- Tuesday December 19th, 2017
The Daily team finds next investors
Two other funds, Alfabeat and Zernike Meta Ventures, have invested in Daily, a deliverer of take-away meals modeled on the British Deliveroo, which has been operating for over a year. The company’s ambition is to become a leader in the Central European food delivery market.
During the recent the trends for making orders in restaurants have changed. Today next to the ever so popular, but no longer so common phone orders, there has been a development in the use of on-line platforms. However, despite the growing popularity of such services it may soon turn out that even this solution is insufficient to meet the basic needs of those consumers who value not only comfort of the actual order-making process, but also the delivery time.
– ‘Currently servicing all clients who order take-away meals by one of the staff members in a specific restaurant that provides delivery is still popular. This, of course, is reflected in the time necessary for processing the order. It frequently happens that clients need to wait over one hour for their meal. For the client it is unattractive, and for us – unacceptable. The alternative comes from Daily, who provides a fully integrated logistics: we are responsible for all actions related to taking the order and delivering it, and the restaurant staff for preparing the food. This model has already been implemented in other countries. We can already see the situation will be similar here,’ informs Nicolas Jedraszak, one of the founders of Daily.
Jedraszak is an experienced businessman; he is also the co-founder of a programming company called The Software House, which was ranked as one of the top companies in the Technology Fast 50 Central Europe ranking held by Deloitte. Moreover, for more than three years he managed an on-line grocery shop Frisco.pl.
Presently Daily cooperates with hundreds of restaurants all over Warsaw. The average time for processing the order by Daily is 37 minutes. The result is quite good, but the creators of Daily aim at improving it by using self-learning predictive algorithms. The data about the couriers, restaurants and clients, including the localization and the availability of deliverers, the time necessary for the restaurant to prepare the meal and other factors that influence the level to which clients may be interested in the services, such as the weather conditions or the time of day, are analyzed in real time. Based on the information the orders are categorized in such a way as to optimize the work of couriers and in result also improve the efficiency in logistics and ensure increased profitability of the business.
Up till now Daily has obtained financing from several private and institutional investors. Recently two other funds joined the list – Alfabeat and Zernike Meta Ventures. The current achievements of the company which records a monthly double digit rate of growth in the number of orders, encouraged the funds to make their investment. The obtained finances will be used for developing predictive algorithms that define the number of orders, optimize the process of delivery and the automatic management of orders.
– ‘Although Daily has been operating only for a year now, it is developing the model of integrated logistics in deliveries very vibrantly in our market, taking responsibility for the whole process from making the order and taking it by a restaurant, to delivering the meal to the client who placed the order. An experienced team and the freshness of the project fosters the dynamic development the company has been going through,’ says Bartosz Lipnicki, Managing Partner in Alfabeat and the Daily project co-ordinator.
A developing market of food deliveries
As results from the global forecasts, the on-line delivery market will continue to grow globally until the end of 2018 at the rate of 25% annually, and in the subsequent years at the average rate of 15%.
Currently there are several companies in the world which offer this type of services. In the United States these are e.g. GrubHub and DoorDash, both of which specialize in food deliveries, as well as Postmates, which delivers not only meals, but also other goods. Europe also has a few players, among which the dominant one is Deliveroo – a company which originated in Great Britain, but is also present in the Netherlands, Spain, Belgium, France, Germany or Italy. Moreover, it is also expanding its operations outside of Europe, winning clients in such places as Australia, Singapore, Hong Kong or Dubai. Scandinavia, on the other hand, has a service called Wolt, which is currently offering its services in the countries lying over the Baltic Sea. In this map our region is still undeveloped. And this is the area in which the creators of Daily and the investors see potential.
This does not mean, however, that there are no competitive operations on our grounds. In Warsaw itself, an international player appeared alongside Daily in 2017. UberEATS is a solution implemented by the controversial brand known for providing services in the field of car transport (Uber).
– ‘Obviously we are observing what is happening in the market. However, we do not think that UberEATS poses a threat to us. We have seen in this sector a few similar situations in which there were other local services next to a global service. Very often it is these services that win with the world giants thanks to the level of the provided services, and they are the ones to gain the clients’ trust, which is most important. This distinguishes Daily in Warsaw: we are very particular about caring for the quality of the offer and of the service’, says Małgorzata Sitkowska, the co-founder of Daily.
Daily is the third out of over a dozen companies which Alfabeat will invest in as part of the BRIdge Alfa programme run by the National Center for Research and Development. Alfabeat is still looking for other interesting R&D projects. The projects can be submitted by filling out an on-line form at www.alfabeat.pl.