Don’t forget the unicorns, work with them instead.
Last week, James Quinn, the Group Business Editor of Telegraph Media Group, wrote that Domino’s Pizza is ‘far more valuable a digital company than any tech unicorn’ (read the full piece here). It is a good opinion piece, and we agree that Domino’s has seen major success in their investment in digital and mobile channels (we like what they did with their app, we even wrote about it here). However, it is rather concerning that one of our country’s leading business voices doesn’t seem to buy into the future of London: ‘so-called unicorn tech companies’.
‘Unicorn’ tech companies help thousands of non-tech corporations reap the benefit of new technology, to be more efficient in how they deliver their goods and services and generate more profit. Company valuations are based on expected future cash flow, and the high valuation these ‘unicorn’ tech companies enjoy comes from developing good products and services that help other businesses be more efficient, generating more profit.
Domino’s Pizza’s success in tech investment is only possible because of the exact ‘unicorn’ tech firms which the author shunned. Twitter, which is a channel Domino’s excel on, was once a ‘unicorn’ in 2009. Apple, who made these computers in our pockets possible, was a ‘unicorn’ back in 1978. And to enable one-click ordering, Domino’s will have to work with ‘unicorns’ like Stripe and judo.
Domino’s approach is not revolutionary, it’s an excellent story of how a big retail brand is making efficient investments to better serve its customers’ demand, instead of making short-sighted judgements and under-investing in infrastructure and people that can keep up with our rapidly changing world. (You can read more about how 76% of UK top 100 retailers are failing at that here.)
Winners invest early in tech. Losers wake up realising that a tech unicorn has just eaten their pizza. So, despite what Mr. Quinn said, don’t forget the unicorns, work with them and win on mobile instead.
About Judopay · Judopay simplifies in-app payments, enable frictionless checkouts and intelligently prevents fraud for leading companies globally. Our payments and mobile experts help guide businesses and their development partners to create best in class apps to make paying faster, easier and more secure. Founded by serial financial technology entrepreneurs in 2012, Judopay is backed by leading venture investors and supported by banking and card scheme partners to offer in-app payments that are simple, frictionless and protected.