Our project aims to grasp the rapid growth period of China's Mobile Internet and provide a brand new experience for users while ordering takeaway.
Cwaimai platform links up restaurant owners and users through a mobile application/website platform. Cwaimai acts as a facilitator on O2O (Online to Offline) consumptions.
In 2010, The Chinese market sold 27.8 million smartphones, accounting for 16% of the overall mobile phone sales. In 2011, this number reached 74 million, accounting for 29.6% of the total consumption of 250 million total mobile phone sales. By the end of 2011 the number of Chinese internet users reaches 513 million and Mobile internet users reach 360 million. This huge user base constitutes the rapid development of mobile internet applications. Pizza Hut (US) launched its iOS APP in Aug 2009, and it brought over 1 million of sales value within 3 months. Grubhub launched its iOS APP in 2009. The percentage of orders from mobile increased from 2% in 2009 to 30% by the end of 2011 thus proving that users are generally accepting to order food delivery from mobile devices. Mobile internet delivery order in China is currently still in cultivation stage and is expected to grow rapidly.
We aim to grasp the rapid growth period of China’s Mobile Internet and provide a brand new experience for users while ordering takeaway. Cwaimai platform links up restaurant owners and users through the mobile application /website platform. Cwaimai acts as a facilitator on O2O (Online to Offline) consumptions by bringing added value to both retail and consumer sides.
Cwaimai’s Website, IOS and Android v1.0 launched officially in January 2012; Beijing was the first coverage city. Our PV has hit over 1M in less than 2 months after we first launch, and we see growth every week.
With our product users use GPS or keywords to search the restaurants that provide deliveries nearby. Users can choose from the search results, read the restaurant delivery menu and directly order food delivery via Cwaimai’s platform.
Restaurant owners can update latest news via Cwaimai’s product such as daily specials or discount information and get the information published to target customers.
By providing complete, accurate delivery related information and discount coupons the Cwaimai platform enhances user stickiness at the entry stage. The major revenue source at the entry stage comes mainly from advertisement fees from the restaurants. We are expecting major revenue coming from % commission fee on per order basis at the later stage.
Project Stage and Fund Raising Requirement
The Project is currently in development stage but the team aims to continue to develop it further and release the second version very soon. The company already achieved first revenues but is yet to break even.
1. The first in China to support cross network/device delivery information platform, launched iOS, Android and website in early 2012, grasp the rapid growth period of China’s Mobile Internet
2. Provide discount coupons on the basis of delivery information platform, increase users stickiness, differentiated products
3. Over 90% of Cwaimai’s users are Mobile Internet App users, most of them are white collar working class with high level consumption habits
4. Technology Structure and Operation flow already consider and support the possibility of quick expansion requirements, provide edge for rapid growth in China’s Mobile Internet user base
5. By using our Merchant backend system, merchants can update in real-time their basic and discount information from web/mobile devices. They can also monitor the statistical analysis in order to setup campaigns which will help to maximize advertising results and reach target customers
6. Low cost High Efficiency, by providing Merchant Backend System and Internal Operation flow standardization, enable us to run at low cost, more resources focused on marketing and IT development
This business model has proven success in U.S. and Europe.
GrubHub, the Chicago-based company that links consumers with food delivery options via Web or mobile devices. Users can search by inputting location information or GPS, and order via Web or mobile devices. Restaurants receive the orders feed from GrubHub and are responsible to cater the delivery services. GrubHub service is free to users and the main revenue stream comes from % commission on per order basis. Total order amount that goes through GrubHub platform in 2010 amount to 85 million USD in total, of which 8.5 million USD goes to GrubHub’s revenue. The company has so far raised four rounds of funding amounting to 84 million USD in total.
Delivery Hero run operations in Germany, UK, Sweden, Finland, Poland, Austria, Switzerland, Russia, Australia, and Mexico, partnering with more than 19,000 restaurants worldwide. Kickstarted by Team Europe in 2010, the company expects total 2012 revenue to exceed 250 million euros, serving more than 4 million customers. Delivery Hero just raised another round of funding up to 25 million EUR in March 2012, bringing its total capital raised to 40 million EUR.
Target Fund Raising Amount: 1.5 million USD
Use of Proceeds: 50% on Marketing, 32% on Wages and Operations, 18% on Development and Server/Bandwidth cost.
We consider only Equity Financing.
The business is expected to breakeven by the third year after investment.
The opportunity is huge - the rapid growth of China Mobile internet market is anticipated and by 2014, number of Chinese Mobile internet users will bypass 400 million.
There are other players existing on similar models, but no clear market leader in the industry. There are successful showcases from U.S. and Europe.
The core team consists of highly motivated individuals with rich experience in the sector.