of Innovation Fetchr represents a disruptive innovation for both merchants and consumers in the transport and logistics industry
Fetchr represents a disruptive innovation for both merchants and consumers in the transport and logistics industry. The company’s objective is to serve the demands of last-mile delivery services in the United Arab Emirates market while enhancing the growth of e-commerce through the improvement of service delivery. Fetchr is a disruptive technology since it has moved steadily to deliver performance that satisfies the needs of both low- and high-end customers, hence threatening the existence of established firms. Gemici and Alpkan (2015) hold that disruptive technology focuses on neglected markets and strives to create, deliver, and offer value for marginalized consumer segments. Fetchr is a disruptive business because it exploits the market neglected by traditional industry merchants by effectively addressing the errand needs of the low-end consumers. The company disrupted the established traditional forms of logistic processes, which utilized physical addresses in serving high-end consumers by focusing indoor and customized location package-delivery services. Christenson (2015) describes the characteristics of disruptive innovations that support Fetchr performance metrics, which include a venture into non-attractive market areas, adoption of technological advancement, and exploitation of lower margin business opportunities to destabilize incumbents.
Fetchr focused on exploiting non-attractive markets to satisfy the needs of the low-end consumers with a focus on low pricing policy. This market penetration strategy considers consumer problems as a key success factor in developing a market-fit product. The low-end consumers face a significant challenge in transporting or delivering products from point of sale to their premises. By identifying this challenge, Fetchr developed last-mile delivery services to cater for the needs of this population. As competitors experience challenges in expanding their service lines to cater for low-end customers, they provide opportunity and allow Fetchr to provide valuable services to the target customers. However, Fetchr has developed a strong market brand that appeals to all consumers including incumbents’ high-end customers.