🐝 Honestbee aspired to be Asia's largest online on-demand concierge grocery delivery service and the world's most convenient services marketplace ever! What led to its downfall?
Very informative and insightful.
Very good knowledge sharing info
Great info :)
Honestbee raised significantly more money in the form of debt
To really understand causation in a startup failure, one also needs to know what happened behind the scenes. Were critical decisions made only after gathering as much market feedback as possible, competitor analysis, and consultation with advisors (some of whom should have been domain experts with previous startup experience in the chosen vertical). We all know the GIGO (garbage in garbage out) analogy. If the founders were given good advice that cautioned them against changing business model mid-stream and ignored it, then the ultimate failure of the company is a personal failure of the founders, not a failure that they can attribute to "the market" or "timing".
From an outsider's perspective it seems that the decision to change models from capital-light to capital-intensive was the one that led to its ultimate demise, however, even the change of focus from grocery delivery into the highly competitive and STILL unprofitable food delivery segment would have led to its demise (look at GRAB and you see that regardless of how many new services it offers, its business model is fundamentally flawed and it unlikely to ever be a cash cow or turn a strong and growing profit.
I'm curious - is Isaac Tay from the Tay family that own SUTL here in Singapore?