From Startup to Leader: 5 Key Insights from the Success of Ele.ME

The story of Ele.ME is the story of how you can turn even your wildest dreams into reality. Provided you work for it.

Remember Puzzles, the short-lived bar in How I Met Your Mother? A dream that Ted and Barney have had for a long time. A dream they dared venture into on a crazy night, stung by McLaren’s disregard for them being regulars. So, the idea came to life out of necessity.

Of course, poorly thought out as it was, it tanked.

Graduate Students Showing How It’s Done

Ele.ME, a food delivery business, on the other hand, tells a different story. Sure, it is also a business born out of a necessity. Yet, this one was so well thought out that it took over the market of China. And, it is a pretty big market, I’ll tell you that.

I cannot help but lament over Ted and Barney’s lack of perseverance, and lack of any business skills whatsoever.

But, at the same time, I cannot help but admire the prowess of two graduates, Mark Zhang and Jack Kang. Another duo that dared venture into business out of necessity. Yet, a duo that succeeded.

Ele.ME Revolutionizing China’s Food Delivery

So, first we had two graduate students with a challenge of ordering food on campus.

Not wanting to stop their games to go to restaurants, they decided to solve the challenge. In 2008, they founded Ele.ME.

The initial idea was to connect small restaurants to university students. Mark Zhang and Jack Kang developed an order management software in 2009. Within the first month, it got more than 1000 orders.

Clearly, things moved fast. Investors such as Alibaba, Ant Financial, Sequoia Capital and others quickly picked up on a great idea.

And the founders kept innovating, soon becoming the biggest competitor to Meituan.

Today, the Ele.ME platform covers more than 2000 cities in China and has more than 300 million users. It is the second largest online food delivery platform in China, processing around 18 million orders daily.

What started as a late night idea became a revolution. It became an inspiration, encouraging startups to dream big.

Insights and Growth Strategies for Startups: Learning from a Unicorn

Having a late night idea is one thing. But, actually turning it into a successful business is another. It calls for a good growth strategy.

The journey of Ele.ME carries valuable insights for startups. It covers everything from getting the idea to developing it successfully.

1. Creating to Solve a Real Market Need

There was one thing that the founders of Ele.ME sensed even on that night of their first business conversation. And it was precisely that thing that encouraged them to take actionable steps.

Sure, the idea came about because they wanted to solve their own need. But, it wouldn’t have succeeded if it weren’t a real market need as well. That’s what they sensed – that other people have the same challenge. And that it is, therefore, a challenge worth solving.

Confirming that, they created a product to solve the real market need.

Here’s the lesson. The next time you have an idea, do a reality check. In other words, check whether what you want to create can solve a real market need. After all, that’s the foundation of a successful startup. Regardless of whether you launch it while still in college, or later in life.

2. Using Technology to Enhance User Experience

Here is another thing that the founders of Ele.ME knew from the start. The success of their platform would depend vastly on the quality of user experience.

So, they decided to make it great. And then they decided that again. They kept on deciding it time and time again, constantly leveraging technology to enhance user experience.

Using cutting-edge technology, they streamlined the food delivery service. First off, their mobile friendly app made the ordering process seamless. Then, the AI-driven algorithms allowed for accurate order tracking and predictive analytics for accurate delivery time estimates.

Furthermore, embracing big data, Ele.ME offers personalized recommendations and improves delivery efficiency.

As a startup owner yourself, thus, say yes to tech developments. Embrace them to enhance user experience. And to, consequently, establish yourself on the market.

3. Adapting to Changing Consumer Needs to Stay Ahead

“The only constant in life is change”, said Heraclitus. It would do all startups good to remember that.

Ele.ME certainly did. So, when consumer needs change, this .MEr adapts. They don’t stick to their old guns just because abandoning a previously brilliant idea can be difficult on a personal level. Instead, their service evolves together with those consumer needs.

Watching the market closely, this unicorn kept adding onto its services. From offering cashless payments, to integrating grocery delivery, they know how to respond to emerging trends. In the end, this ability to adapt and innovate keeps them at the forefront of China’s food delivery industry.

So, here’s your key insight to remember. Failing to adapt is a sure path towards becoming obsolete.

4. Leveraging Key Alliances to Strengthen Market Position

Nobody succeeds in isolation. A lesson that we have to keep repeating in a hyper-individualistic world that pushes us to do everything alone.

Well, it’s a good thing that Ele.ME didn’t fall for the trick. After all, partnerships played a huge role in its success. The Alliance with Alibaba, for instance, gained this startup a competitive edge over its competitors.

Then, forming strategic alliances with logistic providers, cloud kitchens, and restaurants allowed this .MEr to scale rapidly.

Therefore, don’t underestimate the value of strategic partnerships. Seek for investors. Collaborate with industry leaders. Get all the support you can.

5. Growing Through Data-Driven Decision Making

Harnessing the power of data analytics, Ele.ME optimizes operations, enhances efficiency, and increases customer retention.

They didn’t get to 300 million users by making random decisions. On the contrary, they got there by analyzing user preferences, order trends, delivery performance and other key indicators.

Furthermore, data analytics helps them create loyalty programs and targeted promotions to boost customer engagement. In short, data refines their marketing strategy.

Here’s the takeaway. Use data-driven insights to continuously assess your startup performance. And to refine as needed, thus reaching greater heights.

Building Ele.ME with .ME

Understanding the power of branding, Ele.ME decided to set a good foundation for their online presence.

And, partnering up with .ME, they did a wonderful job, creating a website that clearly outlines their mission.

Not only is the domain name catchy and memorable, but it also sends a straightforward message. “Are you hungry?” it reads, automatically signaling what the platform is all about. Leaving no room for wrong interpretations.

So, this startup leveraged .ME to create a unique domain name that speaks of their mission. It leveraged .ME to stand out online, and build a strong and memorable brand identity.

Key Takeaways from Ele.ME

Ele.ME has come a long way since the idea was first born in a dorm room. Unlike Puzzles, this is a startup that stood the test of time.

Today, it carries a lot of valuable insights for startups, motivating them to pursue their goals, but do it strategically.

If we could sum all the key takeaways in one sentence, it would be this. Embrace technology, data, and strategic partnerships to solve real market problems and adapt to consumer trends.

That is how you go from startup to leader. Just ask Ele.ME!

And for more valuable insights and inspirational stories, be on the lookout for .ME’s eBook of lessons and strategies.