Project by: Nicholas Garces
High Concept Statement:
Airpool pools space in the air! Airpool is a peer-to-peer platform that monetizes a traveler’s unused baggage space to people internationally wanting new merchandise, products or paper mail urgently, safely, and affordably. In theory, this platform will meet the international demand that people have for goods of foreign regions. Whether the package is full of signed contracts or duty-free merchandise, people will satisfy their shipping needs in under 24-48 hours at a fair price point. On the other side of the market Airpool will allow a traveler to monetize their unused baggage space to offset a significant % of their airfare. Airpool will create a new international market using consistent commercial flight networks while filling the consistent demand of requesters in the most transparent, harmonious, and efficient operation in logistics.
Need or Demand:
Faster international logistic solutions are in high demand. People in Latin America for instance have many connections to the United States. Latin America consumers have always demanded for U.S. merchandise whether it is a necessary or high quality product that their homeland does not sell. However, due to high costs and long delivery periods they resist or just wait for relatives to fill their demands as they travel back home. I believe that in this case Airpool can completely open the U.S. market for countries to get what they need quickly at a reasonable price and vise versa. This being a two-sided market, the traveler will also allow such transaction as long as Airpool monitors and mitigates any risk while providing attractive price points for both users. Due to high flight costs, a traveler can meet the demand of other end users to offset a significant percentage of their flight costs. Calibrating the perfect incentive model will make growth very feasible.
Product / Service / Solution:
This new idea relies a great deal on trust. Creating a seamless platform that shows transparency and tracking will make future exchanges very safe for users. The application will have to be very simple that any person can understand the user interface despite their regional exposure to new technology. Also, there will have to be security measures in order to build trust for people to pay each other at the traveler’s destination. Also, a communication interface has to be created but something that connects to Whatsapp will also work since most people use it internationally.
Airpool will be a two-sided market that will democratize global shipping solutions. It will be a platform built for people by people. The traveler will monetize from their unused baggage space as they sell the space to people at his or her final destination looking for urgent, affordable, and seamless shipping solutions. The app will connect and bring tremendous value to both users by linking each other at their exchange point. The incentives on both sides will be well-balanced to meet supply and demand in a specific region at first. Airpool will allow a person to get an item in their hands in under 24-48 hours. Knowing that your package is a flight away brings tremendous value for consumers abroad. Even in most cases, the package value plus the fee may be cheaper than buying a subpar alternative in their home country.
Airpool’s primary competition are your typical logistic services like UPS and FedEx. However, regardless if you pay high shipping rates you will not get a product urgently because of the additional middlemen that make their route network very inefficient abroad. Such inefficiencies will add extra days or weeks to get a package to the customer. With Airpool, it will initially create small networks in densely populated areas surrounding airports in Latin American cities that have high demand for American packages. Airpool’s key strategy is to focus and perfect operations in high demanding LatAm regions. Focusing on specific items like documentation, duty-free items, and some new merchandise monitored by Airpool will be the way right trigger to create a brand and sustainability in such a new market. There is no exclusive service for this in Latin America, so the market is open regardless of competitors and alternatives.
A growth in revenue will be triggered by Airpool’s strategy to scale and successfully incentivize travelers to carry more than one package to their destination. Airpool’s average fee will be finalized once extensive customer discover on international travelers is performed based on their surrounding regions. The pricing model will be derived by the estimated value of the package along with the cost of airfare. Both parties must agree in pricing for Airpool to finalize their service fee at the exchange point. In Airpool’s model, a percentage of the overall exchange fee paid to the traveler will be for Airpool. At the early stage of Airpool, it will focus on growth. In later stages, there will be other revenue streams that can range from Airpool selling curated goods to becoming a travel assistant for travelers to enjoy the platform all throughout their trip. Successfully executing networks in selected LatAm countries will create value for Airpool’s potential to add on new services for both parties’ needs.