INNOVATION, RESEARCH AND

ENTREPRENEURSHIP

TOPIC:
BUSINESS PLAN FOR PASSTHRU DELIVERIES

DONE BY:

TEAM A5
BALAJI – 24GIBSPGDM008
VAISHNAVI – 24GIBSPGDM047
DEEKSHA – 24GIBSPGDM011
LAVANYA – 24GIBSPGDM025
AMAN KUMAR – 24GIBSPGDM003
SACHIN SINGH – 24GIBSPGDM030
 Table of contents

1. Executive summary
10. Company, Concept, and
2. Industry Description
Product/Services
3. Economics of the Business
11. Market Analysis
4. Design and Development
12. Marketing and
5. Management Team
Communications
6. Timeline
13. Operations Plans
7. References
14. Risk and Assumptions
8. Acknowledgements
15. Financial Projections and
9. Glossary
Highlights
16. Appendices
Executive Summary

Introduction Our startup delivery platform aims to revolutionize last-mile

logistics by leveraging technology and a network of local commuters, cyclists,
and walkers to provide cost-effective, eco-friendly, and efficient delivery
solutions. With the growing demand for faster and more sustainable deliveries,
our platform presents a unique value proposition that benefits businesses,
individual customers, and delivery partners. By tapping into underutilized
transportation resources, we create a seamless delivery system that not only
optimizes costs but also contributes to reducing traffic congestion and carbon
emissions.

Modern consumers increasingly expect quick and convenient delivery options.

Businesses, especially small and medium enterprises (SMEs), struggle with
high operational costs associated with traditional logistics providers. Our
platform bridges this gap by offering a more affordable, accessible, and
sustainable alternative while simultaneously creating income opportunities for
individuals who travel frequently.

Business Model Overview Our business operates as a crowdsourced last-mile

delivery platform that connects businesses with local commuters who can
deliver products along their existing routes. This innovative model reduces
costs, enhances delivery speed, and minimizes environmental impact. Our
technology-driven approach ensures efficiency, reliability, and security in every
transaction.

The platform functions on a commission-based model, where businesses pay a

small service fee per delivery. This fee allows us to compensate delivery
partners fairly while keeping costs low for businesses. Our model also enables
flexibility for delivery partners, as individuals can choose when and how often
they participate in deliveries without committing to full-time employment.

To ensure trust and reliability, we implement a robust verification process for

all delivery partners, allowing businesses and customers to have confidence in
the safety and timeliness of their shipments. By eliminating the need for a
dedicated fleet and utilizing pre-existing travel routes, we significantly reduce
overhead costs, making our service attractive to small businesses and
independent sellers.

Market Opportunity The rapid expansion of e-commerce and increasing

consumer expectations for same-day and on-demand deliveries have created a
significant market opportunity. Traditional delivery services often struggle with
high costs, inefficiencies, and environmental concerns. Our platform directly
addresses these challenges by optimizing underutilized transportation capacity
within urban and suburban areas.

As online shopping continues to grow, businesses seek more efficient logistics

solutions. The gig economy and crowdsourced models have gained significant
traction, proving that people are willing to participate in flexible, part-time
work. Our platform taps into this trend, offering individuals a way to earn extra
income while completing deliveries in a manner that aligns with their daily
routines.

Additionally, sustainability concerns are pushing consumers and businesses to

adopt greener practices. By leveraging existing travel routes instead of
deploying new vehicles, we provide an environmentally responsible alternative
that aligns with global carbon footprint reduction goals.
Key Features and Differentiators

 Crowdsourced Delivery Network: Our platform leverages a vast

network of local commuters, cyclists, and walkers to deliver products
efficiently. This reduces reliance on dedicated delivery fleets, cutting
operational costs and making deliveries more accessible.
 Cost-Effective Model: Traditional delivery services often involve high
fees due to vehicle maintenance, fuel costs, and warehousing needs. Our
model eliminates these extra costs, allowing businesses to save on
logistics expenses while ensuring affordable delivery options for
customers.
 Technology-Driven Operations: We employ AI-powered route
optimization to match deliveries with the most efficient commuter,
reducing delays and improving customer satisfaction. Real-time tracking
and seamless payment processing ensure a smooth user experience for
both businesses and delivery partners.
 Flexibility for Delivery Partners: Unlike traditional courier services that
require full-time commitment, our platform allows individuals to
participate as delivery partners on a flexible basis. This makes it an ideal
opportunity for students, gig workers, and professionals looking for
supplementary income with minimal effort and no need for significant
capital investment.
 Seamless Integration for Businesses: Our platform integrates easily
with existing e-commerce and retail operations, enabling businesses to
manage their deliveries efficiently without overhauling their logistics
infrastructure.
Industry description:
The company works in the last-mile delivery segment of the larger logistics and
transportation sector. The model uses crowdsourced delivery by enlisting
commuters to deliver packages in an economical and environmentally friendly
manner.

Industry Size & Annual Growth Rate

• In 2023, the last-mile delivery market in India was estimated to be worth INR
6,243.9 million.
• With a 13.4% compound annual growth rate (2024–2030), it is anticipated to
reach INR 15,051.9 million by 2030.

Structure of Industry at Present

• Crowdsourced platforms that specialize in food and grocery delivery include
Dunzo, UberEATS, and Swiggy Genie.
• Conventional courier services, such as FedEx and Delhivery, are costly for
small businesses but are skilled at handling large packages.
• Amazon Fresh and Swiggy Instamart are niche competitors that provide
speedy delivery of groceries and necessities.
• Quick commerce platforms, such as Zepto and Blinkit, offer lightning-fast
delivery of groceries and necessities but come with hefty operating costs.

Key Trends in the Industry

1. Rise in E-commerce & On-Demand Deliveries – More businesses are relying
on fast, localized delivery solutions.
2. Urbanization & Hyperlocal Growth – A shift towards community-driven and
commuter-based deliveries.
3. Sustainability Focus – Demand for eco-friendly and cost-efficient models,
reducing carbon emissions.
4. Technology & Real-Time Logistics – AI-driven route optimization and real-
time tracking systems.
5. Flexible Gig Economy – Growing participation from individuals looking for
secondary income.

Key Success Factors for the Industry

• Cost Efficiency & Scalability – Keeping operational costs low while
expanding services.
• Technology Adoption – AI-based route optimization and real-time tracking for
efficiency.
• Customer Convenience & Speed – Businesses prioritize on-demand and same-
day delivery solutions.
• Strategic Partnerships – Collaborations with retailers, local businesses, and
commuters.
• Regulatory Compliance – Ensuring proper insurance and labor law compliance
for crowdsourced workers.

Standard Financial Ratios for the Industry

• Gross Margin: Depending on the cost structure, it usually falls between 20 and
40 percent in logistics.
• Net Profit Margin: Initially low (5–10%), margins for last-mile delivery get
better as scale increases.
• Break-even Point: Usually 1-2 years for platforms, this depends on delivery
volume and subscription models.
• CAC (Customer Acquisition Cost): High initially, but retention through
subscriptions and recurring users improves profitability.
Economies of the Business

Revenue & Margins

The revenue model of the business is structured around three main sources:
standard delivery charges, subscription plans for businesses, and a commission
model on commuter earnings. This diversified approach ensures multiple
revenue streams while maintaining competitive pricing for customers and
partners.

1. Standard Delivery Charges:

The primary source of revenue is from individual deliveries, where standard

delivery costs range between ₹40 to ₹50 per delivery. For estimation
purposes, we consider an average delivery cost of ₹40.

 Projected Deliveries Per Month: 15,000

 Revenue from Deliveries: 15,000 deliveries × ₹40 = ₹6,00,000 per
month

This segment forms the core of the revenue model and contributes significantly
to the overall financial health of the business.

2. Subscription Plans for Businesses:

For businesses requiring premium services, a subscription plan is offered at

₹2,000 per month. These businesses benefit from priority services, bulk
discounts, and integrated logistics solutions.

 Estimated Business Subscribers: 50

 Revenue from Subscriptions: 50 × ₹2,000 = ₹1,00,000 per month
This model enhances revenue stability and ensures predictable cash flow,
reducing dependency on per-delivery earnings.

3. Commission on Commuter Earnings:

A commission-based model ensures that the platform earns a small percentage

from every successful delivery made by commuters. The business charges a
10% fee on commuter earnings, averaging around ₹3 per delivery.

 Commission from Deliveries: 15,000 deliveries × ₹3 = ₹45,000 per

month

This model ensures sustainable earnings from every transaction while keeping
the commuters incentivized.

Total Projected Revenue:

Summing up all revenue streams:

 Revenue from Deliveries: ₹6,00,000

 Subscription Revenue: ₹1,00,000
 Commission Revenue: ₹45,000
 Total Revenue: ₹7,45,000 per month

Costs & Breakeven Analysis

A detailed cost breakdown ensures a clear understanding of operational

expenses, allowing better financial planning.
1. Commuter Payments:

Commuters are the backbone of the delivery service, and they are compensated
at ₹30 per delivery.

 Total Payout: 15,000 deliveries × ₹27 = ₹4,05,000 per month

2. Technology & Maintenance:

To ensure seamless operations, costs are allocated for app maintenance, server
hosting, and software updates.

 Technology & Maintenance Expenses: ₹60,000 per month

3. Marketing & Customer Acquisition:

Marketing and customer acquisition strategies focus on digital ads, referral

programs, and strategic partnerships.

 Marketing Expenses: ₹50,000 per month

4. Legal, Compliance, and Insurance:

Legal expenses cover business registrations, insurance policies, and compliance

costs to operate smoothly.

 Legal & Compliance Costs: ₹30,000 per month

5. Other Operational Expenses:

This includes rent, utilities, office expenses, and administration costs.

 Office & Utilities: ₹60,000 per month

Total Monthly Expenses:

 Commuter Payments: ₹4,05,000

 Technology & Maintenance: ₹60,000
 Marketing & Customer Acquisition: ₹50,000
 Legal, Compliance, and Insurance: ₹30,000
 Office & Utilities: ₹60,000
 Total Expenses: ₹6,05,000 per month

Economic Model & Profitability

With revenue and costs analyzed, the estimated monthly profitability is

calculated:

 Total Revenue: ₹7,45,000

 Total Expenses: ₹6,05,000
 Net Profit: ₹1,40,000 per month

This profit margin provides room for reinvestment into business expansion,
marketing, and operational efficiencies.

Breakeven Analysis:

The business achieves breakeven when total revenue matches total expenses.
Given the current model, breakeven is easily attained by maintaining a steady
volume of deliveries and securing premium business subscriptions. The
company reaches a breakeven point well below the projected 15,000
deliveries per month, making the model highly sustainable.
Design & Development Plan (R&D):

Development Status & Tasks

• Present Phase: Commuter integration and platform design are in progress.
• Technology Requirements: Real-time tracking and matching system powered
by AI.
• Upcoming actions include strengthening alliances, bringing on new clients,
and streamlining logistics.

Difficulties & Risks

1. Regulatory Compliance: Guaranteeing non-professional delivery workers'
legal protection.
2. User Adoption: Persuading commuters and companies to adopt the model.
3. Trust & Reliability: Preserving the security and quality of deliveries.
4. Operational Scalability: Effectively handling variations in demand.

Product Improvement & New Features

• Live Tracking & Smart Matching: Using AI-based logistics optimization to
increase efficiency.
• Eco-Friendly Options: Collaborating with electric vehicle (EV) drivers and
bicycle couriers.
• Premium features that are subscription-based include branding, priority
support, and advanced analytics.
• Hyperlocal Expansion: Rolling out to additional major cities gradually

Projected Development Costs

• ₹60,000 per month for platform maintenance and technology development.
• ₹50,000 per month for marketing and customer acquisition.
• Legal Framework & Compliance: ₹30,000 per month.
• Monthly Office & Miscellaneous: ₹60,000.
• ₹2,00,000 is the total monthly development cost.

Proprietary Issues & Intellectual Property

• AI & Delivery Matching Algorithm: Possible proprietary or patentable
logistics software.
• Brand Identity: To safeguard branding, "Passthru Deliveries" is being
trademarked.
• User Data Protection: Guaranteeing safe transaction processing and adherence
to GDPR.
• Strategic IP Partnerships: Working together with nearby tech companies to
advance R&D.
Management team:

At Passthru Deliveries, our team is united by a shared commitment to

transforming last-mile delivery into an eco-friendly, community-driven solution.
Guided by our mission and vision, we work collaboratively to empower local
businesses, create economic opportunities for individuals, and foster stronger
neighborhood connections. Our team embodies innovation, strategic thinking,
and dedication, ensuring that every action aligns with our organizational values
and objectives.
By leveraging diverse expertise in innovation, strategy, finance, marketing, and
talent development, we collectively strive to deliver cost-effective and
customer-centric solutions. Together, we are building a platform that not only
reduces delivery costs but also strengthens community engagement, supports
local enterprises, and drives sustainability. Through collaboration and a passion
for excellence, our team is committed to shaping a future where last-mile
delivery seamlessly connects people, businesses, and communities.

I. Balaji - Founder & CEO

The visionary force behind Passthru Deliveries, is committed to revolutionizing
last-mile logistics. With a passion for innovative, people-centric solutions, he
drives the company’s mission to redefine delivery systems by leveraging the
power of community and technology.

II. Deeksha - Co-founder

The strategic mind that bridges vision and execution at Passthru Deliveries. Her
expertise in operational alignment ensures the platform delivers cost-effective
solutions while establishing itself as a trusted name in the logistics industry.
III. Vaishnavi - Talent Acquisition Specialist
The backbone of Passthru Deliveries’ workforce strategy, cultivating a thriving
workplace culture. Her dedication to nurturing talent and fostering collaboration
ensures that the company grows alongside its people, creating a dynamic and
innovative work environment.

IV. Lavanya - Innovation Strategist

Lavanya leads Passthru Deliveries’ research and development initiatives with a
focus on delivering cutting-edge solutions. Her commitment to innovation
ensures the platform remains impactful, competitive, and adaptable to the
evolving needs of the logistics industry.

V. Sachin - Finance Analyst

Sachin anchors the financial stability of Passthru Deliveries with strategic
planning and meticulous analysis. His expertise in managing the company’s
financial operations provides the foundation for sustainable growth and long-
term success.

VI. Aman Kumar - Marketing Head

As the driving force behind Passthru Deliveries’ marketing initiatives, Aman
Kumar crafts impactful campaigns that resonate with customers and
stakeholders alike. His vision amplifies the company’s presence in the
community, building a strong and enduring brand identity.
Startup Development Timeline for Passthru Deliveries:

Phase 1: Ideation and Market Research (Week 1 - Week 4)

Objective:
To validate the problem, analyze the market, and establish a business model.

Key Activities:
 Understanding the Problem Statement – Analyzing the inefficiencies
in current delivery systems and identifying gaps.

 Primary & Secondary Market Research – Surveys, focus groups, and

competitor analysis (Dunzo, Swiggy Genie, Porter, Rapido Local).

 Defining the Value Proposition – What makes Passthru Deliveries

unique? (AI-driven crowd-sourced delivery model).

 Competitor Benchmarking – Studying pricing models, delivery time,

and cost structures.

 Defining the Business Model – Using the Lean Canvas framework,

focusing on revenue streams (commission, subscription-based delivery,
partnerships).

 Legal & Compliance Research – Understanding regulations for logistics

startups in India.

Dependencies:
 Access to credible market reports.

 Survey responses from potential users.

Challenges:
 Accurately identifying target customers' pain points.

 Ensuring the uniqueness of the service in a competitive market.

Phase 2: Product Planning and Wireframing (Week 5 - Week 6)
Objective:
To develop the foundational architecture, wireframes, and feature roadmap.

Key Activities:
 Creating User Personas – Defining profiles for individual users,
delivery partners, and businesses.

 Designing App Flow & Wireframes – Using Figma or Adobe XD for

UI/UX mockups.

 Identifying the Tech Stack – Backend (Node.js, Firebase, Python for AI

routing), Frontend (React Native for cross-platform), and Payment
Gateways (Razorpay, UPI, Paytm).

 Security & Privacy Considerations – Implementing data protection

measures and encryption protocols.

 Defining Core Features –

o AI-based route optimization.

o Secure payments and instant payouts.

o Dynamic pricing based on demand.

Dependencies:
 Collaboration with UI/UX designers.

 Access to market trends in app usability.

Challenges:
 Ensuring a seamless and intuitive user interface.

 Choosing the best technology stack within budget constraints.

Phase 3: Minimum Viable Product (MVP) Development (Week 7 - Week
16)
Objective:
To build and test the first working version of Passthru Deliveries.

Key Activities:
 Backend Development – API development, database setup, and cloud
integration.

 Frontend Development – Implementing UI/UX designs into React

Native.

 AI-driven Features – Dynamic route optimization and smart assignment

of delivery partners.

 Payment Integration – Razorpay/Stripe integration for user payments

and driver payouts.

 Testing & Debugging – Continuous testing (unit, integration, user

acceptance).

Dependencies:
 Developer resources.

 AI/machine learning integration.

Challenges:
 Ensuring smooth scalability.

 Debugging complex AI algorithms.

Phase 4: Pilot Testing and Feedback (Week 17 - Week 20)

Objective:
To test the MVP with real users and refine the application.
Key Activities:
 Beta Testing with Local Businesses – Partnering with cafés, small
retailers for trial deliveries.

 User Feedback & UI Adjustments – Improving based on complaints

and suggestions.

 Stress Testing – Checking server performance under high loads.

 Data Security & Compliance Audits – Ensuring the app meets legal
requirements.

Dependencies:
 Engagement with test users.

 Technical ability to iterate rapidly.

Challenges:
 Getting meaningful feedback from users.

 Handling unexpected system failures.

Phase 5: Official Launch & Marketing Strategy (Week 21 - Week 28)

Objective:
To launch the app in Bangalore and build an initial user base.

Key Activities:
 Digital Marketing – Google Ads, social media campaigns.

 Referral & Incentive Programs – Discounts for first-time users,

cashback for referrals.

 Business Development Partnerships – Collaborating with corporate

offices, food outlets.
Dependencies:
 Marketing budget and execution strategy.

 Reliable delivery partners onboarded.

Challenges:
 Breaking through market noise.

 Managing delivery surge during peak times.

Phase 6: Scaling & Expansion (Week 29 - Ongoing)

Objective:
To expand operations to new cities and optimize logistics.

Key Activities:
 Securing Funding – Pitching to investors and VCs.

 Enhancing AI Features – Predictive analytics for demand forecasting.

 Hiring & Scaling Operations – Expanding the delivery network.

Dependencies:
 Financial backing from investors.

 Scalable technology infrastructure.

Challenges:
 Managing operational complexity.

 Adapting to city-specific logistics challenges.

References:

The following sources were referenced to develop the Passthru Deliveries

business model, market strategy, and technology framework:

 Grand View Research – India Last-Mile Delivery Market Report (2023-

2030).

 Allied Market Research – AI applications in logistics and predictive

analytics for delivery optimization.

 Statista – Data on customer preferences for on-demand delivery services.

 Swiggy & Dunzo Case Studies – Insights into scalability and pricing
strategies.

 Google AI & MIT Research – Route optimization and AI-driven delivery

efficiency.

 NIST & GDPR Compliance – Cybersecurity and data protection

guidelines.

 Startup Communities (NASSCOM, Y Combinator Blogs, TiE Bangalore)

– Market trends and growth strategies.
Acknowledgments

We recognize the contributions of the Passthru Deliveries team:

 Aman Kumar – Led the development of the business model, competitor

analysis, and strategic positioning of Passthru Deliveries in the logistics
space. Played a key role in structuring the Lean Canvas and Value
Proposition Canvas.
 Balaji – Focused on operational feasibility, risk assessment, and logistics
framework. Spearheaded discussions around pricing models and
commission structures.
 Vaishnavi – Conducted extensive market research, analyzing customer
pain points, and industry trends. Worked on regulatory compliance and
legal aspects related to logistics startups.
 Deeksha – Played a key role in customer segmentation and behavioral
analysis, using data-driven insights to refine the go-to-market strategy.
 Lavanya – Managed partnerships and collaborations, ensuring business
development strategies were aligned with industry standards.
 Sachin Singh – Developed financial projections, revenue modeling, and
funding strategies.
Glossary

1. Last-Mile Delivery – The final step of the delivery process, where goods
are transported from a distribution hub to the end customer.
2. Crowdsourcing – The practice of obtaining services or content by
soliciting contributions from a large group of people, typically via the
internet.
3. E-Commerce – Online platforms that facilitate buying and selling of
goods and services.
4. Route Optimization – The process of determining the most efficient
route for delivery to minimize time and cost.
5. Carbon Footprint – The total greenhouse gas emissions caused by an
individual, organization, or product.
6. Freemium Model – A business model that offers basic services for free
while charging for premium features.
7. Surge Pricing – A dynamic pricing strategy where prices increase in
response to higher demand.
8. Gig Economy – A labor market characterized by short-term contracts and
freelance work as opposed to permanent jobs.
9. Market Penetration – The strategy of entering and capturing a
significant share of a target market.
10.Strategic Partnerships – Collaborative agreements between businesses
to leverage each other’s strengths and expand reach.
Company, Concept and Products/Services:

Company Overview
Passthru Deliveries is an innovative, crowdsourced last-mile delivery platform
designed to revolutionize urban and semi-urban logistics. By leveraging the
everyday routes of local commuters, cyclists, and walkers, the platform
transforms routine commutes into efficient, cost-effective, and eco-friendly
delivery solutions.
The platform aims to bridge the gap between local businesses and consumers by
providing an affordable, hyper-local, and sustainable delivery service. Utilizing
AI-driven smart matching technology, Passthru Deliveries ensures that
businesses can access quick and reliable deliveries while commuters benefit
from an effortless way to earn extra income.
Passthru Deliveries stands at the intersection of community-driven logistics,
economic empowerment, and sustainability. By transforming daily commutes
into delivery solutions, the platform not only disrupts traditional last-mile
logistics but also fosters a thriving ecosystem where local businesses,
commuters, and consumers benefit collectively.
With an innovative approach, strong technological infrastructure, and a deep
commitment to sustainability and local engagement, Passthru Deliveries is
poised to lead the next generation of hyper-local, cost-effective, and eco-
friendly delivery services.

Problem Statement
Small businesses and local customers face challenges with last-mile deliveries
due to high costs, delays, inefficiencies in fixed routes, and rising expectations
for faster services. Traditional logistics services are neither affordable nor
adaptable for hyper-local, low-volume delivery needs.
Many local businesses in urban and semi-urban areas struggle with last-mile
delivery challenges, including:

 High Costs: Traditional logistics services are expensive for small, low-
volume deliveries.

 Delays & Inefficiencies: Fixed delivery routes lead to slow service and
fail to meet the demand for same-day deliveries.

 Limited Availability: Many areas lack cost-effective delivery options,

making logistics a significant challenge.

 Rising Customer Expectations: Consumers increasingly demand faster

and more flexible deliveries, affecting customer satisfaction and business
retention.

The Solution: Passthru Deliveries

Passthru Deliveries connects local businesses with commuters, cyclists, and
walkers via a crowdsourced network. Using real-time matching algorithms and
a mobile app, it offers eco-friendly, cost-effective, and ultra-local delivery
solutions, transforming everyday commutes into an opportunity to support local
economies.
Passthru Deliveries addresses these challenges through its unique, community-
driven model:

1. Crowdsourced Delivery Network

The platform utilizes local commuters, cyclists, and walkers for last-mile
delivery, turning everyday movement into efficient logistics. By leveraging their
existing routes, the model significantly reduces operational costs and delivery
times.
2. AI-Driven Real-Time Matching
Smart algorithms match deliveries with nearby available commuters, optimizing
efficiency and minimizing delays. This ensures that businesses receive rapid and
cost-effective delivery services.
3. User-Friendly Mobile App
Businesses can seamlessly request, track, and manage multiple deliveries in
real-time through the Passthru Deliveries mobile app. The app ensures smooth
communication between businesses and commuters, fostering a reliable and
transparent delivery ecosystem.
4. Low Delivery Costs
By eliminating reliance on expensive courier services and using existing
commuter routes, Passthru Deliveries significantly reduces delivery costs for
small businesses.
5. Community Engagement & Sustainability
The platform creates economic opportunities for local residents by providing an
additional source of income. Additionally, by prioritizing cyclists and walkers,
Passthru Deliveries promotes eco-friendly and zero-emission delivery solutions,
making it the greenest last-mile delivery option.

Target Market & Customer Segments

Passthru Deliveries focuses on urban and semi-urban markets, particularly in
metro cities where e-commerce and hyper-local deliveries are growing rapidly.
The key customer segments include:

Primary Customers:
 Local Businesses: Small retailers, restaurants, and grocery stores
requiring cost-effective, same-day delivery services.
  Service Providers: Industries like healthcare, legal documentation, and
professional services that require time-sensitive deliveries.

Secondary Customers:
 Daily Commuters: Cyclists, walkers, and vehicle owners who can
seamlessly integrate deliveries into their daily routes.

 Eco-Conscious Individuals: Those looking to contribute to sustainability

efforts while earning additional income.

Business Model & Revenue Streams

Passthru Deliveries operates on a multi-channel revenue model:

1. Delivery Fees
Businesses pay a fixed fee per delivery (~ ₹40), ensuring an affordable logistics
solution.
2. Subscription Model for Premium Features
Businesses can opt for a subscription plan (~₹2,000/month) to access priority
delivery, real-time analytics, and premium customer support.
3. Commission from Commuter Payments
The platform charges a 10% commission per delivery from the commuter’s
earnings (~₹3 per delivery).

Key Competitive Advantages

Passthru Deliveries differentiates itself through several unique selling
propositions (USPs):

1. "On-the-Go" Delivery Network

Unlike traditional courier services that require full-time drivers, Passthru
Deliveries taps into commuters already traveling, reducing delivery costs and
increasing efficiency.

2. Hyper-Local Focus & Community Engagement

By involving local residents as delivery partners, the platform fosters economic
growth and strengthens neighborhood connections, creating a community-
driven logistics ecosystem.

3. Personalized, Integrated Local Experience

Commuters can add personalized notes or recommendations for local
businesses, enhancing social engagement and customer loyalty.

Market Opportunity & Growth Potential

The Indian last-mile delivery market was valued at ₹6.24 billion in 2023 and is
expected to reach ₹15.05 billion by 2030. Passthru Deliveries strategically
targets a market share within metro cities, estimating a Serviceable Obtainable
Market (SOM) of ₹45 - ₹300 million in Bangalore alone through strategic
partnerships, digital marketing, and operational efficiency.

Feasibility & Implementation Strategy

1. Key Resources
 Technology: AI-powered route optimization, mobile app, and real-time
tracking system.

 Network of Commuters: Engaging cyclists, walkers, and local

commuters.

 Business Partnerships: Collaborations with local businesses to drive

adoption.
  Regulatory Compliance: Adhering to legal and labor laws for
crowdsourced drivers.

2. Go-To-Market Strategy
 Strategic Partnerships: Collaboration with local businesses needing
low-cost delivery solutions.

 Digital Marketing: Targeted social media and Google Ads campaigns to

reach businesses and commuters.

 Referral Programs: Incentives for businesses and commuters to refer

new users, ensuring organic growth.

Challenges & Risk Mitigation

While the model offers numerous advantages, certain challenges need to be
addressed:
 Technical Challenges: Ensuring reliable real-time delivery tracking and
seamless payment processing.

 Legal & Regulatory Risks: Liability coverage for non-professional

delivery personnel and compliance with labor laws.

 Governance & Fair Compensation: Transparent compensation

structures and data privacy concerns.

Passthru Deliveries mitigates these risks by incorporating smart governance

frameworks, insurance policies, and robust technological infrastructure to
ensure smooth operations.
Vision & Future Roadmap
Passthru Deliveries envisions redefining last-mile delivery by:
 Expanding across metro cities in India, targeting high-density business
districts.

 Enhancing AI-driven logistics to further optimize delivery efficiency.

 Partnering with sustainability initiatives to strengthen eco-friendly

delivery practices.

 Introducing a loyalty program to reward businesses and commuters for

frequent use.
Market analysis

Target Market:

 Local Businesses: Retailers, restaurants, and other small

businesses needing cost-effective and efficient delivery solutions.

 Commuters: Cyclists, walkers, and drivers looking to earn extra

income during their commutes.

Market Trends:

1. E-Commerce Boom:

 The e-commerce sector, which relies heavily on last-mile

delivery, has witnessed explosive growth, especially post-
pandemic. By 2025, e-commerce is expected to account for
nearly 30% of global retail sales.

 Last-mile delivery contributes to a significant share of logistics

costs—estimated at 53% of total shipping costs—highlighting
the critical role of cost-efficient solutions.

2. Consumer Expectations:

 Faster Deliveries: Customers now expect same-day or even

within-hour deliveries, making speed a critical factor.
 Flexibility and Transparency: Real-time tracking and customized
delivery options are becoming standard expectations.
 3. Community-Focused Models:
Platforms that emphasize local partnerships and community engagement
are gaining traction. These models build loyalty and create a sense of
belonging among users.

Market Size insights

1. Market Size:

 The global last-mile delivery market is projected to grow from ₹40

billion in 2020 to ₹66 billion by 2025, at a CAGR of approximately
10.3%. This growth is driven by:

o Increased online shopping.

o Rising urbanization.

o Consumer preference for on-demand delivery.

2. Local Delivery Focus:

 Local deliveries, particularly for food, groceries, and small retail

packages, represent 10–15% of total logistics spending in urban areas.
This aligns perfectly with our business model's focus on hyper-local,
community-driven solutions.

3. India-Specific Insights:

 India's last-mile delivery market is growing at a CAGR of 18–20%,

driven by rapid e-commerce adoption and urbanization.
  The urban delivery segment in India is estimated to account for over
₹15,000 crore annually, and our niche targets smaller businesses
overlooked by large platforms.

Competitor Study and Analysis

Market Sizing:
The last-mile delivery market is projected to grow, with increasing urbanization
and consumer demand for rapid service. Estimates suggest that the market could
reach several billion dollars within the next few years, particularly in urban
areas where local deliveries are essential.

Existing Players in the Market

Several established companies dominate the last-mile delivery market. Below is

an analysis of their strengths and weaknesses:

1. Dunzo

 Strengths: Strong brand presence, instant hyperlocal deliveries, diverse

service offerings.

 Weaknesses: High operational costs, dependency on gig workers leading

to fluctuating service quality.

2. Delhivery

 Strengths: Extensive logistics network, robust B2B and B2C fulfillment

capabilities.

 Weaknesses: Higher costs for small businesses, primarily focused on

larger-scale logistics rather than hyper-local needs.
3. Ecom Express

 Strengths: Specialized in e-commerce logistics, efficient handling of

high-volume deliveries.

 Weaknesses: Limited flexibility for small businesses, higher pricing for

low-volume deliveries.

4. Shadowfax

 Strengths: Strong network of delivery personnel, real-time tracking,

diverse delivery verticals.

 Weaknesses: High commission fees for gig workers, not as cost-effective

for small-scale businesses.

5. Bluedart

 Strengths: Well-established brand, reliable express deliveries, advanced

logistics infrastructure.

 Weaknesses: Expensive for small businesses, lacks crowdsourced

delivery options.

Entry Barriers
Challenges

1. Network Effect:

o Larger competitors like Dunzo, UberEats, and FedEx SameDay

already have well-established driver or delivery partner networks.

o Their extensive resources enable them to onboard and retain a large

workforce, ensuring consistent service availability and scalability.
 o These platforms often use incentives (e.g., bonuses, discounts) to
attract both delivery partners and customers, making it harder for
new entrants to establish a competitive network.

2. Brand Recognition:

o Major players like UberEats and FedEx benefit from strong brand
recall and customer trust due to their global presence and extensive
marketing efforts.

o Customers and small businesses may default to these recognized

names rather than explore newer platforms, especially when
reliability is critical.

Marketing and Communications strategy

Passthru Deliveries: Marketing and Communication Strategy
1. Overall Marketing Strategy:
 Focus: Hyperlocal, Community-Driven, and Eco-Conscious.

 Goal: Establish Passthru Deliveries as the preferred delivery solution for

local businesses and a rewarding earning opportunity for commuters in
Bangalore, and eventually expanding to other metro cities.

 Key Pillars:

 Value Proposition Communication: Clearly communicate the

benefits for each stakeholder (businesses, commuters, consumers).

 Digital-First Approach: Leverage online channels for targeted

advertising and community building.

 Strategic Partnerships: Collaborate with local businesses and

organizations.

 Brand Building: Create a recognizable and trustworthy brand

identity.

2. Pricing:
 Competitive Pricing: The base delivery fee is ₹40 per delivery. This is
positioned as more affordable than existing options like Dunzo, FedEx,
Shadowfax and other local courier services.

 Subscription Model (Premium Features): A subscription fee of

₹2,000/month for businesses unlocks priority delivery, analytics, and
potentially other features like dedicated support.

 Commuter Commission: Retain a 10% commission from payments to

commuters. This needs to be communicated transparently to attract and
retain commuters.

3. The Selling Cycle:

1. Awareness:

 Targeted Advertising: Run online ads on Google, Facebook, and

Instagram, focusing on specific demographics and locations in
Bangalore.

 Content Marketing: Create blog posts, articles, and social media

content highlighting the benefits of crowdsourced delivery, eco-
friendly practices, and supporting local businesses.

 Public Relations: Secure media coverage in local business

publications and community newspapers.

2. Interest:

 Landing Page Optimization: Ensure the website is user-friendly

and clearly showcases the value proposition for each stakeholder.

 Informational Webinars: Host webinars for potential commuters

to explain the earning opportunity and answer questions.

3. Decision:

 Testimonials & Case Studies: Showcase success stories from

businesses and commuters already using the platform.

 Competitive Comparisons: Clearly differentiate Passthru

Deliveries from competitors in terms of price, speed, and service
quality.

 Personalized Onboarding: Provide dedicated support during the

initial setup process for businesses and commuters.

4. Action:

 Simplified Registration: Make it easy for businesses and

commuters to sign up and get started.
  Incentives & Promotions: Offer discounts or bonus payments for
early adopters.

 Dedicated Support: Provide prompt and helpful customer service

to address any issues.

5. Retention:

 Loyalty Programs: Reward repeat business with discounts or

other perks.

 Referral Programs: Incentivize existing users to refer new

customers and commuters.

 Regular Communication: Keep businesses and commuters

informed about new features, updates, and promotions.

4. Sales Tactics:
 Partnership Building: Attend local business events and networking
opportunities to build relationships with potential partners.

 Referral Programs: Encourage businesses and commuters to refer new

users with incentives like discounts or bonus payments.

5. Advertising:
 Digital Advertising:

 Google Ads: Target keywords related to local delivery, same-day

delivery, and courier services in Bangalore.

 Facebook & Instagram Ads: Target specific demographics (e.g.,

small business owners, students, young professionals) with visually
appealing ads showcasing the benefits of Passthru Deliveries.

 Offline Advertising:
  Local Newspaper Ads: Place ads in community newspapers to
reach a wider audience.

 Flyers & Posters: Distribute flyers and posters in high-traffic

areas like cafes, grocery stores, and community centers.

6. Sales Promotions:
 Discounts for New Businesses: Offer a discount on the first month of
service to attract new businesses.

 Bonus Payments for New Commuters: Provide a bonus payment to

new commuters who complete a certain number of deliveries within their
first month.

 Referral Bonuses: Offer a referral bonus to existing users who refer new
businesses or commuters.

 Seasonal Promotions: Run promotions during festivals or holidays to

capitalize on increased demand.

7. Publicity:
 Community Engagement: Participate in local events and initiatives to
raise brand awareness and build goodwill.

8. Customer Service:
 Multi-Channel Support: Offer customer support through multiple
channels, including phone, email, and chat.

 Prompt Response Times: Respond to customer inquiries promptly and

efficiently.

 Personalized Service: Provide personalized service and address

customer concerns with empathy.

9. Warranty/Guarantee Policies:
  Delivery Guarantee: Offer a delivery guarantee to ensure that packages
are delivered on time and in good condition.

 Insurance Coverage: Provide insurance coverage for packages during

transit to protect against loss or damage. (Refer to legal implications)

10. Distribution:
 Mobile App: The primary distribution channel is the Passthru Deliveries
mobile app, available for download on iOS and Android.

 Website: The website serves as an informational hub and a platform for

businesses to manage their accounts.

 Strategic Partnerships: Collaborate with local businesses to offer

Passthru Deliveries as a delivery option on their websites or in-store.

Operational Plan for Passthru Deliveries

This detailed operational plan elaborates on the startup business idea of Passthru
Deliveries, which aims to create a crowdsourced delivery network by leveraging
local commuters to deliver products efficiently. The plan includes an in-depth
analysis of the operational strategy, location setup, facilities and equipment,
capacity and inventory, and legal considerations.

1. Operational Strategy

Operating Model
Front Stage (Customer Interaction):
The front stage represents the visible aspects of operations that interact directly
with users (businesses, commuters, and consumers). The following steps outline
the front-stage process:
1. Business Registration: Local businesses and Commuters register on the
platform via the app, providing details about their delivery needs.

2. Delivery Requests: Businesses place delivery requests specifying

package details, destination, and delivery time, and an OTP is sent to
them.

3. Commuter Matching: Commuters who are already traveling on relevant

routes receive notifications about available delivery opportunities, and an
OTP is shared with them.

4. Streamlined Security: OTP Verification

1. Notification to Commuters:
When a delivery request is assigned to a commuter, they receive a
notification via SMS or the app. This notification includes relevant details
such as pickup location, delivery destination, and an OTP (One-Time
Password) for package verification.
 2. Package Pickup Verification:
Upon arriving at the pickup location, the commuter provides the OTP to
the business or sender to verify their identity and confirm the package
handover.
3. Delivery Confirmation to Customers:
After picking up the package, a unique OTP is generated and sent to the
customer via SMS or app notification. This OTP ensures secure delivery
and acts as proof of receipt.

4. Final Handover to Customers:

At the delivery location, the customer provides the OTP to the commuter
to confirm receipt of the package. This step prevents errors such as
delivering to the wrong person and ensures accountability.

5. Business Confirmation:
Once the delivery is successfully completed, a final OTP confirmation is
sent to the business that initiated the delivery request. This notification
serves as proof that the package was delivered successfully and allows
businesses to track their deliveries effectively.

5. Real-Time Tracking: Consumers can track their orders in real-time

through the app for transparency and convenience.

6. Feedback Loop: After delivery completion, businesses and consumers

can rate their experience to ensure quality control.

Back Stage (Platform Management):

The back stage involves all internal operations that ensure smooth functioning:
  AI-Driven Matching System: The platform uses AI algorithms to match
delivery requests with commuters based on route optimization, package
size, and timing.

 Admin Dashboard: A centralized dashboard monitors commuter

performance, resolves disputes, and tracks key metrics like delivery
success rates.

 Payment Processing System: Secure payment gateways handle

transactions between businesses, commuters, and the platform.

 Customer Support: A dedicated support team addresses any issues faced

by users.

Operating Cycle
The operating cycle is designed for efficiency:
1. Onboarding: Businesses and commuters register on the platform with
proper verification.

2. Request Placement: Businesses submit delivery requests via the app.

3. Matching & Notification: The system matches requests with commuters

based on proximity and route alignment.

4. Delivery Execution: Commuters pick up packages from businesses and

deliver them to consumers along their route.

5. Payment & Feedback: Payments are processed automatically, and

feedback is collected to improve service quality.

2. Location: Bangalore
Bangalore is strategically chosen as the launch location due to its urban density,
high commuter traffic, and growing demand for hyperlocal deliveries. Key
factors supporting this choice include:
  E-Commerce Growth: Bangalore is a hub for e-commerce activities
with a high volume of last-mile deliveries.

 Tech-Savvy Population: The city's population is accustomed to using

mobile apps for daily services.

 Traffic Patterns: Bangalore's traffic congestion makes traditional courier

services less efficient, creating a market opportunity for crowdsourced
solutions.

Office Setup in Bangalore:

 A small office space in a central location like Koramangala or Indiranagar
will serve as the operational hub.

 Proximity to key business districts ensures easy access for partnerships

with local businesses.

3. Facilities and Equipment

To ensure seamless operations, the following facilities and equipment are
required:
Office Space
 A compact office space (approximately 500–800 sq. ft.) equipped with
basic amenities like desks, chairs, lighting, and air conditioning.

IT Infrastructure
1. Computer Systems:

 Four to five high-performance computers with updated software

for managing operations such as commuter onboarding, route
optimization algorithms, and customer support systems.

2. Internet Connection:
  High-speed internet connectivity (minimum 100 Mbps) to support
real-time data processing and communication between users.

Technical Staff
 Two technical employees will be hired to manage:

 App development and maintenance.

 AI algorithm optimization for route matching.

 Troubleshooting technical issues faced by users.

Communication Tools
 Dedicated phone lines for customer support.

 Collaboration tools like Slack or Microsoft Teams for internal

communication.

Backup Systems
 Uninterruptible Power Supply (UPS) systems to ensure continuous
operations during power outages.

 Cloud-based storage solutions for secure data management.

3. Capacity and Inventory

Hardware Inventory
1. Computers: High-performance desktops or laptops with specifications
suitable for running AI-based applications and managing large datasets.

2. Printers: For generating reports or physical documentation when needed.

3. Power Backup: Inverter or generator systems to ensure uninterrupted

operations during power failures.
Software Inventory
1. Mobile App:

 Separate interfaces for businesses (to place requests), commuters

(to accept deliveries), and consumers (to track orders).

 Features include user registration, real-time tracking, payment

processing, feedback collection, and notifications.

2. Admin Dashboard:

 Centralized control panel for monitoring operations such as active

deliveries, commuter performance metrics, financial reports, etc.

3. Payment Gateway:

 Secure integration with platforms like Razorpay or Paytm for

seamless transactions.

5. Legal Issues Affecting Operations

Several legal considerations must be addressed to ensure compliance with local
laws:

Labor Laws
 Commuters should be classified as independent contractors rather than
employees to avoid labor disputes related to wages or benefits.

 Contracts should clearly outline terms of engagement.

Traffic Regulations
 Commuters must adhere to local traffic laws while delivering packages.

 The platform should include disclaimers absolving liability in case of

commuter violations during delivery.
Insurance Coverage
 Liability insurance must be arranged to cover damages or losses incurred
during transit.

Data Privacy Compliance

 The platform must comply with India's Personal Data Protection Bill by
ensuring secure storage of user data (businesses, commuters, consumers).

 User consent should be obtained before collecting personal information.

Taxation Policies
 Proper accounting of revenue streams (e.g., delivery fees) is essential for
compliance with Goods and Services Tax (GST) regulations in India.

Table of Operational Plan

Component Details

Crowdsourced delivery network leveraging AI-driven real-

Operating Model time matching systems

Location Bangalore

Facilities & Office space with computers, internet connection, technical

Equipment staff

Capacity &
Inventory High-performance computer systems, mobile app platform

Labor laws, traffic regulations, insurance coverage, data

Legal Issues privacy compliance
Risk and Assumptions:

I. Risks:
A. Market and Competition Risks:
1. Intense Competition: The hyperlocal delivery market is crowded. Major
players with strong brand recognition (Dunzo, Swiggy Genie, Porter)
already exist, and new entrants are likely.

Mitigation Strategies:
  Niche Focus: Target specific industries (e.g., restaurants,
florists) with specialized delivery needs.

 Differentiated Value Proposition: Emphasize the eco-

friendly aspect, community support, and affordability as key
differentiators.

 Partnerships: Form strategic alliances with local businesses

to secure exclusive delivery contracts and market share.

 Competitive Pricing: Passthru Deliveries is "More

affordable than Dunzo, FedEx, and local courier services".

2. Customer Acquisition Challenges: Attracting and retaining businesses,

commuters, and consumers requires effective marketing and a compelling
user experience.

Mitigation Strategies:

 Multi-Channel Marketing: Implementing a comprehensive

marketing strategy, including targeted online advertising
(Google Ads, Facebook/Instagram), content marketing, and
public relations.

 Incentive Programs: Offer attractive discounts, bonus

payments, and referral rewards to drive user acquisition and
loyalty.

 Streamlined Onboarding: Simplify the registration and

onboarding process for all user types (businesses,
commuters, consumers) with clear instructions and dedicated
support. The wireframe has a business and commuter
selection option, so users can get specific instructions.
  Customer Relationship Management (CRM): Implement
a CRM system to track customer interactions, identify pain
points, and personalize service.

3. Demand Fluctuations: Delivery demand may vary significantly based

on time of day, day of the week, seasonality, and special events.

 Mitigation Strategies:

 Dynamic Pricing: Implement dynamic pricing algorithms to

adjust delivery fees based on supply and demand.

 Commuter Scheduling: Optimize commuter scheduling

based on historical demand patterns and real-time data.

 Pre-Booking Options: Allow businesses to pre-book

delivery slots to guarantee availability during peak periods.

B. Operational Risks:
1. Commuter Reliability: Ensuring consistent service quality, timely
deliveries, and professional conduct from a crowdsourced workforce
presents a significant challenge.

Mitigation Strategies:

 Stringent Screening Process: Implement a thorough

screening process for commuters, including background
checks, identity verification, and vehicle inspections.
  Comprehensive Training: Provide commuters with clear
guidelines, training materials, and best practices for safe and
efficient deliveries.

 Performance Monitoring: Monitor commuter performance

metrics (delivery time, customer ratings, successful
deliveries) and implement a feedback system.

 Incentive Programs: Reward high-performing commuters

with bonus payments, priority access to deliveries, and
recognition.

 Clear Communication Channels: Establish clear

communication channels between the platform, commuters,
and customers to address issues promptly.

2. Logistical Challenges: Traffic congestion, incorrect addresses, package

damage, and unexpected delays can disrupt deliveries and negatively
impact customer satisfaction.

Mitigation Strategies:

 Route Optimization: Utilize route optimization algorithms

to identify the most efficient delivery routes, considering
real-time traffic conditions.

 Address Verification: Implement address verification tools

to ensure accurate delivery locations.

 Package Insurance: Offer insurance coverage for packages

during transit to protect against loss or damage. (Refer to
legal implications).
  Contingency Planning: Develop contingency plans for
handling delivery exceptions, such as traffic accidents,
vehicle breakdowns, or adverse weather conditions.

3. Scalability Issues: Expanding operations to new cities or handling a

surge in demand can strain resources, infrastructure, and personnel.

Mitigation Strategies:

 Scalable Technology Infrastructure: Invest in scalable

cloud-based technology infrastructure to accommodate
increasing user volume and data traffic.

 Standardized Procedures: Develop standardized

operational procedures and training materials to ensure
consistency across different locations.

 Strategic Partnerships: Establish partnerships with local

logistics providers or courier services to augment delivery
capacity during peak periods.

C. Technology and Security Risks:

1. System Downtime: Technical glitches, server outages, or app
malfunctions can disrupt operations and damage the company's
reputation.

Mitigation Strategies:

 Robust Infrastructure: Invest in robust and reliable

technology infrastructure with redundancy and failover
capabilities.
  Regular Maintenance: Conduct regular maintenance and
testing to identify and resolve potential issues proactively.

 Downtime Communication: Develop a communication

plan to notify users of any downtime and provide updates on
the restoration process.

2. Security Breaches: Data breaches or security vulnerabilities can

compromise user data and expose the company to legal liabilities and
reputational damage.

Mitigation Strategies:

 Data Encryption: Implement strong data encryption

measures to protect sensitive user information.

 Access Controls: Enforce strict access controls to limit

access to sensitive data and systems.

 Security Audits: Conduct regular security audits and

penetration testing to identify and address potential
vulnerabilities.

 Compliance: Comply with relevant data privacy regulations

(e.g., GDPR, CCPA) and implement data breach response
procedures.

3. Reliance on Third-Party Services: Dependence on external providers

for essential services (e.g., mapping APIs, payment gateways) can create
vulnerabilities if these providers experience disruptions or change their
pricing policies.
 Mitigation Strategies:

 Diversification: Diversify reliance on third-party services

by using multiple providers for critical functions.

 Service Level Agreements (SLAs): Negotiate favorable

SLAs with third-party providers to ensure service
availability and performance.

 Contingency Planning: Develop contingency plans for

switching providers if necessary.

D. Legal and Regulatory Risks:

1. Changing Regulations: New laws and regulations related to labor,
traffic, data privacy, or consumer protection can impact the business
model and require costly compliance measures.

Mitigation Strategies:

 Legal Counsel: Engage experienced legal counsel to advise

on regulatory matters and ensure compliance.

 Industry Monitoring: Stay informed about regulatory

developments and participate in industry associations to
advocate for favorable policies.

 Compliance Programs: Implement compliance programs to

address regulatory requirements and mitigate legal risks.

2. Worker Classification: Misclassifying commuters as independent

contractors instead of employees can expose the company to labor
disputes, tax liabilities, and legal penalties.

Mitigation Strategies:
  Independent Contractor Agreements: Develop clear and
legally sound independent contractor agreements that define
the relationship between the company and commuters.

 Compliance with Labor Laws: Ensure that the company's

practices comply with applicable labor laws regarding
worker classification.

 Consult with Experts: Consult with legal and HR experts to

ensure proper worker classification and compliance with
labor regulations.

II. Assumptions:

A. Market Assumptions:
1. Strong Demand for Hyperlocal Delivery: The business model relies on
sustained demand for fast, affordable, and convenient hyperlocal delivery
services.

 Validation: Continuously monitor market trends, conduct

customer surveys, and analyze delivery data to assess demand and
identify growth opportunities.

2. Willingness of Businesses to Adopt Crowdsourced Delivery: Local

businesses must be willing to embrace a crowdsourced delivery model
and integrate Passthru Deliveries into their operations.

 Validation: Conduct targeted outreach to local businesses, offer

free trials or pilot programs, and provide compelling case studies to
demonstrate the benefits of the platform.
B. Operational Assumptions:
1. Sufficient Commuter Availability: The platform must attract and retain
a sufficient pool of reliable commuters to meet delivery demand.

 Validation: Implement effective commuter recruitment strategies,

offer competitive compensation and incentives, and create a
positive commuter experience.

2. Efficient Delivery Matching: The AI-powered matching system must

accurately and efficiently connect deliveries with available commuters in
real-time.

 Validation: Continuous Testing and optimize the matching

algorithm to improve its accuracy, speed, and scalability.

3. Reliable Technology Performance: The mobile app and platform must

operate reliably and efficiently to ensure a seamless user experience for
businesses, commuters, and consumers.

 Validation: Implement rigorous testing procedures, invest in

robust technology infrastructure, and provide prompt technical
support to address any issues.

C. Financial Assumptions:
1. Affordable Customer Acquisition: The company must be able to
acquire customers (businesses and commuters) at a reasonable cost.

 Validation: Track customer acquisition cost (CAC) and optimize

marketing campaigns to improve efficiency and reduce expenses.

2. Projected Revenue Achievement: The company must achieve projected

revenue targets based on delivery volume, subscription rates, and
commission income.
  Validation: Monitor revenue metrics closely, analyze sales data,
and adjust pricing or marketing strategies as needed to meet
financial goals.

Financial Projections Report for Passthru Deliveries

1. Executive Summary
It presents the financial projections for Pass thru Deliveries, a logistics and
delivery service provider, for the fiscal year April 2025 – March 2026. The
analysis is based on key assumptions, revenue streams, and cost structures
derived from the attached financial model.

Key Highlights:
Projected Revenue (FY 2025-26): [To be calculated based on monthly
projections]
Revenue Growth Rate (CAGR): 9.8% monthly
Primary Revenue Sources:
 Delivery fees (Basic & Premium models)
  Advertising revenue
 Penalty & cancellation charges

2. Market Opportunity & Assumptions

Market Sizing & Growth Potential

Metric Value (INR) INR Equivalent (Exchange Rate: 86.95)

TAM - ₹6,243,900,000 ~INR 54,300 Cr

SAM - ₹4,500,000,000 ~INR 39,127 Cr
SOM - ₹300,000,000 ~INR 2,608 Cr

CAGR (Compounded Annual Growth Rate): 9.8%

Monthly Growth Rate: 0.82% (derived from annual CAGR)
Key Assumptions:
a. App Downloads Growth:
Starting at 2,000 downloads in April 2025, growing at 0.82% monthly.

b. Delivery Volume Growth:

Basic Deliveries: Starts at 15,000/month, grows at 0.82% monthly.
Premium Deliveries: Starts at 5,000/month, grows at 0.82% monthly.

c. Pricing Model:
Basic Delivery Fee: ₹40 per delivery (fixed).
Premium Delivery Fee: ₹2,000 per delivery (fixed).

d. Other Revenue Streams:

Advertising: ₹45,000/month (growing at 0.82% monthly).
 Penalty Fees: ₹40,000/month (growing at 0.82% monthly).

3. Revenue Projections

Monthly Revenue Breakdown (INR)

Month Delivery Subscription Advertisin Penalty Total
Fees g Fees Revenue
Apr25 ₹200,000 ₹40,000 ₹45,000 ₹40,000 ₹325,000

May25 ₹280,000 ₹50,000 ₹45,368 ₹40,656 ₹416,024

Jun25 ₹360,000 ₹60,000 ₹45,738 ₹41,320 ₹507,058

Mar26 ₹1,440,000 ₹220,000 ₹49,212 ₹47,832 ₹1,757,044

Revenue Growth Trend

Delivery Fees: Increase from ₹200K (Apr25) to ₹1.44M (Mar26).
Total Revenue: Expected to grow from ₹325K (Apr25) to ~₹1.76M (Mar26).

4. Cost Structure Analysis

Cost Item Amount (INR)
Fixed Cost Technology & Platform Maintenance ₹80,000
Fixed Cost Legal & Compliance ₹50,000
Fixed Cost Office Space & Utilities ₹50,000
Total Fixed Costs ₹180,000
Variable Cost Commuter Payments ₹540,000
Variable Cost Marketing & Customer Acquisition ₹50,000
Variable Cost Customer Support ₹30,000
Total Variable Costs ₹720,000
Total Monthly Costs ₹900,000
 (Grows to 968,400 as of Mar26)

5. Key Financial Metrics & Insights

Profitability Outlook
Month Total Revenue Total Costs Net Profit/Loss
Apr25 ₹325,000 ₹900,000 ₹575,000
May25 ₹416,024 ₹905,084 ₹489,060
Mar26 ₹1,757,044 ₹968,400 ₹788,644

Breakeven Analysis
 Expected Breakeven Point: ~Month 810 (subject to cost optimizations).
 Annual Net Profit (Projected): ~₹2.5M (after initial losses).
Recommendations:
1. Optimize Customer Acquisition Costs (CAC): Reduce dependency on high
marketing spend.
2. Expand Premium Deliveries: Higher margin segment with significant growth
potential.
3. Cost Control: Review fixed costs (e.g., renegotiate office leases).
 Appendices: Financial Projections for Passthru Deliveries

Table A1: Monthly Revenue Forecast (April 2025 – March 2026)

Month Delivery Subscription Advertising Penalty Total

Fees Revenue Revenue Fees Revenue
(INR) (INR) (INR) (INR) (INR)
Apr 25 200,000 40,000 45,000 40,000 325,000
May 25 280,000 50,000 45,368 40,656 416,024
Jun 25 360,000 60,000 45,738 41,320 507,058
Jul 25 480,000 70,000 46,112 42,000 638,112
Aug 25 600,000 80,000 46,488 42,688 769,176
Sep 25 720,000 100,000 46,868 43,384 910,252
Oct 25 840,000 120,000 47,251 44,088 1,051,339
Nov 25 960,000 140,000 47,636 44,800 1,192,436
Dec 25 1,080,00 160,000 48,025 45,520 1,333,545
0
Jan 26 1,200,00 180,000 48,418 46,248 1,474,666
0
Feb 26 1,320,00 200,000 48,813 46,984 1,615,797
0
Mar 26 1,440,00 220,000 49,212 47,728 1,756,940
0

Appendix B: Cost Structure Breakdown

Table B1: Fixed Costs (Monthly)

Cost Category Amount
(INR)
Technology & Platform MaintenanceTable A1: Monthly
Revenue Forecast (April 2025 – March 2026)
Month Delivery Subscription Advertising Penalty Total
Fees Revenue Revenue Fees Revenue
(INR) (INR) (INR) (INR) (INR)
Apr 25 200,000 40,000 45,000 40,000 325,000
May 25 280,000 50,000 45,368 40,656 416,024
Jun 25 360,000 60,000 45,738 41,320 507,058
Jul 25 480,000 70,000 46,112 42,000 638,112
Aug 25 600,000 80,000 46,488 42,688 769,176
Sep 25 720,000 100,000 46,868 43,384 910,252
Oct 25 840,000 120,000 47,251 44,088 1,051,339
Nov 25 960,000 140,000 47,636 44,800 1,192,436
Dec 25 1,080,000 160,000 48,025 45,520 1,333,545
Jan 26 1,200,000 180,000 48,418 46,248 1,474,666
Feb 26 1,320,000 200,000 48,813 46,984 1,615,797
Mar 26 1,440,000 220,000 49,212 47,728 1,756,940

80,000
Legal & Compliance 50,000
Charges
Office Space & Utilities 50,000
Total Fixed Costs 180,000

Table B2: Variable Costs (April 2025 – March 2026)

Mont Commute Marketing Custome Transactio Salarie Total

h r & r n Fees s& Variabl
Payments Acquisitio Support (INR) Admin e Costs
(INR) n (INR) (INR) (INR) (INR)
Apr 540,000 50,000 30,000 5,000 100,000 725,000
25
May 544,428 50,410 30,246 5,041 100,820 730,945
 25
Jun 25 548,892 50,823 30,495 5,082 101,646 736,938
Mar 592,000 54,000 32,400 5,400 108,000 791,800
26

Key Observations:

 Commuter payments are the largest variable cost, scaling with delivery
volume.
 Marketing and salaries grow at 0.82% monthly in line with revenue
assumptions.

Appendix C: Profit & Loss Statement (Annual Summary)

Table C1: Annual P&L (FY 2025-26)

Metric Amount (INR)
Total Revenue 12,500,000
Total Costs 10,200,000
Gross Profit 2,300,000
Operating 18.4%
Margin

Breakdown:

 Net Loss (First 6 Months): ₹2.8M (due to high initial costs).

 Net Profit (Last 6 Months): +₹5.1M (scaling revenue outweighs costs).

Appendix D: Breakeven Analysis

Calculations:

 Fixed Costs (Annual): ₹2,160,000

 Contribution Margin (Avg.): 35%
 Breakeven Revenue: ₹6,171,428
 Estimated Breakeven Month: October 2025

Appendix E: Sensitivity Analysis

Table E1: Impact of Key Assumptions on Profitability
Scenario Revenue Change (INR) Profit Impact (INR)
10% Higher Delivery Volume +1.25M +950K
5% Lower CAC +250K +250K
20% Premium Uptake +2.1M +1.6M

Conclusion:

 Premium deliveries and CAC efficiency are the biggest profit levers.

Appendix F: Assumptions & Sources

Table F1: Key Assumptions

Parameter Value Source
Exchange Rate 86.95 RBI, March 2025
(INR/INR)
CAGR 9.8% Industry Reports
Basic Delivery Fee ₹40 Competitive
Benchmarking
Premium Delivery Fee ₹2,00 Internal Pricing Strategy
0