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Showing posts with the label Company Notes

How HelloFresh Makes Money | HelloFresh Business Model

HelloFresh - Delivering Meal Kits Riding on Complex but Efficient Supply Chain Hello Fresh is a meal kit delivery service that sends customers pre-portioned ingredients and step-by-step recipes so they can cook meals at home. Hello Fresh, which was founded in 2011, operates in several countries and has grown to become one of the leading companies in the meal kit industry.  How HelloFresh Works On the HelloFresh platform, customers can sign up for a subscription plan and select the number of meals they want per week as well as the serving size. Hello Fresh delivers a box containing fresh ingredients and recipe cards to the customer's door every week.  To ensure freshness and minimize food waste, the ingredients are carefully selected, portioned, and packed. The recipe cards include step-by-step instructions for preparing the meals, making it simple for even inexperienced cooks to follow along.  Hello Fresh provides a variety of recipes to accommodate various dietary preferences and

How PayPal Makes Money | PayPal Business Model

PayPal - Leading Online Payment System PayPal is a widely recognized online payment system that allows individuals and businesses to send and receive money electronically. It was founded in December 1998 as Confinity by Max Levchin, Peter Thiel, and Luke Nosek. Initially, Confinity developed security software for handheld devices but later shifted its focus to digital payments. In March 2000, Confinity merged with, an online banking company founded by Elon Musk. The merged entity was renamed PayPal, and it began to primarily focus on becoming an online payment platform. PayPal quickly gained popularity as a convenient and secure method for conducting e-commerce transactions.  One of PayPal's key features is its ability to link to bank accounts, credit cards, or debit cards, allowing users to transfer funds easily. It provides a user-friendly interface for sending money to individuals or making online purchases from participating merchants. PayPal also introduced a buyer prote

How Pinduoduo Made it Big | History of Pinduoduo

Alibaba (Taobao and Tmall) and JD was dominating the China e-commerce space and no other company was able to match their scale until a new company emerged with an aim to serve the tier 3 and 4 cities that remained underserved. It focused on perishable products and daily necessities to make sure the users have high purchase frequency and it was also their category of choice because of low competition. It growthhacked its way by offering group buying feature at too good to believe discounts. It took it to the next level by focusing on interactivity by making the app browsable for fun and rewards. The company’s IPO prospectus referred to the platform as mix of Costco and Disneyland, the pricing is the Costco part and the fun browsing is the Disney part. Pinduoduo built a recipe for building a social commerce platform that mimicked the way people shop offline. It took cues from the gaming world to entice users to spend time on the app. All these viral elements made Pinduoduo the largest e

How Food Delivery Apps Make Money

Third party food delivery is proving to be a tough business space with minimum option to differentiate, tight profitability margin and intense competition that is putting the industry in the process of more and more consolidation.  When Uber started and turned into something that people would use everyday, it became obvious that the idea of moving people from Point A to Point B with the help of an app would branch into Uber for other services like food delivery, groceries or any other parcel. The world of convenience economy was only about to expand. Like Uber, an app would connect merchants to consumers via riders. The app is a platform that help connect these three parties that are required to make a transaction and shipment. The space that was ripe for disruption in this convenience economy was restaurants. Most restaurants didn't have their own delivery logistics. There were only few exception that you can think of that had their own delivery logistics. They had so because they

How Etsy (The Company) Makes Money

Etsy is a specific category driven online marketplace that connects buyers and sellers. What makes it different is that buyers recognize Etsy as a marketplace where they can find unique products for their special needs. Here, sellers are mostly individuals who have built their expertise in different types of crafts. Buyers looking for gifts or looking for products that have some personal and differentiated touch on them visit Etsy. Etsy's top six retail categories include homewares and home furnishings, jewelry and personal accessories, craft supplies, apparel, beauty and personal care, paper and party supplies that contributed 80.0% of overall GMS (Gross Merchandise Sales) during the year 2020 (excluding face mask sales). After the acquisition of Reverb in 2019, Etsy also has presence in market for musical instruments. So, we can clearly understand what Etsy offers to its sellers and buyers. Sellers get the accessibility to millions of buyers who are looking for specific items f