business news in context, analysis with attitude

Bloomberg reports that fast grocery delivery company Jokr "will roll out a media platform to sell targeted advertising, in a bid to boost sales and get closer to profitability at a time when food delivery companies are under pressure from investors to stem losses … The New York-based company will use its trove of customer purchase data to attract brands, whose enthusiasm for advertising on platforms like Meta Platforms Inc.’s Facebook is waning."

The platform, according to the story, will "allow advertisers to reach consumers both on the company’s mobile application and off-line through placements such as stickers on couriers’ bags or in deliveries."

Jokr's value proposition is built on micro-hubs, which TechCrunch describes as "really just various storefronts on side streets in denser areas. The company uses data to forecast what customers will want, when, and where, to strategically organize these micro-fulfillment centers for speed."

TechCrunch goes on:

"For end users, there are no order minimums and no delivery fees.

"Data is the key ingredient to identify what customers need and put an emphasis not only on what they need, but also when they need it. And what point of time, which day, which week, which month, whether it’s in the morning or in the evening, and build a dynamic inventory and catalog management system that is able to rotate inventory, provide inventory and pre-forecast suggestions for customers, those type of consumer goods, and the corresponding time.

"Jokr procures the goods sold on the app directly from brands, manufacturers and wholesalers. In other words, you can think of the service as a sort of ghost kitchen for groceries and everyday items."

KC's View:

So, I look at Jokr's business model - delivery in 15 minutes or less, with no order minimums, from all these microhubs - and I wonder to myself why it took them so long to come to the conclusion that they were going to need ad support to reach profitability.

Of course data was going to be a key ingredient if it is going to have any sort of success - both in terms of merchandise stocked and attracting targeted ad support.

Even with targeted ads, I continue to question the viability of a 15-minute delivery window.  Disappointed customers seem to be a likely byproduct of this promise, which won't be good for Jokr, and wont' be good for its advertisers.

In the end, this move sounds to me like Jokr is looking for a lifeline.