Corporate Entrepreneurship Program
Aygaz - Aykargo
Aygaz is the dominant LPG distributor in Turkey, however as residences have increasingly converted to direct natural gas, the need for door-to-door LPG tank distribution has decreased.
In order to create new businesses for their dealer network while taking advantage of their existing infrastructure, Aygaz launched a Corporate Entrepreneurship Program together with Core Strateji, inviting employees to submit ideas and work to test and develop those ideas into real businesses.
One of the business ideas that took part in the corporate entrepreneurship program was to utilize Aygaz’s existing LPG distributor network to serve as the last cog in the logistics chain, last mile delivery. Last mile delivery is defined as the movement of goods from a transportation hub to the final delivery destination, typically a personal residence. The focus of last mile logistics is to deliver items to the end user as fast as possible. Given Aygaz’s experience with the last mile delivery of LPG tanks, it seemed possible to leverage that strength to all other types of products.
From inception, Core Strateji helped the internal startup team develop their initial idea and test their hypotheses in the marketplace. The team first went through the accelerator phase, understanding the issues faced by both logistics firms and e-commerce customers, then worked to develop a model that would utilize Aygaz’s existing infrastructure to meet existing gaps. In the pilot phase, with mentoring support from Core Strateji, the team tested those models and partnership in the field in order to understand the technical and market challenges. Once a proven operating model was discovered, the team pitched their project to management and formed a new department specifically to launch this service from within the company.
AyKargo is now in service across Turkey, facilitating direct-to-home on-demand delivery for several large brands Including Unilever, Koçtaş, and Enerjisa. Moreover, the project helped transform Aygaz, the organization itself, expanding their field of activity and changing their company’s vision.
- Launched a corporate entrepreneurship program at Aygaz to create new business opportunities for their dealer network
- One of the ideas was Aykargo, using the LPG distributor network to distribute packages for last-mile logistics
- The idea was developed with testing against market assumptions; now in service across Turkey working with multiple brands