Luna for iOS

On-demand evening package delivery in SF

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#5 Product of the DayMarch 11, 2014
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Zack Shapiro
Zack ShapiroMaker@zackshapiro · Director of Engineering at BUMP (YC W18)
@rrhoover Thanks for doing this AMA. We think a lot about the economics and to best make money with the business. Margins are really healthy with the number of deliveries that we're doing per hour right now. Deliveries are commonly thought to be a scale game but they don't necessarily have to be. UPS and FedEx make their margins primarily on the heavy items, I think there's a similar approach here as well. As for expansion, we're looking at a few other markets right now but mainly focused on growing San Francisco. Each market will pose its own challenges with its infrastructure. New York will be particularly fun when we get out there. We do a lot of testing around user acquisition. Figuring out the channels that work well and are ROI positive is a fun challenge. Word of mouth is really huge for us, so how can we get you to try Luna and tell your friends about it? How can we be top of mind next time someone complains about that missed delivery slip?
Zack Shapiro
Zack ShapiroMaker@zackshapiro · Director of Engineering at BUMP (YC W18)
Everyone has dealt with the hassle of missing the UPS or FedEx guy and seeing that dreaded little missed delivery slip hanging from your door. Shipping to work and lugging packages home from there isn't any better since packages seem to sit by your desk for days or weeks at a time. That's why we built Luna. Excited to feature our iOS app here today and answer any questions you guys have.
Ryan HooverPro@rrhoover · Founder, Product Hunt
Heya, @ZackShapiro! I've heard a lot of good buzz in SF about Luna, particularly from VC's. :) My biggest skepticism is in the economic viability. It only costs $6.99 to deliver one or more packages so I imagine margins are very small and may only be viable with mass volume. What's your strategy for acquiring users and at what point do you expand beyond SF? For those interested, here's the first Luna post announcing their web launch:
Will Lam
Will LamPro@will_lam · PM & Marketer
@zackshapiro first off, awesome stuff on shipping Luna! I'm a fan of taking the friction out of package delivery. I have two questions actually.: You mentioned this idea had stuck with you for a while - how long did it take to build the MVP to the point where you started charging for the usage of Luna? Second question: Despite being shuttered and folded into Google shopping, do you se "Bufferbox-style" companies as competitors? How are you raising awareness and educating potential customers that paying for a solution like Luna is the way to go?
Zack Shapiro
Zack ShapiroMaker@zackshapiro · Director of Engineering at BUMP (YC W18)
Thanks @will_lam! The first prototype for Luna was a big red button that said "I'm home." It was a Twilio app that would text me that you were home and text you confirmation that I got the text that you were home. It all started with about 20 friends on a spreadsheet and them sending things to my apartment building. From actual intention to build Luna to prototype was just a few days, then I just had to wait for a few packages to show up at my building (my lobby was the first receiving center). Being scrappy is part of the fun. Locker solutions I see as a half-measure to solve this problem. It's still an errand you have to run. The place that houses the locker still has to be open when you're done your day. That's fine if it's in a 7-11 but worse if it's in a coffee shop that closes at 7 or 8. What's really important to us is helping you to spend more time doing the things that matter most to you and not organizing your day around the contents of a cardboard box. We summed it up nicely on our Purpose page ( Missing packages or figuring out how to get them home from work is a very acute pain. Everyone has gotten a missed delivery slip and going to the UPS facility is never high on your list. We've got a pretty great solution to this problem that the major carriers don't seem to care about, albeit I'm a bit biased, people love Luna once they give it a try. Thanks for the question!