Allegro: Logistics Expansion & Inpost Reliance
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Have they managed to achieve that? Because in their presentations, Allegro has mentioned that InPost is currently the most expensive provider they have.
That's the issue. If you don't have leverage to negotiate with your partner, they can increase prices significantly year over year. Now, Allegro has found leverage, and you can see the tension between them. If InPost is the most expensive now, I believe they will work hard to not remain the most expensive for Allegro and to maintain their relationship. Let me add one more comment. I mentioned that InPost's costs are low, so why are they placing such a big margin on Allegro?
This is a snippet of the transcript.to get full access.
Have they managed to achieve that? Because in their presentations, Allegro has mentioned that InPost is currently the most expensive provider they have.
InPost is expanding in many European markets, like the UK and Spain. This expansion is their priority, and it requires significant investment. They can only earn this money in Poland because, outside of these markets, they are not yet super profitable. That's why they need to generate revenue in Poland to fund their expansion into other countries. They are doing quite well with this expansion, but they need money to invest, which they currently find only in Poland.
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So most of the delivery is done by third parties, not by Allegro?
No, most deliveries are done by Allegro. I don't remember the exact numbers, but there are a few sorting centers and quite a lot of depots in Poland. Allegro One is not a small provider at the moment. They are investing heavily, with a new sorting center in the middle of Poland that opened one or two months ago. They are growing quickly. The majority of deliveries are handled in-house, with Allegro drivers and solutions. Only in some regions that are less important and not yet worth the investment do they use third-party providers. In important areas, like big cities and their surroundings, it's purely Allegro.
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