Thanks to technology and the Internet, we can schedule almost everything in advance – emails, payments and even social media is catching up! So why not order our meals in advance too!
Faasos Food Services Pvt. Ltd started off as a fast-food restaurant has now built up a considerable online market for its food delivery service. The start up is now planning to start selling daily meals ordered in advance from January.
This decision follows the start up’s recent INR 200 crore funding. Faasos is planning on piloting the service in three cities and has locked down on Gurgaon with a decision pending over Pune, Mumbai and Bangalore.
Faasos anticipates that this move will rope in customers with the lunch, dinner, breakfast and snack options at a nominal rate. Also, the existing customers, who transact on the site or app at least 5 times a month, will double their engagement and would translate into a 25% increase in revenue, according to Jaydeep Barman, co-founder and chief executive.
“With Faasos Daily, the prices will be lower, hence we will make less money out of these orders. But, they will be delivered in a processed manner as compared with on-demand delivery and we can dispatch four to five meals at one go, which brings the delivery cost down. It is a trade-off between gross margins and cost per delivery,” LiveMint quotes Barman.
Faasos is planning up this new service at time when investors are rethinking their financial aids as a result of which many start ups hav shut shop.
Also, the enterprise is entering a space that already has many players. Many individual businesses like Bite Club, Yummist, Bhukkad and Eatongo are already catering to the tailored needs of their clients.
Moreover, the format of ordering food in advance may be more fruitful for tie-ups with corporate bodies and not individuals considering an individual’s requirement can be irregular and nifty.
But looks like Faasos is ready to take the leap. “Usually, if you have a huge infrastructure, you have to make sure that you utilize it in the maximum possible ways.
“If you end up being a specialty player, your kitchen is not fully utilized unless it is a heavily specialized kitchen like Dominos,” said Rutvik Doshi, director at Inventus Capital Partners, a venture capital firm. “Faasos has the capital and the reach, so why not cater to different needs?”
Sure! Because real time, what’s that?