Specialist
Former senior executive at Getir UK Ltd
Agenda
- Getir's CAC (customer acquisition cost) and retention strategies
- Category growth and regional differences in consumer adoption
- AOV trends, frequency and cost per delivery
- Competitive dynamics vs supermarkets and food delivery platforms
- Network density, rider and micro-fulfilment centre volume and CAPEX
Questions
1.
What do you think about the TAM for on-demand grocery delivery services? When you were thinking about it at Getir in Turkey, did you think about it as a percentage of the total consumer spend on grocery? If so, what market share do you think on-demand grocery could reasonably gain?
2.
What are the biggest drivers and hurdles to consumer adoption of on-demand grocery delivery?
3.
What is the CAC [customer acquisition cost] in the early stages of ramping up?
4.
How do you expect Getir and other smaller on-demand grocery start-ups to compete with more established food delivery or takeout platforms such as Yemeksepeti, Deliveroo, Uber Eats, Just Eat or Takeaway.com? How easy would it be for an on-demand grocery-only proposition such as Getir to compete with those types of businesses longer term?
5.
You talked about 10 orders being the threshold over which users become much stickier. What do you think about the order frequency for active customers? Is it once per month? Is it more frequent?
6.
Presumably there’s a limit to the average customer spend, and there are only so many products riders can carry and deliver. What AOV would you expect?
7.
What would be the wholesale cost of the produce in an average basket?
8.
How quickly can platforms drive up the share of private label as a percentage of the average basket?
9.
How loyal are customers to these platforms once they’re on them?
10.
Is the typical rider doing two deliveries per hour? How many drops per hour can a rider typically get? What do you need the rider to be able to do for the model to be profitable?
11.
What do you think about the impact of scooter riders vs cyclists? Presumably, it’s more expensive to hire scooter riders but they probably have to be scooter riders, given the speed requirement.
12.
What break-even density is needed to cover a dark store’s running costs?
13.
What is the typical franchisee commission for the industry?
14.
Does the business define the SKUs that a franchisee will carry?
15.
Is there a limit to the number or variety of SKUs that a dark store can profitably carry?
16.
Is it standard practice to procure all the SKUs centrally and then distribute them to the franchisees when they need to replenish?
17.
It seems you need an exceptionally high market share within your neighbourhood for it to be a sustainable business model. Do you think it’s one that stands up to competition? What do you think about the impact of competition on the business model, given the high throughput needed?
18.
How do you think large supermarket chains will respond to this model? They obviously have their own delivery operations.
