hero CASE

Warp. Designing and validating a venture in Last Mile logistics.

Anticipating the future of ecommerce in collaboration with a major infrastructure & mobility company.

hero CASE

Warp. Designing and validating a venture in Last Mile logistics.

Anticipating the Future of Ecommerce in collaboration with a major infrastructure & mobility company.

Overview

Joining forces with a target in mind:

Cofound a new venture to conquer this thriving sector

Once Last Mile delivery was identified by our partner as the territory to explore, we were eager to understand the entire universe around it and study a set of different solutions to capture the opportunity. This was the challenge we had ahead of us:

How to optimize the Last Mile distribution process of goods transportation through tech, data and innovative business models?

With that mindset, we started to work together according to the process below:

Set-up

Challenge

Delimiting the challenge to set the project expectations.

INSIGHTS

Discovery

From day one to discovering the industry’s flaws.

Labs

Validation

From identified problems to validated business models.

SET – UP

The context in a few words

We don’t want to lecture you, however we would like to help you understand this case better by sharing our definition of Last Mile:

The concept refers to the step in the logistics process of transporting people and goods that involves covering the last stage of a delivery or a transit, where normally a high quantity of short trips are made and efficiency is harder to achieve.

In this line, Last Mile optimization refers to the changes in the supply chain that companies and their transportation partners are developing to assess the boom of ecommerce and demand for omnichannel retail.

Stepping into the discovery

From a challenge to 2 identified business opportunities

Our Discovery is divided into three phases: Market, Problem and Solution Discovery. In each one we set a different breakdown of learning goals and tools to extract insights and define solutions.

Macro Trends
Key industry drivers
Value chain analysis
Stakeholder mapping
Stakeholder analysis
— Key market insights

Market Discovery

One of the things our team loves the most is to dive into new markets and extract key insights that allow us to define the territories into which we then later seek for the problems to solve. Meanwhile, these were our main findings:

A complex value chain
Direct to Consumer (D2C) is killing it
Regulated goods are out of the picture

Reverse logistics is hugely important

Problem Discovery

This phase started with the definition of 4 territories to look into: Logistics, Business Models, Cities and Customer Experience. Around them we set ourselves different learning goals that were tackled with specific tools. Below we tell you more about the top 3 problems we encountered.

13 in-depth interviews with industry experts
16 in-depth interviews with consumers
7 cities’ mobility regulation analysis
7 cities’ mobility regulation analysis
1 safari to a major distribution centre
3 mystery shoppings in pickup lockers
—Top problems

Free shipping is just a perverse marketing tool.

Convenience comes first for the great majority, while environmental impact is still secondary.

Industry has high labor costs, slow technology adoption and scarce collaboration between players.

Value proposition
Market size
Business model
Customer profiling
Product Roadmap
— Concept decks

Solution Discovery

The Discovery’s final step consists in transforming the problems identified in new business solutions. It’s not only about having creative ideas, but also selecting those who have a better fit with our goal, the venture strategy and its capabilities.

We held a co-creative ideation session using brainswarming to ideate around the main problems identified earlier on.

Divergence

41 ideas

Development

7 ideas

Convergence

2 ideas

Divergence

41 ideas

Development

7 ideas

Convergence

2 ideas

idea 1

Urban Hubs

Also known as ‘dark stores’ or ‘quick commerce’. Operating a network of strategically located spaces to make a more efficient delivery of e-commerce goods.

idea 2

Curbside Management

Optimizing the in & out of parking zones by digitalising curbside areas in key congested locations with a public concession based business model.

Choosing concepts

We did an internal pitch deck competition of both the Curbside Management and Urban Hubs opportunities. The process was backed up by utilizing the Byld Metric, which is made up of over 40 parameters converging around 6 areas. We had to choose one, and we went for Urban Hubs, mainly because our team had great expertise in logistics and Ecommerce and because the timing felt just right.

What is the Byld Metric?

The Byld Metric is a tool we have developed over the years that allows us to be able to compare different opportunities with different lenses: from a corporate venture building, investor and entrepreneur perspective. It is made of more than 50 parameters divided into 5 dimensions that contains both cuantitative and cualitative criteria.

an exciting validation

2 months of really going into the details of Urban Hubs

Here is where our validation loops come into place. We call them loops because it is a continuous process of iterating and learning that allows us to minimize the risks when launching a new business.

Loop 1

Once we decided that our solution was to going to be focused on ‘hubs’ we brainswarmed together yet again. Having already identified some key areas to work around (Value Prop, Op Model, Clients/BM and Key Partners), the session’s objective was to define a set of learning goals to investigate and experiments to be tested to validate those learning goals. After all this was digested, we prioritized 4 learning goals to face Loop1: 

Competitive analysis
Client definition
Business model (revisited)

Real Estate analysis

Mystery shopping
In-depth interviews
Client & Stakeholder personas
Operations blueprint
Location analysis
— Product / Market Fit

Covering the 80% of the demand with 3, 4 and 5 hubs:

Benchmark analysis
Brand construction
Commercial brochure
Financial modelling
Real Estate analysis
— Pilot a Fulfillment Operation

Loop 2

Our objective was to strengthen the value proposition of starting an Urban Fulfillment business in Madrid by testing the demand, get solid data behind the analysis, identify exactly where it could start and how and go the extra (and last) mile by conducting a small pilot.

Crossing all the T’s
Learning by doing

Outcome & Deliverables

Meet Warp

Warp operates a network of urban warehouses to bring e-commerce inventory closer to final customers. Warp offers end-to-end fulfillment solutions that unlock same-day delivery to e-commerce shops. Our customers can externalize 100% of their logistics with us: their stock is stored inside our urban warehouses and when an order is placed, we deliver it to the end customer.

We gave it a visual identity

Warp provides seamless, fast, and reliable, turnkey logistics solutions to create better cities thanks to the power of data and we needed to comunicate that not only with words but also with what the user sees.

Warp does not end here, we will keep you updated ✨

We are ready to build with you

We co-found new businesses and impact-driven innovation initiatives by partnering with the world’s leading corporations and most brilliant entrepreneurs, taking joint risks and participating in the success of every project we are part of.