GOOGLE has launched a new hyperlocal food delivery and home services app for the India market called Areo.
The Android app is a service aggregator for services from local on-demand players like UrbanClap, Zimmber, Freshmenu, Box8, Holachef and Faasos who provide things like food delivery, home maintenance, fitness services and electrical repairs
To start with, the app will be available in Bangalore and Mumbai. The tech company is effectively acting as a middleman, relying on its partners to deliver service, instead of taking part in the fulfillment of orders.
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“We are constantly experimenting with ways to better serve our users in India,” a company spokesman told Live Mint via email. “Areo makes everyday chores easier by bringing together useful local services, such as food delivery and cleaning service, in one place.”
India’s hyperlocal food delivery and home services sector has been hit hard recently with the closure of many indigenous startups, such as food delivery businesses Dazo, Eatlo and Spoonjoy, and home services companies like Doormint and Taskbob.
One of the service providers, who did not wish to be named, told ET Tech Google is not charging its partners at present, but may consider commissions ranging from five percent to 15 percent if the offering proves popular.
“We expect 10 to 15 percent of our revenues to come from Google Areo,” Zimmber chief product officer Siddhartha Srivastava told ET.
“That will be a cheaper marketing strategy for Zimmber. If they market Areo as they had done for other services or products, the revenue growth (for us) could be higher.”