LAHORE — Amongst engaging in the ever-increasing market for the online marketplace and coming up with successful projects one after the other, Ahmad Saeed found the time to sit with us one on one and indulge us in his journey! Ahmed Saeed is the CEO and Co-Founder of GrocerApp, a web and mobile app that allows users to access daily use commodities and much more with just a tap.
Ahmad joined PakWheels in 2010 as a marketing manager after finishing his bachelor’s degree at the Lahore School of Economics. He left the company after securing $3.15 million funding as he had even bigger plans to make a mark in the e-commerce industry.
After seeing a vacuum and promise in the online grocery delivery sector in Pakistan, Ahmad co-founded GrocerApp with Rai Bilal and Hassaan Sadiq in 2016. Ever since then, there has been no looking back! Scroll along, as Ahmed opens up about his journey.
How did the concept for a grocery app occur to you?
We saw the need to build a platform that would meet everyone’s grocery delivery demands, with the lowest rates, the greatest selection, and same-day delivery. That’s how GrocerApp was born in 2016.
What influence has the COVID-19 epidemic had on customer behaviour and demand, as well as your app?
GrocerApp fills a void in the market by providing an online platform that allows you to buy anything with only a few clicks. In the country, the notion of online grocery shopping was already in place. COVID sped up the entire changeover process, which might have taken much longer to bring these many online purchases. People are becoming more accepting of internet delivery services. It may have taken us two to three years to get to where we are now, but this move was unavoidable. COVID functioned as an accelerator in the process.
It is important to remember that the COVID element as a guarantee from online delivery providers is no longer sufficient. These promises will not last long; online platforms and marketplaces must ensure that they deliver quality, a diverse selection, competitive pricing comparable to those found in a contemporary trade store, and so on. These are the types of characteristics that will encourage customers to try ecommerce, be satisfied, and remain with it.
Could you provide us some statistics about GrocerApp’s growth over the last year?
After realizing that the retailers had their own inventory management challenges, we had to gain some control over pricing and quality. Otherwise, the consumer wouldn’t stick to us.
We switched from a marketplace to a fulfilling approach in March 2019. We started constructing technologies for ourselves that we were developing for our partners, such as warehouse management systems and assisted picking. In the fresh produce section, when our crew visited the ‘mandis,’ we worked tirelessly. We had already raised our income by tenfold with the new approach when COVID hit.
COVID times increased our income, and during the first shutdown, we had to adjust operations to accommodate the increased demand in Lahore from March to June 2020.
We grew our business with a seed investment once the lockdown ended and extended to Islamabad and Rawalpindi. Last month, we made about $1.2 million in revenue. The average order value in our store is about $16. However now, the strategy has changed since life is coming back to normal.
What problems do you have to deal with, whether it’s the economic framework or general consumer behavior?
To be honest, it’s difficult to replicate the typical grocery shopping experience online, especially when it comes to fresh fruit. Fruit, vegetables, and other fresh food, on the other hand, might be the most important differentiator for online markets in terms of customer quality and pricing. We have collection centers, numerous quality teams at all fulfillment sites, and quality assurance teams in place to help us with this.
After packaging and delivery, etc., there are checks to be made. We are very cautious and teach our riders to verify quality before delivering the order because the weather in Pakistan is quite severe. Still, in the event of a quality complaint, our customer service personnel are trained to replace or refund without additional questioning.
Another significant issue is locating resources that are compatible with our goal and vision. This includes putting together a startup team. From development to advertising to quality control, we’re recruiting across the board.
What do you think GrocerApp will look like in the coming 5-10 years?
The goal is to alleviate Pakistan’s food problem, and the company’s aim is to become Pakistan’s largest store in ten years. The Pakistani market is highly fragmented, but we feel that if we scale successfully and provide a positive consumer experience, we have a strong chance of becoming a billion-dollar retail firm.
To do so, we’ll need to expand into tier two and three markets. For these tier-two and tier-three cities, warehousing may not be the most practical option, and we may need to approach things differently.
This was quite an informative trip for us, and we wish Ahmed all the best! To find out more about GrocerApp and its exciting offers, visit: https://grocerapp.pk
