Scaling a lean startup in Iraq: how Easy Bites took Erbil by storm
Restaurants and fast food outlets are booming in Kurdistan.
According to one official
in Erbil, Kurdistan’s capital now boasts close to 500
restaurants, a “massive [increase] compared to previous
years."
Erbil, which has been dubbed the “Dubai of Iraq” and named the
Arab Capital of Tourism for 2014 (despite not being an Arab
city), used to have “few restaurants in the past couple decades,”
but now they’re in “every location in [the] city,”
67-year-old Sabir Abdullah told Kurd
Net.
The major problem that all of these restaurants have, however, is
determining locations for delivery. “Most explain that they are
located between this hotel and that pharmacy,” says German
consultant Oliver Koch. Now, he and Mohammad Al-Samarraie, an Iraqi
IT lecturer, working to solve that probelm by launching Easy Bites, an online food
delivery site.
Online food delivery is a concept that has, thus far, flourished in
the Middle East, the most prominent success being Turkish company
Yemeksepeti, which secured
$44 million in investment from New York-based firm General
Atlantic last year. Now, several online delivery sites have cropped
up in the region, including Yemeksepeti’s own FoodonClick in Dubai
and
iFood.jo in Jordan.
Al-Samarraie first developed the idea as he and Koch worked to
advise the German Development Cooperation on building the National
Information Technology Association (NITA) in Erbil. Once the two of
them developed the idea, they brought on board two local designers,
Ammar Ameen and Omar Al-Obaidi, and two programmers from Berlin,
Ralph Magnus and Christoph Herbst, to round out the team of six
co-founders. As they began building programs for aspiring
entrepreneurs, the team realized that local startups couldn’t
relate to the examples given by imported trainers.
“The challenges at Facebook and Dropbox don’t really reflect the
challenges we face here,” says Koch. That’s when the two
entrepreneurs decided to launch what they say is Kurdistan’s first
internet startup.
As Al-Samarraie and Koch built connections with many of Erbil’s
restaurant owners through their work with NITA, they noticed that
restaurants not only had trouble with locations; they also lacked
formal systems for recording customers' addresses. Of 25
restaurants that they initially surveyed, “we only found one shisha
place that actually took notes on the addresses of its repeat
customers,” says Koch.
To solve the problem on a startup budget, Al-Samarraie turned to
crowdsourcing. First, he built an application that stored the GPS
location of a given location tag. Then, he launched a tagging
competition throughout Erbil last december, offering a Galaxy Nexus
phone to the person who could create the most tags of prominent
locations like malls, hotels, and business complexes.
Over five weeks, the competition gained 400 tags from 100 users,
says Koch; enough to start. In January, they launched Easy Bites,
targeting expatriates and workers in the private sector and
government.
Solving Iraq's addressing problem
When you open Easy Bites, which is currently a mobile website, it
logs your location from your IP address, and then relays two maps
to the restaurant of your choice: a general image of the area, and
a zoomed-in image of your exact location.
“This kills a big pain for restaurants,” says Koch. Google Maps
alone wouldn’t work, he notes, as its information is
outdated. (And similar idea Addy hasn't hit the Middle East yet).
Today, Easy Bites has gained almost 500 users, and the founders
are moving quickly build upon their traction. After seeing
that 60% of their users use the site on mobile phones, the team now
plans to launch apps for Android and iPhone.
They currently list 12 restaurants, and plan to add 8 more soon. To
make it easier for restaurants to use, the team alos plans to
integrate their tablet-based system with local point-of-sale (POS)
systems, and eventually market an integrated POS package.
Koch and Al-Samarraie may already have the best geolocation system
in Erbil, but they plan to improve it further, integrating a
compass function like the one TripAdvisor developed for its
Offline City Guides app. The team’s ultimate
goal, says Koch, would be incorporating a local coding
system.
“Every house in Iraq has a unique 6 to 7 digit code,” explains
Koch. “The first two numbers represent the sector, the next two are
the street, and the remaining two or three indicate the house.”
Augmenting the Easy Bites system to also understand these codes
would make the location technology even more valuable as a
standalone service for logistics companies, he notes.
Expanding into Baghdad
One side effect of the platform’s success in Erbil is that its
Facebook page has been “flooding with Baghdadis,” says Koch. For
those in Baghdad, home food delivery isn’t just convenient; it’s a
matter of security.
“People started contacting us, explaining that every time, they
leave their houses, it’s dangerous,” he explains. “Easy Bites would
have an entirely different meaning for them.” A few
restaurants have already contacted the team as well.
To expand into Baghdad, the two founders have once again turned to
the crowd, launching an
IndieGoGo campaign for $35,000. They also hope to enter
Sulaymaniyah, where they’ve signed up five restaurants.
With 60-70% of the population under 35, and quickly growing
internet penetration, the opportunity is huge, says Koch. While
internet penetration is currently only 7%, one third of the 3
million internet users have joined in the last 6 months, he
reports.
By using
Lean Startup methodology, both Koch and Al-Samarraie hope to
ride the wave and make a name for startups in Iraq.
For more about the concept, see their Google Tech Talk, ” Stories from Iraq: Launching a Lean Internet Startup,” below.