E-commerce

Ventures
The Best Possible Strategy
GrocerApp
Concept - GrocerApp

It enables users to order their groceries through its web/mobile app and have them delivered
to their doorstep on the same day.

In addition to groceries, it also delivers multiple categories including fruits, vegetables, and
meat.

Lahore, Islamabad, Rawalpindi

Market Analysis – Opportunities
Market Analysis – Customers

Individual Customers – middle class and the upper-middle class

Corporates – banks, companies and private agencies

Key Players Location Business Model Delivery Timings (Minutes) Minimum Funded
Order (Pkr)

GrocerApp Lahore, Islamabad Pure-play Multiple slots per day 0 Yes

Food Panda Shops Lahore, Islamabad, Karachi Drop Shipping 20 – 60 99 Yes

Hum Mart Karachi Pure-play N/A N/A N/A

Airlift Express Lahore Karachi Pure-play 45 - 60 200 Yes

Daraz D mart Lahore, Islamabad, Karachi Drop Shipping 4 – 7 days 70 N/A

Bykea Mart Karachi, Lahore Drop Shipping N/A N/A Yes

Al-Fatha Online Lahore, Islamabad, Karachi Click & Mortar Same / Next day 1000 No

Metro Online Lahore, Islamabad, Karachi Click & Mortar Same / Next day 1000 No
 New Entrants
Offline Retail outlets
Capabilities
● Logistics, Technology, Prices

Competitors
Buyers
Suppliers Uber, Careem, Cheetay,
Discounts
FoodPanda, Airlift, Metro and
Capabilities:
Network Effects Al-Fatah ● Consumer centric
offers

Substitutes
Offline Retailers
Capabilities
● Delivery time Checks,
Minimum order value
 Winner-Takes-All?

Network Effects Multi-Homing Costs Differentiation

Large number of users N/A Quality checks

drive a competitive service
delivery Timely deliveries

As number of users Order cancelation

increases the range of
categories offered on the Minimum order value
platform are also increased
to compete Easy Returns
More Fleets => More
Customers
 Business Model

Concept
Pure-play Model - Demand Side

Hub-and-spoke model - Distribution

Side

Competes on price - Bundling service

Products & Services

The Three R’s

1. Market Size - Considerable Reach

2. Availability of various categories - Considerable Range
3. Localized nature of marketing messages - High Richness
 Business Model

Capabilities

Logistics - Needs more scalability

Technology

Customer Support

Quality Assurance

● Same day delivery

● Minimum Transaction Value
● After Sales Customer Support
● Cancelation Policy
 Financial Model

Users: +100,000

Fleet Drivers: 50

Breakeven

Gross Merchandise Value (GMV)

 Long Tail Economics

Product Example:

Petcare
GharPair
Market Opportunity Analysis
Winner-takes-all Analysis
 Business Model – Top factors that are impacting
•Key Partners – Small & large Enterprises, Individual service providers , Payment processors, Investors
•Key Activities – Platform development & Management, Marketing & Customer Acquisition, Managing workers payout, Customer support

•Key Resources – Technology (App & website), Service providers

•VP – Customers(Min waiting time, Prices lesser than normal workers, Online payment opportunity, can track the plumber) Workers (Income opportunity, flexible
working hours or part time opportunity as well), Easy Payment Procedure, workers will get paid to be online even without work requests.

•Customer Relationship – Customer Support, Social Media, Review, Rating & Feedback System

•Channels – Website, Mobile App (Android, IOS)

•Customer Segments – Workers (People who are passionate and have the skill and want to earn money, who want to work as a part of business). Customers
(Those who want a cost efficient worker at their doorstep, who don’t own a worker and don’t wanna wait so long for the workers to come and resolve issues).

•Cost Structure – Technological Infrastructure, Launch events & Marketing Expenditure, Salaries of employees

•Revenue Streams – Subscription Package, Individual service providers, small & large enterprises, Different packages
 Financial Aspect

*1520 small enterprises offering plumbing services in Lahore – Revenue stream of 3M+
*1820 electrical services enterprises in Lahore – Revenue stream of 3.6M+
So 400M subscription based revenue annually - According to Lookup.pk

*All prices are in rupees

Projections
 Long Tail Economics

Long Tail – Variety in service choices, recommendations

With online retail and distribution – No scarcity/limitations
- Monthly subscription with unlimited access of customers to the enterprises. Less popular
services like cleaning, gardening, wall art as these are the characteristic of long tail.
 Ghar pair value chain Analysis:

•Gharpair will effectively align its business model with innovative operating practices to maximize
profits and optimize the experience of both the worker and the customer.
RateIt - Let the World Know
Concept

A place for you to review and recommend anything and everything.

Different sections for Music, Food/Restaurants, Clothing Brands, Movies/Tv Shows, Books and
Games.
 New Entrants

Network effects,
capabilities

Competitors
Suppliers Buyers
Instagram, Twitter, ESR
Content Creators, IMDB, Rotten Tomatoes, Low switching
Brands, Food Chains Pitchfork costs initially

Substitutes

Word of Mouth
recommendations,
built-in algorithms
 WTA Analysis

Network Effects Multi-Homing Costs Differentiation

● Dedicated network of ● Increased network, ● A one-stop for all the

specific segments. develops an inherent recommendations you
● A larger consumer multi-homing cost need.
base would allow a ● Developed profiles ● You can see what
larger number of ● Negligible additional your friends or people
recommendations, benefit from you’re influenced by,
hence accelerating substitutes think about something
growth and you’re interested in.
incentivizing people to
stay on the platform.
The Three R’s

1. The concept of a virtual social network - High Reach

2. Availability of various segments like Food and Music - Considerable Range
3. Access to a large number of recommendations and reviews, the ability to talk to reviewers
through threads, and a platform to voice opinions and critiques about various topics of interest -
High Richness
Expected Financial Value
Information Inherent scalability through the model.

Navigation Is improved through analytics.

Customer Technical issues and how-to guides.

Support

Logistics Application maintenance and entertaining sponsors.

Application Development and Utilization of Analytics to
Testing - Rs. 1,000,000 generate a space for
advertisements.

Month 0 Month 18

Month 12 Month 24

Revenue generation through PR Events for new releases and

sponsored recommendations launches.
by content creators and brands.
Long-Tail Economics

Sub-categories like Crafting Materials, Gaming Gear and FanFiction.

Rare but highly dedicated consumer bases.

Investment Decision
 Lucrative Aspects

Grocer App GharPair RateIt

● Huge market size - ● Considerable market ● High values of the

Growth Potential size three R’s
● Established Network ● Favorable WTA ● Possible WTA
and Infrastructure conditions conditions
● Low costs and Quality ● Convenient for ● Negligible logistics
checks ensure service users, hence and high financial
consumer retention incentivizing network potential in the long-
availability run.
 Challenges

Grocer App GharPair RateIt

● Small fleet ● Low incentive for ● Initializing the network

● Specific delivery time Service Providers ● Ambiguous revenue
● Less Facilitation ● Very uncertain generation
centers fluctuations in profits
in a long term
RateIt
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