The Ledger, every show

“I think in 10 years from now, Amazon and Alibaba will not be the biggest e-commerce companies anymore. They will get disrupted by other companies, younger companies, more creative, more agile companies, and I think people will look back at Amazon and Alibaba l…”

“Only in a situation, and that's what we have figured out, and it's proven by the data that we have, only in a situation where you consistently stick to a 15 minutes delivery window, only then your ability to drive a higher rider utilization can allow you to dr…”

“Existing commerce companies, both offline and online commerce companies, which are only a differently colored iteration of an advertising business. So whoever e-commerce company that you're looking at, and whoever offline commerce company that you're looking a…”

“If you look into the inventory losses and the wastage costs of the likes of Walmart, or even an Amazon, or like normal supermarket chain, it's in the trillions of how much they're losing on a yearly basis of like food and other items that are actually being so…”

“You have to build a lot of that assortment or a lot of that procurement and supply chain infrastructure yourself. You have to become the warehouse and the logistic and the procurement company yourself. And only then you are able to fulfill the very high demand…”

“Look, I think delivery fees are a little bit of concept of the past, right? It sounds a little bit like Yahoo in the nineties.”

“The increase in AOV, the increase in average order value, how much you get customers to Do not, to not only order like one or two items, but indeed order like five, 10, 15 items per order has a significantly higher impact on profitability than charging like an…”

“I think that product margins can converge at scale towards even 50% of revenue over time.”

“I think on a percentage basis, our Gross margin. So after Cox, after product cost and inventory losses, they converge to pretty much the same level across all of the geographies we are in. So they're around like the 40% type of threshold.”

“For your pickers and for your riders, which in the case of Joker, are always like full-time employees, and hence includes all social security contribution, health insurance, and so on.”

“So it takes twice as long for the United States to achieve the same contribution margins as in Latin America, but over a five to 10 years horizon, you will see margins converging to very, very similar levels.”

“And we have already in the vast majority of our cities and in our neighborhoods and in the vast majority of our more than 200 micro fulfillment hubs, we are already yielding positive contribution margins after all delivery costs, picking costs, inventory losse…”

“We think that in one hour or two hours delivery type of basically system, we'll never be able to yield the same profit margins as a 15 minutes delivery model.”

“We yield at maturity three times higher revenue per square feet as in Whole Foods, which is an incredibly professional and incredibly beautiful company.”

“We become the supermarket, the wholesaler, the warehouse company, the distribution company, all as part of our company. And hence the profit pool that we have on the actual product margin is significant and significantly higher than with any comparable marketp…”

“So we would contradict and would oppose the strategy of focusing on standardized catalogs because the joker business is Reversing the thinking of a standardized catalog. So for us, it's not focusing on a standard set of SKUs, be it 1001 1500 or 2000 SKUs that …”

“We are aiming at employing our riders as Full-time employees. We make them basically part of our team, of our culture, and then an equally valued, basically a team member as they would be on the engineering side, on the marketing side, on the operational side,…”

“Even though we are only like six months in business, we have the basically first neighborhoods turning profitable now, even though we expected that ourselves to come in significantly later.”

“So I think we can run a profitable business if the customer comes back just once per week, like four times per month.”

“Allows us to tap into a product margin into procurement margin of up to 50% if we procure local food, fresh items, or locally produced packaged food items as local and as direct as possible.”

“And overall, in terms of the combined delivery and picking costs, we're currently averaging about like. 12 to 15%, depending on the market, both together as a percentage of revenue.”

“We launched our Joker media proposition only some few weeks ago and already in the first month, it's almost contributing five percent of our global revenue. And we believe that in the future for that to reach basically 10 to 15% already in the near term”

“What we are building with Joker is a replacement for the offline supermarket. We're not building a convenience on demand store. We're not building what other refer to as, I don't know, a quick commerce business that is centered around just snacks and alcohol.”

“Our order frequency that is converging towards four to five orders per customer per month, and they would on average spend approximately 50 US dollar when coming to the Joker proposition.”

“Whenever we directly procure, our product margin is around the basically 40% benchmark. We're generating that product margin already for some of our most mature cities and some of our most mature markets, as we already have a direct procurement share of above …”

“So those two elements are the main drivers behind a delivery efficiency in our model that is twice as high on average than with a typical marketplace companies.”

“Because we have seen that in between the 15 to 30 minutes delivery corridor, the difference in customer frequency or an order frequency and customer lifetime value and retention rates This is relatively minor. As long as you move above the 30 minutes delivery …”

“Most mature cities are We're already at a so-called drop rate of in between 3.5 to 3.7 drops per hour per rider, and that is a function of consistently sticking to the 15 minutes delivery guarantee, more than 90% of our orders that we're fulfilling worldwide w…”

“And in our most mature hubs in Latin America, we are already generating 500 orders per hub, whereas we would only need 1000 per month in order to break even on the actual lease cost. So we're already in a situation in most of our Latin American cities and geog…”

“And already more than 50% of our new customers are generated by us organically. They're coming to us through word of mouth, through organic referrals or basically other type of, like, organic channels that we've opened up. So more than 50% of our new customer …”

“We think that at scale, we have like a five to 10% additional margin potential that we can unlock while building private label.”

“We still keep on having 15% weekly growth in new customers.”

“And there are very, very few players out there that have reached the maturity and the level of professionalism that would make it sense to us to look into strategic partnership.”

“Last year, for the very first time, 50% of global FMCG growth was driven by local brands as compared to global brands.”

“Getting a certain drops per hour, which we think is The wrong metric to focus it because you have to focus on whether you make your customers happy and whether you make your team happy.”

“What we believe that's to go down and like converge towards in a combined way of delivery and picking costs together towards like the 10% of 10% of revenue.”

“The single biggest difference between emerging markets and basically some of the so-called like Western countries is the severe. Unefficiency in supply chain management that we see in emerging markets.”

“Going forward, grocery shopping will be more spontaneous. So instead of going to the offline supermarket and do a monthly shopping or grocery shopping every two weeks, That going forward, people will decide more spontaneously, and that's what we are seeing, pr…”

“The more we are able to adhere and stick to the 15 minutes delivery guarantee, the higher the order frequency, the higher our retention rate, the higher the customer lifetime value.”

“The product margins for fresh produce in Latin America are significantly higher than the product margins for fresh produce in the United States.”

“In Mexico, our average lease cost for the type of warehouses that we are leasing is in between the 3000 to 5000 US dollars per month, which is obviously a fraction of what we would pay in the United States, where lease costs are then rather in between the 15 t…”

“In the future, we will open up to other product categories so that if you're sitting at home or in the office, or if you're at a gathering at an event or wherever you are, you have the ability to order what you need in that particular moment. And it will alway…”

“No, private label is a big focus of ours. We're doubling down on our efforts with regards to basically a private label product offering.”

“The average group AOV is currently at around like, 25 US dollars, which is already representative of like a bigger grocery basket instead of just like a fill up basket.”

“So one of the things that we have done was to break down the entire Western world, every single city of the world into 300 times, 300 meter hexagons. And we have developed our own iteration of a Google Maps type of tool”