you [Music]
[Music]
[Music] what you’ve seen in the past few years
what you’ve seen in the past few years
what you’ve seen in the past few years is that the model completely shifted
is that the model completely shifted
is that the model completely shifted from these guys you know like the UPS
from these guys you know like the UPS
from these guys you know like the UPS the FedEx all the guys that have assets
the FedEx all the guys that have assets
the FedEx all the guys that have assets all the guys that I’ve like massive
all the guys that I’ve like massive
all the guys that I’ve like massive fleet of drivers massive fleet of of
fleet of drivers massive fleet of of
fleet of drivers massive fleet of of course to a model that is completely
course to a model that is completely
course to a model that is completely different right and I mean considering
different right and I mean considering
different right and I mean considering our young you are lucky you probably
our young you are lucky you probably
our young you are lucky you probably have used a lot of these services you
have used a lot of these services you
have used a lot of these services you know whether it’s like services or
know whether it’s like services or
know whether it’s like services or parcel delivery that is based on
parcel delivery that is based on
parcel delivery that is based on on-demand
on-demand
on-demand you know that is based on you know I
you know that is based on you know I
you know that is based on you know I want like immediate gratification in 30
want like immediate gratification in 30
want like immediate gratification in 30 minutes all that type of stuff so there
minutes all that type of stuff so there
minutes all that type of stuff so there is a whole hordes of companies that
is a whole hordes of companies that
is a whole hordes of companies that started in Silicon Valley but also in
started in Silicon Valley but also in
started in Silicon Valley but also in Europe and year that came into more the
Europe and year that came into more the
Europe and year that came into more the outsource model okay if you’re if you’re
outsource model okay if you’re if you’re
outsource model okay if you’re if you’re if you look slightly deeper into what it
if you look slightly deeper into what it
if you look slightly deeper into what it means by also by in-house versus
means by also by in-house versus
means by also by in-house versus outsource you realize that so when we
outsource you realize that so when we
outsource you realize that so when we talk about in-house model we talk about
talk about in-house model we talk about
talk about in-house model we talk about ownership of assets you own the trucks
ownership of assets you own the trucks
ownership of assets you own the trucks you own the cars you own the bike –
you own the cars you own the bike –
you own the cars you own the bike – we’re talking about milk run bases milk
we’re talking about milk run bases milk
we’re talking about milk run bases milk one means that you’re go to a single
one means that you’re go to a single
one means that you’re go to a single point of you go to one where us to one
point of you go to one where us to one
point of you go to one where us to one place okay and then you pick multiple
place okay and then you pick multiple
place okay and then you pick multiple tasks whether it’s packages whether it’s
tasks whether it’s packages whether it’s
tasks whether it’s packages whether it’s people carpooling think about packages
people carpooling think about packages
people carpooling think about packages and people at the same time it’s a milk
and people at the same time it’s a milk
and people at the same time it’s a milk run basis and then three is like
run basis and then three is like
run basis and then three is like end-to-end control of operations it’s
end-to-end control of operations it’s
end-to-end control of operations it’s your own stuff it’s your own assets we
your own stuff it’s your own assets we
your own stuff it’s your own assets we are full control on the other hand you
are full control on the other hand you
are full control on the other hand you have the completely outsourced model
have the completely outsourced model
have the completely outsourced model that goes with no ownership of assets
that goes with no ownership of assets
that goes with no ownership of assets think about the uber off right think
think about the uber off right think
think about the uber off right think about you ever think about Karim
about you ever think about Karim
about you ever think about Karim right so no ownership of assets
right so no ownership of assets
right so no ownership of assets point-to-point delivery network and rely
point-to-point delivery network and rely
point-to-point delivery network and rely on some third party to be able to do the
on some third party to be able to do the
on some third party to be able to do the job okay and I would say the the fourth
job okay and I would say the the fourth
job okay and I would say the the fourth one is like immediate gratification
one is like immediate gratification
one is like immediate gratification right you want a car now okay or you
right you want a car now okay or you
right you want a car now okay or you want your grocery now all this stuff is
want your grocery now all this stuff is
want your grocery now all this stuff is based on mostly based on app and
based on mostly based on app and
based on mostly based on app and obviously like this this trend has been
obviously like this this trend has been
obviously like this this trend has been as happen because there is lots of
as happen because there is lots of
as happen because there is lots of challenges associated with having a big
challenges associated with having a big
challenges associated with having a big fleet you remember like these guys on
fleet you remember like these guys on
fleet you remember like these guys on the on the left on the left side of the
the on the left on the left side of the
the on the left on the left side of the after of the chart and your
after of the chart and your
after of the chart and your this is why all this on-demand logistics
this is why all this on-demand logistics
this is why all this on-demand logistics have been appearing is because one you
have been appearing is because one you
have been appearing is because one you have a legacy IT system right a lot of
have a legacy IT system right a lot of
have a legacy IT system right a lot of this a lot of this logistics company are
this a lot of this logistics company are
this a lot of this logistics company are being built on a different model right
being built on a different model right
being built on a different model right I’ve been built on you know like 40 50
I’ve been built on you know like 40 50
I’ve been built on you know like 40 50 some of them like hundred years ago
some of them like hundred years ago
some of them like hundred years ago under 20 years ago on a system that is
under 20 years ago on a system that is
under 20 years ago on a system that is completely different so that’s one two
completely different so that’s one two
completely different so that’s one two they focused on return on assets most of
they focused on return on assets most of
they focused on return on assets most of this company are really big okay talking
this company are really big okay talking
this company are really big okay talking about IPO and I can ascertain there they
about IPO and I can ascertain there they
about IPO and I can ascertain there they will be trading return on assets versus
will be trading return on assets versus
will be trading return on assets versus customer satisfaction and that’s
customer satisfaction and that’s
customer satisfaction and that’s critical to understand as you’ll
critical to understand as you’ll
critical to understand as you’ll understand later on and then three is
understand later on and then three is
understand later on and then three is based again on the central warehouse
based again on the central warehouse
based again on the central warehouse system okay good basically a feed off
system okay good basically a feed off
system okay good basically a feed off drivers going to one place picking
drivers going to one place picking
drivers going to one place picking undred thousand ten thousand packages
undred thousand ten thousand packages
undred thousand ten thousand packages and then doing the deliveries but the
and then doing the deliveries but the
and then doing the deliveries but the problem is that this model again as
problem is that this model again as
problem is that this model again as which is limits okay and that’s why you
which is limits okay and that’s why you
which is limits okay and that’s why you can see you know there was like this
can see you know there was like this
can see you know there was like this flourishing honestly like ten hundreds
flourishing honestly like ten hundreds
flourishing honestly like ten hundreds of e-commerce company hundreds of
of e-commerce company hundreds of
of e-commerce company hundreds of logistics companies that have been built
logistics companies that have been built
logistics companies that have been built in the past in the past I would say
in the past in the past I would say
in the past in the past I would say twenty years especially in the u.s. to
twenty years especially in the u.s. to
twenty years especially in the u.s. to try to go completely on the opposite but
try to go completely on the opposite but
try to go completely on the opposite but now and you know like if you remember
now and you know like if you remember
now and you know like if you remember like the statistic that was in 2014 all
like the statistic that was in 2014 all
like the statistic that was in 2014 all the logistics this that has been
the logistics this that has been
the logistics this that has been financed and funded by Silicon Valley
financed and funded by Silicon Valley
financed and funded by Silicon Valley investors 70% add on the title the uber
investors 70% add on the title the uber
investors 70% add on the title the uber off okay so it just gives you an idea on
off okay so it just gives you an idea on
off okay so it just gives you an idea on how big and how it became obvious to go
how big and how it became obvious to go
how big and how it became obvious to go to the completely on demand model but
to the completely on demand model but
to the completely on demand model but the problem is that now we’ve seen I
the problem is that now we’ve seen I
the problem is that now we’ve seen I mean in the past 20 years now we know
mean in the past 20 years now we know
mean in the past 20 years now we know how this model behaves okay and we’ve
how this model behaves okay and we’ve
how this model behaves okay and we’ve seen the pitfalls of this model okay so
seen the pitfalls of this model okay so
seen the pitfalls of this model okay so the first one is is legal right and you
the first one is is legal right and you
the first one is is legal right and you know I mean if you follow a little bit
know I mean if you follow a little bit
know I mean if you follow a little bit about what’s going on in the last mile
about what’s going on in the last mile
about what’s going on in the last mile on the last mile industry one is legal
on the last mile industry one is legal
on the last mile industry one is legal it doesn’t matter whether you don’t
it doesn’t matter whether you don’t
it doesn’t matter whether you don’t consider that this driver performing
consider that this driver performing
consider that this driver performing that task for you is not an employee the
that task for you is not an employee the
that task for you is not an employee the judge decide otherwise okay and the key
judge decide otherwise okay and the key
judge decide otherwise okay and the key here is that in the US the way they
here is that in the US the way they
here is that in the US the way they think about it is that if that driver
think about it is that if that driver
think about it is that if that driver makes a fair amount of money and fair
makes a fair amount of money and fair
makes a fair amount of money and fair amount is being defined at the state
amount is being defined at the state
amount is being defined at the state level if they make a fair amount of
level if they make a fair amount of
level if they make a fair amount of money through your device that consider
money through your device that consider
money through your device that consider they are being considered whether you
they are being considered whether you
they are being considered whether you want it or not as an employee
want it or not as an employee
want it or not as an employee and therefore you have liabilities
and therefore you have liabilities
and therefore you have liabilities associated with it so it was one of the
associated with it so it was one of the
associated with it so it was one of the key advantage of the outsourced model
key advantage of the outsourced model
key advantage of the outsourced model that made that is now gone the second
that made that is now gone the second
that made that is now gone the second one is is definitely low stickiness
one is is definitely low stickiness
one is is definitely low stickiness right you guys are aware of you know the
right you guys are aware of you know the
right you guys are aware of you know the gig economy and like there is now you
gig economy and like there is now you
gig economy and like there is now you can see you can see a lot of drivers
can see you can see a lot of drivers
can see you can see a lot of drivers again in the US the year that there are
again in the US the year that there are
again in the US the year that there are multiple apps and are literally deciding
multiple apps and are literally deciding
multiple apps and are literally deciding I’ll be charging almost like traders to
I’ll be charging almost like traders to
I’ll be charging almost like traders to see how they’re going to spend that time
see how they’re going to spend that time
see how they’re going to spend that time on what platform what paths they’re
on what platform what paths they’re
on what platform what paths they’re going to take which basically allows to
going to take which basically allows to
going to take which basically allows to have I mean triggers high attrition
have I mean triggers high attrition
have I mean triggers high attrition between drivers and requires like
between drivers and requires like
between drivers and requires like triggers very low loyalty between the
triggers very low loyalty between the
triggers very low loyalty between the driver level and at the end of the day
driver level and at the end of the day
driver level and at the end of the day all three of these or two of these
all three of these or two of these
all three of these or two of these issues triggers the low consistency of
issues triggers the low consistency of
issues triggers the low consistency of customer experience okay like you don’t
customer experience okay like you don’t
customer experience okay like you don’t know and I mean you’ve seen what’s
know and I mean you’ve seen what’s
know and I mean you’ve seen what’s happening with uber in India and so on
happening with uber in India and so on
happening with uber in India and so on there is tons of problem with about with
there is tons of problem with about with
there is tons of problem with about with you being able to vet the people that
you being able to vet the people that
you being able to vet the people that are going to do the job okay and you can
are going to do the job okay and you can
are going to do the job okay and you can do and I think it’s not it’s just it’s
do and I think it’s not it’s just it’s
do and I think it’s not it’s just it’s just a problem that’s going to be
just a problem that’s going to be
just a problem that’s going to be never-ending you know when you grind
never-ending you know when you grind
never-ending you know when you grind that fast it’s very difficult for
that fast it’s very difficult for
that fast it’s very difficult for companies to be able to vet their supply
companies to be able to vet their supply
companies to be able to vet their supply and to have to look the same type of
and to have to look the same type of
and to have to look the same type of consistency of service across so we took
consistency of service across so we took
consistency of service across so we took the example of our joy and how they
the example of our joy and how they
the example of our joy and how they actually went down because of the lack
actually went down because of the lack
actually went down because of the lack of quality assurance and platform
of quality assurance and platform
of quality assurance and platform leakage okay so this is this is this is
leakage okay so this is this is this is
leakage okay so this is this is this is this is audience right and then you so
this is audience right and then you so
this is audience right and then you so because a lot of these companies have
because a lot of these companies have
because a lot of these companies have been aware of these problems that
been aware of these problems that
been aware of these problems that they’re trying to to find solutions
they’re trying to to find solutions
they’re trying to to find solutions right so if you look at ship which is
right so if you look at ship which is
right so if you look at ship which is one of the largest on-demand
one of the largest on-demand
one of the largest on-demand company in the u.s. they really try to
company in the u.s. they really try to
company in the u.s. they really try to tackle one two and three right in the
tackle one two and three right in the
tackle one two and three right in the problems that I just mentioned so one
problems that I just mentioned so one
problems that I just mentioned so one they move all the careers they didn’t
they move all the careers they didn’t
they move all the careers they didn’t wait for that they didn’t wait for the
wait for that they didn’t wait for the
wait for that they didn’t wait for the Jersey tell them take back state on how
Jersey tell them take back state on how
Jersey tell them take back state on how to behave with the drivers the Moodle
to behave with the drivers the Moodle
to behave with the drivers the Moodle most of it or all of their careers all
most of it or all of their careers all
most of it or all of their careers all of their drivers into an in-house model
of their drivers into an in-house model
of their drivers into an in-house model I basically becoming you know the factor
I basically becoming you know the factor
I basically becoming you know the factor employees hi and then they really they
employees hi and then they really they
employees hi and then they really they they put a lot of intention with the gas
they put a lot of intention with the gas
they put a lot of intention with the gas to varying the workforce with regards to
to varying the workforce with regards to
to varying the workforce with regards to training and again retention so this
training and again retention so this
training and again retention so this this is you know like we’re you know
this is you know like we’re you know
this is you know like we’re you know again like I think this companies have
again like I think this companies have
again like I think this companies have done a great job to be
done a great job to be
done a great job to be or to tackle these issues it’s
or to tackle these issues it’s
or to tackle these issues it’s never-ending but I think that there is
never-ending but I think that there is
never-ending but I think that there is quite a lot of a lot of things that has
quite a lot of a lot of things that has
quite a lot of a lot of things that has been done but ultimately and you know
been done but ultimately and you know
been done but ultimately and you know and this is what this is what I want to
and this is what this is what I want to
and this is what this is what I want to address they fail all these models fail
address they fail all these models fail
address they fail all these models fail to fail to to be lean and and this is
to fail to to be lean and and this is
to fail to to be lean and and this is relax elect bear with me on the macro
relax elect bear with me on the macro
relax elect bear with me on the macro level macroeconomic level model the
level macroeconomic level model the
level macroeconomic level model the maximize efficiency will win no matter
maximize efficiency will win no matter
maximize efficiency will win no matter what
what
what and just think just think about a
and just think just think about a
and just think just think about a scenario okay you’re in Tower one okay
scenario okay you’re in Tower one okay
scenario okay you’re in Tower one okay whatever you wherever it is and you want
whatever you wherever it is and you want
whatever you wherever it is and you want to send a package to your friend in
to send a package to your friend in
to send a package to your friend in tower be say ten kilometres away okay
tower be say ten kilometres away okay
tower be say ten kilometres away okay and then at the one minute later another
and then at the one minute later another
and then at the one minute later another person in tower a wants to send another
person in tower a wants to send another
person in tower a wants to send another package to tower B the on-demand economy
package to tower B the on-demand economy
package to tower B the on-demand economy will treat that as two separate requests
will treat that as two separate requests
will treat that as two separate requests I and I know that right so hundred
I and I know that right so hundred
I and I know that right so hundred hundred people live in a concert you got
hundred people live in a concert you got
hundred people live in a concert you got a hundred Bieber cars calm okay so they
a hundred Bieber cars calm okay so they
a hundred Bieber cars calm okay so they all come to the same point and then
all come to the same point and then
all come to the same point and then obviously goes to all the delivery
obviously goes to all the delivery
obviously goes to all the delivery points on all the destination right
points on all the destination right
points on all the destination right while the consolidation model and we’re
while the consolidation model and we’re
while the consolidation model and we’re you know like if you look at the the
you know like if you look at the the
you know like if you look at the the traditional logistics will consider this
traditional logistics will consider this
traditional logistics will consider this as batching orders and being able to do
as batching orders and being able to do
as batching orders and being able to do either carpooling for people or or
either carpooling for people or or
either carpooling for people or or regular regular deliveries which means
regular regular deliveries which means
regular regular deliveries which means that which means three things okay which
that which means three things okay which
that which means three things okay which means that one the on-demand economy
means that one the on-demand economy
means that one the on-demand economy thinks about local optimum okay for you
thinks about local optimum okay for you
thinks about local optimum okay for you as a consumer the only thing that
as a consumer the only thing that
as a consumer the only thing that matters is that how fast you’re gonna
matters is that how fast you’re gonna
matters is that how fast you’re gonna get the car but at the macro level this
get the car but at the macro level this
get the car but at the macro level this is horrible you can have like ten cars
is horrible you can have like ten cars
is horrible you can have like ten cars that are being idle that are just
that are being idle that are just
that are being idle that are just running around to make sure that you
running around to make sure that you
running around to make sure that you have that you have the better customer
have that you have the better customer
have that you have the better customer experience okay so that’s one – it’s
experience okay so that’s one – it’s
experience okay so that’s one – it’s extremely inefficient okay if you look
extremely inefficient okay if you look
extremely inefficient okay if you look at resources and don’t think only about
at resources and don’t think only about
at resources and don’t think only about resources as as as Natural Resources
resources as as as Natural Resources
resources as as as Natural Resources even though I mean is going to become
even though I mean is going to become
even though I mean is going to become one of the challenge in the next I mean
one of the challenge in the next I mean
one of the challenge in the next I mean if for sure for the next generation is
if for sure for the next generation is
if for sure for the next generation is that it’s not only resources it’s about
that it’s not only resources it’s about
that it’s not only resources it’s about time it’s about people all right it’s
time it’s about people all right it’s
time it’s about people all right it’s time it’s extremely suboptimal you know
time it’s extremely suboptimal you know
time it’s extremely suboptimal you know like for example if you take the example
like for example if you take the example
like for example if you take the example that I just took you know these two
that I just took you know these two
that I just took you know these two tasks could have been work completed by
tasks could have been work completed by
tasks could have been work completed by one driver waiting for one minute to get
one driver waiting for one minute to get
one driver waiting for one minute to get the other packages and being able to
the other packages and being able to
the other packages and being able to perform the same level of tasks
perform the same level of tasks
perform the same level of tasks with like 50% of the resources both time
with like 50% of the resources both time
with like 50% of the resources both time and gas and then three at the end of the
and gas and then three at the end of the
and gas and then three at the end of the day what we thought was scalable okay
day what we thought was scalable okay
day what we thought was scalable okay because we always thought that the
because we always thought that the
because we always thought that the on-demand economy was completely
on-demand economy was completely
on-demand economy was completely scalable what we thought was capable
scalable what we thought was capable
scalable what we thought was capable becomes completely and scalable like you
becomes completely and scalable like you
becomes completely and scalable like you cannot have tank drivers going to one
cannot have tank drivers going to one
cannot have tank drivers going to one tower let alone 100 drivers go into one
tower let alone 100 drivers go into one
tower let alone 100 drivers go into one where else each of them picking one
where else each of them picking one
where else each of them picking one package is just it just does not make
package is just it just does not make
package is just it just does not make sense at scale so I mean just and that’s
sense at scale so I mean just and that’s
sense at scale so I mean just and that’s my last point I think at the end of the
my last point I think at the end of the
my last point I think at the end of the day we need to take the best of both
day we need to take the best of both
day we need to take the best of both words right and the companies that are
words right and the companies that are
words right and the companies that are you know that are working whether
you know that are working whether
you know that are working whether they’re coming from the in-house
they’re coming from the in-house
they’re coming from the in-house perspective or from the outsource we
perspective or from the outsource we
perspective or from the outsource we need an hour regime moving to somewhere
need an hour regime moving to somewhere
need an hour regime moving to somewhere in the middle right we talked about ship
in the middle right we talked about ship
in the middle right we talked about ship for example we talked about some some
for example we talked about some some
for example we talked about some some other companies but I believe that even
other companies but I believe that even
other companies but I believe that even so like the next model and this is a
so like the next model and this is a
so like the next model and this is a little bit what we were trying to work
little bit what we were trying to work
little bit what we were trying to work on and believe me this is just extremely
on and believe me this is just extremely
on and believe me this is just extremely complicated is try to see whether we can
complicated is try to see whether we can
complicated is try to see whether we can find something around here right
find something around here right
find something around here right something the batch is what you and what
something the batch is what you and what
something the batch is what you and what our generation wants with the guts to
our generation wants with the guts to
our generation wants with the guts to on-demand economy and predictability and
on-demand economy and predictability and
on-demand economy and predictability and still matching what makes their in-house
still matching what makes their in-house
still matching what makes their in-house model great which is you know like low
model great which is you know like low
model great which is you know like low cost for delivery and and being able to
cost for delivery and and being able to
cost for delivery and and being able to have like a scalable operations for
have like a scalable operations for
have like a scalable operations for businesses so that’s it thank you and
”
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