We did a quick analysis of New York-based mobile food-ordering company GoMoBo this morning. GoMoBo’s Founder and CEO Noah Glass explains the pricing model in detail and responds to some of our concerns below:
1. There was a chicken and egg problem in getting started, but we’ve found that this became a virtuous cycle: now restaurants are encouraging new users to join and users are encouraging new restaurants to join. The ongoing challenge is to keep the number or restaurants and number of users in balance. We feel we’re managing that pretty well.
2. We charge restaurants a 10% discount fee for the orders that we bring in. The restaurant receives 90% of the full-list price via EFT and doesn’t have to pay cash handling or credit card fees. Increasing business by 15% and only taking 10% of that increase is a huge boost for the restaurant, especially given the tight margins you mention. Like EZ Pass, GoMobo is a throughput capacity booster. We automate order taking and payment so the restaurant can shift more employee hours to order fulfillment. Restaurants are signing up both to improve their operating efficiency and to offer a VIP service to their best customers.
3. This service is really built for those best customers. Pre-registering for GoMobo and saving favourite orders really only makes sense if you order routinely (think coffee). Example: People who work in Rockefeller centre hate waiting behind time care-free tourists when they have a short lunch break. GoMobo lets them avoid the ghastly lines. I’m sorry you found the “How To Order” FAQ confusing. We’ll work on making that more clear.
4. Text message ordering is only one channel. Using www.gomobo.mobi from a WAP-enabled phone is far better, I think. This allows you to build and customise orders on the fly and set delivery and or pickup time options all from your mobile phone. Give mobile web ordering a try and let me know what you think. We think that’s the future, but wanted to make GoMobo available to everyone, not just smartphone users.
5. It’s true that not every restaurant is on GoMobo…yet. We’ve made it easy for our users to spread the word to their favourite restaurants and we can get a restaurant up and running in 24 hours when they signup online.
6. The value proposition of “Skip the Line(TM)” isn’t relevant for everyone. The true value of GoMobo is being able to take the guesswork out of when your food will be available. GoMobo now allows you to schedule a delivery or pickup time (even via text message) and we send the order to the restaurant with the proper lead time so it’s ready just-on-time. Our proprietary ready-time algorithm adjusts for a number of factors, including how many orders are ahead of you, in deciding when to transmit the order.
I hope this helps to clear up some of your points on GoMobo. I encourage you to test it out in practice. I promise that you’ll enjoy the VIP feeling when you skip the line.