Clubhouse private groups, 7-11 Delivery
Former pandemic darling Clubhouse is back with beta tests of a major new feature - ‘Houses’. Houses are private clubs that narrow the universe of Clubhouse to a smaller, trusted circle. While I am skeptical that this idea will succeed, I think it is a great one to try.
Clubhouse has several fundamental challenges. Live audio is by definition live, which greatly increases the need for content depth at all times. When I log into Twitter, I am shown the greatest hits of the past ~24 hours or so. Clubhouse effectively needs compelling content at all times. A second major challenge for Clubhouse is that it is arguably a feature, not a platform/network. The social network element of the initial launch was quite limited. The end result is that creators saw little lock-in, and rival platforms promoted similar features aggressively.
This product improves its position against many of these weaknesses. Private houses will have specific times of focused activity, more closely resembling appointment-based television than other forms of entertainment. These clubs will hopefully create meaningful social networks, which are harder to replicate elsewhere. Lastly, I presume these private groups will eventually offer non-ephemeral content. This will give users a reason to check into the app even without a planned audio event.
This is a vision worth trying, but the competition here will be fierce. Facebook Groups have been a company focus, Slack Huddles offer a B2B version of this, and the real competitor for groups is Discord. Discord has or will have versions of whatever Clubhouse builds here. It is their sole reason for existence. Unlike Clubhouse, they have a meaty user base already. Discord does swing towards the youth, gamers, and cryptocurrency fanatics. Perhaps Clubhouse can find a niche focus to start. Comedy and science/politics were two areas where the app initially found some traction. I would start with those groups first.
7-11 Delivery
7-11 has acquired a delivery company and looks set to more aggressively compete with DoorDash and GoPuff. The best case here is probably Domino’s Pizza, an absolute juggernaut in the stock market for the past 10-12 years. The bear case is Marc Andreesen’s Software is Eating the World thesis, with 7-11 the incumbent being crushed by more adept, software-centric companies. My intuition is that this will be the latter.
The reasons to do this move include
Not wanting to be commoditized supply on a platform like Doordash
A reasonably strong brand
Not paying the marketplace take rate of the existing platforms
I still think this move won’t succeed. To start, the impulse use case and delivery fees are a poor match. Most 7-11 purchases I’ve made are under $10. Delivery will likely double the cost. 7-11 has a strong brand, but very little of their offering is differentiated. Perhaps the cherry slushie machine? They compete very aggressively with Walgreens, CVS, Bodegas, 15-minute delivery, and Amazon (depending on the item). Walgreens, CVS, and Walmart are wisely leaning into healthcare to get out of this mess. 7-11 would be leaning further into the fight here. I would actually lump Domino’s into the differentiated category, in its own quirky way. Having a unique app means fighting an uphill battle for attention. I will open DoorDash for dinner (but never 7-11). As I establish that muscle memory, I may also remember DoorDash if I need something else.
Lastly, I think 7-11 stands to make too much money working with DoorDash to go on their own. 7-11 is heavily promoted as an add-on option in NYC. I can order Thai food and get beer, ice cream, or toilet paper delivered on the same trip. That’s a great way to get in front of me