Alikolo failure

Alikolo

Online marketplace organization

Description

Alikolo was an eMarketplace organization started in 2014, in Indonesia. The organization's goal was to address purchasers' issues from an online stage. Alikolo’s model was such that sellers could list their product in the e-marketplace and buyers could access the sites to make their purchases. Alikolo would then ensure that the items purchased from the online stage would be delivered to their remote destinations. Initially, they incentivized the delivery by offering free shipping but when the shipping promotion stopped, their sales dropped significantly.

Stats

Category
e-Commerce
Country
Indonesia
Started
In 2014
Closed
By 2015
Number of Founders
One
Name of Founders
Danny Taniwan
Number of Employees
Between 1 And 10
Number of Funding Rounds
1
Total Funding Amount
$100K
Number of Investors
1
Precise Cause of Failure
Lack of Experience
Business Outcome
Shut Down

Cause of Failure

As a matter of first importance, the author, Taniwan did not have a clear vision of the quality of the organization in connection to its rivals and that might be because its eMarketplace idea lacked uniqueness. This is highlighted by Taniwan inability to give a reason for which a customer should purchase at Alikolo specifically instead of purchasing from their rivals.

One of the significant slip-ups that Alikolo made was to offer the greater part of the organization’s stake to speculators. This put the founder as a minority investor and limited its involvement and influence in some aspects of the business. This kind of business structure, where the CEO becomes a minority investor frightened off other potential speculators and therefore, Alikolo failed to secure a second round of financing. This eventually prompted absence of adequate assets that could have been used to scale up the organization and assemble an aggressive and more successful platform. Ultimately, the major obstacles that Alikolo faced were internal since it had its leadership lacked experience in both designing and running an organization.

Go on Reading

Other Startups

LuckyUnicorn t-Shirts
We've just launched 20 limited edition Failory t-shirts. Click here to buy one!

Startup Cemetery

A big resource for entrepreneurs and startup owners, in which we have collected and analyzed why +100 big companies have failed. Learn from mistakes, and avoid being part of the 90% of businesses that fail.

Alikolo

Online marketplace organization

General Information
Category
e-Commerce
Country
Indonesia
Started
In 2014
Business Failure
Business Outcome
Shut Down
Closed
By 2015
Cause of Failure
Lack of Experience
Founders & Employees
Number of Founders
One
Name of Founders
Danny Taniwan
Number of Employees
Between 1 And 10
Funding
Number of Funding Rounds
1
Total Funding Amount
$100K
Number of Investors
1
Description

Alikolo was an eMarketplace organization started in 2014, in Indonesia. The organization's goal was to address purchasers' issues from an online stage. Alikolo’s model was such that sellers could list their product in the e-marketplace and buyers could access the sites to make their purchases. Alikolo would then ensure that the items purchased from the online stage would be delivered to their remote destinations. Initially, they incentivized the delivery by offering free shipping but when the shipping promotion stopped, their sales dropped significantly.

Cause of Failure

As a matter of first importance, the author, Taniwan did not have a clear vision of the quality of the organization in connection to its rivals and that might be because its eMarketplace idea lacked uniqueness. This is highlighted by Taniwan inability to give a reason for which a customer should purchase at Alikolo specifically instead of purchasing from their rivals.

One of the significant slip-ups that Alikolo made was to offer the greater part of the organization’s stake to speculators. This put the founder as a minority investor and limited its involvement and influence in some aspects of the business. This kind of business structure, where the CEO becomes a minority investor frightened off other potential speculators and therefore, Alikolo failed to secure a second round of financing. This eventually prompted absence of adequate assets that could have been used to scale up the organization and assemble an aggressive and more successful platform. Ultimately, the major obstacles that Alikolo faced were internal since it had its leadership lacked experience in both designing and running an organization.

Go on Reading

Delicious

Bookmarking website to save, organize and discover links

Productivity
Still Active
No Data
Acquisition Flu
Productivity
United States
In 2003
By 2017
One
Between 51 And 100
No Data
Acquisition Flu
Still Active
Kno

Education software startup

Education
Acquired
$94.9M
Competition
Education
United States
In 2009
By 2013
Two
More Than 10000
More Than 50M
Competition
Acquired
Salorix

Online social network engagement platform

Analytics
Shut Down
$3.5M
Bad Management
Analytics
United States
In 2009
By 2014
One
Between 11 And 50
Between 1M 10M
Bad Management
Shut Down
Lumos

Internet of things startup on switching technology

Software and Hardware
Shut Down
No Data
Lack of Experience
Software and Hardware
India
In 2014
By 2015
Three
Between 1 And 10
No Data
Lack of Experience
Shut Down
Tutorspree

Web-based tuition services

Education
Acquired
$1.8M
Bad Marketing
Education
United States
In 2010
By 2013
Three
Between 51 And 100
Between 1M 10M
Bad Marketing
Acquired
Moped

Free messaging application

Social Media
Acquired
$1M
No Market Need
Social Media
Germany
In 1998
By 2014
One
Between 11 And 50
Between 1M 10M
No Market Need
Acquired