XHOCKWARE is a startup company focused in developing innovative retail solutions, whose goal is to solve the most common complaints about grocery/supermarket shopping in a natural way, increasing the quality of the experience for consumers and alllowing retailers to save money.
XHOCKWARE's first product is YouBeep, a solution to end the waiting time at checkouts. The system is based on a patented pluggable device that enables every existing POS with fast mobile checkout and a free mobile app that connects shoppers to retailers. The YouBeep APP allow shoppers to checkout and pay for a full cart in less than a minute.
We asked João Rodrigues a few questions.
What's the idea behind the YouBeep App?
The idea behind YouBeep is to create a global solution that effectively solves the problem of waiting time at checkouts in supermarkets, getting around the issues of integration with different POS softwares, improving at the same time the shopping experience for shoppers.
Are you not afraid that supermarkets/shops/stores will be hesitant to co-operate with YouBeep?
Like any other product from a new startup, the lack of history and credibility creates a challenge, especially when your clients are big retailers in a highly competitive market.
It’s crucial to produce a successful business case, that shows the real value provided by YouBeep. Our advantage of being flexible and compatible to every checkout in the world, makes it possible to test, in real environment conditions, in a few hours, overcoming the handicap of credibility: Why believe if you can see it in action.
Right now we running in 5 stores from two of the biggest retailers in the Portugal, showing exceptional results, exceeding any initial expectations. Within 2 weeks we have more than the 2x the share of mobile checkout, when compared to existing self-scanning solutions, running for over 10 years at several competitor stores.
Are you not afraid of customers abusing YouBeep?
The possibility of abuse associated with YouBeep was never a problem for retailers and we soon confirmed that increase in theft was not a problem in the first store we installed. After 4 months there were no meaningful increase in product losses – below 0,03%. The random product audit of each client from store employees is enough to assure control and we can say now that most of the people are honest, not looking to steal, just wanting to leave the store faster.
Approximately, how many people use YouBeep app?
After 4months, in only 5 stores we have more than 16.000 unique users that combined did over 43.000 checkouts. This numbers are even more relevant if we consider that the last 3 stores were installed less than a month ago.
How do you intend to generate a revenue?
We are already generating revenue from both clients, and our business model is to provide YouBeep as a service, with zero investment.
How do you plan on convincing customers to shop using YouBeep?
Most of the customers are sold once they use the APP for the first time. To help promote, and help customers in their first try, we do a month of inStore promotion. During this month we reach aprox. 90% of the regular clients of the store and we can inform the client in a more personalized way.
YouBeep is a new paradigm of shopping. People need to try it and see for themselves the improvement in shopping experience and convenience. It’s interesting to see how customers change their shopping habits to incorporate YouBeep and increase the benefits of a convient checkout, by preparing their goods in a way to optimize checkout and packaging.
After we install in a bigger number of stores we will be able to work with retailers to promote the app using mass media and retailer’s communication reach.
Coupons and promotions
How can I save time and money using your app?
The APP allows all buyers with a smartphone (Android and iOS) to read product bar codes as the products are placed in the cart or bag, knowing how much they will pay before reaching check-out.
While shopping YouBeep provides the customer with special offers, informs them of promotions, and automatically rebates any eligible coupon available to the customers.
During check-out, the customer does not need to place the products on the belt because a random audit is done by an employee and the payment is made by card or cash. The check-out time is thus reduced by 50%.
How many products are there in your database?
The database is in sync with the retailer, this way we have updated information on all products and prices of each store. Currently we have more than 500.000 different references, from 3 different retailers.
Shopping / wish lists
Are you going to try and get funded or financed in the near future?
We received a seed and a bridge round and are funded for the next 18 months by two Portuguese VC’s. We will look for a series A from international VC’s before the end of next year, when we will have signed contracts from relevant international retailers. The money will be mainly for the international operation and to reach new markets. We are currently talking with retailers in UK, Spain and Germany.