Amid the digital shift, music subscription provider AudioWav Media Inc. is now venturing in financial technology (fintech), through a self-developed mobile application, with an initial investment of $3 million.
AudioWav President and Chief Executive Officer Carlos G. Hinolan told the BusinessMirror that fintech is a major component of its food delivery service application (app) called Poodtrip.com.
“The fintech part is very important for us to be able to put it (app) together,” Hinolan said. “It (fintech) allows the economy to open up again because everything is going digital and online.”
The payment solution is “seamlessly” integrated in the mobile app, he said, noting that among its partners are Visa, G-Xchange Inc. (GCash), WeChat and
Alipay.
“Moving forward, it is still going to improve further because it needs to be digital all the way,” Hinolan added.
Currently, Hinolan said AudioWav is also working with Union Bank of the Philippines and GCash to disburse the funds to Poodtrip.com’s partner merchants and drivers, respectively.
Hinolan said that the firm is keen on onboarding additional payment gateways—via partnerships with more financial institutions—to the app to provide more options for the customers.
Asked about the investment, the AudioWav chief said that the investment covers the initial development of both the app and the integrated payment solution.
“You need $3 million to mount a set up like this and have it decently running,” Hinolan said.
Additional funding is needed for spending in acquisition, marketing and content, among others, he added.
Still, Hinolan said that the company is expecting a return on investment by next year because it is using a sustainable business model.
He explained that the app can be scaled up easily after it has been established fully already.
“It is easy to actually open it to other countries and scale. It now becomes a copy-paste system.”
With this, AudioWav is expecting to branch out to Indonesia by next year as well.
The technology firm has already penetrated the Indonesian market after inking a partnership with train operator PT Kereta Commuter Indonesia and transportation media network Via Eight in 2018. AudioWav is set to install a proprietary audio system in all 80 trains operated by PT Kereta in five years.
Hinolan is eyeing to utilize the same system to advertise the food delivery service app.
Poodtrip.com is set to be officially launched next week. The app, however, is already available for download.
The app has registered 2,000 downloads so far, but AudioWav is optimistic that this figure could reach 1 million by first quarter of 2021 given the demand in food delivery, especially in Metro
Manila.
So far, AudioWav has 5,000 employed drivers for the delivery and they are expected to grow to as much as 50,000 by the second quarter of next year. There are 180 merchant partners—comprising established restaurants and home-cooked food sellers—onboarded in the app for now.
The firm is eyeing to have 8,000 by mid-2021. With this, Hinolan said that the app is also addressing the surge in unemployment in the Philippines given the generated job opportunities.
Poodtrip.com is currently available in the capital region. Hinolan said that the app is in the process of activation in Cebu and Bacolod. By mid-2021, the food delivery service app is expected to be available nationwide.
“There is still a gap that needs to be filled in terms of food delivery. Most of the major players in the food delivery platform are all foreign capital,” Hinolan said.
The AudioWav official said that it took a year in preparation before the app was released.