Business models and case study  of Foodpanda and OLA 



today we'll talk about Foodpanda their business model and how do they earn Like everyone is familiar with the business of foodpanda That it's a food delivery system Means they'll be around restaurants in the your locality and you can order anything from any restaurants at your home/work The need that they are trying to cater is that you don't need to find restaurants or go outside You can order directly from your phone. Ratings of them And restaurants with the best rating Now you can order food from that restaurant. He can pay according to the desired price. Basically he can find the food he wants to eat at an affordable price. That's why application was build So this is good for consumer Now let's talk about their business model How do they earn? See let's discuss their expenses The no. of restaurants they've tied up with They offer 20-25% discount to them If you are getting a thing in 100rs Foodpanda gets in 80Rs Or in 78 Rs It depends on their discoount Now foodpanda says They can give discount on that amount too. That's why some restaurants give discount and some don't Let's consider 20% discount only After this, when you open the application of foodpanda Their you are already getting 20% off. 20% off Why would you go to the restaurant? Why wouldn't consumer use it Obviously they'll prefer foodpanda Indirectly foodpanda tranferred the work of restaurants to them. and there were cafe who were in loss They offered surplus discounts Increased his sale and it was a win-win situation Here Foodpanda is offering you 20% discount Means no profit no loss. Right? No Once in while you'll get message where you'll get 15% discount. 25% discount. Basically everyday. If you don't receive any discounts. Add any food to the cart and delete it You'll get the message. So on average 10% more discount. Means 80rs and 10% of 80= 8 rs 72 total Now they sometimes charge for delivery and at some locations they don't charge So that delivery person get 40-45rs tip. It depends on the day And there are many employees. But if you opt their fast delivery Then you have to give 25 rs. Here again they took the loss of 15 rs. So how are they earning? Expenses of employees Website running cost Cost of building Biggest expense is in advertising You see ads on tv and banners Ads on Google adwords Facebook ads So if you order somthing from foodpanda worth 100rs after applying all the coupon codes. So Foodpanda spends 30-40rs extra on you Why and how? Here let's talk about ola and uber In india, cab wasn't famous People prefered auto Because they have this perception of it as expensive But after ola and uber, they offered free rides. People get used to it And people perception changed that if they can get 6rs/km in cab at the same price of auto. The rate of cab was 10rs. If you research on this, you'll get to know that in the past , rates of taxi was same(10rs/km) But ola and uber first brought awareness among public and created a need in the public that they can travel in ac cab. Same thing is applied by foodpanda. They are getting us addicted to order food from our home and we can compare the prices of food in one single application But i personally think In indian food market, consumer doesn't care If they get discount from foodpanda then he'll buy from foodpanda. But in future when their discounts are over. They'll go somewhere else. Just like ola, i have taken many free rides from ola. Now when their discounts were over People switched to other thiings. You'll always have options. Here You have one advantage. First mover advantage Does foodpanda have first mover advantage? Zomato is the same BUt foodpanda did create some differentiation But zomato is not offering much YOu'll see many restaurants with this tag zomato certified. But we never see anything of foodpanda. You'll see only this that foodpanda is connected with this restaurant but not certified. If you want to order at hom.e So this is the whole story that i shared with you after full research> You tell me , is this a profitable business or not. Will they be in profit in future? Answers of these questions are on you Okay friends, article ends here. I hope you liked it If you have any doubt or any confusion Do tell me in the comments section.



today we'll talk about ola and uber business model. I know you already know about them What do they do? they have a taxi business Ola is our indian based startup and uber is international So i'll talk about ola more and less in uber because we are indians And our audience is india centeric See if i want to start my taxi business Most important thing i need is taxi and a driver and from where do i get the money? If i invest money in buying taxi in the inital stage Ola says that they have around 5 lakh registered driver Now it means 5 lakh taxis , how did they do this investment? They came with a model that You need to have a driver and a car and we'll give you commission and you need to give us some percentage of the revenue This seems interesting We get to know that on some rides If we drive 12 hours then this much money this much incentive. and can earn around 1 lakh. Drivers got fascinated by this and some who were wise CA people What did they do? they put their own cars and hired an employee On EMI EMi of around 10,000 and hired an employee in 20,000 and he'll get 5000 incentive. and used to track their employees , this lead to a network of 10-15 cars and they earned thousands and lakhs from this Everything was going fine till now For drivers, this thing is good But ola uber give us discount coupons and first ride freea and 6rs/km Cheaper than auto How were they paying for this? Basically they were in loss. In the last financial year 2015, they beared the loss of 2300 crore. I'll tell you in more details. About their profit and loss. Salaries amount was around 381 crore. and advertising cost 437crore and cost on tech was 120 crore. What about the other expenses? SO they tried to analyse this In this financial year, they increased the percentage of incentives. Now 5 lakh people are linked with them That EMI trap What happened here People who used to earn 1 lakh, now they earn 35000 If they want to earn 1 lakh then they have to work for 24 hours. Which is not possible. What happened here, they hired their own drivers their own cabs. And they just need to give them commision and they'll earn profit. In this financial year, we'll get all the details of their profit and loss According to me Their loss margin has decreased In the initial stages People used to prefer auto than cabs And before auto ,people prefer auto Then metro came If you are getting a cab in 6rs and 3 people can easily seat in a cab Why wouldn't people use cabs? Now when people are tilted towards cabs One thing Economies of scale THere was a person who used to take 10 rounds of driving 10 hours and now he has work of 16 hours, so here he can earn more So ola and uber Brought a revolution where they tried to let people switch from auto to cab So according to me This is a very profitable business model In starting they did bear the loss of 2300 crore. it's a big loss and their valuation Decreased after they asked for funding. Why did it happen? because of the loss Now you'll see it's valuation will increase. Because it's loss is less. Now let's talk about some strategic decision Means they acquired some startup First they did in 2015 Taxiforsure Taxiforsure had a good marketing image They acquired them and people get to know about ola and uber. That was the time when ola and uber was highlighted in the eyes of people Because they bought taxiforsure and in the same year They bought the jio tag also Basically it's computer system No. of km and total amount All the software system was designed by jio tag GPS tracking and everything So they are getting ROI from the money they invested in 2015 JIO spent 2 lakh crore On the spectrum but They'll get the ROI from now> Okay friends, article ends here. I hope you liked it. If any doubts do ask me in the comments. and like, share and do tell me in the comments. What should be the topic of our next business model I am thinking OYO rooms I really like their business model. Because their way of earning is same as uber,ola Offering you discount and many things. Do tell me in the comments section About any topic you want me to cover


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