Startup stories interview: Mike Peregudov, Co-founder and CEO at last mile delivery specialist Whizz
RTIH gets the lowdown on Whizz, an e-bike subscription platform for last mile delivery drivers that recently raised $3.4 million from Joint Journey, TMT Investments and a group of angel investors in a seed round of funding.
RTIH: Tell us about yourself and Whizz.
MP: I’m Mike Peregudov, Co-founder and CEO of Whizz, an e-bike subscription platform for last mile delivery drivers.
I’m a serial entrepreneur with over five years of experience in the last mile delivery industry, having co-founded a meal kit delivery company in the same space, which was acquired in 2018.
This venture provided me with a deep understanding of the market and its challenges, enabling me to create Whizz — launched with the aim of providing an affordable and efficient transport solution for the last mile delivery sector that benefits both drivers and the businesses they serve.
We offer purpose built e-bikes with eight-hour battery life, GPS trackers, and built-in anti-theft systems, as well as on-demand maintenance and repairs. All for a monthly fee that’s 20% cheaper than competing services.
RTIH: What was the inspiration behind setting the company up?
MP: Before founding Whizz, I worked in the delivery service industry for several years, where I saw the need for sustainable and cost-effective last mile delivery solutions. Whizz was born out of this need.
Not only do we offer one of the most sustainable forms of transport, easing the environmental cost of urban logistics, but we’re addressing the significant challenges faced by last mile delivery drivers, who often struggle with the high cost of owning or renting an e-bike.
We wanted to provide an affordable and efficient alternative that allows these drivers to operate more sustainably while improving their overall earnings. In other words, our goal is to offer a superior rental service for last mile delivery drivers that is more cost-effective and reliable than any available alternatives.
RTIH: What has been the industry reaction thus far?
MP: The reaction has been incredibly positive, and we’ve seen significant interest from both investors and customers. Our clients appreciate the affordability and reliability of our service, as our numbers prove.
Whizz is maintaining sustainable 20% month-over-month growth, $2 million in annual recurring revenue, and has delivery drivers from Uber Eats, DoorDash, and Grubhub using our e-bikes for work on a daily basis.
We’ve also received positive feedback from investors who see the potential of our business model and appreciate our focus on maximising operational efficiency while we’re constantly receiving inquiries from potential partners and clients.
All in all, there are plenty of positive signs that we’re on the right track.
RTIH: What has been your biggest challenge/setback?
MP: The greatest challenge has been scaling the business rapidly while maintaining the high level of service that our customers have come to expect.
We’re constantly working to improve our service and meet the growing demand, and have invested heavily in our Whizz Automation Platform to automate key processes and reduce operational costs.
Thanks to our proprietary solution, we can offer affordable subscriptions and maintain our market-leading prices. However, as we expand to new locations and add new services, we must ensure that we continue to deliver a high-quality experience.
RTIH: What are the biggest challenges facing the omnichannel retail sector right now?
MP: Providing a seamless and consistent customer experience across all channels, including online and offline, is a must.
This requires a high degree of coordination and integration across different systems and teams, as well as investment in technology and infrastructure to support an omnichannel approach.
Additionally, to remain competitive, retailers need to be flexible and provide fast and reliable delivery options. Likewise, they must also adapt to changing customer expectations, such as the growing demand for sustainable and eco-friendly delivery options, including same-day delivery.
RTIH: What’s the best question about your company or the market asked of you recently by a.) an investor and b.) a customer?
MP: Business is all about beating your competition and inventors are deeply interested in that. We’re often asked how we plan to maintain our competitive edge in the e-bike rental market as the industry becomes more crowded.
That’s another place where our unique Whizz Automation Platform comes into play, allowing us to offer subscriptions at a price point 20% cheaper than competing services. We believe this will continue to be a key differentiator as we expand to other cities.
But before turning elsewhere, we’re firmly focused on establishing our position at the top of the e-bike rental market in New York, as we feel quality over quantity is the best course of action.
One of our customers’ most frequently asked questions — which I love — is whether they can buy our e-bikes outright, as they feel our vehicles are convenient, move fast and offer a smooth ride.
Finally, we’re thrilled to answer: Yes, you can now not only rent but also buy our e-bikes. Those that choose to purchase can still subscribe to receive maintenance and repairs, while they can also get a U-lock, backpack, and basket free of charge.
RTIH: What can we expect to see from Whizz during 2023?
MP: Whizz will continue to grow and expand.
Our top priority is to open new locations in New York with lounge zones, bike maintenance and repair stations, and overnight storage facilities to provide our customers with expectational service.
As soon as we’ve established leadership in New York, we will scale to the ten largest US cities in 2024. Eventually, we intend to serve delivery drivers throughout the United States, so stay tuned.
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