– GPS-based delivery service for areas with insufficient address marking system –
– Many effects of revitalizing the local economy and creating jobs through technology startups –
A service platform that delivers food by identifying location based on GPS signals even in a neighborhood without an address is drawing attention in Israel. The main character is Ha'at Delivery, which is growing rapidly around the Arab collective residential areas where road names or building addresses are not marked. Ha'at, which started with 5 employees in 6000 in a small city with a population of 2020, has grown into a company with 4 employees, and the total investment has exceeded 100 billion won. In July 10, it was also included in the 2021 most promising startups of 7 selected by local media outlet Haaretz. KOTRA's Tel Aviv trade center listened to Hasan Abasi, founder of Ha'at Delievery, through a video interview.
Company Overview
Q1. Please briefly introduce yourself.
This is Hasan Abasi, Founder and CEO of Ha'at. I am 32 years old this year, and after graduating with a PhD in computer science from Technion University of Technology in Israel, I have worked for Intel, IBM, and Google. Ha'at, which started as a side project 3 years ago, has grown and is now dedicated to Ha'at.
Q2. Please introduce Ha'at service.
Ha'at, which means “to bring” in Arabic, is a delivery food ordering platform that connects customers, restaurants, and delivery drivers. Ha'at goes beyond simply providing a platform to play an active role in the entire process from menu registration to delivery. When a restaurant submits menu information such as ingredients and food name to Ha'at in writing, the digital transformation team registers the restaurant information and menu information in the application. Most of the small business people who use our service are inexperienced in using the application. To speed up the business, Ha'at has set up a digital transformation team to create an online catalog of menus on behalf of restaurants. Online menu creation is supported by Ha'at free of charge. If you want to register photos for each restaurant or menu, the Digital Conversion Team provides a paid business trip photography service.
In addition, the Ha'at service uses the GPS signal transmitted by the customer's smartphone to locate the customer, rather than finding the customer to the delivery address entered by the customer. This is because many buildings without addresses are located in Ha'at's service area. We developed an algorithm that matches the GPS location of the customer and the delivery driver each time food is delivered, allowing for a more accurate location of the customer on the next delivery. We also provide a shortest delivery route guidance service for delivery drivers.
Ha'at delivery driver photo
Q3. How did you come to found Ha'at?
In fact, it started out of my personal needs. I have spent a lot of time abroad because of my studies and work. Then, one day, I visited my hometown and wanted to order food for delivery, but there was nothing easy from selecting the menu to explaining the location of the house. In Arab cities like my hometown, it was difficult to even order food for delivery, so I started a side project right away. At the time, I was working at Google, and I developed applications at home every day after work. After one year of starting the side project, the application was completed and launched in early 1. The initial investment came from friends, family and four people. After launching, the company has grown rapidly, employing four people and starting to receive investments.
Q4. What is Ha'at's revenue model?
It is a structure that earns profits by receiving a certain percentage of commission from the restaurant. The fee is around 10% of the food order amount. Currently, there are tens of thousands of transactions every month through the Ha'at platform. We do not charge commissions from consumers and delivery drivers. The consumer pays the cost of the food and a delivery fee of 20 shekels (equivalent to about $6), which is paid in full to the delivery driver.
Q5. What was the most difficult thing about starting a business?
Finding good staff was the most difficult. Freshly established startups need people who excel in their respective fields, even though they can't afford high salaries. Ha'at likewise had to find competent people to work for low wages. Also, it was a great challenge to find experts who could take on a field that was unfamiliar to me, such as marketing. Most of the employees I work with are from the Umm al-Fahm area. It brings back people who were born and raised in this city, but who are commuting to other cities or who have migrated to other cities in search of work.
Q6. What changes have occurred in Umm al-Fahm since Ha'at was founded?
It made a revolution, not a change! Ha'at brought dramatic changes to the city. First, the size of the delivery food market itself has grown. The market has more than doubled in size in one year. As services take hold, changes are being observed in customer behavior as well. As restaurant sales increase, the local economy is also reviving. Of course, it also contributes greatly to job creation. Ha'at currently has 1 employees and 2 delivery drivers within the city of Umm al-Fahm. Most of the delivery drivers who work with Ha'at are people with no training. When these people started working with Ha'at, their income situation improved tremendously. Over 100 restaurants across Israel generate revenue through our platform, and we employ over 100 delivery drivers.
Q7. What is Ha'at's vision?
The goal is to become the No. 1 delivery food application in cities without infrastructure. Next year, we also aim to advance overseas, mainly in developing countries.
Q8. What kind of support is needed from the government level to foster tech startups like Ha'at in small towns and rural areas?
I think the most necessary thing is to improve awareness. In economically underdeveloped areas, people don't think much about starting a business or a better job. It is necessary to nurture the entrepreneurial mindset so that they can challenge the development potential with a sound problem awareness that can bring about change in society. In addition, by investing human and material resources, it will be able to help materialize and implement entrepreneurial ideas.
Q9. What advice would you give to young people who want to start a business?
First of all, I would like to tell you to build a network well. Of course, confidence in yourself is also important. However, it is equally important to network with people you can trust and be able to listen to them. Second, you must not be afraid of new adventures. There are so many ideas in the world as there are so many problems to solve. However, not many people take action to implement their ideas. Regardless of the outcome, I'd like to challenge you to give it a try.
implication
The start-up case of Ha'at delivery is a representative example of successful attack by targeting the Purple Ocean, a food delivery service aimed at regions with insufficient infrastructure. Ha'at's location-based delivery service is highly scalable in developing countries, from food to delivery of daily necessities and medicines.
Another impressive feature is the significant contribution Ha'at makes to the local economy. Unlike traditional food delivery services, Ha'at's service has succeeded in connecting with customers even restaurants and delivery drivers who are inexperienced in using the application. Ha'at's digital transformation team is creating a win-win economy by providing a wide range of services to improve online access for small businesses. Not to mention the job creation effect. Even in the city where Ha'at is located, direct and indirect employment of 200 people and more than 600 nationwide shows how successful start-up cases can contribute to the economic development of the region.
Source: Ha'at Delievery, Comprehensive data from KOTRA Tel Aviv Trade Center