OKD Services Ltd.

THE MODEL
Our business model and our website were developed to support the local growers and vendors in helping them get their products to the consumer, and businesses alike, their customers. Given the COVID-19 circumstances in early 2020, the pandemic that turned this world upside down, I thought it would be a good idea to help people stay at home and shop, and stay safe.  Cliche: "Let us do the Heavy Lifting" while you look after your family or business!

We provide sales through our website, packaging, and most of our shopping through BC Tree Fruits Market in downtown Kelowna. BC Tree Fruits Market has kindly provided us with access and use of their coolers for storing our orders until delivery. We started with an agreement in principle with BC Tree Fruits Market, which would allow us to sell all of their in-store products online, and through our Website - on a commission-based structure.

We proceeded in putting all their products online and arranged with one of the BC Tree Fruits staff to update the products and prices once a week on our website. When we decided to offer the full-service delivery for groceries we chose to put a time limit for a delivery service of 4-hours and offer 2 different types of services, Same-Day and Next-Day. We then decided on the distance we were willing to go to make a delivery and decided on 19 different centres throughout the Okanagan Valley, in British Columbia. The furthest centre away is a 2.5-hour drive, therefore we allowed for 4 hours on all of our deliveries, which gives us time to reach the destination. We have also introduced curb-side-pickup as well.

HISTORY AND INFORMATION
Founded in  2020, incorporated in 2021; I created OK Delivery as a beta test, for the most part, to see what a little bit of market testing could do, and it was very favorable. However, I don't have the resources I need at this point to capitalize on this incredible opportunity in making something unique within a new niche market for "Support Local by Selling and Buying Local". I currently am a one-man show, where I am doing everything from developing and managing the website, packaging orders, and making the deliveries. I know it can be done more efficiently if I had more drivers and a packager. Therefore, I reached out to another local courier company to talk to them about handling my overflow. We successfully put an agreement in place and they cover OKD for all their same-day and next-day services. OK Delivery makes an average of 26% off our delivery rates that are listed on our site, we do this by using outsourced support. We make approximately 16% of all products sold on the website from BC Tree Fruits Market, plus delivery charges, and given that BC Tree Fruits Market has graciously offered the use of their facility for packaging and storing our orders, this is an awesome opportunity and is an excellent deal for OKD.

This type of arrangement between OKD and BC Tree Fruits Market has opened up some other doors for us, by allowing us to now include more vendors and local producers into our online shop and provide a much broader variety of grocery shopping. I am now reaching out to local vendors and producers to include additional products for us to sell through our website. I recently redeveloped our website and added a vendor directory, so that people, and shoppers alike, can see who they are buying products from. The directory helps expose the vendors to their customers further, by offering a new channel and platform to sell their products on, while their customer orders from home. The fee that will charge for all new vendors is 20% (commission) of the listed sale price on all newly added products. We have also considered packaging membership packages for vendors which would enable them to add more products than the initial

When our service is in full effect with additional vendors, we will have 1-2 drivers (OKD Driver) picking up products from the local vendors that have sold products through our website. The vendors are notified by the website when a sale has occurred, and they will have the order ready for pick up within the hour and brought back to BC Tree Fruits for further packaging and possible storage before delivery. Payouts for the vendor's products are every 15 days due to the eCommerce solution in place, which is a 7 business day wait for settlement - this will change in our favor once we have reached a certain threshold.

Preliminary results of my testing are telling me to not spread myself too thin, but there is a huge opportunity here to grow quickly at the same time. Therefore, I am raising some money beyond what I have already invested so far, to do it right and be prepared. COVID-19 is not going anywhere fast! Other companies allow people to buy their groceries online today too, but they are buying from the bigger grocery and department stores, most of which are not selling local products or supporting local vendors, not to mention the unrealistic delivery times they are trying to guarantee. We sell Local, We Buy Local, and there are only a few items that are imported amongst our vendors, so therefore we have adopted the pre-coined phrase "Support Local" and created our own which is "OK Delivery is your connection to buying Local".

I have been in the courier and transport business off/on for more than 25 years, considered a serial entrepreneur, I owned my own courier company as well, sold it, and was hired by the purchaser to help turn their company around, and integrate my clients. When my contract was up with them, they continued on their path in selling their company to a larger transport company. I have the experience necessary to bring this company to new levels.

THE OPPORTUNITY
After speaking to many people about what I am doing, it sprung an interesting twist to the business model, which would allow us to license other regions to do the same thing within their own areas, outside of our service areas. At the same time, here in BC, we could be opening up additional regions every year by expanding our own reach, but with that being said, it would not mean extending our current delivery routes, but rather creating additional centres,  or communities, that support 10-15 destinations and still be self-sufficient.

There is also a huge opportunity to deliver a great return on investment, not only from the services and Local niche market we have and will acquire but from being approached for a buyout and/or merger down the road. I have offered a way for customers to receive FREE delivery to any one of the centres we deliver to, as long as they place a minimum order, which varies with each location.

REQUEST FOR FUNDING (Requirement and Use of Funds)

OK Delivery should have its own drivers and hired packagers that work out of the central packaging facility, while we will continue to use driver/owners under contract to OKD, and other courier companies alike. This will reduce our overall corporate and payroll taxes, and no property lease to speak of (unless necessary). We can use this same model in other expanded areas that we deem ready and a good fit for the business to expand.