Scaling digital platforms through partnerships: The value of collaboration between mobile operators and digital platforms in emerging economies - GSMA
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Scaling digital platforms through partnerships: The value of collaboration between mobile operators and digital platforms in emerging economies COPYRIGHT © 2021 GSM ASSOCIATION
SCALING DIGITAL PLATFORMS THROUGH PARTNERSHIPS
CONTENTS
The GSMA represents the interests of mobile operators worldwide, uniting more than 750 operators with
nearly 400 companies in the broader mobile ecosystem, including handset and device makers, software
EXECUTIVE SUMMARY 4
companies, equipment providers and internet companies, as well as organisations in adjacent industry sectors.
The GSMA also produces the industry-leading MWC events held annually in Barcelona, Los Angeles and
RESEARCH OBJECTIVES 5
Shanghai, as well as the Mobile 360 Series of regional conferences.
1. DIGITAL PLATFORMS GAIN TRACTION 6
For more information, please visit the GSMA corporate website at www.gsma.com
Follow the GSMA on Twitter: @GSMA
1.1 Defining digital platforms 7
1.2 Digital platform enablers 8
2. MAPPING DIGITAL PLATFORMS 12
Ecosystem Accelerator
3. SCALING DIGITAL PLATFORMS: STRATEGIES AND BUSINESS MODELS 16
GSMA Intelligence is the definitive source of global The GSMA Ecosystem Accelerator programme
mobile operator data, analysis and forecasts. Our focuses on bridging the gap between mobile
3.1 Strategies for scaling the user base on digital platforms 17
team of analysts and experts produce regular operators and start-ups, enabling strong partnerships 3.2 International expansion: scaling digital platforms in new countries 18
thought-leading research reports across a range of that foster the growth of innovative mobile products
3.3 Partnerships and M&A: quick ways to scale digital platforms 19
industry topics. and services. These partnerships bring impactful
mobile solutions to the people and places that need 3.4 Scaling digital platforms during the pandemic 22
www.gsmaintelligence.com them most, generating the greatest socio-economic
info@gsmaintelligence.com impact. The programme is supported by the GSMA,
4. THE CHALLENGES OF SCALING DIGITAL PLATFORMS 23
its members, and the UK Foreign, Commonwealth and
Authors: Development Office (FCDO)
5. THE VALUE OF MOBILE OPERATOR PARTNERSHIPS 26
James Joiner - Analyst, GSMA Intelligence
Simone Hinrichsen - Insights Manager, GSMA Learn more at www.gsma.com/ecosystemaccelerator
or contact us at accelerator@gsma.com
5.1 An update to the haves/needs framework 27
5.2 Case studies to show collaboration between mobile operators and digital platforms 33
Follow GSMA Mobile For Development
on Twitter: @GSMAm4d 6. MAXIMISING THE DIGITAL PLATFORMS OPPORTUNITY:
40
THE ROLE OF KEY STAKEHOLDERS
This publication is partially funded by Deutsche
Gesellschaft für Internationale Zusammenarbeit
(GIZ) GmbH on behalf of the German Federal
Ministry for Economic Cooperation and Development
(BMZ). GIZ is a federal enterprise with worldwide
operations. It supports the German Government in This initiative has been funded by UK aid from the
the fields of international cooperation for sustainable UK government and is supported by the GSMA and
development. GIZ and GSMA cooperate within the its members.
framework of BMZ’s Make-IT initiative to promote
digital innovations for a sustainable and inclusive The views expressed do not necessarily reflect the
digital transformation. UK government’s official policies.
GSMA SCALING DIGITAL PLATFORMS THROUGH PARTNERSHIPS
Executive
Strong synergies and opportunities for
Research
collaboration between mobile operators and
digital platforms
summary objectives
Mobile operators have several assets that digital
platforms can leverage in order to scale. This includes
large customer bases, well-recognised and trusted
brands, a range of physical and online distribution
points, market expertise, and relevant payment and
communication channels.
Conversely, digital platforms can help mobile operators
Digital platforms disrupt traditional value appeal to individuals that do not currently use mobile Objectives and scope
chains across different sectors internet. Digital platforms can also stimulate mobile
data usage, helping operators to boost their core Our research aims to reveal the transformative impact
Traditional business models resemble a linear value revenues while providing opportunities to capture that digital platforms can have in developing countries.
chain, with producers at one end and consumers at the adjacent sources of revenue in fast-growing sectors. This report analyses the key enablers required to scale
other. In recent years, however, platform-based models this type of business. It also looks at strategies used by
have disrupted such value chains by enabling the A successful partnership needs to work for all digital platforms to scale in developing countries, with
exchange between two or more interdependent groups. parties involved a particular focus on the role of partnerships. To do this,
These can help to eliminate inefficiencies and extend the GSMA’s haves/needs framework is applied to six
the reach of services to a greater number of customers. Digital platforms and mobile operators need to identify examples of partnerships between mobile operators and
their own ‘haves’ and ‘needs’ before exploring potential digital platforms. The report concludes with strategic
The potential for digital platforms to reach scale depends partnerships. This will help both parties understand the recommendations for platform economy stakeholders.
on several enabling factors, from adoption of digital value they can provide to each other and where they
payments and mobile internet services to increased need assistance. Summary of methodology
investment levels in local tech start-ups.
Partnerships between mobile operators and digital The information collected, analysed and presented in
Digital platforms utilise a range of strategies platforms must provide value to both parties, as our research came from two sources:
to scale their user base well as platform users. It is therefore important that
the commercial objectives of operators and digital • 26 key informant interviews (KIIs) with digital
Strategies to grow the number of users include an platforms align and that realistic targets are set, so that platform start-ups, investors, tech hubs, mobile
initial focus on growing users on only one side of the the partnership model works for everyone involved. operators and other digital platform experts,
platform and providing additional services related to covering developing countries in Asia and Africa.
the platform’s core functionality. These approaches Scaling digital platforms during the pandemic Key informants were asked questions on viable
are often used in parallel with other strategies, such as strategies for scaling digital platforms, the value of
entering international markets. Digital platforms across several sectors have experienced partnerships between digital platforms and other
an uptick in users during the COVID-19 pandemic, as ecosystem players, and challenges facing digital
Digital platforms also regularly form partnerships with individuals and businesses have become more receptive platforms. KIIs were conducted in October and
other players in the tech ecosystem to grow the number to online transactions. However, the impact of the November 2020; and
of platform users. For example, some digital platforms virus has also disrupted investments in tech start-ups,
partner with financial service providers to improve meaning that digital platforms are having to adjust their • Desk-based research on digital platforms in
conditions for suppliers on the platform by offering growth plans amid continued uncertainty. developing countries.
benefits such as insurance and credit. On the demand
side, partnerships allow digital platforms to reach Interviews with digital platform experts, which helped
new consumers, for instance by plugging into existing to shape this report, highlight further challenges that
platforms or ecosystems. digital platforms encounter when trying to reach scale
in developing countries. Identifying a suitable business
model, establishing trust among users and overcoming
regulatory hurdles were identified as the three biggest
challenges facing digital platforms.
4 Executive summary Research objectives 5
GSMA SCALING DIGITAL PLATFORMS THROUGH PARTNERSHIPS
In Southeast Asia, platforms such as Grab and Gojek
1.1 DEFINING DIGITAL match consumers with a range of services, including
1 Digital platforms PLATFORMS taxis, restaurants and medical care. Digital platforms
also connect individuals to financial service providers.
For example, Migo is a platform in Nigeria that allows
gain traction
Traditional business models resemble a linear value companies to offer credit to their customers. There
chain, with producers at one end and consumers at are also digital platforms which cater to the needs
the other. In recent years, however, such value chains of specific workers, such as farmers. For instance,
have been disrupted by digital platforms, which can be Milkbasket and Ninjacart help smallholder farmers in
defined as technology-enabled business models that India to get better prices by connecting them directly
create value by facilitating exchanges between two or with local buyers.
more interdependent groups.1
A key characteristic that separates digital platforms
Digital platforms eliminate inefficiencies and extend the from traditional businesses is the potential to generate
reach of services to a greater number of customers. As network effects, whereby an additional user on a digital
a result, the platform-based business model is gaining platform increases the value of the platform to other
popularity in today’s tech ecosystem and has become users.2 Most commonly, this occurs when the number of
integral to the day-to-day lives of millions of people. suppliers on a platform increases, making the platform
Most often, platforms enable interactions between more attractive to consumers. This is referred to as
two sides, such as in e-commerce marketplaces, which a cross-side network effect. In contrast, same-side
bring together consumers and suppliers. Other types of network effects occur when a growing number of users
digital platforms involve transactions between multiple attracts more users on the same side of the platform, as
sides, as in the case of food-delivery platforms, which seen on social media platforms.
convene riders, restaurants and consumers.
1. Accenture
2. Platform Revolution: How Networked Markets are Transforming the Economy, Geoffrey G Parker, Marshall Van Alstyne, and Sangeet Paul Choudary, 2016
FIGURE 1
The virtuous cycle of network effects
MORE SUPPLIERS GREATER SELECTION
BETTER USER
MORE CONSUMERS
EXPERIENCE
Source: GSMA Intelligence
6 Digital platforms gain traction 7
GSMA SCALING DIGITAL PLATFORMS THROUGH PARTNERSHIPS
Propelled by network effects, digital platforms 2. Smartphone penetration 3. Digital payments
have been able to scale within many sectors of the 1.2 DIGITAL PLATFORM
economy. Many start-ups born at the beginning of
the last decade have grown exponentially. In 2010, ENABLERS Although there are some digital platforms that
are designed for feature phones, the rich interface
Digital payments help to reduce the problems
associated with cash transactions, such as the higher
mPharma, Ruangguru and Twiga Food did not exist.3 of smartphones broadens the scope for product risk of fraud and delays to transaction fulfilment. As a
However, as of December 2020, mPharma works with The potential of digital platforms to reach scale innovation and provides a much more user-friendly result, the experience of using digital platforms tends to
200 pharmacies across five countries in Sub-Saharan depends on several enabling factors. From our research, experience. For instance, focus group research by be enhanced when digital payments are used, helping
Africa (distributing medicine to 400,000 patients),4 we have identified six key enablers of digital platforms CGAP in Kenya has shown that low-income, first-time platforms to scale. In Asia, the shift towards digital
Ruangguru connects 15 million learners with 300,000 in any given market environment. users learned how to navigate a smartphone on their payments is being driven by several players, including
teachers, and Twiga matches 4,000 agricultural own in just 20 minutes.8 As a result, user engagement banks, fintechs and mobile money providers. Some of
suppliers with more than 35,000 vendors.5 and activity rates tend to be much higher when digital the region’s largest digital platforms, such as Grab, are
1. Mobile internet access platforms are accessed via a smartphone. also offering their own payment solutions.
Not only are digital platforms having a significant
commercial impact, but they are also driving The expansion of mobile internet has fuelled the growth
socioeconomic improvements. Studies highlight of digital platforms by enabling subscribers to perform 8. The impact of smartphones on financial inclusion, CGAP, 2017
that digital platforms can increase firm and worker a wide range of tasks on their devices. This growth is
productivity (e.g. through better market access) and set to continue, with GSMA Intelligence predicting that
they can also provide an entry point for formalising almost 40 per cent of people in Sub-Saharan Africa will
firms.6 A growing number of digital platforms also subscribe to mobile internet by 2025.
FIGURE 3
distribute financial services, helping to drive financial
inclusion.7 Moreover, digital platforms are helping Unstructured supplementary service data (USSD) At least one in every two connections in Africa and Asia is a
to deliver better-quality education, improved health channels allow digital platforms to reach mobile smartphone, up from around one in three in 2015
outcomes and other positive societal contributions for subscribers who do not have internet access; however,
millions of people. The importance of such platforms there are often restrictions on capabilities, such as limits Smartphone adoption (percentage of total connections)
has been underlined by the COVID-19 pandemic. on character count and audio-visual functionalities. 2010
However, the pandemic has also emphasised the digital Digital platforms that can be accessed via USSD are 2015
divide, with the unconnected less able to mitigate the most prevalent in sectors such as agriculture, as these 2020
2025
disruption to their lives. platforms tend to operate in rural areas where mobile
internet adoption is lower.
83%
80%
3. Ruangguru and Twiga Foods have received grant funding through the GSMA’s Ecosystem Accelerator programme
75%
4. Official company website (correct as of 1 December 2020)
5. Official company websites (correct as of 1 December 2020) 71%
6. Digital Platforms in Africa: the “uberisation” of informal work, German Institute of Global and Area Studies, 2019; and How online marketplaces can power employment in Africa, BCG, 2019
7. Africa’s digital platforms and financial services: An eight-country overview, Insight2Impact, 2019 65% 65%
59%
51%
FIGURE 2 Mobile internet subscribers
Mobile-only subscribers
The rise of mobile internet services Unconnected 39%
Percentage of population
2020 2020 2020 2020
28% 48% 31% 28%
34% 21%
33%
60% 30% 29% 36%
20% 20%
34%
40% 45%
2015 2015 2015 2015
23%
56% 54%
54%
6%
18% 25% 17%
31% 2% 1%
37% 15%
Sub-Saharan Africa North Africa South Asia Southeast Asia
Sub-Saharan Africa North Africa South Asia Southeast Asia
Source: GSMA Intelligence Source: GSMA Intelligence
8 Digital platforms gain traction Digital platforms gain traction 9
GSMA SCALING DIGITAL PLATFORMS THROUGH PARTNERSHIPS
FIGURE 5
In Sub-Saharan Africa, where mobile money has been 5. Youthful population Africa
driving financial inclusion, providers are transitioning A fast-growing tech investment ecosystem South Asia
towards a ‘payments as a platform’ approach to Regions across Africa and Asia have growing populations Southeast Asia
VC funding (billion)
connect consumers with third-party services.9 The of young urban consumers. The expansion of this social
M-Pesa payment platform has over 40 million users group, who are more tech-savvy and have a higher $12
and processes over 1 billion transactions every month.10 amount of disposable income, has led to changing
Further, mobile money usage has accelerated in consumption patterns. A plethora of digital platforms are
2020, bolstered by the decision by operators to waive now emerging to meet the needs of these individuals.
$9.4
transaction fees in order to reduce cash handling
during the pandemic.11
6. Digital talent
$7.1
4. Venture capital funding Given the complexity involved in connecting two or
$6.2 $6.2
more interdependent groups through a single interface,
$5.5
The rapid growth in tech investment across Africa, South digital platforms often require data scientists, user
$4.8 $4.9
Asia and Southeast Asia is fuelling the expansion of start- experience designers, developers and other technical
ups into scaled digital platforms. Access to capital is vital staff to succeed. The number of employees with these
$3.5
in order to attract and retain the brightest talent, diversify skills is growing quickly. There are nearly 700,000
into new product areas and expand into new markets. professional developers across Africa, with more than
50 per cent concentrated in five key African markets: $1.9 $2
Egypt, Kenya, Morocco, Nigeria, and South Africa.12 $1.2
However, there is still more work to be done to ensure $0.3 $0.4
$0.6
workers have the right skills. For this reason, several
2015 2016 2017 2018 2019
tech companies in developing economies have launched
upskilling programs. Source: GSMA Intelligence, Bain, Cento Ventures, Partech
9. Embracing payments as a platform for the future of mobile money, GSMA, 2019
10. “Safaricom, Vodacom acquires M-Pesa Payments Platform”, PYMNTS, April 2020
11. The Mobile Economy Sub-Saharan Africa Report 2020, GSMA, 2020 FIGURE 6
12. e-Conomy Africa 2020, Google and IFC, a member of the World Bank Group, 2020
The population of Sub-Saharan Africa skews younger than regions in Asia
Percentage of population by age
65+
15 - 65
FIGURE 4
0 - 14
Digital payment adoption continues to rise quickly 3% - 33m
6% - 110m
2014 10% - 70m
Percentage of population that made or received digital payments in the past year
2017
58%
39%
34%
55% - 609m
27% 28%
66% - 1.2bn
17%
70% - 490m
42% - 464m 28% - 514m 20% - 140m
Sub-Saharan Africa South Asia Southeast Asia Sub-Saharan Africa South Asia Southeast Asia
Source: World Bank
Source: World Bank
10 Digital platforms gain traction 11
GSMA SCALING DIGITAL PLATFORMS THROUGH PARTNERSHIPS
The enablers highlighted in section 1 have underpinned majority of digital platforms in South and Southeast
the rise of digital platforms across emerging markets. Asia. E-commerce marketplaces are also pervasive,
2 Mapping digital
Based on Tracxn13 data, there were over 8,000 digital particularly in Southeast Asia, where the success of
platforms in South and Southeast Asia, as of January platforms such as Lazada and Tokopedia has led to a
2021.14 Of these, more than 5,000 are in India. Other spike in activity. In South Asia, edtech and healthtech
platforms
vibrant digital platform economies include Singapore, platforms account for a higher proportion of digital
Indonesia and Malaysia. platforms than in Southeast Asia. Several solutions
in India have scaled in recent years, including online
Companies that connect consumers to local services pharmacy PharmEasy and Vedantu, an online
such as food delivery and ride-hailing account for the tutoring platform.
13. Tracxn is one of the world’s largest platforms for tracking start-ups and private companies spread across 300+ technology sectors and 800+ emerging themes, with dedicated coverage on 30+ countries.
14. To quantify the number of digital platforms, we have used Tracxn data on active marketplaces, which are defined as "any product/service where the purpose of the platform is to connect third-party buyers/service
receivers with third-party sellers/providers".
FIGURE 7
A vibrant tech ecosystem: number of active digital platforms
in South and Southeast Asia
Correct as of 18 January 2021
AFGHANISTAN
BHUTAN
LAOS
NEPAL
PAKISTAN
INDIA
MYANMAR VIETNAM
THAILAND
BANGLADESH CAMBODIA
PHILIPPINES
SRI LANKA
MALAYSIA BRUNEI
SINGAPORE
INDONESIA
MALDIVES
300+
100 - 299
10 - 99
Less than 10
Source: GSMA Intelligence, based on Tracxn data
12 Mapping digital platforms 13
GSMA SCALING DIGITAL PLATFORMS THROUGH PARTNERSHIPS
Digital platforms are also playing an increasingly account for the majority of digital platforms in Africa.
important role in Africa; they help create a wide range Africa also has a growing fintech sector, accounting
of locally relevant digital content and services, which in for 15 per cent of digital platforms in the region.
turn drives digital inclusion in the region. According to This includes Nigerian payment platforms Paga and
Tracxn, there are nearly 1,500 digital platforms in Africa. Paystack, which provide payment processing solutions
Five countries – Nigeria, South Africa, Kenya, Egypt and for businesses. E-commerce marketplaces account
Ghana – account for 80% of these companies. for a smaller proportion of digital platforms in Africa
compared to South and Southeast Asia, reflecting the
As in South and Southeast Asia, companies providing logistics challenges that exist in the region.
food delivery, ride-hailing and other local services
FIGURE 8
A burgeoning tech ecosystem: number of active digital
platforms in Africa
Correct as of 18 January 2021
TUNISIA
MOROCCO
ALGERIA
LIBYA EGYPT
MAURITANIA
NIGER
SENEGAL SUDAN
GAMBIA
GUINEA
NIGERIA
IVORY ETHIOPIA
COAST
LIBERIA
CAMEROON SOMALIA
GHANA
UGANDA
TOGO KENYA
BENIN RWANDA
CONGO
TANZANIA
MAYOTTE
ANGOLA
ZAMBIA MALAWI
ZIMBABWE MAURITIUS
NAMIBIA MADAGASCAR
BOTSWANA MOZAMBIQUE
SOUTH
AFRICA
100+
20 - 99 LESOTHO
10 - 19
Less than 10
Source: GSMA Intelligence, based on Tracxn data
14 Mapping digital platforms 15
GSMA SCALING DIGITAL PLATFORMS THROUGH PARTNERSHIPS
media, and onboard them online through a website
3.1 STRATEGIES FOR or app, it is possible to quickly scale lenders at a low
3 Scaling digital SCALING THE USER BASE cost. This is different to the process for onboarding
farmers, which often involves in-person visits, making
ON DIGITAL PLATFORMS it time-consuming and expensive to scale this side
platforms: Strategies
of the platform. This is a common problem faced by
digital platforms in the agriculture space, leading many
Through stakeholder interviews and an analysis of to initially focus on scaling farmers, knowing they can
scaled digital platforms, we identified several strategies quickly build up the other side of the market after.
and business models
that digital platforms use to drive adoption.
This strategy can also be effective when a digital
platform operates in a market with very influential
1. Non-platform proof of concept suppliers. Telemedicine platforms, for example, aim to
sign up doctors first, offering them flexible hours and
When there is limited interest in a platform-based the chance to set their own rates, as doctors are often
model from either consumers or suppliers, businesses able to bring their offline patients onto the platform.
can use a non-platform demonstration to prove their This represents a cost-effective way for a platform to
concept. In Singapore, Lazada operated as a traditional build supply and demand.
online retailer, buying stock and selling it on to
consumers. Then, once Lazada had established a solid
base of consumers, it converted to a platform business 4. Platform expansion
by opening its website to third-party producers. Within
two years, 65 per cent of stock sold on Lazada was Digital platforms look to scale by providing additional
through third-party merchants,15 and today it has over services related to the platform’s core functionality.
50 million consumers per year.16 These services can be provided by the platform owner
or a third-party. For instance, Grab and Gojek started as
ride-hailing companies before launching their own food
2. Platform niche and e-commerce delivery services. They also partnered
with healthcare companies such as Halodoc (Gojek)
Some digital platforms aim to initially target just a and Ping An Good Doctor (Grab) to deliver medication
small set of users on either side of the market, before and telemedicine services to users. These new services
expanding the service to a wider audience. For example, can make the platform more attractive to riders since
Uber began by allowing riders to hail only black luxury it allows them to meet more of their needs through a
cars that were 1.5 times the price of a normal taxi.17 This single interface. It also enhances the experience of drivers
helped the platform to prove its novel concept and build on the platform as they can replace the time spent idle
a loyal set of riders that could then be used to attract between rides with delivering goods, which increases
drivers of other vehicles. Approaches such as this also their earnings potential. For the digital platform owner, it
help platforms avoid the risk of growing users too quickly reduces the reliance on a single revenue stream.
without putting the necessary quality controls in place.
This strategy is also used by digital platforms in other
sectors. For example, e-commerce marketplace Jumia
3. Single-side focus launched JumiaPay in 2016 to reduce the prevalence of
the payment-on-delivery method.18 Through partnerships,
An initial focus on scaling users on one side of the JumiaPay allows users to make payments, play games,
platform can be an effective strategy if there are major apply for loans and purchase insurance. Providing
differences between supply and demand. For example, multiple services can enhance the user experience,
Farmcrowdy is a crowdfunding platform that connects which improves user acquisition and retention and
individual lenders to farmers in Nigeria. As Farmcrowdy subsequently attracts more partners, further enhancing
can reach lenders through channels such as social the user experience in a virtuous cycle.
15. “Lazada’s Marketplace platform accounts for 65% of its sale revenue”, e27, 2014;
16. “Lazada says it is e-commerce leader in Southeast Asia with more than 50 million buyers”, South China Morning Post, 2019
17. “The history of how Uber went from the most feared startup in the world to its massive IPO”, Business Insider, May 2019
18. “More Nigerians are starting to use mobile money services”, Quartz Africa, August 2016
16 Scaling digital platforms: strategies and business models 17
GSMA SCALING DIGITAL PLATFORMS THROUGH PARTNERSHIPS
is identifying markets with similar sets of users. For
3.2 INTERNATIONAL example, following its launch in Nigeria, credit platform
FIGURE 10
EXPANSION: SCALING Migo is expanding to Brazil because both markets have
many consumers with smartphones but no access to Digital platforms look to expand internationally to scale users
DIGITAL PLATFORMS IN loans. On the other side of the platform, both countries
have several large businesses that want to offer credit to
Number of countries platform is active in
NEW COUNTRIES their customer base but lack the right skills to do so. Migo
Jumia
0 1 2 3 4 5 6 7 8 9 10 11
can therefore leverage its experience from Nigeria to
Most digital platforms start off with a solution to a scale both sides of its platform in Brazil.20 Grab
local problem, before expanding into other parts of the
Gojek
country. When the domestic market nears saturation, Scaling a digital platform requires that both sides of the
digital platforms often consider international expansion, market grow proportionally. However, a digital platform Ninja Van
particularly when the domestic addressable market is might only be able to scale one side of the market in Daraz
relatively small. This is the case in Sub-Saharan Africa, its home country, making international expansion an
Lazada
where only five countries (Democratic Republic of attractive strategy for achieving a better balance of
Congo, Ethiopia, Kenya, Nigeria and South Africa) out of users. For example, e-commerce marketplaces that have mPharma
47 have over 15 million mobile internet subscribers.19 successfully added local merchants to their platforms Ola Cabs
might use international expansion to attract buyers in
Kobo360
While it is most common for digital platforms to new markets, as the digital nature of platforms makes it
expand into neighbouring countries, the critical factor easier to match users across different geographies. Paystack
oDoc
Ruangguru
19. As of Q3 2020
20. “Credit startup Migo expands to Brazil on $20m raise and Africa growth”, TechCrunch, December 2019
Gozem
Migo
Halodoc
FIGURE 9 TaniHub
International expansion can bring new users but Twiga Foods
also additional complexity Financial
Agriculture E-commerce Education
services
ADVANTAGES DISADVANTAGES Logistics Transport
Healthcare
(B2B) and food
Data correct as of 4 December 2020
Source: GSMA Intelligence
There are often differences in
Digital platforms can leverage
local customs, languages and
industry knowledge and their
cultures between countries,
underlying technology to
which means digital platforms
expand the addressable market Partnerships can be broadly split into two groups: those
at a low cost.
must adapt their propositions
for new users. 3.3 PARTNERSHIPS designed to scale supply and those designed to scale
AND M&A: QUICK WAYS demand. Partnerships that aim to scale supply focus on
improving conditions for suppliers on the platform, such
TO SCALE DIGITAL
Established digital platforms Digital platforms must adhere
have well-known brands and to local regulations, adding
as by helping suppliers to solve specific problems (e.g.
significant mindshare, even in further costs and complexity. partnership agreements between digital platforms and
markets where they are not yet
present. This can enable digital
This is particularly an issue
for digital platforms in more
PLATFORMS logistics companies to improve the delivery of goods).
Partnerships can also allow suppliers to access financial
platforms to quickly build trust regulated sectors, such as
among users on both sides of education, healthcare Digital platforms do not need to own all aspects of services. For example, digital platforms have data on a
the platform in new markets. and finance. value creation, as long as they have access to them supplier’s transaction history on the platform, which can
through partnerships. Consequently, most digital validate attempts to get a loan or insurance.
platforms provide plug-and-play access through APIs
that allow them to grow quickly and be nimble to evade On the demand side, partnerships allow digital
Source: GSMA Intelligence
business disruptions. platforms to reach new consumers, for instance through
18 Scaling digital platforms: strategies and business models Scaling digital platforms: strategies and business models 19GSMA SCALING DIGITAL PLATFORMS THROUGH PARTNERSHIPS
plugging into existing platforms or ecosystems. This users. Partnerships can also be used to provide specific With the platform model designed to support varied and Nigerian payments platform Paga plans to launch
includes partnerships with mobile operators, social benefits to consumers, such as agreements between partnerships, digital platforms often avoid acquiring in East Africa following its acquisition of Apposit in
media platforms and device makers, which enable platforms and financial service providers to give other companies. Moreover, given the capital January 2020.27 This type of deal is most common in
digital platforms to reach millions of potential new consumers access to credit. constraints of start-ups, M&A activity tends to be regulated industries, in which an acquisition enables a
concentrated among larger digital platforms. Gojek and platform to gain the necessary licensing requirements
Ola Cabs, both unicorn companies,25 have a history of to enter a new market.
21. “PalmPay launches in Nigeria on $40m round led by China’s Transsion”, TechCrunch, November 2019 deal-making. Most of their acquisitions have been made
22.
23.
“Gozem teams up with Ogar insurance and Togo Assistance to cover its taxi and moto drivers, in Lomé”, Togo First, December 2018
oDoc has received grant funding through the GSMA’s Ecosystem Accelerator programme
as part of platform expansion strategies. For example, It is also common for digital platform owners to sell
24. “Twiga Foods signs deal with Jumia to distribute fresh produce”, Business Daily Africa, April 2020 Gojek has acquired four payments companies and their companies to a buyer who either partly or wholly
Ola Cabs has used M&A to make inroads into public acquires the platform. This normally precedes a move
transport ticketing, trip planning and food delivery. by the acquirer to expand the platform into new
territories, most often when an international company
Other digital platforms use M&A as part of a strategy acquires a digital platform in Asia or Africa in order to
FIGURE 11
to expand internationally. For example, mPharma grow its presence in the region. For example, Stripe
Digital platforms can scale supply and demand through a broad expanded its operations outside of Ghana and into acquired Paystack in October 2020 to capitalise on the
range of partnerships Kenya when it purchased Haltons in March 2019,26 growing digital payments opportunity in Africa.28
PARTNER EXAMPLE 25. A private company with a valuation over $1 billion
26. “Ghanaian startup mPharma is buying Kenya’s second-largest pharmacy chain”, Quartz Africa, March 2019
PalmPay is an Africa-focused payment platform. Through agreements 27. “Nigerian payments company, Paga acquires long-term Ethiopian software partner, Apposit”, Techpoint Africa, January 2020
with third parties, it supports bill payments, airtime purchases, and 28. “Strike acquires Nigeria’s Paystack for $200m+ to expand into the African continent”, Tech Crunch, October 2020
Device movie and event ticket sales. To make it easier for individuals to
makers sign up to PalmPay, the app is pre-installed on Tecno, Infinix and Itel
devices.21 This could help to increase adoption and usage, which in turn
could help PalmPay attract new suppliers to its platform.
FIGURE 12
Gozem, which provides transportation and delivery services in West
Diversification is a key driver of M&A among digital platforms
and Central Africa, partners with insurers to cover its drivers.22 This
Financial Number of acquisitions
makes working on the Gozem platform a better experience for drivers,
service
helping to improve driver acquisition and retention. With a larger
providers International expansion
pool of drivers, Gozem can also offer a better customer experience to
riders, helping to initiate the virtuous cycle of network effects. Diversification
Core
A partnership with the Ministry of Health and the Government
Medical Officers’ Association helps telemedicine platform oDoc bring
Governments government doctors onto its platform.23 This can help oDoc build the
demand side of its platform, with doctors telling their offline patients
about oDoc. 7 5
In Benin, MTN zero-rates the Gozem application, enabling drivers
and riders who have subscribed to a data package to use the Gozem
Mobile
platform without using up any of their mobile data allowance. This
operators
helps Gozem grow both sides of its platform by appealing to MTN
subscribers on limited data packages.
Twiga Foods, which connects agricultural suppliers and vendors in
Kenya, signed a partnership agreement with e-commerce platform 3 3 3 1
Jumia in April 2020 to allow consumers to buy fresh produce and
2 2
processed foods distributed by Twiga Foods on Jumia’s platform.24
Other platforms
The agreement lets Twiga Foods reach new buyers, boosting the 1 1 1 1
demand side of its platform, which makes Twiga Foods more attractive
to prospective agricultural suppliers. For Jumia, it gets a major new Gojek Ola Cabs Tokopedia Grab Lazada Farmcrowdy Gozem mPharma Paga
supplier, which could attract new buyers to its platform.
Data correct as of 4 December 2020
Source: GSMA Intelligence Source: GSMA Intelligence
20 Scaling digital platforms: strategies and business models Scaling digital platforms: strategies and business models 21GSMA SCALING DIGITAL PLATFORMS THROUGH PARTNERSHIPS
Moreover, the economic and social impacts of COVID-19
3.4 SCALING DIGITAL have been vast. The IMF expects global GDP to fall by
PLATFORMS DURING THE
4 The challenges
4.9% in 2020 (the largest contraction since the Great
Depression), driven by the disruption to production and
PANDEMIC demand due to the pandemic.33 The economic shock
of scaling digital
threatens to undermine the progress made across many
Digital platforms across several sectors have seen developing countries in recent years, both in terms of
demand increase during the COVID-19 pandemic. growing economic output and reducing poverty levels.
In Indonesia, online learning platform Ruangguru This adds to the challenge of scaling a digital platform,
platforms
saw the average number of users increase from with business and consumer spending likely to suffer.
7.5 million a month before the pandemic to over 11
million.29 Digital platforms in e-retail and healthcare The COVID-19 pandemic has also raised concerns
have also witnessed demand surge as consumers about the ability of tech start-ups to attract investment
have become more receptive to online transactions.30 in the short term. While the full impact of COVID-19
Some platforms have also experienced an increase in remains unknown, investors are likely to become more
supply as non-digital companies have become more risk-averse amid economic uncertainty. As a result, the
open to partnerships. Examples include restaurants landscape will likely shift away from early- and seed-
and merchants coming onto food delivery and stage investments towards more established companies
e-commerce platforms for the first time.31 with clearer paths to profitability.34 This could increase
the time it takes for digital platforms to reach scale
However, the pandemic is having an adverse impact while also increasing the value of partnerships, which
on growth for some digital platforms, particularly can help platforms to accelerate growth without
those with a significant offline element, such as ride- venture capital funding.
hailing platforms. To avoid drivers leaving the platform,
ride-hailing companies have launched new services However, early signs highlight the resilience of the
to appeal to riders. For example, Gozem expanded African tech ecosystem, which raised $1.43 billion in
into e-commerce and food delivery when lockdown venture funding in 2020. Although this represents a
restrictions slowed its ride-hailing service.32 decline of 29 per cent compared with 2019 investment
levels, the number of deals completed by the African
tech ecosystem went up. In 2020, Partech tracked a
total of 359 equity rounds raised by 347 start-ups,
compared to 250 rounds by 234 start-ups in 2019.35
29. Education for All in the Time of COVID-19: How EdTech can be Part of the Solution, GSMA, 2020
30. e-Conomy SEA 2020, Google, Temasek, Bain & Company, 2020
31. “Grab’s Ken Mandel on how its ad business has softened the blow of Covid-19”, The Drum, October 2020; “Jumia sees high numbers of active vendors, onsite customers during COVID-19 lockdown months”, BusinessDay, June 2020
32. “Transport app Gozem launches e-commerce delivery options in Togo and Benin”, Disrupt Africa, July 2020
33. A Crisis Like No Other, An Uncertain Recovery, World Economic Outlook Update, 2020
34. e-Conomy Africa 2020, Google and IFC, a member of the World Bank Group, 2020
35. 2020 Africa Tech Venture Capital. Report, Partech, January 2021
22 Scaling digital platforms: strategies and business models 23GSMA SCALING DIGITAL PLATFORMS THROUGH PARTNERSHIPS
To understand the specific problems faced by digital a discount on their first trip. Although this can be an These steps are vital in developing countries, where new way of doing business for many people, some
platforms in trying to reach scale, we asked key effective strategy to attract riders, it can lead to the trust in online transactions remains relatively low. This is users lack these skills. Because of this, some digital
informant interviewees (KIIs) the following question: platform making a loss on each trip, with no guarantee especially true in sectors such as healthcare, given the platforms employ field agents or partner with third-
“What are the major challenges of scaling digital that the users will make full-priced transactions on the confidential nature and importance of interactions on party organisations to recruit and train users in person.
platforms in developing countries?”. The results show platform in the future. these platforms. This is a common tactic used by platforms that work
that digital platforms face a multitude of challenges in with farmers,37 though platforms in other sectors
trying to reach scale, with a relatively equal spread of such as e-commerce and ride-hailing also utilise
responses from platform experts. 2. Trust 3. Regulation offline acquisition. This helps to add new users, but it
incurs significant costs, which limits the ability of the
The top challenges in scaling digital platforms as The role of digital platforms as facilitators of transactions As digital platforms have only recently emerged in platform to scale.
identified by experts were as follows. between two or more parties creates unique challenges many sectors, the regulatory environment for these
when it comes to user trust. For example, it is sometimes companies can be unclear. There may be a lack of
unclear for a buyer who is accountable when they have a guidelines when it comes to data privacy and consumer 6. Infrastructure
1. Business model complaint. Depending on the issue, it could be either the protection, among other issues. In addition, there can
seller or the platform that is responsible, creating doubt be tension when digital platforms threaten to disrupt Despite significant recent improvements, there were
In order to scale, digital platforms must overcome a and mistrust. It can also be hard for users to understand regulated industries. still around 600 million people living in areas not
‘chicken and egg’ problem: when both sides of the who they are interacting with on the platform due to covered by mobile broadband networks at the end of
platforms are essentially equal, it is hard to scale one the number of parties involved in some transactions. In Nigeria, these tensions led the Lagos State 2019.38 Most of these individuals live in remote areas of
group of users without the other group already being The platform might also require data sharing and Government to propose a ban on ride-hailing platforms low-income countries, which can limit digital platforms
on the platform. For example, without suppliers on an legal agreements to cover multiple parties, adding to for motorcycles at the start of 2020.36 Following to operating in urban and suburban areas, making it
e-commerce marketplace, buyers have no reason to complexity and trust concerns. negotiations between the respective parties, new harder to reach scale. Furthermore, even in areas with
visit the platform; but without buyers, suppliers are guidelines were agreed. However, the uncertainty facing mobile internet coverage, individuals can be prevented
unlikely to list their products on the marketplace. To To address this, digital platforms take several steps digital platforms in the sector remains. This type of from accessing digital platforms due to the cost of
overcome this problem, some digital platforms offer to ensure user data remains safe, such as by verifying regulatory intervention can deter further investment, device ownership and mobile data.
incentives to one set of users. For instance, it is a individual accounts, ensuring the legitimacy of user preventing digital platforms from reaching scale.
common tactic for ride-hailing platforms to offer riders reviews and adopting good cybersecurity practices. In addition to connectivity, digital platforms also require
other types of national infrastructure, such as grid
4. Talent electricity and reliable logistics networks. While pay-
as-you-go (PAYG) solar models are helping to improve
It can be difficult for digital platforms to attract energy access in off-grid areas, the distribution of
FIGURE 13
employees with technical skills due to the global physical goods remains a problem due to poor roads,
The major challenges of scaling digital platforms shortage of graduates with science, technology, ports and air transport systems.
in developing countries engineering and mathematics (STEM) degrees. Digital
platforms must compete for this talent with global tech
Percentage of respondents
firms, such as Facebook and Google, which can afford 7. Investment
to pay higher wages. As a result, digital platforms may
Investment
look to attract talent by emphasising the benefits of As outlined in Figure 5, investment in tech start-ups
Business model
working at a smaller company, such as higher levels of across Africa, South and Southeast Asia has risen over
10%
Infrastructure employee autonomy and responsibility. the last five years. Nonetheless, venture funding remains
25%
10%
concentrated in western markets, with start-ups in the
US accounting for half of the global capital raised.39
5. User digital skills Moreover, Africa still receives less than 1 per cent of the
Digital skills 10% global share of VC funding.40 A lack of access to funding
Digital platforms require users on either side of the limits the ability of digital platforms in Africa and Asia to
15% market to possess the literacy and digital skills needed implement growth strategies.
to make online transactions. However, as this is a
15% Trust
15%
Talent
Regulation 36. “After VCs spend millions Nigeria restricts ride-hail motorbike taxis”, TechCrunch, February 2020
37. E-commerce in agriculture: new business models for smallholders’ inclusion into the formal economy, GSMA, 2019
38. State of Mobile Internet Connectivity Report 2020, GSMA, 2020
Base: Platform experts (including mobile operators, digital platforms, investors and tech hubs) Source: GSMA Intelligence 39. NVCA Yearbook 2020, National Venture Capital Association, 2020
40. State of Tech Innovation in Africa, AfricArena, 2020
24 The challenges of scaling digital platforms The challenges of scaling digital platforms 25GSMA SCALING DIGITAL PLATFORMS THROUGH PARTNERSHIPS
synergies and opportunities for collaboration between
5.1 AN UPDATE TO mobile operators and start-ups.
5 The value of THE HAVES/NEEDS
FRAMEWORK
Based on interviews conducted with digital platform
experts and our own desk research, we provide an
mobile operator
update to the framework in this section. This considers
In 2017, the GSMA Ecosystem Accelerator programme how the haves/needs structure can be applied to digital
established a framework to show that mobile operators platforms in developing countries. Through the updated
and start-ups possess certain ‘haves’ and ‘needs’ when framework, we illustrate how mobile operators can help
partnerships
it comes to scale and innovation.41 These determine the digital platforms overcome the challenges (see section 4)
to reach scale.
41. Building synergies: How mobile operators and start-ups can partner for impact in emerging markets, GSMA, 2017
26 The value of mobile operator partnerships 27GSMA SCALING DIGITAL SOLUTIONS IN THE WATER SECTOR
FIGURE 14
A synergies framework for mobile operators and digital platforms in developing
countries: Part 1 – mobile operators’ haves and digital platforms’ needs
COMMERCIAL EXPERTISE TECHNICAL INFRASTRUCTURE CUSTOMER RELATIONSHIPS
Financial Market knowledge Technical tools Relevant payment Universal Large customer base Brand recognition Distribution channels
MOBILE assets channels communication and trust
Market Tools to optimise Below-the-line Retail stores, mobile
OPERATORS channels
Financial resources understanding, the platform for Mobile money marketing campaigns Strong brand affinity money agents, call
HAVE
knowledge of user needs services and carrier Mobile voice, SMS, to customer base and visibility centres, websites,
customer base, billing (through APIs) USSD, etc. apps and platforms
network of partners (through APIs)
Reliance Jio’s start-
Operator APIs enable
Orange Digital up accelerator, MTN Benin zero- Through an API, Migo In Indonesia,
In Kenya, Safaricom’s Trotro Tractor to Airtel Kenya offers
Ventures invested JioGenNext, provides rates the Gozem app, offers co-branded Telkomsel promotes
Daraja API simplifies connect farmers and free Jumia shopping
EXAMPLES in South African workshops and helping drivers and credit services to the edtech platform
Twiga Foods’ tractor owners in vouchers on selected
financial platform channel partnership riders to not use up 9mobile’s subscriber Ruangguru in its
transaction process Ghana via a USSD purchases
Yoco support for platforms their data allowance base in Nigeria retail stores
menu
in India
Access to capital Advisory services Suitable connectivity Access to mass Access to mass Low-cost user Brand exposure and Access to user
payment communication acquisition trust touchpoints
Funding or grants Commercial support Increased
channels channels
to support business (e.g. access to partner platform activity Low-cost acquisition More brand Greater reach of
expansion insights), relationship Easy payment API access (SMS, of users on both sides awareness and users through partner
DIGITAL
brokering (e.g. with collection processes USSD, IVR) of the platform credibility, especially channels
PLATFORMS
NEED governments) among new segments
BUSINESS PLANNING SUPPORT PLATFORM DEVELOPMENT USER ACQUISITION
Source: GSMA
28 The value of mobile operator partnerships The value of mobile operator partnerships 29GSMA SCALING DIGITAL SOLUTIONS IN THE WATER SECTOR
FIGURE 15
A synergies framework for mobile operators and digital platforms in developing
countries: Part 2 – digital platforms’ haves and mobile operators’ needs
ENGAGED USERS DIGITAL EXPERTISE FLEXIBLE BUSINESS MODELS SOCIOECONOMIC IMPACT
Innovative and High customer Mobile-first approach Non-telecoms Openness to Agile business Tangible socioeconomic impact
DIGITAL high-impact services satisfaction services partnerships cultures
User experience Platforms that solve real-life
PLATFORMS
Unique product Loyal users, strong designed for mobile Fast-growing Openness to different Business cultures challenges
HAVE
offering value proposition (data, SMS, voice, revenues from modes of cooperation that adapt quickly to
USSD, MFS) digital services market changes
By allowing
Sheba.xyz to promote With retail stores
In Sri Lanka, oDoc As well as investing
its household service closed as a result of During the COVID-19 pandemic,
IM3 Ooredoo offers enables patients to MTN reported net in Sendy, Safaricom
marketplace in Robi the pandemic, Telenor Telkomsel provided customers
a special mobile connect to doctors proceeds of $142 uses the logistics
EXAMPLES Bangladesh stores, Pakistan partnered with free data to use on Halodoc,
package for Gojek remotely via video, million from selling platform to lower its
the mobile operator with e-commerce a health tech platform in
drivers in Indonesia stimulating mobile its stake in Jumia transportation costs
encourages new marketplace Daraz to Indonesia
data usage in Kenya
customers to enter sell prepaid top-ups
its shops
Customer acquisition Customer retention Growth of core Revenues beyond Lower cost base Faster innovation Sustainable solutions
revenues connectivity
Individuals that do Churn reduction, Improved cost New propositions Sustainability incorporated into
not use mobile and improved customer Higher revenues from Adjacent sources of efficiency of business brought to market core values
customers from satisfaction levels voice, data, SMS, fast-growing revenues operations more quickly
MOBILE
competitors USSD and MFS
OPERATORS
NEED
SUBSCRIBER GROWTH REVENUE GROWTH DIGITAL TRANSFORMATION SUSTAINABLE BUSINESS
Source: GSMA
30 The value of mobile operator partnerships The value of mobile operator partnerships 31GSMA SCALING DIGITAL PLATFORMS THROUGH PARTNERSHIPS
Our analysis of the synergies between mobile operators • Digital platforms look for support from mobile The six case studies outlined below highlight the value
and digital platforms yielded the following key takeaways: operators in a range of areas (see Figure 16). 5.2 CASE STUDIES TO of collaboration between mobile operators and digital
• Partnerships between mobile operators and
This speaks to the breadth of sectors in which
digital platforms operate, their different stages of SHOW COLLABORATION platforms. The case studies cover digital platforms
operating in different parts of Africa and Asia across six
digital platforms need to provide value to
both parties, as well as the platform users. It is
development and their countries of operation. The
low proportion of respondents that said digital
BETWEEN MOBILE different segments (agriculture, education, e-commerce,
financial services, healthcare and ride-hailing).43
therefore important that the commercial objectives platforms require support in the form of access to OPERATORS AND DIGITAL
PLATFORMS
of operators and digital platforms align, so that the capital highlights that mobile operators have much
partnership model works for everyone involved; more to offer digital platforms than just access to
finance. Operator investments in digital platforms
• Mobile operators have several assets that digital are still common though – for example, Telkomsel's
platforms can leverage in order to scale. This investment in Gojek in November 2020;42 and 43. Information in the case studies is correct as of December 2020
includes large customer bases, well-recognised
and trusted brands, a range of physical and online • Digital platforms can help operators meet their
distribution points, market expertise, and relevant commercial objectives. For example, partnering
payment and communication channels; with a digital platform can enable operators to
grow their subscriber base. It can also boost
revenues by allowing operators to increase their
presence in digital services and encouraging
subscribers to use more data.
42. “Super app Gojek gets $150m investment to help drive Indonesia’s digital economy”, PhocusWire, November 2020
FIGURE 16
What support do digital platforms in developing countries
need from mobile operators?
Percentage of respondents
0% 5% 10% 15% 20% 25% 30%
Payment channels
Suitable connectivity
Advisory services
Low-cost user acquisition
Brand exposure and trust
Access to user touchpoints
Communication channels
Access to capital
Base: Platform experts (including mobile operators, digital platforms, investors and tech hubs)
Note: respondents could enter multiple responses
Source: GSMA Intelligence
32 The value of mobile operator partnerships The value of mobile operator partnerships 33GSMA SCALING DIGITAL PLATFORMS THROUGH PARTNERSHIPS
CASE STUDY 1 CASE STUDY 2
Globe Telecom and Lazada: Building one of Southeast Asia’s biggest Hutch and oDoc: Improving healthcare in Sri Lanka
e-commerce marketplaces
Lazada Group is an e-commerce marketplace operating in five Southeast Asian countries, founded with the oDoc provides mobile-based telemedicine services for low-income populations. It has accumulated over
backing of Rocket Internet in 2012 and now owned by Alibaba Group. 300,000 users and has more than 600 doctors working on its platform.44
WHAT MOBILE OPERATORS HAVE THAT DIGITAL PLATFORMS NEED: WHAT MOBILE OPERATORS HAVE THAT DIGITAL PLATFORMS NEED:
NEED NEED
2019, Globe Telecom organised a one-day workshop for the top oDoc leverages Hutch’s mobile billing capability to make it easier
Lazada online sellers, including talks from experts on topics such as ACCESS TO
MOBILE OPERATOR
MOBILE OPERATOR
RELEVANT for patients to subscribe to oDoc, helping the telemedicine
MARKET accounting and social media. This highlights how Globe Telecom’s ADVISORY MASS PAYMENT
CHANNELS platform to increase the number of patients on its platform. This
KNOWLEDGE experience of working with small and medium-sized businesses can SERVICES CHANNELS
makes oDoc more appealing to doctors.
help Lazada retain suppliers on its platform, providing consumers
with a more extensive selection of products.
oDoc integrates with Hutch’s USSD and SMS APIs. For example, ACCESS
UNIVERSAL
Globe Telecom and Lazada partnered together to build the platform is accessible through any Hutch line by dialling TO MASS
COMMUNICATION
a ‘digital’ shopping mall, allowing products from Lazada CHANNELS
*6363#. This allows oDoc to reach patients without a mobile COMMUNICATION
BRAND merchants to be displayed through an interactive set-up. BRAND data connection, broadening its user base. CHANNELS
DIGITAL PLATFORM
RECOGNITION Leveraging the Globe Telecom brand to help advertise Lazada EXPOSURE AND
DIGITAL PLATFORM
AND TRUST in an offline environment helps the e-commerce platform build TRUST
trust and reach new consumers. In turn, this could bring more A LARGE oDoc runs SMS marketing campaigns to Hutch’s customer base, NEED LOW-
suppliers onto the platform. CUSTOMER enabling the platform to target the subscribers that are most likely COST USER
BASE to be interested in its telemedicine service. ACQUISITION
Consumers can use Globe Telecom’s mobile wallet solution,
RELEVANT GCash, to purchase items on the Lazada platform. This makes it Hutch and oDoc have launched joint marketing initiatives in Sri
MASS PAYMENT
PAYMENT easier for users on both sides of the platform to transact business BRAND Lanka, such as promoting the oDoc brand in Hutch reseller and
CHANNELS BRAND
CHANNELS on Lazada, improving the user experience, which helps Lazada RECOGNITION partner stores. By leveraging the well-known Hutch brand, oDoc EXPOSURE
scale supply and demand. AND TRUST can build trust among patients who may not have tried remote AND TRUST
healthcare solutions before.
HAVE
HAVE
WHAT DIGITAL PLATFORMS HAVE THAT MOBILE OPERATORS NEED:
NEED WHAT DIGITAL PLATFORMS HAVE THAT MOBILE OPERATORS NEED:
NEED
INNOVATIVE
Globe Telecom offers its prepaid subscribers promotional discounts
DIGITAL PLATFORM
AND HIGH- CUSTOMER
on Lazada, helping the operator appeal to customer segments that Hutch’s USSD integration with oDoc makes it easier for its
IMPACT ACQUISITION HIGH
DIGITAL PLATFORM
regularly shop online. customers to access the telemedicine platform. This kind of value- CUSTOMER
SERVICES CUSTOMER
SATISFACTION added service has the potential to improve stickiness among RETENTION
Hutch subscribers.
MOBILE OPERATOR
Globe Telecom and Lazada teamed up to offer Globe’s business
MOBILE OPERATOR
HIGH customers a series of benefits when selling on Lazada, such as oDoc enables patients to connect to doctors remotely via video. GROWTH
CUSTOMER A MOBILE-FIRST
CUSTOMER premium placement ads and waived sales commission up to Regular users of the service are therefore more likely to top up OF CORE
RETENTION APPROACH
SATISFACTION a certain value. This helps Globe Telecom to improve its on airtime credits more often. REVENUES
customer churn.
Hutch and oDoc formalised their partnership during the COVID-19
A TANGIBLE
Globe Telecom’s prepaid subscribers can top up their allowances pandemic. Providing a safe and easy way for its customers to SUSTAINABLE
SOCIOECONOMIC
A MOBILE-FIRST through the Lazada website. Offering this functionality provides GROWTH OF IMPACT
get medical advice is part of Hutch’s wider efforts to keep its SOLUTIONS
APPROACH customers with more ways to top up, helping the operator grow CORE REVENUE customers safe during the pandemic.
its prepaid revenues.
HAVE
HAVE
44. See https://odoc.life/2020/11/09/hutch-odoc-partnership-revolutionizes-sri-lankan-telemedicine/
34 The value of mobile operator partnerships The value of mobile operator partnerships 35You can also read
