"From Startup to Giant" by Delivery Hero's SVP of Global Operations

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1 Delivery Hero AG. Company Presentation. From Startup to Giant Felix Plog February 13 th 2018

Transcript of "From Startup to Giant" by Delivery Hero's SVP of Global Operations

1Delivery Hero AG. Company Presentation.

From Startup to Giant

Felix Plog

February 13th 2018

2Delivery Hero AG. Company Presentation.

About Me

3Delivery Hero AG. Company Presentation.

Page 1

Felix PlogSVP Global Operations at Delivery Hero & Co-Founder [email protected]

SummaryN/A

ExperienceSVP Global Operations at Delivery HeroMarch 2017 - Present

Co-Founder/Managing Director/COO (exit to Delivery Hero Group in 12/2016) at FoodpandaSeptember 2013 - February 2017 (3 years 6 months)

CEO & Managing Director at wallstreet:online AGJanuary 2009 - September 2013 (4 years 9 months)

Managing Director AS Financial Media at Axel Springer SEJanuary 2009 - July 2010 (1 year 7 months)

Head of Portfolio Management at Axel Springer AGMarch 2008 - December 2008 (10 months)

Senior Consultant/Project Manager at Roland Berger Strategy Consultants2002 - 2007 (6 years)

EducationTechnical University BerlinMaster, Industrial Engineering, 1995 - 2002

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CMO & CF CEO & CF COO & CF

Country ManagementIRM&ASalesFinanceLegal HR

Country ManagementOperationsLogisticsProduct/TechBI

Marketing

The Management Team

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2013

2014

2015

2016

2017

0.3 m orders 14 countries

2 brands28 m $ raised

>350 employees

2 m orders

+9 acquisitions26 countries

9 brands+80m $ raised

>850 employees

17 m orders

+11 acquisitions28 countries22 brands

+202 m $ raised>2.500 employees

28 m orders

+1 acquisition26 countries13 brands

0 m $ raised>2.300 employees

292 morders

40+ countries26 brands

>2b € tot. funding>6.000 employees

330 m $ and 21 acquisitions later

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The Building Blocks of Success

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Entrepreneurial Founders

Awesome Team

Stage 1: The Startup COO

Solve the fund-grow-exit challenge

Stage 2: The Growth COO

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Entrepreneurial Founders

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Be a Band of Brothers and Sisters

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It’s Always Day 1

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Awesome Team

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Create an Environment to Grow

• Indecision• Slow Speed of Execution• Underperformers• Micromanagement

• Transparency• Fast Conflict Resolution• Clear Ownership• Empowerment &

Management by Objectives

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Put Rock Stars in Leadership Positions

A → AB → C

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Master Your Recruiting Process

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Party, Laugh and Cry Together

Social Champion

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Stage 1: The Startup COO

Drive the development of a successful blueprint.

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Set Up a Strong Technology Development Process

Problem Statements (Business)

Discovery (Product)

Development (Tech)

QA (Product)

Success Criteria

(Business)

Gatekeeper

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Hire functional experts to build strong and scalable business processes

Sales Ops

Vendor Management

Customer Care

Logistics

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Build a Reasonably Good Service in One Market

Frontend

Business Processes

Backend

KPI Layer

• CRM• Contact Center

Solution• Closed Loop

Ticketing System• Accounting System

Core• 90% of task

volume incl. contact handling defined and supported by backend

• Functional reporting

• UX focused reporting

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Fully Capture the Customer’s UX

Satisfaction > 83%

Satisfaction < 83% and >= 69%

Color code

Satisfaction <= 69%

Platform

Website Mobile

Page Loading Time

Page layout

Personal Account Functionality

Search Functionality

Navigation

Number of steps required to order

Website Desktop

Personal account functionality

Number Of Steps required to order

Search Functionality

Page Layout

Navigation

Page Loading Time

Iphone

Personal account functionality

Search functionality

Navigation

Number of steps required to order

Location Accuracy

App loading time

Android

Navigation

Location Accuracy

Search functionality

Number of Steps required to order

App Loading Time

Personal account functionality

Ipad

App Loading time

Number of steps required to order

Location accuracy

Personal account functionality

Search functionality

Navigation

Ordering Experience

Search Restaurant list

Talabat recommendations

Search Functionality

Restaurant Logs

Information on restaurant

Customer Restaurant Review

Variety of restaurants

Number of restaurants

Delivery Charges

Special Offers

Minimum Order Value

Look through the menu

Variety of Dishes

Food Categorization

Special Offers

Customer Comments

Food Descriptions

Options for Kids

Food Images

Checkout/Payment

Ease of completing transaction

Payment options

Time to refund for canceled orders

Voucher usage

Delivery

Talabat Go

Confirmation if order is cancelled

Confirmation email for order

Delivery Riders

Communication if order is delayed

Live Tracing functionality

Delivery time was as expected

Talabat

Delivery Time was as expected

Delivery Courier

Food Packaging

Tracking Functionality

Communication if order is delayed

Communication if order is cancelled

Confirmation email for order

Food Enjoyment

Food taste

Temperature of food

Order Accuracy

Value for money

Portion Size

Contact Experience

Call Center

Understanding your needs

Overall service provided

Quality of Explanation

The time needed to resolve your issue

Solution offered

Professionalism of Agent

Language Capabilities of agent

Waiting time to reach agent

Chat

Understanding your needs

Quality of explanation

Overall service provided

Resolution offered

The time needed to resolve your issue

Waiting time to reach agent

Social Media

Overall Service provided

Understanding your Needs

Waiting time to reach agent

Resolution Offered

The time need to resolve your issues

Quality of Explanation

Professionalism of agent

Email

Professionalism of agent

Understanding your needs

Overall service provided

Quality of Explanation

Response time

Resolution offered

Time needed to resolve your issues

INTERNAL: REORDER RATE EXTERNAL: NPS DRIVER TREE

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Stage 2: The Growth COO

Scale.

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Margin

Increase Commission

Reduce Manual

Handling

Reduce Logistics

Costs

Be in Control of Your P&L Before You Scale

Orders

Improve Customer CohortsIncrease

Frequency

Marketing

Drive Growth

Improve CACs

PC2 PC3

FixedCosts

Build Local Teams

Frontload Investments

to Start Operations

Don’t bullshit yourselves!

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Adjust the Operating Model Continuously

Function Start Step 1 Step 2

Tech Central Central Central

Marketing - Online Central Central Central

Marketing - Offline Central Local Regional

Sales Central Local Local

Contact Center Central Local Regional

Restaurant Ops Central Local Local

Logistics Central Local Regional

Finance Central Local Regional

Strong central supervision to force standards

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Empower the Organization to Scale

COUNTRIES FUNCTIONS

MANAGEMENT

TECH

OKRs & Annual Goal Setting

prioritizes

blueprint

provide services&

monitor

set targets set targets

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Finally: Who Will Pay for All of This?

Raise/Keep Sufficient

Funds

Grow the Business

Maximize Exit

• Dedicate one senior manager to fundraising

• Acquire funding opportunistically

• Conserve cash as a tactical reserve

• Tech (BI/Product/IT) should be core investment

• Steady growth better than peaks

• Never lose growth momentum

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Important Notice

• ALL FINANCIAL FIGURES INCLUDED IN THE FOLLOWING PRESENTATION ARE BASED ON IFRS, UNLESS NOTED OTHERWISE. THE 2014, 2015 AND 2016 DELIVERY HEROFINANCIAL INFORMATION AND THE 2015 AND 2016 FOODPANDA FINANCIAL INFORMATION IS AUDITED (UNLESS OTHERWISE INDICATED).

• For the purposes of this notice, “presentation” means this document, its contents or any part of it. This presentation does not, and is not intended to, constitute or form part of, and shouldnot be construed as, an offer to sell, or a solicitation of an offer to purchase, subscribe for or otherwise acquire, any securities of the Company, nor shall it or any part of it form the basis ofor be relied upon in connection with or act as any inducement to enter into any contract or commitment or investment decision whatsoever.

• This presentation is neither an advertisement nor a prospectus and should not be relied upon in making any investment decision to purchase, subscribe for or otherwise acquire anysecurities. The information and opinions contained in this presentation are provided as at the date of this presentation, are subject to change without notice and do not purport to contain allinformation that may be required to evaluate the Company. No reliance may or should be placed for any purpose whatsoever on the information contained in this presentation, or any otherinformation discussed verbally, or on its completeness, accuracy or fairness.

• The information in this presentation is of preliminary and abbreviated nature and may be subject to updating, revision and amendment, and such information may change materially. Neitherthe Company nor any of its directors, officers, employees, agents or affiliates undertakes or is under any duty to update this presentation or to correct any inaccuracies in any suchinformation which may become apparent or to provide any additional information.

• This presentation is not an offer of securities for sale in the United States. The securities of the Company are not and will not be registered pursuant to the provisions of the US Securities Actof 1933, as amended (the “Securities Act”) or with the securities regulators of the individual states of the United States. The securities may not be offered, sold or delivered, directly orindirectly, in or into the United States except pursuant to an exemption from the registration and reporting requirements of the United States securities laws and in compliance with all otherapplicable United States legal regulations. The Company does not intend to register its securities under the Securities Act or to conduct a public offering of securities in the United States.

• Sales in the United Kingdom are also subject to restrictions. The securities are only available in the United Kingdom to, and any invitation, offer or agreement to subscribe, purchase orotherwise acquire such securities in the United Kingdom will be engaged in only with, such relevant persons to whom it may lawfully be communicated (“Relevant Persons”). Any person inthe United Kingdom who is not a Relevant Person should not act or rely on this presentation or any of its contents.

• Certain information (including industry, market and competitive position data) in this presentation is based on the Company’s own internal research and management estimates. In addition,certain data points in this presentation are selective and may not necessarily be representative for the Delivery Hero Group. Such research, estimates and data points have been made ingood faith and represent the current beliefs of members of management. The Company and those management members believe that such research, estimates and data points are foundedon reasonable grounds. However, by their nature, research and estimates as well as the data points may not be correct or complete, and their underlying methodology and assumptions,have not been verified by any independent source for accuracy or completeness. Accordingly, no representation or warranty, express or implied, is given that such research, estimates ordata points are correct or complete.

• The presentation and discussion contain forward looking statements, other estimates, opinions and projections with respect to anticipated future performance of the Company (“Forward-looking Statements”). These Forward-looking Statements can be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,”“intends,”, “aims”, “plans”, “predicts”, “may,” “will” or “should” or, in each case, their negative, or other variations or comparable terminology. These Forward-looking Statements include allmatters that are not historical facts. They appear in a number of places throughout this presentation and include statements regarding the Company’s intentions, beliefs or currentexpectations concerning, among other things, the Company’s prospects, growth, strategies, the industry in which it operates and potential or ongoing acquisitions. By their nature, Forward-looking Statements involve significant risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-lookingStatements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Similarly, pastperformance should not be taken as an indication of future results, and no representation or warranty, express or implied, is made regarding future performance. The development of theCompany’s prospects, growth, strategies, the industry in which it operates, and the effect of acquisitions on the Company may differ materially from those made in or suggested by theForward-looking Statements contained in this presentation or past performance. In addition, even if the development of the Company’s prospects, growth, strategies and the industry inwhich it operates are consistent with the Forward-looking Statements contained in this presentation or past performance, those developments may not be indicative of the Company’sresults, liquidity or financial position or of results or developments in subsequent periods not covered by this presentation. Any Forward-looking Statements only speak as at the date of thispresentation is provided to the recipient and it is up to the recipient to make its own assessment of the validity of any Forward-looking Statements and assumptions. No liability whatsoeveris accepted by the Company in respect of the achievement of such Forward-looking Statements and assumptions.