Specialist
Senior executive at Glovoapp 23 SL (Glovo)
Agenda
- GMV growth and unit economics across food delivery and on-demand grocery
- Costs and challenges to scaling an on-demand grocery network
- Dark-store CAPEX trends and throughput requirements
- Workers’ rights regulatory impacts on food delivery companies
Questions
1.
How large is the Spanish food delivery and on-demand grocery market? How much GMV growth do you expect?
2.
How large do you conceptualise the market’s GMV to be in billions of euros? I suppose we can estimate by considering the orders of Just Eat, Deliveroo and Uber Eats.
3.
What user or market penetration has been achieved so far in Spain?
4.
You said that last-mile logistics players serve 60% of Spain. Is it realistic or possible for that to reach 80% with the logistics model?
5.
How do you expect competitive dynamics to play out across Just Eat Takeaway, Uber Eats and Deliveroo in Spain especially and Italy?
6.
You mentioned the gen 2 players’ ability to improve coverage from 60% to 80% in Spain. Is the additional coverage achieved by leveraging marketplace orders rather than logistics orders?
7.
What’s the general cost per platform of securing and acquiring the restaurant inventory? I assume it varies and some inbound restaurants will seek to join the platform.
8.
What’s the cost for these platforms to secure new supply? You mentioned the real fight and the real cost was in the local champions category.
9.
How do you assess Just Eat, Deliveroo and Uber Eats’ relative wallet shares in the local champions category?
10.
You mentioned that, in the category shares, 50% of orders were driven by the big-brand QSRs, 20- 25% were from the relatively small number of local champions and the long tail made up the rest. How do you think this mix will evolve? Do you expect the QSRs to continue growing as they add more of their restaurants to the platform? Do you think they can grow their share of the total spend or total orders by doing so?
11.
What share of customers or active users on the platform only order from QSRs? I know some people who will only order from KFC or McDonald’s.
12.
Do you think it’s more likely that QSRs consider building their own delivery infrastructure, such as McDonald’s perhaps starting to hire its own riders, or that they use one of the aggregators as a white-label platform and just manage and brand the front end?
13.
Do you think that the QSRs will consider using promotions for their own channels as leverage to negotiate down the platforms’ commissions? McDonald’s talks about McDelivery in some co-branding efforts between McDonald’s and Uber Eats. Is this the company familiarising the consumer with the concept for a broader push into white-label delivery?
14.
Do you think the competition for local champions will limit the platforms’ ability to extract higher commissions from their restaurant partners?
15.
Do you think white labelling is relevant for local champions or is it largely just the QSRs that could wield white label? Some solutions in the US are targeted at local champions.
16.
Do you think software or an interface between restaurants and aggregators could start negotiating favourable commissions from the platforms, to pool the restaurants they have and negotiate on behalf of them as a collective? Olo comes to mind, but I’m not sure how established that is in Spain.
17.
Do you think commissions will grow over time or is the competitive landscape too fierce and it’ll be difficult for any platform to raise commissions meaningfully over the mid-term?
18.
How significantly do you think regulation might impact gen 2s or the gen 2 business model, given the Spanish courts were discussing couriers being employees of the businesses?
19.
How important do you think on-demand grocery will be for the aggregators as a growth driver going forward? How big a market might that become vs the traditional food delivery market?
20.
What are the on-demand grocery players’ unit economics compared to traditional food delivery? There are a couple of models. Some on-demand super-fast grocery players are managing their own SKUs and inventory, whereas others are putting inventory in a dark store on behalf of Carrefour and other branded supermarkets. How do the different models shake out?
21.
How are players such as Gopuff’s gross margins as high as 30-40%, as you noted? How do unit economics such as inventory and delivery costs work into this?
22.
What range of appropriate or reasonable mark-ups can players expect to achieve?
23.
How does it work when everyone is pursuing the same strategy of building out dark stores in the same places? I presume that harms the throughput per dark store for as long as people are opening up new ones.
