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    Delivering the Goods at Shippo

    Bussgang, Jeffrey J. ; Rayport, Jeffrey ; Hull, Olivia

    • Reference: HBS-817065-E

    • Year: 2014

    • Number of pages: 23

    • Geographic Setting: California;United States

    • Publication Date: Jan 19, 2017

    • Fecha de edición: Dec 23, 2019

    • Source: HBSP (USA)

    • Type of Document: Case

    • Industry Setting: Retail trade;Shipping;Technology;Venture capital

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    Description

    Laura Behrens Wu, CEO of software start-up Shippo, prepares her pitch for a Series A funding round following a successful seed round. Customer adoption of Shippo's e-commerce dashboard application, which allows small and medium retailers to compare delivery rates between shipping providers and print package labels, has been steady in the nine months since it went live. But traction with the firm's developer-friendly product, an API that allows large enterprise customers to automate their shipping needs, had initially been slow until one customer single-handedly tripled the API label volume in late August. Now in November 2014, with nine months of runway remaining, Behrens Wu must decide where to direct the company's limited resources. Should Shippo stay focused on the app while raising the next round of funding, pivot to an API-focused strategy, or pursue both products?

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    Keywords

    Applications Customer churn Customer relationship management Customer retention Customers Entrepreneurship Focusing on customers Innovation Leadership transitions Organizational change Start-ups Startup Strategy Valuation Venture capital