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Been ruminating on @ShaneAgronomy& #39;s recent post from last week, comparing aggregators to platforms within AgTech. In the post, he& #39;s agnostic as to the right path, but his logic has implications that aren& #39;t agnostic at all. https://upstreamaginsights.substack.com/p/aggregator-marketplaces-vs-platform">https://upstreamaginsights.substack.com/p/aggrega...
In the case of ag retail, it& #39;s a battle among aggregators. Amazon and Barnes & Noble fought over books. Digital won because of a superior user experience and efficiencies wrought by technology. However, WalMart exists as a hybrid business and Amazon has purchased @WholeFoods
Traditional ag retailers already act like marketplaces and have been building their digital presence. Digital-native retailers may have a short-term advantage in data+AI, but retail is a physical business and will have to cross over. You can& #39;t send fertilizer in the mail.
The grain buyer side is different. There is no marketplace because grain sales are inherently local: how many buyers are close enough to the farmer? Plus, "marketplace" is a dirty word among grain buyers, since it suggests a disruption to their traditional business.
Platforms will dominate on the grain marketing side. Buyers both want to provide price transparency to their customers *and* better, more personalized service to their customers. The Shopify model is the @bushelpowered model, which is why their raise last week was significant.
In the end, it& #39;s all about the customer. Retailers are a pass-through who sell products from many vendors to their customers; grain buyers want to maintain a strong, personalized relationship with their customers.
What does this mean for #AgTech? Will we see more platforms pop up, building software for grain buyers? Will they build software themselves? What other companies should we be paying attention to?
Curious to hear your thoughts.
Curious to hear your thoughts.
p.s., my favorite article on this subject continues to be @Walt_Duflock& #39;s brilliant "Why isn& #39;t there an eBay for ag?" https://medium.com/agrifoodtech-innovation-and-commercialization/agrifoodtech-alchemy-issue-2-why-isnt-there-an-ebay-for-ag-a777fb7a0ad6">https://medium.com/agrifoodt...
