Good Product: One-Click Food by Young Entrepreneurs
Oleg Novikov and Mikhail Kozlov, residents of Future Technologies accelerator, talked about their unique project of food delivery service, which allows to forget about staying in lines at supermarkets and makes farm food more affordable.
Good Product is an online supermarket, the idea of which appeared as a food delivery project. In the future Good Product will have its own warehouse and shop. According to the authors of the project, they were inspired by successful food services in Europe. Its main advantages are cash saving and convenience.
Unlike other food delivery services depending on policy of shops that supply them food, Good Product aims to become more independent with its own food store. Mikhail Kozlov believes that "Being dependent on stores is always risky. Our own service and food will give us an opportunity to provide delivery for free."
As of now food delivery services have limited working hours, for instance, from 12.00 to 15.00, which is not convenient for some clients. Mikhail and Oleg plan to deliver food at the particular time that clients need it. The project will focus on bulk deliveries so that couriers don’t have to spend time coming back to a warehouse or shop more than once to take each order.
Oleg Novikov and Mikhail Kozlov
The policy of Good Product includes collaboration with farms. "We want to represent farmers who have no opportunity to sell their goods in St. Petersburg. Food from farms is more expensive than others. We’d like to make it more affordable," says Mikhail Kozlov.
The service includes so-called "Smart store" option. An algorithm offers products that match those that clients have already bought. It also can detect what goods someone needs to cook, for instance, borsch or other dishes. This assistant saves information about goods a client bought the last time and shows the names of things one buys more often on the main page.
The businessmen also plan to develop a unique idea: in private houses they want to install food boxes equipped with refrigeration sections at different temperatures. To take one’s order back a client has to enter a pin code. Having estimated how much the installation costs, Oleg and Mikhail believe that this idea will pay off.
The potential of the service can be proved with the following numbers: despite the fact that the amount of clients who use food delivery services is not so great, the number of those who looks for delivery services online is growing from month to month. In 2016 there were 10 thousand applicants, these days it is equal to 14 thousand. The experience of international projects shows the same — Tesco, the largest multinational grocery in the UK, earns about 20% of its profit through online purchases.
"These services are becoming more and more popular both in Russia and abroad. In our country it is like an extra option but it’s not realistic to develop both online and offline businesses at the same time. It is necessary to focus on one area only. These are two completely different segments. The real examples prove this. The retail chain OKEY tried to organize delivery service, but this idea failed. The reason was that they didn’t consider this as a different business," said residents of the Future Technologies.
Demo Day. Future Technologies
The businessmen collaborate with experts who assist them to make the right decisions and help avoid mistakes. Oleg and Mikhail work with specialists on marketing and logistics. They are also consulted by experienced mentors from Future Technologies.
One of the short-term goals of the project is to cover Parnas district. Then they plan to launch a delivery service in other districts of St. Petersburg.
"We also want to open an auto point. Those who plan to go to their countryside houses will be able to stop near food courts looking like McDonald’s points and get their orders. They will not spend time for shopping and will even forget about choosing goods, as it will be possible to just add something to their ordinary sets," summed up the entrepreneurs.
Oleg Novikov and Mikhail Kozlov presented their project at the Demo Day.