Q&A with Yousif Touza of Flype
Co-founder & CEO
An award-winning project that has received the Top Idea award at Sweden’s largest startup competition, and partnered with industry experts such as John McAfee. Flype is a platform that enables retailers to ship parcels internationally with daily travelers, offering their customers a premium same-next day international delivery service that is personal, with real time tracking at a competitive price. Flype is already signing up clients, where they’ve captured the interest of recognized European retailers, guaranteeing initial volumes of over 1000 parcels/day.
With e-commerce exploding, retailers are constantly seeking new modern alternatives within international delivery that can provide a faster, flexible and fully digitalized delivery service. Retailers and e-commerce sites are investing billions of dollars in R&D just to find a solution that can reduce their delivery time by merely 1 day. By enabling retailers to tap into the pool of travelers, Flype will apply a sharing economy model that will offer an unprecedented same-next day international delivery. sharing economy platforms have disrupted many industries. AirBnb, Uber and eBay are just a few of many examples. It’s an industry that has grown from $14Bn in 2014 to an expected $335Bn in 2020. However, no company has yet been able to introduce a resource sharing alternative to the age-old international delivery industry, until this day. Flype website
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Why are retailers interested in adding Flype as a shipping alternative?
"The international delivery industry is controlled by a few actors, forming monopolies that offer basic service of low quality that is inflexible. Many customers complain about delayed deliveries, untrackable parcels and having to wait at home many hours for DHL to knock the door at any time. Therefore, retailers and e-commerce sites are constantly looking for innovative solutions that can offer something of a higher quality, and giants such as Amazon are investing billions of dollars to reduce the shipping time by just 1 day.
Flype is the first company in the world that is able to offer same-next day international delivery that is flexible, with the highest standards of precision at a competitive price. On top of that, Flype introduces an unprecedented real-time tracking of every single parcel sent with our travelers, as well as an insurance system that offers immediate compensation for all deliveries in case of loss/damage. As a result, many retailers with large shipping volumes have been expressing great interest in adding Flype as a shipping alternative, and are willing to help make Flype a success in any way they can."
How will you reach the critical mass of travelers?
Our main traveler target group are Millennials - young adults and students. Last year, over 500 million trips were made by millennials in the US and EU alone. It's the generation of sharing economy that prefers to spend money on travel and experiences rather than owning things. We will reach our target group and build a critical mass using the following 3 methods: 1. Influencer based marketing strategy: Millennials are mostly influenced by the influencers they follow on social media platforms. Flype will initiate a marketing strategy heavily focused on influencer marketing, where we'll collaborate with travel influencers to create content showcasing the advantages of delivering with Flype (Flype is already in touch with a number of these influencers). 72% of the influencer’s followers are millennials. 67% of them travel 4 times/year on average. In 2018, Flype conducted a market test where we delivered packages from Stockholm to 27 cities around the world with traveling students, where we had a 66% conversion rate (percentage of traveling students who delivered parcels). 2. Leveraging on retailer’s customer ledger: The retailers who'll add Flype as a shipping alternative will send emails to their entire customer ledger, introducing Flype as a shipping alternative and encouraging them to deliver parcels with Flype. 3. Collaborating with booking & travel sites (such as skyscanner): When searching for a flight/hotel stay, Flype will be introduced as a way to cut down the travel cost, showcasing the significant reduction in price just by delivering a few parcels. This will give Flype direct access to the millions of people traveling, while benefiting travel sites and airlines immensely. 59% of people surveyed in 2018 said they'd travel more if they're able to afford it.
What is your business model?
Flype has two main sources of income: 1. A 15% cut out of the travelers revenue 2. Income generated from our P2P insurance system 3. Future expansion within tourism leveraging on the immense number of data collected from millions of travelers daily. We estimate to reach 5% of our serviceable available market by 2023, which is 25 million trips by millennials with Flype, generating $225M in revenue (detailed calculations available).
Yousif Touza of Flype
Yousif Touza is an experienced businessman with background within entrepreneurship and business development. Previous experience working within the construction industry, computer hardware design and sharing economy services. Driven by curiosity and his thirst for knowledge, he graduated from Stockholms University in Business Administration, while also studying media technology, computer science and journalism. Contact Yousif