{"id":5553,"date":"2015-12-09T21:59:13","date_gmt":"2015-12-10T02:59:13","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/hello-alfred-your-new-best-friend-when-life-is-a-clutter\/"},"modified":"2015-12-09T21:59:13","modified_gmt":"2015-12-10T02:59:13","slug":"hello-alfred-your-new-best-friend-when-life-is-a-clutter","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/hello-alfred-your-new-best-friend-when-life-is-a-clutter\/","title":{"rendered":"Hello Alfred: Your new best friend when life is a clutter"},"content":{"rendered":"

\"hello-alfred\"<\/a>Ever wish you had your own butler who would pick up your groceries, reschedule your appointments and track down an Amazon package? A 性视界 Business School startup Hello Alfred does exactly that. In the growing on-demand service economy, Alfred offers users a one-stop mobile solution to set up weekly chores or instantaneous task requests that is then delivered by your friendly neighbor acting as your personal butler. Within a year of launch, Alfred has made \u201c18,000 runs for its customers, including dry cleaning 57,600 shirts, delivering 3,326 pounds of dog food and placing 1,280 flower arrangements\u201d in Boston and New York. (1) (2)<\/sup><\/p>\n

Alfred\u2019s Promise to Customers<\/strong><\/p>\n

Alfred\u2019s business and operating model supports a simple but powerful customer value proposition: with our lifestyles becoming ever more hectic, it promises a personalized service to seamlessly fulfill your \u201cbasic\u201d needs. A two-tier subscription model offers a $32 per week \u201cbasic\u201d and a $59 per week \u201cservice\u201d options that allow users to setup weekly chores. These chores are then run once or twice a week by carefully vetted community members, freeing up valuable post-work and leisure time for users.<\/p>\n

\"app\"<\/a>Unlike other on-demand companies, Alfred aggregates existing single-task solutions such as Handy, Shyp and Instacart, and creates value for its users through a simplified one-stop mobile solution. A select set of chores including laundry, groceries, basic repairs, cleaning and mail drop off allow users to pick from a simple menu list and butlers to anticipate the range of tasks at hand. The platform in turn captures a portion of the value generated from time-savings and ease-of-use through its subscription pricing model. The flat fee structure generates upfront payments from customers which the startup then invests in its butlers and supporting technology.<\/p>\n

How Alfred aligns its business and operational models<\/strong><\/p>\n

Automated on-demand technology<\/em><\/p>\n

Alfred operates a simple mobile application for users to enter the type of tasks with few clicks. For instantaneous requests, users can also send a text directly to the butler. In both instances, a seamless technology allows users to communicate requests and butlers to coordinate pick-up\/drop-offs without any physical interaction after a first in-person \u201cconsultation\u201d.<\/p>\n

The app stores previous orders from users, allowing butlers to forecast demand and plan daily runs and users to repeat requests using a single click and no incremental payments each time. This operational technology facilitates Alfred\u2019s promise of freeing time for end users.<\/p>\n

\"11204019_1672657362952691_913557139825311065_n\"<\/a>Community members as full-time employees<\/em><\/p>\n

Alfred\u2019s operations rely on hiring members from the local community as full time employees and have included stay-at-home parents and recent retirees. In contrast to Uber and Lyft which hires freelancers as part-time contractors, Alfred\u2019s service personnel are on W-2 contracts with full-time time pay and benefits.3<\/sup> While it imposes 20% higher salary expenses, this operational choice aligns Alfred with its community-centric business model where butlers are well-incentivized to provide quality service. 3<\/sup><\/p>\n

Culture of trust<\/em><\/p>\n

Trust is a core component of Alfred\u2019s business model. To provide these services, Alfred identifies, rigorously screens through background checks and interviews (for three hours) locals in neighborhood communities. Only 3% of applicants are accepted. 4 <\/sup>This focus on trust generates a competitive advantage for Alfred as it pairs the same butler every week with an user and allow for a personal trustworthy relationship to build up. Users are comfortable in letting strangers access their homes knowing butlers are vetted employees and butlers have a sense of ownership in working for their neighbors.<\/p>\n

\"10460415_1564602993758129_7234359720524041503_n\"<\/a>Iterative learning process<\/em><\/p>\n

Alfred combines online and offline engagement to better understand users\u2019 weekly needs. Users can avail a \u201cset it and forget it\u201d option on their apps and rely on Alfred to customize their delivery needs. 5<\/sup> The longer a user stays on the system, Alfred\u2019s proprietary app analyzes history of previous orders while the same butler learns individual preferences (e.g. amount of starch for dry cleaning or type of coffee). 6<\/sup><\/p>\n

What\u2019s Next?<\/strong><\/p>\n

Having raised over $10.5m in series A funding, the platform is looking to expand to LA and San Francisco. 2 <\/sup>However, it is still unclear whether Alfred is a real winner. Its business model faces operational risk in scaling the supply side, specifically in finding numerous trustworthy butlers in new neighborhoods and cities. Higher expenses associated with a full-time employee model also requires Alfred to grow to a large critical base of subscribers before it can turn profitable.<\/p>\n

In the meantime, users seem to be in the good hands of Alfred:<\/p>\n

\"10420292_1649394028612358_4461598193006623343_n\"<\/a><\/p>\n

[1] Company Website: https:\/\/www.helloalfred.com\/<\/a><\/p>\n

[2] TechCrunch http:\/\/techcrunch.com\/2015\/04\/14\/alfred-series-a\/<\/a><\/p>\n

[3] Wall Street Journal http:\/\/www.wsj.com\/articles\/startups-scramble-to-define-employee-1438228860<\/a><\/p>\n

[4] CBS News http:\/\/www.cbsnews.com\/news\/hello-alfred-butler-app-runs-errands-americans-increasingly-busy-lives\/<\/a><\/p>\n

[5] The Street http:\/\/www.thestreet.com\/video\/13264403\/hello-alfred-offers-overworked-americans-personal-butlers.html<\/a><\/p>\n

[6] Business Insider http:\/\/www.businessinsider.com\/alfred-founders-explain-why-they-created-a-startup-to-do-your-chores-2015-6<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Presenting an e-platform of dedicated butlers to take care of your chores. 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