In India, by default it is assumed that a politician is a criminal. Nearly 50% of the Member of Parliament(MPs) in India have criminal cases pending against them. Out of 539 winners analysed in Lok Sabha elections held in 2019, 233 MPs had declared criminal cases against themselves. Around 159 (29 per cent) winners this … Continue reading Crime, Money and Muscle in Indian Politics
A look at the business of Cloud Kitchens
Cloud kitchen is a delivery-only restaurant, with no dine-in facility. They are also known as dark kitchens, ghost kitchens, virtual restaurants, and satellite kitchens. Restaurants require a lot of capital to set up and run. Cloud Kitchens do not require investments in dine-in facilities which is a major investment, reducing the capital investment. This has … Continue reading A look at the business of Cloud Kitchens
“The Long Tail” – How Internet enabled low cost distribution opens up new markets.
A physical book store won't have the shelf space to keep niche books as there is a cost of shelf space and the book should have enough sales to justify it. Thus they keep books which can be sold in sufficient quantities to make it feasible to stock and display them. A bookstore has a … Continue reading “The Long Tail” – How Internet enabled low cost distribution opens up new markets.
Land Grab: The race to fill the vacuum left by TikTok
The Government of India has banned 59 Chinese Apps. One of them is TikTok which had become a national pastime. It had around 1.2 crore content creators and 12 crore monthly users.Indian users on an average spent 34 minutes everyday on it. Almost one third of smartphones in India had the app.It ruled the short … Continue reading Land Grab: The race to fill the vacuum left by TikTok
Short Primer on Network Effects
Imagine a set of very talented techies coming together and building a mass messaging app like Whatsapp. It has better features and founders believe that they will be able to dislodge Whatsapp as the dominant messaging app. But the problem is convincing a critical mass of people to download their app. While their friends and … Continue reading Short Primer on Network Effects
Universal Basic Income
In a socialist welfare state, the goal for the government is to help the poor. The government gives different subsidies to the needy section. But the problem is in ensuring that the subsidy reaches the poor and needy without leakages. This problem is more severe in a country like India with high levels of corruption. … Continue reading Universal Basic Income
Peltzman Effect & Moral Hazard
If a country were to make it compulsory to have airbags in every car, we would expect the number of fatalities to go down. Airbags are very effective in saving lives in case of a crash. But according to a study called the Peltzman Effect, the introduction of safety features like Seatbelts and airbags don't … Continue reading Peltzman Effect & Moral Hazard
Retailers vs Traditional Consumer Brands.
When we go to a grocery store to buy hair oil, chances are we will pick a brand which is familiar and the one which we normally use. Reason is we trust the brand. We don't want to experiment. Fast moving consumer products like Hair oil are a very small part of our personal household … Continue reading Retailers vs Traditional Consumer Brands.
Rise of Organised retail and opening up of FMCG space.
Fast Moving Consumer Goods (FMCG) like soap, hair oil, beverages etc have traditionally been sold in small Mom & Pop kirana stores in India. These stores have limited shelf space and working capital. They tend to stock only a few brands in each category. Ideally it is from the well established FMCG companies like Hindustan … Continue reading Rise of Organised retail and opening up of FMCG space.
Explained: The making of the US Corporate Debt Bubble…
Joint stock company is the bedrock of modern Capitalist society. A joint stock company is owned by a large pool of shareholders and the Board of Directors elected by the shareholders look after shareholder interest. There is an independent management which looks after the day to day working of the company. To align the interest … Continue reading Explained: The making of the US Corporate Debt Bubble…