Uber like Business Model
- Company is an aggregator which is similar to business models like Uber & OYO Rooms.
- The company has the platform which is much more efficient than the brick & mortar business model.
- The company is addressing the following problems with traditional business model and hence this industry is ripe for disruption:
- Inefficient and very high costs and wastage of warehousing and inventory.
- The rate of obsolescence is high resulting in hard to sell inventory.
- The completely un-organized industry. The limited reach of the traditional distributors and distribution system.
- The problem of returns and collections that is ingrained in the retail distribution system
- The company has tied-up with major e-commerce players like Amazon, Flipkart, etc.
- Recently the company has expanded its capacity and hence the growth from here on can be steep.
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