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YC Partner Adora Cheung - https://twitter.com/nolimits - talks to Gobble (YC W14) founder and CEO Ooshma Garg - https://twitter.com/ooshma You can find additional content here: https://www.startupschool.org/videos/54 Learn more at https://www.startupschool.org/
Adora Cheung introduces Ooshma Garg, the CEO and founder of Gobble, a meal delivery service that provides 15-minute dinners. She shares her personal experience as a satisfied customer and highlights Gobble's impressive growth since its inception in 2011, including its revenue milestones and the challenges faced along the way.
"thank you for coming today my name is Dora I'm one of the partners here at Y Combinator and today we're going to talk with have a conversation with ich Magog who is the CEO and founder of gobble which..."
Adora Cheung discusses the evolution of Gobble's business model with Ooshma Garg, emphasizing the importance of grit and determination in entrepreneurship. Ooshma reflects on the ups and downs of her journey, setting the stage for a deeper conversation about her experiences and insights.
"couple things one is evolution of her business she's mostly been in the food business but it's iterated her business model many times and so I think it'd be interesting to talk about that and then to ..."
Ooshma Garg recounts her first entrepreneurial venture while studying at Stanford, where she attempted to help students secure jobs in finance and law. She shares the challenges she faced, including funding difficulties and the realization that the business model was not aligned with her original vision.
"talk about so with that I would love to welcome you to the stage thank you [Applause] so welcome oozma thank you for having me thank you for coming so maybe we can just briefly start from the very beg..."
Ooshma reflects on the hard lessons learned from her first startup, including the impact of external pressures from paying clients on her business's mission. She discusses the emotional toll it took on her and the eventual decision to sell the company, emphasizing the importance of staying true to one's values.
"you think that you should just move on from that idea sure so back when I was at Stanford they started this company out of my dorm room and fun visual is that I had this like you know 150 200 square f..."
Ooshma shares how her personal health struggles during her first startup led to the creation of Gobble. A pivotal moment with her father's visit and home-cooked meals inspired her to focus on the importance of nutrition and family dinners, ultimately shaping Gobble's mission.
"group Stanford women in business so we were matching people to banks and law firms and consulting firms and and I worked on that for three years I bootstrapped it and no one would fund me they told me..."
Ooshma discusses the initial concept of Gobble as a marketplace for home-cooked meals, highlighting the evolution of the business model over the years. She outlines the various iterations, from catering to personalized dinner services, leading to the current 15-minute meal prep concept.
"what ended up happening is I learned the hard lesson that whoever pays you kind of owns you and determines how your product evolves so these banks and consulting firms and all of them were paying me a..."
Ooshma recalls her first users and the importance of feedback in refining Gobble's offerings. She shares a memorable encounter with an early adopter who provided valuable insights, illustrating the significance of customer engagement in the startup journey.
"of person who you know was just gonna do something to make money I want to do something that I believe in so in our third year we were taking off with law firms there are thousands of law firms and on..."
Ooshma reflects on the unscalable marketing tactics she employed to attract early users to Gobble. She discusses the effectiveness of grassroots efforts, such as distributing promo cards and engaging with local community groups to drive awareness and growth.
"think you're crazy most people don't care about you and so you're the only thing that keeps yourself going and maybe your co-founder your partner but your partner's sick of hearing about it and your c..."
Ooshma emphasizes the importance of community engagement in Gobble's early growth. She shares her experiences of collaborating with local businesses and groups to promote Gobble, highlighting the value of building relationships in the startup ecosystem.
"make sure we all ate home-cooked food and like real good food so and your parents always know when something's wrong you can't lie to them it's just a matter of time so um so anyways he like got on a ..."
Ooshma Garg shares her early user acquisition strategies for Gobble, emphasizing the importance of reaching micro groups rather than relying solely on large-scale advertising. She discusses her creative approach of using promo cards in local coffee shops and restaurants to drive initial interest and engagement.
"unscalable things to get users I read you you did promo cards everywhere you went the Starbucks and I just bother people - yes order from gobble so all of those things probably didn't work but anythin..."
In this segment, Ooshma highlights the significance of promo codes in tracking user acquisition success. She recounts her experience with a local coffee shop that effectively promoted Gobble through a simple register display, illustrating how targeted marketing can yield better results than broader strategies.
"like micro groups one thing I did is I would go to my favorite I went to all my favorite shops like coffee shops restaurants laundromats whatever and I actually bought card holders on on like a whatev..."
Ooshma discusses her strategy of engaging with local community groups, such as moms' meetups, to test different offers for Gobble. She explains how leveraging these groups' email lists helped her refine her marketing approach and improve conversion rates.
"so there's zombie runners on California Avenue this is coffee shop and and it's inside a running store that what used to be a movie theater it's very weird you should go there it's my favorite coffee ..."
Ooshma reflects on the evolution of Gobble's business model from 2011 to 2014, emphasizing the importance of iteration over pivoting. She explains how each iteration built on previous learnings, ultimately leading to a more refined product that better met customer needs.
"cool so again and going back to the evolution of the business at what point in each of the business model did you realize oh this isn't it I gotta think of something else right the funny thing is that..."
In this segment, Ooshma discusses the challenges faced with Gobble's initial marketplace model, where supply constraints limited scalability. She shares insights on the difficulties of scaling home-cooked food offerings and the need for a sustainable business model.
"previous learnings so with these business models they and different iterations and launches they all failed for different reasons we had a market place first and and everyone loved the food because it..."
Ooshma explains the transition from a marketplace to a catering model due to investor pressure for immediate revenue. She discusses the financial success of the catering business but highlights the misalignment with her long-term vision for Gobble.
"time capacity and so on so that that's why the marketplace model didn't work we were supply constrained not by the number of chefs but by the juice we could squeeze from each of our SKUs on the market..."
Ooshma shares her vision for a personalized dinner service that leverages technology to cater to individual tastes. She emphasizes the importance of personalization in the food industry and how Gobble aimed to fill a gap in the market.
"wasn't gonna get funding so we were in a pinch then and I had to raise a bridge round and wind down the catering business which was hugely unpopular because we were making lots of money but it wasn't ..."
In this candid discussion, Ooshma reveals the fears and challenges she faced when deciding to wind down the catering business. She reflects on the pressure from investors and the importance of following her gut instinct in pursuing her long-term vision.
"advantage so that's what we did with that personalized dinner service we took these chefs and and then we started using restaurants and caterers and we focused on the technology because that that's wh..."
Ooshma emphasizes the importance of trusting one's instincts as an entrepreneur. She discusses the challenges of balancing investor feedback with personal vision and how her experiences shaped her approach to decision-making.
"right it was it was so scary um it was really scary and and actually some of our investors would like call me into their office and just use it as like me as a punching bag you know and like sit down ..."
Ooshma elaborates on her understanding of product-market fit as a combination of growth potential and customer retention. She shares insights from Gobble's journey, highlighting the need for a product that is significantly better than existing options to achieve success.
"with which to think about your company and I would draw that framework and keep using it as my North Star in a previous talk and let me read this so I get it right you said something green insightful ..."
Ooshma discusses her journey as a non-technical founder, explaining how she proved her business concepts without a website. She shares her experiences in sales and design, showcasing the importance of adaptability and resourcefulness in entrepreneurship.
"how did you manage actually doing all of this without being technical yes hmm well initially um and I mean everyone is gonna use their skillsets and I think the one common theme is that in the first f..."
In this segment, Ooshma recounts a pivotal moment in her entrepreneurial journey when she received her first significant payment while interning at Morgan Stanley. This validation fueled her determination to pursue her startup dreams, leading to her eventual decision to leave the corporate world behind.
"I made initial sales without a website and I proved our concept in the first three months before any other kind of funding so with the recruiting business I did know like Photoshop and design and I ta..."
Ooshma Garg shares her experiences of struggling to raise funds for Gobble during its early years. She discusses how she managed to keep the company's burn rate low while focusing on product-market fit, and the critical decision to join Y Combinator when she was running out of money.
"to ten days to figure out how to quit the internship people were all like you'll get blacklisted you'll never get a job and I told the head of the program and he said you will always have a job here b..."
Ooshma discusses the challenges of maintaining team motivation during tough times in a startup. She emphasizes the importance of transparency and shared values among team members, explaining how involving employees in the challenges can foster loyalty and commitment.
"you know you can make your 1.5 million last lasts a while but we raised to bridge rounds during that time and there were some some investors who refused to invest some of them who like saw would liste..."
In this segment, Ooshma reflects on the decision to turn down acquisition offers during challenging times. She discusses her belief in Gobble's potential and the importance of staying true to her vision, despite the allure of immediate financial security.
"you know keep going that's a tough one um I think that there's a lot of turnover in the early days and even in like the later days after venture financing and you're learning how to hire execs but the..."
Ooshma shares her perspective on competition and funding in the meal kit industry. She highlights how limited resources forced Gobble to innovate and focus on efficiency, ultimately leading to growth despite the influx of venture capital into competitors.
"billions on the table speaking of competition there's been billions of dollars in venture funding going into competitors or so-called competitors like Reaper and plated and so forth I mean you're the ..."
Ooshma discusses the personal qualities that have driven her entrepreneurial journey, including grit and determination. She shares formative experiences from her childhood that shaped her work ethic and her belief in the value of perseverance in achieving long-term success.
"you talk about mission but beyond that what actually really like how did you keep going over the 78 years like is it genetic like what what do you think it really is beyond just the mission Wow hmm ma..."
In this segment, Ooshma reflects on the difficult decision to quit ventures that lack impact or fulfillment. She emphasizes the importance of adaptability and continuous iteration in entrepreneurship, using Netflix as an example of a company that successfully evolved to stay relevant.
"strategy you are a very ambitious third grader thank you I wish that we had known you back then we would just predict it all this in front of you all the way back in kindergarten that would have been ..."
Ooshma highlights critical decisions made early in Gobble's journey, particularly the hiring of an executive chef. She explains how this decision not only improved food quality but also enhanced the company's ability to innovate and meet customer needs.
"that instance so not getting comfortable and constantly iterating and being not dogmatic is important a good example of that is Netflix Netflix evolved to stay alive there are a lot of big titans of i..."
Ooshma Garg shares a pivotal moment in her entrepreneurial journey when she decided to pivot Gobble's business model. With the encouragement of Adora Cheung, she launched a meal kit service that resonated with customers. Garg highlights the significance of accountability and having supportive mentors who push you to take decisive action, ultimately leading to the best decision for her company.
"prep work and sending these food packages in a way that no other company sends them that's not trivial so making room for creativity in different areas of your business is important and we didn't have..."
Looking ahead, Ooshma Garg envisions Gobble becoming the 'Disney of the home,' focusing on creating magical experiences for families. She discusses the importance of fostering connections through food and learning, and how Gobble aims to adapt to the evolving needs of its customers. Garg emphasizes that the company's mission extends beyond just food, aiming to enrich lives through shared moments.
"so just need to execute and the other lesson is like finding people who are in your corner you need people who are in your corner and it's okay to not talk to the ones who aren't but finding people wh..."
In response to a question about immigration constraints, Ooshma Garg shares insights on the challenges faced by entrepreneurs in securing H-1B visas. She discusses practical solutions, including establishing shell companies and leveraging investor relationships to navigate legal hurdles. Garg highlights the importance of persistence and adaptability in overcoming these obstacles.
"that's a worthy cause that's interesting so it's go me more than just food yeah we're working on a few other things around like education and learning and things like that awesome cool all right so wh..."
Ooshma Garg explains the evolution of Gobble's pricing strategy and the importance of experimentation in achieving product-market fit. She shares her approach to testing different pricing models through direct communication with customers, emphasizing the need for flexibility and responsiveness to market feedback. Garg's insights provide valuable lessons for startups navigating pricing challenges.
"it I would just talk with a lawyer yeah um interesting so we've done a lot like oh yeah sorry question is tell us about the pricing strategy for gobble and how our pricing strategy evolved pricing is ..."
Ooshma Garg reflects on her journey as a solo founder of Gobble, discussing the challenges and advantages of starting a company without a co-founder. She shares her strategies for building a support network of fellow entrepreneurs and the importance of finding mentors. Garg emphasizes the need for resilience and resourcefulness when navigating the entrepreneurial landscape alone.
"is your best price thank you my seeds really grow having a co-founder the question is that YC is very Pro having a co-founder and that I did it on my own for a while can I talk about that hmm when I s..."
Ooshma discusses the evolution of her role as CEO, contrasting the early days of constant innovation and maker time with her current schedule filled with meetings. She reflects on the highs and lows of her journey, emphasizing the importance of staying connected to customers and the challenges of maintaining creativity amidst a busy schedule.
"have to really find and in fact some of my closest friends were other single founders and so I had a group of like two or three single founders and we all like would constantly meet up for coffee or d..."
Ooshma Garg provides insights on how to engage mentors and advisors without feeling like a pest. She shares strategies for approaching the right people, including being prepared and asking specific questions that align with their expertise, ensuring productive and respectful interactions.
"come okay let's take two more questions one in the back [Music] negro so my question is how do you get that happening without pestering them you know like hey well how do you do that a good manner tha..."
In this segment, Ooshma emphasizes the importance of being organized and prepared when meeting with mentors. She shares her method of structuring updates and challenges on a white piece of paper, which helps her mentors see her progress and provide relevant advice, fostering a productive relationship.
"to help me and I would find out where they were speaking and and I would wait till everybody was done talking to them and be the last one to talk to the speaker because they would remember me and then..."
Ooshma discusses the ups and downs of fundraising, sharing her personal struggles and strategies for attracting investors. She advises founders to focus on confidence and ambition in their pitches, encouraging them to present their business as a potential market leader rather than hedging against failure.
"think also and you mentioned this but I just want to pull it out as being very thoughtful the questions you ask and being very specific and instead of asking broad questions that could take hours to a..."