Within four years of joining the prestigious Boston Consulting Group, Francesca Chia rose from an associate to a consultant taking on a practice revolving around business models.
In 2013, she noticed that how time constrained people felt, putting off errands to avoid the hassle. It was then that the idea for an on the go service came to her and GoGet was born the following year.
When did you start and how is the traction so far?
We started June 2014 and now cover Penang and KL. The traction so far has been overwhelming. We have continuously seen growth m-o-m and the momentum is taking over our operations. We are finding our internal processes break every 2-3 weeks and we'll need to restructure new processes to maintain our quality as we grow. Since we started we have ground our GoGetters to thousands and jobs have even doubled in the last month! We find once users have posted their third job, they become extremely sticky. Therefore a lot of our efforts are focused on making users repeat to their tipping point.
Why Kuala Lumpur of all pilot markets?
Undeniably it is the city that all co-founders grew up in, its our home ground and therefore with the competitive edge we leveraged off that to understand the market as fast as possible. fortunately enough, KL does provide to be a great breeding ground to train us and create a business around a city that has grit and pains, learning how to navigate that will only make us stronger for other cities in the region that has similar grit and pains or even less.
What is the core need that you're solving?
On one side of our marketplace we are solving the pains of doing things. These are specifically not having enough time during your busy schedule, not having transportation to get around or even not knowing where to go to get what you need. All of that coupled with the pains of not enough parking, traffic jams and long queues, it makes getting things done frustrating. On the other side of the marketplace, we are solving the problem of part time opportunities. Today the part time opportunities are not attractive, from low minimum pay, to long shifts and having to wait to be paid at the end of the month.
GoGet believes in connecting people to create opportunities. We connect busy people, to someone trusted in the area, called "GoGetters", to get things done for them and earn money at the same time. GoGetters can pick up your lunch while you are busy in a meeting, buy a surprise gift for your loved one, shop for groceries for stay at home mothers who can't leave their babies at home, or even deliver flowers for a florist to their customers. Now busy people or businesses have instant access to a pool of trusted helpers in the area, there are priority passes to long queues and businesses have access to on demand pool of reliable dispatch. For part time seekers, they earn higher, get paid instantly and they are their own boss.
How much of your own money have you invested? Does the venture have any debt?
We have been very lean from the beginning, our initial investment that kept us going for more than 1 year was extremely low and we are proud that its gotten us to where we are. This has also pushed us to think about how to be more efficient with our fund use and to think about how to maximize our efforts everyday. The venture does not have any debt.
How is your service different or better that others solving the same problem? Is there anything proprietary?
We are the only player that does the following:
- Our community is unique - the way we bring on demand and supply differentiates us, our GoGetters are stay at home mothers/ freelancers/ students and that makes the interactions completely different.
- The way we train our GoGetters is proprietary - we are able to scale and maintain quality of independent contractors that deliver a service that is like no other. Our GoGetters speak English and can interact with our users in a meaningful way
- Our platform is in house, our tip and soon to be matching algorithm are proprietary to ensure more effective and efficient matching mechanism
- Highly data driven - unlike platforms that only collect SMS, our platform is able to collect multitudes of complex data that we can analyse and drive our user engagement in a level that is highly targeted
- We are the only player that can do on demand 30 min salad lunch delivery in the city center, and on demand dispatch within 1 hour
- One app for all - we can do dispatch, food delivery, grocery delivery, personal shopping and even part-time jobs like distributing flyers and conducting surveys.
- Our supply is mixed - unlike other players we have supply on bicycles, motorbikes, cars and trucks.
- Freelance model - cost structure is lower than all other players, where our GoGetters are independent contractors to GoGet, that are verified and screened.
What's the economics of the business?
For individuals, we always focus on ensuring that we save their time with the lowest cost as possible. Our aim is to ensure that people can get extra help at a reasonable price. lets take for example buying groceries. we work to ensure that If the individual were to get a GoGetter to do it for them, that it is cheaper than their value of time if they got into their car, parked, shopped and drove back, including their fuel, and parking cost. As long as we can strike that, its something that busy individuals jump at because its much lower than their value of time.
For businesses, we save one of our merchants average 50% of their cost monthly if they were to outsource to us than to hire in house. This is because the merchant does not pay for the under-utilised hours and is able to have fluid resourcing for peak hours. Instead of always having 10 runners, they can have 10 show up for just the 2 hours and then drop it down to 1 after that.
For GoGetters, they earn about average 3 to 5 times the minimum pay per hour.
How is the team split up?
Our team is split between technical team and business team. We own our platform and tech team is extremely important to us, therefore we are continuously looking for build our capabilities and hire top talent. Our business team consist of a very strong operators, sellers, marketers and recruiters.
When is the venture going to break even?
We believe in running the venture with strong fundamentals, and hence are focused on growing our revenue month on month and scaling our processes to maintain cost while we gain larger reach and capabilities. We started collecting early this year and will also prioritize payments on our platform soon. Fundamentally, we look at becoming profitable within a reasonable amount of time.