Welcome back to the Wolf of Harcourt Street Newsletter.
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With all that being said, let’s dive into today’s edition!
Todays Agenda
InPost Launches Rewards Program & OnTurtle Partnership
Sea Limited First Fulfilment Centre in Brazil & Temu Ban
NIO September 2024 Delivery Update
Airbnb Bookings in Thailand Surge 30%
Nubank Nupay Integration on Despegar Travel Platform & Crypto Fee Reduction
Evolution Atlantic Lottery Partnership in Canada & First Czech Studio
1. InPost (INPST)
Launch of Loyalty Rewards Program
InPost has introduced a new loyalty program called InCoins, integrated into its InPost mobile app. The program allows users to earn InCoins by completing various tasks related to sending and receiving parcels, as well as using InPost services like InPost Pay and InPost Fresh.
Users can redeem InCoins for rewards, including discounts on InPost services (e.g., 50% off parcel sending or delivery time extensions) and third-party products from brands such as Answear, G2A, and Storytel. Temporary tasks, offering additional points but with usage restrictions, will be made available periodically.
Source: InPost
My Perspective: By gamifying the delivery process, InPost is adopting a strategy similar to how Nubank gamified its banking and credit platforms. This approach makes everyday activities more engaging and enjoyable, boosting customer satisfaction, enhancing engagement, and ultimately driving greater adoption of its services.
OnTurtle Partnership
InPost has partnered with OnTurtle to install parcel lockers at their service stations in La Jonquera and Mercabarna, two strategic locations for goods mobility. InPost has recently expanded its network to over 11,000 collection points across Spain and Portugal, with 9,000 of these locations already operational in Spain.
Source: OnTurtle
My Perspective: OnTurtle operates a network of over 1,700 service stations across 10 European countries. This partnership could be the start of a significant expansion for InPost, especially given OnTurtle’s pan-European presence. Watch this space.
2. Sea Limited (SE)
Shopee Opens First Fulfilment Centre in Brazil
Shopee has opened its first Fulfilment Centre in São Paulo, Brazil, to improve logistics and enhance the shopping experience on its platform. The new centre will handle storage, packaging, and shipping for selected Brazilian sellers, focusing on electronics, home appliances, and consumer lifestyle products. This initiative aims to simplify operations for sellers, enabling them to concentrate on business growth, while offering consumers faster and more standardised delivery times.
This facility is part of Shopee's broader logistics strategy in Brazil, which includes 11 distribution centres and over 150 logistics hubs across various states. The company utilizes both first-mile and last-mile logistics services and collaborates with a fleet of more than 20,000 partner drivers and over 2,000 Shopee Agency points nationwide. This expansion is expected to boost efficiency, support local entrepreneurs, and increase sales for sellers on the platform.
Source: Bnamericas
My Perspective: Shopee is making significant progress in Brazil, further enhancing the competitiveness of its service offering. As I mentioned last week, Shopee already boasts the lowest churn rate across all of Latin America.
Indonesia Bans Temu
Indonesia will maintain its ban on the e-commerce platform Temu due to concerns that it could disrupt the country’s micro, small, and medium enterprises (MSMEs). Temu is owned by PDD Holdings, the same company that operates Pinduoduo. Indonesian authorities have been closely monitoring Temu's activities and have repeatedly rejected its attempts to enter the local market.
The key reasons for the ban include:
Violation of Trade Regulations: Temu’s business model, which sells products directly from factories to consumers, conflicts with Indonesia’s requirement for an intermediary or distributor.
Economic and Social Concerns: Indonesia’s Minister of Communications and Informatics, Budi Arie Setiadi, stated that Temu could harm the economy and MSMEs, emphasizing the need for a digital space that benefits society.
Previous Rejections: Temu has made multiple attempts to register in Indonesia but has been denied due to regulatory issues and conflicting trademarks.
Source: Channel News Asia
My Perspective: Indonesia previously banned TikTok Shop in 2022 to protect smaller merchants. However, TikTok re-entered the market by acquiring a stake in the Indonesian e-commerce company Tokopedia. This highlights the government’s protective stance towards local businesses and the strict regulatory environment for foreign platforms. The market opportunity is essentially being handed to Shopee and Sea Limited.
3. NIO (NIO)
September 2024 Delivery Update
NIO delivered 21,181 vehicles in September 2024, a 35% increase compared to September 2023. This resulted in Q3 2024 deliveries of 61,885 vehicles, a 12% year-over-year increase and a new quarterly record. As of September 30, 2024, NIO has delivered a cumulative total of 598,875 vehicles.
Source: NIO
My Perspective: This was another strong performance from NIO, with deliveries landing within the management's guidance range of 51,000 to 63,000 units provided last month as part of the Q2 earnings results.
4. Airbnb (ABNB)
Bookings in Thailand Surge 30%
In the first half of 2024, Airbnb bookings in Thailand surged by over 30% compared to H1 2023, driven by strong growth in group travel (up 40%) and long-term stays (up 20%). Key factors behind this growth include improved connectivity through expanded flight options and streamlined visa policies introduced by the Thai government. Thailand’s appeal for long-term visitors is supported by the introduction of the Destination Thailand Visa, targeting remote workers and digital nomads.
Source: Travel Daily News
My Perspective: Remote workers are more likely to choose Airbnb over hotels, and the company has collaborated with the Tourism Authority of Thailand to promote long-term stays through its “Live and Work in Thailand” initiative. As Thailand’s tourism industry gears up for the high season in Q4, it is well-positioned to maintain this momentum, with Asia being a key growth market for Airbnb given its relatively low penetration compared to other regions.
5. Nubank (NU)
NuPay Integration on Despegar Travel Platform
The partnership between Despegar and Nubank integrates Nubank's payment solution, NuPay, into Despegar's travel platform, bringing mutual strategic benefits:
Expanded Market Reach for Despegar: Despegar can now access Nubank's 95.5 million Brazilian customers, significantly broadening its target market in Brazil.
Enhanced Purchasing Power for Nubank Customers: Nubank users can access Despegar’s travel services with increased spending limits and multiple payment options, improving their purchasing experience.
Improved Payment Process: The integration of NuPay creates a more streamlined payment process, which is expected to boost Despegar's conversion rates.
Source: Business Wire
My Perspective: This collaboration allows both companies to leverage their strengths—Nubank's large user base and Despegar’s extensive travel offerings—creating opportunities for enhanced value and a better overall user experience. It’s a win-win for both parties.
Cryptocurrency Fee Reduction
Nubank has introduced a new fee structure for its cryptocurrency trading platform, Nubank Cripto, which significantly lowers transaction costs for users. The new model reduces the transaction fee to as low as 0.6% per transaction—a 62.5% reduction compared to the 1.6% average fee a year ago, and 25% lower than the 0.8% average fee from March to September 2024.
This fee reduction is a result of operational efficiency improvements throughout 2024, enabling Nubank to pass on cost savings to customers, particularly benefiting high-volume traders. Nubank has also formed partnerships, such as with Talos, to enhance the Nubank Cripto ecosystem. These partnerships enable features like on-chain transfers and better transaction routing, which further optimize costs for users.
Source: Nubank
My Perspective: Nubank emphasizes transparency and sustainability, ensuring that the reduced fees cover operational costs while maintaining a secure, compliant, and user-friendly platform. While cryptocurrency is not a material part of my overall thesis, this is yet another example of Nubank’s commitment to providing competitive, transparent, and accessible financial services.
6. Evolution (EVO)
Partnership with Atlantic Lottery in Canada
Evolution has formed a partnership with the Atlantic Lottery, making its games accessible to players in three Canadian provinces: New Brunswick, Newfoundland & Labrador, and Nova Scotia. Through this collaboration, players in these regions can now access games from Evolution and its subsidiaries via the Atlantic Lottery's online casino platform.
This agreement positions Evolution as a partner for all regulated provincial lotteries in Canada, complementing its previous deals with the British Columbia Lottery Corporation (BCLC), Alberta Gaming, Liquor and Cannabis (AGLC), Ontario Lottery and Gaming Corporation (OLG), and Loto-Québec. This expanded presence highlights Evolution's growing influence in the Canadian market, which continues to show strong growth potential.
In related news, Evolution also launched its live game show Crazy Time in Michigan, making it available in five U.S. states.
Source: Gambling Insider
My Perspective: This partnership marks a significant milestone for Evolution, completing its product rollout across all regulated provinces in Canada and further advancing its growth in the North American market. With a combined market size of approximately 2.5 million people, Atlantic Lottery represents an important opportunity in the Canadian gaming landscape.
First Live Studio in Czech Republic
Evolution has launched its first live casino studio in the Czech Republic, featuring native Czech-speaking dealers. The new studio, located in the Kajot Intacto land-based casino in Prague, initially offers live roulette and Infinite Blackjack, with plans to introduce more table games such as blackjack, poker, roulette, and baccarat in the coming weeks.
The studio is part of Evolution’s broader strategy to expand in regulated markets and builds on the company's existing presence in the Czech Republic through its online slots portfolio. Gionata La Torre, Evolution's CEO for Europe, emphasized that this launch offers a significant growth opportunity for Czech operators and enhances the player experience through native-speaking dealers, fostering stronger player engagement and loyalty.
Source: Evolution
My Perspective: Given the current uncertainty in Georgia with ongoing workers' strikes, it is encouraging to see Evolution diversify its studio operations into other Eastern European countries. This was a very positive week for Evolution, but you wouldn’t know it by looking at the share price. As I always say, follow the business, not the stock.
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Happy investing
Wolf of Harcourt Street
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Twitter: @wolfofharcourt
Email: wolfofharcourtstreet@gmail.com