SaaS Interviews with CEOs, Startups, Founders 657: Is OnFleet New King of Delivery Economy with 300 Customers Paying $500/mo?
May 12, 2017
24:45
Khaled Naim. He's the CEO and co-founder of the company called Onfleet, a software company that makes it easy for businesses to manage local delivery operations. He holds an MBA from Stanford's Graduate School of Business and studied computer engineering at The University of Michigan. He grew up between London and Dubai. He's currently residing in San Francisco.
Famous Five:
- Favorite Book? – Venture Deals
- What CEO do you follow? – Elon Musk
- Favorite online tool? — Gusto
- How many hours of sleep do you get? — 7-8
- If you could let your 20-year old self, know one thing, what would it be? – Khaled would tell himself to do something that he's really passionate about
Time Stamped Show Notes:
- 01:14 – Nathan introduces Khaled to the show
- 01:47 – Onfleet is a B2B software product that helps delivery companies manage and analyze their local delivery operations
- 02:18 – Onfleet provides apps for drivers, dispatching dashboards for the dispatchers, analytics and write-up optimizations and algorithms
- 02:29 – Onfleet charges monthly depending on the delivery volume
- 02:35 – The larger the business, the more deliveries they do
- 02:42 – Onfleet is a SaaS business
- 03:30 – Blue Apron is different because they don't deliver locally, but ship using FedEx
- 03:42 – Onfleet's focus is on companies who deliver their goods locally
- 04:16 – Onfleet was launched in April 2015
- 04:46 – Team size is 15 and all are in San Francisco
- 04:40 – Onfleet has raised $4.5M in total funding, so far
- 04:55 – If you can bootstrap, it is a good option
- 05:13 – There are factors that lead to the decision to raise funds
- 05:18 – If you're not generating enough money to support the team, then raising capital is a good option
- 05:45 – It was 30 years ago when Khaled launched Onfleet
- 05:51 – Khaled, together with his co-founder, started Onfleet while he was still at Stanford—this is also where they met their CTO
- 06:28 – Khaled, with his co-founders, attended Stanford's Accelerator Program in 2012
- 07:17 – Onfleet raised a convertible note round and an equity round
- 07:38 – Onfleet offers a 30-day free trial for new customers
- 07:48 – After 30 days, they need to enter their credit card information
- 07:55 – Onfleet's pricing is very transparent and can be easily calculated on their website
- 08:30 – The telephone services are the call and text messages that run through Onfleet
- 08:38 – The customer receives notifications automatically regarding the driver's status
- 09:16 – The cost varies primarily on the market
- 09:53 – Onfleet is currently serving 300 customers
- 10:10 – Onfleet's pricing page is really nice and easy to navigate
- 10:34 – Onfleet's average customer is between the standard and premium tier
- 11:06 – Some of the customers are paying the north of 10K a month
- 11:13 – Average customer pay per month is $400-500 a month
- 11:56 – Onfleet doesn't track the number of tasks during the free trial
- 12:38 – Onfleet helps businesses to scale their business
- 13:10 – Onfleet's net MRR churn is more negative than negative 5%
- 14:10 – Everything in Onfleet is pay-per-use or pay-as-you-go
- 14:40 – There are customers who start using Onfleet, then leave
- 15:27 – Onfleet doesn't have much customer churn
- 16:05 – CAC is around $1500 per customer
- 17:08 – LTV is around 18 months
- 17:37 – Onfleet's customers are categorized
- 17:47 – Onfleet is slowly moving to more larger accounts
- 19:20 – The Famous Five
3 Key Points:
- You can start a business without a capital – just find a way to it.
- If you're not generating enough money to support the team, then raising capital is a good option.
- No matter what, follow your passion and you'll be alright.
Resources Mentioned:
- The Top Inbox – The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences
- Organifi – The juice was Nathan's life saver during his trip in Southeast Asia
- Klipfolio – Track your business performance across all departments for FREE
- Acuity Scheduling – Nathan uses Acuity to schedule his podcast interviews and appointments
- Host Gator– The site Nathan uses to buy his domain names and hosting for the cheapest price possible
- Audible– Nathan uses Audible when he's driving from Austin to San Antonio (1.5-hour drive) to listen to audio books
- Freshbooks – Nathan doesn't waste time so he uses Freshbooks to send out invoices and collect his money. Get your free month NOW
Show Notes provided by Mallard Creatives