For a while, pet-related startups seemed to be a rarity. Ever since the Pets.com debacle in which the venture-backed startup went from a Nasdaq IPO to liquidation in about 9 months, entrepreneurs have given pet-ecommerce a slightly wider berth.
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Looking back, it was a difficult time for online startups in general. Not to mention one that spent US$1.2 million on a super bowl ad without any profitability in sight, right at the dot-com bubble’s popping point. Since then, the online economy has stabilised and with a larger audience, we’re seeing a litter of pet-related ventures making their way online.
Perhaps still a niche market, there is however opportunities for entrepreneurs with a sober outlook on p(et)commerce. We’re seeing innovation in business models. While straight-up ecommerce has made a return — startups learned from the Pets.com example: don’t spend US$11.8 million on advertising at revenues of US$619 000 — founders are trying out new ways of cashing in on the relationship between pets and their owners.
A Birchbox for dogs? With 80 million pet owners in the US alone, it’s not such a crazy idea — there’s bound to be a few people keen on treating their dogs to a monthly box of goodies. In South Africa, we’re aware of at least three startups working on localising the model — Lucky Dog seems to have a leg up currently. Abroad, Barkbox leads the way.
Pintofeed (US) is crowdsourcing funds through Indiegogo to bring a remote pet-feeder to life. The gadget and phone app combo additionally keeps pet food fresh and can monitor food intake — and compare it to the national average. The idea is also being piloted in South Korea, where SinglePet recently pitched the idea to investors at the popular beLAUNCH startup conference.
Going on holiday? Forget the kennel, DogVacay is taking the Airbnb model and applying it to canines. The Andreessen Horowitz backed startup which recently secured an additional US$6-million in funding, finds boarding for dogs in real homes.
Don’t have time to take your dog for a walk? For that, there’s Swifto. The startup that connects dog owners with screened walkers, provides real-time GPS tracking and picture updates to owners through the Swifto app. Swifto recently received US$2.5-million in backing from Benchmark Capital, incidentally one of the VCs that’s also betting on DogVacay.
One of the few companies that has been able to successfully monetise QR codes, and in the pet industry of all places, is PetHub, the smartphone scannable ID tag for your pet. Forget microchip implantation, the cost effective tag attaches to your pets collar. If Fido wanders off, a good samaritan with a smartphone can scan the tag and call up a profile with your contact details and other information. Having proved successful in Europe, the model is open for replication in other markets.
Part of watching these trends emerge is the opportunity to implement or modify them for a local market where there’s a gap. Have at it.
