Zoom Food Group Ltd

Idea

Introduction

Zoom 1hr is a hyperlocal last mile delivery service delivering food, convenience & retail goods within 1 hour. Currently operating in the West Midlands & Wales, and having experienced rapid growth throughout 2020, we have big plans for a national rollout in 2021. We feel we are perfectly poised to expand across the UK’s underserved rural towns & cities and shake up the on-demand delivery industry.

Founded in 2017 by Kevin Williams and Dave Hamlet we have experienced organic growth at every stage of our journey. Over the last 3 years we’ve empowered everyone from independent high street retailers & restaurants to national chains to offer sub-1 hour delivery to customers in the UK’s small & rural towns. We now feel the time is right to raise investment and supercharge our growth!

With the Online Food Delivery market projected to reach over £5bn in 2021 & grow at an annual rate (CAGR) of 5.6% we are ideally situated to take advantage of a booming market.

Substantial accomplishments to date

Since inception we have established a number of impressive metrics that show we are a high growth business employing a successful & scalable business model.

Currently operating in the local areas around Wales & bordering English counties we have recorded 70k app downloads. The app allows users to seamlessly order products ranging from food & groceries to convenience & retail products from all of our 357 listed stores.

Since going live we have processed over 280k orders through our platform at an average order size of £26.07. This reliable source of income has helped us achieve regular monthly revenue and an annual turnover of £665k in 2019/2020 at an order growth rate of 108%. This annual growth is not standalone as we have recorded organic growth year on year since 2018.

We also boast a substantial list of partners that contains a mix of local, national & international stores including Subway & KFC. This year's national rollout will see us cover an additional 3.3k stores by the end of the year meaning there is a great opportunity to secure further partnerships, both locally and nationally, in 2021.

In addition to these partnerships we have also secured a contract with Co-Op to be their 3rd national last mile delivery partner, currently servicing 61 stores. This opportunity with Co-Op is just the beginning as the total number of stores available nationwide is 3600, with 60% of these being in rural areas.

Monetisation strategy

We operate a simple, four-fold monetisation strategy for our services. This has
enabled strong revenue growth year on year and provides the business with a
consistent and reliable cash flow.

The first revenue stream is a simple commission structure whereby we take a
commission on every order placed on the app. The commission taken is a set
percentage of the order value and is charged in real time once the order is placed.
The second area of revenue generation is a straightforward delivery
fee whereby we take a fee on every order that we deliver.

The third stream comes from our drivers. The drivers rent our branded cars for a set
fee per delivery. This gives the business and our drivers flexibility, and provides
additional marketing in the towns and cities in which we operate.

The fourth revenue line is based on a set price per delivery. This is charged for any
last mile delivery and is set prior to the delivery being made.

Use of proceeds

We are raising funds to invest throughout the business. Below outlines each area in further detail:

New Area Mobilisation

● Expand the size of our fleet for our 2021 rollout
● Purchase extra delivery equipment and driver workwear and PPE
● Increase Marketing budget to expedite customer acquisition and order growth

Product & Website Development

● Increase investment in the development of our product and tech, and bring relevant teams and IP in-house
● Improve our payment management system in order to empower store owners to manage their cash flow
● Develop integration to store catalogues, enabling real time product updates from e-commerce sites and high street store deliveries
● Improved store and driver onboarding process

Key hires and team expansion

● Hire a world class team across marketing, product, tech, operations and finance (important key members have already been identified)
● Expand the Sales team to grow store onboarding