Dazo failure

Dazo

India's first curated food demand platform

Description

Dazo was a food tech startup based in Bangalore which emerged as a “food on demand” company that partnered with few selected restaurants and took care of the food delivery logistics. Hungry customers could find and order their perfect meal within seconds of opening the app, according to the startup founders. Dazo (formerly TapCibo) achieved this by analyzing and saving users’ behavior, preferences and direct feedback. The startapp counterintuitive approach of only working with about 20 restaurants that offered different cuisines was based on the (true) assumption that hungry customers had no patience for going through dozens of restaurants menus and reviews. What they needed was the best food delivered within minutes for an affordable price, and this is exactly what Dazo was about.

Stats

Category
Food and Beverage
Country
India
Started
In 2015
Closed
By 2016
Number of Founders
Two
Name of Founders
Monica Rastogi, Shashaank Shekhar Singhal
Number of Employees
Between 11 And 50
Number of Funding Rounds
1
Total Funding Amount
No Data
Number of Investors
7
Precise Cause of Failure
Competition
Business Outcome
Shut Down

Cause of Failure

Two of the main reasons the company decided to shut shop were fierce competition and lack of funding.

Heavy capital investment is essential in the food-tech industry and Dazo started running low on funding.

The very high competitivity in the sector led companies to slash their prices until practically no company could make substantial revenue from the sector and the cost of client acquisition actually increased. Needless to say, Dazo struggled to find fundings and the company opted for ceasing its operations within a year of their launch.

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.

Dazo

India's first curated food demand platform

General Information
Category
Food and Beverage
Country
India
Started
In 2015
Business Failure
Business Outcome
Shut Down
Closed
By 2016
Cause of Failure
Competition
Founders & Employees
Number of Founders
Two
Name of Founders
Monica Rastogi, Shashaank Shekhar Singhal
Number of Employees
Between 11 And 50
Funding
Number of Funding Rounds
1
Total Funding Amount
No Data
Number of Investors
7
Description

Dazo was a food tech startup based in Bangalore which emerged as a “food on demand” company that partnered with few selected restaurants and took care of the food delivery logistics. Hungry customers could find and order their perfect meal within seconds of opening the app, according to the startup founders. Dazo (formerly TapCibo) achieved this by analyzing and saving users’ behavior, preferences and direct feedback. The startapp counterintuitive approach of only working with about 20 restaurants that offered different cuisines was based on the (true) assumption that hungry customers had no patience for going through dozens of restaurants menus and reviews. What they needed was the best food delivered within minutes for an affordable price, and this is exactly what Dazo was about.

Cause of Failure

Two of the main reasons the company decided to shut shop were fierce competition and lack of funding.

Heavy capital investment is essential in the food-tech industry and Dazo started running low on funding.

The very high competitivity in the sector led companies to slash their prices until practically no company could make substantial revenue from the sector and the cost of client acquisition actually increased. Needless to say, Dazo struggled to find fundings and the company opted for ceasing its operations within a year of their launch.

Go on Reading

Kichit

Brought local chefs to private households

Food and Beverage
Shut Down
$8.1M
Competition
Food and Beverage
United States
In 2011
By 2016
Two
Between 11 And 50
Between 1M 10M
Competition
Shut Down
Verelo

Offered website monitoring services

Analytics
Acquired
No Data
Lack of Funds
Analytics
Canada
In 2012
By 2012
Two
Between 1 And 10
No Data
Lack of Funds
Acquired
MySpace

Social network based on personal user pages

Social Media
Still Active
$37.8M
Multiple Reasons
Social Media
United States
In 2003
Active
Seven
Between 251 And 500
Between 10M 50M
Multiple Reasons
Still Active
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
Gowalla

Social Guide to world's cities

Social Media
Acquired
$10.4M
Competition
Social Media
United States
In 2007
By 2013
Two
Between 11 And 50
Between 10M 50M
Competition
Acquired
RethinkDB

Scalable database for the real-time web

Software and Hardware
Acquired
$12.2M
Bad Market Fit
Software and Hardware
United States
In 2009
By 2016
Two
Between 11 And 50
Between 10M 50M
Bad Market Fit
Acquired