Fred Cook

Uber and Lyft both launched UberX in Raleigh on the same day. Fast forward 6 months, Uber had 90% market share in the area. Here's how we won: 1. Uber's main KPI at the time was ETAs. When a rider was ready to take a trip, we wanted them to get a driver in under 5 minutes. So we launched in a very small geographic area, and our team worked our butts off to match rider and driver demand so ETAs were under 5 minutes. Thus, we launched Uber in Raleigh in a 7 mile circle in downtown Raleigh in April 2014. Lyft, on the other hand, launched in Raleigh, Durham, and Chapel Hill on that same day. They thought covering the entire area (each of those areas are 30-45 min from each other) would help them win since they were first. However, their result was 10-20 minute ETAs for the entire area. So while Uber wasn't available in Durham & Chapel Hill, Lyft's experience was already sub-par. 2. For our team to hit 5 minute ETAs in our small geo, we needed more drivers on the road AND we needed existing drivers to drive when the demand was. So we did tons of top of funnel marketing: ads, driver referrals, and flyers were the best performing methods. And for existing drivers, we looked closely at the real-time data and we'd design targeted incentives. When we saw rider demand not being met, we'd target X number of drivers with extra financial incentives to drive during those times so all ETAs were under 5 minutes. Yes, we burned money to meet rider demand. And it worked. 3. As we grew our small geo in Raleigh and more and more rides were under a 5 minute ETA, we started to build a driver base in Durham and Chapel Hill. We did driver onboarding events, we advertised that we were "coming soon" and we built up supply so come launch day, we'd cover the area well. And 3 months after we launched Raleigh (and 3 months behind Lyft), we launched Durham and Chapel Hill nearly hitting sub-5 minute ETAs on day 1. 4. Uber had local city teams at this time. Meaning my team's sole focus was on the Raleigh-Durham area. We lived, ate, and breathed Uber Raleigh. I worked day and night to grow my market and ensure happy riders and drivers. I answered every single driver support ticket myself. Lyft, on the other hand, had their company in SF overseeing the United States. They didn't have dedicated city teams. This meant when there were events going on in Raleigh, we knew about it and we'd make sure Uber drivers would be there. I don't know what Lyft did, but their presence lacked, and we'd win the big events. Fast forward 6 months from launch, Uber had a >90% market share in the Raleigh-Durham-Chapel Hill area. It taught me a valuable lesson: you don't have to be first. You just have to be focused on what matters most.

24

2 Comments

Are Big Marketplaces Betting on Our Laziness? 🕵‍♂️ Let’s talk about how big marketplaces like Amazon and Walmart seem to think we’re lazy and dumb—and, honestly, they might be right. Consider the Instant Pot Duo 7-in-1 Electric Pressure Cooker. On Amazon, it’s going for $89.95, but if you check Walmart, the same exact product is listed at $137.00. That’s a whopping $47 difference! Here’s what’s happening behind the scenes: These giants are banking on the fact that we’re either too lazy to compare prices or too loyal to one platform to bother checking elsewhere. They’re counting on us to trust that we’re getting the best deal because, after all, they’re “trusted” names in e-commerce. Meanwhile, they’re laughing all the way to the bank, raking in profits while we, the average consumers, are left holding the bag and it's salty. Let’s face it—most of us won’t bat an eye at a few dollars difference. But when you add it up over a year of purchases, that’s a lot of money that could have stayed in your pocket. The truth is, every time we overlook these differences, we’re playing right into their hands. They win, we lose. It’s time to wise up. Don’t let them treat you like just another dollar sign. Compare prices, shop smart, and stop letting these marketplaces think they can get away with overcharging you just because they think you won’t notice. The bottom line: The real power lies in the hands of informed consumers. Don’t let laziness make you the ultimate loser. If only there was a better way??? 🤔 Ps. Maybe I am just hangry 🤷‍♂️ Sources: Amazon: https://lnkd.in/gwJTFXXT Walmart: https://lnkd.in/gZmQE5QS

5

Interesting article on last mile delivery. This is one of those areas where the high level theory is super exciting, but low-level delivery network design and ruthless execution are *everything*. This led to a recent generation of failed attempts to build last mile delivery as startups. I don't hold out much hope that Shein and Temu will change that balance, only delay more failures. Is this an impossible area to build a startup in? No. But it's a problem where domain expertise has to meet capital, and a team has to be brilliant from a network design standpoint, combined with day-to-day operations chops. Those teams are super rare. https://lnkd.in/dgQjYZ_2

9

2 Comments

Same price, Same package. Where you buying from? I should say they are basically the same package. With that said - more and more brands are leaning into Amazon as a convenient logistics play. Let them handle the shipping. Let them handle the returns. It’s not without a cost. And not without tradeoffs on the remarking side. But for Peloton Interactive, and other products which require an app/sign up to activate, you’ve kinda already got access to remarketing hurdle. And if your customer acquisition cost is cheaper on Amazon, and you’ve got low churn on those customers (with the ability to upsell in the future) maybe the tradeoffs are worth it. Whatchya think?

40

56 Comments

Many seed stage companies funded in 2020/2021 most likely won't make it to Series A these days. Over the last few months I watched two seed stage founders I invested in find buyers for their companies and successfully return cash to investors. In both cases the situations were dire and in both cases their existing lead investors were totally MIA. The reality for most VCs is that their best performing companies typically need their help the *the least* and the struggling ones are where it's essential to step up. For VC's, word travels fast when you aren't there to help. And for founders, working with investors who will be there when the chips are down is more important than ever.

114

9 Comments

Is Bolt’s new $450M raise bold or reckless? I just saw this news (https://lnkd.in/eq9PxW8U)- Ryan Breslow is back at the helm, driving Bolt.com to a $14 billion valuation, not long after a $300 million stock buyback valuation that crushed the spirits of their employees who exercised their options at their last valuation. I'm all for founder-led companies with a little dash of crazy, but I don't like the smell of this new raise at all This dramatic turnaround, fueled by international investors, raises more questions than confidence. Breslow’s move feels more like an Adam Neumann-inspired hype play than a true growth strategy. The focus is on challenging Stripe and fueling FOMO, not on sustainable fundamentals. For founders and investors, this is a reminder: don’t let flashy narratives blind you to the reality of valuations. I’m all for supporting founder-led companies—it takes a little crazy to be a founder at this scale—but this one might be a step too far IMO. What’s your take on this announcement? All hype or the next Stripe killer?

9

12 Comments

If you don’t have a product that can be deployed and scaled, you don’t have a product. From the start, I knew Kodiak needed to provide more than just autonomous technology. It needed to provide real solutions for real trucking companies, and core to that is the Kodiak Driver’s modularity. In fact, its autonomous components are as easy to replace as tires or windshield wipers. The design of our SensorPods and compute allow us to quickly and easily replace different parts of the system without taking the entire truck offline, saving our partners both time and money. At Kodiak, we make everything modular from hardware to software, so it’s updatable, repairable, and deployable. It’s a real product.

186

5 Comments

Kodiak, backed by Harpoon Ventures, has just made history by completing the first-ever driverless freight delivery across North America. That’s right, a self-driving truck actually hauled cargo from point A to point B! This is a huge deal. It proves that Kodiak’s self-driving tech is not only super smart but also reliable enough to handle the real world. And it means the company is shifting gears from testing to full-on operations. Get ready for even bigger news: Kodiak is teaming up with Atlas Energy Solutions to launch two self-driving trucks for commercial use next year. Talk about leading the pack! They’re turning science fiction into reality and showing the world what the future of trucking looks like: efficient, safe, and driverless.

323

22 Comments

"Hello Bill, My colleague, XXXX, came across your LinkedIn profile while she was looking for founders of high-growth AI SaaS companies. We're working on an in-depth white paper focused on the future of AI SaaS. We've engaged 12 other leaders and gathered interesting insight. We would love to interview you to hear your insight and discuss your experiences and thoughts about the future impact of AI in logistics." Like a sucker, I took the meeting and it was 2 quick questions about me then off to a pitch of their lead gen products. There was no white paper or formal interview. Nobody likes to be duped...If this is your sales strategy - STOP! It does nothing but piss people off. If your sales pitch is unethical, prospects feel deceived, mistrustful, and disrespected. If you work for a company and they tell you this is the best approach - RUN! Run far and fast! Now, get off my grass!

29

4 Comments

I only lose 1% of clients each year. (out of the 2,100 merchants we’ve worked with) Here’s how our retention is crazy. We retain 99.1% of our customers. We have a staggeringly low churn rate of below 1%. And mind you, this is in a space where 5%, 10%, and upwards of 20% churn-rate is considered “normal”. That’s not the case for us though & I wanted to explore why: We’re obsessed with retention. All of us. AMZ Prep from back to front. But this post isn’t about me having a ‘brouhaha’ over our numbers & how we operate to maintain them… It’s about how I think Amazon agencies can reduce their churn & get more fulfilled customers. And If I were to pinpoint one thing, it’d be “completeness of service delivery”. Now I use the term “completeness” intentionally because a lot of agencies can deliver their service well. The issue is that it’s usually just “one” service (ppc, SEO, catalog) and there’s not “enough” provided to the brand elsewhere. Specifically, it’s a lack of management at the back office of the brand they’re working with. And it’s why AMZ Prep can maintain a 99% retention, we’re so integrated into the supply chains of our brands. Think of it this way, whether they love us or not, we’re there… And we “have” to be. We’re fulfilling Amazon orders, opening new countries for them, handling compliance, and storing products in the warehouse... (They do love us, just to be clear) We established ourselves as such a core piece of the infrastructure of the brand… So much that it’s unreasonable for a brand to want to leave… And that’s where you want to be as an Amazon agency. You want to be seen as integral. Quite frankly, if you’re just offering PPC, you’re a “one click button” away from your permissions being revoked on the Amazon store. …And that’s the end of the story for the agency. It’s a crazy concept. Obviously this isn’t ideal, so what’s the game plan? It’s to provide agencies with a way to integrate international expansion into their offer… And here’s why: …It'll sky-rocket retention % because you’re handling more than just ads …It'll deepen the relationship as you are the key to unlocking international for them. …You’re seen as more of a “partner” than a replaceable service provider. …You will walk and talk like the big boys who are a one-stop shop (Pattern®, Spreetail, SupplyKick…etc) And it’s what we’re aiming to make as easy as possible for Amazon agencies to start including. It’s the reason why we’re rolling out our “powered by amz” program which lets you use our warehouses / compliance to set up Canada, the UK, the EU, and Australia. Picture you’re managing the brands Amazon store in 12 countries globally. You’re unstoppable. We’re still in a “testing” phase - only taking on a few agencies that are a good fit. Going through the motions and even building a white-labeled version of our technology for agencies to use. …But if you run an Amazon agency & think this might be of interest, shoot me a DM.

39

10 Comments

Everyone raves about Amazon's e-commerce business. But I think there are at least two other businesses that have shown greater resilience. Walmart and Costco. Wait. Hear me out. For these two, the invention of e-commerce caused a fundamental shift in how consumers purchase. For Amazon however, we are yet to see a competitor that causes a fundamental shift in how consumers purchase. We've seen what the post-"offline-retail" world looks like. But we haven't seen what the post-"ecomm cart" world will look like. #ecommerce #startups #venturecapital

38

13 Comments

Imagine you’re meeting a VC today and pitching your company. Now, also imagine the VC goes home tonight and tells his or her spouse about the meeting with you. How do you think the VC would (or should) describe your product to the spouse? Remember, this is for someone who doesn’t have any context, and probably doesn’t have time to listen the whole story. If you can think of a story version that's plain and simple -- how you want the VC to describe your product to the spouse -- perhaps that version should be your pitch in the first place?

114

10 Comments

Reading the below and similar, I’m thankful: 1. Shipping technology companies are still raising at all time high multiples with seed and series A records set in the last 9 months 2. Insane rate of tech adoption in shipping. We’re looking at 20X revenue growth with a fair wind this year (also, profitability if I don’t up our spend). While the market leading accuracy [by a long way] of our parsers is definitely a driver, the whole industry is having its commercial day in the sun 3. Spot Ship still has no pref stack A huge portion of luck, plus a sprinkle of good decision making in the past #founder #shipsandshipping #maritime #startups #vc

95

Founders: stop saying yes to every call request. That applies to people selling you shit. That applies to junior VCs reaching out telling you how excited they are about your product when they realistically don't know what it is. It applies to those grimy "industry vets" who claim to be advisors or consultants who will help you with your GTM function or make customer referrals. Stay focused on your business and don't worry about upsetting someone by telling them your time needs to stay focused on your business. (PS, this also means I'm going to have to start saying no to some founders who reach out too -- sorry!)

114

10 Comments

Who says fast-track expansion has to be difficult? 🚀 When Oats Overnight needed a larger facility for its rapidly growing DTC brand, they weren’t sure how to time the investment. Should they spend more today to unlock better margins or wait until real estate costs come down? They used Drivepoint to pinpoint the perfect moment to capitalize on the opportunity for a bigger space. And the results? 📈 $4M EBITDA increase 📈 $20M Series A 📈 98% forecast accuracy Check out how Oats Overnight unlocked this growth in the full case study: https://lnkd.in/gPhbxHHD

27

2 Comments

Exciting News Alert 🚀 🔮 Prediction: The new pricing tiers introduced by Yelp might revolutionize the way developers utilize their API services. With the base pricing starting at $229 per month, we can expect more businesses to leverage Yelp's API for improved data integration and customer insights. 💡 General Commentary: - The increase in API calls limit to 1,000 per day opens up opportunities for developers to enhance their applications and services. - As businesses strive for better customer engagement and personalization, Yelp's pricing tiers could pave the way for innovative solutions in the industry. - This move showcases Yelp's commitment to catering to the evolving needs of developers and businesses in a competitive digital landscape. Let's stay tuned for the impact these pricing changes will have on the developer community and the business domain! #YelpAPI #Innovation #TechUpdates

1

Excited to welcome Coldcart into the Behind Genius Ventures portfolio! Coldcart, a perishable logistics software company, was founded by CEO Jason Park, who previously started and scaled Allstate Identity Protection from zero to $100 million ARR, and Blue Apron founder and former CEO Matt Salzberg. Honored that Jason Park let us squeeze in at the last minute to their oversubscribed seed round led by Collide Capital & including Great North Ventures, Alumni Ventures. The opportunity is enormous - in 2023 alone, U.S. companies across industrial, food, pharma, and sciences shipped approximately 3 billion perishable parcels – spending over $76 billion in warehousing, packaging, and transportation costs. Part of our enterprise thesis at Behind Genius is backing "clipboard companies" - verticalized companies serving mission critical purposes in spaces that still use clipboards to operate. Helping food, science and pharma companies navigate the fragmented perishable logistics space, Coldcart's platform reduces perishable logistics costs by 15-50% per shipment and refundable shipments by 40-60%. Side note: no book has blown my mind recently like Nicola Twilley's Frostbite, a book I picked up in Palo Alto recently on my way to lunch with Pankaj Kedia & shared with Jason, which is a journey through time and many refrigerators to share the inside scoop on the artificial cryosphere we've built to house our food, pharma, and many other surprising things. As a result, I've been absolutely nerding out on the impact of cold storage as one of our most important hidden systems I've been most excited about recently. https://lnkd.in/gCFtf-Mv

90

9 Comments