Jiaye Chen for Sumer

This update details our traction over the period stated above.

One-liner: 15-minute grocery delivery service in Canada.

• Saw predicted customer behavior of ordering more often (from 0.5 to 1.7 orders/week)
• Increase in demand from 6.3 to 6.5 orders per day¹ on average.
• Our mobile application was launched to the public on October 18th, 2021. Here is a link to download it.
• Configuring the mobile application and website with products and functionality for expansion to downtown was executed successfully.

1. Source: October Sales Over Time Analysis

October 1st, 2021 to October 31st, 2021 as compared to September 1st, 2021 to September 30th, 2021:

• Sales: $6,863.52, a 14% increase¹
• Orders: 201, a 6% increase¹
• Average grocery basket size: $42.66, a 15% increase
• Customer Retention Rate: 45%, a 257% increase
• Customer Acquisition Cost (CAC): $34.57 ²⁻⁷
• Customer Lifetime Value (CLTV): $10,452.41 ²⁻⁷

1. Source: October Sales Over Time Analysis
2. Page 7: CAC/CLTV Calculation

• Operations: in downtown, Toronto, we're delivering orders in 17 minutes. We would like to reduce this to a maximum of 15 minutes, even in worst-case scenarios.
• Fundraising: we're looking to connect with investors. We're unable to acquire customers, expand, and hire talent at the rate we would like to due to a lack of funds.
• Team: we're looking to hire an in-house tech team to be able to continuously iterate our mobile application per the needs of our customers.
• Marketing/Growth: in downtown, Toronto, we would like to establish ourselves quickly and efficiently but are having some trouble finding the correct distribution channel to do so.
• Technology: our mobile application is ready for downtown but not ready for Scarborough.

• Operations: fulfillment time of 17 minutes was achieved through a manual bike. We've invested in an electric scooter and this should reduce fulfillment time significantly. We've also sliced up the 15 minutes we have to fulfill an order into 12 segments. Using operational and technological innovation, we're further brainstorming ways to reduce fulfillment time to below 17 minutes.
• Fundraising: we're working towards making Sumer investor-ready and consistently increasing demand to prove ourselves in this industry.
• Team: with Eric Li as our first in-house developer, we hope to expand the tech team further with him as a tech lead.
• Marketing: go-to-Market strategy - deeply penetrating the area we're currently operating in:
  1. Partnerships with Universities: we've partnered with 3 university residences in Scarborough which helped us acquire our first 1,000 customers. This has been an excellent starting point for initial traction. We plan to approach the market in downtown in a similar way by partnering with universities located in downtown.
  2. Online marketing: this month, we created highly targeted social media campaigns concentrated in the area we're serving and email marketing campaigns. The conversion rates on these were 2.3% and 32.9%, respectively.
  3. Offline marketing: we set up a stall in downtown in which we gave away free products in return for app downloads. The conversion rate was over 34%!
  4. Referrals through customers: organic growth through referrals has begun because this function is now available on the mobile application.
• Tech strategy:
  • On November 10th, our MVP will be converted to a landing page with links to download our application for downtown users. However, until then, the website will also be available to order from for consumers in Scarborough.

• Operations: we would highly appreciate any insight you may have on reducing delivery time. Moreover, if you would like to join our brainstorming session on how to reduce delivery time, you're more than welcome to!
• Fundraising:
  • To be able to expand to 2 more population-dense areas in the Greater Toronto Area, it will cost $1,000,000 in total. This will result in an additional 100,000 customers.
  • We would love to speak to you further if you're interested in joining the round.
  • We would highly appreciate an introduction to someone who is interested in this space.
• Team: introductions to star developers who would be willing to join a tech/logistics startup in its pre-seed stage.