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Revolutionising the way in which parcels are delivered

Periodic Reporting for period 1 - Citibox (Revolutionising the way in which parcels are delivered)

Reporting period: 2019-10-01 to 2020-09-30

Last mile delivery is extremely inefficient representing 53% of the total transportation costs. Over 80% of eShoppers report delays, incidents or delivery failures, which have a strong negative impact on all stakeholders involved. Carriers incur higher costs due to multiple delivery attempts, which in turn have a strong impact on the liveability of cosmopolitan cities, increasing traffic congestion and levels of harmful emissions. Online shoppers on the other hand are unhappy with delayed packages or having to pick up their packages from different locations, and this negative shopping experience has an adverse effect on online retailers as online shoppers are unable to realise the full potential of the convenience that online shopping brings.
Citibox is revolutionising the way parcels are being delivered. Our cost efficient technology allows us to install a dense network of smart parcel boxes inside residential buildings across major cities. Providing carriers with a simple and radically more efficient delivery method inside residential buildings means users are able to get their packages on time without the need to be home or the hassle of having to pick up missed parcels from alternate locations. They simply pick up their parcel from the Citibox parcel box in the lobby of their building at their convenience.
This report covers the work performed in each of the five Work Packages during year 1 of the 2 year project. In Work Package 1 we set up our project team in the most effective way to deliver the project. Our technical teams implemented a cross-functional squad structure which allows them to effectively tackle tasks in a very efficient manner. Our international expansion team teamed up in a strong partnership with Deloitte for direct access to key decision makers to speed up the closing of local partnerships for an accelerated growth of our international footprint. Finally, a dedicated project manager was responsible for coordinating our cross-functional teams and continuously measuring progress as we deliver towards a successful project outcome.

In Work Package 2 we upgraded our core platform, improving existing systems and successfully integrating new tools such as a CRM system and Marketing Automation Tool that allow us to scale. Another important part was the development of a Public API that can easily enable integrations by our clients as we scale into new markets. This included our Carrier API, the real-time events system, the Sandbox environment for testing the integration and producing the documentation that accompanies all of the above. Finally this Work Package also included the important security improvements, ensuring the robustness and security of our databases.

The preparation of the pilots for our international expansion is covered in Work Package 3. In Paris we have prepared all of our systems and applications, reached agreements with the target buildings and performed the installation of citibox parcel boxes for the go-live of the first pilot in November. In other markets we are in advanced discussions thanks to the access to key decision makers through our partnership with the professional services firm Deloitte.

Work Package 4 is about providing overall support to the project activities in every aspect that can impact the commercialization and exploitation of the project result. In Period 1 this involved:
Communication to key stakeholders: Exhibiting and pitching at events, Press publications, Social Media posts
Obtaining commercial stakeholder agreements: Advanced discussions with key stakeholders, in part together with our partners Deloitte, using their vast international network.
Go-to-market strategy and introduction plan: Based on our market analysis the go-to-market strategy has evolved and we have extended the reach to additional markets with desired characteristics or markets which present a particularly favourable opportunity. The introduction plans will be adapted for each market based on the outcomes of the negotiations.
Securing financial support for international market replication: We are in continued negotiations with a handful of investors, where 10 have indicated strong interest and one has presented us with a term sheet.
Citibox is the only solution that makes it economically and technically feasible to install smart parcel boxes in every residential building to help solve the last-mile problem. The SME Instrument is permitting us to radically accelerate the scalability of our technology, both the electronic lock as well as the IT backend infrastructure, to allow massive market expansion across Europe. It will also allow us to perform 3 demonstrative pilots in major European cities to test the upscaled product and gain important international traction to attract additional investments to launch the infrastructure development in these cities.