Business

Tech Review: Nedbanks Avo super app

The Avo by Nedbank app is a super app, which is relatively new in SA. Super apps offer a range of services on one platform, like an aggregator, with a single login. They are popular in China, South Korea, and India, where users can access messaging, restaurant reservations, taxis and movie tickets with payment made directly through just the one app. Avo was released during the lockdown, making it possible to arrange grocery deliveries and essential and household services on one platform. It has more than 250,000 users. My first experience with Avo raised eyebrows. Upon set- up, it prepopulated my profile with an address I lived at more than 16 years ago, which was odd.

Once you sign up and start exploring, the apps homepage feels overwhelming. Theres a lot going on with sections, images and scrolling banners; you dont know where to look. It has four main tabs at the bottom of the screen: home; Hey Ned, a chat service; a QR code scanner for payments; and your Avo wallet. The wallet lets you top up your account, pay someone, or request a payment or cash withdrawal. On the top of the homepage, you can find categories such as groceries, eating in or out, prepaid services, banking services, a digital mall, travel, health and so forth. It takes some patience to familiarise yourself with the menu of options. On the banking tab, Im offered instant loans, a home buying toolkit and insurance. Health care offers meal plans, personal training, spa treatments and, coming soon, a pharmacy service. To the left of the app, you can access a lengthy menu, which is easier on the eye than the landing page.

My first use for the app was to order food, and I opted to collect my order. But it appears that pick- up isnt the norm. Avo support called me to make sure I knew that I didnt order for delivery. Thats a level of detail and attention to customer care that caught me by surprise. The app is free and open to everyone, not only Nedbank clients, and no Fica is required. Its convenient because it consolidates services that youd normally need multiple apps for. It takes a while to get used to it, but the individual customer care is a bonus. The app is free to download for iPhone and Android.

Nedbanks super app Avo turn two and has added well over a million customers in a year

• Nedbanks "super app" Avo has connected over 1,5 million South African consumers to 21,000 businesses.
• This is a rapid acceleration, as a year ago it had only 250,000 customers and 17,000 businesses.
• The bank reported in March that it had 101 dealers, 3,644 cars listed, and 8,000 views a day.

Nedbank's "super app" Avo has connected over 1,5 million South African consumers to 21,000 businesses. This is a rapid acceleration, as a year ago it had only 250,000 customers and 17,000 businesses on the platform. In other words, it has added well over a million customers in a year. Avo, which acts as a marketplace offering a variety of goods and services, has evolved rapidly since its launch during the Covid-19 pandemic in 2020.

What started out as a platform to buy groceries, order a meal, or access services like a plumber has broadened into offering services like selling cars through Avo Auto an end-to-end virtual vehicle mall. The bank reported in March that back then it had 101 dealers, 3,644 cars listed, and 8,000 views a day. It also went into partnership with AfroCentric, a medical aid with 3,9 million members, to have Avo effectively be its loyalty and rewards programme, and also be its digital commerce partner.

Avo also now offers a Business-to-Business (B2B) marketplace, which helps businesses grow by among other things, offering them a "efficient ways to source raw material or stock." Nedbank's move into e-commerce was something novel for the big five bank. Though it had a sophisticated digital banking service offering, it was not really known for its e-retail capacity. The group nevertheless saw an opportunity, as the e-commerce environment was fragmented, with numerous sites serving thousands of businesses.

The idea behind Avo was to rather have a single place where these businesses, both large and small, could offer their services to the public, says Ciko Thomas, Nedbank Group, managing executive: retail and business banking. For businesses on the platform, the benefit for them is that they can save on fees usually asked of by rival platforms.

Food delivery services, for example, can push costs up by an average of 30%. With Avo they can save because it offers free delivery. So far, Avo has exceeded Nedbank's expectations, as according to its 2021 annual report it said: "Our focus is to get the platform to scale, and the progress continues to exceed our expectations as our initial target of more than one million users in 2022 was achieved at the end of February 2022."

Grow your business online with Avo

Introducing Avos Business to Business (B2B) Marketplace a digital platform for all your businesss growth need. You may have heard about Avo, a super app by Nedbank that enables businesses to sell their products and services to consumers securely and conveniently, online. With capabilities such as online shopping in multiple product categories, grocery shopping, take-aways, and home services, to mention just a few, Avo is a one-stop-shop for more than half a million customers.

Now for the big news...

Avo Business will soon be launching its B2B Marketplace, designed to enable businesses of all sizes to connect securely and grow our economy. Whether your business is looking for new ways to distribute products, or for more effective and efficient ways to source raw material or stock, the Marketplace connects your business with other like-minded businesses, anywhere in SA, regardless of your sector. Avos B2B Marketplace has a dedicated Buy from Small Businesses section for business buyers to support small businesses. While small business storefronts and products will

appear in general search results on the platform, in this section, ONLY small businesses' products and storefronts are shown. It is also possible to sign-up and use the marketplace without paying monthly subscription fees. Avo Business exclusively invites all SimplyBiz businesses that sell goods or products to pre-register on the platform and set up their storefronts in preparation for the public launch - coming soon. In this first release, businesses will only be able to trade goods or products, with services to follow in the near future.

How does it work?

1. Register your company and create your storefront - any delegated employee can do this
2. Select either self-delivery or Avo Logistics.
3. Avo Business will verify your product listing or storefront and publish it once approved.
4. Receive orders - purchases work based on escrow, to protect both buyers and sellers.
5. Manage your sales strategy by adding products and managing pricing, promotions and all sales-related aspects of your business.

Question:

Evaluate the business level strategy implemented by Avo. Give your reasons.