Why B2C marketplace startups must-do outdoor advertising. [ Case Study]

As the founder of an on-demand delivery marketplace startup, I was struggling to get off the ground, spin up the number of daily orders.

The marketplace makes revenue only after successfully matching the demand side with the supply and completing the transaction.

For the marketplace to be functional as a founder you need to solve the chicken and egg problem and another big problem is solving safety & trust problem.

My startup was 2 side marketplace, like Uber for movers. First we started to onboard local truck owners or how we called- “on-demand delivery helpers”.
After started tossing a lot money on facebook, google ads and very getting a month around 2–3 transactions and were completing only one.

My starup unit economics did not work out

CAC=$75-$120,
Customer spent in average $150 and were earning in average $30.
Average LTV was around $80.

Basically we were spending more than earning.

I was collecting customer feedbacks and tried to learn what was wrong with my marketplace startup, why it is failing.
After 3 month talking and collecting feedback i finally understood why i was so close to fail and shutdown my startup.

I was asking 50 customers those questions and answers:

How did you hear about my on-demand delivery app?
60% told that saw stickers on cars and remember the name & message of the company. 30% told that were searching in google and click on our website. 10% told that saw ads in facebook.

How long did it take you to put an order?
60% told that it took them around 3 days to put an order because they needed to make some duedilegence. 35% told that it took around 20 minutes to put request after talking to support via the phone. 5% told that it took them 10 minutes to put request and because no credit card needed.

What was stopping you from using my app?
90% told that wwere not sure that app is not a…