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 email. If not, of course, all documents are available on our website. Niklas will start the call with a summary of the InstaShop acquisition before Emmanuel is going to give some remarks on the H1 results.
After that short introduction, we will open it up for your questions and maybe can I already say that it would be great as a courtesy to all the other participants if you can all limit your questions to two later on. With that, let me hand over to you, Niklas.
Thanks, Daniel. Hey everyone, and welcome to our call today. We hope you are staying safe and healthy. After a strong Q2 and a very good start into Q3, 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 groceries. We are already active 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 principals when it comes to our own D-marts. That's our small warehouse that's positioned close to our customers. We believe the opportunity in grocery is large, and with this acquisition, we gain further capabilities and speed.
We have known the InstaShop team for over a year or well over a year. During this time we have built very strong conviction in their team and their product as well as their service. Compared to the 100+ 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 two years. We believe that together with Delivery Hero, we can further leverage our logistic capabilities, Dmarts, product and marketing experience to further help them grow even faster. The current strength in MENA is, of course, an extra bonus to us. You know, this is a key region to us where we will continue to push strong partnerships, product offering, and service to provide a world-class service to the people in this region. Going to some background on the numbers.
Since Jana and John founded InstaShop in 2015, they have launched a service in five countries in MENA, that you can see in this chart here. It's a pure marketplace, meaning that vendors are responsible for picking and delivering. The average delivery time is 45 minutes, which is great for being a marketplace, but slow compared to our Dmarts. We currently have about 1,500 vendors as partners on their platform and around 50,000 active customers in the first half of 2020. Just qualitatively, we have been amazed by their cohort data. It's been significantly better than any other grocery platform we have seen, and we think this is a further evidence we have built that best customer experience. Revenue is generated from commission rates paid by vendor, fixed fee paid by customers, and revenue from CPG companies for visibility and other services.
When it comes to deal structure, then we 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 million. The initial price that we paid was $270 million 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. Hence, there is a deferred component of the purchase price that's dependent on the growth and the profitability of InstaShop 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 Q2 2020 as a run rate basis, InstaShop stands at an annualized GMV number of around $300 million, which corresponds to an increase of about 330% year-on-year. Importantly, while doing so and having this fantastic growth, they have also recorded a positive EBITDA for the first six months of this year. 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 by bringing 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 asset in the coming years. With that, I'll hand over to Emmanuel to give some remarks on the H1 report. Thank you, everyone.
Thanks, Niklas, and good afternoon, everyone, also from my side. As was mentioned already, we are using this opportunity to give a small update on the H1 numbers, even though we already published most of this in our Q2 trading update months ago. The numbers we have published then haven't really changed, but in the report released today, we have now also included an update for profitability by segment. Moving 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 519 million, and GMV was up by 63% year-on-year to EUR 5.1 billion.
Just as the orders, our total segment revenues have also almost doubled over the first six months 2019, with an increase of 94% to EUR 1.1 billion. All these numbers as an accelerated year-on-year growth in Q2 this year. As you know, the total segment revenues are defined before the effect of deducting for revenue discounts, which mostly are vouchers we use to our retaining customers. The proportion of these discounts to revenues stood at 16% for the first six months of the year. That compared to our 12.2% in the first six months 2019 and to 17.5% in the second half of last year.
You see that we strongly increased the use of vouchers in the course of 2019, and a good part of this 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 EUR 167 million in H1 2020 after EUR 168 million in the same period of 2019. Given the strong growth we have shown, the gross profit margin therefore down at 17.5% compared to our 32.9% in the same period of the prior year. We have already mentioned the factors for that in the Q2 trading update, but let me reiterate them here. The main reasons were lost revenues and the corresponding drastic contribution for the MENA segment due to COVID-19 related restrictions.
We have stated that this effect alone accounted for EUR 45 million-EUR 55 million in gross profit for the first six months. Maybe here, a short comment on the MENA region. We've seen that the restrictions are being lifted during the last weeks and months, and on August 30th, so this month, the curfews in Kuwait will end, which means that the last Asian market will be without curfews again. Furthermore, and this is the second aspect, our delivery share in Asia increased year-on-year, and we initiated several measures to support restaurants during the COVID-19, such as the waiving of the onboarding fees and also free delivery campaigns to support the local restaurants. Lastly, the fast opening up of new markets across almost all segments impacted negatively the gross profit margin in the first six months. This negative impact is obviously not permanent.
Looking at the EBITDA margin, the numbers for the group have been confirmed to be at negative -28.4% for the first six months. Slightly up compared to the same period of time last year, so H1 2019. If you look at the four geographics of our platform business, all regions show an improvement in the EBITDA margin. The Integrated Verticals segment that we introduced this year stood at -43% after the first six months of 2020. Let's move to the next slide. 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 months ago. If you remember that we have raised our guidance for total segments revenue in the range for between EUR 2.6 billion-EUR 2.8 billion, up from EUR 2.4 billion-EUR 2.6 billion years before.
The EBITDA margin is seen in range between -14% to -18% for the full year 2020. We also have
Reserve an additional flexibility of up to EUR 150 million, of which EUR 20 million to EUR 30 million are earmarked 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 segments, which is Europe and MENA. For Europe, we expect to reach breakeven on a full-year basis in 2020. Despite the impact I mentioned from COVID-19 on the MENA segment, we still expect this segment to generate an adjusted EBITDA higher than 2019 in absolute terms. 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.
Thank you.
Please go ahead. Your line is open.
Brilliant. Okay, thank you. My first question is Well, both questions are on 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 you are infinitely aware, has been mostly crystallized by the platform doing the delivery. InstaShop stands out a little bit as being different. It'd be interesting to know why, in its countries of operations, the vendors are generally doing the delivery rather than the platform. Second question is, 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. Yet you've gone out and bought a merchant partner grocery marketplace. A bit more into the logic for the deal.
Why didn't you use that capital for more dark stores, for example? If you could add in color around how this will impact your allocation of capital going forward? That was it. Thank you.
Perfect. Hey, Giles. I'll try to answer those two questions. They've taken the approach of being more of a marketplace, it doesn't mean that all the vendors are doing their own delivery. They often outsource to delivery experts in the region. Logistics might still be organized in a professional manner, even if it's not actually organized by InstaShop themselves. I think they have been very successful in doing that, I have nothing against doing that. Of course, I do think that we have the best logistic efficiencies and so on. If someone else can make an additional margin on that logistic, maybe that is something to be looked into, because I don't think anyone will be able to do more margins than what we can do.
I generally think gains letting someone else deliver, and in this case, they have proven that they have been generating very good cohorts, so their reorder rate is very high, and it's a profitable business. If they do that by externalizing logistics, that's also interesting. I think when it comes to Dmart, we still maintain that that is economically more possibility to drive margins, and in particular, you can drive speed of delivery significantly. Of course, it's not very easy to set up Dmart because it requires a lot of scale and so on. I don't think that is for everyone. I also understand that InstaShop have not been approaching this there because it would simply not have been possible. For us, doing the InstaShop transaction or investing in Dmart is not one or another, it can be both.
I think they both complement each other. Sometimes you want to have something in 15 minutes, or sometimes maybe you want to go to Carrefour or you want to go to some of the vendors. Dmart doesn't have to be the choice for every customer, and therefore I do think that it complements this other small. My previous comment is more like it's very hard to get groceries to work economically. In this case, we have one example out of very few to do that.
Okay. Understood.
Thanks, Giles.
We will take our next question from Andrew Gwynn from Exane.
Hi. Good afternoon, everybody. So kind of following on from that question. I'm just wondering if there's anything more that we could take away and learn from InstaShop that would be applicable to the broader business. You mentioned, for instance, the money you can make from CPG insights. Perhaps just elaborate a little bit on that. The other one, just a sort of mini trading update, if you will. I know it's not too long since we last spoke, but obviously no change to the guidance, just a little bit of an update on 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. There is a lot of learnings that I think we can give as well. I'm a little bit hesitant to share all those learnings because I also understand that there are many industry players potentially getting the materials on this call. Specifically on the CPG companies, they have a lot of value of platforms like this. It's a distribution partner. The larger that distribution partner is, the more value one can create. This means launching new product items or simply making product items visible.
In the same way, when you 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 make the product very visible, and they pay the grocery store for that visibility. The same when you come to us as a shop, you have the visibility in the app. There will be what are the product items that are most visible. Maybe there are new things they want to sell or new products they want to try. There is, of course, also an enormous amount of more data and analytics that we can do. What are the products that actually work? There are also combination of products that are a little bit harder to do in a store. Of course, you can roll it out very quickly in multiple markets.
The value that we create for CPG companies is enormous, and it's only going to increase as we get more scale. Therefore, we work increasingly close with them to help them driving more business, and help them selling their product. Of course, we will also make a fee for that. On the other question, which is around the sales. Sales has been very good. Q3 has been a very good quarter, and I think with the curfews now being released even further in Kuwait and other places, that is, of course, also a little bit of a tailwind that we're having. We remain very bullish about the business.
Okay, thanks so much.
Thanks.
We will take our next question from Andrew Ross, Barclays.
Great. 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. I was wondering if you can update us as to what's going on there, and any read over to the Woowa transaction that we should be worried about would be helpful. The second question is on the gross margin, which you called out in the first half as clearly a little bit weak, and there's a lot of moving parts around why that was the case. 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.
Anything else you can give us around what gives you confidence that gross margin as a % 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 DAL margins. Thank you.
I think you're in the thick of it.
Yeah. I think I will take the one and the two, and then you will complete the other two, I guess. In Korea, yes, we can confirm that the Korean National Tax Service initiate an audit of Delivery Hero Korea or Yogiyo. The tax inspections concerns 21 multinational companies. This is 21 multinational companies that have been audited at the same time. Procedure itself is very common in Korea, and it aims at assessing our practice of transfer pricing. The key focus of this audit is on transfer pricing policy and the way we set it up. Our local team, our local finance team, is in collaboration with us in the headquarters or central. I've always been working closely with the tax or my consulting partners to ensure that all processes are compliant with national regulations and also very well documented.
We commit to full transparency. We are working together with the tax authorities. We provide them with all information they need. Maybe I can highlight here that the transfer pricing policy and documentation have been introduced already back to 2013 and 2014. 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 Woowa transaction since it doesn't have any kind of competitive effect. They are two separate events with no kind of connection to each other. On the second question concerning the growth margin and the evolution from H1 to H2, I think what I can say is that first of all, in general in this business you have a seasonality. H2 is always better than H1.
We've seen this in the last years, and that will be the case also this year. The margin, as we state in Q2 and also today, the gross margin was impacted by MENA. Like you know, we've been impacted by COVID with a lot of orders. We evaluate the gross profit
loss that we had due to COVID-19 are only for this region by EUR 45 million-EUR 55 million. As we mentioned, the last date to wait or to lift the restriction will be Kuwait in few days. That means that for us, the second half of the year, we should have the full benefit of MENA. Also, you've seen the level of vouchers that we are reducing. This is concerning the IFRS treatment. That will also improve the margin, and gross margin going forward in H2. Beside that, we put a lot of efforts looking at the unique economics and improving this. I think all these issues combined, the topics combined with seasonality, MENA coming back from COVID-19 in H1 where it's been impacted to H2. These all combined give us some confidence around the gross profit margin.
Thank you.
Yeah, I can only iterate that you also asked a little bit for the long-term margins and our confidence improved. Exactly as Emmanuel said, all markets have improved their economics, their gross profit on delivery, and it will continue in Q3 as well. There's only MENA actually not improving, but that was due to curfews and so on. I think, you have the mixed effect, of course, Asia becoming a larger part, and Asia was one market where we, or one region where we have been doubling down and we have been most aggressive, but that's also where we see the largest improving gross profitability. You will have the positive effect also on that as we go into the next couple of quarters or so. Discount is also, because now we're looking at discount basis. You've seen that it has dropped a little bit.
Q2 was also lower than Q1. Q1 was lower than Q4, and Q4 was lower than Q3. This will also continue for Q3, 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. We usually give it to the first couple of orders. Maintaining discounts over time makes no sense. It is very costly and so on. Once you reach a certain size in the market, it makes no sense. Of course, we have a lot of markets at early stage, in particular in Asia. If you look at the H1, 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 discounts is drastically also dropping there.
Same way to go for a new vertical. It incentivize people to try something new. We have a good return on it. We have bad return actually on those customers on a non-discounted reorder rate basis. We don't look on a reorder rate basis with a discount, but actually reorder rate basis on a non-discount basis. The lifetime value of those customers is lower, but it's not lower than what we get from a lower CPA point of view. Therefore, net effect is actually very valuable to building your base that way. I think all combined, yeah, I know there are many levers coming at the same time, so we are very optimistic by Q3 and Q4.
Very helpful. Thank you.
I forgot, sorry about that. Her main point was to ask long term. Yeah. 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 of 15% of adjusted net revenue. Of course, you have other items like server costs, customer care costs, and a few other things. We still think that in the long run, maybe that can be in the order of magnitude 11%-13%. Probably, hopefully closer to 13, but that's the range. Including then customer service and everything that has a variable component.
Thank you.
We will take our next question from Marcus Diebel, JP Morgan.
Hi, everyone. I think the main questions have been asked. Only one question is left from my side. Niklas, I still don't fully understand how to value this acquisition. 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 the kind of seeing these kind of acquisitions and 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 this was just an opportunity that you just grabbed or if there's now the time for Delivery Hero to make major moves maybe at the beginning of the value chain, if that makes sense.
Yeah. Perfect. Yeah, we highlighted a couple of times before, but of course, without being too clear that we find it too diluted to make some of those mega acquisitions unless there's a very strong strategic sense like with Woowa Brothers. We just find it too diluted. We rather invest in our own customer experience and bring more value to the customer. However, we did say that anything that is adding our capabilities has a lot of value because in this case, we get a good value for this, of course. There is a good standalone value that we acquired this business. We can also add a lot of value to it, and we can also get a lot of value from the knowledge and cross opportunities here.
Therefore, there is 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 why we like to have something more than just size. Just having size is not that valuable anymore, and that we do for our own business and our own growth. In terms of early in the value chain, we try to do that. We already do that by our own initiative, because we know in order to create the best customer experience, we have to work very closely into integration into restaurants or into grocery stores like InstaShop is doing, where you integrate in the POS systems. You also provide them with a number of other technologies to help driving their costs down and add more value to them also for the customer.
It is a tight margin business overall if you look at food and food delivery, and that's why every cent matters, and we want to be as affordable and as good as we possibly can. That's why we are willing to go a little bit deeper into the value chain, and we'll continue to do so. If we do that through acquisitions or our own initiatives, that's to be seen. Yeah. That's to be seen.
Yeah. Okay. Thank you.
Thanks.
Our next question comes from Monique Pollard from Citi.
Oh, hi. Afternoon, everyone. Just two questions from me, please. The first one is around the competitive dynamics in Korea during the first half. Given Coupang has launched same-day delivery of fresh food, just wanted to understand what you're seeing there in terms of the competitive environment and whether that changes or increases the likelihood of the Korea deal completing. The second question was around delivery times and how exactly they're measured.
in MENA tell me that typically from the time that they go on InstaShop, for instance, to order to the time the food gets delivered, it's about more like two to three hours. Just trying to understand that.
Got it. On the competitive dynamic in Korea, yeah, this is a highly competitive market, and especially the strong competition in our grocery space and delivery of e-commerce items. You have, of course, Naver, you have Kakao, you have Coupang, and you have probably 50 other companies there. It's a very competitive market that we operate in, actually in all our verticals. That maintains the case. I think together with this, we can challenge some of those competitors. As I mentioned the previous one with this, we can step up and be competitive against Naver, Kakao, Coupang and so on. Definitely, I think we will stand the competition well. In terms of delivery time, they have also scheduled delivery. Of course, that is not part of the 45 minutes. When you order on a non-scheduled basis, then it's 45 minutes.
There are also certain articles that need to be scheduled deliveries. It could also be that some people have ordered from there, and then you only have the choice of scheduled delivery. When you do delivery ASAP, then average delivery time is 45 minutes from the time you click on order, until the time it's at your doorstep. 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 going to keep InstaShop as a sort of separate business, but will you promote it like in the way you do with Burnaby and Yemeksepeti? You have a split screen, or will it still have to do its own customer acquisition? Thanks.
Yeah. We'll keep it separate. We like to have this focused, and we will keep doing also grocery on our end, but with a slightly different focus and so on. They will be independent in that sense. Of course, we can provide them with logistics for 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 list some of our vendors. Remember we have 20,000 vendors. They have 1,100 vendors. We can massively increase their vendor selection outside of MENA in particular, but also in the MENA region. That will help them also. The same will be that of Iran, that there might be certain vendors who now also want to be part of our offering.
We will not have a split screen as we have, or that's not the plan, at least, for it. We still see that in the case of Middle East with the Talabat, you have all those grocery stores like Carrefour and so on in there. One of those stores is also then the Dmart, but it's one out of many. We don't want to add another brand name in there so that people go to Talabat in order to come to InstaShop in order to go to Carrefour. That's why that is not the plan, but rather list those vendors directly in the app. Yeah. I hope that answered the question. 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 one of the best experience you can get. I also think that some customers will associate us not fully for that offering in particular. They would rather than when they think of food and groceries, they would think of InstaShop and therefore go straight to InstaShop. I think in this case, there's also a clear value in having a second proposition for those who only think about that grocery or supermarket type of product item, having that for those who have not yet associated our brand with that offering. Long- term, we will have to see if that changes, but that's what we believe in the short- term
Great. Thanks.
Fredo?
We will take our next question from Jürgen Kolb from Kepler Cheuvreux.
Yes. 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, in the timeframe for the next steps at your acquisition in terms of what additional partners, what additional retailers you may want to add, over what period, when you think new countries are relevant to step in. A little bit about the expansion plan you have with your newest acquisition. A very quick and last one, will InstaShop be integrated in MENA region from a reporting perspective or in the Integrated Verticals? Thank you.
Right. The earn-out is structured over three years. There are 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 done on multiples 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. Of course, we should also get the benefit of some of that we add there. That's why it's generally very attractive multiples that we get there, but we also help them to scale much faster together with us. Net-net, I think it's a good deal for the founders, but also a very good deal for us.
In terms of how to work with partners, scaling, and so on, we will do our first step into launching in some of the larger MENA countries as the next step, which are not yet covered. That will happen probably more in the short term. We will, over the next few months, so it might take a couple of months here or a few months there until we see how we can do this best, to scale up quickly. It will probably take a few months of preparation on how we can work together, certain tech that might be built so that we can do more excellence in our rollout. Once we do, we will not constrain it as long as it's a good result.
Maybe the last one. You want me to take the last one?
Sure.
Yeah. To come back to where we report our InstaShop. The role of InstaShop is an agent, and as such, we will report it under MENA. We report them under the MENA segment and not Integrated Verticals. The distinction being agent versus principal. As a reminder, when we are acting as a principal, it means when we are buying the goods and store it and then sell it to the customers, we are acting as a principal, and that will be reporting under Integrated Verticals. In this case, clearly an agent, and we will consolidate our InstaShop under MENA.
Very good. Thank you very much.
We have the last question, if you would like to go on with the last question.
Please.
The next question is from Rob Joyce from Goldman Sachs.
Hi. Good afternoon, guys. Thanks for taking the question. Two from me, and the first one, just sorry if I missed it, but will InstaShop be integrated into the local Delivery Hero apps in the markets they're in? The second one, would you be able to give us an idea of the average basket size, the kind of take rates, and whether the business is profitable before the monies from the CPG companies? Thanks very much.
Thank you. It will not be directly integrated into the app, but we will help list the partners who want also to be listed and get more volume also from us, so we can provide that volume. That will be listed. There might be some technology that we will build together. Category management could be one, and there are many other things that we're working on that we might partner on to make the experience better, both for, let's say, deliveries pre-acquisition entities and InstaShop. Same the other way around. We will also not integrate food delivery in InstaShop. We want to keep InstaShop as a clear target, the specific USP. The same way, if you imagine U.S. 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 want to order all the groceries on a food delivery platform because you think of them as food delivery platform, and therefore, when you do groceries, you might rather than go to the straight grocery stores. I think there is a lot of overlap, and that's what we're going to use. That's also why we see a lot of success and growth in our grocery segment also on Talabat, but some customers will still prefer a clear purpose app. In terms of the average baskets and so on, it is higher than when we do grocery delivery. It is a little bit more of a weekly purchasing pattern than these daily smaller batches that we generally have.
I think that comes back to their focus on being a clear grocery app, and we are a little bit more of a convenience portion as of today. In terms of if we are profitable excluding the CPG, I cannot answer or we will not answer. I'll have to pass on this one.
The take rate, sorry, Niklas, how does the take rate compare?
I'm not sure if they're giving out that information. If we do, then I'll promise to come back on that. I'll come back on that. I think there is something in the presentation, but I'm not sure. I'll pass for now.
Okay. Thank you.
Thank you very much, Rob. Thank you everyone for dialing in. As I said, I'm super excited about this transaction. I think it's in the center of what we're building. I think this will further speed up our execution in the quick commerce, which we already do today really well. I think this will add us another significant edge and clearly position us as the go-to app for both food as well as quick commerce. I'm super excited. This is by far the best asset we have seen out there, and we have looked at a lot. We have looked at 100+ grocery players. Nothing is comparable. Therefore, I'm super excited working with the team here. It's going to be fantastic. Thank you, everyone.