After handing over its underperforming grocery price tracking app to software solutions business Trienpont, retail intelligence company Frugl (ASX: FGL) has found a new avenue for its tech expertise: developing retail grocery marketplaces for other companies. One of them being the United Arab Emirates-based retailer 1004 Gourmet.
With a project price tag of $81.9k, Frugl and 1004 Gourmet have signed an agreement to create an integrated grocery retailing platform. And to incentivise timely delivery, the agreement includes provisions for late payment fees amounting to $7.5k if the project surpasses the six-month deadline.
1004 Gourmet’s Director, Kenny Woo, said, “The partnership established between Frugl and 1004 Gourmet exemplifies the company’s dedication to affirming its presence and escalating its footprint within the vibrant Asia Pacific and Middle East markets”.
Established in 2008, 1004 Gourmet has emerged as a key player in the UAE’s grocery landscape, specialising in the distribution of Asian culinary essentials. With strategic headquarters in Dubai, the company has expanded its retail operations across Dubai and Abu Dhabi while catering to a robust wholesale market through its dedicated HoReCa (Hotels, Restaurants, and Catering) division.
In the future, 1004 Gourmet plans to expand its retail footprint and bolster its wholesale division. And Frugl, with its expertise in grocery mobile app development and data analytics, is poised to play a pivotal role in this expansion.
Though the contract fees is not much for the Company, which incurred losses of over $800k in H1 FY23, it sees scope in the agreement. Frugl will design and develop an integrated retail grocery web store and mobile app within a timeframe of six months. The payment structure involves a 25% deposit at the start of the project, followed by subsequent payments upon the completion of specific project milestones. This systematic approach ensures accountability and incentivises progress.
The project timeline encompasses critical phases, including one month for architecture, planning, and design, three months each for the development of the web store and mobile application, and one month for submission and acceptance on the app store. Additionally, Frugl offers two options for additional support, ranging from three days (24 hours) at $1,564 to six days at $31.2k per month, allowing 1004 Gourmet to tailor the level of assistance according to their evolving needs.
Frugl’s collaboration with 1004 Gourmet is not limited to the creation of the Integrated Retail Grocery Marketplace. The partnership seeks to foster a long-term relationship, exploring avenues for expanding the scope of services.
Leveraging Frugl’s extensive expertise, the companies aim to develop a state-of-the-art retail grocery marketplace, geared to meet 1004 Gourmet’s specific requirements. Plus, it would give Frugl a second shot at virtual grocery retailing with little liability.
Alinda is a Business Reporter for The Sentiment
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