JustDial from Local Search to MarketPlace e-Commerce – Compete Flipkart / eBay / Amazon

JustDial from Local Search to ecommerce facilitatorJustDial is likely to generate non-linear revenue growth in the time to come with the launch of new transactional nature services like food delivery, table bookings at restaurants, placing order for wine, taking appointment with a doctor, placing order for flowers and cake (tie-up with ‘Ferns N Petals’), grocery and medicines, courier pick-up service, laundry service, travel booking (Redbus), AC maintenance services etc. Several of the above services are already operational and the rest will likely be launched shortly. These unique services and first mover advantage (as a one-stop shop) in the same should create a diversified scalable revenue stream for Just Dial. These services will allow the company to monetize its company search category (c.64% of all searches). Just Dial plans to monetize these services through a fixed fee or commission as percentage of sales (5-7% of sales).

JustDials Shopfront platform will lead to Just Dial’s entry into the e-commerce/marketplace model (e.g. Snapdeal, Flipkart and ebay.in). The company’s modified version of the traditional marketplace platform has a unique advantage of same day delivery (in most cases), as the SME is likely to be a local vendor in close proximity to the customer. The company aims to offer best price discovery for any product for its users through Shopfront. Just Dial’s Shopfront will house over 37,000 products like cameras, mobile phones, televisions, tablets etc.

Just Dial will incur one-time advertising and promotional expenses to increase user awareness and habit formation for these new services. The aim is to get the user to understand the functioning of these online transactions and getting them to try and habituated to the same. Given the attractive and scalable opportunity in this segment, we believe it is necessary to invest in promotion of these new product / service launches.