A Peek at the Latest “Uber”: Flower Delivery
The tipping point has been reached and there’s now an Uber for everything. But what does it mean when a startup says they’re the Uber of their industry?
An article by Alyson Shontell published by Business Insider gives a great example of an Uber-derived business model that hits the mark.
Shontell writes that one company to jump on the trend successfully is BloomThat. They offer on-demand flower delivery for a flat rate of $35 to anywhere within the city of San Francisco within 90 minutes, and it’s all done with three taps on your mobile phone.
Poised for growth
In its first year and a half, the startup has raised over $2.4 million in investment and is expected to make a couple million more in annual revenue.
“Although ‘Uber for Everything’ is a tired concept, investors say companies like BloomThat could actually become giant businesses. The key is to find a category in the on-demand space that grows the size of the user pie and doesn’t just chip away at it,” she writes.
The author goes on to explain how Uber changed consumer behavior with its convenient and affordable black car services. The service encourages and creates demand by providing passengers and option they never before considered due to the hassle and expense.
Likewise, she predicts that BloomThat, the ambitious new flower delivery service, could follow suit. “Early data shows BloomThat is positioned to turn non-flower buyers into regular customers, too. One investor tells Business Insider that the average flower-buyer sends 2.5 bouquet per year; BloomThat’s customers are sending 11.”
What these on-demand startups have in common is an easy-to-adopt new behavior designed to provide effortlessness in the transactions. Considering the value these convenient services bring, it’s understandable that they continue to attract users and investors alike.
To read the original article in its entirety, please visit Business Insider.