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CogX Festival 2021
June 15, 2021, Online, United Kingdom
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Startup to IPO: Q-commerce trends leading the way
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About the talk

Startup to IPO: Q-commerce trends leading the way

Consumer macro trends are speeding towards convenience — especially in the food, grocery and delivery industries. With fierce competition popping up in every continent, what kind of business model will win in the long term? And how can startups in these areas stand out? This session looks at the impact of Covid on this prolific market, the key drivers of performance and what consumer behaviour will look like in the future.

Featuring:

Milena Lazarevska - Global VP Commercial, Quick Commerce - Delivery Hero

Sasha Astafyeva - Partner - Atomico

Maija Palmer - Innovation Editor - Sifted (Moderator)

#CogX2021 #JoinTheConversation

About speakers

Milena Lazarevska
Global VP Commercial, Quick Commerce at Delivery Hero
Sasha Astafyeva
Partner at Atomico
Maija Palmer
Innovation editor at Sifted

Milena is Global VP Commercial, Quick Commerce at Delivery Hero, leading the central Commercial team which covers assortment, pricing and promotions, supplier management, and media solutions. She joined Delivery Hero in August 2020 from Sainsbury’s, a large retailer in the UK, where she held several senior commercial roles, including Head of Future Brands. She started her career as a management consultant and spent 6 years with Bain and Company in London

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Sasha is a Partner at Atomico based in London where she leads on new investment opportunities in the consumer space. She is responsible for sourcing, due diligence, and managing Atomico’s partnerships with consumer companies, and is passionate about partnering with entrepreneurs who are focused on building distinctive mission-driven consumer propositions and tirelessly obsess over building strong brand identity, forging emotional connection with customers, creating customer value through use of data and advanced technologies, and earning customer love and trust.

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Good morning, everyone and welcome to day two of the Tog X Festival. My name is Benji Korea, and I'm here to host the startup to IPO state today. And I know yesterday before casting a lot on scaling, the brightest ideas. But where is that grounds? I've been involved in the European texting for the last 20 years. So yes, I'm old Venture partner. Take for a spree, IMAX Silicon Valley, Bank x, Microsoft Ventures. I sit on the board of a bunch of startups. I also am a board member of the European Innovation Council. I've

really seen and witnessed the whole European Tech startup ecosystem, for a very, very long time. And it's been great just to see where we're at right now in 2021. Despite the pain. I'm going to court an article. Is Fez from Tipton. And what they said his last November in 2020, the year of unicorn startup, count was 60. And since then, we're now at about 7, the Unicorn spit unicorn salsa publicly listed by an IPO or we're hearing rumors of fact, we got a

rival Dart trains, the living room and you I pass Texas from startups have done pretty well this year, as well. We've seen lendable Starling blockchain.com pbro bitpanda shift. Technology vestiaire Collective Alan Fletcher, recently, all reached unicorn, status respecting, many more to IPO this year. So we've all heard the rumors about Babylon. Hell to announce this back earlier this month and then we start rumors on blablacar. Brewdog cabify, get lab and why's this is what it is around the tech, ecosystem. From a personal perspective,

I've seen So many Venture Capital fund launched. Focus on different geographies or different verticals. I've seen the European Innovation Council launched earlier this year in March, a 10 billion-euro early-stage, super fund funded by the EU. We're seeing lots of government initiatives popping out. We've got Tech Nation here in the UK. We got 10 technique in the Netherlands, run by Constantine start of Portugal. Run by Simon, that frenchtek run bike at all to the same and really see what's happening with this wonderful startup ecosystem,

which I know I am. And so many other people are so very passionate about that. We have a very full agenda today, starting with this first session, which goes from 10 to 10:45 a.m. And we will then have a break until noon. So this first session is run by Maya pomeranz The Innovation editor of sophisticated and it's about to Commerce. Friends leading the way and what is the session about consumer? Macro-trends speeding? Towards convenience, especially the food, grocery, and delivery Industries with Fierce competition popping up in every continent. What kind of business are we

going to expect to succeed? I know, certainly for my, and I've seen so many ads pop up here and Central London. So I'm very, very excited with that. And before we bring Maya on stage, I always like to find out about our speakers and that little quirky fat thought I kind of decided to ask the question. What life skills. Have you learned in covid? For me? Personally, I learn a lot more and, you know, I was graduating to some really great interesting complicated meals that are Jeremiah from, in a from sifted, learn how to knit socks and drink whiskey. And I think it's up to you as the

audience to figure out which one she succeeded in. And she said she failed miserably at 1 but I can actually see how she would do really well as well. So I thought I'd take you across to Maya pomeranz cucumbers. Translating the way. K750, I'm getting ready but he is wondering, I'm not going to show you the socks because the one that succeeded was not really the salt will leave it at that. But let me just introduce this panel because I have two people here who will be able to really talk about this at dinner. Take him to the Q, strength and we're talking about quick,. So this is a

convenience that popped up in all the rest of these where you can cut. If you do order a bunch of bananas in a pint of milk and it will show up at your door in 15 minutes, 10 minutes. The competition is getting Fierce. So let me introduce Bristol from the you know, someone who should know this side extremely well is Milana who is global BP commercial of cucumbers at delivery hero before that. She was head of future Brad. The same kind of played to both sides of this game, both the challenges and the

income. I'm quite interested to hear a little bit more about how the experience, you know, it compares to the same space. But I mean, I think it's past time but I know that the last had a daughter, 10 months of your life has been extremely hectic and crazy as this chance to take it off of my ride. Okay, and the other panelists is Sasha and stuff. Yeah, but sorry partner at Atomic Cowboy. And if so where you be wise with a lot of consumer Brands and you come to cut his head up, that's

getting cosima companies. That place where you have skin in this game is, is this big investment in Walt Bolts from the crazy amounts of money that they're going into this space right now and the competition that's building up and where this will all go. Where I where investors. Is that which is Bo Brady, been the relevance here. In case you or anybody in the audience has been hiding under a rock and hasn't noticed what's been going on. But I mean, I need

some space right now. So at the rounds that we see, I mean we've got guests here with just any kind of about, you know, one of the older companies in the steel that they you know, now raised in excess of $8, write the last round that they did was 550 million, they raised $200, but the roads are huge and there's a lot of them. So again, I did a quick counting up and in some cities, it's a congested with you. So if you look at Berlin, Competitors, all piling on top of each other. You've got takeaway.com,

gorillas and about this delivery hero is, is going into that mix again. So it's getting even more congested. And the UK is another area where we've got. So do you know and who knows how many more baby popping up? So I want to start with this question, which is is it's a little bit crazy. Is this a bubble? You know, how sustainable is this? And maybe starting with you so I should just because you got that kind of over View and then I'd love to hear a sort of Milena's perspective as somebody who's like right in the mix, trying

to fight that battle. Yeah, it's it's a really interesting question, Maya and Zack. And I think a lot of people are asking that question for sure. Just to go see India to a lot of people have been involved in these companies over the last few months, and it said it says, probably of trends that in Europe, you know, it's a it's a few months old fat is to have been picked out there there quickly. I think it's a sign of a few of a few things. First of all markets, if the convenience market, the grocery markets, the food's face is very large in Europe is billions and billions of dollars

worth and during the course of the funds. Especially the lockdowns a lot of consumer behaviors that have emerged are at leading people to change the way that they shopped at the way that they consume things, the way that they got food into their house and it has emerged with vengeance over the last few months. And so, the proliferation of these companies is a reflection of the focus inconvenience. That consumers have had over the last few months. I need exact the first Transit first consumer trends that has really bolster its focus on the space and the number of companies that emerged the

amount of capital that has gone into their so-called was just the sheer size of the market, you know, it's made it extremely attractive for investors to invest in the space. Answer your points around saturation II, really interesting question. But what do you think about groceries? Fast food fast? Convenience faith is not a winner-takes-all. There are many different reasons why somebody would go and stop in there for food. Sometimes it's a weekly shop where you plan to hide. You do you make you go, maybe to the supermarket, or you shop online and avocado, if I quite a lot, I just stalk

up. Then there's the shop, which is there a replenishment shop, you know, maybe some deer run out of some things and you're in the middle of cooking. Or you've got any children that demand your attention and you ran out of something. If you can't really leave your house or, you know, just generally kind of your trying to replenish them with those items that you ran out of Thunder is impulse and that's more, you know, you didn't know you did run out. But also the reason it's not something that you plan for it. So you could be in some ice cream on a Friday night or you were having drinks with

friends and you run out of the wind and you don't want us to leave your house. So some of those things, all of those are different occasions. And so are there many different ways to us to serve the customers during those occasions? And I think similarly, to how was the unit in the grocery space, where you can have multiple players and sing High Street and all of them to you while because they serve different customers are different, customer needs. I think in this space is while there's a chance for multiple winners to emerge for sure. Okay. Yeah, interesting that it could be it's not

necessarily A winner-takes-all and I guess the debate is just how many of those competitors can co-exist and how they might have evolved to maybe have a special is over each and some of them because everybody's trying to establish themselves all at the same time. 2 years now. And then we are now present in over 35 countries with six hundred of these stores and retailers. Whether that supermarkets are pharmacies or other retailers, and other verticals to deliver on their behalf. So we've been going at it for a couple. Exact reasons that I thought would just outlined. It's a huge

market and there's definitely, but also we have an existing customer base that we have an existing countries around the world. So adding an additional service for our customers mean, increase the value of our platform for those customers. And in the place, where they can come to, to get things delivered to the house, and deliver. It is an amazing experience in the last six months. It's really heated up, and clearly many other companies, and the potential in this week, and I did mention, I come from the supermarket in the

grocery world. Having worked in Sainsbury's in the UK, for 6 years, and it is a huge market. And if the market that from the retail perspective is the least so far. Low double-digit. Now there's a big ships that is still happening from brick-and-mortar shopping to online shopping and I think for supercharging that was as well as actually a very global company. So like I said, turkey is one of our first and largest markets, but we are in over 35 countries in the Middle East, in Asia, and South

America, and have a different set of competitors. Wear for a little more delivery hero had been out there for three for ten years. Right. As a as a friend, or more than that baby now. And then he quit, but I still Are you finding now with so many new competitors? Coming to senses that make you have to do different things. Now, would you do you have to move faster than you might have done? Otherwise because Yeah, I think it it just, I just know. I'm competitive pressure on for sure.

So we think of ourselves in this world. And what's the value that that we add, as I mentioned, because we already have the customer base. We actually already have a huge pool of people where we can offer the service and they already have our app and they're already used to ordering from us. But our plans are ambitious. We always so this is a big opportunity and perhaps even crank it up a little bit more now to make sure we do offer the service for all of our customers

around the world. Okay. Now I want to remind everybody who's watching also that you can ask questions. So if you have any questions for the panel, please do put them in and you know, I'll make sure to put them to Sacha and then and then while I'm waiting for this question to come in, I do definitely a few things. I'd love to dig into one is and this is the big question for me is make money because we are not. The competition is so Fierce. Everyone is is offering discounts. There's a lot of you. Do you have to hire a lot of drivers to be able to make sure that

you can hit those commitments delivering within a certain time frame etcetera. So how difficult is it? And maybe I can put you on the spot again, but this one, you know, how do you think about it? Then? Maybe you have to go through a period of losing some money into the Mitsubishi market share, but are you hoping then to come back to the bikinis pretty profitable to? The Wii release canopy sample unit economics, as we see in the long-term. So let me start with that business and

make it happen. So, first of all, there is a unit economics of every single baskets that we deliver. And whether a basket of profitable or not. It depends on how big that accident and you like to think of it as a little bit of a squeeze bottle of most, of our deliveries get delivered by bicycle, or bike or motorcycle. So it's on one ride is somewhat limited by having that of a basket, which is large enough to make it pasta is that we're going for And then there is partnership with the suppliers, especially on

our side, as well. So, we work with and they see that says that as an additional channel that is actually capturing some ice cream or snacks or drinks. We play it in all categories. Seem to be the first in the most popular ones that customers associate with. And there is trade investment that comes from the brands to promote their brands, to our consumers, as well. So that. There's a possibility to and then just like it's about making a case for profitable. Because once you open the door, there's some fixed costs associated with operating

that store. There's rent. There is the employees that work inside. And quite a lot of orders through that store. So that everything is maximized and with actually filling up the fun of customers. And in stores. We do see this business becoming profitable and I guess just another bench mark globally. Don't make significant percentage margin in the UK retailers, make anywhere between 2 1/2 and 4% ebitda margin, but a huge market and its huge volumes of that translates to hundreds of millions and billions of dollars in

the UK that the that the retailers are making. So it's not about me. Lot of the basket. So you need to cut it fairly light, but expensive items that can be carried on the back of the bike quite easily. Right? So bitter design with customers wants because he wants to make sure we we serve there nice. But on average. Yes, and that's why. I'll cohol Works quite well, but like a sack of potatoes for you knows. Everybody was ordering that that would be fairly disastrous. If you

do in what way, do you think about the kind of Horizon on which this becomes profitable? And how much do we sort of have to see some crazy up-front investment for us as we should have filled out. If we think about the cost structure as it fixed vs. Variable, there's a variable cost structure on the actual kind of cost of good that the customer is purchasing, but then there's a lot of the other costs are actually fixed. So, the cost of an amazing thinking of the cost of delivery or the cost

of fulfillment, because obviously just. Cost will decrease, as you have more volume going through their dark store, but volume think he here. And I think one of the, one of the things that is really important in this market right now is because of a lot of competition in the market as well as a potential. It may take a little bit longer for people to build some of that density and volume. To required to get the profitability faster, but to the extent that as we think, about the steady States. And where do these businesses cats do? When they are not only have acquired a

large number of customers and their catchment areas, but those customers are loyal and they're coming. This is where you kind of got to the profitability stage. And I think this is where the business to become interesting and it's starting to generate cash so I can take anywhere from a few months to maybe help a year year-and-a-half. It really depends on the market conditions and it really depends on the business ability to execute on drive volume to their dark stores. Yeah, but do you think that we will have to see some consolidation? I know we said in the beginning but, you

know, this isn't a winner-takes-all market and there will be a penalty for different players to coexist. But at the same time when I hear you saying is you do need the volume, so and you need the density, so I delete, you know, in a city you wouldn't have maybe seven or eight competitors. Maybe just 2 or 3 so that you can get that volume and the Loyalty as well. Yeah, it is. A possibility. Is that a lot of them are gifts that start off at? Defend the volume in order to drive kale. And profitability know, they do go down the consolidation path. Some point. I think it's quite a bit in.

There are plenty of other examples in the State's record, solidation husband, part of the journey for the businesses, that that emerged in that those faces that is definitely a possibility in this face, is all. But having said that, as I said before, you know, I don't think it's a winner-takes-all market. I also don't think it's a space where you were going to happiness, 25 different companies, but having a handful, I think it's definitely a possibility from the ones who were who well-capitalized at the moment that they might be the only war on the acquiring

than the acquired side, but the restaurant delivery of Bounce About kind of took to what extent is what we've seen over the last years with abnormal and how much the habits of people developed in this. How many, how many of those will stick with us and Emily. I don't know. If do you want to start with that whether you're seeing any changes? Now, as we start to come out of to the Biltmore extreme lockdown situations and what do you see the building into your model as expectations of how consumers will behave?

Yes, I think we're in a really interesting position because we're present in so many countries around the world lockdown to have not been synchronize around the world countries has gone in and out of love downs. And obviously they have overall we see a very encouraging upward Trend everywhere. And what's really interesting is we see that once customers start shopping quick bombers with us and start getting their groceries delivered from us. They actually increase our oval of overall frequency on our platform, including their frequency on the

restaurant side. So they become more loyal customers over and and that's an encouraging sign to say. This is becoming an ingrained Trends. And once customers actually tried it and gets their groceries delivered and 10. 15-minute this becomes a bit of a habit. We're also seeing that at some of the signs of break up their weekly shopping to multiple smaller. I actually goes through and interesting very niche market in the UK over the last 10 years or so, all the supermarket in

all the supermarket stole, a decrease of that is about you because customers moved their weekly shop into several at midweek, top up shop. Because then you can argue either way. What was the exact driver? But because the convenience was there, they were able to actually not have to plan so far in advance, not have to only drive for the big store to buy there. They could just pick up dinner on their way home from work. That's how the behaviors of gold as well. We're taking that even more

extreme because you don't even have to go anywhere. I can just get every Delivered to your house, though. Why wouldn't you just break up your weekly shop? And get what you want when you want it rather than having to plan far ahead. And that's the exact behavior that we see from our customers, as well as increased exploration of different categories. So in some of you might be already offer awkward the 7000 - which is the assortment of a small Supermarket. This is no longer a convenience corner store, which have one and a half to two

thousand if they use. This is like it's really, really good selection of everything that you might want. He might no be the exact time or after, but we will have a version of the particular ice in your after 2 to go there the release year. And if you take some of that will, it will continue to stick around, you know, even after it becomes easier for people to submit to the even, you know, the corner store. I'm just wondering what the trade-off will be, you know, you can walk 5 minutes and pick up something from a convenience store vs. You have 15 minutes to have it delivered to

your door. Yeah, it's always the mean things that customers want is Troy and to be able to do whatever is most convenient for them at that particular time. So, sometime on demand delivery in 15 minutes. Actually isn't convenient because you might be on your way somewhere or on your way. Home in the most convenient thing is to get it delivered in an hour. So you just want to be able to offer for the on-demand delivery schedule. Deliveries if they wanted to get some groceries, so I don't think we're

going to get 100% share of wallet of any individual customer. Visual person is going to choose a shop where they stopped for a particular mission for a particular type of situation. We want to make sure that we are part of their repertoire and they consider us for as many Mission Impossible. Portable also graced choice of items that they can buy more and great. But I think when we spoke about this a little bit, and I think you had some concerns about the kind of the level of discounting that was going on and

maybe that, you know, how much that might be, maybe Moscone, what the, what the people chew habits will be, and that's another Factor. It in addition to sort of Tobit, that, that may make it difficult to balance, will be as things normalized. Yeah, it's I mean to I would wholeheartedly agree to let me know because it's also one of the one of the Frameworks that we used internally trying to think about the different behaviors that emerge during the last few months and how they will amorph. And what will happen after that. I think go back to normal.

If there's a behavior that emerged during lockdown, that is superior to the way that you did things before the walks out. Then even after the lockdown, he will continue doing. What you had some kind of adopted during the lockdown because it is better than what you had before. And I think they could be an interesting kind of representation of it is by virtue of quick delivery, be more convenient and potentially, you know, when the many ways better than experience that people have before my and our kind of pieces aside, a lot of that will stick after things, go

back to normal. Haven't said that to your point around kind of discounting because of Say something at the margins of different players in the face. And the fact that you do a lot of capital has been poured into marketing and found out that it obviously. And I think that maybe your husband rip on that is more driven by the sounds rather than actual need. And I think time will tell how that amount will will manifest itself over time, without the discount going forward, but I think one thing to keep in mind, which is why I think the businesses that are

driven a lot by the consumer experience and driven by their customers, actually having a great experience with their up for the delivery, was selection and coming back to cause of sad and not because they're getting a discount are the businesses that will stick around longer because over a. Of time you do customers will vote with their feet when it comes to which apps are using and which services are using based on experience. They have farther than necessarily on getting you no 10 pounds off. That's because this is a more sign of the times. I think at this point, rather than, you

know, steady-state, kind of behavior is out that will stick around here a few years from now. Yeah, so that kind of initial experience. I guess. We'll be very important. So, actually getting it in the time, problem time, friend promised. And then maybe that's why we're seeing some of that, you know, that we've been reporting on cepted a little bit about some of the craziness of people just jumping in taxis with a bunch of bananas and that there that in no way can be cost-effective for the company, but I guess if the game is to just make sure that you satisfy customers.

And if this is a particularly crucial time, and this is a time-limited. Where are you, what you have to do that? You have to wear them then in order to establish. Service that they will kind of try other other other delivery options as well. And that actually speaks to another question, which I think would be interested to Darby and see, which is you do is the focus. You don't want to answer them adding extra services to become. I guess the alternative would be just too much the cost in dead. Do one thing really, well,

it's not fair to to ask you to comment on that other apartment and I cuz I I get the sense that it's about being the super off, right? And doing many services as possible. But at a time, when you thought about which way you were going to go in that choice. Yeah, I'm not sure. This is Led decided yet. Actually, I think we're always experimenting and always adding new services. So it's mention earlier delivery road. Now, 10 years old and forth, our main part of the businesses restaurant food. Deliveries

also have dark kitchen, which was a concept started a few years ago. When are experimenting with something cold. Delivery is a service where we actually white label to Delivery Solutions. So retailers can offer under their brands. They can offer the super quick delivery of items from their websites and not from are at but rather from. There's plenty of things that we're experimenting with and we do believe that I'm offering multiple services, does add value to the platform. Having said that, we want to build a sustainable business and the profitable business. So we have to focus

on At the same time, it snowed in. We have to drive growth and that's our main priority right now, but we're always thinking, how can we actually do things better, and more cost-effective, and there's plenty of innovation that happening in that area as well. Whether it's around how we deliver whether it's around, how we actually, organize the warehouses, especially our own warehouses or the check that we bills to integrate with our local store Partners to make sure that's done official cost-efficiently, but also for a good customer experience, so that we can guarantee

the availability of iTunes or promotions that are in the stores. We have to think on, on multiple jbi's. I don't think this is that you either chase the growth or you chase the, the cost may be special because we'll have other companies as well. But we're certainly looking on both ends of the piano experimented with what the Yeah, I think it also depends on the availability of capital right to 2/11 points. I mean, you're, it's, it's, it's hard to choose one or the other because in

reality, you know, consumers are once you've acquired a customer there, so many different things so you can offer that customer, right? So you become more of a part of their daily life. Not only I'll bring one thing but made me sad. But kind of offering a few different things through the same sense of the same infrastructure, but it requires capital and juggling act where you're trying to focus on both. I'm gross and I you serving your customer better offering more services to their customers. While at the

same time on driving, you know, continued improvements to profitability of the business and focusing on the cost structure. It's an interesting interesting game and probably I think that's all. Spawn vs. There is driven by the availability of capital, at the end of the day one is, which you do? You have your own dog stores and you eat. Oh, it's very much a kind of vertical business. That's where you very much in control if you were your supply chain and that's how you can be very quick. When you can do this, what

the pros and cons of those were actually just got a little bit of work as well, trying to understand the pros and cons of each of those models. I think it's the end of the day, the biggest difference in an RV with a difference in customer experience that you have. When you're ordering from a player that has a dark star model versus a player that has more of a Marketplace model when you have your own dark story. You are much more in control of The Who Experience because not only is a customer shopping, you're out, but also it's your warehouses. You are selection of items. If you are Pickers,

it's your writers. And that whole kind of experience is completely controlled by one company. Where is if you are more of a Marketplace business, I think it's a little bit harder because even though the customer is popping on your app is gone, by third-party is a choice to selection in the veil ability of that selection is subject to third party as well as the Riders are often. Also third-party you. So a lot of the pieces of that experience or suddenly. It just join says, I'm so very often. Does may have put pressure on the actual the consumer experience and how good that is

there is much hotter and sometimes those are harder to make money and also gained a loyal customer especially if all of the parts of that equation, do you know, they don't work perfectly well together. I think I'll say it again goes back. And in our view it's it's weather. How you think about the kind of your strategy going forward? And I know that delivery Hero has successfully. Don't go to both parts of that. Equation sums from her, that has a gray sweater if you want. But I think, you know of you, if you were to choose and you're just starting out the, you know, you are a startup in the

face and you're just starting things up in the our experience. And then our point of you having a vertically integrated model would lead to more sticky customer proposition overtime. You know, an hour of yours is the kind of the darkstorm model is superior to being more of a Marketplace model. Again from your point of view. What are the present called is an end is one obviously more profitable than the other end or is it hard to tell yet? Do you have complimentary propositions? So the taxes or is everything Sasha outline? We can control the whole experience because we

guaranteed availability is our stock. However, these are still relatively small sores. So even if we can fit 7000s, use some of them. It's still a smaller assortments complementarity, coming in delivery from retailers and we kind of classify them either in grocery retailer. So supermarkets and hypermarkets. The selection is actually 15,000 + 7, * 30000 + specialty, local store. So, the butcher's at the flower shop pharmacies. They offer something quite different from what we can offer from the local stores. And

while speed here is important. It needs not be said of the 10-minute in the 15-minute requirement from a customer. Because if they want exact items that they're after, they're probably willing to wait a little bit more, so we can afford to travel a little bit further in order to get that for them. So, we were out there's a little bit of coverage differences. Well, we're obviously a delivery and it's much faster to set up local store partnership because the store already there. So, we can already

start offering that requires capital in time for us to open our value proposition. There is a difference and profitability, of course, whenever you are vertically integrated. There is more of a probable for just that the finals leaders versus partnering with local stores. There is also the local store in again. It's it's the same drivers as I was talking about earlier. So it's the Best Buys in terms of the value of the items that we deliver and it's how many orders we can put through a particular store and stay with you a bit more.

Cuz I think it brings us to another interesting question which is how you will co-exist with supermarkets. And I just kind of wondered what you see that sort of future of being, like, some of the supermarkets are already partnering with, with delivery companies, to, to take on part of that quick to the race. Some of them are doing it on their own though, and, you know, they have Convenience stores. That have delivery services. You know, shit, that shit super buckets, be doing more of his partnership. So maybe that's just not something that's that word, you know. Maybe a

comment for sun supermarkets doing this on their own. So I'll be online deliveries, but it tends to be the next day or several days in advance. Very large order value of 4045 lb of the minimum order value. So it's a completely different from the one that we're starving their own quick delivery service. There's been mixed success with that. So I think things were still operate their Chop Chop service, which is within an hour, but waitrose close their own in order to just focus on the partnership with the delivery company meeting with delivery

companies, like deliver here as well. Bring is the existing writerbay, the existing customer base and we're tekton ponies that actually focus on building great ass than in the hole that I see the partnership's actually winning in this case because we each bring our own expertise and we're more address. And I guess it's newer companies and availability of capital. We have a little bit more to to invest and figure out what the best of this model is for the future as well as the model that continues forward

piece here at the end, but just kind of what's what's the future for you in this space? In the next year. It seems like we're in this very Fierce competition. But what do you think? Do you think we'll see even more competitors coming in when we start to see that consolidation beginning, you know in the next kind of 6 months to a year. What what happens next? I think it's almost in markets where you know, there is quite a lot of competition already. I think it's fairly difficult for a new player to merge them in there. So I think I would not bet on any a large number of new

players like watching. Some of these markets are still a few markets where the competition is not a sphere. So maybe that there's a chance of more players and worked overtime and those smaller markets where there is still space. I think one of the things that will also start happening is that consumers will start kind of boating more and more with their feeds on and picking services that they become more loyal to last by, you know can senior discount but more by the customer experience, the selection on just generally kind of their natural

levels of Demands that they would have for quick delivery service. I said that will kind of create more of a space. To really try to understand to know which of the players are building sustainable businesses, that are building a ticket proposition for their customers. I don't see, no continue this counseling and I think that will also Drive what would happen in the space from fundraising perspective, from potential, consolidations respects, it is that are there is, you know, I think this is a space that's essentially is ripe for consolidation and some

point in the future, because I'll be safe. Take some some period of time for businesses to get possibility. And as there's competition that sometimes pushes that profitability a little bit away because people are investing so much in marketing, sir. Definitely might happen, but I think over time. Did you ever say is no longer out on the fact that consumers all your convenience? And so, I think from the consumer perspective, this doesn't this will continue to be around and will continue serving customers, but it'll be interesting to see if. As you say, we start to see who the real winners

will be in the end. And if that is the pattern, that emerges in the, in the next year, is that we start to see the ones that Able to keep customers. And so we should be looking at things like, you know, repeat usage. Let's put, it said next kind of had a crazy nine months or I leave it went. When is the next 9 months look? Like we're building a retailer. If you look in the UK, most retailers are over a hundred years old. So there's a lot in this industry that we need and I think where I see where you're going is

really taking advantage of the fact that we are digital and therefore really understanding our customers. Where to buy what is the victims before and they don't find in there for it something that we can get for them and ask for her assortment. And also how is it that we actually make it quick and manageable to browse through and Shop an assortment of 70,000 cues from from I see Mars or 15 20000 cues from a supermarket that experience quick as good as well.

How do you do that quick? That is very relevant and very helpful for customers are looking for when they come and buy something with us, some of that user experience. Right? And I am being told that we are well and truly out of time. So I'm really have to just say thank you. Thank you Sasha for sharing that. I think it's fair to say that this could be a lot to watch in the space. So I hope I get to speak to you guys again and see where we are at a few more

months time.

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