Food Startups – where do we stand?

It’s been more than year to launch of my startup ‘bhookkad.com‘. Unfortunately, we stopped working on it for certain reason but the love and interest for restaurants business is still there. We started off with an idea to promote ‘outdoor dining’ rather than being another food delivery business. The prime motto behind this action was the investment owner makes in building that restaurant, handling it and delivering the best they can. A year ago, many startups entered into food delivery business and few of them have already closed and few are on their way to do the same.

food-startup-1

But today, according to me, scene is totally different. This scenario is not only related to food startups but all the startups that are present in the market. Take the example of ‘swiggy’, I totally blown away by their service quality. Recently, I used it twice in a same week just because they impressed me through their accurate delivery time and the order tracking visibility. But what about its future? When you analyze their business model in detail, somewhere in the corner it scared me as well as made me skeptical about its sustainability. Swiggy is logistics company delivering food from restaurant end to customer’s end with the mere charge of Rs. 30.

Is it really a good business model for company? It is good model but not sustainable. Think about top line and bottom line- top line is going to grow at very rapid pace but bottom line will grow at the same rate or will be the same. It’s just because the cost they are incurring and the amount of cash they are burning on promotions. It’s not the case only with swiggy but all the startups are doing the same.

My take on this is, until and unless you have your own product you can’t earn money or improve your bottom line. Look at Amazon, look at Flipkart or look at Hola Chef what is the common thing in all of them is their own products.

Happy Observations!

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