. Imaging losing 5-25 %/transaction in commission fee to a portal on your existing customers. We don't think that is sustainable business!
With 70-80 % recurring customers the restaurant can increase the penetration of it's current consumer base and save money on every transaction with FastTrack. Our business model begins with the merchant. We need an offer few will reject in order to make a change . And we need to make functions that increases the service enough to pay en additional 5 SEK to use it. Maybe its just us, but 5 SEK to avoid a queue. Wouldn't it be worth it?
If we want to get rid of the queues and get better service we need to start at the restaurants.
This is our offer:
- No fixed costs
- No transaction costs
- 30 days’ time of notice
- Possibility to be refunded for your card expenses (Swedish bank cards) if you have more than 280 transactions/month in your app
Consumers: In order to obtain a better service and have the possibility to get promotions from the merchant, the customer needs to pay a small service fee of 5 SEK on the transaction regardless of how big it is.
- Earns 5 SEK on every transaction through the system
- FastTrack will refund 1,50 SEK on every transaction to merchants with more than 280 transactions/month made through their app.
Since July 2015 the following milestones has been met
- One successful round of investment in the beginning of the summer.
- A robust product has been developed, with built in automation to handle large volumes of apps.
- 50 + customers has signed up for the service
- LOI signed for a cooperation with Visita (Former SHR Swedens Hotel and Restaurants industry- and employers organization with more than 6500 members).
- Cooperation agreement signed with Bambora, with an intention of joint sales efforts towards relevant market segments.
- Strategic road map developed for software development and market expansion.
- FastTrack has signed an investment agreement. The agreement stipulates that a fund will invest 5 Msek to current valuation no later than 1st of april 2016 given that the investor has completed their ambitions concerning their investment activities. The investor has choosen to be anonymous at this point. FastTrack has decided to add those 5 Msek to the campaign. If you have any questions regarding the agreement, please do not hesitate to contact us.
Budgets and developments
Our vision is that every merchant shall offer a pre-order and pre-payment service regardless of business to increase service and efficiency. And to change the customer behavior in favor of mobile payment. To achieve this we will need to invest in continues development for new functions, but also keep developing the automation parts of the system in order to increase efficiency and scaleability. The humbly asked for budget shall be enough to have a positive cash flow in Sweden and a market expansion in the Nordics by Q2 2017.
Internal documents to support our development. - Execution of our operational efficiency plan (plan until Q4 2016) - Execution of our development plan (current plan to be in place Q3 2016) - Recruitment of developer and sales reps.
Why should you invest?
To ease the life of a customer is an essential part of any business today. FastTrack's order process for take-away food is more speedy, comfortable and safe in all aspects. This ensures customer value - at both ends; customer and restaurant.
We have multiple variables. Subito Services’ expansion plan together with our partners, will ensure possible volumes of transactions within a short time frame. During our soft launch period we have had a 26 % sign-up rate and just 11 % rejections - which makes us comfortable with our offering and looking forward to launch the service in larger distribution channels like Visita's and Bambora's networks. The market is hot for the area. Given the expansion plan there will most certainly be interested larger corporations in the business wanting to buy Subito. Recent examples of trades are Delivery Heros EUR +25 Million purchase of OnlinePizza.se (with 1100 restaurants) and Just Eats USD 685 Million purchase of Menulog.com.au (with 5500 restaurants). Depending our success with global expansion there can be larger VC corporations willing to buy. Another possible exit could be an IPO.
With our competitive offer we aim for fast traction and with our backend design we enable high scaleability for global expansion!
From time to time the team working at FundedByMe invests privately in the companies before, during or after a crowdfunding on FundedByMe. The CEO of FundedByMe, Daniel Daboczy is an early investor in this company.