Part 1 — (Click here).
The internet is full of stories about successful technology, but what often goes unnoticed is the other side — the failures.
Some argue that if there were no data storage devices, data leaks wouldn’t happen, much like saying global warming wouldn’t exist if humans hadn’t evolved.
Technology, like humans, has evolved, contributing to smarter consumption and delivery.
Just as humans experience setbacks to shape the future, technology faces obstacles too. Let’s look at five notable tech failures in the emerging technologies space:
1. Foodpanda:
- In 2020, Foodpanda, a major food delivery platform failed to leverage the capabilities of its tech platform and hence exited India. The business could not withstand the intense competition and high operational costs.
- Learnings: Growth at all cost, without proper market research and adapting to local preferences can lead to failure. Defining a target audience hence, TAM, SAM, SOM is crucial in understanding the viability of a technology.
2. Yebhi.com:
- Yebhi, an early e-commerce player in India, shut down in 2012 despite initial success. With no concrete reason, various sources cite issues like fierce competition, and failure to adapt to changing consumer behavior.
- Learnings: The dynamics of tech are complex, innovations can become obsolete fast. While the focus should be on innovation, staying agile in a dynamic market is equally important. It is crucial to be at the right place, at the right time.
3. Google+:
- Google+, launched as a potential Facebook competitor, failed to gain traction and was shut down in 2019. While the tech was as good as facebook, the consumers never felt that way.
- Learning: While the creator might never despise his invention, the users can. A technology tho revolutionary, can fall short of its purpose. Offering a clear and distinguished value proposition is necessary for success.
4. Theranos:
- Theranos, a health-tech business, faced exposure for flawed procedures and fraudulent claims despite promising revolutionary technology.
- Learnings: Honesty to cause and acceptance is crucial to have another chance at innovation. Tech innovation is an uncharted area, and does not always lead to success. Founders of Theranos were sent to Jail.
5. Juicero:
- Juicero, a connected juicer with expensive juice packs, failed to materialize despite high anticipation.
- Learnings: Innovators must consider accessibility and affordability for end-users. While it is understood that innovations demand high capital investments, an attempt to recover that cost from consumers via high prices in a short time frame can play against the business.
For D2C brands to scale, they need to pre-plan the needs of capital from investors. Businesses must plan to preserve adequate capital after investing into growth to absorb the shocks of the market. Having sufficient capital at all times can help brands steer the headwinds to scale the business.
Take away:
While these failures might seem discouraging, they are actually invaluable learning opportunities. By understanding the “why”, investors and entrepreneurs can make informed decisions, build more resilient businesses, and navigate the ever-evolving tech landscape.
The future belongs to those who learn from the past, innovate responsibly, and prioritize user value.
Author:
Shanidhya Bhalotia
Kanuj Jadwani
