From Gojek to "GET" with the management of brand startups in the Thai market.
The advent of technology creates new business opportunities. Food Delivery is a watchful business, with intense competition every day and GET is the latest startup to challenge the huge share of the Thai Food Delivery market. In the course of the NIA-SCB International Business Enterprise (IBE) course, Khun Korlap Suwatrangkun, Chief Marketing Officer of GET, came to talk about the penetration of the Thai market of a new startup with the parent company "Gojek" from Indonesia. Key principles for doing business and the future of the Food Delivery business in Thailand.
Why is it GET?
In Indonesia, Gojek comes from the word Ojek which means a motorcycle taxi. Which is the beginning of an app calling a motorcycle hire that is to solve the user pain point. Making Gojek a debut as a unicorn in ASEAN. And when Gojek expands into the Thai market with the Hyper Localization approach, it is believed that local teams make the best decisions. Thailand Team Led by Khun Korlab, think of a name that is easy to understand for Thai people and able to continue to market; therefore, being the origin of GET brand. And launching the first service GET WIN and GET DELIVERY. Before expanding the service GET FOOD and GET PAY.
With a high number of smartphones and internet access in Thailand, Khun Korlab; therefore, saw an opportunity to expand the market which was previously almost monopolized by the big players. Khun Korlab viewed that having a small service provider here, the user doesn't have much choice. The service charge previously was quite high due to a lack of competition. The advent of GET will help expand the market with the local Insights strategy.
GET believes that "we can make a difference"
Despite coming from outside startups but the key point of GET is understanding local markets. But it takes up to 1 year to research the field by talking to the motorcycle to understand the problem and coordinate with the government and related agencies to solve the problem for the GET WIN business legally. And when it comes to the Food Delivery business, GET FOOD creates a business model that helps solve pain points, expensive food delivery services, and cheaper prices.
However, having a foundation from an outside start-up has become a strength of GET because Gojek's technology has created a special service in Thailand. For example, Shuffle Card, choose to display food banners on the homepage of the app according to different segments such as time (morning/lunch / evening), location (distance), special festivals, restaurants that are partners / not affiliated. Etc. Which, for food delivery businesses in Indonesia and Thailand, is similar, most people like to eat street food However, the use of foreign technology has been adapted to the culture of the local country.
Attach importance to "partners"
The business model of the Food Delivery business consists of 3 main pillars: Merchant, Driver, and User. What GET does is take care of giving importance to all parties. There are concerns that the arrival of GET will make street food stores in trouble. But what happened is to help merchants connect the offline world and online together and expand the market. What's more, GET also provides useful information to stores such as users who order a lot of food, what users in each area like to eat? etc.
As for the user, GET has expanded the market by finding a new business model that caused the delivery cost to decrease. From the previous, the shipping cost is high because the user pays alone then change to shop / GET help pay some of the shipping fees. Next is the motorbike driver. The pillar is an important part of the business of more than 40,000 people. They also provide other benefits such as Family insurance. Opportunity to access loans, loans, etc. Importantly, GET drivers can withdraw money from Wallet and receive money without having to wait another 3 days, which allows motorcyclists to spin the money more fluently.
Finding Partnership, creating strengths
Another key thing that helps GET operations to become more efficient. Is to have a partnership in various industries. For example, SCB is a financial partner, providing payment solution services for Mae Manee's restaurant information to GET, including loans for motorcyclists. Telecom business partners also help support stores and drivers. Such as internet packages that are very important to the work of the drivers. Including alliances that are chain restaurants, providing alternatives for customers in addition to restaurants of small entrepreneurs.
The future of startups with the Food Delivery business
Khun Korlab believes that the start of startups with the Food Delivery business will change the market overall from the original focus on capital spending to attract customers to grow and create sustainability. By creating brand value by using technology, data to help reduce costs, increase operational efficiency, to meet the needs of most customers. In expanding the market, GET executives recommend that operators must look fully to see whether the cost of expanding the business is worth the return. There are many forms of business expansion, including vertical expansion, horizontal Expansion, and Market Expansion. Finding partners to help us expand our business is another option. All of us must be confident that this is a strategy that truly meets our business needs.