A Last Mile Digital Forwarder for IKEA, Decathlon, Migros and Metro (Aike Festini, CEO and Co-Founder, Luckabox)

00:00:01: Hello and welcome to the logistics drive I'm boss felgendreher found off the root of six tribe and Today's Show is hosted by Donna Van Der heide yes Donna was Beck,

00:00:14: after taking a short break from hosting the podcast to raise a cool 20 million dollars for parcel perform the startup that she co-founded five years ago,

00:00:23: Dennis guest today is I can festini another inspiring female La Tech founder,

00:00:28: Ikea is the CEO and co-founder of luckabox luckabox of space and Switzerland and manages last mile delivery services for e-commerce companies and retailers like Ikea decathlon Migos and Metro.

00:00:41: How exactly the service Works what plans to company has for the future and much more you'll find out in this episode are still just a stripe

00:00:49: which is brought to you by all partner gray orange great orange offers a I enabled smart robots that can automate many important warehouse and fulfillment functions I actually had a cash Gupta

00:00:58: the founder and CTO of gray orange on the bvl digital podcast that's the official podcast of the German Logistics Association bvl that I'm also hosting and producing most episodes are in German but occasionally we have English-speaking guests like a cat on

00:01:11: so if you're interested I'll leave a link to that episode in the show notes and now without further delay Here Comes IQ festini from luckabox enjoy.

00:01:21: Alright today we have a very very special guest and I'm super happy that she's joining us today I have another female founder and Logistics welcome to the logistics try piker thanks for being here thanks I think.

00:01:35: Yeah thanks for making the time and I think a lot of people might be curious obviously you know two females talking about logistics is something that doesn't happen too often at least,

00:01:47: not that we see it enough I would say,

00:01:50: so let me start with one question how did you end up in logistics how did you get there my background is actually in Tech and take development my co-founder is the logistics crack she grew up in a logistics family.

00:02:05: So when we met we thought that we could combine my tech background with her Logistics background and that's how Luca box was started,

00:02:12: I have no idea about logistics but you do now because things are going extremely well for you at you've got box right do you want to give us a bit of an introduction on what you're doing yeah luckabox,

00:02:22: is is you know the drill right is a carrier independent Logistics solution.

00:02:28: What we do is we support retailers meant to manage their last mile more efficiently and more.

00:02:35: Super impressive and you know like obviously this topic is also very close to my heart.

00:02:40: I learned today already when we had a quick conversation you do much more than just doing the visibility you actually help people to also,

00:02:48: pick the right provider and if I got you right you're based in Switzerland right that's correct and yes we do we do support we do have a logistics competence team at luckabox,

00:03:00: that really screens evaluates and recruits new carriers for our platform.

00:03:07: Constantly so some of our customers have no idea about logistics.

00:03:11: And we help them pick the right provider or the right combination of providers and some of our customers have their carriers already and then they use our tool for visibility,

00:03:21: awesome super cool and yeah I mean how many providers do you have by now because like getting them onboard convincing them to join a startup solution might not even be that simple right,

00:03:32: it's actually we have never had a big Challenge on the supply chains are currently on the supply at sorry on the supply side of things I talk about supply chain of isn't too often I think currently today we have 65 carriers that are connected

00:03:46: and they range from rat large parcel providers to biking good,

00:03:51: companies to bike couriers and SME Express courier companies super impressive that's a very wide range,

00:04:00: but none of these careers are actually under your belt right these are all existing providers that one would find independently in the market already,

00:04:09: correct all the all established logistics companies career and I guess 65 then you go Way Beyond just Switzerland or did you find some anywhere,

00:04:18: that's insulin is not that small so yeah it's we yeah we all the 65 actually are in Switzerland core where current were currently we're currently starting with Metro in Dusseldorf so expanding to Germany is it yes slowly but surely.

00:04:33: So I obviously had to look at your website and I saw that you have a quite a few very big names under your belt on the customer side already.

00:04:43: Do you want to share a little bit more on that yeah I think one of the biggest brands definitely is the world's biggest Furniture house Ikea then we work with me grow valora is a large kiosk chain.

00:04:58: Then they cut law the sports good company.

00:05:03: And yeah quite a few quite a few retailers on the E grocery side as well that's actually a big chunk of our volume.

00:05:11: And then some smaller some smaller superfood and food companies as well all right.

00:05:17: And now if we fight sample talk about Ikea right there probably like very big and they could go Outsourcing like their own set of carriers that then.

00:05:27: Them but they came to you so can you talk us a little bit through the use case that usually motivates a customer,

00:05:33: um so yeah start on the journey with luckabox yeah Ikea actually scouted us so Ikea approached us because they were looking for a not innovative solutions and.

00:05:43: Innovative players in the market it's they have a ton of innovative solutions themselves.

00:05:49: And we've piloted a few of them one was for instance we launched the furniture Taxi.

00:05:55: Where you could just go through the store and you would find our QR codes all over the store and it would say so bought too much or have your car is your car too small or,

00:06:05: your things don't fit into public transport why don't you just order a taxi and you would,

00:06:10: you would simply scan the QR code you would enter our app and then you would actually order a taxi within 15 minutes that would bring you and your goods home that's the furniture taxi instant delivery is it yes.

00:06:24: And what we are what we've launched now and September into stores in Switzerland is the express curbside so basic it's a similar

00:06:32: scenario but this this time for really bulky good so all everything you could imagine shopping at Ikea you could we have a stand in the IKEA store so it's a luckabox branded store and luckabox staff on site

00:06:43: and you would simply hand over your goods and you will give us your two hour time window that you would have it.

00:06:49: And then it see the same day within two hours or two our times lots of the same day or next day who actually I know quite a few other Solutions around this also in Asia there are companies like Google event Lala move,

00:07:03: but do the same thing also with the place in inside the Ikea so maybe one day you're also taking over that part of the world,

00:07:13: hopefully so so what I have sent is that you do basically,

00:07:17: same day Last Mile solution or is it sometimes also scheduled for you know a few days later maybe with a few other customers a few days later,

00:07:27: no we don't that the longest delivery time that we have is 24 hours so if we do not deliver next day plus one.

00:07:36: But simply because simply because that's not really a use case here in Switzerland so usually within 24 hours.

00:07:42: Um items I deliver it how do I how do the big players like DHS was post think about that they don't manage everything same day right.

00:07:52: In Switzerland you when you go to the Swiss post office you can choose between they call it a post and be post and it was arrives next day in the morning and be possible would arrive the day after okay but.

00:08:07: Nobody uses be post and dhrd PD all deliver next day very interesting but then probably a question a few people ask is.

00:08:16: Why do they need to look up box if the postal organizations you know like a similar speed what's the what's the H there is it the size of the items that get delivered like the Ikea to Manhattan.

00:08:28: Queso.

00:08:30: Not supposed to also offers to manhandling Bucky Goods deliveries but what we offer is is a platform is basically a software that helps you orchestrate several different carriers so if you work with the Swiss boss.

00:08:43: You're very limited to the Swissport know you're not very you absolutely limited to the Swiss post offer as soon as you as soon as you're actually,

00:08:50: um as soon as you want to be more modern and more flexible let's say you want to deliver today in certain time windows with post wouldn't off that.

00:08:58: Swiss post does have a Same Day evening but only in certain areas and it's very restricted and very limited as soon as let's say your vision for your last mile is a little more modern and a little more Cutting Edge.

00:09:11: And I'm not trying to diss this Whispers here they know I highly respect them and they're also one of our partners but as soon as you want to have a more varied offer and a more cutting-edge offer than you would turn to

00:09:22: a box and super interesting and I think what you just said is something that I also hear more and more often on the one hand people wanted fast.

00:09:31: But on the other hand they might want it conveniently at the place and the time.

00:09:37: That they can actually choose there was then probably was at the motivations is that also your experience definitely we also see that in our numbers I mean even though like we have a growing number of Quick e-commerce customers now.

00:09:49: But in general when you look at our numbers and and there's this definitely a focus on flexibility more than speed.

00:09:58: And I think in general I mean there were many studies there was one big one from DigiTech Alexis I don't know if you know them it's a big Rattler here in the country they also.

00:10:07: Started in Germany now and that study shows very clearly that the most important thing of a delivery are the most important,

00:10:15: aspect of a delivery is the reliability so if you if you tell me it comes tomorrow and it comes the day after,

00:10:22: I'm not happy if you tell me it comes in two hours and he comes in for I'm really not happy even though it's super fast.

00:10:29: So reliability and the communication and the transparency is what makes and consumers happy poorly I know I absolutely really late,

00:10:38: how do you deal with the fact people schedule it for let's say six to eight in the evening or what I actually the prime time for delivery in your experience yep we have we definitely have a prime time in the evening it when it comes to Quick Commerce,

00:10:50: it's evening on morning and the ad hoc deliveries are all over the day and people can also reschedule if they decided to be somewhere else in the time slot that you wanted to deliver

00:11:00: that's that's actually a feature we're working on since we're very dependent on the carrier's we work with and not every carrier has that capability,

00:11:07: we're not offering it fully automated yet today still have to call the luckabox staff and you will be greeted by a very nice and friendly young man.

00:11:17: Who will help you reschedule but it's not it's not it's not done digitally yet okay Cory I'm so we've got a first inside what's coming next for you.

00:11:26: Yes you also mentioned something that I found interesting so people come to look up books do you actually disclose which off the carrier is then delivering this stuff wouldn't they rather call the Carrier or how do they.

00:11:39: But they have to approach him in general they are retailers approaches when they have either the need to be faster or more flexible in that deliveries.

00:11:49: Or they're struggling with some of their carriers.

00:11:52: And then they usually the way we usually go about it as we analyze the current Last Mile structure and their setup and their processes and then we see how we can improve it

00:12:02: sometimes we just swap one or two carriers sometimes we take over their complete Last Mile sometimes we just help them orchestrate it better.

00:12:11: It really depends on the situation but usually there is there's a pain or a need as a person but for the end consumer then would they get a delivery from luckabox or is it.

00:12:22: The modern version of a carrier delivering to them okay now at now I get your question so and consumers

00:12:28: usually by nature or the core look a book score is a bit to be focused we usually working with retailers and who are then paying our invoices basically it's only Ikea where we have an end consumer relationship,

00:12:41: and yes in the case of the of Ikea the end consumer sees its luckabox.

00:12:49: When they hand over the goods and also when the goods are received but in the other cases it's basically the carrier's other retailers communicating with Amazon,

00:12:57: exactly so you said rescheduling is one of your items on the development roadmap what else is coming next you mentioned expansion to Germany right.

00:13:06: Expansion to Germany is the biggest is the biggest milestone for us definitely.

00:13:11: The next is further development on the on the platform a currently we have a very robust dashboard facing retailers what we where we see a need though is a more refined dashboard towards carriers,

00:13:25: as you probably are very very much aware of carriers have all levels of it maturity some of them,

00:13:32: use emails for the you know for the order transmission some even SMS.

00:13:38: Then others have an Epi or some even have a simple rest API but you have all levels and what we realize now is that we just took our dashboard for retailers and we mirrored it for carriers wearing they received the orders,

00:13:52: they can assign drivers what's coming next year is route planning so they can you know they can create tours.

00:14:00: That's just it's another way of potentially monetizing our.

00:14:05: So that's definitely on the roadmap but then the the main focus will be on the retailer and the.

00:14:11: Facing side queer but that also means I mean we both really believe in transparency I can definitely tell,

00:14:18: but that also means that you sometimes know more about the performance of the carriers then they probably know from their own dashboards is that true actually as a matter of fact we do we sometimes even though it on a driver level.

00:14:30: And for some carriers we even give them performance kpis and data so you manage the performance of the cameras is that not the retailers that go back to them to tell them you should they should do a better job,

00:14:42: it depends on the size of the carrier right if you talking about the Swiss post we cannot we cannot take any responsibility over their Performance Plus I mean they might.

00:14:51: Our feedback but I'm not sure if they you know but some smaller carriers.

00:14:57: Some some smaller carries or something let's say some retailers say okay I bring my own carriers for this in that delivery service,

00:15:04: but for this particular delivery service I would like to use the luckabox managed carriers and then we actually go into a performance monitoring we have weekly performance meetings with them and we agree on goals for the next week in targets for the next,

00:15:18: but that's.

00:15:19: That will stay in each it's something that's very very valuable but it's very people intense currently so it's still done with with a meeting you know.

00:15:28: Logistics competence manager actually meets with the with the.

00:15:32: With the counterpart of the carrier and then discusses the goals that's very valuable for a retailer of course because the region that doesn't have to do it but it's,

00:15:41: the scalability is limited now of course I can imagine it takes a lot of time to sit down and first make them believe in your numbers we know that from own experience.

00:15:52: And then Germany you said so are you following the customers are they asking you to roll out there as well or,

00:15:59: were you approached to have you defined like a city that you want to go to Hawaii or Fortune Kurt currently we're very much following the pool,

00:16:07: and yes some of our customers are active in Germany but for now the focus is on the first client that we're currently launching and we'll take it from there so it's not that we have a city that's,

00:16:19: preferred by us the the more fragmented and the more in transparent a logistics carrier landscape is the better for us.

00:16:28: So of course it's the big,

00:16:30: Metro poles and megacities you know that you have in Germany but you know from a Swiss point of view even stood guard is a megacity so

00:16:38: wait but we have no preference now and I think a lot of people listening might also know this from one experience like onboarding a new carrier whether you're a retailer or service provider,

00:16:49: it's often not that straightforward how do you approach this I'm sure when you come to Germany there will be a lot of new carriers and solutions that your onboarding right,

00:16:59: let some of our Tech Team would say we've seen it all uh huh you know,

00:17:04: but I don't know if we have right but we do have a good understanding of the needs and of the data we need and how to structure it how to set it up since we've done it 65 times yeah,

00:17:16: I'm not saying I'm not saying it's easily replicable because

00:17:21: you know they're all individuals with their own systems and Legacy systems and complex ideas and what have you but yeah I mean that's that's a big part of the roadmap of course integrating those carriers.

00:17:33: What we've never had an issue with those so far was the open and the willingness of carriers work with us.

00:17:41: I mean I know what you're saying yeah we're a small start-up but we wouldn't approach a carrier if we wouldn't have volume behind it you know we wouldn't approach a carrier just for the sake of having a carrier.

00:17:50: We do want to improve their you know we do want to.

00:17:54: Bring valuable business to them and to you know to turn this into a valuable relationship for both parties so we wouldn't just,

00:18:02: go for the sake of it our fingers crossed for the draw any expansion I think you have a great thanks for position man.

00:18:09: Maybe another question that might be interesting is also the topic of sustainability right everyone is talking about that now,

00:18:17: you said you have three different delivery modes as options for deliveries what's your stance is it will it kind of,

00:18:26: come bigger and bigger will people choose different carriers based on the sustainability needs I really hope they will,

00:18:33: it's one of our biggest pillars sustainability we also count the CO2 that we save for,

00:18:39: per delivery our algorithm actually chooses the green two partners preferably and retailers can choose a complete Green Solution if they so like,

00:18:50: and we have Partners where it's not necessarily even more expensive.

00:18:55: So that's that's the so in general the whole luckabox team is of the is convinced that.

00:19:03: The Last Mile the way we experiencing it today with all the convenience you know having everything brought to our home will only be sustainable if it's socially and environmentally sustainable.

00:19:14: Otherwise,

00:19:15: we shouldn't we shouldn't be that lazy anymore and pick it up somewhere right so if we're not willing to pay for a person's time that's actually coming to your to your to your door we should we shouldn't do it anymore so.

00:19:29: That's it's two aspects of want to see environmentally friendly option of course whenever possible,

00:19:34: and the others who work with carriers where you where you where we actually signed contracts and SLS with them frame framework agreements that they pay their drivers.

00:19:43: And as you can imagine working with Ikea there might be audits.

00:19:47: So we cannot do them as well and so nice forcing device also to make sure that they're actually dead.

00:19:55: That means also that you do deliveries to pass a locker so I watch that I try not to have delivery modes that once he softens with a nickname,

00:20:04: no we don't deliver to parcel lockers yet we could I mean the the technology and the network would be up for it when I talk about alternative delivery methods I mean either easily it's electric fleets,

00:20:17: bike fleets Anything Green train.

00:20:21: That definitely gives a good mix I think the other thing that you just said you know which I find quite striking as you said.

00:20:29: It's not always much more expensive necessarily The Greener solution to us can you talk us a little.

00:20:37: Because obviously when everyone speaks about logistics and Last Mile and having different providers a lot of heads of logistics think about the margin and the cost it creates.

00:20:47: What's your experience around this I have a ready to pay more or how can.

00:20:52: Inspire them to use the green a solution and proof it's not necessary more expensive now I would actually say if we look at it from a more Global Perspective it's a societal issue that that people think that.

00:21:05: Don't cost anything it's you know that's thanks to the Amazon Prime's and.

00:21:09: Solano's of this world I mean many retailers have now started to offer I don't know if you have that in Germany but you probably do

00:21:16: do are in Singapore or you know we have at some at some big retailers you have the option to actually check a box and say I want to CO2 neutral.

00:21:26: And that's used very very often but that's a few Rappin in Switzerland and a few cents right in Europe so it's.

00:21:34: It's not it's not very pricey to do this but when we talking about really Green Solutions where you have a bike Courier on the street that's costly.

00:21:43: Well we're talking about we have we have a very big they I'm a big fan of a very young Logistics player here in the country they're called quick pack.

00:21:52: They have the largest e Fleet in the country.

00:21:55: And yeah it's a very close partnership with them they just have a lot of volume and a large Fleet and that's why they can actually be competitive price wise as well.

00:22:06: And.

00:22:07: For me the issue with do retailers actually pay more if you I think you have to you have to make them pay more if they do want to Green then it just probably does cost slightly more.

00:22:20: But it won't break their neck.

00:22:22: But it's so far we have only a handful of retailers that really really really push us to you scream one of them is the big yellow brand but.

00:22:32: Not not many for me it's a little it's a little similar.

00:22:37: Phenomenon to everybody wants on-demand deliveries but nobody is willing to pay for it but I think when it comes to the green the green aspect there is a shift there is a shift because.

00:22:48: Modern companies modern companies are responsible and actually I thinking about their footprint and it becomes you know the more the more.

00:22:58: Choices and consumer has the more likely it is that going to go for the responsible sustainable retailer.

00:23:06: Let's I hope ya know I had a percent agree I think we have to inspire people that these solution exists and then yeah we can deal with.

00:23:17: Any other kind of you know you mentioned sustainability is a key pillar for you at luckabox any other thing that you feel you know it's a logistic.

00:23:27: We need to have an answer for all that you're developing towards are you doing drawings I think the jet know we don't currently.

00:23:37: So far the business case for the unit economics on drones I think wouldn't really work out or I don't think anybody would be willing to pay for it unless it's a it's a replacement heart or lung.

00:23:49: Which you know we had Pilots here in Switzerland from One hospital to the other and I think that's where it makes sense but otherwise,

00:23:57: what I'm very curious about is autonomous vehicles and we have some talks with companies that are offering those.

00:24:07: To maybe you know start at the start of pilot and really start testing this yeah that's something I'm fascinated about.

00:24:15: Because it would solve a lot of issues and I mean it will create others but every new solution does that but yeah so no that's that's the most.

00:24:24: Cutting Edge to that I think we're looking into all right good like we were constantly check and hope to hear from you with the first autonomous delivery that is orchestrated by you maybe even Germany one day.

00:24:38: There maybe hopefully I think before we end I obviously I am I super curious to hear a little bit more about luckabox your.

00:24:47: And also how you ended up having I think purely female-led leadership team is that true that's true.

00:24:56: That's a bit how yeah.

00:24:58: So what exactly do you want to know about that that's just how it happened how did it happen what was the idea how long ago was that how long did it take.

00:25:06: After you had your first delivery on the roads.

00:25:09: So mighty and I met at my former employer at you PC you know the technical operator we she was actually she was an intern.

00:25:20: But we met and she said she's German.

00:25:23: So we met and she said something that the Swiss people might not be really happy to hear but she said something she said the Swiss are not you know the Swiss turn on you.

00:25:32: Maybe you know a few Swiss and you know the Swiss speak a little slow,

00:25:35: and she said this was the only speak slow they deliver slow so that's and at that time she was actually finishing her Bachelor writing about same deliveries so that's how it started out and it was.

00:25:50: The idea was born in June.

00:25:52: 2016 I think and then it took quite a while in 2017 we incorporate it acts it with the first customer who was allowed Nationwide retailer looking for on demand for an on-demand delivery solution.

00:26:07: And it was not that he was very keen on look a box or that you know we had a brand or anything it was more that our Banker told him listen they have two girls.

00:26:16: Offering this and at that time he had just lost his partner if for on-demand deliveries and I think it was forced to turn to us,

00:26:24: but yeah we we didn't complain so that's how it is that's how it started actually and buy that at that time we did sell herself.

00:26:33: An on-demand delivery platform but the algorithm was our brain,

00:26:37: and the interface was our mouth so that's how we started out we faked it until we made it actually after like half a year later we started building the tech how big is your development team.

00:26:50: All I know is the biggest part of the company it's I think it's all in all including the product owners are chief product owners eight people well and overall you something like 15 people glass yes,

00:27:02: we're 15 off for such a small team I think you had good success in the market with all this big Brands working with you yeah it's I don't think it's about the size of the team,

00:27:12: no it's about diligent execution how did you how did you go there you go and on-time delivery of course.

00:27:21: How did you go about funding and you share a little,

00:27:25: about that as well we started raising actually I started we started visiting a lot of startup events it was a completely new scene to me especially so we started.

00:27:38: We started participating in Pitch competitions made sure you know that we maybe get a talk here there or you know,

00:27:46: get get to know as many investors as possible and as much exposure as possible that's actually how we started

00:27:52: and the first round was a 500K seed round proceed round,

00:27:57: which was quite wish took us a lot of in it which took yeah we took a lot of energy with every fundraising does and it was partially friends and partially Angels okay and that's all I'm asking you talk for now or you had a bigger round since then,

00:28:11: I can see you video I had I see that smile as if that would be an easy question.

00:28:19: Do you know we had we had a few smaller ones and we're currently raising a bigger run not the size of your round,

00:28:26: congrats by the way that's a nice series a that you race yeah we're raising a pre-series a yeah all in all after that round we will have raised,

00:28:37: 7.5 million well done congratulations where we all know it's not thanks so if we have investors really not if we have investors the listening.

00:28:47: What's your yes what are you looking for an investor or any anyone on the wish list that we should send our podcasts to afterwards basically every VC,

00:28:58: with a retail or Logistics background will be very interesting to us as our strategic investors will be interesting.

00:29:06: Um ideally german-based.

00:29:10: Ideally large enough to follow on okay and ideally a strong Network in the retail industry and we're looking for one more million.

00:29:19: And we need to close by the end of the year that should definitely be doable but I think one thing you also said is Carrier agnostic is that also true for your investors it's not going to be the next carrier investing in you,

00:29:31: I just had an investor meeting with a very large Swiss carrier this morning and we agreed that.

00:29:37: It is not the best to actually have a large carry invest in us because then we won't be independent anymore,

00:29:44: yeah I can only second that we had a similar approach in have been running quite well with that one so but still fingers cross for the next fundraiser,

00:29:54: I'm sure it's just nice for you are you going to spend more time in Germany going forward or is it your team that's going to be on site now it will it will be me as well perfect well I hope,

00:30:05: we might be able to see your at a few conferences and they are many,

00:30:11: and yeah we would love to hear more stay in touch with you and but for now I want to thank you for joining today congratulation as such.

00:30:21: Last model with great success already in Switzerland I'm very sure it will be the same in Germany so thank you very much for today thanks time thanks hope to see you soon.

00:30:30: Likewise in person absolutely thank you Tim bye-bye,

00:30:36: all right that was the logistics try podcast episode with IQ festini from luckabox I hope you enjoyed Today's Show

00:30:44: if so make sure to subscribe to the podcast so you don't miss any of the future episodes we'll be back next week with more I'm bored felgendreher until next time.

00:30:55: Music.