MGMT 20143 Think Big For Australia Food Delivery System

There are many fresh start-up companies experiencing real success in recent years in Australia. The age of digital revolution has paved the way to successful business for such internet dependent companies. Sydney based Drive Yello is one such company. This essay on Drive Yello will try to shed light upon the relationship between huge profitability and business process. Drive yellow, established in 2014, is a fresh business venture which has achieved great success in a very short period of time (Driveyello.com, 2017). Drive Yello is an app based Start-up Company which assists food vendors, manage drivers and outsource business. The company was founded by Steve Fanale and Johnny Timbs. The business model offers three types of services. The SAAS is the process where, the company manages its own stuff for maximum of 0.50 dollars per delivery, then there is the option of booking a driver for single shifts with minimum of 6.50 dollars and the delivery on demand system where a delivery cost of 10.50 dollars (Driveyello.com, 2017).  This Sydney based company aims to revolutionize the system of how drivers are hired, paid and managed. Like most innovative start-ups, Drive Yello also originated from a personal experience by the funders. In 2014’s Halloween, Johnny Timbs found out that three of the expected drivers are not present to deliver their service and the absence of any on demand service which provide drivers for deliveries led them to start the business. Thousands of Australian citizens are engaged in more than one job to earn extra, so there is shortage in the availability of such workers for the company (Tao, 2015).  Few investors of the company are Howard Fyffe, Asia Pacific Growth Management, Matthew Kelly and Muru-D (Harkness, 2016 ).

The sharing economy is blooming in Australia (Yuan, 2016). The online based businesses have been providing the most profitable money making service for last few years. The company has been recognized as one of the 13 most potential start-up companies of Australia (Nicholls, 2016).  The official app can be accessed from all android and i-phones. The customers and the service providers both use this common platform easily. Through the app the vendors book the delivery driver of their choice then drivers pick their shifts from their mobile and respond instantly. The deliveries can be tracked anytime by the customers and the vendors. The data is visible and available, which help the drivers and the vendors to improve (Driveyello.com, 2017). The company serves both purposes, to help the restaurants and vendors manage their delivery service and drivers to get new jobs. The easy sign up leads the customers to reducing costs, speeding up the deliveries, enhancing customer satisfaction and grow outsourcing (Desmet, Markovitch & Paquette, 2015). The company treats the drivers as efficient employees with multiple benefits. The drivers can choose their shift timing and delivery location and build their own business and reputation. There are more than 50 restaurants of New South Wales like Mad Pizza or Grumpy Doughnuts or franchise like McDonalds, Crust Gourmet Pizza are part of the company. The company is aiming to expand its business at Melbourne (Huffingtonpost.com.au, 2016). The company has experienced really impressive turn over so far.

The company lacks a chief technology officer and other talented software developers to build and utilize newer technologies to achieve more profitability. A company like Big Wave helps the company with all the digital issues (Bigwavedigital.com.au, 2017). Menulog’s association the company will add more success to its journey. Menulog possesses one of the best restaurant based database in Australia (Menulog.com.au, 2017). The association has already helping the company in the business. The last mile technology allows Menulog to track any order through its whole journey from the restaurant to the destination.  

A company’s business practice defines the company’s business model and the business model is defined by how the delivering services and addressing the customers. The infrastructure, acquisition of customers and implementation of certain business strategies also come under the model.  There are various business models like direct sales, freemium, subscription, community based and franchise models (Strauss, 2016). Drive Yello follows the on demand model.  In the on demand business model the ‘pay as you go’ method is applied (Cruz et al., 2014). The online based platform serves as the mediator between the customers and service workers. The Drive Yello’s online based marketplace links the drivers and the vendors. More than 2000 drivers serve for the company (Qsrmedia.com.au, 2017). The founder’s previous experience in Pizza delivery business helped them to run the business so effectively. Steve had experience of previous business as well. The start-ups like Traction platform or Mass media Studios were founded by him.  Though the simple concept is restaurants booking the drivers for their delivery, but there is more than that. The company offers roaming shift where it offers drivers to the stores which require maybe only one or two deliveries. Their drivers pick these extra jobs happily. The company has an efficient drive manager, Georgina McMenamin who manages more thousands delivery drivers (Huffingtonpost.com.au, 2016).

The case study explored the background and infrastructure of the company, its business strategies, market condition, challenges and future plans. The company has just started its journey but it is constantly changing its role and business directions, which may prove to be harmful for it.

The country also provides favorable conditions for the companies which are helping the company greatly to grow successfully.

The driver manager’s job also includes organizing the marketing campaign as well. The company cost seem high at time, compare to local businesses (Cookson 2016). As the company aims for most profitability, they do not seem to offer any discounts soon. This way the company maintains a simple and chaos free business structure but always suffers from the risk of losing the customers. The customers are always looking for cheaper options and small restaurants might not find the price worthy enough (Haenlein, 2017). The company does not follow the conventional method of hiring experienced drivers, naturally often the lack business etiquette, punctuality and experience, so the company must implement few set rules to avoid such instances.

Drive Yello has been facing challenges from companies like Airbnb and Uber in competititive market.  However the company is running ahead of its competition for many resong. To drive for a company like Uber, the drivers need to have proper license and documents (Uber.com, 2017). On the other hand, for engaging in business with Drive Yello the drivers just need an international license, Australian Business Number and a Tax File Number. Even the company provides them with the service of ABN set up. Uber or Airbnb is based on marketplace but company like drive Yello deals with customers’ real need and problems. The focus is on the quality and constant up gradation of the technology. Other companies either just serve the business like Airbnb or just provides drives but Drive Yello does both: providing drivers and solving problems (Harmon, 2016). The traditional taxi drivers like yellow taxi or black cars created major problem for the Uber drivers but the traditional courier companies have not created any major disturbance for the company yet. 

However the initial struggle to establish the company was difficult. The marketplace appeared extremely competitive. The company effectively utilized the common element from the other business models. The company should encourage the drivers to improve the relationship with the customers as it ensures a long lasting business (Peppers & Rogers 2016). It should create a free and effective work culture by adapting the best policies, principles or flaws by other successful companies. The company has the option of picking up many drivers, unqualified by Uber for their lack of proper vehicle (Nicholls, 2016). Drive Yello offers the job any responsible person with a car or bike and the urge to earn good money. There should be more effective sessions with the CEOs. The company should recruit more technically sound fresh talents.   

Drive Yello has many effective plans for near future. It is executing the plans gradually. Few new brands are joining the company; it is going to launch many new products, expand offices and acquiring new investor as partners (Yello.com, 2017).The internet based will grow massively in the near future (Forbes.com, 2017). So, company like Drive Yello has huge opportunity to grow more. This 3 year old company has just started its journey of success and it is already experiencing its great potential to become one of the most influential companies in the country.  

References

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