Loved Swiggy! Another advantage of the app was that it built multiple (1000+) cloud kitchens that help small mom-and-pop dining businesses to open without capital investments. Also, Swiggy is trying to solve for the delivery fees that most customers are deterred by by offering monthly subscriptions (Swiggy Super). This makes the user more sticky and reduces the impact of multihoming.
The concern, as you mentioned, is that Zomato and UberEats are working together now. That expands their market share immensely with Uber (probably) having more money to burn. Zomato can also build great restaurant relations since it has its own wholesale arm that supplies ingredients and runs successful loyalty programs (Gold). It seems like Swiggy will lead in the low-end market and Zomato captures higher-end, resulting in low margins for Swiggy in an already unprofitable industry.
Love the platform and the article! I did not know about Etsy moving into large-scale manufacturing. This will definitely be a blow to users who use the platform to buy unique items not found otherwise. I agree that it will not hold much ground against Amazon if it continues down that path.
One other growth path could be to expand globally. I don’t believe they have operations outside of the US. Mixing cultures together, exposing these interested users to different handicraft artifacts from around the world might keep them engaged and provide the growth Etsy seeks. If expanding is not an option, I agree with London that they should separate the brands.
This was a super interesting read! I found their relationship-building approach with delivery and restaurant folks very unique and something to try in other e-platforms as well. In an attempt to avoid the race to the bottom like in most other food-delivery platforms, relationships will be key in maintaining market share.
Cross-side network effects are the strongest here. Customers can drive people onto or away from the platform. Given their standard revenue streams with added services, I wonder if they are putting a strain on their finances for the long term. If Uber decides to slash delivery cost down to zero, most customers will try to order there (multi-homing and price-comparisons). How is the company approaching locking-down customers?
Interesting read! While in some ways, it makes me uncomfortable, but it seems to be a winning idea for simple and common diseases. One advantage I do see is easier communication, especially for reproductive ailments that a lot of people are uncomfortable sharing in person. One thing I am wondering about is the danger of patients not being able to communicate their needs. The only sense that the doctor can use is visual inspection (might not be as clear on video call, but ignoring that). How do other elements of touch, breathing, temperature come into account? How is the company making sure that the digital process is not abused to get unnecessary prescriptions? An opportunity I see for this technology might be outside of the US where regulation is not as harsh. A lot of rural places in other countries are in desperate need of doctors who are unable to reach them. This could get them help, even if cursory and create a new market for the medical world all together
Great insights into the various levers Macy’s can use! As we evaluate how digital can play a role in bolstering Macy’s into a promising future, I feel experience is the biggest piece that it can influence to beat Amazon. Inspiration can be taken from the beauty and eyewear industry. Investments in AR have pushed these industries ahead in providing virtual trials without having to go to the store. While this might be a technological challenge right now (as was for beauty a few years ago), building features for customers to try out different products on their body types might be a differentiation. Easier alternatives could be more seamless integration on the online and offline platforms. Sephora uses beacons in its stores. These devices emit notifications to customers’ phones informing them about latest offers, products that are available near them. Reminders can also be sent for products that are added to your cart on the app. Opportunities like these would help create delightful experiences for customers and keep the brand top-of-mind.
Interesting blog! I really liked the connections you have drawn from millennial life that explain why grocery delivery might be the need. But this demand has existed for quite some time and the reason that other players have moved away from it is because the economics of the business have not yet worked for anyone – including Amazon. It has captured a lot of the market in urban areas for sure, but it is at a huge cost. It would be interesting to see what cost optimizations they can make and how much volume they would need to hit to stop relying on Amazon’s other businesses to keep running. Drone-delivery might be an answer!
Thanks Krish! I would want to explore a little more as to why PayTM specifically could take advantage of the crisis and not other existing online payment platforms such as Freecharge. How was it better positioned to grow almost overnight?
Responding to Sneha, I do think a part of the answer lies in the funding that PayTM has received, especially the backing of Alibaba. PayTM is trying to replicate Alibaba’s model by trying to become a platform more than a product today and is diversifying into various industries (hotel bookings, online retail, banking services, investments) that can keep the user hooked onto the app.