Porter is India's Largest Marketplace for On-demand Intracity Logistics with the mission of "Moving a billion dreams, one delivery at a time"β
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For this project,
The "spot" (on-demand) business is selected.
Since Porter is a two sided marketplace, a choice has been made to focus on the demand side i.e. the customers and NOT the driver-partners.
PMF is achieved. There is good amount of word of mouth acquisition, retention and qualitative voice of the customer surveys to indicate value of the product.
The product is in between early scaling and mature scaling stage. I have selected the stage as early scaling as there is significant potential in focusing on the acquisition of JTBDs for early scaling.
Important customer experiences
Booking flow for trucks
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Customer app review in respective mobile stores
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Brand campaign
Website home page - first screen
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User understanding
Interview insights (Some samples)
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Organization
User
Decision Maker
Influencer
Blocker
Retail
Retail
Sender / Receiver Shopkeeper
NA
SME 1
Owner
Assistant
NA
SME 2
Assistant
Owner
Owner
Enterprise 1
Owner
Assistant
NA
Enterprise 2
Assistant
Owner
Owner
Ideal Customer Profiles (ICPs) prioritization
Important nuances
For customers without vehicle, the need is for all goods moment whereas for customers with a vehicle (own or captive through long term contract), the need is for peak management which spills over and above planned.
While individually, ability to pay of small SME may be low compared to medium SME, collectively they make it up through volume.
For the TAM evaluation, present or near future product capability is considered. This means that while for enterprises, TAM could potentially be very high, it is low in our case due to their use case (credit period, APIs etc.) not being addressed by the product.
In some cases, the decision maker on which logistics service provider to be used, and the operational executor are not the same person. In such cases, one of the two parties could potentially be influencers or turn out to be blockers.
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ICP prioritizationβ
ICP
Priority
Adoption Pace
Use Case Frequency
Appetite to Pay
TAM
Distribution Potential
Small SME without vehicle
1
Medium
High
Low
High
Medium
Medium SME with vehicle
2
High
Medium
Medium
Medium
High
Retail
3
High
Low
High
Medium
High
Enterprise
4
Low
High
High
Low
Low
Specialty SMEs
5
Medium
Medium
Low
Low
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Market understanding
Demand: Customer is forced towards poor pricing and poor experience
Highly fragmented SMEs.
Poor visibility of supply - each SME only knows 2-3 drivers.
Ad hoc demand.
Varied requirements - 2 kg up to 5 tons.
Low volume, low ticket size but frequent requirement.
Competitors
Competition
Relevant ICPs
Strength
Weakness
Porter positioning
Unorganized sector
Small SME without vehicle Medium SME with vehicle
Familiarity of pickup and drop locations Add-on services like loading and unloading
Uncomfortable price negotiations Uncertainty of vehicle availability Poor service if unfamiliar person
Vehicle always available Fixed price Consistent service quality
Uncle delivery
Small SME without vehicle Medium SME with vehicle
Low price
Poor fulfilment Poor SLA
Vehicle always available Consistent service quality
Traditional Packers and Movers
Retail
Packaging Ad-on services
High price for short distance shifting which do not need much packaging
Value for money price with vanilla service and packaging
Source 3: "Intracity Logistics Market in India" RedCore report, 2021
2022 GDP of India is USD 3420 Bn (Source 1).
GDP growth is 8.2% (Source 1).
2023 GDP if India is USD 3700 Bn (Calculated from 1 and 2).
Logistics is ~8.4% of GDP (Source 2) which translates to USD 309 Bn.
Road logistics is 75% of the total logistics (Source 3) which translates to USD 232 Bn.
Intracity road logistics is 14% of the road logistics (Source 3) which translates to USD 32 Bn.
TAM: Intracity road logistics of India = USD 32 Bn
Top 50 cities intracity logistics is 50% of the intracity road logistics (Source 3) which translates to USD 16 Bn.
On-demand intracity logistics is 60% of the Top 50 cities intracity road logistics (Source 3) which translates to USD 8 Bn.
SAM: On-demand intracity logistics of top 50 cities of India = USD 8 Bn
Porter is the leading organized pan India intracity on-demand logistics service provider. It is realistic to aspire for 50% market share which translates to USD 4 Bn.
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SOM: In the next 3-5 years, obtainable On-demand intracity logistics of top 50 cities of India = USD 4 Bn
Core value proposition
Product understanding
Porter is in the business of providing on-demand, intracity goods transport for small and medium enterprises (SMEs).
Customer problems are
Vehicle is often not available when they need it. Cost is high and subject to negotiations.
Customer benefits are economical, reliable and always available goods transport.
Before Porter, customers had contacts of 2-3 driver partners or went to the local naaka for obtaining transport. In some cases, customers had their own vehicles.
Getting vehicle with Porter is easy and fast. The best part is you do not have to negotiate".
Job to be done
Porter is in goods movement business which is an existing category. Unorganized market is the main competition. Porter provides goods transport whenever an SME wants, at a transparent, affordable price and a predictable service quality.
Unorganized market has variable service quality, price and availability.
Porter is a pull product since SMEs are looking for a way to move their goods. There is fair amount of awareness since Porter is the only large organized player. The JTBD is building trust that even though the SME may not personally know the driver, their goods will be affordably, swiftly, safely delivered to the desired location.
Ideal customer profile is a fairly tech savvy SME who has unpredictable intra-city goods transport need whose volume (number of trips) does not justify having an own vehicle.
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Core value proposition
For a tech savvy SME who needs a reliable yet affordable way to transport goods on demand, Porter is a goods transport agency that provides transparent, cost-effective goods transport pickup within 15 minutes.
If there is an option for customers to share the CO2 emission reduction, then the organic acquisition through word of mouth will increase by X%.
X to be calculated considering the funnel of
1. Number of customers
2. How many will share
3. How many people will be in their network
4. How many of them need our service
5. How many of them would switch to be able to also showcase their contribution to reducing global warming.
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Success Metrics
Guardrails
North star: # of new acquisitions
βTPC of existing customer should hold Only target ICPs should be acquired App performance should not deteriorate.
Leading: # of views or clicks by customer # of shares by customer # of views or clicks by the prospect # of app installs by the prospect
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Lagging: # of first orders placed (acquisition)
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Customer and Prospect Flowβ
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Product Wireframes
Customer:
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Prospect:
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"Logistics cost saved" content - The hypothesis changes. The metrics, flows, wireframes largely remain same as above.
βHypothesis
If there is an option for customers to share the savings in logistics they have achieved, then the organic acquisition through word of mouth will increase by X%.
X to be calculated considering the funnel of
1. Number of customers
2. How many will share
3. How many people will be in their network
4. How many of them need our service
5. How many of them would switch to be able to realize the logistics cost savings.
Success Metrics
Guardrails
North star: # of new acquisitions
TPC of existing customer should hold Only target ICPs should be acquired App performance should not deteriorate.
Leading: # of views or clicks by customer # of shares by customer # of views or clicks by the prospect # of app installs by the prospect
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Lagging: # of first orders placed (acquisition)
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Customer and Prospect Flowβ
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Product wireframes
Customer:
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Prospect:
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2) Product integrations
ICP
Characteristics
Products they use
Small and Medium SME
Technology forward - Uses Mobile, Web Has high variability of need / demand Does not have own vehicle OR Own vehicle cannot fully serve the need
Google Maps Mero Cash and Carry Facebook
Product integration evaluation
Product
Google Maps
Metro Cash and Carry
Facebook
Interaction frequency
High
Medium
Medium
Interaction importance
Important
Important
Somewhat
Our value addition to the Interactions
High
Low (Metro has their own delivery)
Medium
Scope of new use cases / new customers
Medium
High
Low
Based on the above evaluation, Google Maps is picked up as the product to integrate with.
Customer journey
Before Maps integration: Unorganized sector supply use case
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Before Maps integration: Porter use case
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After Maps integration
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Mockup Screens
Before Maps integration product flow
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After Maps integration product flow
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Product Mockup
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Hypothesis: If there is an option for customers to directly select Porter booking from Google Maps, then
1. For existing Porter customers, the transactions per month will increase by X%.
2. There will be Y new customer acquisitions per month.
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Existing customers
Success Metrics
Guardrails
North star: TPC
Cancellation at address confirmation screen Cancellation at booking review screen Incremental cost vs Incremental revenue
Leading metrics: % of customer aware of the widget Clicks on the maps widget
Success metrics: Bookings through the maps entry point TPC
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New customers
Success Metrics
Guardrails
North Star: Acquisitions
LTV / CAC Persona of the customers Cancellations
βLeading metrics: Clicks on the maps widget
Success metrics: First orders placed through the maps entry point
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3) Referral
1) What is the brag worthy value of the product?
Vehicle is at the pick up location within 15 minutes of booking.
Cost is 15% to 20% cheaper than the next best alternative.
There is no negotiation with the driver on price or on service quality.
Range of vehicles are available from two wheelers all the way to 17 feet trucks.
Getting vehicle with Porter is easy and fast. The best part is you do not have to negotiate".
2) What will be the platform currency?
"Porter coins" is the platform currency. This is akin to money and can be used to pay for subsequent trips within 30 days from the date of credit.
A potential challenge with the current set up is that the coins can be used to redeem vouchers or transfer money into the bank. Ideally, the only way to use the coins should be on subsequent trips.
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3) Who to ask for referral?
Customers who have high NPS.
Customers who have high TPC (bookings per month).
Customers who have low complaints (TPO).
Customers who use multiple categories of vehicles within Porter.
Customers who have been with Porter for a longer period of time (Retention).
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Happy flows
Booking Flow:
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Invoice Flow:
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4 and 5) How will customer discover referral program? How will they share?
Customer will discover the referral program through the below options.
Refer section in the account page.
Refer in-app and WhatsApp notification after a customer has experienced high rated orders. β
After Porter credits recharge
Tracking screen
Factors to consider while selecting the customers are
NPS (Promoter)
TPC (More than 5 completed orders per month)
TPO ( Less than 0.2 complaints per order per month)
Tenure (has been using Porter for more than 3 month or 10 orders)
Customers who have been with Porter for a longer period of time (Retention).
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5) What will the referral communication say?
Predominantly, it will be a WhatsApp message
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6) How will the referees track their referrals?
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7) How will the referral invite look to a non-user?
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8) How will you encourage referee to continue tracking?
Progressive rewards to incentivize movement towards the next milestone.
Nudges on WhatsApp and Porter App from time to time, without spamming.
Leverage social aspect of showing CO2 emissions reduced due to not only the customer's trips but their referees' trips. Detailed flow including mockups for this are covered in the content loop section.
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Experiment design
Hypothesis: If there is an option for customers to earn meaningful rewards by referring, then the acquisition through referral will increase by X%.
Success Metrics
Guardrails
North star: Acquisitions
LTV / CAC ICP Retention of acquired customers Churn of existing customers Absolute burn amount
Leading metrics: Views of refer page Clicks refer button
Success metrics: Acquisition of new customers TPC of existing customers
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