The First Online Food Home Delivery in Egypt

1
The First Online Food Home Delivery in Egypt

• Ayman Rashed
• Managing Partner

2
Agenda

• What is otlob.com?
• How otlob works
• Why otlob?
• Statistics
• Challenges
• Plans

3
What is otlob.com?

• The first online food home delivery service in
  Egypt
• Delivery to both homes and offices
• Restaurants around Cairo
• Any type of food
• Cash on delivery
• No extra charges

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How otlob works
2) Otlob receives order via the Internet
1) Customer places order online
4) Restaurant prepares the order, delivers it and
collects the cash
3) Otlob routes order to the restaurant via the
phone
5) Restaurants pay otlob commission monthly
5
Why otlob

• Everybody gets HUNGRY
• Home Delivery
• Lack of Information
• Ease of using the phone
• The Internet

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Home Delivery

• A wide spreading value added service that
  virtually everybody provides now in Egypt.
• New Social Attitudes
• We all spend all day long at work, you seldom
  find somebody who gets his lunch at home.
• Households take holiday from cooking in weekends.
• Households do not have the time or energy to cook
  during the week.

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Information

• In order to decide what to eat and from which
  restaurants you need to know
• Restaurants that Deliver to your Area
• Menus
• Prices
• Cost of Delivery Taxes
• Restaurants Working Hours
• Restaurant Phone Number

8
Using the Phone

• Need to Place the Order as Quick as Possible.
• Few available Phone Lines
• Phones are used for more priority Purposes
• Restaurants Phone are Busy
• Order Takers do not try to sell me things that I
  do not want.

9
Otlob the Internet

• The most booming field in the business worldwide
• Most of the businesses my target customers
  already connected to the Internet
• Everyone is trying to find a place for himself on
  the net
• Egypt does not have yet a considerable existence
  on the net, any serious attempt is highly
  appreciated

10
Otlob Statistics

• Otlob started on September 5th, 1999
• 200 restaurants
• Not a single pound spent on marketing
• 50,000 visitors
• 350 hits per day
• 40 orders per day
• 1900 customers
• 100 new customers every week
• Average order L.E. 30

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Otlob Statistics contd
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Otlob Statistics contd
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Otlob Statistics contd
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Market Acceptance

• Many praising feedback mails
• Companies from different fields proposed
  different sorts of cooperation with otlob
• Microsoft uses the site as reference for
  e-commerce initiatives in Egypt
• Microsoft sponsors the site by supplying free
  software licenses and holding press release on
  otlob

15
Challenges

• Large network of restaurants
• Restaurants delay in delivery? Who is to blame?
• Delay in routing orders (3 minutes average)
  because of busy phone lines
• Missing items at restaurants in spite of
  existence on the menu.
• Restaurants perception of our service
• Operations costs

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Operations costs

• Each order costs on average two phone calls.
• of operators and of phone lines are directly
  proportional with of orders
• Internet connectivity
• Salaries
• General administration costs

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(Future) Plans

• We need to aggressively market otlob in order to
• grow
• gain more market trust
• automate our service
• add more value added services
• keep our time to market

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Potential Growth

• Integrate with restaurants to route the orders
  automatically
• Integrate with couriers to do the delivery
• Introduce new categories of goods for delivery on
  the site
• Integrate with portals to provide value added
  service to otlob user

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Financing

• We needed financing!
• Look at whats there in the USA!!!!!

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Who may Finance

• Venture Capitals
• Local Business men
• Other Internet Companies
• IT companies
• Loans
• Others

21
Challenges of Financing

• No previous model to follow
• Evaluation! High/Low?
• Time to Market
• We can build a similar site in few days and have
  you out of business

22
The Acquisition

• Surprisingly 100 Acquisition
• A consortium of
• CIIC,
• ITWORX and
• others

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Criteria of Acceptance

• Simply it is the best offer that we got
• Why bother the headache if we get the profits of
  4 years in only one
• We have other projects in mind and we want to
  enjoy implementing them

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• Thank You
• www.otlob.com