Xyz is India's largest food ordering and delivering start-up that was founded in 2015.

Xyz works
by acting as a bridge between consumers and restaurants. It utilizes an innovative technology
platform that allows customers to order food from nearby restaurants and get it delivered at their
doorstep. Xyz also has its own team of delivery professionals who pickup orders from
restaurants and deliver it at the customer's doorstep.

Despite its widespread popularity and usage, which exponentially increased during the
pandemic, the company has been incurring huge losses.
A detailed analysis report of the company conducted in 2020 suggested that XYZ has two
competitive advantages, which when capitalized on, can change the company's fate.

• Consumer data - Xyz has extensive consumer data related to fooding habits and preferences.
They know exactly which dishes are in high demand in certain area, along with the optimum
price that should be charged for a particular dish, and the peak season for it.

• Superpower of Digital Real estate - Xyz can list its own offerings and give them special
preference by providing them great rankings.

Additionally, in 2019, Xyz launched it's newest venture, Xyz Abc.

Abc is Xyz's supplies platform for restaurants, where any single or chain outlet owner can sign
up and register with them, to order anything ranging from groceries, poultry, meats, seafood,
dairy and beverages. It claims to be working directly with farmers, mills, producers, and
processors to source these products.

Amid much fanfare, Abc was not able to 'move fast and break things' — the survival mantra of
tech companies.
They had plans of expanding to 15 cities by the end of 2020, but it went all haywire due to the
outbreak of the virus.
While restaurants started reopening by mid 2020, several pre-existing suppliers of these food
outlets demanded to be paid their pre-Covid dues before accepting new orders, and in addition
wanted advance payments for fresh supplies. The Covid-battered restaurants, in a bid to hold on
to their trickling cash flow after witnessing months of zero business. In search of a viable
alternative, a lot of these restaurants signed up with ABC.
However, after the initial rush to sign up for Abc, many restaurants pulled back.
Many of the restaurants had made up with their long term vendors and negotiated a system for
repayment of their previous dues. Moreover, unlike the large chains who order in bulk from
leading vendors, small restaurants function differently when it comes to procurement. They
prefer to source ingredients from multiple vendors as it helps them rotate credit. + transport cost
cut down
Furthermore, the terms and conditions of ABC state that if a restaurant fails to make a timely
payment (credit period varying from 7-45 days), the company charges a monthly interest rate of
1% on the due amount for the first 14 days, and subsequently a 0.1% interest every day until debt
closure. These amounts are deducted from the restaurant's earnings on the food delivery side.