Hello, everyone. Good morning or good afternoon, and welcome to our today's conference call. In the past, we haven't always hosted a call on the publication of our half year report. But given the announcement of the acquisition of InstaShop today, we wanted to offer this additional touch point for you. You have probably all seen the press release in the morning and have received the H1 report and also the slide deck for this call by e mail.
If not, of course, all documents are available on our website. Nicolas will start the call with a summary of the InstaShop acquisition before Emmanuel is going to give some remarks on the H1 result. And after that short introduction, we will open it up for your questions. And maybe can I already say that would be great, It's a courtesy to all the other participants if you can limit your questions to two later on? And with that, let me hand over to you, Nicholas.
Thanks, Daniel. And hey, and welcome to our call today. We hope you are staying safe and healthy. So a strong q two and a very good start into q three, we are happy to now also announce the acquisition of InstaShop. We believe this is a fantastic acquisition that fits perfectly to our strategy.
We have made great progress in the quick commerce space and, in particular, around grocery. We're already acting in this field in two ways. We act as an agent where we deliver groceries that customers have shopped at one of the more than 20,000 vendors we partner with, and we are also acting as principal when it comes to our own DMARC. So that's our small warehouse position close to our customers. We believe opportunity in grocery is large, and with this acquisition, we gained further capabilities and speed.
We have known the Instashop team for over a year or well over a year. And during this time, we have built very strong conviction in their team and their product as well as their service. Compared to the 100 plus other grocery platforms that we have also looked into, the InstaShop experience is a magnitude better than anything else we have seen over the last few years. And we believe that together with Delivery Hero, we can further leverage our logistic capabilities, demarch product and marketing experience to further help them grow even faster. The current strength in MENA is, of course, an extra bonus to us.
As you know, this is a key region to us where we will continue to push strong partnerships, product offering, and service, provide a world class service to the people in this region. So then going to some back to run on the numbers. So since Jana and John founded InstaShop in 02/2015, they have launched the service in five countries in in MENA that you can see in the chart here. It's a pure marketplace, meaning that vendors are responsible for picking and delivering. The average delivery time is four to five minutes, which is great for being a marketplace, but slow compared to to our DMARC.
We currently have about 1,500 vendors as partners on their platform and around 50,000 active customers in the 2020. And just qualitatively, we have been amazed by the cohort data. It's been significantly better than any other grocery platform we have seen, and we think this is a further evidence to have both that the best customer experience. Revenue is generated from commission rates paid by vendor, fixed fee paid by customers, and revenue from PPT companies for disability and other services. When it comes to these structures, let me go to slide four.
It gives some details. Here, you can see we have acquired 100% of the outstanding shares of InstaShop based on a valuation of 360,000,000 US dollars. The initial price was paid or the initial price that we paid was 270,000,000 US dollar approximately. As you know, it's important to us to keep strong founder teams on board of the companies we acquire. We want them to continue to drive the business forward and expand it.
Given our scale, platform, and network, we are confident that we can significantly contribute to this, and we want the founders to know that they will also profit from the value creation we generate together. So, hence, there is not the third component of the purchase price that's dependent on the growth and the profitability of InstantShop in the future years. We will, of course, be more than happy if that component is going to be very sizable as it means that the business has increased significantly in size but also in profit in the near term or midterm. To put the valuation in perspective, using q two two thousand twenty as a run rate basis, InstantShop stands at an annualized GMV number of around 300,000,000 US dollar, which corresponds to an increase of about 330% year on year. And, importantly, while doing so and having this fantastic growth, that was recorded at positive EBITDA for the first six months of this year.
So, overall, to recap, I think it's fair to say that the company is not only a super fast growth mode, but has proven the business model that bring it into profitability already. We are excited about the additional growth that we can achieve together, and we are ready to invest into the expansion of the footprint even if that would mean to forego profits for a while. Together with the management team of InstaShop, we want to utilize as much of the potential that we see in the assets in the coming years. So with that, I'll hand over to Emmanuel to give some remarks on the h one report. Thank you, everyone.
Thanks, Nicholas, and good afternoon, everyone, also from from my side. As was mentioned already, we are using this opportunity to give a small update on the h one numbers even though we already published most of it in our q two training update a month ago. The numbers we have published have then haven't really changed. But in the report released today, we have now also included an update for profitability by segment. Moving to our to slide six and here first, I'd like to reiterate some of the impressive numbers, growth numbers on the top part of the slide.
In the first six months of this year, order numbers have increased by 93% year on year to 590,000,000 19,000,000, and GMV was up by 63% year on year to €5,100,000,000. And just as the orders, our total segment revenues was also have also almost doubled over the first six months nineteen with an increase of 94% to €1,100,000,000. And all numbers all these numbers as an accelerated year on year growth in q two this year. As you know, the total segment revenues are defined before the effect of deducting for revenue discounts, which mostly are poachers we use to to acquire new customers. And the proportion of these discounts to to revenues stood at 15% for the first six months of the year.
And that compared to 12.2% in the first six months twenty nineteen and to 17.5% in the second half of last year. So you see that we strongly increased the the use of vouchers in the course of '19, And a good part of this are in Asia and specifically in Korea. But we are now on the downward trend that we have guided to before. In terms of profitability, our gross profit was stable year on year and reached €167,000,000 in H1 twenty twenty after €168,000,000 in the same period of 2019. And given the strong growth, we have shown the gross profit margin, therefore down at 17.5% compared to 32.9% in the same period of the prior year.
We have already mentioned the factors for that in the q two trading update, but let me reiterate them here. So the main reasons were lost revenues and the corresponding profit contribution for the MENA segment due to COVID nineteen related restrictions. We have stated that this effect alone accounted for 45 to €55,000,000 in gross profit for the first six months. Maybe here, a short comment on the MENA regions.
We have
we've seen that the restrictions are being lifted during the last weeks and months. And on August 30 for this month, the crop shares in Kuwait will end, which means that the last module market would be without crop shares again. Furthermore, this is the second aspect. Delivery share in Asia increased year on year, and we initiated several measures to to support restaurants during the COVID nineteen, such as the waiving of the onboarding fees and also, like, free delivery campaigns to to support the local restaurants. And lastly, the fast opening of our new demarks across almost all segments impacted negatively their gross profit margin in the first six months, but this negative impact is obviously not permanent.
Now looking at the year, the numbers for the group have been confirmed and to be at negative by minus 28.4 for for the first six months, therefore, slightly up compared to to the same period of time last year, so h 01/2019. And if you look at the at the four geographies of our platform business, all regions show an improvement in the EBITDA margin. The integrated vertical segments that we introduced this year year stood at minus 43% after the first six months of 2020. And now let's move to the next next slide. And finally, and also in terms of guidance, nothing really new here.
As you can see on Slide seven, we are fully confirming the guidance that we have updated a month ago. So remember that we have raised our guidance for total segments revenue in the range for between 2,600,000,000.0 to €2,800,000,000 up from 2.4 to 2.6 years before. And the EBITDA margin is in the range between minus 14 to minus 18 for the full year 2020. We also have reserved an additional flexibility of up to a $11,515,000,000 euros, of which 20 to €30,000,000 are earmarked for for the launch of our activities in Japan. Talking about profitability, I would like also here to mention again the guidance for two of our our segments, which is Europe and MENA.
For Europe, we expect to reach breakeven on the full year basis in 2020. And despite the impact I mentioned from COVID nineteen on the MENA segment, we still expect this segment to generate an adjusted EBITDA higher than '9 2019 in in absolute terms. So with that short recap of our numbers, I would like to thank you for your attention. And we are now looking forward to your questions. Thank you very much.
We will now take our first question from Giles Thorne from Jefferies.
You. Please
go ahead. Your line is open.
Brilliant. Okay. Thank you. My first question is well, both questions are on Insta InstaShop. The first one is the grocery marketplace model is now pretty common, but having all the merchant partners do the delivery as is the case with InstaShop feels less common.
Grocery today is, as I'm sure well, you are infinitely aware, has been mostly crystallized by the platform during the delivery. So InstaShop stands out a little bit as being different. It'd be interesting to know why in its countries of operations, the the vendors are generally doing the delivery rather than the platform. And second question is, you know, I've certainly interpreted some optimism around dark stores from many dimensions, but one of them being that the economics there are broadly better than the merchant partner model. And yet you've gone out and bought a merchant partner grocery marketplace.
So a bit more into the logic for the deal. Why didn't you use that capital for more dark stores, for example? And then kind of if you could add in color around how this will impact your allocation of capital going forward. That was it. Thank you.
Perfect. Hey, Regent. So I'll try to answer those two questions. We we they've taken the approach of being more of a marketplace, but it doesn't mean that all the vendors are doing their own delivery. They are often outsourced to delivery experts in in in the region.
So logistics might still be organized in a a professional matter even if it's not actually organized being system stuff. I think I know they have been very successful in doing that, so I have nothing in doing that. Of course, I do think that we have the best logistic efficiencies and and so on. If someone else can make an additional margin on that logistic, then maybe that is something to be looked into that because I don't know. I I don't think anyone would be able to do more margins than what we can do.
But I'm getting nothing gains and letting someone else deliver. And in this case, they have proven that they have been generating very good cohorts, so the the reorder rate is very, very high, and it's a profitable business. And if they do that by by by externalizing logistics, that that was interesting. I think when it comes to DMARC, we still maintain that that is is economically more possibility to to drive margins. And in particular, you can drive speed of delivery significantly.
But, of course, it's not very easy to set up DMARC because it it it requires a lot of scale and and and so on. So so I don't think that is for everyone. So I also understand that InstaShop have not been approaching this there because it would simply not have been possible. For us, I don't know. Doing the InstaShop transaction or investing in DMARC is not one or another, and it can be both.
And I think that both complementary each other. And sometimes you wanna have something in fifteen minutes, or sometimes maybe you wanna go to Car 4 or you wanna go to some of the vendors. And and and and the D Mark doesn't have to be the choice for every customer, and and, therefore, I do think that it complements these other small numbers. My my previous comment is more like, it's very hard to get groceries to work economically. But in this case, we we have one example out of many out of very few to to to dump so.
Okay. Understood. Thanks, John.
We will take our next question from Andrew Gwyn from Exane from Exane.
Hi, good afternoon everybody. Yes, kind of following on from that question. I'm just wondering if there's anything more that we could take away and learn from InfoShop that would be applicable to the broader business. I mean you mentioned, for instance, the money you can make from CPG insights. So perhaps if it's that bit short, elaborate a little bit on that.
And then the other one, just a sort of mini trading update, if you will. I know it's not too long I spoke, but and, obviously, no change to the guidance. But just a little bit of an update on how how sales have been during August. Thanks so much. Sure.
Hey, Andrew. Yeah. There are a lot of learnings that we have made. It's been very interesting experience, and and there's a lot of learnings that I think we can give as well. I'm I'm a little bit hesitant to share all those learnings because I I also understand that there are many industry players potentially getting the materials on this call.
So but if if specifically on the CPG companies, they they have a lot of value of platforms like this. It's a distribution partner. And the larger that distribution partner is, the the the more value one can create. This means launching new product items or or simply making product items visible. So the same way when it go to a grocery store, it will be some by the shelf, the middle of the shelf or in front of the cashier system, or they they make their the product very visible, and they pay the grocery store for that visibility.
The same come to us as a shop. You have the visibility in the app. There will be what are the product items that that are that are most visible. Maybe there are new things they wanna sell, a new product they wanna try. There is, of course, also an an enormous amount of more data and analytics that we can do.
What are the products that actually works? There are also a combination of products that are a little bit harder to do in a in in in a storm. And, of course, you can roll it out very quickly in multiple markets. So the the value that we create for CPG companies is enormous, and it's only gonna increase as we get more scale. And, therefore, we we work increasingly close with them to help them driving more business and and help them selling their product.
And and and, of course, we will also make a fee for that. And on the other question, which is around the sales, sales has been very good. I I we we we q three has has been been a very good quarter. And I think with the the curve is now being released even further in in Kuwait and other places, that is, of course, also a little bit of a tailwind that we're having. We we remain very bullish about the business.
Okay. Thanks very much. Okay. Thanks very much.
Thanks.
We will take our next question from Andrew Ross, Barclays.
Great. Good morning, everyone. Thank you for the question. I've got two. First one is on Korea.
I think there's a couple of press articles out this morning talking about a tax investigation that's going on there into you guys and some other international companies. So just wondering if you can update us as to what's going on there and any read over to the WUWUR transaction that we should be worried about would be helpful. Then the second question is on the gross margin, which you called out in the first half was clearly a little bit weak and there's a lot of moving parts around why that was the case. But it would be helpful if you could just go into a bit more detail as to how you see the gross margin trending in the second half? And anything else you can give us around what gives you confidence about gross margin as a percent of GMV can get up to double digits over time, which I guess is what you need to do to get to your long term EBITDA margins.
Thank you.
Perfect. You.
Think I would take the one and the two and then you will complete the other two, I guess. We we can confirm that the Korean National Tax Service initiate an audit of Telegraphia or Korea or UAE. The tax inspections concerns 21 multinational companies. So this is our 21 national companies that have been audited at the same time.
Procedure is itself is is very common in Korea, and it ends at accessing our practice of transfer pricing. So the key focus of this audit is on transfer pricing policy and the way we set it up. So, you know, the our local team, our local finance team is there in collaboration with with us in the headquarter of central. I've always been working closely with our with the tax or my consulting partners to ensure that all processes are compliant with national regulations and also very well documented. So, you know, we will we commit to full transparency.
We are working together with tax authorities, and we provide them with all information they need. And maybe I can highlight here that the transfer pricing policy and documentation have been introduced already back to 02/05/2013 '14. So that's our you know, we we've been extremely focused on having a clean documented transfer pricing policy. From what we understand, we do not expect this audit to have any kind of impact on the approval process concerning the the OOBA transaction. Since it doesn't have any kind of competitive effects.
They are two two separate events. We know no kind of connection to each other. And then on the second question concerning the the gross margin and the evolution from h one to h two, I think what I can what I can say is that, first of all, in general, in this business, you have a seasonality. So h two is always better than h one. We've seen this in the last years, that would be the case also this year.
The margin, as we state, you know, in in q two and also today, the gross margin was impacted by by by Neenah. I mean, like, you know, we've we've been there impacted by COVID. We had a lot of orders. We we we evaluated gross profit loss that we had through COVID only for this region by 45,000,000 to €55,000,000 And there as we mentioned, the last date to wait or to lift the restriction would be COVID in few days. So that means that for us, the second half of the year, we should have the full benefit of sort of MINAM.
And also, like you're you've seen the level of purchase that we are reducing. So this is our concerning the ESIS treatment. That will also improve the margin and gross margin going forward in h two. And besides that, sir, you know, we we put a lot of efforts and looking at their unique economics and improving this. So I think all this issue combined, so, like, the properties combined with seasonality may not come in factor from COVID nineteen in h one where it can impact it to h two.
This all combined give us some confidence around the gross profit margin.
Thank you. Yes. I can only iterate that you also asked a little bit for the long term margins and our confidence improved. So as exactly as Edman has said, all markets have improved their economics, their gross profit on own delivery, and it will continue in q three as well. There's only Nina actually is not improving, but that was due to curfews and and so on.
I think and also then you have the mixed effect, of course, Asia becoming a larger part, and Asia was one market where we or one region where they've been doubling down, and they have been most aggressive, but that's also where we see the largest improving gross profitability. So so you will have the positive effect also on that as you go into the the next couple of quarters or so. Then discount is also because now we're looking at discount basis. You you've seen that it has dropped a little bit. Q two was also lower than q one, q one was lower than q four, and q four was lower than q three.
And this will also continue for q three, but I expect that it will be a larger drop. The reason for doing these discounts is usually to get customers to try something out. They usually give it to the first couple of orders, but maintaining discounts over time makes no sense. It's it's very costly and so on. So once they reach a certain size in the market, it makes no sense.
But, of course, we have a lot of markets at early stage, in particular, in Asia. If you look at the h one, Thailand was early stage, Malaysia was early stage, Philippines was early stage. All of those markets are now becoming very sizable, and therefore, the proportion of discount is drastically also dropping there. Same way to go for a new vertical, it it incentivize people to try something new. And we have a good return on it.
We have bad return actually on those customers on a nondiscounted reorder rate basis. So we don't look on a reorder rate basis with a discount, but actually reorder rate basis on a nondiscount basis. And the lifetime value of those customers is lower, but it's not lower than what we get from a lower CPA point of view. So, therefore, net effect is actually very valuable building your base that way. So I think all combined yeah.
I know that there are many levers coming at the same time, so we are very optimistic by by q three and q four.
Very helpful. Thank you.
And and I forgot. Sorry about that. No. My main point was to ask long term. Yeah.
I know we we I I think some players describe it as adjusted net revenue. I know that is not the same as gross profit, but I think they target for 15% of adjusted net revenue. Then, of course, you have other items like server cost, customer care cost, and and and and a few other things. But we still think that in the long run, maybe that can be in the order of magnitude 11 to 13%, probably, hopefully closer to to 13, but that's that's the range, including then customer service and and everything that has a variable component.
We will take our next our next question from Markus Dieben, JPMorgan.
I think the main questions have been asked. Only one question is left from my side. Niklas, I'm still not fully I still don't fully understand how to valuate this acquisition. And does it mean that you decided now to move maybe a bit early into the value chain? You highlighted previous times that you see yourself more and more as a logistics company.
Now we've seen the acquisition today. Is there also an element of kind of seeing these kind of acquisitions in online grocery in other areas, but potentially also that you move earlier into the value chain when it comes to restaurants? Is that something that you also think about it at this point? That's what I just want to understand, whether it's most of the opportunity that you just grabbed or if there's now the time for delivery here or to to make major moves maybe at the beginning of the value chain, if that makes sense.
Yeah. Perfect. So, yeah, we we highlighted a couple of times before, but, of course, without being too clear that we we we find it too diluted to make some of those mega acquisitions unless there's a very strong strategic sense like with Uber Brothers. We we we just find it too diluted. We we then rather invest in our own customer experience and and and bring more value to the customer.
However, we did say that anything that is is adding our capabilities has a lot of value Because in this case, we we we get a good value for this. Of course, there's a good stand alone value for that we can acquire this business. But we can also add a lot of value to it, and we can also get a lot of value from the knowledge and and cross opportunities here. So, therefore, there there's a multiple effect of the value creation here, and that's why these kind of acquisitions make sense. They're also slightly smaller in size, so it's also less dilutive.
And that's that's why we we we like to have something more than just size. Just having size is is is is not that valuable anymore, and that's that's we do for our own business and our own growth. In terms of early in the value chain, we we we try to do that. We already do that by our own initiative because we know it it in order to create the best customer experience, you have to work very closely into integration into restaurant or into grocery stores like InstantShop is doing where you integrate in the POS systems. You also provide them with with a number of other technologies to help driving their costs down and and add more value to them also for the customer.
It is a tight margin business overall if you look at food and and and food delivery, And that's why every cent matters, and that's why and we wanna be as affordable and as good as we possibly can, and that's why we are willing to to go a little bit deeper into the value chain, and we'll continue to do so. If you do that through acquisitions or our own initiatives, yeah, that's that's to be seen. But, yeah, that's to be seen. Yeah. Okay.
Thank you.
K. Thanks. Thanks.
Our next question comes from Monique Pollard from Citi.
Just two questions from me, please. The first one is around the competitive dynamics in Korea during the first half. Given Kupang has launched same day delivery of fresh food, just wanted to understand what you've seen there in terms of the competitive environment and whether that changes or increases the likelihood of the career deal completing. The second question was around delivery times and how exactly they're measured. Some customers, Amina, tell me that typically from the time that they go on they go on InstaShop, for instance, to order to the time that food gets delivered, it's about more like two to three hours.
So just trying to understand that.
Got it. So on the competitive dynamics in Korea, yeah, this is a highly competitive market, and especially, it is strong competition in in our grocery space and delivery of ecommerce items. And you have, of course, Naver. You have Katao. You have Kupang, and you have probably 50 other companies there.
It's a it's a it's a very competitive market that we operate in and in in in in, you know, actually, in all our verticals. So that that maintains the case. But I think together with this, we can challenge some of those competitors, As as I mentioned, the the the the previous one. With this, we we can't step up and be comparative against a neighbor, Cacao, Coupang, and so on. So so, definitely, I I think we will stand the competition well.
In terms of delivery time, they they have also scheduled delivery. So, of course, that is not part of 45. So but when you order on a nonscheduled basis, then it's forty five minutes. There are also certain articles that need to be scheduled delivery. So so it could also be that some people have ordered from there, and then you only have the choice of scheduled delivery.
But but when when you you do delivery ASAP, then average delivery time is forty five minutes from the time we click on on on order until the time it's at your doorstep. So that's how to do that.
Understood. Thank you. Thank you. We will take our next question from Sarah Simon from Berenberg.
Yes. Hi, everybody. I just had a question really about the synergies between your existing MENA business and InstaShop. You said that you're gonna keep InstaShop as a sort of separate business business, but will you promote it like in the way you do with Bunnabi and Yandex. So you have a split screen, or will it still have to do its own customer acquisition?
Thanks. Thanks.
Yeah. So so we'll keep it separate. So we we like to have this focus, and and and and we will keep doing also grocery on our end, but with a slightly different focus and and and so on. But but they will be independent in in that sense. But, of course, we can provide them with logistics for those those stores who cannot offer it themselves or where we see that we can do it better, faster, cheaper, we'll be able to provide that.
We may also at least some of our vendors, and we have 20,000 vendors. They have 1,100 vendors, so we can massively increase their vendor selection in outside of MENA in particular, but also in in in the MENA region. So that will help them also. The same will be the other way around, but there might be certain vendors who now also wanna be part of our our offering. There we will not have a split screen that that we have or that's not the plan at least for it.
We still see that in in the case of Middle East with the Taliban, you have all those grocery stores like Carrefour and so on in there. And then one of those stores is also then the D Mart. That's one other menu. We we don't wanna add another brand name in there so that people go to Talabat in order to convince the shop in order to go to Carrefour. So that's why that is that is not the plan, but rather list those those vendors directly in in in the app.
Yeah. So so I hope that that answered your question. And maybe maybe add a little bit to it. I think in general, the grocery segment is still fairly early. I think a lot of our customers who come to us, they understand that they can order groceries for us.
It's delivered very fast. It's it's one of the best experience we can get. But I also think that some customers will associate us not fully for for that offering in particular. So they would rather than when I think of food and groceries, they would think of InstaShop and therefore go straight to InstaShop. So I think in this case, there's also a a clear value in having a second proposition for those who only think about that grocery or or supermarket type of of product item, having that to those who have not yet associate our brand with with that offering.
Long term, we will have to see if if that changes, but that's what we believe in the short term.
Great. Thanks. Great. Thanks.
We will take our next question from Jurgen Kolb from Kepler Cheuvreux.
Thank you very much. Two questions from my side. First of all, when we look at your earn out period, maybe you could give us an idea as to how long the earn out period for that acquisition will last? And maybe also on the second side, the time frame for your the next steps at your acquisition in terms of what additional partners, what additional retailers you may want to add over what period, when do you think new countries are relevant to step in? So a little bit about the expansion plan you have with your acquisition with your newest acquisition.
And a very quick and last one, Will Infoshop be integrated in MENA region from a reporting perspective or
in the verticals? Thank you. Right. So the earn out is structured over three years, but there are a a a small earn out in year one, small earn out in year two, and then a little bit larger earn out in year three. It's it's done on on on multiples of of GMV and profitability that we find attractive.
You should also keep in mind that we add a lot of value to this business to grow it much faster. And, of course, we should also get the benefit of some of that that we have there. So that's why it's generally very attractive multiples that we get there, but we also help them to scale much, much faster together with us. So so net net, I think it's a good deal for the founders, but also a very good deal for us. Then in terms of how to work with partner scaling and so on, we will do a a a first step into to launching in some of the larger MENA countries as a next step.
We shall not get covered. So that that would happen in in probably more on the short term. Then we will over the next few months, it might take a couple of months here or a few months here until we we we see how we can do this best to to scale up quickly. But it would probably take a few months of preparation and how it can work together, how we sort of take that might be booked so that we can do more excellence in our rollout. But once we do, we we and we we we we will not constrain it as long as we see good result.
Maybe the last one you want me to take the last one? Sure.
Yeah. So to come back to where we we report our InstaShop, are the role of InstaShop is an agent, and as such, we report it under MENA. So we report them under MENA segment and not interviewing verticals. The distinction being our agent versus principal. So to as a reminder, we do when we are acting as a principal, it means, like, when we are buying the goods and store it and then sell it to the customers, we are acting the principal, and that should be reporting on the integrated verticals.
In this case, clean and agents, and we reconsolidate their Instashop on their data.
Very good.
Thank you very much.
Thank you, sir.
So we have the last question. If you would like to go on with the last Please. The next question is from Rob Joyce from Goldman Sachs.
So two from me. The first one, just sorry if I missed it, but how will this will InstaShop be integrated into the local Delivery Hero apps in the markets they're in? And the second one, would you be able to give us an idea of the average basket size, the kind of take rates
take rates
and whether the business is profitable if you were before the the monies from the CPG companies? Thanks very much.
Thank you. So it will not be directly integrated into that, but but we will and we will help list the the partners who want to also be listed and get more volume also from us so we could provide that volume. So that will be listed. There might be some technology that that we will build together. Catalog management could be one, and that there are many other things that we're working on that we might partner on to make the experience better for for for, let's say, delivery pre acquisition entities and and InstaShop.
Same the other way around, we will also not integrate food delivery in InstaShop. We wanna keep InstaShop as a clear target, which specific USP. The same way if you if you imagine US adding Uber to Instacart, I think, will be very confusing. Instacart is good because it's very focused, and the same there. You might not wanna order all your groceries on on a food delivery platform because you you you you think of them as food delivery platform.
And, therefore, when you do groceries, you might rather than go to the the straight grocery stores. I think there is a lot of overlap, and that's what we're gonna use. The the and and that's also why we see a lot of success in growth in our grocery segment also on Talabat, but some customers would still prefer a a clear purpose app. Then in terms of the the average basket of one, it's it's it is higher than what we do grocery delivery. So it is a little bit more of a weekly purchasing pattern than than this this daily smaller batches that that that we generally have, and I think that comes back to the focus their focus of being a clear grocery app, and they are a little bit more of a convenient portion as of today.
In terms of the profitable excluding the CPG, I cannot answer or or we we will not answer, but so so I'll have to pass on this one.
And the take rate, sorry, Nicholas. How does the take rate compare?
I I I'll I I'm not sure if they're giving out If we do, then I'll I'll I'll promise to to come back on that. I I see that that is then I'll come back on that. I think there is something in the presentation, but I'm not sure. I'll I'll I'll pass it now.
Okay. Thank you.
Thank you very much, Rob, and thank you everyone for dialing in. As I said, I'm super, super excited about this transaction. I think it is in the center of what we're building. I think this will further speed up our execution, the quick commerce, which we already do today really well. I think this will add us another significantly edge and and clear position as the the go to app for for for both food as well as quick commerce.
So I'm super excited. This is by far the best access we have seen out there, and we have looked at a lot. We have looked at 100 plus grocery players. Nothing is comparable, and, therefore, I'm I'm I'm super excited working with with the team here. It's gonna be fantastic.
So thank you, everyone.