🚚 Acquisition project | Porter.in
🚚

Acquisition project | Porter.in

Context

Product understanding

Porter is India's Largest Marketplace for On-demand Intracity Logistics with the mission of "Moving a billion dreams, one delivery at a time"​

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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.

​

ICP prioritization​

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

Low​


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

Shadowfax, Swiggy Genie,
Uber Connect, Rapido Parcel

Two wheeler: Retail, Enterprise

Low price in Hyperlocal

High price in longer trips

Value for money price for long distance trips
Consistent service quality



Market sizing

Sources:

Source 1: World Bank - India

Source 2: "Logistics cost in India" report by National Council of Applied Economic Research (NCAER)

Source 3: "Intracity Logistics Market in India" RedCore report, 2021

  1. 2022 GDP of India is USD 3420 Bn (Source 1).
  2. GDP growth is 8.2% (Source 1).
  3. 2023 GDP if India is USD 3700 Bn (Calculated from 1 and 2).
  4. Logistics is ~8.4% of GDP (Source 2) which translates to USD 309 Bn.
  5. Road logistics is 75% of the total logistics (Source 3) which translates to USD 232 Bn.
  6. 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

  1. Top 50 cities intracity logistics is 50% of the intracity road logistics (Source 3) which translates to USD 16 Bn.
  2. 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

  1. 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.

​

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.

​

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.



Acquisition Channels - Content loops, Product integrations, Referral

1) Content loops

Types of content that the customer would like to share:

​

Content

Rationale

Target Audience

Motivation

Pollution saved

Pollution reduction is due to

  1. Use of EVs
  2. Reduction in empty or dry runs due to higher utilization

Broadcast to everyone

Social image around contributing to reduce global warming

Logistics cost saved

Logistics cost reduction is due to

Reduction in empty or dry runs due to higher utilization

Fixed costs can now get distributed over more trips
This leads to lower cost per trip

SME friends, Retail friends

Help the friends to reduce their cost of logistics also


​

Hook

Content creator

Distributor

Pollution (CO2) saved
by "green" rides

Porter:
At the end of every trip - In-app screen, notification
Weekly - WhatsApp message, in-app screen, notification
Monthly - WhatsApp message, in-app screen, notification
Yearly - WhatsApp message, in-app screen, notification

Customer through
WhatsApp status
WhatsApp group

Facebook group

Logistics cost saved
by using Porter

Porter:
Monthly - WhatsApp message, in-app screen, notification
Yearly - WhatsApp message, in-app screen, notification

Customer through
WhatsApp group

Facebook group


Experiment design

"Pollution (CO2) saved" content

​Hypothesis

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.

​

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

​

Lagging:
# of first orders placed (acquisition)

​

Customer and Prospect Flow​

image.png​

​

Product Wireframes

Customer:

image.png​


Prospect:

image.png​


"Logistics cost saved" content - The hypothesis changes. The metrics, flows, wireframes largely remain same as above.

​Hypothesis

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

​

Lagging:
# of first orders placed (acquisition)

​

Customer and Prospect Flow​

​image.png

​

Product wireframes

Customer:

image.png​

Prospect:

​image.png


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.

​

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

​

New customers

Success Metrics

Guardrails

North Star: Acquisitions

LTV / CAC
Persona of the customers
Cancellations

​Leading metrics:
Clicks on the maps widget

Success metrics:
First orders placed through the maps entry point

​



3) Referral

1) What is the brag worthy value of the product?

  1. Vehicle is at the pick up location within 15 minutes of booking.
  2. Cost is 15% to 20% cheaper than the next best alternative.
  3. There is no negotiation with the driver on price or on service quality.
  4. 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.

​

image.png​

​

3) Who to ask for referral?

  1. Customers who have high NPS.
  2. Customers who have high TPC (bookings per month).
  3. Customers who have low complaints (TPO).
  4. Customers who use multiple categories of vehicles within Porter.
  5. Customers who have been with Porter for a longer period of time (Retention).

​

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.

  1. Refer section in the account page.
    image.png
  2. Refer in-app and WhatsApp notification after a customer has experienced high rated orders.
    image.png​
  3. After Porter credits recharge
    image.png
  4. Tracking screen
  5. Factors to consider while selecting the customers are
    1. NPS (Promoter)
    2. TPC (More than 5 completed orders per month)
    3. TPO ( Less than 0.2 complaints per order per month)
    4. Tenure (has been using Porter for more than 3 month or 10 orders)
    5. Customers who have been with Porter for a longer period of time (Retention).

​

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?

  1. Progressive rewards to incentivize movement towards the next milestone.
    image.png
  2. Nudges on WhatsApp and Porter App from time to time, without spamming.
    image.png
  3. 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.
    image.png

​

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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