The Biggest Irony Of Current Startup Funding Trend.

herd
In the last 90 days, a lot of money (more than $400mn) has been poured in two types of businesses
1. Grocery Delivery.
2. Online Food Ordering.
Ask any investor and they will tell you why these trends are SOOO damn big.
But the fact of the matter is that the two hot trends basically compete with each other – If you order food from restaurants, you don’t need the groceries (and vice-versa). The same investors are investing in both the trends, either for the FOMO reason or they actually know what they are doing.
Investment ‘herd’ trends typically are very macro in nature (for e.g.. cabs, Kart-commerce, grocery, hyperlocal), but this time around they are micro to an extent that they are based on use-cases.
A case of maturing investors or herd investors who are struggling to find what (else) to bet on?
[Image credit: shutterstock]

6 Comments

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  1. Whether so much money should be pumped into food is a different question, but I don’t see the two types of businesses pointing to two different things. Users of both want to work less for food. Even if I am cooking at home (or if I have a cook), I don’t want to go out, weather the weekend rush in grocery shops and stand in queues where everyone is looking for an opportunity to jump the line. Similarly, even if I want to eat restaurant food, I don’t want to go out, struggle with traffic and parking and worry about table being available at weekend. I want the comfort of home in both cases. And on different days, the same person would be the consumer of one or the other. It’s not like people either need one or the other. They both are trying to capitalize on the same trend. One of them may succeed and other fail. But that won’t be because they were competing. Rather because they over-betted on the trend.

  2. @ashish Food Tech could well be the new Big Data, but I don’t see how these categories compete against each other. You don’t stop buying groceries if you get food delivered to your home.
    They are only competing in the same sense as every Internet company is in a direct competition with each other because people have limited time to spend on the Internet. Which is kind of an absurd point to make, especially w.r.t to the online food market, which is a very tiny percentage of the entire food market, and hence we are nowhere near saturation.

  3. StartUps are just a New Name for Dot Com aka Dot Com Bubble….
    Just because VC’s have money…Does not mean..They know what they are doing…otherwise…they wouldn’t diversify and just invest in a single company or create their own company and get 99% of shares.
    The only difference between Dot Com and StartUps is the VCs have smarted up on how to hide their failure investments and give it a new name.
    Now, a days, you hardly hear any companies failing in Start-ups and yet after few years, you never hear them.

  4. You are so wrong and not even close in your comparison. Are you trying to tell people who buy groceries wont go out to eat or order food home. If you are not ready accept this… there si no point.