"EDITION 75"

Published: 6/5/2020

Yet another week comes to a close, and yet another PE fund invests in Jio. This time around we have KKR investing $1.5B for a 2.32% in Jio Platforms. I also came across this great long read on ByteDance, which I plan to read over the weekend, but it's written by Turner (GP @ Gelt) and he has been tweeting about ByteDance and TikTok for a while so he def knows his stuff- https://turner.substack.com/p/the-rise-of-tiktok-and-understanding Coming to the days' news, we finally have alcohol delivery in India (okay only Jharkhand) and we have a new player in the food delivery business.

  • https://bit.ly/3gfdAvA: Amazon launches food delivery biz
  • ➡️ In a move that has been predicted for several months now, Amazon has finally launched its food delivery service. The company is starting by focussing on certain localities in Bangalore and presumably do a wider roll out across the country. ➡️ It's still too early to tell if this will remain just a fad for Amazon or if they are able to gain some market share from Zomato & Swiggy. It's certainly very interesting that Amazon has chosen now to launch when food delivery is down 80% in the country. ➡️ Amazon has also not had great experience with food delivery in the past, shutting down both their US food delivery service as well as the UK and later invested in the European food delivery service Deliveroo. ➡️ I'm personally not convinced that Amazon will be able to displace Swiggy or Zomato, sure they probably have the capital but I think they're way too late at this point. On the other hand, Amazon also entered the eCommerce space in India and has displaced Flipkart as the leader now so I would never count them out. 2. https://bit.ly/2WT0xIX: Alcohol delivery begins ➡️ In a very welcomed move, Swiggy and Zomato have begun delivering alcohol through their apps in Jharkhand.

    ➡️ Swiggy also has a pretty nifty flow, which will also probably help it expand the service to other states when it gets the regulatory approval to do so. Users just have to upload a photo of their government ID & a selfie to be approved to start delivering alcohol. ➡️ The order will also come with an OTP that the user will have to provide at the time of delivery to ensure the correct person is receiving the alcohol. This is a little more streamlined than the process American delivery services have: anyone can order alcohol but at the time of delivery a user only receives the alcohol after the delivery person scans their ID (this certainly has higher error rates because underage people can place those orders). ➡️ Swiggy has also built in limits on how much alcohol an individual can order, which would be configurable by the state. Zomato is also planning on rolling out its alcohol delivery service in Jharkhand later next week, and both companies are also in talks with other states. ➡️ I think states might be open to making their regulations more lax to support online alcohol services because their revenues have certainly been hit, and this would give a chance to recoup at least some portion of it.

    Feedback & ❤️ always appreciated

    More tomorrow :) BONUS (Tweet of the day): https://twitter.com/NilChristopher/status/1263391879657254912