- On-demand delivery dominates the take-out food market and is expanding to other industries
- Millennials are leading the shift as businesses adapt to new consumer opportunities
- GOLO oﬀers its users lower fees and faster service by anticipating market trends
Urban living is strenuous and dynamic, especially in a time where most things are done “on-demand.” Customers have tremendous autonomy when it comes to their purchase decisions, especially with the advent of popular delivery apps like Uber Eats, Skip the Dishes, and Foodora.
Since small to midsize food providers can't always accommodate a large volume of delivery orders, some of these apps have their own delivery staﬀ that act as middlemen for B2C transactions, as part of the expanding gig economy.
But, what does the rise of the delivery app entail? Modern society’s migration towards universal convenience has spawned a new generation of consumer-level personal courier services. The shift towards minimizing errand time has led to an incredible boom in on-demand culture. Why go through the hassle of picking up food when it can be quickly delivered?
People can do just about anything now, and they can do it instantly – why should having lunch delivered to one’s door be any diﬀerent? Whatever the cause, it's clear that the early adopters have predominantly been Millennials. In recent years, high schools have even had to adjust protocol for the hundreds of delivered meals brought on campus during one single lunch hour.
However, instant delivery doesn’t end here, as the standard for service has evolved, and so have buying habits. When these Millennials enter adulthood with more disposable income, an expectation of fast service will be ingrained into their lifestyles. Being accustomed to this translates into further profits for the delivery app market. Currently, lifestyle apps represent big business. While the bulk of these apps are food delivery-based, the potential to incorporate other services is enormous.
So far this year, revenue in the Canadian online food delivery segment accounts for approximately USD$2,004 million, which is drastically higher than restaurant-to-consumer delivery with a market volume of USD$1,345 million. With a spike in on-demand food delivery, revenue in this market segment is expected to grow at a CAGR of 10.2% until 2023.
With food delivery being synonymous with on-demand apps, certain inventive companies are diversifying their strategies to create a seamless pick-up/drop oﬀ experience that goes beyond just food.
Taking the delivery lifestyle further
One of these innovative companies is GOLO Mobile Inc. (TSXV: GOLO). GOLO is a Montréal-based technology and delivery services corporation, which has developed a ground-breaking mobile technology that facilitates seamless delivery and pick-up of everyday items from local merchants. This includes everything from food to flowers, to over-the-counter drugstore items, all at users’ fingertips.
This versatility amounts to an amplified range of services few lifestyle apps can match.
“We are disrupting the market by giving our users what they need, when they need it.”
— Jean-François Noël, CEO, GOLO Mobile Inc.
When GOLO’s operations launched in 2015, the company specialized in pick-up and delivery for stadium events. If a user was watching a hockey game, they could either have a hot dog delivered to their seat or could be notified when it was ready to be picked up, all without waiting in line. GOLO has since expanded its deliveries to include all of Toronto and Montreal. The service now also offers users a loyalty and rewards program that gives cash back to users when they make a purchase.
When ordering through the GOLO app, users can receive between 1-6 per cent of their purchase amount in rewards, called GOLO Dollars, which can be used for future purchases. This reward system essentially acts as a digital wallet, wherein one installs their means of payment and then has their GOLO Dollar account ready for a transaction.
Hyper localization essential for GOLO’s business
Another significant component of the app’s success has been in keeping fees low and localizing delivery staﬀ. To parlay its industry-leading features into sustainable revenue, GOLO’s most recent focus has been on cultivating the business of oﬃce towers – a strategy that has been paying oﬀ with hundreds of orders every business day.
Noël notes, “We are a location-based service. For instance, users in oﬃce towers will have an oﬃce runner assigned to their location so that each time they place an order, someone will be waiting to receive it and immediately pick up whatever that user needs." With this approach, delivery time is cut in half, eliminating some stress with longer than expected wait times.
Moreover, the GOLO delivery fee is also much more cost-efficient as the service is highly localized. So, when it comes to office tower delivery, the fee is $1.50, and the price is the same whether one is requesting coffee or flowers. With such a system in place, the company can prioritize savings and convenience for its users.
This jurisdictional approach also allows GOLO employees to get to know their users better — as the same runner will be consistently assigned to a location.
"For us, it’s an opportunity with worldwide scalability. In both North America and Europe, we’ve partnered with the largest real estate landlord in the world, Blackstone, to assist us in expansion,” Noël says.
Blackstone is one of the world’s largest real estate investors with a dominant platform in both equity and debt. They are also a global leader in traditional buyout, growth equity, secondary investing, and more, on top of being the world’s largest discretionary hedge fund investor. The firm owns over 23 offices worldwide and is the largest shareholder of GOLO. With over 30 years of experience, and access to the world’s biggest towers across Montreal and other major cities, including New York and London, the firm’s relationship with GOLO presents a fruitful and promising opportunity for investors to get involved.
Through this powerful synergy, GOLO can tap into a more extensive network of office towers and scale its operations beyond Canada.
A future filled with possibilities
When it comes to GOLO’s value prop, and what investors need to know, the company plans to have several runners assigned to major office towers in large cities, acting as trusted concierges for personal errands.
GOLO’s goal is quickly being realized as they are launching the inclusion of dry-cleaning delivery and shoe repair services in the second half of 2019, thus further diversifying its operations.
This results-driven progress isn't lost on the company. “We’re going to be a game-changer, a big disrupter in our industry. We’ve already started to see it, so we are now engaging discussions with big food operators, shopping malls, and by the reaction, we see that we’re disrupting their businesses. But this is also about the users. We’re going to create new services and fill more needs for users,” Noël explains.
Life in modern society is constantly shifting, with new inventions and apps transforming the way people interact not only with one another but with businesses too. Traditional methods of task completion are evolving, often to include a middleman to mitigate stress and time constraints.
As GOLO continues to execute on an ambitious expansion plan, focused on the needs of users in an increasingly on-demand world, they are elevating themselves above the competition. Support from major global players and sustained local success in Toronto and Montreal speak to the company’s fast-tracked growth, while the nature of GOLO’s best-in-class on-demand services implies room for more progress as the company scales.
To learn more about GOLO and how the app works, visit their website.