Wahyoo out to digitalise small food businesses
By Yunnie Marzuki January 24, 2019
- Provides app for stall owners to order goods, connects them with brands
- Has 2,500 food stalls on its platform, aims to reach 15,000 this year
WAHYOO, an Indonesian-based startup aims to digitalise traditional small food businesses (Warung Tegal or Warteg in Bahasa Indonesia) by providing a B2B app for owners to order and have their supplies delivered for free, connect to brand partners for advertisement placements, and a offering free renovation programme.
Wahyoo founder and chief executive officer Peter Shearer told Digital News Asia that he started this venture due to the potential in the grassroots market.
“The grassroots market is not fully digitalised yet, although every industry is going on a digital transformation path. I had the background and am passionate about branding and advertising. I am also excited about the culinary arts, so, I want to combine all these to create social impact.”
He explained that these small food businesses had retained their market and had huge drawing power. “Even simple and traditional food stalls are able to pull many customers in and by equipping them with digital elements, it will boost their businesses opportunities.”
Launhced in April 2017, Wahyoo now has 2,500 warteg in the Jakarta, Tangerang, and Bekasi area.
“We did a trial only with 50 warteg when we first launched, and we targeted too little in terms of numbers. Looking at the response, it is growing massively as this business also relies on its community, and we get awareness from word of mouth.”
Peter said that the platform will benefit these warteg as it offers efficiency in getting supplies, and if a warteg is an active member, it will receive loyalty points that can be redeemed for vouchers, and even a chance to get their store renovated for free.
“We also work closely with 10 brand partners to get their advertisements displayed on traditional mediums such as aprons, display windows, tables, and even tissue boxes. It’s the way for the warteg to generate more income.”
Wahyoo supplies goods directly from FMCG principles or agents namely Mayora, Kalbe, and Bayer, at affordable prices and gets them sent to Wahyoo’s warehouse.
The startup generates its revenue from sponsorship and the supply of goods.
Peter found it challenging to gain the trust of stall owners especially when on-boarding a brand’s advertisement campaign.
“Branding and advertisements are traditional businesses that have existed for a long time. Based on these warteg owners’ experiences, many brands did not pay them after displaying the advertisements, hence they backed off.”
He said that the company doubled its monthly revenue due to its strong acquisition team who meet food stall owners face-to-face, to explain to and educate them about Wahyoo.
Wahyoo has 60 staff includes a sales and acquisition team as well as IT engineers. It is still bootstrapping to grow the business and planning to raise funds to hire more IT talent.
“Its because we want to see our competencies, in scaling up the business without any boost of funding.”
The company plans to implement an in-house POS system for the warteg, launch a B2C app for users to order food from wartegs (February 2019), aims to reach 15,000 wartegs on its platform this year and extend its reach to customers after launching its mobile app for users.