Through the ages, we’ve witnessed that there are some facets, or components in every industry that can be replicated within others. What I mean is, you can spot the similarities of their functionalities easily, those that follow the same principles and ultimately may meet the same fate. Broadly, these can be termed as the oppressors, the underdogs, the disruptors, and the mediators, which are a few of the many that can be seen donning different avatars while playing the same role.
I realised this while watching The Playlist, a docu-drama inspired by the book ‘Spotify Untold’ by Sven Carlsson and Jonas Leijonhufvud, which takes us through a fictionalised story of the inception of the popular Swedish music streaming company, Spotify, highlighting early challenges. I saw so many similarities when it came to the functioning of the entire system, that I felt the need to pen down how industry parallels can be drawn between a streaming service and the rise of the online F&B space in India.
The docu-drama, inspired and Directed by Per-Olav Sørensen, is segregated into 6 broad chapters, or episodes, each showcasing the POV of a different facet within the industry. Broadly, these are The Vision, The Industry, The Law, The Coder, The Partner, and The Artist. While I won’t cover all these chapters with parallels, a few stand out to be quite common in their approach.
In this piece, I iterate my comparisons, specifically focussed on online food delivery, and how it was a game changer when introduced. But, as it stands today, is there a need to throw another disruptor into the mix? Here’s the sequel to Spotify.
The Vision || Aggregator Inception in India -
When the rise of food aggregators hit the Indian markets, stakeholders were stumped. They brought in some much-needed change within the food delivery segment, and streamlined the process of ordering food for a consumer, making it a seamless experience.
Paving the way for food delivery in general, these aggregators were trendsetters for internet commerce in food in India. Much like Spotify, their vision made others uncomfortable in the start, but a few years hence, they turned out to be the norm.
Their rise may have been at the cost of other stakeholders, but they did it nonetheless. Their gains are primarily based on the talent of artists aka restaurants. Today, similar to Spotify, aggregators face heavy backlash on their practices in general. Both entities find their own interest at the cost of the people / artists because of whom they exist, in turn building a monetary advantage for themselves.
The Industry || Conglomerates in the F&B space in India -
Higher ups in the industry, this group comprises of large brands like Rebel, Jubilant FoodWorks, and more, who have been wary of entrants like aggregators into essentially, their space of work. Like Per Sundin of Sony Music, and later Universal Music, the thing they were most interested in was recognition of the individuals who actually put in the work, and end up making little to no money - music artists, and in this case, restaurants.
These brands have in various ways tried to uplift them, whether it be their individual partner brands they own, or restaurants in general.
Well-being of the entire ecosystem is what this group strives for.
The Law || Laying down the rule book with the NRAI
Not too in sync with the docu-drama, in the F&B space the closest entity we have to the ‘law’ is the advisory body of the NRAI - National Restaurant Association of India.
NRAI stakeholders have always been vocal about their dissatisfaction regarding malpractices of aggregator platforms, with masked customer data, high commissions, fake discounting and other wrongdoings. Along with that, they’ve also been guides for restaurants on the whole, focussing on growth of the entire segment.
While the music industry has multiple laws around copyrights, credits, and more, the food-tech space doesn’t exactly have that. However with the NRAI in the picture, they’re prompt to call out whatever they feel could have an adverse effect on the industry on the whole, essentially putting down a norm.
The Artists || Restaurants, without whom aggregators wouldn’t exist!
The F&B industry starts at restaurants, and the other bodies come into play because of their existence. If you’re working in this industry, you need to put them at the forefront of everything you do, because their success = yours.
Restaurant owners were ecstatic when aggregator platforms came up first. A common marketplace for consumers to pick and choose what they would like to order through a seamless delivery experience was like music to most of their ears.
Not taking away anything from the success aggregators have witnessed by making restaurants and online food ordering on the whole extremely popular, today the scenario has switched up quite a bit. Apart from the structure they’ve created within the ecosystem, aggregators have also imbibed habitual ordering in customers, which translates to business for restaurants.
Aggregators help restaurants reach customers, no doubt, but with growth comes tough decisions. From masking customer data, to charging exorbitant commissions on each order for restaurants, to breaking the line of food discovery, and discounts with underlying conditions for end customers, the malpractices of aggregators are coming further into the light, day by day.
The next chapter || The Sequel, Thrive Now
In our series, there seems to be the need for another disruptor in the space of food quite evidently. That’s where Thrive comes in. From the day we started out when we didn’t know exactly where this journey would take us, to now, where we’re a semi-established food-tech startup, our aim has always been to grow with the restaurants we work with, and build in plain sight.
Our vision through it all? Make food commerce better for every stakeholder within the ecosystem.
Moving forward, we’re hoping to create a paradigm shift for consumers and restaurants alike in the space of online food delivery. This change will be focussed on principally 3 things -
→ Content
→ Commerce
→ Community
While we’re working tirelessly to convert our vision to reality, we hope consumers and brands alike adopt conscious practices to make this industry infallible for every stakeholder involved, in smaller, seemingly un-impactful ways too!