How To Start Aggregator Business? Aggregator Business Model Examples.

Table of Contents:

1. Aggregator Model

2. What Is Aggregator Meaning In Business?

3. Aggregator Business Model Examples Revenue

4. How To Start Aggregator Business In India?

FAQs On Aggregator Business

1. Aggregator Model

Innovation is producing new value or using an existing value differently. Across many industries, companies are using innovation to their competitive advantage, and this is being reflected by the change in their business models. One such business model which is very relevant in the ‘sharing economy’ is the aggregator business model.

Suppose you are an investor, and you see a property lying vacant. The owner has no money to develop the property. So you give the owner funds to refurbish the property and convert it into a small hotel. You take care of the marketing part, and the business is up and running. Over a period of time, you take on board several other properties. So, this type of business is an aggregator business model. This is the strategy that is used by Oyo Rooms.

The other type of business model is the marketplace business model. It has a platform where it allows sellers to promote their business or services. The revenue generated is from commissions that are charged for each transaction.

2. What Is Aggregator Meaning In Business?

An aggregator business model is like a network model where a firm collects information about a particular good or service provider. It makes the provider their partner. Many startup companies have used this model to become billion dollars companies today. A good example is Uber, the world’s largest taxi company, but it does not own any vehicles. Another is Zomato, which is a food aggregator business.

Online aggregator business is growing in this digital era and it has transformed the industry. It is seen in many sectors like cabs, hotels, and travel. However, it has some drawbacks also. If a service like an automobile workshop or a barber enlists itself with an online aggregator, it destroys the business’s brands and also reduces the margin.

This business model is used by different ventures who accumulate data on different products or services through an online platform. Aggregator businesses are basically like advocates; they organise a highly unorganised and populated sector

Advantages of Aggregator Business Model

1. Less investment, since you don’t have to put in all of your own money.
2. Less work because you will be working in a partnership.
3. You can easily expand your business.
4. It saves customers the time that they would have otherwise spent, hopping from site to site and comparing prices.
5. It ensures uniform quality and price. Customers can get the best price within their budget.
6. It makes it easier for service-based businesses to find customers and vice-versa.
7. You can include reviews to make it easier for customers to choose a trusted product or service.

Important Points For Aggregator Business Model

1. In this model, the service providers will act as your partners in the business.
2. All the service providers should be from the same industry, like Airbnb works with hotels, Uber with taxis, etc.
3. Brand building activity take up a substantial portion of the revenue in this kind of a business. Branding activity has to be very specific and aims to target the touch point of every customer and create a recall value.
4. You have to make sure that the partners provide you with a standard quality.
5. You must have a contract with the service providers where all the terms are provided. This contract generally includes branding, quality parameters, and commission terms.

3. Aggregator Business Model Examples Revenue

By this time you must have a clear idea about the aggregator business model, but do you know what its revenue stream is? The revenue model depends primarily on the business it offers. Aggregators provide service or offering providers with the customers, and charge some pre-decided commission in return. This is how Uber operates.

Another method is that the partners quote a minimum price for the services, and the aggregator adds their surcharge and quotes the final price to the customer. This is the business model for Oyo.

4. How To Start Aggregator Business In India?

It first begins with market research. The market research will identify the highly unorganised sectors. You should study the competition and pick up a unique niche. You have to aggregate goods or services from different providers and sell them under your own brand name. Once you start getting customers, you have to retain them by offering excellent quality service. Here are some of the best aggregator business ideas you can choose to build your own online aggregator platform:

1. Audience Aggregation

This is a very innovative business idea based on the concept of inbound marketing. It focuses on capturing the attention of a group of people with a similar profile and then selling that captive audience to an advertiser or marketer. The marketer can, in turn, tweak his product or services to cater to that audience, based on various factors like age, their likes or dislikes, etc. This business has two benefits. First of all, this gives something of interest to hook the audience. Secondly, the advertiser gains the attention of the audience, which makes it easy for him to sell something.

2. Fashion Trends Analysis

It is a business based on data aggregation. The fashion industry is very dynamic in nature, and there is a lack of information available to designers and retailers to know and respond to the current trends. So, there is a huge opportunity out there. You can establish a company that will aggregate the data, and help the fashion companies address the target market, know about the competition, and so on. It can also advise on fashion trends and developing product assortments. There are several online tools available, like Google Trends which will help you in fashion forecasting analysis.

3. Grocery Aggregator

According to a report by India Ratings and Research, the grocery market in India is set to increase from the current $ 600 billion to $ 800 billion by 2024. You can start a grocery aggregator business by listing nearby mom-and-pop stores to a user. You can offer a range of services to conventional Kirana stores such as advising them on layout, supply chain, and marketing. This will create more footfalls and increase sales. You can also create an app, and a customer can click on any of the grocery stores listed on the app. After that, he can add any item from the online menu to the cart.

4. Healthcare Platform

Data aggregation is the process of collating information from several databases to produce compact and shareable information. From biotech companies to care providers, the healthcare sector needs actionable data to help them in decision making. You can launch a cloud-based platform that will aggregate and share patient health data. It will collect this information from health care providers like hospitals so that the best treatment plans can be prepared for the patients. It will also help physicians to make clinical decisions. In these times of social distancing, your aggregated patient health records platform can connect remotely with patients and help in more personalised care for them.

5. Online Cab Booking

Do you want to found the next Ola or Uber? The cab space in India is heating up and has seen phenomenal growth in the past few years. Any entrepreneur can start an online cab booking business by building an app. As an aggregator, you will act as a mediator between the taxi owners and the passengers. You will receive a commission from the car owners for every trip. By matching the demand and supply, you will create a win-win situation for all the stakeholders-the cab drivers, the users, and ultimately yourselves. You can use the revenue generated to rapidly expand your fleet, and also widen your reach geographically.

6. Advertising Aggregator Business

You can start an online advertising network that will connect advertisers to those websites, where they want to advertise. Your principal job will be to collect ad space and sell them where it is needed, by using a central ad server to deliver advertisements to consumers. Or, you can be an aggregator, and manage the affiliate programs of the e-businesses. For this, you should have easy to use tools to set up links and provide deep links to specific products.

Another business idea would be to aggregate good content that is focused and has a dedicated audience; you can generate a lot of income in advertisement revenue. The winners in a global economy will be those businesses who can collaborate effectively, and share their resources to give the maximum value to the consumers. The aggregator business model shares this philosophy and is disrupting all the existing models across sectors. In a sense, this will be the ‘new normal’ in the future.

Also read:

1) Payroll – Definition, Processes & Solutions
2) Where Do the Best Business Ideas Come From?
3) Does Commercial Solar Power Make Sense For Businesses?
4) How Small Businesses Afford Digital Marketing?

Stay updated with new business ideas & business tips with OkCredit blogs in- English, Hindi, Malayalam, Marathi & more!

Download OkCredit now & get rid of your bookkeeping hassles.OkCredit is 100% Made in India.

FAQs On Aggregator Business

Q. How do I start an aggregator business?

Ans- All the service providers should be from the same industry, like Airbnb works with hotels, Uber with taxis, etc. Brand building activity takes up a substantial portion of the revenue in this kind of business.

Q. How do aggregators make money?

Ans- An Aggregator builds up his brand and attempts to attract customers via different marketing strategies. Customers purchases through the aggregator. Partners get their customers as promised. The aggregator then gets the commission.

Q. How do you become aggregator?

Ans- To become a payment aggregator in India, the bank and non-bank providers need the authorisation of RBI's, it must also be a company registered in India, and would have to localise payments data, having a net worth capital of Rs. 15 crores.

Q. What are aggregator companies?

Ans- An Aggregator Model is basically a networking E-commerce business model where a company, known as an Aggregator, collects (or totals) data pertaining to goods or services presented by various competing websites or application software (or Apps) and demonstrates it on its own website or App.

Q. Who are online aggregators?

Ans- Online aggregators are websites or apps that gather information from various enterprises and curate them as per your needs. This also allows you to correspond the prices and features of products or services all in one place.