Airlift, all failed to take off! Well, if you say startup crash of burnt cash, it would not be wrong. The Global Recession and Financial Crisis had a devastating impact and rendering its certain shutdown.
Online startups are popular in Pakistan because they offer a convenient way to purchase groceries, especially for people who don’t have a lot of time but the majority of them failed due to lack of funds or unsustainable growth plans. Himalayan Chef Online Grocery Store in Pakistan is an online grocery store that offers organic, and natural products with a suitable business model. They are committed to providing the highest quality products and supporting local farmers. Himalayan Chef’s main focus on quality will help them stand out in an increasingly competitive market due to its multinational parent company.
The startup culture has taken the business world by storm in recent years. But what exactly is a startup, and why are they so important? Without startups, the business world would be stuck in a rut. Startups provide a fresh perspective and new solutions to problems. They offer an alternative to the status and help drive progress. Recently, news has been trending around social media platforms about the complete shut-down of Airlift of the operations permanently on 12th July.
Starting with their great pivot from mass transit to grocery delivery, and down to their record valuations, the startup companies of Pakistan are a significant downfall.Of course, fast-growing start-ups often fire quickly to cope with their client’s needs and prevent future problems. Well, they faced trouble in the startup paradise! Who knows what may happen tomorrow. So it’s fine, except there are learnings to look out for.
Airlift, one of the top startups in Pakistan is the 3rd party business with no distribution itself that purchases grocery and other goods from different brands and sells them. It has proven itself to be one of the most agile and resilient startups that emerged well in recent years. Even, though the company was able to navigate the COVID crisis, building a new domain as well as pivoting into q-commerce. The recent downturn and global recession affected the economic activity and shut down Airlift’s operation permanently.
“In 2019, Airlift raised a successful revenue of $85 million in a fundraising round for 3 years. Last week, the global market was slashed by 31% as the global headcount as well as pulled out of several markets in Pakistan as rethinking its strategy against global recession,” says the Founder of Airlift, Usman Gul.
The Main Reasons Behind Airlift’s Shut-Down Failure!
Well, failure in any startup ecosystem is not an anomaly, it is inevitable! When talking about Airlift’s failure, several problems led to its failure despite all the struggles.
- Lack of International Exposure
Airliftfailed to gain traction in international markets, leading to their eventual downfall. Having significant user bases, but still unable to expand beyond due to the lack of understanding of local cultures and customs. This led to missing out on the key opportunities to grow. Further, Airlift was functional on the international funds only
- Global Recession
It’s no secret that the global economy has been in a tailspin for the past few years. Many businesses have suffered, but none have taken harder hits than startups. It’s no surprise that Airlift on the premise of making life easier during economic downturns failed to take off. For that, it started to restructure its business to emerge
- Financial Funding Crisis
Startups need money to get off the ground, but they often don’t have the resources or the connections to get funding. It faced failure leaving a devastating impact on the economy that halted its operations. Airlift generated revenue of millions with its online store leaving behind less margin, bringing a downfall in its success
- High Shipping Cost &Less Promotional Prices
High shipping charges and fewer promotions were the major failures for Airlift. To cut costs, Airlift reduced its marketing budget and relied heavily on word-of-mouth marketing. However, this has not been enough to offset the high shipping costs, which have forced the customers from signing up for the service
- High Unemployment Rate
This failure of Airlift is in shambles after a failed attempt to revive the sector. This has led to widespread unemployment and economic hardship for the people of Pakistan.This is a devastating blow to the ones who were already struggling to make ends meet. The failure of one of the bright spots in the economy made things worse for the already struggling population
- 3rd Party Distributor Raises Concerns
Airlift Technologies does not have its manufacturing or distribution facilities and instead relies on third-party manufacturers and distributors. This reliance on third parties can be costly and logistically challenging. Run by venture capital instead of the family-owned business
Airlift vs. Himalayan Chef: A Way Forward!
Well, after a startup failure in Pakistan, it’s time to bring something to improve the road to success as startups are needed to be run by the founders, not by venture capital. Further, reacting to these failures, led to the rapid development of success by some founding companies, like Himalayan Chef Grocery Store in Pakistan.
After having a look into the failure of Airlift that led to its shutdown, Himalayan Chef comes to the rescue, helping out the people of the nation. Himalayan Chef covers the Airlift’s failure, providing you with the best of all.
- A Well-Owned Family Business
The Airlift’s takeover by Himalayan Chef, run by a family-owned business for the last 25 years, following the success of a 100% naturally pure food range. Keeping the promise of freshness and purity of its food products, Himalayan Chef is going to be the best for Pakistan
- No 3rd Party Involvement
Himalayan Chef has its manufacturing and distribution system compared to Airlift without relying on 3rd party businesses. Well, having a competitive advantage of cost, own logistics, and 100% naturally pure food range authenticity for a successful business
- No Fundraising
Himalayan Chef has marked its name in the international market without any fundraising rounds. With no fundraising required, they have a major focus on providing quality products and excellent customer service
- Own distribution Systems
Himalayan Chef has its warehouses and no rental property compared to Airlift. This gives them the ability to have full control over the inventory and ensures that they can always provide the customers with the best possible
So, this takeover of Airlift by Himalayan Chef is going to overcome all the hurdles of today’s times. This move is good for the economy as it will create jobs and increase Himalayan Chef’s production capacity. Well, Himalayan Chef is providing a good opportunity for all those who face unemployment due to the Airlift’s shutdown. Further, you can visit the Himalayan Chef’s Grocery Store In Pakistan website for more information regarding grocery and other product delivery. Also, you can email them for better opportunities at [email protected].