SaaS Interviews with CEOs, Startups, Founders

657: Is OnFleet New King of Delivery Economy with 300 Customers Paying $500/mo?

12 May 2017

Audio

Description

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

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