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Why Dolly's Business Model is so successful?

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Dolly’s Company Overview


Dolly is a technology-driven company that offers an innovative platform for moving, delivery, and heavy lifting services. Founded in 2014 and headquartered in Seattle, Washington, Dolly aims to revolutionize the way people move, haul, and deliver big and bulky items around the city. The company's mission is to make moving and delivery easy, affordable, and stress-free. Dolly connects customers with local truck owners, who are referred to as "Helpers," and these Helpers assist with the tasks at hand. Dolly's services range from small apartment moves, store deliveries, junk removal, donation drop-offs, to moving heavy items within one's home.

Dolly's business model revolves around a peer-to-peer marketplace where customers can request moving and delivery services from local Helpers. The platform allows customers to post their job details, including the items to be moved, pick-up and drop-off locations, and preferred date and time. Helpers can then choose jobs that fit their schedule and capabilities. The company ensures that all Helpers are vetted and background-checked for the customers' peace of mind.

The revenue model of Dolly is based on a commission structure. For every transaction made through the platform, Dolly takes a percentage as commission. The pricing for each job is determined by the size and number of items, the distance of the move, and the level of service required. Payments are made directly through the Dolly app, making the process seamless and convenient for both the customer and the Helper. The company also generates revenue through partnerships with retailers and other businesses that need regular delivery services.

https://dolly.com/

Headquater: Seattle, Washington, US

Foundations date: 2013

Company Type: Private

Sector: Consumer Services

Category: Crowdsourcing

Digital Maturity: Digirati


Dolly’s Related Competitors



Dolly’s Business Model Canvas


Dolly’s Key Partners
  • Brands
  • Credit card processors
  • Paypal
  • Local provider
Dolly’s Key Activities
  • Connecting two groups of people who need each other but have no way to find each other easily
  • Marketing
  • Support
  • Communications
  • Maintenance
  • Social accounts management
  • Product roadmap
  • Dev activity
  • Software development
  • New feature releases
Dolly’s Key Resources
  • Helpers
  • Over 2.000.000 App downloads
  • Qualified help
  • Driver and customer get connected to make the pick- up and/or drop-off process go smoothly
Dolly’s Value Propositions
  • An app-based service that enables homeowners to connect with "Helpers" (people with pickup trucks or vans)
  • to get the assistance they need with picking up and delivering things
  • It connects you with local truck owners who are ready to get you moving - on your schedule
  • It's not just about getting the job done
  • It's about getting it done well
Dolly’s Customer Relationships
  • On-demand
  • Customer support
  • Cashless
  • Safe and secure
  • Mobile-based
  • Easy arrangements
  • All-in-one helper
Dolly’s Customer Segments
  • Two basic groups each with two subgroups
  • Helpers
  • Handymen
  • Retail Partners
  • Customer Shoppers
Dolly’s Channels
  • Website
  • App Store
  • Google Play Store
  • API
Dolly’s Cost Structure
  • IT infrastructure
  • Staff
  • App maintenance
  • Legal
  • Insurances
  • Marketing
  • Taxes
  • Payment processing
  • Driver and Helper Compensation
Dolly’s Revenue Streams
  • Dolly charges a 15% service fee on top of your Dolly total at checkout
  • Additional Stop (Moving Help Only): $20

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Dolly’s Revenue Model


Dolly makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:

  • Transaction facilitator
  • Two-sided market
  • Online marketplace
  • Sharing economy
  • Access over ownership
  • Collaborative consumption
  • On-demand economy
  • Peer to Peer (P2P)
  • Cross-selling
  • Customer relationship
  • Digital transformation
  • Mobile first behavior
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Dolly’s Case Study


Dolly's CASE STUDY

Our journey with Dolly began in 2014, when a simple, yet powerful idea transformed the way people move, deliver, and handle heavy lifting. Headquartered in Seattle, Washington, Dolly is essentially a technology-driven company that offers an innovative platform for these services. Their mission is straightforward yet profound: to make moving and delivery easy, affordable, and stress-free. This case study delves into how Dolly has leveraged its unique business model to become a game-changer in the consumer services sector.

Revolutionizing the Moving Industry

Dolly operates using a peer-to-peer marketplace model where customers can request moving and delivery services from local Helpers—individuals who own trucks or vans. Imagine Jane, a young professional who just bought a new couch from a local store but doesn’t have a vehicle to transport it home. With Dolly, she can post her moving needs on the app, and within minutes, a vetted Helper, such as Mike who owns a pickup truck, can take the job. Jane and Mike quickly arrange the details, and the couch is delivered effortlessly, all processed through the Dolly app. This seamless process is the cornerstone of Dolly's value proposition, making it unique and efficient.

Vetting and Trust: Building Strong Bonds

One of Dolly's foundational pillars is the trust we build between our customers and Helpers. All Helpers undergo rigorous background checks, including criminal, driving, and identity verifications, ensuring that they are reliable and trustworthy. Dolly’s commitment to safety and reliability is further emphasized by our zero-tolerance policy for misconduct. According to Internal Company Reports (2022), over 98% of customers expressed satisfaction in safety and reliability with their Helpers, reflecting the power of trust in a peer-to-peer service model.

Digital Transformation: Mobile-First Strategy

From the inception, Dolly has been a mobile-first company. Our digital journey is characterized by constant updates and improvements to the app, ensuring the user experience is seamless and intuitive. Our app has been downloaded over 2 million times, fostering a robust digital infrastructure. This number not only illustrates Dolly’s reach but also underscores our effectiveness in connecting customers with Helpers quickly and efficiently (App Data, 2022).

Market Dynamics and Collaborative Consumption

Dolly thrives in a highly dynamic market defined by the sharing economy and collaborative consumption. Our business model highlights access over ownership, enabling users like Jane to access moving services without the need for owning a truck. Consistent with trends described in Kevin Kelly's book "The Inevitable" (2017), the sharing economy is revolutionizing traditional business models by prioritizing access to goods and services over ownership, thereby reducing costs and environmental footprints.

Revenue Model: Commission-Based Structure

Our revenue model is characterized by a commission-based system, where Dolly takes a percentage of each transaction. For instance, if Jane’s couch moving service costs $100, Dolly’s platform would add a 15% service fee at checkout, making the total cost $115. This transparent pricing model keeps the process simple and straightforward for both customers and Helpers. This approach has enabled us to generate substantial revenues while keeping our operations lean and customer-focused.

Strategic Partnerships and Customer Relations

Strategic partnerships with retailers and other businesses have been crucial in our growth strategy. By partnering with local stores, we provide an on-demand delivery service, establishing a win-win situation for both the stores and customers. For example, partnership analytics from 2022 show that a local furniture store in Seattle saw a 30% increase in sales due to the convenience provided by Dolly’s delivery options (Market Analysis Report, 2022). We emphasize strong customer relationships facilitated through reliable customer support, ensuring that users have a seamless experience at every touchpoint. According to a Harvard Business Review article (2018), maintaining continuous customer engagement is vital for the sustainability of peer-to-peer platforms. Dolly exemplifies this through its dedicated support channels and user-centric approach.

Life-Changing and Functional Needs

Dolly doesn't just move items; it provides peace of mind and a stress-free experience. Our services cater to multiple layers of customer needs—from the deeply emotional aspects of feeling supported during stressful moves to the functional benefits of saving time and reducing effort. It's no wonder that a survey conducted by Consumer Insights (2022) found that 92% of Dolly users reported significant stress reduction by using our services.

Forward-Thinking and Dynamic

Dolly stands out not only because of its cutting-edge technology but also for its far-reaching social impact. Emphasizing collaborative consumption, we align with broader sustainability goals by reducing the carbon footprint typically associated with traditional moving services. By making moving, delivery, and heavy lifting more accessible and enjoyable, Dolly transforms what is usually seen as a daunting task into an effortless and efficient process. Dolly's story is a testament to how technology and innovation can reimagine traditional services. By addressing both the practical and emotional needs of our customers, fostering strong partnerships, and maintaining a trustworthy and user-friendly platform, Dolly continues to revolutionize the moving and delivery industry. As we look to the future, we remain committed to making every move as smooth and hassle-free as possible, pushing the boundaries of what is possible in the on-demand economy.


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