All of us have seen how e-commerce industry giants like Flipkart, Alibaba, Amazon have generated millions of orders through consistent efforts of changing customer buying behavior. This year it is Online Food Ordering industry that has stolen the show. Its been the hottest among investors touting billions of dollars of investment. About 250 start-ups are trying to validate unconventional models disrupting the industry. We can categorize food industry as:-
- Restaurant aggregator:- Zomato, FoodPanda providing listing and reviewing restaurants
- Chef aggregator:- Holachef, Faasos, Innerchef, Foodcloud, Yumist provides lists chefs
- Delivery player :- Shadowfax, Parsel, Grab etc provides instant delivery
- Food tech companies:- Limetray, Done provides an end to end technology stack of Web, APP, POS & Call
- Food ingredient delivery:- iChef, Chef’s Basket, ChefKraft, Haute Chef, provides recipe kit
This year online food ordering industry started bullish with dozens of new start ups, large companies acquiring the smaller ones to quickly expand their market share, league for talent hunt, a whooping growth of 30% was seen month over month according to Brand equity foundation report. But by the end of this year it has become bearish, we hear about layoffs, few are tightening their belts to survive, big giants are finding it challenging to make business profitable, few have already closed down. It seems only the fittest will survive. So when the entire industry is facing the heat, Done is one of those few companies that is growing. Surely the question that must be coming to your mind would be “what is it that we are doing so differently?” Well many factors have contributed to the growth viz our vision, a great team, a holistic product, strategic tie-ups one of the most important contributing factor to growth is ensuring Minimum Cash Burn. The next question that comes to the mind is “But how, how to keep cash burn to minimum?”
We are listing down 5 areas where you can save your cash to lower down your bottom line
- Shared Space – Every one loves to have a glamour’s office and talent would definitely be attracted but time matters, as a start up we choose shared space over a luxurious office saving lot of cash
- Outsourced Resources – Many times we need to select between an in house team or outsourcing, depending on how critical is a function and frequency of requirement we have outsourced few of our task(It is better if we can mention which one). Well, when entire world is benefiting from Pay As You Go model why not us?, after all start ups are bootstrapped and our vision is not just to run a show but to create profitable business
- Asset Light Model – Many of the big companies do not own their assets like Uber owns no vehicles, FB does not own any content, Alibaba owns no inventory, Airbnb owns no real-estate similarly we do not own any single vehicle or have not hired any rider yet we have the largest network of delivery. Which means no capital investment needed, instead we facilitate the ecosystem by bridging the gap between demand and supply
- Strategic Marketing – It has always been a debate if a marketing is a must or not. We say yes, we do need to marketing budget but instead of mindless offers and promotion it is should be kept to minimum especially being a startup each peny should be spend wisely and its returns should be measured. As it is marketing is experimental one should split marketing budget in the medium where they feel they will get the result and check if it works accordingly the next media plan should be crafted.
- Non IVY League – Our selection of talent is not based on degrees, instead it is based on skill, passion and growth potential of a candidate
I am sure this small list will help you save huge cost, if you can add and contribute to the list it will be great !