RITI 16-10-2000

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What’s AfterWhat’s AfterAyman Rashed

16/10/2000

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Agenda

• What is otlob.com?

• Financing

• Acquisition

• What’s After

• Q&A

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The First Online Food Home Delivery

in Egypt

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What is otlob.com?

• The first online food home delivery service in Egypt

• Delivery to both homes and offices

• Restaurants around Cairo

• Any type of food

• Cash on delivery

• No extra charges

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How otlob works

1) Customer places order online

2) Otlob receives order via the Internet

3) Otlob routes order to the restaurant via the phone

4) Restaurant prepares the

order, delivers it

and collects the cash

5) Restaurants pay otlob commission monthly

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Why otlob

• Everybody gets HUNGRY

• Home Delivery

• Lack of Information

• Ease of using the phone

• The Internet

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Home Delivery

• A wide spreading value added service that virtually everybody provides now in Egypt.

• New Social Attitudes– We all spend all day long at work, you seldom

find somebody who gets his lunch at home.– Households take holiday from cooking in

weekends.– Households do not have the time or energy to

cook during the week.

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Information

• In order to decide what to eat and from which restaurants you need to know:– Restaurants that Deliver to your Area– Menus– Prices– Cost of Delivery & Taxes– Restaurants Working Hours– Restaurant Phone Number

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Using the Phone

• Need to Place the Order as Quick as Possible.

• Few available Phone Lines

• Phones are used for more priority Purposes

• Restaurants Phone are Busy

• Order Takers do not try to sell me things that I do not want.

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Otlob & the Internet

• The most booming field in the business worldwide• Most of the businesses – my target customers –

already connected to the Internet• Everyone is trying to find a place for himself on

the net• Egypt does not have yet a considerable existence

on the net, any serious attempt is highly appreciated

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Otlob Statistics

• Otlob started on September 5th, 1999• 200+ restaurants• Not a single pound spent on marketing• 50,000+ (70,000) visitors• 350 (600) unique sessions per day• 40 (80)orders per day• 1900+ (2,200) customers• 100 new customers every week• Average order = L.E. 30

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Otlob Statistics cont’d

05

10152025303540

Under15

15-20 20-25 25-30 30-35 Over 35

Age

Percentage

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Otlob Statistics cont’d

0

5

10

15

20

25

10-12AM

12-2PM

2-4 PM 4-6 PM 6-8 PM 8-10PM

10-12PM

12 - 1AM

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Otlob Statistics cont’d

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

26%

Area

Percentage

Value

Count

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Market Acceptance

• Many praising feedback mails• Companies from different fields proposed

different sorts of cooperation with otlob• Microsoft uses the site as reference for e-

commerce initiatives in Egypt• Microsoft sponsors the site by supplying

free software licenses and holding press release on otlob

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Challenges

• Large network of restaurants• Restaurants delay in delivery? Who is to blame?• Delay in routing orders (3 minutes average)

because of busy phone lines• Missing items at restaurants in spite of existence

on the menu.• Restaurants’ perception of our service• Operations costs

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Operations costs

• Each order costs on average two phone calls.

• # of operators and # of phone lines are directly proportional with # of orders

• Internet connectivity

• Salaries

• General administration costs

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(Future) Plans

• We need to aggressively market otlob in order to:– grow – gain more market trust– automate our service– add more value added services– keep our time to market

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Potential Growth

• Integrate with restaurants to route the orders automatically

• Integrate with couriers to do the delivery

• Introduce new categories of goods for delivery on the site

• Integrate with portals to provide value added service to otlob user

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Financing

• We needed financing!• Look at what’s there in the USA!!!!!

$

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Who may Finance

• Venture Capitals

• Local Business men

• Other Internet Companies

• IT companies

• Loans

• Others

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Challenges of Financing

• No previous model to follow

• Evaluation! High/Low?

• Time to Market

• “We can build a similar site in few days and have you out of business”

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The Acquisition

• Surprisingly 100% Acquisition

• A consortium of :– CIIC, – ITWORX and – others

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Criteria of Acceptance

• Simply it is the best offer that we got

• Why bother the headache if we get the profits of 4 years in only one

• We have other projects in mind and we want to enjoy implementing them

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What’s AfterWhat’s After

Internet Blocks Arabic-Bookstore

Ayman Mostafa

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Internet Blocks

• Small Incubator

• Otlob like business

• We implement ideas and operate them

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Corsat.com

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Corsat.com

• “The training market place in the Middle East”

• “A one stop shop for any kind of training”

Corsat.com

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Training

“The world-wide training market, which includes tools, content and services grew to $16.5 billion in 1998 and is expected to reach $22.9 billion in 2001”

source: IDC

Corsat.com

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Types of Training

• Instructor Led Training

• Computer Based Training

• Web Based Training

• Self Based Training

Corsat.com

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Fields of Training

• Information Technology

• Languages

• Management

• Professional Training

• Post Graduate Studies

• Others

Corsat.com

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Corsat.com Main Features

• Search engine to allocate training providers according to – Field, topic, subject– Country, city, district, – Certifications, – Authorizations and– others

Corsat.com

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Corsat.com Main Features cont’d

• Each training provider will have its own web page • Training providers will maintain their pages by

themselves• Web Pages will contain:

– Background on Training Center– Staff– Premises– Programs, Courses, Schedule and Prices– References– Certification– Authorization

Corsat.com

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Corsat.com Main Features cont’d

• Customers can reserve their training courses online

• Payment is collected– At the training center– Via open accounts (receivables)– By credit cards– By our messenger

Corsat.com

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Corsat.com Main Features cont’d

• Training providers will have the facility to offer “Last Minute Offers” in order to fill in their classes

• Customers use reduced prices to join the courses at the very last moment

Corsat.com

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Corsat.com Main Features cont’d

• Individual training providers can advertise for themselves

• Customers browse Individual training providers’ advertisements according to field, location and date of posting

Corsat.com

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Corsat.com Main Features cont’d

• Corporates can publish their training needs online

• They elect whether to send the needs to all training providers or only to selected ones

• Selected training providers bid for those needs

• Corporates choose which offer to use

Corsat.com

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Benefits of Corsat.com

• An effective marketing tool and an untraditional outlet for training providers

• Help training centers fill their incomplete classes• Help Individual training providers market

themselves • A wide range of variety of prices and services are

offered in one place.• Increase the awareness of customers about new

training offers and services

Corsat.com

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Benefits of Corsat.com cont’d

• Customers save time and money by not having to visit training centers

• Help customers allocate their needs and reserve their place in classes in an easy and effective way

• Help customers allocate training centers far from their area of residence

• Let customers see other customers’ opinions and ratings of training centers’ services

Corsat.com

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Implementation Plan

• Development of Corsat.com

• Make deals with Training Center– IT Training Providers in Cairo– Other fields training providers in Cairo

• Launch Corsat.com

• Hire distributors in other cities

Corsat.com

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Thank YouThank You

Ayman RashedManaging DirectorInternet BlocksTel: 0123111961Email: arashed@otlob.com, arashed@corsat.com

Corsat.com