So it turns out that craps games are not the only things that float:
This is an intriguing innovation. It is clearly particular to its setting and not a solution for all countries. There are a number of interesting features to this. One is finding a way to move the market to create economies of scale. Another is exploiting rivers to overcome otherwise poor logistics. Both of those makes sense and make me wonder whether subsidies here are really necessary. I am not saying that retailer should be out to exploit what is nearly a monopoly position. Rather the advantages this boat has over a fixed location in rural India suggest that it should be able to operate as a standalone business.
Fascinating! A similar concept of mobile grocery shops is being rolled out in rural Thailand by Siam Makro Plc partnering with DFM Mini Truck (the Bangkok Post article includes a picture).
DFM charges about $12,000 for a truck and about $3,000 for product inventory. The company is offering financing at a rate of 4.25% or at a daily fixed installment of nearly $5 per day. According to their sales projections, store owners could break even within a year.
So the Thai truck-market is pretty cool. It really points out that the Indian floating market should be able to survive without a real subsidy while still providing good value and service to rural customers.
It certainly seems feasible. Truck markets also exist (or existed) in the Philippines as a franchise (Palengkenito) and in Uttar Pradesh, India (3A Bazaar, web site here) .
[...] to get goods and for packaged goods companies to reach villagers. (A topic we have touched on before.) As the BBC reports, a firm called United Villages is trying to modernize rural distribution by [...]