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Not sure you are doing the analysis properly. It look like eBev...

  1. 853 Posts.
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    Not sure you are doing the analysis properly. It look like eBev is free for venues to use. Some of the info others have posted indicated eBev is even bigger than I thought. An old article mentioned they had previously generated $21m in GMV for over 175,000 cases. The most recent eBev article indicated $120m GMV for the last year (with lots of hospitality in lockdown) which would be about 1m cases last year (assuming same average). They are probably run rating well above that level.

    DW8 have less than 1,000 products (and it sounds like a lot of those aren't even available). eBev have over 65,000 products. Given the differences in volumes and the models run by both, I think you will find that the pricing to businesses of both will be either the same, or eBev will be cheaper. DW8 is currently subsidising people and effectively "paying" them to order, but even with that it would seem the volumes are low from the order/invoice count Tommy (I think) has been posting.

    I can't see a scenario where people move away from eBev and across to DW8 for ordering. DW8 doesn't have anywhere near enough product supply for businesses. For a B2B marketplace you basically need to have everything that people want in one place. It would defeat the point of using DW8 if you also have to use other systems.

    Also, given DW8's stated strategy of replacing distributors because of the fees they charge, I have come to the impression that it is probably impossible for DW8 to build enough supply to get real marketplace penetration. With the Parton acquisition, DW8 have gone further down the logistics path, which I think actually makes it harder to build the full marketplace (it will increase the short term supply of products).

    DW8 is very well suited to solving the logistics problem, but potentially it is going to become more of a consumer play. Dean's past experience is with retailing wine to consumers, not businesses. They are very different things. He should play to his strengths. I'm not yet convinced the B2B Marketplace is the right play for DW8 and I think it is being priced for that.

    I'm going to do some more research with a few friends with venues and someone I know starting to sell a new wine brand who is also talking to logistics providers, distributors, platforms and venues.

    Cheers
    Marv


 
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