Treatwell: A Company Worth €34 Million in Barely 2 Years.
Ever heard of Treatwell? I will be honest I did not. Nevertheless it is a fast growing and interesting company to look at. The company has had a 425% year-on-year growth since they launched in 2013. Recently, the company has been acquired by Wahanda’s, after a $46 million cash injection and a $171 million majority acquisition.
But how was Treatwell able to grow so big so quickly? In my opinion there are two major reasons for Treatwell’s success. At first, Treatwell’s first mover advantage allowed the company to dominate the online marketplace. Treatwell is the first online wellness and beauty marketplace in the Netherlands. Customers can make an appointment at a hairdresser, a massage salon or a waxbars on the site. After visiting a salon, the customer can leave a review at the site. Secondly, Treatwell started with a very talented and diverse team. The team includes an ex CFO of booking.com, a former senior executive of Procter & Gamble and a co-founder of Just-Eat Benelux.
Actually the business model is not new, the food industry is already using it for years. Iens, for instance, allows you to search for restaurants in different cities and offers a great variety of cuisines. Each restaurant is reviewed by customers, which makes it easier for potential customers to choose. This is exactly what Treatwell is doing, only in a different industry. With this sort business model’s it is extremely important to be the largest. Once you are, you are not getting out of that position, according to Laurens Groenendijk. Speurders failed to dispel Marktplaats and Just Eat to dethrone Thuisbezorgd.
This is the same reason why Wahanda’s acquisition is no surprise. Businesses like Wahanda’s (a Japanese competitor) are built to around economies of scale. “By bringing Wahanda and Treatwell together, we have formed the undisputed leader in the European market.” said Laurens Groenendijk, co-founder and CEO of Treatwell. “Our geographical coverage and our cutting-edge technology complement each other perfectly, as do our cultures and ambitions. We are thrilled to be part of this exciting venture.”
This is just one example of how our consumer economy is being disrupted by technology. I welcome this kind of disruptions, for me it makes it easier to choose. Besides, I think it will ensure a higher quality on the long term.
References:
European Salon Booking Site Wahanda Buys Dutch Rival Treatwell For $38M
http://siliconcanals.nl/startups/het-geheim-van-startup-treatwell-in-krap-twee-jaar-naar-34-miljoen/
Using the Internet for Health Information
Did you ever lost yourself browsing through the Internet searching for your illness symptoms? I bet we have all done it: You are not feeling well and instead of visiting your doctor you turn to your computer and rely on the magical powers of Google. But watch out before you know it you are cyberchondriac.
With the increasing availability of online medial information sources more and more people are using the Internet to find health related information. The actual amount of Internet users searching for health information online varies across studies between 60 and 80%. But all studies agree that online health information has become one of the most important information sources.
Often people use the Internet to diagnose themselves resulting in the most terrible diseases. Microsoft studied the probability that the word brain tumor would come up in response to the search term headache. There were just as many results linking headaches with brain tumors as with caffeine withdrawal (0.26). While the change of having a brain tumor is much more rare.
Using the Internet for self-diagnosing can in some cases even result in cyberchondria. But what is cyberchondria? The term or phenomenon cyberchondria derives from the terms cyber and hypochondria. It is an “unfounded anxiety concerning the state of one’s health brought on by visiting health and medical websites”. Some people even stated that the Internet is making us (feel) sick. And like all other markets there are people who benefit from cyberchondria and making money out of it. Because when we think we are ill we tend to buy wrong medicines online or adopt expensive and pointless home therapy.
On the other hand it is maybe just a matter of time before the Internet would offer more reliable information. Mr. Horvitz is a computer scientist with a medical degree and is working as a researcher at Microsoft. He stated that it would be possible to create search engines that are able to detect medical queries and offer advise that not automatically make you fear the worst.
In my opinion the Internet is great for gathering information but please leave the real work to the doctors. But what do you think? Can we trust the Internet for health information? And to what extent will the Internet replace doctors in the future?
References:
Xiao, N., Sharman R., Rao H.R., Upadhyaya, S. (2012) Factors influencing online health information search: An empirical analysis of a national cancer-related survey. Elsevier
http://www.nytimes.com/2008/11/25/technology/internet/25symptoms.html?_r=0
http://www.menshealth.com/health/self-diagnosis-internet
http://theinternationalpostmagazine.com/23/03/2015/frontpage/online-self-diagnosis-cyberchondriac/
Information Strategy 
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