Random thoughts on Indian Startups!

Often I wonder, what do Indian startups have as their business model?

Somehow, I am not able to conclude any decisive long term business model, which comes to my mind, which would carry them through for next few years or many more years.

You may be wondering, its their business, its their money, but what do I do, if my thoughts ask me questions on startups?

I can have an opinion of my own, why not?

So, coming back to the business model, I really think, Indian startups are lesser concerned about providing services to the Indian people. People cannot ask them to provide technology at a lesser price, they simply cannot(it demands another post).

Recently had a debate on a website, where in someone was of the opinion that the online retail & selling company was a technology company working and headquartered in India.

I was wondering, how come someone who is all about service aggregation, bringing different sellers under a common website come under a technology company. I do agree they provide mobile app and a website to chose products from, that does not mean they are a technology company, are they?

So the gentleman replied, technology company because, technology is needed to build a scalable website, mobile app and to maintain it which needs 100's of engineers and thus a technology company.

I was like, what the F! I always thought technology company is the one who gives proprietary technology straight to the end user in terms of usable products and NOT in terms of delivery of somebody's product via website.

- What may happen if the user's start going to stores and buying goods
   Still better discounts + reduced profit margins + higher pressure on buyer to sell more + higher force fed marketing resulting in buying unnecessary junk?
- What may happen if the user's buy only things which they genuinely require.
- Why are these service aggregators  not able to target coastal areas / rural areas
    Is it because rural people buy only stuffs that they need
    Is it because rural people are ready to spend enough time on services automated by these service aggregators?
    If rural people have such time to spend after work, where are we losing time?
again in traffic doing what ? building more of such applications to fool/con people into buying more junk.

Ahhh the vicious cycle continues!

Cheers,

PS - Amidst all of these I just saw someone being driven in a Porsche Cayenne (costs Rs 1crore +) in my tech park, well, may be the CEO of the online retail company, and the money, yeah investor funding!

Someone's sure getting richer conning common man into buying junk!


2 comments:

  1. Good thoughts!
    For people buying junk, that's what marketing is for. I remember reading somewhere that less than 1% of what people buy lasts more than 6 months. Rest end up in landfills... clothes and shoes, for eg.
    Most startup behavior targets this kind of consumption. Which is what I keep harping about, that there's a huge disconnect between what we think and how we live. Most people who buy like this are aware about how it affects the planet, but can't do something about it.

    ReplyDelete
    Replies
    1. Thank you, I never thought on the harm it has on the planet, which is via residual junk plus demand for raw materials, so in a way, I think, the origin of the cycle either has to do with something like
      - Keeping people employed/occupied
      - Rich getting rich
      - Rich not knowing where to invest there money,

      I think solution to this would be lesser technology and more of agriculture, (My opinion though)!

      Delete