The rise of the social
In last 3 days, I have received news of 2 social e-commerce ventures raising big amounts of funding. CityMall raised 75M US$
——– Otipy raised 6M US$
These are big amounts to be raised and represents the VC faith in the rise of social e-commerce. What should this mean?
In my books, this means that there will be distribution of this prosperity downstream. We will see greater number of people participating as online sellers, greater dropshipping, and greater distribution network. To me, this means greater no. of people would be engaged in delivery business (door-to-door variety) and rise in employment for packers, movers, distributors, manufacturers of cartons, tapes, drivers of trucks… you get the drift. This kind of investment should bring prosperity downstream. And now I’ll come to what prompted this post. You did see the header image, didn’t you?
These are defunct motorcycles lying in front of a FAASO’s outlet; painfully obvious that this outlet is not doing well and someone’s money (the franchise buyer’s, most likely) has gone down the drain. The deliveries are not happening.
And yet, Faaso’s was the first player in India (that I know of) who had involved social media in their business process. Orders, updates, feedback, complaints could all be placed on Twitter and the outlets would respond appropriately. it is ironic that the first player of the social e-commerce game in food delivery is facing this situation while the social e-commerce is right now on the rise. That too a big one.
Would appreciate comments.
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