SaaS and marketplaces have both been individually praised in the startup ecosystem for their attractiveness as business models that reach scalability and replicability of revenues in a very short amount of time compared to other approaches. However, a new wave of startups is emerging leveraging the advantages of both models making it possible for these online businesses not only to quickly attain customers, but also to retain them, taking into account that churn rate is the biggest challenge for the long-term growth of every tech venture out there.
Something extraordinary is happening in the interception of tech & trade and it is emerging at an unforeseeable pace. Technology advancement along with rapidly changing consumer behaviour is creating an appealing value proposition and an extremely lucrative business in the face of on-demand marketplaces.
But despite the fact that the on-demand economy is the inevitable result of the new and younger generation, which is tech savvy and likes to get things immediately, the booming on-demand marketplaces are actually influencing consumer behaviour beyond early adopters to embrace the advantages created by this new model of trade.
This shifting behaviour among early majority because of the convenience of on-demand marketplaces sets an unprecedented pace of technology adoption that can only be compared with that of social networks. And while the previous decade was all about social networks, this one will definitely see the dominance of on-demand marketplaces beating the likes of big data, fintech & VR/AR.
A couple of months ago, Tom Goodwin from Havas Media wrote a notable article for Techrunch. Tom noted: “Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate. Something interesting is happening.”
Indeed, these online businesses, which also happen to be some of the most successful startups in the digital history with billions of funding and behemoth valuations, have achieved this status due to the way they affect consumer purchase behaviour.
The travel/hospitality industry has long been underestimated by investors mainly due to the reluctance of many leading players to adopt technology approaches similar to other sectors in order to improve margins or customer service. Indeed the travel/hospitality sector is considerably lagging behind other sectors where technology adoption and innovation is key to long-term success.
However, this is about to change. Actually, it seems it is already changing – in a good way, of course. According to a research by CBInsights travel startups have experienced 106% in exit growth on a yoy basis during the last 2 years – ranking 4th among other sectors such as Health & Wellness, Data Storage & Security etc.
When screening through startup pitch decks, one key factor investors usually look at is the size of the market where the business is operating. Let’s face it – building a great product that targets a small market is not what venture capitalists look for, neither should you as an entrepreneur. On the other hand, creating a service that through a stepwise G2M strategy can reach to a wider audience with market opportunity of $4B represents a lucrative opportunity that nobody would want to miss out. However, using market sizing as a tool for filtering investments can sometimes be deceiving for 2 main reasons. Continue reading 2 Reasons Why Market Sizing Could Be Deceiving
Ever felt as if you were just another guest at the hotel? Want a more personalized and exclusive experience? Then, you should be looking forward to staying at a hotel that uses Conichi.
Conichi is a CRM SaaS that helps hotels and restaurants better interact with their customers. Its aim is to revolutionize the hospitality industry, which from a technological perspective is significantly lagging behind other sectors. Conichi uses the Beacon technology, which is becoming widely popular as a contextual awareness solution for the retail domain.
I sat down with Max Waldmann, founder & CEO of Conichi, to discuss the product and the team’s plans ahead.
Everybody is talking about the Internet of Things phenomenon, where “interconnected embedded computing devices” are literally flooding the market and the Internet. Certainly, the IoT industry will be one of the key contributors to the uprising economy and will eventually account for $1.7 trillion globally in 2019, according to data by BI Intelligence Estimates. In addition to these impressive figures, it is forecasted that device shipments will reach 6.7 billion in 2019, which represents a CAGR of 61% for the next 5 years.