Locodels is sharing economy based city delivery service. We focus on the same day, door to door, city delivery service solving the last mile gap for e-commerce and retailers. Our sweet spot B2B customers are small companies that need daily delivery services of up to 10 packages, but it is not a limit. We offer them a price that is 20% below the market level, just as they would get from classic delivery companies for the count of 20 or higher daily deliveries. Our couriers are regular people with some spare time, taxi/Uber drivers or couriers from existing classic delivery companies.
We do not focus on route optimization for the couriers. Rather, we tend to have a large number of couriers in each city (internally addressed as region) that are able to do the package delivery as fast as possible. Couriers have to pass an one on one interviews with our crew. After successfully talks, the courier is approved and able to do the delivery. They can use bicycles, motorcycles, cars or trucks. Also, for smaller packages, they are allowed to use public transportation as well. Each region has its own sales team that handles customer acquisition – in that particular way we’re not much different than any other classic delivery company. When it comes to package delivery itself, we focus on same day door to door delivery providing the fastest way for the express delivery. We discourage any overnight deliveries, but still, have 0.6% of those.
Our business model is based on commission fees. Couriers are paid 70% of the delivery price and we keep 30%. We sell additional and complementary services to raise our income – insurance, documents handling.
We offer three payment models to our customers: classic credit card payment, prepaid option and postpaid option. Classic credit card payments are used for one-by-one delivery payments. With prepaid model, our customers deposit certain amount that depends on the region itself. That model is mostly used by companies where CEO or CFO hold the credit card and administration guys have access to our system. Postpaid option (weekly, bi-weekly, monthly) is reserved for the biggest clients found in the retail area.
We are incorporated in London, UK. Two co-founders come from Zagreb, Croatia and the third one is from Jeddah, Saudi Arabia. Our first two markets are Croatia and Saudi Arabia.