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.

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