Pocket Deals #4: US-based Zepto clone

Asking Price: $49,300

Annual Revenue: $44,000 last 12 months gross revenue
Business Model: Business-to-business (B2B)
Industry: F&B Delivery

About the Business

Today's business is a same-day delivery service specifically designed for local retail brands. This service aims to provide affordable and efficient delivery options for direct-to-consumer retailers who want to compete with major logistic players like Amazon. For example, customers can receive their orders on the same day they place them, improving satisfaction and loyalty. The startup was founded in August 2023.

Tech stack used - MongoDB, React Native, Amazon Web Services, React

Revenue Drivers:

The startup operates on a business-to-business (B2B) model, serving direct-to-consumer retailers. The revenue is generated through delivery fees charged to the retailers. The asking price is not a fair one, especially considering the profit margins of the business.

Bizness Pros:

1.  Verified and established business with a solid customer base

2. Affordable same-day delivery service for local retail brands

3. Potential for growth through sales expansion and market expansion

4. Opportunity to compete with larger logistic players in the market

Bizness Cons:

1. Limited team size, which may require additional resources for scaling

2. Reliance on direct-to-consumer retailers, which may present challenges in acquiring new customers

Growth:

• Hire a sales team

• Focus on SEO

• Increase social media + content marketing

• Expand to new markets

Overall Analysis:
This same-day delivery service for local retail brands offers a valuable service to the market, addressing the logistics needs of retailers competing against larger players.

In the last 12 months, the business generated $44,000 in gross revenue but had a net profit of -$47,000, indicating expenses exceeded revenue. Last month, the business made $10,000 in gross revenue with a net profit of $1,000, showing a gradual move towards profitability, though with a relatively low net profit margin.

With a verified business and a proven revenue model, it presents a promising investment opportunity.

However, the market reliance should be carefully considered. With the right resources and strategic expansion, this business has the potential but its unlikley to make much meaningful profit without a lot of effort. The business only works really well at scale.

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