Stork Product Overview: An AI-Powered Autonomous Delivery Fleet

Imagine a world where instead of blue and brown trucks dropping parcels on our porches, a buzzing drove of drones delivered our goods. Now imagine those drones are controlled by 3 purpose-built AI designed to ensure all packages were delivered as quickly and as economically as possible That's what Stork is all about. 

1. Bundles of joy, dropped at your door Launch Plan and Business Overview for the World’s First Automated On-Demand Delivery Service S tork

2. Why Stork? We use automation and AI-powered telemetry to provide the fastest and most reliable last-mile consumer goods delivery service in the world. Or to put it another way…

3. Why Stork? We are like Postmates, but faster . And more secure . And we have flying robots.

4. Meet the Ciconia Rev 1, Our Flying Robot Designed and built by Passerine Aircraft Corporation , this is not just any drone. It includes powered legs and variable rotors that enable cushioned landings, protect sensitive cargo and allow the machine to navigate tight quarters easily. Its unique design also makes the Ciconia capable of traveling faster and farther than other drones in its class (up to 10 miles at speeds of up to 30 MPH).

5. The robot’s great. But how would this work?

6. Key Differentiators How we will leverage a self-adapting system to mitigate risks

7. Unique Pricing Model Unlike competitors, we do not charge a delivery fee Delivery fees are built into all item prices, targeting a 15% margin on average Additional peak surcharges are assessed during surge periods and range $5-10/order 1 hour delivery guarantee is standard Customers can pay an additional rush premium of $20/order to guarantee arrival in 30 minutes Subscription program, StorkSupreme ($19.99/ mo ), provides customers with unlimited free rush shipping and immunity to peak surcharges Unlike competitors, StorkSupreme does not require a minimum purchase size This model’s uniqueness allows for optimization of the fleet over time to eventually support much smaller delivery guarantee windows for standard and rush orders

8. The Primes: Functionally-Aligned Adaptive AI

9. FleetPrime Fleet Management FleetPrime will manage drone fleet redistribution in real-time based on localized demand and historical demand patterns On-call human operators are paged by FleetPrime to assist with distribution in times of extreme surges Recommendations are sent to FleetPrime from InventoryPrime for up to 3x daily redistribution of inventory. 2 drones/hub are designated for redistribution Monitor fleet network for intrusions

10. PricePrime Price Management PricePrime will actively manage catalog pricing, adjusting based on inventory availability and demand Pricing goal is to maintain a 15% margin on average, at a minimum Pricing will account for customer’s current hub assignment and that hub’s inventory Fleet availability and current wait time will also affect adjust pricing in real-time Dynamic price adjustment is only performed on customer login to minimize detection During purchase surges, a “peak premium” is assessed for standard customers StorkSupreme customers are immune to these surcharges

11. InventoryPrime Inventory Management A suite of APIs are provided by Stork to retailers for integration with their inventory management systems Inventory is tracked at the unit level, but automation is built in steps of 5: 10 units left - Item is flagged as "limited quantity" in app/web. Retailer is alerted for immediate restocking. 5 units left - Item is removed from app. Retailer is alerted and provided with hourly automated updates on orders/revenue lost due to stock shortage Inventory is picked on-demand at retail locations and loaded into a StorkBox Drones pick up directly from retailer and deliver to customer AI monitors order volume and may send out drones to serve as "consolidators", picking orders from retailers and bringing them to drone hubs ( StorkHubs ) for distribution StorkBoxes have magnetic/smart locks that can only be opened by drones or target customers. Thus inventory, once packed, only needs to be tracked at the box level StorkBoxes are weighed by drones on takeoff and landing, if weights differ, alerts are sent to InventoryPrime

12. Meet the StorkBox . Secure. Reusable. Made from corrugated, recycled plastic Features a simple smart lock that can only be opened by the customer or a Stork employee Includes an integrated shortwave radio tracking device Deters porch pirates and drone poachers Reduces costs associated to customer refunds and replacements

13. Catalog Curation Retailers selected based on existing local fulfillment presence, market position and desire to establish a new revenue channel Retailers/catalog broken into 3 phases to align to specific market opportunities and competitive landscapes Phase 1 will focus on Essentials Item inventory includes weight and dimensional data Inventory management team has a 3D scanner that integrates into master catalog Manual dimensions can be entered if item is a rectangular prism, cylinder or sphere Items must be no more than 9.5 lbs /150 oz to account for the weight of the StorkBox Each subcategory will be filled out to offer a selection that is larger than a convenience/drug store but smaller than a grocery store Product types (e.g. Cereal, Diapers, Soda) will include at least 6 but no more than 10 options. This makes the catalog achievable at launch while also providing enough choice to prevent frustration due to overchoice All of the items in the Stork catalog are carefully curated based on a number of criteria

14. We have an army of amazing partners. We have secured a number of mostly Chicago-based/owned retailer partners who will be joining us on our journey. Their products will be added to the catalog in three distinct phases. Phase 1: Essentials Phase 2: Meals Phase 3: Gifts

15. How will we build this? Development Plan and Key Success Metrics

16. Development Plan Two squads of six team members, each: 4 engineers: 2 front-end, 2 back-end 1 test engineer/ techops 1 designer Mobile app leads web app development, with learnings from the former informing the latter Slices are decomposed into sprints of 1w each Each functional slice includes usability testing Once mobile and web app cores are complete (slice 6), both squads move to focus on AI development, drone onboarding and catalog population

17. Development Plan: Functional Slices Each slice builds on its predecessor, delivering incremental value 1 2 3 4 5 6 7 8 9 10 11

18. Project Plan

19. Launch Coverage Map 25 StorkHubs 500 drones 250 sq mi of coverage 2.7MM potential customers

20. Key Performance Indicators

21. Risks and Mitigation Plans If you don’t have a plan, you’re planning to fail

22. Theft and Malicious Intents Risk : Drones may be intercepted by thieves in the air All StorkBoxes can only be opened using electromagnetic keys. These are keyed to the specific customer receiving the delivery and can only be opened via Stork app, logged into by the appropriate customer. Stork app login requires biometric measure - facial scan and/or fingerprint If drone loses power and cannot connect to the StorkFleet network, it immediately begins emitting a shortwave radio beacon signal that can be manually detected at ranges upward of 1000s of miles. Due to the low power requirements for this transmitter, the drone can transmit its signal for up to 48 hours Stork will pay a bounty in the form of a $100 Stork gift credit to anyone who finds a downed drone, usable only if they have a Stork basic account Drones have minimal local data, all of which is encrypted using AES Risk: People will down drones intentionally to obtain the bounty If any wrongdoing is suspected upon inspection of returned drone, gift cards can be immediately nullified remotely Risk : Drone data is intercepted by a MITM attack All data between the fleet and FleetPrime travels via a 5G private mobile data network and is encrypted using WPA2 + AES Each fleet hub serves as a data relay point for FleetNet as well

23. Weather and Acts of Fate Risk : The shortwave transmitter is damaged and cannot broadcast All drones are also equipped with an audible alarm that begins to sound once the drone is disconnected from the fleet network Content in mobile and web apps and paid media educates customers on this feature and the bounties for returned drones Risk : A fleet hub goes down Drones carry a small antenna relay, allowing them to provide a secondary relay lattice that reinforces the hubs and provides network redundancy in the event of a hub crash This lattice can be used to re-route "orphaned" drones back within range of a hub to handshake with FleetNet and rejoin the network On-call human operators are also paged to pilot drones back within range of FleetNet Risk : In certain weather, drones may not be able to fly reliably Orders will be queued until queue reaches N customers (25% of user base population at that time). ETAs will not be provided for these orders until the weather event has subsided Only extreme weather windspeeds greater than 20 MPH, hail, heavy snow or sleet will prevent drones from delivering

24. Insurance Costs Risk : Liability insurance premiums will be unsustainably high due to risks associated with drones in flight above an active city below Drones that fail in flight will deploy parachutes to make a cushioned landing, minimizing damage to property and pedestrians Content in mobile and web apps and paid media educates customers on this feature to minimize panic when a drone failure is publicly witnesses Risk : Insurance premiums will be unsustainably high due to a lack of comparable businesses Analogs to commercial airlines and news agency helicopter coverage will be pursued in partnership with carrier’s underwriting staff

25. Mobile App Flows A visual preview of the mobile experience

26. Mobile Customer Registration Flow

27. Mobile Customer Registration Flow, Pt. 2

28. Mobile Order Flow

29. Mobile Fulfillment Flow

30. Web App Flows A visual preview of the web experience

31. Web Customer Registration Flow

32. Web Customer Registration Flow, Pt. 2

33. Web Order Flow

34. Web Order Flow Pt. 2

35. Web Fulfillment Flow

36. S tork All content herein was conceived by Vince Scalabrino, March 2019 and is subject to CC BY-NC-ND 4.0