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Mini Case: Fast A High-Growth Australian Start-up Revolutionizing Online Checkout (adopted from Innovation Matters’ mini case library)
Fast, an Australian start-up burned through $US124 million in just 12 months. Despite initially raising significant funds and gaining attention for its innovative approach to online checkout processes, the company experienced a sudden and total collapse (Shiffman, 2022).
Fast is an Australian start-up that disrupted the e-commerce space with its seamless and efficient online checkout process. Founded in 2019 by a team of tech enthusiasts, Fast aimed to address the frustrations consumers face during online shopping. By providing a solution that allows customers to make purchases with a single click, Fast revolutionized the traditional checkout process and gained recognition for its innovative approach.
Fast introduced a novel solution that leveraged secure and encrypted technology to store customer data. Traditional online checkouts often led to cart abandonment and lost sales opportunities. Fast recognized this challenge and set out to streamline the process. By creating a Fast account and saving payment information, customers could enjoy a frictionless shopping experience across various e-commerce platforms. The one-click checkout option provided convenience and efficiency, making online shopping more seamless than ever before. This innovation resonated with both customers and e-commerce partners, leading to rapid adoption and growth for Fast.
Fast quickly gained traction and secured partnerships with major online retailers, marketplaces, and e-commerce platforms. The "Pay with Fast" option became available at favourite online stores, enhancing user experience and reducing cart abandonment rates. As more customers experienced the convenience of Fast's one-click checkout, word spread, and adoption continued to grow. Fast became a trusted name in the e-commerce industry, known for its streamlined checkout process and commitment to customer satisfaction.
Building on its success in Australia, Fast expanded internationally, offering its services to customers and e-commerce partners in the United States, Europe, and Asia.
Fast's disruptive approach and rapid growth caught the attention of venture capitalists and angel investors. The company successfully raised several rounds of funding, attracting significant investments that fuelled its operations expansion and technological development. The investments also contributed to Fast's valuation reaching nearly $1 billion, highlighting the confidence investors had in the company's potential and its ability to capitalize on the industry opportunity.
Despite the initial success and significant funding, Fast experienced internal and external challenges that ultimately led to its downfall. Former employees raised concerns about tech deficiencies, pointing out areas where Fast's technology fell short. An NPR story questioned the adoption rate of Fast's one-click option, suggesting that not all customers were utilizing this feature. Additionally, a sex discrimination lawsuit alleged mistreatment of women within the company, raising concerns about the company's culture and practices. Fast's legacy is facing even more concerns due to criticisms of Holland's personal leadership style. One report states that he frequently went skydiving while other senior executives were left in charge of important company meetings. Adding to this negative perception is the narrative of Holland's previous failure with an Australian start-up. His online towing platform collapsed after a debt dispute with the Queensland government, resulting in him owing money to small tow truck operators. These challenges, combined with the intensified competition and the need for continuous innovation, proved to be overwhelming for Fast, leading to its sudden and total collapse.
Shiffman, A. (2022) ‘How Aussie start-up Fast went from boom to bust’ The Australian Financial Review, accessed 01 June 2023, https://www.afr.com/technology/how-aussie-start-up-fast-went-from-boom-to-bust-20220408-p5ac6r