Drone Your

Stuff
Proposition by David Andras Fuzes
Drone Your Stuff is a person-to-person delivery system offering quick and cheap
transportation of small packages. A customer sets the starting point and destination and
pays for the delivery. Next a drone moves to the location and the customer can insert their
package. Having closed the holder, the drone takes off and moves to the given destination
point. The recipient takes the package and the drone flies back to the base or makes another
delivery. The system and the drones all operate entirely automatically.

We all know it is going to happen. The only question is

who will make it happen and earn a lot of money.

How might we statement

How might we

enable

everyday people

(ex. assist, help, enable)

to

Persona

deliver their small packages within city

Need

because

they would not pay high fees.

Insight

Details
Order
First a customer types in the address or coordinates of the starting point (red circle) and
destination of the delivery. The software immediately offers a number of possible locations
(blue circles) around the given addresses where the drone can land and the package can be
inserted. Next step is the type of delivery. Standard deliveries include a package up to 3
kilograms

and

30x50x50-centimeters,

while

Premium deliveries may exceed these restrictions to

some extent and offer a number of other features
such as online monitoring, even quicker delivery
and compensation in case of delay. Final step is
payment. The price is independent from delivery
distance (within city) and can be paid by
credit/debit card, phone message or uploaded
credits on personal account. However, registration
is not required to place an order.

Delivery
Once the payment is confirmed a drone sets out from the base or a previous delivery and
approaches the selected starting point. After landing the customer has 10 minutes to insert the
package with suitable size and weight and close the holder. In case the customer fails to do so,
the drone takes off without the package and the payment will not be refunded. If the package
fits the holder and the door is closed the drone starts off, moves to the destination and lands.
The recipient also has 10 minutes to show up and open the holder after arrival; otherwise the
package will be taken back to the base and will be delivered later.

Safety
The entire system and its efficiency greatly rely on automated mechanism and this involves a
few precautions. Prearranged landing locations need to be used, since drones must not violate
private properties, hit electric wires, disturb traffic or cause any injury or damage. Also drones
need to be equipped with sensors in order to eliminate any unexpected event such as passing
pedestrians or obstructive objects. However, human assistance is fundamental thus a 24-hour
hotline and service cars need to fix unexpected events. Drone deliveries cannot be used in
storm or windy weather.

Business Model Canvas

Key Partners
Drone and accessory suppliers
Who are our Key Partners?
Who are our Key Suppliers?
Which Key Resources are we acquiring from partners?
Which Key Activities do partners perform?

IT and technical support

Due to demand for the delivery service and amortization drone and equipment supply is
a continuous issue, thus long-term relation with producers is necessary. Also a strong
and reliable software background is fundamental, which needs to be updated and
managed later as well.

Key Activities
What Key Activities do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?

Delivery from one person to another

Online and smartphone app access
Online paying system
Continous monitoring of drones

The model stands on four pillars. First a customer selects the starting point and the
destination of delivery and pays online accordingly. Once the payment is confirmed, a
drone sets out to the given location and the customer inserts the package into the drone.
Having closed the holder the drone flies to the destination point, where the recipient can
take the package. Malfunctions or unexpected events require continuous monitoring of
drones 24 hours a day, which means a service car and customer service hotline.

Key Resources
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue Streams?

Human resource
Financial resource

The idea highly relies on financial resources, which includes the drones, salaries, but
most importantly the operating software. 24-hour monitoring of drone activity,
maintenance and call center also involves a few employees.

Value Proposition
What value do we deliver to the customer?
Which one of our customers problems are we
helping to solve?
What bundles of products and services are we
offering to each Customer Segment?
Which customer needs are we satisfying?

Quick & cheap delivery

Home access
Premium delivery

Our competitive advantage is the quickness and relatively low price of delivery. With
drones it is possible to carry a package from one point to another within an hour in a
city of 5 million people. On the other hand expenditures on fuel and manual workers
may also be spared, since the system is automated. Easy online accessibility and
optional starting point spares time to the customer not to walk to post offices. For a
higher price premium customers may follow the route, order even quicker delivery and
send heavier packages.

Customer Relationships
What type of relationship does each of our
Customer Segments expect us to establish
and maintain with them?
Which ones have we established?
How are they integrated with the rest of our
business model?
How costly are they?

Call center

Emergency service

Automated system

The entire system is meant to be completely automated and solely monitored.

Consequently the website and the smartphone applications are the only means of
customer relationship in case of ordinary delivery. However, to report problems, inquire
or give feedbacks, a 24-hour hotline is needed to operate. Also, to assure customers of
the safety of delivery, the system provides emergency service in case something
happens to the drones. This involves a car and equipped staff to make sure the package
arrives at the recipient and/or the drone is fixed.

Channels
Through which Channels do our Customer Segments
want to be reached?
How are we reaching them now?
How are our Channels integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?

Delivery-related businesses

Growth hacking

Customers will be reached via delivery-related businesses with small products, for
example online shopping sites (Ebay), pizza restaurants, cosmetic manufacturers, etc.
The features of the idea allow us to do growth hacking as well. One of these is the
drones flying above the city carrying flags. Since most advertisements we see are on
ground flying objects would definitely attract attention. Also games can be played. A
drone flies around the city for a week and the person who was within 50 meters the
most wins a present. And last but not least a number of drones can together perform preprogrammed shows in the air by changing their formations.

Customer Segments
For whom are we creating value?
Who are our most important customers?

Residents, businesses of large cities

Open to innovative means
Uses regular delivery services

For economic and technical reasons the targeted customer segment is the people living
in large cities (over 1 million). Furthermore conservative people in terms of delivery are
out of our scope, we seek customers who trust and are open to innovative means of
sending packages. Yet, not only do they need to be open to our solution, but they also
need to use regular delivery services, to which we are now offering a better solution.
Also, Drone Your Stuff targets delivery-related businesses with small products (pizza
restaurants, cosmetic manufacturers, newspapers, etc.) with the need to make deliveries
frequently.

Cost Structure
What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?

Drones

Operating Software

Website and smartphone application

Salaries

The idea involves significant investments at the beginning. This means the purchase of
the drone fleet with all the equipment, developing the operating software for each
activity (delivery monitoring, payment system, etc), and creating customer surfaces
online and for smartphones. Aside from these fixed costs salaries of staff, amortization
of drones and software maintenance compose further expenditures. Presumably costs of
the automated system will be the highest, which involves sensors, precise coordination
and reliable driving.

Revenue Streams
For what value are our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to
overall revenues?

Quick delivery

Premium delivery

Customers can pay with credit/debit card, SMS or uploaded credit prior to delivery.
Once a payment is confirmed a drone sets out to the given location. It would also be
possible to upload some credit to ones account and use it upon service. It is not
required but could offer a few more features, such as saving frequently used locations or
set automated delivery orders.

Summary
In the past years drones have penetrated several fields from military
application through wildlife surveillance to photography. Now we
have the technology to exploit these machines even more, also for the
short-distance deliveries. What I am proposing is a fully automated
customer-to-customer delivery business. The idea requires initial
investments, but later operation is very cost-efficient and highly
profitable. It is only the matter of time drone deliveries set in, the only
question is: Who will make it happen?

Sources of used images:

Frontpage picture of a drone is from Connect.de
URL : http://www.connect.de/kaufberatung/bluetooth-gadgets-drohnen-quadrocopter-helis-co-fuersmartphones-1545092.html
Downloaded: 2014.08.14
Icons used for the bullets of the Business Canvas Modell are from Businessmodelgeneration.com.
URL: http://www.businessmodelgeneration.com/canvas/bmc
Downloaded: 2014.07.30.
The map for Starting point illustration is from Maps.google.com