DETAILS Due: Today, 11:59 PM 3 attempts left 100 points maximum score DESCRIPTIO

Question

DETAILS Due: Today, 11:59 PM 3 attempts left 100 points maximum score DESCRIPTION Look back at you online behavior and find an example of a company that acts as a transaction broker and one example of a company that provides hands-on service. If you actually don't use any then do a search online for different service companies and choose two that will fit in the above mentioned categories. Prepare a short memo describing the companies and their services and why you have categorized them the way you did.

Explanation / Answer

Transaction Broker: If you're into stock markets/investing, transaction brokers are the norm. I would like to take the example of a start up called Zerodha, which acts as a transaction broker. What a transaction broker means is, they are not the buyer or the seller, but simply act as a conduit between the two. What Zerodha does is simple - it offers brokering services for anyone who is interested in investing in the share market. In the share market, if I buy a share, I need to have someone who sells it. Zerodha simply helps facilitate the purchase or the sale of the share or the underlying asset by providing a platform to complete the sale. They charge brokerage fees accordingly. They do not act on the behalf of a buyer or a seller, they simply act as a middle-man to facilitate the transaction.

Hands on service provider: There are many organizations which fall under this category. I would like to take the example of another online startup called Swiggy. What they do is, they offer hands on service where they provide food delivery. I can simply order what food I want from where I want, and the company has its own delivery fleet which takes care of the rest. They ensure that they get to the restaurant on time, collect my food (as per the order), and delivery it to the address which is gelocated by their app. They provide complete food delivery services, and hence can be called a hands on service provider.

I've categorized Zerodha as a broker as they do not represent either the buyer or the seller - they simply act as a post man between the two, charging their own transaction fees. The second company, UrbanClap, provides its own services with its own team. Hence, this is classified as a hands on service provider.

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