Case Study Of Drive Yello: Innovative Food Delivery App

The case study should include the following information:

The business context and background, including the industry, location, size of the business, market conditions, customer segments, demand conditions, competitors, founders' background, etc.

Comprehensive description of the business, including the product(s) and service(s) that the business makes available to customers and its business model.

Your evaluation of the strategy and future prospects of the organisation (students can apply SWOT, PEST, ratio or other analytical techniques to derive and justify their evaluation).

Summary of the key points, including a discussion of the one aspect of the business model you think is the most important for the management of the organisation to keep in mind to ensure the ongoing success of the organisation.

You will be rewarded for presenting the case creatively and their ability to craft compelling arguments. you should also write a case study that is highly accessible. Thus, it should not be too technical and can be easily understood by someone with very little business training.

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Startup can be of any form and size and begin by building a prototype (Minimum Viable Product) for validation. Australia has its share of innovative startups with unique product and innovative services but being in a place like Sydney which is flooded with startups it is not easy to survive in the cruel market. Drive Yello is one such innovative app in the race to become a billionaire company has already seen the potential and the demand of the service that they provide. The concept delivering food “Uber Style” has earned them the market they needed to promote their product and have seen the first hand success in the nation (Daley, 2016).

Drive Yello is a revolutionary app with the aim to make food delivery easy was founded by Steve Fanale with Jonny Timbs in the year 2014. The initiative was to enable café, restaurant and other food service to manage effective delivery function with the intention either to provide service from their huge and efficient directory or outsource it altogether to increase customer retention and thus making more time and money for the business provider (Lawrence Richards & Lyons, 2013).

Steve who was a professional football player back in college was also keen on learning and gathering knowledge and thus was pursuing Bachelor of Commerce from University of Wollongong where he was introduced to computer programming and here he found his love for programming and build his first app (referred to us software then), he was only 19 then.  

The MVP (Minimum Viable Product) of Drive Yello was so strong that investor was very quick to invest on the product thus making Drive Yello reliable and cost efficient for the Food Delivery Businesses. Drive Yello soon became an astounding on demand delivery service which eliminates issues in food servicing industry. Drive Yello team as of now rely on its specialist to deliver excellent service throughout the country the team consist of 13 Members including both the founders. Spreading it branches in other parts of Australia Drive Yello now operates in Melbourne and Brisbane apart from its initial installation in Sydney and soon it would be launching globally in New Zealand and Singapore (McRostie, 2017).

Stuffing issue gave rise to the need of Drive Yello. Driver missed shift or called in sick at business hours or Demand spike puts the pressure on business to fill the crunch of drivers thus the founders envisioned on Demand service for such businesses, it also helped businesses without home delivery option the market they needed.  

App based delivery management, where businesses get the Market and the platform to monitor, manage and pay personal drivers or can easily hire new drivers at peak season or certain occasion in terms of both one-off delivery or on demand full shift from growing crowed sourced workforce. It bridges the gap between drivers and businesses to connect to provide service and earn. Drive Yello have ties with major brands such as McDonalds, Mad Pizza, Menulog, Woolworths and La Porchetta (Hindle et al., 2016).

The major business providers are the Businesses in need of alternative delivery option and Drivers in search of alternative income source and because of the uniqueness in its approach Drive Yello have Monopoly market and will be expanding further in food delivery business.

Founder’s Background

The way Drive Yello works is unusual and lucrative for both businesses with requirement and drivers with additional earning opportunity. The platform is benefiting both the parties and eventually helping the consumer around Australia. The product of Drive Yello is the human resource for café and restaurant owners and business opportunity for Drivers (Maswal & Dar, 2014).       

Drive Yello provide different set of services for both the drivers and the Business owner with the intention of serving the consumer on an elaborate sense via Café, Restaurant owners and Drivers. Drive Yello are providing the businesses owner platform to book, manage, monitor, train and pay drivers on a 14 day trial basis and once they are satisfied with the service they can opt further service at a low cost. To the drivers Drive Yello is providing flexible working hours, day and area, Drive Yello is also offering rented vehicle for the drivers (Rougès & Montreuil, 2014).

The business model of Drive Yello is different from the other conventional Food delivery app; it helps the food delivery segment of businesses by cutting off the third party involvement in the delivery sector by providing direct human resource to Café and Restaurants which reduce cost speed up delivery, increase customer satisfaction and help the business grow. Drive Yello also helps the driver to build their own driver business and make a profile and reputation in the market. Drive Yello charges a commission from both the businesses and the driver and also earn revenues by holding advertisement on their app which can be opted out by paying a small amount to the app. Drive Yello provides consumers all sort of products which differentiate it conventional food delivery app (Okumus & Bilgihan, 2014).

The greatest strength is its approach toward generating business for Food Serving industry. Feature provided to businesses by Drive Yello includes driver booking, monitoring and payment platform which gives businesses to provide best service to its customers thus happy customers means more business.

Drive Yello don’t have diversity to expand their business because of their mainstream MVP, and the Driver provided by the app don’t have a guarantee of being reliable. In the long run it would be hard to keep the business intact if businesses can’t trust the organization (Peppers & Rogers, 2016).

Monopoly market and approach gives them the edge they need as well as high demand of drivers during peak hours and festivals will keep Drive Yello alive.  

Due to easy availability of drivers, businesses can recruit more employees as per their convenience which will see fall of demand from Drive Yello. Monopoly market will give rise to competitors which will profitability (Booth & Whelan, 2014).

Drive Yello is pioneer in the market of Human resource outsourcing and have the potential to build an empire in delivery food chain by capitulate the current market. It will we wise to find alternate option such as their delivery of own brand of food, beverage and other consumable and non consumable items. The monopoly will soon see competitors flooding the market and to stay afloat Drive Yello need to strengthen its bond with Food delivery giants for regular source of income. And to do so they need to provide reliable drivers and an A grade service to both drivers and Food joints.

Conclusion 

To conclude Drive Yello is born at the right place at the right time and the demand of the

 Service will rise with more enterprises coming to the block. It’s important that keep their business provider happy and their drivers happier to keep the app on the ground. But they need to improvise by bringing diversity in the business on the long run. Currently due to high demand the app has shown success but it is necessary for the developers to see and respond to the challenges which will determine necessary changes in the app.      

Reference 

Booth, S., & Whelan, J. (2014). Hungry for change: the food banking industry in Australia. British Food Journal, 116(9), 1392-1404.

Daley, T. (2016). Food waste-the new last frontier (food for thought). Waste+ Water Management Australia, 42(6), 45.

Hindle, G., Vidgen, R., Hamflett, A., & Betts, G. (2016). Business modelling and technology leverage for value creation in the food bank sector–Phase One Report. NEMODE, University of Surry, Guilford.

Lawrence, G., Richards, C., & Lyons, K. (2013). Food security in Australia in an era of neoliberalism, productivism and climate change. Journal of Rural Studies, 29, 30-39.

Maswal, M., & Dar, A. A. (2014). Formulation challenges in encapsulation and delivery of citral for improved food quality. Food Hydrocolloids, 37, 182-195.

McRostie, S. (2017). App-based companies in the gig economy. Proctor, The, 37(2), 34.

Okumus, B., & Bilgihan, A. (2014). Proposing a model to test smartphone users' intention to use smart applications when ordering food in restaurants. Journal of Hospitality and Tourism Technology, 5(1), 31-49.

Peppers, D., & Rogers, M. (2016). Managing Customer Experience and Relationships: A Strategic Framework. John Wiley & Sons.

Rougès, J. F., & Montreuil, B. (2014, May). Crowdsourcing delivery: New interconnected business models to reinvent delivery. In 1st international physical internet conference (pp. 1-19).

Yeo, V. C. S., Goh, S. K., & Rezaei, S. (2017). Consumer experiences, attitude and behavioral intention toward online food delivery (OFD) services. Journal of Retailing and Consumer Services, 35, 150-162.