ShapShap Company Profile (2023)

hey folks my guest today is khalil halilu he is a code named ksh she's a nigerian tech expert a thought leader and well-versed entrepreneur he's the founder of shop chap an on-demand delivery service he's determined inspiring the next generation of mavericks that will see africa grow to meet the ranks continentally his tool is an online marketplace for on-demand logistics services khalil you ready to take it to the top sure okay so with any marketplace there's a buyer and there's a seller who's the buyer and seller in your marketplace well the buyer in my marketplace is the uh which what we call the supply i mean what you call the demand are people that are placing orders that want things to be delivered uh it could be an sme which is a restaurant or it could be an individual that is trying to move an item from point a to point b okay and so it's a restaurant and then sorry who's on the other side uh the driver which is okay is this your main use case drivers getting connecting to restaurants to deliver meals yeah that's the main use case uh although we have some parcels you know we have a couple of things that smes uh you know move from one place to another but the biggest market is food okay so restaurants and drivers and they're moving food so in the past 30 days how many restaurants delivered at least one meal using uh chef shop well we have a customer base of 5000 and active users are around 80 percent um yeah so we are thinking easily 4 000 p restaurants okay and how many drivers deliver those meals for the 4000 restaurants uh an average of 280 drivers actively and how do you define active well anyone doing a deliveries party uh it's gonna be active eight yeah it's wow that's a lot okay so that's a very high bar for what you definitely active at least eight deliveries per day yes it delivers per day okay so how many yesterday how many deliveries did you do yesterday we did around 380 deliveries oh what's going on there youtube good to see you guys now imagine this you love watching these interviews with sas founders but imagine if we took all of the valuation data out from over 2807 interviews i've done manually saves you a lot of time well we've done this we've built it into the beautiful interface inside of founder path check this out i'll show you how you can access this in a second but you log in you connect your stripe account you see your valuation real time you can see what it changed over the past 88 days and even set goals for valuation this year now the secret evaluation is there's many different ways to value a sas business so the reason you're going to see three or four different valuations inside of your frowner path dashboard this is all free by the way is because depending on who's doing the buying of your sas company you're going to get a different valuation a vc is going to pay a different valuation private equity firm is different if you're going to do a minority sale that's different and if you sell the whole 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we're thrilled to bring it to you all right we're going to go back to the youtube video here in a second but if you want to check this tool out if you want to jump in and sign up you can check it out for free to get your valuation at this link this link founderpath.com forward slash products forward slash evaluations or if you go to founderpath.com and hover over products click on get your valuation here and go ahead and sign up to give it a whirl again all that valuation data live right inside the platform i hope to see you there all right let's jump back into the interview okay interesting so so if i take 380 deliveries divided by eight you had about 40 40 to 50 drivers active on the platform yeah so it's seasonal um towards the weekend you get uh so that's monthly active right towards the weekend you have drivers doing close 20 deliveries per day you know because of the the weekend traffic uh but during the days it goes as low as uh you know five so by the time you kind of average it you know you get that eight that's our target on a monthly basis and khalil before we learn how you signed up so many restaurants it's incredible how do you make money what's the revenue model so we take commission on orders uh just like uber you know and the likes uh gig economy and that's our primary you know source of income uh but also considering the environment we operate in we have asset financing you know so we partner with banks to finance people that want to work in this gig economy space are giving them bikes and other kind of vehicles and we make a markup on it interesting okay if you break down your revenue between commissions and your asset financing what percent is bigger what makes up more revenue um well uh i'll say 60 40 you know because asset financing is 60 is why 60 is uh commission and then 40 is asset financing and i cut you off what were you going to say yeah um you know the margin for uh you know commission is small you know but the asset financing is you know it's much bigger so let's look at the percent on a commission on orders for a second what's the average order value the average order value is about 1 000 uh which is uh just a little bit over a dollar like one point two dollars okay so the so the average order is a dollar twenty yeah i thought that's random all right guys we will rebook with khalil audio connections too rough here but hopefully you enjoyed that check him out support him shopshop.com one more thing before you go we have a brand new show every thursday at 1 pm central it's called shark tank for sas we call it deal or bust one founder comes on three hungry buyers they try and do a deal live and the founder shares back end dashboards their expenses their revenue arpu cac ltv you name it they share it and the buyers try and make a deal live it is fun to watch every thursday 1pm central additionally remember these recorded founder interviews go live we release them here on youtube every day at 2 p.m central to make 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