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…