What food delivery companies can learn from Netflix

It’s in the news today. Ola, India’s largest on-demand taxi service, has acquired FoodPanda India (from its parent company Delivery Hero) in a stock-swap transaction. FoodPanda is in food delivery business (like GrubHub in US or Delivery Hero in Europe).

Ola’s Founder and CEO said the usual acquisition-related things in a press release.

I’m excited about our partnership with Delivery Hero as we team up to take Foodpanda India to the next level. As one of India’s pioneers in the food delivery space, Foodpanda has come to be a very efficient and profit focused business over the last couple of years. Our commitment to invest $200mn in Foodpanda India will help the business be focused on growth by creating value for customers and partners. With Delivery Hero’s global leadership and Ola’s platform capabilities with unique local insights, this partnership is born out of strength.  ...  Read the entire post →

Don’t go where the puck is going

Making predictions about future is more than a fun past time. Gartner, Forrester, and many other research companies justify their existence by predicting where technology industry is going. Other organizations (like PwC, below) once in a while go crazy and release predictions decades ahead of now.

Do we even know if these countries will remain by 2050? (original source)

Such long-range predictions are ironic because we can’t even get short-range predictions right. For example, from this news report:

While projecting a more optimistic picture of the global economy, the International Monetary Fund (IMF) on Tuesday slashed India’s growth forecast by 0.5 percentage points to 6.7 percent in 2017. ...  Read the entire post →

Revenue requires investment, profit requires creativity

The purpose of a business is to generate over its lifetime a higher return for its shareholders than what they would have gotten by investing in risk-free options (such as government bonds). This is a slightly technical definition but an example will illustrate what I mean.

Imagine there is an entrepreneur with a business proposal and he requires a $100 of investment for it. He reaches out to you and pitches his idea to seek your investment. To make a decision, you’ll probably analyze and estimate how much return you’d get in return of money you give to him. If you usually get 6% interest annually in a savings bank account, you would expect a higher return from the entrepreneur (given there’s a risk of losing your entire $100 while your money in the bank is virtually risk-free). In fact, you’d expect an unjustifiedly high rate of return because like all humans you’re risk averse and hence demand more upside than what seems fair. Absurdly high expectations is what makes entrepreneurship so hard.  ...  Read the entire post →

Singapore’s foundation and lessons for entrepreneurs

Singapore became the independent, modern nation that it is today on 9th August 1965. The history of how the tiny island-nation became a significant force in Asia is a fascinating one. Its GDP per capita (PPP) is number 3 in the world and it has the highest number of millionaires per capita in Asia. Yet the country is smaller than Los Angeles in size and its population is half of of Delhi.

How did this change happen?

This article is the first half of the story of Singapore’s growth and how it became into one of the richest nations in the world. I will examine what historical events created conditions for modern Singapore’s founding Prime Minister (Lee Kuan Yew) to do what he did and what lessons Singapore’s pre-independence history has for entrepreneurs starting companies. A follow-up article will explore post-Independence policies of Lee Kuan Yew that transformed the nation (subscribe for updates to know when that post comes out).  ...  Read the entire post →