Friday, February 21, 2014

Rocket Internet GmbH. gets into cleaning services ???

"Rocket Internet is hard at work on its next venture – a copy of US-based Homejoy. The platform lets users book household services, such as cleaners. According to Deutsche Startups 25 people have apparently already been hired for the Rocket company, which should launch in spring this year. A Rocket Internet representative told VentureVillage’s sister magazine Gründerszene that the new venture will be run by two experienced entrepreneurs."

Perhaps it will happen what last year happened with Fab and Fab's clone (Bamarang)
They enter in a race and in the long term, they annihilate between themselves, as a LOST - LOST schema, both competitors destroyed to each other.
Ms. Caroline Winter from Bloomberg Businessweek seems to be the Journalist who most investigated over the Samwer Brothers and their clone empire.

Please remember:
AB Kinnevik's holdings is main investor and main partner of Rocket Internet GmbH.
They had invested in Rocket Internet GmbH.
They had acquired shares from several Rocket Internet GmbH.'s companies
"Rocket Internet is a company that incubates and develops e-commerce and other consumer-oriented online companies. Kinnevik owned 23.9% of the parent company Rocket Internet GmbH as per 31 December 2013 and works closely with the management of Rocket Internet in order to foster companies and develop them into leading Internet players."
"The Kinnevik online investments are mainly focused around e-commerce and market places. E-commerce is one of the strongest global growth trends in the world economy, and it is based on a shift in consumer behaviour which we believe is not a short term trend but represents a permanent change in consumer behaviour.
Within e-commerce, Kinnevik has focused its investments in the shoes and fashion segment through companies such as Zalando with geographical presence in Europe and companies such as Lamoda, Dafiti, Jabong and Zalora focused on emerging markets

My bet:
Their start-up companies are not designed to be profitable, and as they are copycats of U.S. companies, the main purpose is to be sold to the original company they had copycatted.
They always make unrealistic projections of sales: "For the Brazilian Amazon clone Linio the Samwers offer a return of 12 percent in 2017. The Amazon model generates 1.1 percent."
I suspect no one of the cloned companies by Samwer Bros. are really profitable or sustainable for the next 5 years, to until 2019 at least; and as they will not be able to sell to the original company they had copycatted, as they failed to sell Affinitas GmbH. to eHarmony Inc. last March 2012 and as the Management Team can not innovate in nothing because they are not entrepreneurs, they will collapse. All cloned companies seem like bubbles.

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