Cat Rock posted a thoughtful presentation with their thesis on $JET
https://justeatmustdeliver.com/letters
In">https://justeatmustdeliver.com/letters&q... the spirit of debate, let’s dig in:
https://justeatmustdeliver.com/letters
In">https://justeatmustdeliver.com/letters&q... the spirit of debate, let’s dig in:
BUT HOLD ON - JET the Meituan of the West?
Meituan is THE example that shows why the JET approach is wrong: with enough scale/density, 1P delivery works - easily.
Someone will end up w/higher density, structurally lower cost - share loss is structural https://twitter.com/CharlieZvible/status/1304405099876409346?s=20">https://twitter.com/CharlieZv...
Meituan is THE example that shows why the JET approach is wrong: with enough scale/density, 1P delivery works - easily.
Someone will end up w/higher density, structurally lower cost - share loss is structural https://twitter.com/CharlieZvible/status/1304405099876409346?s=20">https://twitter.com/CharlieZv...
JET relies on this logic: 1P logistics doesn’t work in food delivery (doordash, ubereats, deliveroo going to zero - or at least "become rational"), big urban markets all that matter, 1P players won’t be successful adding 3P. Their mgmt has never fully bought into logistics.
But
But
JET did a defensive deal to acquire the share loser in a 4 player market with no geographic overlap.
Core to JET is the belief that the UBER/Doordash business models don’t work.
So how does JET plan to turn around GRUB?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
Core to JET is the belief that the UBER/Doordash business models don’t work.
So how does JET plan to turn around GRUB?
Copy those same strategies from Uber/Doordash they said don& #39;t work.
(taking liberties and pasting together 2 of their slides - left slide tied to right - for ease of illustration)
Increasing discounts:
(taking liberties and pasting together 2 of their slides - left slide tied to right - for ease of illustration)
Increasing discounts:
$UBER / Doordash are adding 3P and takeout (free $$), adding promoted listings (free $$), and seeing mix shift from Chains to independents ($$). GRUB is adding Chains, already has Promoted Listings and 3P, and adding 1P (which it thinks lights money on fire).
Uber
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Rakete" aria-label="Emoji: Rakete"> Grub
https://abs.twimg.com/emoji/v2/... draggable="false" alt="😟" title="Besorgtes Gesicht" aria-label="Emoji: Besorgtes Gesicht">
Uber
Unlabeled, how different does this look vs. 3P eBay in [2012] against AMZN?
JET: it’s not too late, to say I’m sorry. And walk away.
https://twitter.com/CharlieZvible/status/1291518286748954628?s=20">https://twitter.com/CharlieZv...
JET: it’s not too late, to say I’m sorry. And walk away.
https://twitter.com/CharlieZvible/status/1291518286748954628?s=20">https://twitter.com/CharlieZv...