Published on : Aug 05, 2015
A string of food start-ups in Europe is using technology to resolve supply chain and logistics issues could emerge as the next unicorn in the global landscape.
Restaurants have been delivering food to consumers’ home since decades, however this operations in this sector is now disrupted by a spurt of new technology start-ups aiming to eliminate the pain-points for consumers and vendors alike. Investors believe the new category of technology business will soon spawn billions of dollars companies across Europe to be called as ‘unicorns’.
Sarah Boumphrey, who is the Head of Strategic, Economic, and Consumer Insight at Euromonitor said that the new technology is driven by the convergence of multiple trends comprising frugal habits spurred by recession, increased penetration of smartphones, convenience, increased availability of latest technologies, and home increasingly transforming into in-house entertainment center (again driven by recession). Boumphrey said that the launch of the novel applications marked the way forward for forthcoming generations.
Danish start-up – Just Eat that was launched in 2011, was one of the early pioneers of this sector. The success of the start-up aided its debut in the London Stock Exchange almost 16 months ago. This is a web based service that offers consumer secure online ordering and payment options and also allows them to aggregate menu. The model was then echoed by other companies such as the Berlin-based Deliver Hero and Dutch-founded TakeAway.com.
These companies are poised to grow exponentially, since they help resolve complex issues witnessed by independent restaurants across Europe, said Alessandro Casartelli, who is Vice President of GP Bullhound, the tech-focused investment bank.
However, the order is processed through these companies online, albeit. But after it has been processed, it is back to square one to old model wherein restaurants still needs to hire someone to take the food to the consumers physically.