Passel's Crowd-Sourced Delivery Model: A Business Model Canvas Report

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Think Big
Passel: Shoppers delivering to shoppers
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Executive Summary
This report is prepared in order to explore the business model of Passel by using the nine
component business model canvas approach. This business model can be helpful in assessing the
impact of such online delivery services on the Australian e-commerce market industry. This
analysis will be made on the public information available regarding the organization. There are
nine building blocks that can prove to be useful in understanding the core dimensions of the
business. There will also be highlighted the key points relevant to the success of the
organization. There are several risks associated with any business, and these risks will be
explored in this report. There will also be provided the recommendation for the business in order
to prevent such risks causing for the failure of the business.
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Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Background of the company............................................................................................................4
Business Model................................................................................................................................5
Key interrelationships......................................................................................................................5
Critical success factors....................................................................................................................6
The culture of organization..............................................................................................................6
Downside risks.................................................................................................................................7
Business Model changes..................................................................................................................7
Conclusion.......................................................................................................................................7
Recommendations............................................................................................................................7
References........................................................................................................................................8
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Introduction
The business model is considered as the description that denotes the working criteria of a
business as well as the way it makes money. It is also considered as the art of delivering the
superior class of the products as well as the services to their customers, the benefits arising out of
the business to the stakeholders as well as the allocation of the appropriate costs to the vendors.
The organization selected to prepare the business canvas model in this report is “Passel”. It is the
crowdsourced delivery platform which grants permission to people to shop and then get their
items delivered and then make the money when they are out shopping. This report will not only
present the business canvas model but also the recommendations to make further changes in such
limitations found in the model.
Background of the company
Passel is one of the world’s genuinely crowd-sourced home delivery organization. This is meant
as instead of the professional or the part-time couriers who are carrying out the deliveries; it will
be the people on the way to their home from the shops such as the regular shoppers or the people
working in the vicinity. Passel is considered as the crowd-sourced delivery service which uses
the shoppers already near the local stores in order to complete the final deliveries. The company
was founded in September 2016 in the form of LLC.
For such retailers dissatisfied with the loss of sales due to inadequate options of same-day
delivery, this company has brought a lot of opportunities using the regular people near the local
stores in order to complete final mile delivery. There is no need for the fixed infrastructure of the
company and it is, therefore, faster, cheaper as well as more flexible. The company is providing
its services across the whole of Australia. The people can shop with Passel in Melbourne,
Brisbane, Adelaide as well as other territories in Australia. The company had also secured
$60000 angel investments just one month later from Niels Van Hove and Gavan Stewart.
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Business Model
While the platform of Passel has been designed in order to enable the round- to- table deliveries
for the Omnichannel retailers, the founder of the company is also hoping to expand the business
of Passel beyond the retail sector as well as the shoppers.
Over the next 12 months, the company is also hoping to roll out the Passel to the capital cities all
across Australia and after that looking forward to expanding it into the US. There are nine
building blocks in the business canvas model which will present a complete picture of each and
every dimensional aspect of the business (Ojasalo, et. al., 2018).
Key Partners
 Blazer
 For my pets
 STORM in a D
cup
 Naked
 Harvey Seeker
 Petershearer
 Wickedweasel
 Invite me
 Front line stores
Key Activities
 Product
deliveries
 Making the
match of the
lists with
purchases.
Value Proposition
 To be able to
expand beyond
the shoppers and
retail sector
 Roll out itself to
the capital cities
of Australia and
then in the US.
 To do the
deliveries above
300,000 next
year.
Customer Relationships
 Through direct
mail and emails
 Through
Application
Customer
Segments
Professional
males having
the age
between 28-
50
Key Resources
 Stocks and
warehouses
 Delivery
vehicles
 Human
resources
 The website
for the orders
Channels
 Mobile Application
 Website
Cost Structure
 Stock
 Administration costs
Revenue Streams
 Delivery charges
 Perks and benefits
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 Distribution and the sales
 Marketing
 Salaries
Key interrelationships
The Passel is the crowd Sourced delivery services provider which is partnered with a number of
brands and clients. It is able to deliver their clients the products on an intraday basis. There are
several key partners associated with the Passel such as Invite me, Front line stores as well as
Harvey Seeker. The company is involved in facilitating the customers as well as shoppers with
great delivery services. The key resources identified for the business are the human resources,
the delivery vehicles as well as the warehouses used by the company. There is no fixed
infrastructure used by the company as it is providing its services through the mobile application.
The cost structure of the company has the costs associated with the stock, administration charges,
marketing, sales as well as distribution (Sort & Nielsen, 2018).
The value proposition of the company shows how much of the value company is holding and
how much of the value company is going to gain in the upcoming time. The company is
operating through the mobile application as well as its website hence these are considered as the
channels to maintain the relationship with the customers.
The company is looking forward to gaining success in the future through the development of the
business in Australia as well as the US.
Critical success factors
There are several critical factors due to which the company is being stable into this competitive
market and looking for further growth as well as the expansion. The company is able to provide
great delivery services to its clients due to certain factors associated with such an organization.
Following is provided a list of such factors that are contributing towards the success of the
company:
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Team composition: There are few team members working within the business in order to make
the user experience great for the application used for shopping with Passel. This contribution of
the team is an important aspect of the success of the business (O'Neill, 2015).
Vision: The vision of the company is clear and it has the value for the expectation of its clients.
The company wants to expand its domain and for such purpose, it is doing the best possible
efforts.
Stakeholder’s support: There is complete support of the stakeholders towards the development
of the business as well as its success. The suppliers, as well as the vendors associated with the
company, are contributing towards providing the great products as well as the services which is a
great point to be considered (Joyce & Paquin. 2016).
Culture of organization
The culture of the Passel organization is too friendly for the people associated with it. It has
helped in the development of a better workplace and it has satisfied the employees. This is
considered as one of the most critical factors for the company.
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Downside risks
There are certain numbers of the risks associated with business dealing with the delivery of the
products as well as the services. There may be chances of misleading the shoppers as well as the
company while placing an order. The business may also face the risk of lack of financial
resources at the time of expansion of the business. The downside risk for the company may be
that when the company should operate its functions as the legal obligations as well as the market
condition review is required to be done by the company. There is another risk of the business of
being failed due to the no traffic of the customers on the website (León, et. al., 2016).
Business Model Changes
There is a requirement of looking forward towards creating the understanding regarding the
buying behavior of the customers as what offers can trigger them to purchase as well as shop.
There is a need to understand what job is required to be done that can give the rise to the
purchases. The success may also be attributable to the business if the company uses the
disruptive approach of innovation for the further development of the business.
There can also be made policies for the expansion of the business into the high growth markets
such as the US and the capital cities of Australia. The online offerings must be expanded by the
business (Sparviero, 2018).
Conclusion
The analysis presented in this report is completely based on the public information available
regarding the organization. It has been identified in this report that the future is full of risks and
the company is required to make the necessary improvements in its business model in order to be
continuously successful and expand its business internationally. The company was recently
formed hence there was not much financial information available regarding the organization.
Recommendations
 Make the modifications in the latest application used by the shoppers in order to shop and
should make their experience better.
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 There should be made the appropriate growth and expansion strategies for the business
and make the efforts to streamline the supply chain of the business.
 The company is required to explore its business and should move forward from its core
activities.
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References
 Joyce, & Paquin. (2016). The triple-layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
 León, M., Nieto-Hipólito, C., Garibaldi-Beltrán, J., Amaya-Parra, I., Luque-Morales, J.,
Magaña-Espinoza, G., & Aguilar-Velazco, P. (2016). Designing a Model of a Digital
Ecosystem for Healthcare and Wellness Using the Business Model Canvas. Journal of
Medical Systems, 40(6), 1-9
 Ojasalo, Jukka, & Ojasalo, Katri. (2018). Service Logic Business Model Canvas. Journal
of Research in Marketing and Entrepreneurship, 20(1), 70-98.
 O'Neill, T. (2015). The business model canvas as a platform for business information
literacy instruction. Reference Services Review, 43(3), 450-460
 Sort, J., & Nielsen, C. (2018). Using the business model canvas to improve investment
processes. Journal of Research in Marketing and Entrepreneurship,20(1), 10-33.
 Sparviero, S. (2018). The Case for a Socially Oriented Business Model Canvas: The
Social Enterprise Model Canvas. Journal of Social Entrepreneurship, 1-20.
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