Initially, the service is available in Mumbai and Bengaluru, but would be extended to other cities after the trial period.
Google has launched its utility app Areo in Mumbai and Bengaluru. This application will aggregate the existing start ups in the food delivery and home services business in the two metropolitan cities in India.
Headquartered in California, the company has partnered with Box8, Freshmenu and Faasos for food delivery and UrbanClap and Zimmber for home services, the Live Mint reported.
“We are constantly experimenting with ways to better serve our users in India. In this case, Areo makes everyday chores and ordering food easier by bringing together useful local services like ordering food or hiring a cleaner in one place,†the company spokesperson told Mint.
Reportedly, the company had been looking for possible partnerships from the past eight to 10 months. The company launched the pilot three months ago. Google would only provide the software support; all delivery and service commitments would be met by the client companies. Google would charge some commission for its technical support.
The report further elaborated that Google’s entry is coming at a time when the start ups are facing a dip in investments. Citing a report by KPMG and CB Insights, the write up mentioned that the Indian start-ups raised $3.3 billion in 2016 for 859 deals; whereas in 2015 Indian start ups could fetch $8.2 billion across 890 deals. In particular, the food delivery and home service works suffered significant losses in business. “For instance, food delivery companies such as Dazo, Eatlo and Spoonjoy closed down after failing to raise funds as did home services companies such as Doormint and Taskbob,†the Mint reported.
Google, for now, has controlled its initial cost by avoiding the fulfillment cost. According to industry experts, most companies in this business incur loss due to the costs involved in fulfilling customer orders. Google would involve itself in just the aggregation part of the business.
The Areo app is anticipated to compete with likes of Zomato and Swiggy.