Marketplaces are famously difficult to start - even Uber just started with black car service in a handful of cities and expanded from that. Find a trusted network of mules as your supply-side and expect to lose some money as you bootstrap. You should already know what your largest city-to-city routes might be at this point, so why not focus on economy of scale there? If you need to rent a cube van to make it happen,…
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#14In your case, I'd probably start by reaching out to businesses in mid-size metro markets, ones where bike couriers don't already exist, and offer to save them on shipping small packages. Build up a list of clientele and encourage them to contact you for jobs when they need to ship small ad-hoc stuff. That should give you an idea of demand. Then start posting on craigslist and facebook looking for delivery drivers, then start match-making. From there encourage the drivers you find to sign up on your platform for future work.
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#15My bigger question is how you would validate this isn't drugs because this seems like the perfect low effort way to send high value drugs.
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#16In this case I think you'd basically have to pay the drivers to make deliveries for yourself, and then work to show the value of this service to those whom need this service and are in a position to take over paying for it.
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#18Same as always, you need market-making: you do it or get someone else to do it. i.e. place resting orders that others will do. e.g. in your case, maybe there is a demand for one specific kind of item: let me say GPUs. Then you be customer number one of your thing, you buy GPUs in one place and have people move them to the other place in their checked bags or whatever. Alternatively, you make the other side of the market that is highly heterogeneous (say, Indian sweets) and you or your family fly between the two locations yourself. It might teach you about the time preference of your clientele etc.
Anyway, it would seem that ultimately all markets need market-makers to bootstrap.
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#19That being said, there is a long-established business for this kind of thing for companies, not individuals, that goes back decades. Here are two examples:
1. 30+ years ago companies would give discounted tickets to people with the condition that they couldn't take any luggage. Why? Because the company would use their luggage allowance to send stuff. I believe it was mostly documents. Discounting an airfare by $500-1000 to send 50-80lb of documents was actually a good deal. I don't know how the logistics worked of baggage drop off and pick up but I believe it was relatively understood that the passenger wasn't responsible for the luggage. I assume the shippers had some kind of commercial relationship with the airline and handled all the customs declarations, import duties, etc;
2. There are times when businesses need to get certain parts or materials in a very time-sensitive manner. For example, I knew someone who worked in oil and gas. An oil platform had shut down production and needed a replacement drill part or something, I forget, and it was over Christmas. They could've ordered it. It would get sent and then sit in a customs warehouse until it gets cleared. That could take days or even a week or more. Not having it was costing half a million dollars a day. So what did they do? They flew someone across the Atlantic to the US to get the parts, pay exorbitant extra baggage fees (it was large) and come back with it. Why? Because passenger baggage would immediately pass through customs at the airport. This would likely save 5-10 days.
So there are some obvious questions to be asked here like:
- How do you make this safe and legal?
- Why isn't this just being Fedexed? Fedex is your cap on fees too;
- How does someone pick this up and drop it off?
- What if they get charged customs fees? How is that recouped?
- Who fills out customs forms?
- What about transiting countries? You may run into issues where something is legal in the source and destination countries but you transit somewhere where it isn't.
I don't know how you bootstrap this because you're going to be dealing with people who have way more experience than you at shiping thing sinternationally. More importantly, they'll have much more volume. That means they can send things via courier at rates you can't dream of getting. So how do you compete with that?
Even in the example mentioned above, the company used an employee to go pick it up. It was an expensive part so an employee could be trusted more than some random could.
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#20A recent episode of [David Senra's podcast with Tony Xu]( https://www.davidsenra.com/episode/tony-xu ), founder of DoorDash has some interesting points on this topic. Essentially there, they restricted the service to one locality, and he and his co-founders were the first drivers. Once demand was proven and slowly scaled, there was an incentive for other drivers to join, and with more drivers it opened up a wider geo…