Johannesburg, 19 Aug 2016
Digital start-ups in South Africa face long hours and a fair amount of stress, but the barriers to entry are low and there is good potential for growth, says Domestly, the winner of this year's MTN Business App of the Year award.
On-demand cleaning services app Domestly, named winner over 450 entries in the fifth annual MTN Business App of the Year award, connects cleaning professionals directly to businesses and homeowners via mobile. The innovative app secured a prize of a trip to Silicon Valley, exposure, and the MTN badge of 'APProval' through its win at the recent competition finals.
Co-founders Berno Potgieter and Thatoyaona Marumo say the MTN Business App of the Year win has given the company invaluable exposure, and the prize of a trip to Silicon Valley will go a long way to adding to their knowledge and exposure. They described their win this year as "a great validator for us after all the hard work, sweat, pain and the roller coaster ride we have been on in the past two years".
The co-founders, now both aged 26, came up with the concept while still studying at Stellenbosch University. "We started thinking about new business models while we were at university, because we realised it was difficult to find jobs in the formal sector. Domestly was first built as a Web site using free open source tools available online," says Potgieter.
With the site built to validate the business idea, it became easier to approach potential funders. Potgieter recommends that any would-be digital entrepreneur go this route.
With some funding in place, Domestly secured the services of a team of developers to redesign the site and develop Android and iOS apps, as well as USSD functionality. "One big challenge for us was ensuring that the cleaners on the supply side were able to connect and had the necessary mobile functionality. We equipped the first few cleaners with smartphones and contracts, only to find that coverage could be a problem in some areas. Around 70% of the cleaners use feature phones, and many have data and coverage problems, so the system had to accommodate these unique challenges," he says.
Getting around these challenges and building a sustainable business takes 12-14 hours' work a day on the part of the founders. "It was harder than we anticipated. Start-ups need to understand that funding is hard to come by; it takes a long time to become profitable, and there are many unexpected challenges along the way. We have found that networking through developer and incubator hubs is very helpful in keeping you motivated - it's good to know you aren't alone," says Potgieter. Having launched with its current system in September last year, Domestly is entrenching itself in the Cape Town area and is now expanding in Johannesburg, Midrand and Pretoria. Around 5 500 individuals and businesses have signed up to use the service so far, and over 600 cleaning staff now have sustainable jobs as a result.
Their earnings have increased significantly, says Potgieter. "Where some were unemployed or under-employed, and some were earning as little as R2 500 a month, our supply-side contractors now control their hours and earnings, and they save on transport costs because they can choose to work only in certain areas."
The Domestly system allows customers to rate each cleaner, which means top-ranked cleaners can increase their fees accordingly. "Our top-ranked cleaner commands R320 a day and is booked out three weeks in advance," he says. "Her previous employer has asked her back, but now her earnings are so much higher and control over her working conditions is in her court, so she won't consider it."
For individuals and companies, hiring a cleaner only when the service is needed is proving more cost-effective and convenient than traditional engagements with full-time staff, says Potgieter. "We foresee strong growth in Johannesburg and Pretoria, and we have also had enquiries from Europe and elsewhere in Africa."
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