Home / Business / Food delivery is the hardest challenge in logistics. That’s why this startup went into it first

Food delivery is the hardest challenge in logistics. That’s why this startup went into it first

Food delivery is the hardest challenge in logistics.

with regards to food, Lahore has never held returned. The streets of Anarkali, vintage Lahore, or the busy M.M. Alam avenue and Liberty market never see a dull second. Jam-filled with the old and young, all trying to hit the cutting-edge meals hot spot – Lahore lives for meals.

It’s now not simply the commercial regions wherein you’ll notice the town’s obsession for meals. if you drive in any neighbourhood in the town, you’ll most probably come upon a delivery bike with a branded container attached to its returned, wearing meals for a person who known as a restaurant, or used their cellphone to pick a cafe or a local food dhaba, observed meals from a kaleidoscope of mouth-watering alternatives, selected a payment approach, and ordered.

One business enterprise serving that market is Cheetay Logistics, which operates cheetay.pk. The corporation commenced in 2015 with a simple premise: if they are able to discover ways to take care of food transport proper as their first product, they may be capable of developing the infrastructure and ethos to become a scalable tech-enabled logistics employer.

“food become proper as a start due to the fact all and sundry is ordering meals. food gave us the possibility to develop a robust distribution system and allowed us to teach our transport-men in actual-time because human beings are very fickle about food – there’s no forgiveness – human beings want their meals hot and on time,” says Ahmed Khan, CEO of Cheetay Logistics, in an interview with income.
“Our concept became usually to address food first as it changed into tough and rewarding at the equal time,” said Khan, a pro e-trade chief who has additionally led Daraz.pk and Kaymu.pk.
via e-commerce, Lahore has advanced a generation-sponsored atmosphere that has converted vintage strategies of buying and selling into smarter methods of ordering no longer just meals, however all varieties of items and offerings on-line. Pakistan has seen a consistent growth in organizations which generate cash by making humans’s lives extra convenient, and feature advanced processes that facilitate both the restaurant and the patron.

A restaurant this is indexed in a food-shipping organisation’s app and website will probably get extra hits, acquire greater orders, and generate extra revenue. The user could have the ability to select food from a number of eating places while not having to call every one among them, and will also possibly get the risk to avail a discounted provide.

E-commerce has allowed products to be available for a huge wide variety of people. It has also enabled human beings and businesses to agree with generation and make transactions on a regular foundation. The e-commerce industry, consistent with a file released with the aid of the country bank of Pakistan (SBP) says that Pakistan’s e-commerce income have witnessed a sharp upward thrust of 93.7% in 2018. The primary purpose behind the fast growth has been attributed to more net accessibility, and extended utilization of smartphones in the country.

Cheetay and the percentage of wallet

Cheetay Logistics got here into lifestyles in 2015 whilst it evolved an app to order and deliver meals on line. the net food-transport marketplace at that time was ruled via the Rocket internet-sponsored Foodpanda.

a part of the motive he decided to get into the meals enterprise became to maximise the share of pockets. “something your profits is, some thing you spend on, your proportion of pockets reveals what you spend on most out of your profits. Our guess is that maximum of the money is spent on food as a primary necessity.”

For a business that intended to offer customers with what they spent on or desired the most, Cheetay.pk, under the management of Khan, already knew what the purchaser wanted, and didn’t take plenty time to penetrate the marketplace. “The rough number that we’ve come to, is that we’ve cracked approximately 20% of the Lahore marketplace,” reveals Khan.
taking pictures 20% of a primary market in this sort of brief time is not any small feat. taking pictures a market that already had global players such as Foodpanda speaks volumes approximately Cheetay.pk.

“The concept became easy,” says Khan. “i used to be the CEO and founding father of Daraz.pk and Kaymu.pk, which later merged to shape a primary player in the e-commerce enterprise in Pakistan, and then changed into later received by Alibaba. They have been backed with the aid of Rocket net GMBH, so while that got here to an end, I realised that the 2 big gaps in e-commerce have been success and bills. I felt that till these two issues have been now not solved, e-commerce and virtual groups could in no way grow the manner they’ve in South East Asia, India, and the developed international.”

Having commenced in October 2015, Cheetay.pk has witnessed exponential growth. starting with an in-residence fleet of 15 riders, the organisation now has a committed fleet of over 50 motor bikes.

increasing from the food base

In 2017, Cheetay Logistics received an investment of $1.1 million in series A funding from excessive internet-really worth character buyers and mission capitalists based inside the US. It similarly raised $3.675 million in 2018, and introduced that it changed into venturing into other business segments such as books, healthcare, and groceries.

“Now we’re looking at the share of pockets once more, and essentially asking what’s your subsequent largest expenditure after food. We’re out searching out more customers. once we have those customers, we’re searching out as many things to promote them as we can, and provide a higher carrier, enhance their life-style, and give them nice products,” says Khan, speakme about his plans for expansion.

payments and achievement are the cornerstones for the corporation, said Khan, explaining the concept behind the company, and how it supposed to compete with present companies inside the identical enterprise.
The digital bills industry has been an evolving idea in Pakistan for the ultimate couple of years. There are accurate players within the marketplace in relation to bills consisting of SimSim, PhonePay, OneLead, EasyPaisa, and JazzCash. “while we began, on-line bills wasn’t a factor in Pakistan as it is now. So this concept is new in Pakistan together with e-commerce, however they seem to be heading inside the proper path as of now. So permit’s see which model is the maximum a hit, whether or not it’s miles the digital wallet, or the financial institution-sponsored pockets, or if the open wallet works better,” says Khan.

New entrants constantly have a plan of action to penetrate the marketplace. Cheetay targeted on doing matters others couldn’t, had been unable to, or unwilling to try.

The corporation does now not incur prices consistent with transaction when it sells books, or provides a container of make-up. “each sale that we do, we get a fee at the product, and we get a shipping price. So, we don’t hold stock, and therefore don’t incur any stock prices, or any carriage prices,” says the CEO.
the key to the employer’s potential to scale up, says Ahmed, has been tremendous unit economics. “We get hold of a certain percentage on every product sold from the dealer, and we fee a positive shipping charge to the patron. each transaction for us, has advantageous unit economics for us and we need to hold that, otherwise, agencies can’t run. You need to have superb gross margins. you could’t scale in case you don’t. in case you’re dropping cash on the gross degree, then each extra order will increase the loss. no longer a bargain,” he says.

Tackling opposition

despite the fact that there are new entrants inside the food-shipping business including consume Mubarak along with Careem and Uber that have announced their own intentions to step into this commercial enterprise, the food-delivery marketplace in Pakistan, and mainly in Lahore is shared by means of Foodpanda and Cheetay.pk. most restaurants do have their own web sites and deliver meals. but, human beings generally decide upon searching at other options which could handiest be discovered in on-line apps.

“What Foodpanda doesn’t do, is that it doesn’t get you Aylanto, due to the fact Aylanto does not have a address them, or it gained’t supply outdoor a positive radius. We, however, can get our customers the whole thing,” says Khan, as he talks about how his business also merged the concept of an errand provider with e-trade and logistics.

Cheetay Logistics knew exactly what it had to do to show clients far from its opposition. “We realised that Pakistan is a growing market, and until we do the success and logistics ourselves, we would no longer prevail here,” says Khan, as he explains how using online economic payments turned into key to allowing a higher and more seamless experience for clients.
talking about Cheetay’s essential opposition, Khan says, “proper now, it’s foodpanda. due to the fact we’re normally in food. And we ought to face competition from upcoming players in this enterprise. So, whilst we launch a couple of classes, we’ll have to go against the likes of Daraz and OLX.”

E-commerce, transport companies, and even ride-hailing have a commonplace problem to remedy – a flaky digital payments system which can flip the consumer away within a minute, that is why, Khan believes that the individual that provides the perfect payments answer, will win the maximum client.
“lots of those people are seeking to build what we call the notable app now. where there is one app and it is easy to do everything through it. Order a taxi, order meals, pay the gasoline invoice for instance how it’s miles in China with the WeChat,” he says, talking about capacity competition from present gamers, and similarly adds, “It’s the equal hassle, every person has their personal method to it. maybe someday SimSim or EasyPaisa will also launch a commercial enterprise inclusive of ours, so we just should be equipped.”

The agency is, in fact, in a notable function to allow less complicated methods for consumer to pay. It has a cell fleet that also can act as an ATM. for instance, whilst you visit deliver food, the shipping-guys can ask clients whether they would love to top-up their virtual wallet, deposit cash, or withdraw coins. “For us, it’s a very flexible use of our fleet”.

protection and data privateness

The 12 months 2018 noticed cybersecurity explode and come to the surface as one of the most important troubles going through companies international. fb were given entangled in the Cambridge Analytica scandal and the eu implemented its personal protect against cybersecurity and to protect records privacy – GDPR. Careem faced a cyber attack where hackers were given via the encryptions on its servers, making customers’ personal and confidential data available. The Pakistani banking enterprise faced embarrassment while hackers stole hundreds of thousands from several business banks.

groups along with Cheetay.pk which additionally hold clients’ non-public facts consisting of cellphone numbers and credit card records, need to enhance up their safety, and constantly improve their protection systems to guard against possible cyber assaults.

“Our largest funding, if you test our balance sheet even today, is era and safety,” claims Khan. “We’ve spent a variety of cash, on effective device and safeguards. Very powerful piece of tech. Very robust. We use Amazon merchandise. Our main code is in Python, it is very secure. we have brilliant engineers running with us. We’ve constructed our era via Arbisoft, which might be one of the best engineering groups inside the u . s . a .. we have additionally come beneath grievance for spending a lot on tech, but as you are saying, it’s miles the want of the hour in this point in time. And we preserve strain-testing it, and asking ourselves if our generation has the potential to scale.”
because, even whilst you positioned a new lock for your door gate, the thief will find a way to break it. things maintain changing and you need to preserve designing new safety structures with time.

Iterating into the destiny

Cheetay Logistics has up to now gained proportion in a market with one dominant participant, but keeps to iterate its commercial enterprise version, and at some point will come up in opposition to other, even more well-financed competition. “that is some thing we’re very cognizant of, and we’re very cautious that we live 5bf1289bdb38b4a57d54c435c7e4aa1c at each step.”

The actual take a look at for the agency can be to stand incoming competition along with UberEats and Careem – that are larger players and understand the dynamics of this market nicely enough, have tried and tested strong distribution and bills structures backed by means of generation and a robust logo photograph.

“Necessity is the mother of invention”, says Khan. “We use generation to improve our agencies, and improve the lives of our clients. We don’t forget ourselves a tech employer. technology makes our lives easier, and reduces prices. we are devoted to the usage of generation to resolve all our problems. So, we’re experimenting with electric motorcycles with more than one agencies, with the intention to reduce our costs, render the transport men to power at extra handy speeds, and also, essentially, try to be higher for the environment. So, we are able to adapt,” says the constructive e-trade veteran.

Check Also

Federal govt proposes sharing

Federal govt proposes sharing expenditure with provinces

Federal govt proposes sharing Expenditure sharing required to offset tilt of sales shifted in the …

Leave a Reply

Your email address will not be published. Required fields are marked *