binnordzi2018

2018 International Conference on Information and Communication Technology for the Muslim World
GoBeli: Providing Runner Platform for Personal Shopper and Delivery
Services for Urban Community
Abdul Rahman bin Ahmad Dahlan, Muhammad Aidid Wafi bin Nordzi, Muhammad Farhan bin Mohd Hatta
Department of Information Systems
Kulliyyah of Information and Communication Technology
International Islamic University Malaysia
Kuala Lumpur, Malaysia
[email protected], [email protected], [email protected]
Abstract –This paper will discuss about a conceptual solution
called GoBeli, an application or platform to cater runner services
using on-demand runner booking services from available runner
or rider for delivery services. personal shoppers and errand
runners. A client is an individual or a group requesting for runner
services while a runner is those willing to do runner services and
delivery services. The product provides personal shopper or rider
as an errand runner to purchase items for customer from groceries
to clothes and deliver it to customers’ doorstep. This on-demand
runner platform provides delivery upon request to any locations.
The products intend to serve runner services in an urban
community and give chances to rider to generate income, and a
solution for customers who demand for runner services like food
delivery, personal shopper and errand runners. It also helps
businesses increase their productivity by providing advertising
space and delivery Business to Customer (B2C) business.
B. Project Objectives
1. To cater services for errand runner or personal runner for
clients to do their services and errands whenever needed
2. To cater personal shopper and runner to buy requested item
according to clients requirement and request.
III. LITERATURE REVIEW
The advanced development of technology helps society to
communicate and complete each other’s need by collaborating
with each other in a way both accepted as an exchange of
mutual benefits. There are many industries involved in this
runner services such as delivery services, food delivery, and eCommerce, the description as mentioned below:
Keywords –delivery, runner, errand, personal shopper
A. Delivery Services Industry
I. INTRODUCTION
GoBeli is an application that allows the user to book and
hire their personal shopper and runner. The idea of personal
shopper and runner arise to help make time a little less hustle
for those who run a busy daily schedule especially urban people.
With the application, our customers can save time and enjoy
doing things they like. This application can help the customers
secure their shopping and business time with the help of GoBeli
runner to make errands for them. In this application, customers
can search for GoBeli runners, hire them to shop for items and
deliver it to the address in their requested time. Booking can be
made a few weeks earlier or cancelled before the runner make
the errands. Electronic payment is made available to make
things more convenient. Moreover, runners can earn extra
money through service fee and complimentary bonus from
GoBeli customers. Personal shopper and runner is created to
benefit both errand runners and the urban community as well as
local businesses.
Delivery is the process of transporting goods from a source
location to a predefined destination. There are various delivery
services. The term delivery is different to courier in which
delivery are only within short distances. This service existed
around the World since 50 years ago. Types of delivery services
constitutes from postal services, dispatcher, runner, sender, and
shipping, Malaysia will have 125 million connected devices
with over 58 million mobile user. 95% of Internet users in 2025,
will be active social network users, presenting massive potential
for digital marketing and e-Commerce.[4] As Alibaba chooses
Malaysia as an e-Commerce and digital market hub for
Southeast Asia region, it will boost economy of delivery
services and ecommerce for ASEAN society. The impact of the
growth of e-Commerce will encourage youth to involve in this
digital market and delivery services industry.
According to Cortimiglia. N, (2011) delivery services and
advertising is another option for monetizing mobile apps. In this
model, advertising space is sold in free apps that reach a large
user base.[3] Nowadays’ mobile apps are either business-tobusiness (B2B) or business to consumer (B2C). B2B apps
support a firm's internal business process, such as warehouse
fulfilment management, sales-marketing automation, delivery
services and customer-relationship management. B2C apps
fulfill individual consumers' needs and can be further classified
as content, marketing or service.
II. PROBLEM STATEMENT
1. People have problems to go to the place to buy desired
things because of no mean of transportation and allocated
time.
2. Working people always worked over time and have no time
to buy groceries when needed.
Meanwhile, bricks and clicks are promising and able to
outsell online retailers due to its ease. Big Commerce mentions
in an article that the inventory must be in sync to prevent selling
out of stock items or underselling because separate inventories
is used and could end up sitting needlessly in stock.[6] A careful
3. Some people have difficulties to do errands and needs help
from others to complete his errands.
978-1-5386-7525-0/18/$31.00 ©2018 IEEE
DOI 10.1109/ICT4M.2018.00045
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logistics).[7] To relate Industry 4.0 with delivery services
industry, an automation system is required to manage
warehouse inventory to allocate package storage according to
inventory database as well as a fulfillment centre to manage
package delivery according to transaction order records and
then managed by delivery services automatically.
implementation of a single POS system for both online and
offline components of the store must exist across all channels
in order to have smooth and simplified accounting process.
B. Benchmarking
On-demand delivery and runner services increase individual
productivity and generates income for those who provides the
services. One of the popular on-demand delivery and runner is
GO-JEK, an Indonesian hyperlocal transport, logistics and
payments startup founded in 2010. In Malaysia, there is
competition between delivery services company such as
EasyParcel, TA-Q-BIN, MatDispatcter, and courier services
like PosLaju, DHL, FedEx, GDex, SkyNet makes the courier
and delivery services relevant and promising in Malaysia These
are the most popular on-demand runner and delivery services in
Malaysia as mentioned below:
D. Demand of Delivery Services in Malaysia
Current trends of delivery services are on-demand sender
which requires a runner sending items from door to door within
a short time. On-demand runner or delivery service became
popular because it is faster, cheaper, easier, reliable and flexible.
Revenue in the "Food Delivery" segment in Malaysia amounts
to US$358m in 2018 according to The Statistics Portal.[6]
Revenue is expected to show an annual growth rate (CAGR
2018-2022) of 27.8 % resulting in a market volume of
US$956m in 2022. The market's largest segment is the segment
"Online Takeaway" with a market volume of US$353m in 2018.
From a global comparison perspective, it is shown that most
revenue is generated in China (US$48,530m in 2018). Request
for delivery services can now be made online via mobile app
and websites. Meals ordered online from partner restaurants of
special delivery services. Online delivery services that only
provide a platform for restaurants that request others delivery
service to deliver their products enables User to perform
comparison check on delivery charges based on distance rate
and task completion. Normal delivery set fixed charges with no
limit of distances and delivery time. Fulfillment center and
shipping delivery become the main logistics activity to support
business operation of small and medium enterprise (SME) with
exemption of taxes. Internet creates entrepreneurs by
connecting buyers and sellers as well as suppliers. Social media
become means of free business advertisement to promote
brands and products to gain market share.
Honestbee is an online grocery and food delivery service and
its core business, a concierge service, and also a parcel delivery
service for its B2B clients. The company provides personal
shoppers that pick products for its clients. Consumers utilize the
company's mobile app or website to interact with the company,
and the store pickers and retail stores also utilize the mobile app.
GoGet.my is an on-demand personal shopper and sender that
provides reliable point-to-point delivery service. The
technology will allow Malaysians to be more enterprising, to
allow them to be true go-getters (runner). Their technology
platform will connect people's everyday requests with publiclysourced fulfilment. GoGet is not in the business of providing
dry-cleaning delivery; it provides real provision for the better
flow of information and opportunities.
iJual is an order management and sales system for small
businesses. iJual is especially useful for businesses that interact
with their customers through Private Message or PM on
applications such as Facebook, Telegram, Twitter and
WhatsApp. Their technology enables everyone to request
services and run the services, as well as to connect buyer and
seller with the intention to deliver the products at the door steps.
IV. METHODOLOGY
In this paper, GoBeli products is proposed to enter the
market as dispatcher and errand runners for personal and
business purposes if it meets the requirement of customers and
demands of services. To develop strategy for this startup, a
Business Model Canvas (BMC) is used to develop business
models to identify key activities, key resources and partnership,
products’ value propositions, customer segments, channel, cost
structure and revenue streams. This lean startup tool helps to
develop idea of business and solve the problems that drive the
value of products.[5]. Second, Value Proposition Canvas (VPC)
tool is used to create the value that customer needs and design
products or services they want. Strategy canvas apply Blue
Ocean Strategies which are used to identify opportunities by
sensing the market to fulfill needs of people, the strategy
presents a systematic approach in making the competition
irrelevant and outline principles and tools which any
organization can use to create and capture their own blue
oceans.[1] By benchmarking own products with other
competitors, a better value can be created to match with existing
products in the market. The strategies help find uncontested
market and formulate a competitive strategy to overlay
competitors.
COMPARISON
Table 1.0 Comparison between three products
C. Industrial Revolution 4.0
In the concept of Industry 4.0, the Internet of Things (IoT)
shall be used for the development of so-called smart products.
Sub-components of the product are equipped with their own
intelligence. Added intelligence is used both during the
manufacturing of a product as well as during subsequent
handling, up to continuous monitoring of the product lifecycle
(smart processes). Other important aspects of the Industry 4.0
are Internet of Services (IoS), which especially includes
intelligent transport and logistics (smart mobility, smart
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Survey and questionnaire is one of the methodologies to
identify the relevant solution for urban community especially
students. There are always demands on delivery services and
V. BUSINESS MODEL
Our business model is based on runner and delivery services
which provide business delivery for urban community. The
main business function of GoBeli is to provide a platform for
runner or rider to run errand and delivery services and connect
customers to business when shopping using this service.
Business Modal Canvas tool were used to ideate the GoBeli’s
business model and its value proposition as described below :
personal shopper by asking help from people or online
community to get items for them and are willing to pay the
service charges if the job is completed. So there are people who
are willing to do the services whenever they are free and willing
to go place to place using their own transportation to earn some
money. A solution is needed to fulfill requirement of both this
community using online means of request and accepting the
services. Based on the result, most respondents perceived that
runner services are very important while 26.7% of respondent
perceived runner services as normal.
BUSINESS MODEL CANVAS
Chart 1.0 shows The perception of users to runner services
Most respondents told that the time delivery is longer than they
expect and 23.1% of them have communication problems with
runner which result in wrong delivery and mistaken buy the
item as not meet their requirements.
Table 1.1 Business Model Canvas of GoBeli
A. Key Partners
Motorbike rider become main partner of GoBeli due to many
workers and young people riding motorcycle in the city. It is
good for them to benefit their bike and free time to run this
errand and delivery service for others to earn cash. Customers
like urban community, working people and students have
potential to use the products for their errands and delivery
requests when needed. They are demanding this kind of service
when they have no time do so. Businesses also become the main
partner of GoBeli for advertising their products which
customers use to shop their products using this service. GoBeli
is planning to invite investors to invest in this product to sustain
the business operations of GoBeli. GoBeli will collaborate with
IT experts to create business intelligent analytical tool on this
application to identify delivery and shopping trends of
customers by location which will help in decision making in
marketing the products. Cashless payment provider helps
GoBeli to provide online payment system for systematic and
faster payment service.
Chart 1.1 shows The issues/ problem of users when using runner services
As the solution of the problem of runner services like delivery
punctuality, communication problem, wrong order and etc ,
GoBeli have to come out with the solution of the problem with
better features like runner tracker, feedback/ratings system and
click food menu to buy to improve customer satisfaction. Most
respondents choose to have rider tracker to estimate time
delivery.
B. Key Activities
Errand and delivery services are key business activities
provided by GoBeli by connecting runners with customers.
Runners or riders deliver package or purchase the items
requested by clients. The items purchased range from groceries,
food, electronic products, and etc. according to clients’
requirement. Key activities range from short distance delivery
services from door to door for business and personal delivery.
This product is the solution for on-demand runner and delivery
Chart 1.2 shows The proposed feature for users when using runner service
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services upon request. Cash on delivery and cashless payment
are payment options for this service.
I. Revenue Streams
Company will earn commission from customers upon rider
booking while rider gets full payment from customer and
charge using this application will contribute to revenue streams.
Commission is from business partnership through sales of
products and brands promotion. Advantage of advertisement
space on mobile app is more revenue earned from
advertisement fee or premium listings in landing page.
Shareholders of investment in revenues will increase revenue
stream and products profit as return of investments.
C. Key Resources
Rider are main resources of this product to provide package
delivery using their own transportation while travelling to do
errands like shopping for customers. Customers are one of the
important elements to keep the products becoming relevant and
maintaining business operation of C2C (Customer to Customer)
and B2B (Business to Customer). Mobile applications of
GoBeli acts as the main platform to hire rider to become errand
runner and sender for customer’s request. Business partnership
will help commercialize the products becoming a promotion
and productivity tool and increase revenue.
J. Challenges
There are challenges on the delivery services where
services assurance and punctuality become tangible value to
any services to gain customer confidence and market share. To
gain market share of delivery service among society and
students, our products must have an enticing feature to attract
customer to use our products. The value is different from other
competitors who provide the same service. Once the problems
and needs of customer is identified, a value of product is created
to fit with their needs and solution to the problems. Customer
service customization will help to enhance products value and
solution to customer problem, customer value become priority
in designing the products to meet their requirements.
D. Value Proposition
One of the value proposition of GoBeli is a mobile application
that provides a platform for runner and delivery services and
personal shopper to selected business partners and deliver the
items to the doorstep. One of the benefits of GoBeli is it helps
rider earn extra money by doing services for customers such as
place to place runner services. The platform provides
advertisement space which can fit in brands and products listing
from business on mobile app landing page.
E. Customer Relationships
Customer validation is one of the tools to identify customer
demand on products, and value proposition of the products will
solve the problem customer face. The ways to compete with
existing products is to provide better features than existing
products according to 4 Lenses of Innovation and assurance of
service to gain customer trust and confidence. The acceptance
of products can be determined from customers return to use the
services or products without changing to others products. The
issues of demands on products must be covered by insurance to
attain customers’ trust and good feedback. The right of rider to
accept and reject the request must be considered to avoid huge
traffic of request at peak hours. System administrator must be
prepared in the events of disruption for recovery process to
ensure business continuity after disaster. This strategy is to
reduce revenue loss and ensure customer confidence on
services.
To solve problems related to the service, customer service is
introduced to gain their trust and confidence when using this
product. Feedback and ratings system helps to identify
customers satisfaction level and reliability of riders serving the
customers. Rider tracker and services record is created to ensure
assurance of package delivery to customer and ensure client’s
order is done as requested. The application utilizes social media
platform to engage more customer to promote the products and
maintain relationship with customers.
F. Customer Segment
Three main customer segment of this products are rider or
runner, customer and business partner. Rider is those who
provide services and willing to do errands and deliver item as
requested by clients. Customer requests the service and book
the rider to purchase the items they order for. Business partners
like mall, boutique, branded shops, local supermarket and etc.
will provide products that can fit to customer requirement when
shopping using GoBeli’s personal shopper and runner services.
K. Initial Business Model
The key feature of the GoBeli application is enlisted in the
Business Model Canvas. Key feature of the business is the
application. A proposed feature of the products would be rider
or errand runners who are willing to buy the items and deliver
it to doorstep of clients. Service charges is suggested on
distances travelled for local errand runner The application
GoBeli or Personal Shopper, allows user for user booking and
errands to take place. Our user consists of two types which is
the rider or runner to make errands or the customer who books
and pay the riders to shop for them. Customers are allowed to
make early booking and adjust according to their timing. The
rider whom is on the other side of the application can also
choose to accept or reject the booking according to their
availability. The rider and customer justification is made
according to their location and closest distance. However, a
booked rider will not be offered more than one task at the same
time. Other functionality includes online payment or credit card
G. Channel
The channel to get the business done is using mobile apps which
connects customer and rider as well as businesses. Customer is
connected virtually to shopping malls and runner does the
shopping for them and delivers it to their doorstep. The products
can be promoted through social media and business partners.
H. Cost Structures
Cost incurred from this product is salary payment for permanent
staff and maintenance cost for hosting the mobile application as
well as advertisement fee for promotion in public area and
social media. Inventory such as motorbike and delivery
equipment is become subject to cost structures. IT infrastructure
such as enterprise and customer service management system,
network architecture and application hosting is needed to be
purchased to run the business operation of GoBeli.
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the cash payment can only been made between customers and
runners only.
registration, rating system, customer feedback, and also
reviewing for both customer and rider. Cashless payment
method allows customer to make transactions directly to their
rider. This feature eases payment handling. Customer feedback,
rating and reviewing system is included to help customer secure
their errand through reviewing the runners review of the
previous tasks.
A. Enhanced Business Model Canvas
Apart from that, delivery to door is also the main feature of
the business model. By using the mobile application, all
businesses are done using mobile to manage orders or
customers online. The methods to get the service provider or
online grocers in understanding the client demand on services
or item by communicate directly to customer and confirm their
criteria of services before starting to do the task. There are
payment issues derived from business activities like cash on
delivery, false services request and illegal item order. All
deliveries are handled directly by the runner or rider and they
are responsible for informing customers about delivery fees and
times. The need to establish partnership with trusted business
and service providers and online payment method for item
which required huge amount of cash and feedback system so
there will be no issues of false order and negligence of services.
L. Customer Validation
Survey and interviews have been made on focus group to
identify their perceptions on having on-demand errand runners
within their community. A simple description about how the
products work for their needs of delivery services or personal
shopper. 30 respondents of IIUM students took part in a
questionnaire of perspective on the existence of on-demand
sender or runner.
Most users think that some runners did not purchase items
according to customers’ requirement, sometimes the items
delivered at wrong pickup points, clients need to confirm and
find the meeting points to receive the package. Several
mentioned that the current runner system have no proper record,
no background information of runner can be traced if package
is lost or missing. Clients need to deal with strangers to request
the services. The needs of runner among trusted person are
important to get customers’ confidence on using this services.
Students always being trusted to do such services for customers.
Figure 1.2 Enhanced Business Model Canvas of GoBeli
B. Value Preposition Design
VALUE MAP
VI. ENHANCED BUSINESS MODEL
The enhanced Business Model Canvas of GoBeli is focused
on the improvised process of business activities. The errands
start from the customer request or listing their shopping items,
booking a rider and completing the task by making payments.
The application is designed to ease shopping through these few
steps. By focusing on the location area of the customer and
targeted purchasing area, a rider or runner is being assigned to
them by closest distance and availability. This is to ensure that
our customer needs to save time and reliable shopping is
fulfilled. Information such as location is crucial for this process
to work properly .Other than that, our suppliers will contribute
to making promotion and provide their business as a focused
point for our riders to purchase items. Riders will buy
customer’s ordered items individually and proceed payment
using available method whether online or cash on delivery since
Figure 1.3 The Value Map for GoBeli
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VIII. CONCLUSION AND FUTURE WORK
CUSTOMER PROFILE
The concept of GoBeli or personal runner is to create an
application to fulfills the needs of our customer to shop for their
items with the help of our runners. The customer can list the
items they require, book for a rider or runner and wait for the
delivery to reach their doorsteps. On the other hand, GoBeli will
also benefit riders as the mobile application that helps them to
find jobs and task to generate extra income. Both sides of user
can actually benefit from the GoBeli services through the
businesses activities it conducts. In the future, the application
can be improved by adding features such as stores or businesses
mapping with complete items listing so that our customers can
choose and complete their shopping with a touch on their
mobile application. Future works are implementation of
business model with findings and may include direct payment
to businesses and suppliers for proposed feature of application.
IX. REFERENCES
[1]. Karla H, Blue Ocean Strategy, Business News Daily.
Available : https://www.businessnewsdaily.com/5647-blueocean-strategy.html [Accessed March 19, 2018]
[2]. Maria N, Business Model Canvas Explained. Available :
https://www.eship.ox.ac.uk/business-model-canvas-explained
[Accessed March 17, 2018]
[3]. M. N. Cortimiglia, A. Ghezzi, F. Renga (2011) Mobile
Application and Their Delivery Platforms, IEEE Xplore
Digital Library, 13(5), doi: 10.1109/MITP.2011.84
[4]. Mega Trends in Malaysia : Top Mega Trends in Malaysia
to 2025 and the Implications to Business, Society, and Culture
(2015) Available : https://www.prnewswire.com/newsreleases/mega-trends-in-malaysia--top-mega-trends-inmalaysia-to-2025-and-the-implications-to-business-societyand-culture-300078087.html [Accessed March 18, 2018]
[5]. Andrew, C, Mikel G, Mark L Enhanced Business Model
Canvas, Operating Model Canvas (2017) Retrieved from :
https://operatingmodelcanvas.com/enhanced-business-modelcanvas/ [Accessed March 17, 2018]
[6]. Food Delivery in Malaysia, Statista Market Forecast,
Statista, Available :
https://www.statista.com/outlook/374/122/fooddelivery/malaysia#[Accessed March 20, 2018]
[7]. Michael L., Ondrej P., Miroslav S., Industry 4.0 as a part
of smart cities. IEEE Xplore Digital Library Available :
http://ieeexplore.ieee.org/abstract/document/7501015/[Access
ed March 20, 2018]
Figure 1.4 The Customer Profile for GoBeli
C. Strategy Canvas of GoBeli
Figure 1.5 Strategic canvas for GoBeli with others competitors
VII. SUMMARY
GoBeli products are proposed to enter the market as sender
and errand runners for personal and business purposes if it
meets the requirement of customers and demands of services.
On demands delivery and runner services will increase business
productivity and generate income for runners and those who
collaborate their business with this runners services. Business
Model Canvas helps to ideate the solution to problems derived
from reality of runner service by identifying the key business,
value proposition, revenue streams, value map and customer
profile. The product is intended to provide personal shopper or
rider as errand runner to purchase items for customers and
deliver it to customers’ doorstep. GoBeli also provide ondemand delivery services upon request to the location. The
products intend to serve rider as errands runner, customers as
clients to uses the services, and helps businesses to provide
products and items for customers’ like food, groceries and etc.
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