Everyone talks about building an entrepreneurial culture. Easier said than done.
We’ve been hiring ex-entrepreneurs. Culture comes from people more than slogans!
#buildingculture#culture
@b50 Online Sales via Aggregators is not counted here and those are at a lower contribution margin. Commissions and other deductions reduce the CM. In today's day and age, online is unavoidable
If the 1000 includes online orders, the breakeven and payback math is way off.
Franchising productively aligns incentives and divides labour. It works well for distributed operations
Very well put by The Economist (https://t.co/zsuW3cQT9p).
With close to 400 entrepreneurs working with Kouzina, we are big believers.
@refsrc We have partners running our brands across T2/T3 cities. From Dibrugarh to Eluru to Cuddalore or Roorkee.
Consumption is big across India. It is just that consumers lacked options. Floodgates open once you create good branded options.
@madhavchanchani@vijayshekhar This is brilliant. 7 years into this journey, I am absolutely in agreement. Having this play out in my previous avatar too.
Staying power >> Speed.
"A picture is worth a thousand words"
This is absolutely relevant in the world on online delivery. Descriptions are fine print, no customer reads them. What you see is what you should get! Great realistic photos win customers in the world of food delivery.
@ravihanda IMHO only 5-10% VC Funds return capital to LPs adjusted for hurdle rate. That should answer your question. Not data backed, but it can be validated.
@kawal279 They say McDonald’s became huge during the early days partly because clean washrooms. People stopped for the restroom in new places, trusted the experience, and ended up buying a burger too.
@rajeshsawhney Distribution is God. Distribution creates a brand. That is music to my ears.
We have done exactly that to an industry that was once close to you - F&B! Scaled multi-brand cloud kitchens through a distributed network of partners.
@Ajahagirdar We’ve been seeing this play out in F&B for a few years now. Consumption across Bharat is big!
Us folks from the metros have been looking at it through tainted glasses all along
"Swiggy/Zomato users order roughly 3.5 times per month, while DoorDash users are closer to 5.4 times per month"
Most of the additional orders due to increased frequency will accrue to larger players with a presence across India. Kouzina is in a good place and has good company!
Last yr, Swiggy & Zomato delivered 150 crore food orders to our houses
Exactly 10 yrs ago, this category was nascent - Swiggy had raised a $35m Series C for its full logistics model & Zomato had completed its Series G making it a unicorn
Even today, Indian food delivery has headroom. Swiggy/Zomato users order roughly 3.5 times per month, while DoorDash users are closer to 5.4 times per month.
To summarize: Zomato is the better food delivery business today. Swiggy is the more interesting product-innovation story. Both deserve credit. This category is still compounding.
PS: I am expecting impatient readers to comment "what about service quality?" - these are metrics mere mortals like us cannot access. Reviews, Comments & personal anecdotes highlight edge cases (1%) which aren't representative 😇
Discl: Views are my own. Shared for informational purposes only. DYOR. This post is not financial advice. I am a shareholder of Eternal. Family & affiliates may hold shares of Swiggy directly or through MF holdings.
Swiggy v/s Zomato - which is a better food delivery business?
This question has been playing on my mind for a year now.
I studied the last 3 yrs financials of both companies to find the answer - the data shows that:
> Zomato has 37% more orders
> Zomato has ~39% more monthly transacting customers
> Zomato has ~2x Food Delivery EBITDA
The answer is clear:
Skin in the game matters. Creates high agency. Agency is what drives progress.
“Agency is significantly more powerful and significantly more scarce [than intelligence].” - Andrej Karpathy <1/N>
350+ partners with skin in the game drive Kouzina forward.
We also have 8 ex-entrepreneurs on our core team. This has been our biggest hiring unlock.
Hiring ex-entrepreneurs. Someone who has been contrarian. It has made a big difference at Kouzina! Should work for others too!