The Five Types Of Startups To Watch In 2022: Part Two
In part one of this article series, I painted the current picture of the world we live in. A big consequence of the pandemic, for the realm of innovation, has been the focus on both individual challenges (e.g., live healthier, connect with friends) as well as systemic challenges (e.g., climate crisis, privacy and the abuse of smart technology).
I believe startups in 2022 and beyond are aware of these two types of challenges and will address them jointly. For 2022 and beyond, I see five types of startups to watch for in 2022. Having already gone in-depth into the triple p startup and underdog types of startups in my last article, I would now like to define the hyper-convenient startup, the self-service-as-a-service startup and the ethical tech startup.
3. The Hyper-Convenient Startup
During the lockdown, sudden new needs surfaced: How could you buy a thermometer to measure your fever and get it on the same day when you are in quarantine? How could you get your dog’s favorite snacks if the specialty store is closed?
By the middle of 2020, Uber Eats had already introduced pharmacies and pet shops to its delivery portfolio. And from these niches, a new type of startup emerged that delivered whatever you needed in the city in under half an hour.
It's now the start of 2022 and more players have joined this newly-created industry. The promise of not having to leave the house and have items delivered to you within 10 minutes is a new level of convenience that customers have grown used to and will continue to expect.
One example of a fairly recent hyper-convenient startup is Getir; they started in Turkey in 2015 as ultrafast grocery delivery that combined a fleet of scooter and electric bicycle delivery drivers, dark stores (within-city warehouses for local distribution), regular promotions to customers and a promise of delivery from five to 20 minutes to your doorstep.
The ability to deliver just about anything is a serious competitor to the current business model of most supermarkets. Though, in terms of market share, the micro-delivery companies will probably only appeal to a certain segment. Still, these consumers are a growing segment, so expect a lot of brands to start experimenting with this model.
Matching these high expectations from customers will be one of the hardest challenges of 2022 for corporations and new startups launched in this new climate. But take it as a learning experience; apply it to other products, services and margin-rich niches. Be aware that convenience is the new premium.
4. The Self-Service-as-a-Service Startup (SsaaS)
Another way companies are providing value is by empowering customers to take control themselves through self-service. Services once limited to specialists are being enabled by technology to come to customers directly. This is especially true with services within the healthcare domain that are quickly catching up with self-service trends.
According to Clayton Christensen, "Disruption allows less skilled people to do more sophisticated tasks." Why go to a test center if you can easily test for Covid yourself? The SsaaS companies own their service journey and deliver directly to the consumer so they can take control of the entire experience.
An example of this type of service is NøIE Skincare. Getting personalized advice and uniquely formulated products for your skin was once a luxury only the most privileged had access to. The secret to the Copenhagen-based startup is an easy-to-use online diagnosis tool, one that combines personal skin issues with specific goals you want to achieve, resulting in a suggested custom skincare routine with catered products. With the collected data on customers’ skin profiles, the company can evolve its product line, offers and marketing strategy.
Designing for self-service means answering the questions your users have about your product and service. Map your entire service architecture and understand where you can deliver value directly. Another tip: I believe self-health and wellness should be embedded somehow in just about every industry.
5. The Ethical Tech Startup
The promise that technology only makes life better by default has proven false and has already become a systemic problem. A dark turn on intelligent technologies with stories of rigged elections and AI-generated fake news has scared away many consumers. How do we know tech will be used for our good? Despite some reservations, there are many tech startups that are trying to balance some of the public perceptions of the industry.
Greyparrot AI is an example of one that combines artificial intelligence and computer vision software to fight one of the world’s biggest issues: Waste. You may have heard of new high-tech supermarkets that recognize what you buy, so you don’t have to scan anything. Imagine this technology applied in sorting and identifying waste streams. Greyparrot’s solution identifies 100% of waste streams and gives the relevant data back to business, so manual labor is reduced and better recycling happens. What was once a cost becomes a new revenue stream through materials, while saving money on the workforce.
But tools are only as good as the hand that yields them. Think about how to safeguard ethical design in your startup. A chief ethical officer may be a role to consider; partner up with those who are experts in order to leverage the best of the triple bottom line: profit, people and planet.
Concluding Advice
Put purpose at the core. A beautiful interface won’t make the cut anymore. Genuine brands that commit and walk the talk have the upper hand. Choose or define a mission that speaks to the DNA of your company from the get-go.
Make space for diversity and sustainability in your process. There is great value to be captured through small niches and big business in the smallest niches. Don’t leave anybody behind. Starting small may just be the secret to success in the startup world.
Use technology as a bridge. Once you defined a way to go and issues to address, use data purposefully to unlock new market value, making waves where you pass.
