Serial Entrepreneur Thor Angelo and his partners at the startup Orderyoyo has developed a white-label solution that offers every takeout restaurant their own sales platform and thus owning their own customers. They already have 450 restaurants as customers, 30 of which captured among the top 100 Just Eat customers. Orderyoyo was formerly known as iWaiterApp, but changed its name earlier this month.
A big challenger to Just Eat
Thor Angelo says that 80 percent of the sales Just Eat pushes out to restaurants comes from repeat customers. Therefore, he has created a concept that lets take-away restaurants own their own customers. According Orderyoyos research Just Eat takes well over 20% of their customers turnover. Orderyoyo can all go and erode Just Eats earnings tremendously.
“Just Eat makes sense as a lead generator, but that customers must pay a quarter of their turnover is wrong. The first lead is allowed to be expensive, but not the next 20. Orderyoyo gives restaurants the power back. ” says Thor Angelo.
E-commerce expert and partner in In2media Tim Frank Andersen also questions the Just Eat model:
“When you look at e-commerce in general it is normal to use online marketing in search of leads. Then you get customers to do repeat business from your own platform. The take-away business, we see a different pattern where customers fed back to Just-Eat after every sale. The reason why Just Eat has been able to operate as they do is that it has been too expensive for each takeaway restaurant to make a solution yourself, but now the technology allows for Orderyoyo to disrupte the model and offer a solution which is much cheaper. It makes good sense to take-away places have their own platform to ensure ownership and loyalty of their clients.”
Orderyoyo delivers an app and a website uniquely built for each customer from which they sell their services. What’s more, it also includes a printer, which ensures that orders land in the kitchen. Orderyoyos business model is based on a subscription option where customers pay a fee starting at 295 kr per month. If, for example, a restaurant in a given period would have provided food to 350 customers for a total value of 55 000 kr, Just Eat would take about 11 000 kr while Orderyoyos cut would instead only be at 995 kr.
Thor Angelo has previously built a business from scratch. Back in 2000 he started LanguageWire, which are now among the world’s largest suppliers of translation. The company has over 100 employees and has a turnover approaching € 25 million. We recently did a story on him when he had a fireside chat at Accelerace, which you can find out more about here. During that chat he amongst other said how he has switched from being an business angel to being an entrepreneur again:
“I am back as a full time entrepreneur and do it all again. I wanted to be in operations. Talk to clients, be on the ground.”
Huge market potential means great investor interest
Only in January, over 10,000 orders made through Orderyoyo apps, corresponding to a turnover of customers to 1.5 million kroner (€ 200 000). The young company is also aiming at the UK, where they’ve got 60 customers on their system. UK alone represents 33% of the entire European take-away market.
The startup has a total of 33 employees and is currently moving to new premises at Thoravej in the Northwest of Copenhagen, where they get 450 sqm to romp on. Orderyoyo has spent almost 2 years developing the system, while sales to customers began in the summer of 2015. Since then the company has experienced a growth of 30% every month. Order Yoyo received their first investment in early summer 2015 and now SEED Capital is ready for a second round. In addition, Thor Angelo already in dialogue with other Danish and international VCs.
“We first invested in April 2015 and Orderyoyo has since enjoyed impressive growth. They are one of the companies that have come best from the start. They have created a product which allows for their customers switching from Just Eat to self-owning customers. We can look at the numbers that customers use the platform and are pleased with the solution. The team executes fantastic and we are not afraid to invest again.”
– says Investment Manager Helle Uth. The sum invested has not been announced.