Takeaway.com: Exponential Growth in Online Food Ordering and Delivery


Abstract

"This case highlights the organizational, international and strategic challenges faced by a leading internet restaurant aggregator, Takeaway.com, in the food online ordering and delivery (FOOD) industry after receiving a mandate for rapid international growth through investor and IPO funding. The case describes the concepts of scalability and network effects, and the industry's changing business model, from one of online aggregator to one of vertically-integrated food logistics companies.The purpose of this case is to push students to reflect on Takeaway's competitive position and to decide on Takeaway's best course of action: 1) to reach scalability and continue to expand in international markets, and 2) to survive its rapid organizational growth, while maintaining a centralized structure, which is key to its successful business model."

Citation Note

Based on field research; 23 pages.

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Objective

1. Understand the concepts of scalability and network effects. 2. Discuss the key elements of a successful, scalable online business model. 3. Describe the challenges faced by online aggregators in entering new markets, and the requirements for reaching market dominance. 4. Determine potential issues faced when an organization grows too quickly. 5. Explore and evaluate different options for Takeaway to 1) successfully grow and integrate its organization; 2) reach scalability in more markets while continuing to expand internationally; and 3) manage the new competitive requirements for food delivery and logistics services.