The Exchanges

Q Not at all, but I want to start today. There's a lot of misnomers around the space, there's a lot of gossip around the space, and I want to start today on really the core, because I think this is where the misnomers actually lie. Diving straight into the deep end here, Ralph, can you walk me through the unit economic breakdown of how this business works?

A Yeah. So I think Harry, before we go into the unit economics, what I want to put at the very beginning of our talk today is that there are secular trends whereby customers more and more looking into getting things delivered. Customers appreciate a more social, a more personalized, a more speedy consumer proposition. And I think what we are doing first and foremost is to adhere and to react to very clear secular trends that we're seeing out there in the market. On demand is a reality. It's not an illusion. It's not a wish. It's not that we are forcing something onto someone else. We are reacting to a clear demand profile, and those secular trends got accelerated through COVID. But even before, as we see city populations exploding, as we see evolution of younger generation that spends more time behind the mobile screen than in face-to-face interaction. So that's what we are trying to build, and that's what we are trying to respond to. And now to your question around the unit economics, and I think understanding the unit economics needs to be contextualized with How do usual supermarkets work, right? So we're not comparing ourselves to potentially other online platforms, but we're comparing ourselves against traditional, mostly offline supermarkets. And what do offline supermarkets do? They allow us as customers to fulfill our weekly or monthly grocery shopping demands. And depend…

AI assessment note: “before we go into the unit economics, what I want to put at the very beginning”

Q that not just make your job harder? If we take, like, personalization and local brands, say, the model seems much more straightforward when you have very limited SKUs, you order in mass bulk from large suppliers, you can get economies of scale from doing so. When you think about personalization, Local brands. This really changes, like, the challenge in terms of fulfillment, but then also the economics. Does it not?

A Well, I think there are, like, a lot of, basically, misconceptions around what are all these different, like, new e-commerce players doing, and, like, every company in that space finds a different angle, and we can talk about that, basically, separately later, at a later point of time. So what we are doing with Joker is to create a platform that resolves on all of The frequent and recurrent consumer demand for like consumer products, which means we're not only limiting ourselves to convenience products. We're not only limiting ourselves to like grocery products, but we're really creating an e-commerce platform that agnostic of the product category and agnostic to the amount of SKUs that we're able to make available to customers to really care about what is it that customers want and when is it that they need it. And the intersection of what and when and the underlying algorithms that we built based on that, they determine the level of personalization. They determine when do we procure and from whom do we procure. And they also led us to the decision of completely opening up our supply chain infrastructure to both the global suppliers as well as the local producers to democratize supply chain, which is not given in nowadays world because in nowadays world supply chains are monopolized, dominated, By the large CPGs, and they don't allow for a lot of opportunity for small and loca…

AI assessment note: “there are, like, a lot of, basically, misconceptions around what are all these different”

Q that not just make your job harder? If we take, like, personalization and local brands, say, the model seems much more straightforward when you have very limited SKUs, you order in mass bulk from large suppliers, you can get economies of scale from doing so. When you think about personalization, Local brands. This really changes, like, the challenge in terms of fulfillment, but then also the economics. Does it not?

A Well, I think there are, like, a lot of, basically, misconceptions around what are all these different, like, new e-commerce players doing, and, like, every company in that space finds a different angle, and we can talk about that, basically, separately later, at a later point of time. So what we are doing with Joker is to create a platform that resolves on all of The frequent and recurrent consumer demand for like consumer products, which means we're not only limiting ourselves to convenience products. We're not only limiting ourselves to like grocery products, but we're really creating an e-commerce platform that agnostic of the product category and agnostic to the amount of SKUs that we're able to make available to customers to really care about what is it that customers want and when is it that they need it. And the intersection of what and when and the underlying algorithms that we built based on that, they determine the level of personalization. They determine when do we procure and from whom do we procure. And they also led us to the decision of completely opening up our supply chain infrastructure to both the global suppliers as well as the local producers to democratize supply chain, which is not given in nowadays world because in nowadays world supply chains are monopolized, dominated, By the large CPGs, and they don't allow for a lot of opportunity for small and loca…

AI assessment note: “we can talk about that, basically, separately later... So what we are doing”

Q Not at all, but I want to start today. There's a lot of misnomers around the space, there's a lot of gossip around the space, and I want to start today on really the core, because I think this is where the misnomers actually lie. Diving straight into the deep end here, Ralph, can you walk me through the unit economic breakdown of how this business works?

A Yeah. So I think Harry, before we go into the unit economics, what I want to put at the very beginning of our talk today is that there are secular trends whereby customers more and more looking into getting things delivered. Customers appreciate a more social, a more personalized, a more speedy consumer proposition. And I think what we are doing first and foremost is to adhere and to react to very clear secular trends that we're seeing out there in the market. On demand is a reality. It's not an illusion. It's not a wish. It's not that we are forcing something onto someone else. We are reacting to a clear demand profile, and those secular trends got accelerated through COVID. But even before, as we see city populations exploding, as we see evolution of younger generation that spends more time behind the mobile screen than in face-to-face interaction. So that's what we are trying to build, and that's what we are trying to respond to. And now to your question around the unit economics, and I think understanding the unit economics needs to be contextualized with How do usual supermarkets work, right? So we're not comparing ourselves to potentially other online platforms, but we're comparing ourselves against traditional, mostly offline supermarkets. And what do offline supermarkets do? They allow us as customers to fulfill our weekly or monthly grocery shopping demands. And depend…

AI assessment note: “before we go into the unit economics, what I want to put at the very beginning”