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A Guide To Launching A Successful Online Supermarket Solution

Sushmeet — Tue, 04 Jan 2022 09:26:31 +0000

For almost everything, our generation relies on technology. So why should food shopping be left behind? To be honest, every weekend a few years ago, the only day trip for our workforce was a food shop. The long queues of billing made it worse. But with time, the coin was turned and everything was changed for good. Thanks to the e-commerce industry for producing online food shops. It saves time as well as effort. Now the common man can make more constructive use of their weekends (or just sleep till noon). You can’t deny that the new trend in online business is the sale of food. In the Asia-Pacific region, India’s online food market was placed 5th in 2016. The Indian food retail market in major cities is growing exponentially, according to a survey. By 2020, this online food industry will have an entire value of $650 billion. There is therefore no better time than now if you want to start a new online food shop! Embrace the future and launch online supermarket solution, ushering in a new era of convenience for consumers in the evolving digital marketplace. This prognosis will undoubtedly attract many entrepreneurs in the market of foodstuffs. This blog is intended to give these entrepreneurs a thorough understanding of how the online food market functions, different revenue channels, key elements, and useful tips and growth hacks make the market start. What Is An Online Supermarket Store? An online platform that can sell foodstuffs via the Internet is known as an online food store. In return for nominal subscription rates, many small-scale farmers that are not capable of generating decent sales will have a fair chance of increasing their profits. Like every other B2C business in e-commerce, the only difference is that an online supermarket is fully based on time and topography. Online foodstuffs have registered suppliers. You need to enter your location or zip code or it can be detected automatically via GPS. In order to meet your demand as soon as possible, the next supplier is then contacted. They don’t have to go to the shop for a specific product or brand to make any extra effort. All is present before their eyes. They just have to select and place an order. The following article answers your questions and leads you to create a more efficient online supermarket. See Also: The ultimate guide to launching a super app like Gojek Steps to Launch An Online Supermarket app like Woolworths Tips To Launch Online Supermarket Solution (Store) Successfully Decide Your Delivery Area Properly The market will always provide a true business genius with opportunities. It is not a child’s play after all to run a successful food store and manage large inventories. You need to think like a successful entrepreneur in order to make your online supermarket successful. You need to decide which areas you will be looking for in order to start an online supermarket like Weezy. This crucial decision must be made on the basis of many factors such as the social preferences of individuals who live in this particular field, their initial response to ordering online food, and market competition. You need an e-commerce solution that can analyze leads from various areas easily. It also helps you to get a boost in the sales-generating areas over other local brick shops. Identify A Business Model As previously mentioned, the perishability of the items to be sold offers you some business models that differ in terms of deliveries, inventories, and terms of payment. The second most important question you have to ask is: Wanna run your own warehouse or arrange for dropshipping in order to deliver your brick and mortar partner shop for you? When you start to explore this issue, you will continue to refine your business model. The food supply service of Instacart on the same day disrupted the food market. This gave other startups the opportunity to tap into the online food supply business. Instacart has partnered in the delivery of food to door with major brands and retailers. Pick An eCommerce Platform The development of a supermarket app for e-commerce is an important step in establishing your online supermarket. This one is possible with two options. Either you can use the conventional website to make the process long and expensive. Or, to save time and money, you can make an intelligent move to partner with an expert e-commerce supplier. For your online supermarket platform, we provide quick e-commerce solutions. You can log in and set up your own store easily on the platform. Moreover, you can choose from your existing theme library or try to create a simple drag-drop and simplified backend with your hands. Set The Inventory & List The Items According To The Categories The soul of every food company is inventory. To attract new customers, you need various products. And that requires a strong management tool for the inventory. We give you the liberty to organize your store in a multi-tier hierarchy to list different categories and sub-categories. It has unique stock management tools that will help you to easily and efficiently find each product in your online supermarket in the management of the database. Find A Trustworthy Delivery System Your company is via delivery services connected to your customers. Ensure you select a trustworthy person. It is so important that customer relations can be established or broken. In the areas where you operate, the delivery service you select should be prompt. Go for a solution for e-commerce that integrates with your food supplier. It needs features that update customers to their order status through text. Some up-to-date functions can also help you monitor delivery live. With these competent features, we advance you ahead of the others by easily managing your deliveries. Integrate With Other Vendors As Well At some point in time, every business needs to expand. You can either increase your stock or connect with suppliers who sell the products you want to add to your […]

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How Grab works – Business model explained

Anurag Jain — Fri, 24 Sep 2021 13:47:57 +0000

The development of On-Demand taxi apps makes a lot of sense for current businesses, startups, or even enterprises because of the mobility and convenience of their workforce. In the taxi industry, on-demand services such as Uber have surpassed traditional services. Mobility solutions as a service have begun to replace privately-owned taxis as a preferred mode of transportation for many consumers (MaaS). To substantiate this claim, consider that in 2017, Uber in New York collected 30 million more rides than standard taxis. Statista predicts that the global ride-hailing service market will grow at a compound annual rate of $126,521 million by 2025. As this industry expands at such a rapid pace, we think it’s only fair to share with you how on-demand taxi app development is done. In fact, over the past couple of years — many new ride-sharing applications have come into existence, and Grab is one of them. What Is Grab? There are many products and services available through the Grab app in Southeast Asia, including food delivery and financial services. While attending Harvard Business School, Anthony Tan and Tan Hooi founded Grab, an on-demand taxi service. Launched in 2012 as GrabTaxi, the car-hailing, ride-sharing, and food delivery service has grown to be Southeast Asia’s most popular in just four years. Southeast Asia is where Grab is present, with offices in places like Singapore and Malaysia as well as Thailand and the Philippines. In March 2018, Grab acquired Uber’s Southeast Asian business, launching it as one of the region’s most popular cab-hailing apps. Grab has announced a 70% increase in its revenue run rate for 2020. The business model for Grab is very simple. Physical assets and drivers are rare in small businesses. Grab’s technology connects passengers in need of a ride with drivers who are willing to transport them, and Grab will eventually receive a share of the fees. It all began in Malaysia, where the taxi industry is/was split between officially licensed and black market or unlicensed drivers who make a living transporting people around. From the beginning, it was clear what needed to be done. As the largest ride-hailing company in Southeast Asia, Grab Holdings had proposed a $40 billion merger with Altimeter Growth Capital, which would make it a Nasdaq company. Globally, Grab has 187 million users. It provides a wide range of services, such as taxi booking, carpooling, shuttle services, bike-sharing, and on-demand food delivery. Funding & Valuation According to Crunchbase, Grab has raised $12.5 billion in debt and equity capital through 34 rounds. Tiger Global Management, SoftBank, GGV Capital, Yamaha, Microsoft, HSBC, Vertex Ventures, 500 Startups, and Toyota are among the notable investors who have put money into Grab. Grab is hoping to raise $40 billion from the SPAC merger, which should be completed by the end of the year. For the fiscal year 2020, Grab announced a yearly revenue of $1.6 billion. In the meantime, the company suffered an $800 million loss during the same time period. How Does Grab Work? With operations in Southeast Asia, Grab is a one-stop shop for a variety of services, including insurance and food delivery. Grab is now available in eight countries, including Myanmar, the Philippines, Thailand, Malaysia, Vietnam, Cambodia, and Indonesia, thanks to the company’s rapid growth. There are numerous products available depending on where you live. The app gives users one-stop access to all of the available products. WeChat and Meituan, two of Tencent’s apps, first popularised the concept of a super-app in China. Grab currently provides the following products: GrabRides is a ride-hailing service that allows users to order taxis and other types of vehicles on-demand. GrabMart offers grocery delivery services to its customers. GrabFood is a food delivery service that provides customers with restaurant-quality meals. Insurance for travel and transportation is available through GrabInsure. To make in-store purchases, users can use GrabPay’s digital wallet. Drivers and customers can use GrabFinance’s ‘buy now, pay later’ option. Grab is constantly experimenting with new features to see which ones will be successful. If a customer orders food or a cab, Grab will use independent contractors to help with delivery and mobility. Grab can be downloaded and used on any Android or iOS smartphone or tablet. Grab’s Business Model Grab is an online aggregator with a simple business model but one that is highly sophisticated in terms of technology. Through the internet, this service connects people in need of a ride with people who are willing to provide transportation. Grab takes a portion of the fare and then hands it over to the driver. Grab is a leading on-demand company that provides more than just cab services, with more than 6 million trips per day and 2.8 million drivers. Throughout the years, the company has expanded and developed numerous revenue streams, such as hotel reservation services, restaurant ordering systems, and grocery shopping. There are different business models being adopted by different on-demand apps like Getir has a different business model with the core function being the same. So it is important for you to choose the right business model according to your needs and preferences. How Does Grab Makes Money The revenue generated by Grab is directly tied to the number of passengers it transports. More drivers will sign up on the platform as passenger demand for cab rides rises, resulting in more trips. Grab makes a certain amount of money as commission on each successful ride. Grab’s business model is based on commissions. It takes a commission of between 16 percent and 25 percent of the fare and gives the rest to the driver. If you want to know how Grab’s on-demand business works, you should get to know these important Grab partners first: Driver — The Service Providers As a result, they join the platform in an effort to turn their riding services into a revenue stream. Grab allows its employees to set their own hours, and the platform provides a sizable number of rides. To protect the personal and professional interests of […]

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How To Easily Build A Supermarket App Like Everli

Anurag Jain — Sun, 06 Jun 2021 05:44:13 +0000

Everything’s at your fingertips in today’s time. Whether it’s a cab booking, a food order, or a shopping experience, just a few mobile phone taps and it is done. Like shopping for other products, people are now also more likely to order their regular food. You will in fact be surprised to know that almost 25% of consumers in the United States order their food online. Demand continues to grow and will stimulate the market to increase growth. By 2022, an appreciation of 133.8 billion dollars is expected in the online food market. This shift to Easily Build A Supermarket App has enhanced demand for both food suppliers and mobile app developers and gives start-ups, traditional food stores and tech companies great opportunities to invest in mobile app development projects for their own food supply. The online food industry has become a promising industry for enterprises with the Covid-19 pandemic attack. Combining the interest of consumers to avoid stepping into public areas, and the continued demand for food and essential goods, the demands for food supply apps such as Amazon, Grossfarmer, Instacart, Walmart and even newcomers such as Everli were suddenly increased. Customers have formerly been resistant to online shopping, but a pandemic has forced several people in various countries worldwide to change their shopping psychology and accelerate industry penetration. If you are willing to create a supermarket app like Everli, then read on. What Is Everli? Supermercato24 based in Milan has recently renamed and became the Everli brand. It has adopted an innovative model for the supermarket food supply application, which is beneficial to customers, supermarkets and distributors (they hire as shoppers). Customers can select and place the order online in a trusted shop in the vicinity. Everli was founded in 2014 and allows customers to order from its local supermarkets. The company is using a cost-effective and personal buyer who picks and then delivers the ordered items on the same day or at an additional cost within one hour. The company charges a consumer delivery fee, but also generates revenues through advertising from the charges charged to partner merchants. It has developed into the delivery partner of some of the biggest food brands in Europe, providing access to over 300,000 products throughout its 70 cities. And, like other online food products, Everli benefits from an increase in e-commerce, and reliance on pandemic and country-based supply services. Everli’s sales were nearly four times higher than $130 million in 2020. This growth takes place outside Italy and now accounts for over 20 percent of orders through international expansion. Why Build An Everli Like App At All? There have been days in the past when buyers prefer to buy essential household items from traditional supermarkets, shops or markets in the area. Initially, however, the local trends were replaced by the supermarket shops, and now there are proudly a growing number of mobile applications. It is not shocking to say that the mobile app industry thrives without showing signs of a decline for the future with 2.7 million active smartphone users throughout the world. While smartphones are useful for all types of access, from text to calls, online shopping applications are also suitable for smartphones. Imagine how relaxing it would be to bring in from your mobile screen a variety of fresh fruits, vegetables and milk and all the other necessary articles at your doorstep? As customers feel easier to shop for groceries with an app, more and more companies are benefiting from it. It’s not wrong that food shopping apps play several roles. Benefits Of Supermarket Apps Like Everli There are a bunch of benefits of Supermarket apps for both — you and your customers. Some of them are: Reduced Shopping Time Visiting a store without your food list is not only time-consuming but also the angriest time you would never want to face today, collecting your needed items and then waiting for yourself in the long queue. Did you know, a survey revealed that buyers usually spend about 43 minutes visiting supermarkets 1.6 times a week. On average a purchaser spends around 60 hours on groceries each year when calculating this annually. Your app can, however, tailor your shopping experience to include not more than an hour and a half in your life. Convenience To Track Orders The more comfort and persuasion you offer the customers the better the impact of your sales will be. Justin Smith, the CEO, predicts that 79 percent of smartphone users prefer to purchase from mobile applications from the OuterBox survey report. With supermarkets mobile applications, customers can track the order’s location in real time, so they can calculate when the product is delivered. Understanding Customer Behaviour Many of you have to wonder why this economic issue is discussed in a commercial food app, but it is important to understand it! With today’s business models in mind, the collection of valuable data for businessmen to understand whether clients like their services or dislike them has become highly essential. Surveys can double your business sales after customer analysis. A customer behaviour survey can include everything from when they want to shop, how they pay, what customers want and much more. Streamlined Product Categorization Easy product categorization will make your customers happy and allow you to reach new levels in your business. Well-listed products can enable your customers to navigate and choose from thousands easily. You can add it to your cart and enjoy a smooth buying experience using a number of taps on your mobile device. A business owner can easily manage the supermarket business with the online food app and simplify its customers’ overall shopping process. If you are a start-up or supermarket, it’s best to choose to create an on-demand food supply app if you finally want your business to grow with your application. See also: Guide To Launch A Supermarket Solution Basic Features To Include In Your Supermarket App Each application requires a basic set of functions and features for its various […]

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How to Build a Super App Like Gojek

Sachin Sharma — Tue, 08 Dec 2020 08:55:53 +0000

A step by step guide to build a super app like Gojek – A Multi-Service App A super app is a one-stop solution to meet all of your consumers’ needs. Basically, a super app, like Gojek, provides multiple services in a single platform. Ranging from on-demand grocery delivery to ride-booking and making payments, everything can be done using just one application. A super app allows mobile users to integrate third-party merchants’ services without downloading separate apps. Latest trends and stats about Super apps The Super App model has already been picking its pace in emerging markets such as India, Southeast Asia and South America. The US model or simply the Silicon Valley model is to grow vertically first and then expand globally. On the other hand, The aim of these super app start-ups is to expand horizontally and capture specific geography. Most of us have too many apps on our smartphones. I have close to a hundred apps, but I only use just a few of them. Think about this, how many apps do you have? How many of these do you use on a daily basis and how many just once or twice a month? I won’t be surprised if some of these apps are there on your mobile phone but you never use them, like never. So, this is where Super Apps come in. According to statistics we use very few apps. 50% of the time we use just a single app, and 77% of our app usage comes from only the top 3 apps. There are many well-established super-apps in the Asian market already. But there are still many others who still are waiting for their super app. For entrepreneurs and people looking for new startup ideas, getting a Super app can be a good opportunity to start their business. Amazon, Uber, and Facebook are some of the leading giants that are also looking to provide multiple services. See also: Create an app like Dunzo Super App Examples Go-Jek: Go-Jek, a startup from Indonesia, started its operations as a bike ride service app in its initial years. Today, Gojek offers a complete package of on-demand services. From ordering grocery on-demand, hyper-local delivery to fintech, the startup offers around 20 services. This is the app we will be focusing on today later in the post. WeChat: This is another important super app. WeChat is a messaging application that gets more than a billion monthly active users every month on a regular basis. The messaging app offers integrated services to users, by offering a restaurant, taxi booking, movie booking, and shopping apps all within a single platform. Rappi: Rappi markets itself as Latin America’s everything store. From groceries, food, alcohol, medication, apparel, and electronics, the Columbian-based startup aims to deliver everything on-demand. In its initial years, Rappi started its operation as a grocery & food delivery app. Today, the startup has expanded its services to bike rental, travel, and bill payments. Here is a guide on developing a super app like Rappi to help you get greater insights into how rappi works and how you can create a similar app. Why Build an app like Gojek? Super apps are trending and Gojek is one of the most successful super apps out there. An app like Gojek lets you offer multiple on-demand services under one roof. Due to their versatility, super apps are dominating users’ daily lives in the east. It’s time for the west to catch up. Founded on October 13, 2009, by Nadiem Makarim, the company is Headquartered in Jakarta, Indonesia. Here are some facts about Gojek to show its growth and success today Number of Riders Operation Valuation Number of Services Provided 200.000 14 Cities $l.3 billion 20 Creating an app like Gojek helps entrepreneurs scale rapidly. Starting with users’ buy-in initially, they can keep on adding multiple services to gain customers’ loyalty. It also helps them save the trouble of creating new apps for each idea that pops up in their head as all the ideas and services can be amalgamated into just one app. As per Statista, there are more than 4m applications listed on google and the play store. This not only means that for new apps, it is getting difficult day by day to get users but also for existing ones, it is becoming difficult to retain the users. On top of that, users have limited storage space in their smartphones. Expecting users to download these many apps is not a good idea. A super app like Gojek eliminates this imbalance and improves productivity by reducing the time taken to complete a particular task. Most Users prefer cost-effective apps where there are various types of service providers in one place. Gojek offers multiple services, such as on-demand food delivery, on-demand grocery delivery, medicine delivery, cab booking, house cleaning, bill payments, etc. These expanded offerings help Gojek enhance user engagement, ultimately increasing the ticket size and total revenue. Offers: Super apps like Gojek provide discounts, promotions, deals, and offers to customers which can help you get more users to download your app. Super apps like Gojek have simple yet effective user interface designs. In addition, this app offers multiple payment options for customers. All this enhances the user experience which is vital for any app to be successful. How a Super App Like Gojek Earns money The business model for super apps like Gojek has grown well beyond its original range of offerings to cover services, including lifestyle, entertainment, and financial needs. Gojek generates a good amount of revenue each year. The followings are some of the monetization strategies Gojek uses Business Commission Gojek partners with businesses to help them make more sales by offering these businesses its operation. In return, Gojek gets a commission from them on each of the successful orders made using the Gojek app. Customer fee Gojek provides a convenient one-stop solution to customers by helping them meet their needs using just one app instead of going to different […]

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How Gojek Works – Business Model and Revenue Model Explained

Anurag Jain — Mon, 02 Nov 2020 07:17:15 +0000

Introduction Founded by Nadiem Makarim in 2010, Gojek had a fleet of motorcycle drivers that used to provide on-demand rides to passengers. Along with bike rides, the startup was into food delivery and courier services at later stages. The startup didn’t get much traction in its initial years. But in January 2015 everything changed for this Indonesia’s ride-hailing and on-demand services startup Go-Jek when it launched an app. See also: How much does it cost to create a supermarket app like Weezy Steps to make an app like Rappi & How Much Does It Cost Recently, it has become a unicorn after its US $550 million fundraisings. The company has raised $5.3 Billion in 13 rounds as of 2021 according to Crunchbase. With the backing of acclaimed investors like Google Mitsubishi, Astra International, Northstar, and more, Gojek became the first unicorn company in Indonesia. Some facts about Gojek Total number of riders: 200.000+ Operation: 14 cities Valuation: $l.3 billion Services provided: 20 on-demand services. Like motorcycle taxis, food delivery, courier service etc. Founded: October 13, 2009 Headquarters: Jakarta, Indonesia Current CEO: Andre Soelistyo, Kevin Aluwi Founders: Nadiem Makarim, Michaelangelo Moran, Kevin Aluwi Growth Timeline The journey of Gojek has been crazy. The startup has seen tremendous growth over the past few years. Want to know how it all started? Here’s what happened October 2010: Gojek started with a call center and a fleet of only 20 motorcycle riders. Mid 2014: Investors were interested in Gojek, seeing the rising popularity of Uber. January 2015: With 400 riders, launches an app with transportation, shopping and courier services for Jakarta and cities nearby. March 2015: 2,000+ riders at Jakarta and cities nearby. Also, it expands to Bali with 300 riders. Expands to Surabaya within 3 months. April 2015: Launches go-food service and expands to Bandung May 2015: Has 3k riders. Grab bike, a competitor, enters the market. August 2015: With mass recruitments, it now has 30k riders and expands to Makassar. September 2015: Launches go-mart, an on-demand shopping assistant. October 2015: Get funding from Sequoia Capital and some other investors. Launches new services like go-box, go-massage, go-glam, and go-clean along with go-busway, a service that connects people with public buses. December 2015: Launches go-tix, an event ticket booking service, and the company expand to Balikpapan, Jogja, Palembang, Medan, and Semarang. January 2016: Line app Integrates Gojek into its chat app to enable ride-hailing service February 2016: Acquires 2 Indian startups, Codeignition, and C42 startups. It now has 200k riders. May 2016: Collaborates with a major Indonesian taxi company BlueBird. GoJek expands to Samarinda, Solo and Malang. June 2016: Launches go-auto to provide mechanic services on demand. The company now expanded to Manado. April 2016: Launches go-car to expand its ride-hailing from motorbike fleet to cars. Gojek works smoothly, and that’s the reason why it is at the level of success that it is. For anyone who’s thinking of starting up something similar, it is worth looking into the inner workings of Gojek, how it operates and generates revenue Gojek Business Model Gojek is a multi-service platform, and it has a few segments that it caters to, i.e., Consumers, Merchants, and Drivers. By understanding how the app works for these different segments, we can understand the business model of Gojek. Gojek for Consumers This segment comprises the people who use the variety of services that Gojek has to offer. Gojek provides a reliable and straightforward experience to its users. Gojek consumer segment includes- People who are looking for quick access to multiple solutions. People who want reliable service at a reasonable price. People who want a variety of choices. People who want to enjoy safe and fast delivery. For this segment, here are the value propositions from Gojek. One-stop-shop for multiple needs. A varied selection of reliable retailers and service providers. Safe transactions. Here’s how Gojek works for customers Defining the Need First, users can identify a need and then search for a viable solution on the app. There are several excellent solutions, such as GoFood, GoRide, GoSend, GoShop, and more than twenty such services. Depending on the call of the moment, users can commit to the apt service among these. Booking Apt Option Once users are clear about their needs and the service that they are going to use, users can then book the service to finalize their decision. Users can select their purchase and add one or more to the cart. Once the cart is full of their desired buys, users can move on to the next step. Paying the Bill Once the consumer cart is full, they can move on to the payment option to pay for their purchase. Users can choose to pay online, or cash on delivery is also an option. Cash on delivery option may cost users a little more than paying online, but the company does this to minimize false orders and eliminate risk as much as possible. Receive your Services After the payment is complete, whatever service the customer is using, whether it’s a food delivery service, or grocery delivery, etc., the package arrives at their door, or the work is done, and so on, at the stipulated time. The timing can vary, depending on the service in use. Gojek for Merchants There are a lot of Merchants that come on board the Gojek train. These are new-age businesses, and even many traditional, old- school businesses and service providers who want to take advantage of Gojek’s popularity. Merchants are interested in Gojek because of a variety of reasons. It is one of the best platforms to be in the online space. It provides a varied user base to the merchants on-board. The venture is quite profitable and is one of the biggest growing businesses in the world. It adds value to any business to have a Gojek connection. Merchants that are aware of the platform and find it useful to their business strategy sign up with it, and rest, as they say, is history. How […]

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Step-by-Step Guide to Build App Like Rappi & How Much Does It Cost

Anurag Jain — Wed, 05 Aug 2020 06:53:41 +0000

Build App Like Rappi is a Columbia based on-demand delivery app that markets itself as Latin America’s everything store. The start-up aims to deliver everything on-demand, from groceries, food, alcohol, medication, apparel, electronics, and has branched out into bike rental, travel, and rudimentary banking services such as paying bills and delivering cash. Here are some stats about Rappi Founders Founded on Headquarter Total Funding raised ($) Valuation Felipe Villamarin, Sebastián Mejía, Simón Borrero 2015 Bogota, Colombia $1.4B $2.5 B Rappi was founded in 2015 by Simón Borrero, Sebastián Mejía, and Felipe Villamarin. The start-up initially started operation as a food and grocery and delivery app; however, over the past few years has grown into a whole ecosystem and was recently valued at an estimated $3.5 billion and is backed by Japan’s SoftBank. Rappi currently operates in 55 cities across seven Latin American countries including, Brazil, Argentina, Chile, Colombia, Mexico, Peru, and Uruguay, and serves more than 13 million users. How Rappi Makes Money Rappi enables users to order groceries, food, or drug store medications, as well as withdraw money from their bank account via ATM and deliver cash through its App. Through the App, customers can also request for errands such as provide personal belongings transportation, including keys, purses, wallets, etc. Additionally, the App also offers services such as dog walking. Rappi generates value to all the players in the ecosystem by using an innovative business model: Rappi makes money by charging merchants commission on each order. Rappitenderos (Rappi’s courier boys) don’t receive any part of this cash; they are paid directly by the delivery fee charged to customers. As per the Company, a delivery person makes approximately $4,700 pesos per order ($3,700 pesos for delivery and $1.000 pesos as a tip). Rappi has also built a secondary revenue stream by creating partnerships with consumer-packaged-goods (CPG) companies. Rappi charges CPG company’s marketing fees to guide consumers to their products and display ads. Furthermore, to increase courier utilization during non-peak hours, the Company offers CPGs the opportunity to deliver sample products. By leveraging Rappi’s consumer data, CPGs can select specific customer profiles to send their product samples. Rappi has another value-add service which is Rappi pay, an electronic payment system through which users can transfer money and make payments to merchants with their phones. Rappi continually adds new categories to the platform to achieve higher ticket transactions. Rappi Business Model Rappi’s business model has seamlessly combined numerous services that are offered by multiple apps in other countries. 1) Grocery Delivery: Rappi was initially launched with grocery shopping as its core functionality with a small number of supermarkets available on the App. Gradually the Company expanded into other areas and has struck partnerships with major players in the retail market. Two of Colombia’s largest supermarkets, Éxito and Carulla, are available on the App. 2) Food Delivery: Food Delivery was also part of Rappi’s initial launch, and that helped the company stand out, as the competition were focused on only one function, i.e., delivering groceries (Mercadoni), or food (Domicilios.com or Uber Eats). Rappi provided added value to its users by offering both services on a single app. 3) Mobile Money Transfers: Rappi’s payment service RappiPay allows users to transfer money from their accounts to other users by using their credit card or credits (RappiCreditos) on the App’s digital wallet. RappiPay is convenient to use and does not charge any transaction fees, unlike transferring money via bank, thereby increasing its popularity. 4) Errands: Rappi enables users to get almost any tasks completed through the App, whether it is delivering a package, exchange products, and even getting a 4th player for your FIFA game 5) Micro-mobility: In September 2019, Rappi entered a partnership with Grin, Latin America’s leading scooter start-up. Through this partnership, Grin users can rent scooters inside the App, allowing Grin to scale through the region with the help of Rappi. Rappi employs more than 50,000 Rappitenderos that each complete more than 30 orders per month. The couriers can work on the App as long as they wish and get paid per order. Many people with lower education can earn 2x the minimum wage prevalent in the country by working on the App. Rappi’s couriers are self-employed and make money through delivery fees and tips. This allows Rappi to avoid all employee-related expenses such as vacation days, pensions, and insurance. Apart from these services, Rappi offers more than 20+ functionality, such as delivering cash, buying tickets to a music event, over the counter drug delivery, and paying for vehicle insurance through the App. What Drives Rappi’s Success In the hyper-competitive App market where multiple providers are vying for your attention and money, success often hinges on finding unmet consumer needs or developing better solutions than existing in the market. Most importantly, once you have the customers hooked, it is of utmost importance to keep them engaged. Rappi’s success is not entirely dependent on technology. The App stands out by offering its services to the right people at the right time. With a laser-like focus on the user experience, Rappi has been able to solidify its position in the market. From selecting the right technology partner to investing in the right type of marketing strategies, identifying, and working on actionable insights, there is a lot of work in the background. Experimentation is the key: Rappi has continuously been working on improving communication with users. The experimenting and risk-taking endeavors have served them in gaining new customers and retaining the old ones. Add-on offerings: Rappi offers periodic discounts, offers, loyalty points, and additional offerings to increase the number of orders and ticket size. Regional Targeting: Latin America is a highly diversified market. What works in one region may not work in another. Operating in different countries, Rappi focuses on region-specific languages and terminology. Using data to optimize and enhance customer experience: Rappi utilizes data-driven insights to understand how their product experience impacts users. Analyzing conversion metrics has enabled them to comprehend the conversation better. […]

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