{"id":10293,"date":"2023-09-03T00:42:17","date_gmt":"2023-09-03T00:42:17","guid":{"rendered":"https:\/\/dmsretail.com\/RetailNews\/jason-scot-show-episode-309-instacart-ipo-filing\/"},"modified":"2023-09-03T00:42:17","modified_gmt":"2023-09-03T00:42:17","slug":"jason-scot-show-episode-309-instacart-ipo-filing","status":"publish","type":"post","link":"https:\/\/dmsretail.com\/RetailNews\/jason-scot-show-episode-309-instacart-ipo-filing\/","title":{"rendered":"Jason &#038; Scot Show Episode 309 Instacart IPO Filing"},"content":{"rendered":"<p> <p><a href=\"https:\/\/dmsretail.com\/online-workshops-list\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-496\" src=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\" alt=\"Retail Online Training\" width=\"729\" height=\"91\" srcset=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png 729w, https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90-300x37.png 300w\" sizes=\"auto, (max-width: 729px) 100vw, 729px\" \/><\/a><\/p><br \/>\n<\/p>\n<div>\n<p>A weekly podcast with the latest e-commerce news and events. Episode 309 is a complete breakdown of Instacart\u2019s S-1 filing.<\/p>\n<p> <span id=\"more-31298\"\/><\/p>\n<p><meta charset=\"utf-8\"\/><strong>Subscribe<\/strong>:<\/p>\n<figure><iframe loading=\"lazy\" style=\"border: none;\" src=\"http:\/\/html5-player.libsyn.com\/embed\/episode\/id\/27889113\/height\/360\/width\/640\/theme\/standard-mini\/autoplay\/no\/autonext\/no\/thumbnail\/yes\/preload\/no\/no_addthis\/no\/direction\/backward\/no-cache\/true\/\" width=\"640\" height=\"360\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\"><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><\/iframe><\/figure>\n<p><strong>Warning<\/strong>: Given the complexity and breadth of topics, this is a longer than usual episode with a runtime of 90 minutes (if we had more time, we\u2019d produce a shorter podcast).<\/p>\n<p>Update: In this episode Jason mentioned that he didn\u2019t think Instacart accepted SNAP payments. It turns out that Instacart did start accepting SNAP earlier this month.<\/p>\n<p>On Friday, August 25th 2023 Instacart filled its S-1 IPO form with the SEC, in advance of its intention to make an initial public offering. The complete filing is almost 400 pages. In this episode we summarize all the key points, including a number of surprises, in the filing.<\/p>\n<p>If you want to follow along with the actual S-1, you can download it here. Scot suggests you focus on pages 101-124.<\/p>\n<p>Topics Covered:<\/p>\n<ol>\n<li><strong>Cover Page and Entry Level Items<\/strong><\/li>\n<li><strong>Overall Growth Trends<\/strong> 25:50<\/li>\n<li><strong>Unit economics<\/strong> 42:90<\/li>\n<li><strong>Cohort Analysis<\/strong> 48:10<\/li>\n<li><strong>Instacart Ads<\/strong> 56:30<\/li>\n<li>The Big Risk\/Concern 1:00:11<\/li>\n<li><strong>Other observations<\/strong> (Instacart+, Carrot Services, Generative AI) 1:22:50<\/li>\n<\/ol>\n<p>Other episodes mentioned: Episode 255 \u2013 Instacart Chief Revenue Officer Seth Dallaire and Episode 224 Customer Cohort Analysis and CLV with Dr. Daniel McCarthy.<\/p>\n<p><strong>Don\u2019t forget to like our\u00a0facebook page, and if you enjoyed this episode please write us a review on itunes.<\/strong><\/p>\n<p>Episode 309 of the Jason &amp; Scot show was recorded on Tuesday, August 29, 2023.<\/p>\n<h2 id=\"chapterT\" class=\"chapter\">Transcript<\/h2>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[0:23]<\/small>\u00a0<span title=\"0:23 - 0:38\" data-start=\"00:00:23.135\" data-end=\"00:00:37.569\" data-spk=\"0\" data-label=\"Jason\">Welcome to the Jason and Scot show this is episode 309 being recorded on Tuesday August 29th I\u2019m your host Jason retailgeek Goldberg and as usual I\u2019m here with your co-host Scot Wingo.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[0:38]<\/small>\u00a0<span title=\"0:38 - 0:42\" data-start=\"00:00:38.308\" data-end=\"00:00:42.160\" data-spk=\"1\" data-label=\"Scot\">Hey Jason and welcome back Jason and Scot show listeners.<\/span><br \/><span title=\"0:43 - 0:56\" data-start=\"00:00:42.563\" data-end=\"00:00:56.353\" data-spk=\"1\" data-label=\"Scot\">We are going to jump into the talk tonight because one of our most popular shows as you know Jason the format is a deep dive and we have got a great Deep dive for you guys this episode.<\/span><br \/><span title=\"0:57 - 1:10\" data-start=\"00:00:57.345\" data-end=\"00:01:10.024\" data-spk=\"1\" data-label=\"Scot\">Last Friday August 25th there was a very big event not only in our favorite world\u2019s grocery which is Jason\u2019s favorite world and my favorite world of e-commerce and then Jason\u2019s favorite world of.<\/span><br \/><span title=\"1:10 - 1:18\" data-start=\"00:01:10.108\" data-end=\"00:01:18.298\" data-spk=\"1\" data-label=\"Scot\">But also in my favorite world of startups so this is this is a pretty big event and we wanted to dedicate a complete episode to it.<\/span><br \/><span title=\"1:19 - 1:23\" data-start=\"00:01:18.563\" data-end=\"00:01:22.793\" data-spk=\"1\" data-label=\"Scot\">I mean it is the filing of the S14 instacart.<\/span><\/p>\n<p><small>[1:24]<\/small>\u00a0<span title=\"1:24 - 1:36\" data-start=\"00:01:23.509\" data-end=\"00:01:35.983\" data-spk=\"1\" data-label=\"Scot\">And just to set it up the you know in my world of start-up land it has been very hard to get an IPO done so there\u2019s been a couple post coated and like late 2020.<\/span><br \/><span title=\"1:36 - 1:43\" data-start=\"00:01:36.236\" data-end=\"00:01:43.146\" data-spk=\"1\" data-label=\"Scot\">And then summon 21 and then there\u2019s been a dry spell there\u2019s been something called a dese back so you have this spec which is this.<\/span><\/p>\n<p><small>[1:44]<\/small>\u00a0<span title=\"1:44 - 1:50\" data-start=\"00:01:43.843\" data-end=\"00:01:50.459\" data-spk=\"1\" data-label=\"Scot\">Special-purpose acquisition thing and you can kind of go public through this kind of complicated convoluted thing.<\/span><br \/><span title=\"1:51 - 1:59\" data-start=\"00:01:50.898\" data-end=\"00:01:58.902\" data-spk=\"1\" data-label=\"Scot\">Tends not to go very well so there\u2019s been some of that like in My World Mobility there is one called get around and there\u2019s been a couple others and those typically have not.<\/span><br \/><span title=\"1:59 - 2:04\" data-start=\"00:01:59.130\" data-end=\"00:02:03.871\" data-spk=\"1\" data-label=\"Scot\">Gone so well they\u2019re down like 95% bird the scooter company did this as well.<\/span><br \/><span title=\"2:04 - 2:11\" data-start=\"00:02:04.298\" data-end=\"00:02:10.727\" data-spk=\"1\" data-label=\"Scot\">So it\u2019s been a very dry IPO market for startups and thus of interior backed investors.<\/span><br \/><span title=\"2:11 - 2:20\" data-start=\"00:02:11.209\" data-end=\"00:02:20.108\" data-spk=\"1\" data-label=\"Scot\">So there has been a lot of anticipation around when is that a PO when they\u2019re going to open who\u2019s going to be brave enough to kind of stick their foot out there first.<\/span><br \/><span title=\"2:20 - 2:34\" data-start=\"00:02:20.336\" data-end=\"00:02:34.205\" data-spk=\"1\" data-label=\"Scot\">And you know a lot of people have been rooming that instacart would be out there there\u2019s a couple other companies in this kind of unicorn Stratosphere stripe is another one that we cover a lot on the show from the payments world.<\/span><br \/><span title=\"2:34 - 2:44\" data-start=\"00:02:34.434\" data-end=\"00:02:43.711\" data-spk=\"1\" data-label=\"Scot\">There\u2019s also the others you can think of Jason there\u2019s this one.<\/span><br \/><span title=\"2:44 - 2:52\" data-start=\"00:02:43.868\" data-end=\"00:02:51.583\" data-spk=\"1\" data-label=\"Scot\">There\u2019s a software one that is just doing really well in AI that\u2019s been mentioned a lot not not open AI it\u2019ll come to me in a minute.<\/span><br \/><span title=\"2:52 - 2:56\" data-start=\"00:02:51.734\" data-end=\"00:02:55.910\" data-spk=\"1\" data-label=\"Scot\">So you know so this is kind of the real.<\/span><br \/><span title=\"2:56 - 3:09\" data-start=\"00:02:56.319\" data-end=\"00:03:09.021\" data-spk=\"1\" data-label=\"Scot\">Bang the Big Bang of here\u2019s a company that is being brave enough they\u2019re gonna go first and we\u2019re going to see what happens so it\u2019s going to be really interesting and we thought because it hits this Venn diagram of all of our favorite things that we would spend a fair amount of time on.<\/span><\/p>\n<p><small>[3:10]<\/small>\u00a0<span title=\"3:10 - 3:22\" data-start=\"00:03:09.713\" data-end=\"00:03:22.073\" data-spk=\"1\" data-label=\"Scot\">So first of all this is a 400 page document so our value add to the listeners is we have distilled it down into what we think are the most interesting little tidbits\u00a0<\/span><span title=\"3:22 - 3:29\" data-start=\"00:03:21.971\" data-end=\"00:03:28.936\" data-spk=\"1\" data-label=\"Scot\">and some of the things we\u2019ve learned from instacart it is nice because there\u2019s been a lot of rumors about how instacart\u00a0<\/span><span title=\"3:29 - 3:41\" data-start=\"00:03:28.828\" data-end=\"00:03:40.593\" data-spk=\"1\" data-label=\"Scot\">Economics work and Jason has been tracking their ad piece which is you know cpgs have really seen some really nice results from that so we know that\u2019s been active\u00a0<\/span><span title=\"3:41 - 3:47\" data-start=\"00:03:40.503\" data-end=\"00:03:46.873\" data-spk=\"1\" data-label=\"Scot\">and the areas we picked apart we thought we would cover tonight is I wanted to kind of give you a\u00a0<\/span><span title=\"3:47 - 3:59\" data-start=\"00:03:46.849\" data-end=\"00:03:58.656\" data-spk=\"1\" data-label=\"Scot\">quick and dirty Scott\u2019s guide to reading an s-1 and we\u2019ll start at the cover page that\u2019s there\u2019s actually a lot that happens on the cover page so I want to spend a little time there and kind of give you a little\u00a0<\/span><span title=\"3:59 - 4:07\" data-start=\"00:03:58.651\" data-end=\"00:04:07.267\" data-spk=\"1\" data-label=\"Scot\">I haven\u2019t taken a company poet behind the scenes of what\u2019s going on on there and then we\u2019re going to talk about some of the overall growth things that just kind of help you understand.<\/span><\/p>\n<p><small>[4:07]<\/small>\u00a0<span title=\"4:07 - 4:14\" data-start=\"00:04:07.382\" data-end=\"00:04:14.490\" data-spk=\"1\" data-label=\"Scot\">How to think about instacart how they\u2019re growing and what they do and what role they play and then unit economics\u00a0<\/span><span title=\"4:14 - 4:26\" data-start=\"00:04:14.371\" data-end=\"00:04:25.823\" data-spk=\"1\" data-label=\"Scot\">one of the things that is happening more and more in these s1\u2019s is they\u2019re doing a more comprehensive cohort analysis and this is basically showing hey if if I car to a customer\u00a0<\/span><span title=\"4:26 - 4:37\" data-start=\"00:04:25.800\" data-end=\"00:04:37.325\" data-spk=\"1\" data-label=\"Scot\">in a certain period how are they doing now and what are those Trends so that this this had a lot going on there of course we want to talk about the ad business and then little bit of a catch-all for other observations,\u00a0<\/span><span title=\"4:37 - 4:42\" data-start=\"00:04:37.331\" data-end=\"00:04:41.633\" data-spk=\"1\" data-label=\"Scot\">Jason anything I missed before we jump into the cover page.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[4:42]<\/small>\u00a0<span title=\"4:42 - 4:56\" data-start=\"00:04:41.604\" data-end=\"00:04:56.295\" data-spk=\"0\" data-label=\"Jason\">No I think you mostly covered it just one slight correction it\u2019s four of our five favorite things for those listeners that tuned in to hear us talk about Ahsoka we\u2019re going to do that on an upcoming episode so that Star Wars would be our fifth.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[4:56]<\/small>\u00a0<span title=\"4:56 - 5:06\" data-start=\"00:04:56.067\" data-end=\"00:05:06.174\" data-spk=\"1\" data-label=\"Scot\">Yes sadly there was no Star Wars in this one so it\u2019s that one little part of the over the Venn diagram was left is its own little circle out in space.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[5:06]<\/small>\u00a0<span title=\"5:06 - 5:09\" data-start=\"00:05:05.874\" data-end=\"00:05:09.323\" data-spk=\"0\" data-label=\"Jason\">That\u2019s a we call that a teaser for a future episode.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[5:09]<\/small>\u00a0<span title=\"5:09 - 5:18\" data-start=\"00:05:09.257\" data-end=\"00:05:17.940\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah we\u2019re we\u2019re Pros were 300-plus episodes into this thing and this is the kind of you know Pro level that we deliver on the pod.<\/span><br \/><span title=\"5:20 - 5:29\" data-start=\"00:05:19.551\" data-end=\"00:05:29.123\" data-spk=\"1\" data-label=\"Scot\">So you guys missed it Jason forgot to plug in his microphone earlier so that\u2019s a yeah we\u2019re still still learning every day,\u00a0<\/span><span title=\"5:29 - 5:35\" data-start=\"00:05:29.165\" data-end=\"00:05:34.789\" data-spk=\"1\" data-label=\"Scot\">so when you open an s-1 the first thing you see is the cover page and it\u00a0<\/span><span title=\"5:35 - 5:49\" data-start=\"00:05:34.748\" data-end=\"00:05:49.253\" data-spk=\"1\" data-label=\"Scot\">you know a lot of people just Breeze by it because it\u2019s a cover page but it has a lot of really valuable information so first of all the first thing that I noticed is I was searching for this on Edgar and I kept typing in instacart and it wouldn\u2019t show up and I was like\u00a0<\/span><span title=\"5:49 - 5:52\" data-start=\"00:05:49.122\" data-end=\"00:05:52.450\" data-spk=\"1\" data-label=\"Scot\">WTH I know this s1\u2019s out there why can I not find it\u00a0<\/span><span title=\"5:52 - 6:07\" data-start=\"00:05:52.330\" data-end=\"00:06:06.968\" data-spk=\"1\" data-label=\"Scot\">and then I saw an article and it said oh the company\u2019s real name is maple bear so that\u2019s the first thing you see on the cover is the company we all refer to as instacart its actual Corporation name is maple bear and it does business as instacart so I thought\u00a0<\/span><span title=\"6:07 - 6:19\" data-start=\"00:06:06.836\" data-end=\"00:06:18.878\" data-spk=\"1\" data-label=\"Scot\">I did not know that prior so that was the first thing I learned right there on the cover so that\u2019s interesting so if you do go to the will put a link to the s-1 in the show notes but if you do Brave the Edgar SEC database yourself\u00a0<\/span><span title=\"6:19 - 6:22\" data-start=\"00:06:18.770\" data-end=\"00:06:21.871\" data-spk=\"1\" data-label=\"Scot\">throwing a little Maple bear there and not instacart.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[6:22]<\/small>\u00a0<span title=\"6:22 - 6:26\" data-start=\"00:06:22.057\" data-end=\"00:06:26.257\" data-spk=\"0\" data-label=\"Jason\">Not to be confused with Amazon\u2019s house brand Mama Bear.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[6:26]<\/small>\u00a0<span title=\"6:26 - 6:34\" data-start=\"00:06:26.047\" data-end=\"00:06:33.666\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah and I\u2019m sure there\u2019s a honey bear and brown bears there\u2019s a there\u2019s a lot of a lot of bear things going on.<\/span><br \/><span title=\"6:34 - 6:46\" data-start=\"00:06:33.949\" data-end=\"00:06:45.877\" data-spk=\"1\" data-label=\"Scot\">The other thing that I was like to see is what symbol are they using I think it\u2019s fun to kind of you know as an entrepreneur to kind of think about what symbol you\u2019re going to use that best personifies your brand\u00a0<\/span><span title=\"6:46 - 6:53\" data-start=\"00:06:45.733\" data-end=\"00:06:52.655\" data-spk=\"1\" data-label=\"Scot\">Channel Bowser we had ecom\u2019s so that was an exciting one so we captured e-commerce Shopify go.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[6:52]<\/small>\u00a0<span title=\"6:52 - 6:55\" data-start=\"00:06:52.405\" data-end=\"00:06:55.041\" data-spk=\"0\" data-label=\"Jason\">The best ticker symbol of all times by the way.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[6:55]<\/small>\u00a0<span title=\"6:55 - 6:57\" data-start=\"00:06:54.741\" data-end=\"00:06:56.964\" data-spk=\"1\" data-label=\"Scot\">Thank you thanks thanks I appreciate it.<\/span><br \/><span title=\"6:57 - 7:05\" data-start=\"00:06:57.132\" data-end=\"00:07:04.865\" data-spk=\"1\" data-label=\"Scot\">Shopify head shop and that was a good one and instacart \/ Maple bear is going with cart so I think that\u2019s a that\u2019s a\u00a0<\/span><span title=\"7:05 - 7:09\" data-start=\"00:07:04.746\" data-end=\"00:07:09.084\" data-spk=\"1\" data-label=\"Scot\">that\u2019s a pretty nice one you know it kind of there a multi grocer chart\u00a0<\/span><span title=\"7:09 - 7:19\" data-start=\"00:07:08.934\" data-end=\"00:07:19.185\" data-spk=\"1\" data-label=\"Scot\">cart and we all think about instacart I\u2019m sure they hate being called Instagram so this kind of like really punches on the cart so maybe they get away from everyone mistakenly calm Instagram.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[7:19]<\/small>\u00a0<span title=\"7:19 - 7:21\" data-start=\"00:07:18.921\" data-end=\"00:07:20.519\" data-spk=\"0\" data-label=\"Jason\">I think it\u2019s solid.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[7:20]<\/small>\u00a0<span title=\"7:20 - 7:24\" data-start=\"00:07:20.411\" data-end=\"00:07:24.431\" data-spk=\"1\" data-label=\"Scot\">Yeah A-Plus on the symbol\u00a0<\/span><span title=\"7:24 - 7:36\" data-start=\"00:07:24.353\" data-end=\"00:07:35.668\" data-spk=\"1\" data-label=\"Scot\">and then in the you\u2019ll notice that a lot of the evaluations and how many shares they\u2019re selling are blank and that\u2019s you know in this draft of this one which is the first kind of public one that they\u2019re dropping out there\u00a0<\/span><span title=\"7:35 - 7:41\" data-start=\"00:07:35.470\" data-end=\"00:07:40.842\" data-spk=\"1\" data-label=\"Scot\">they\u2019ll they\u2019ll iterate a couple more times they\u2019ll do their Roadshow and then write one that,\u00a0<\/span><span title=\"7:41 - 7:49\" data-start=\"00:07:40.890\" data-end=\"00:07:48.858\" data-spk=\"1\" data-label=\"Scot\">it prices they\u2019ll update the S12 include all that information so they\u2019ll make kind of literally a game day decision the night before\u00a0<\/span><span title=\"7:49 - 7:56\" data-start=\"00:07:48.684\" data-end=\"00:07:56.309\" data-spk=\"1\" data-label=\"Scot\">IPO of how much based on the order book how much they want to sell and at what price so that,\u00a0<\/span><span title=\"7:56 - 8:04\" data-start=\"00:07:56.334\" data-end=\"00:08:04.067\" data-spk=\"1\" data-label=\"Scot\">that\u2019s going to be blank through probably several more iterations as we go on then this is did you want to do something in.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[8:04]<\/small>\u00a0<span title=\"8:04 - 8:11\" data-start=\"00:08:04.019\" data-end=\"00:08:10.755\" data-spk=\"0\" data-label=\"Jason\">No I was just I was just thinking that they I assume they left it blank because the underwriters were out of practice.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[8:10]<\/small>\u00a0<span title=\"8:10 - 8:24\" data-start=\"00:08:10.455\" data-end=\"00:08:24.408\" data-spk=\"1\" data-label=\"Scot\">Yeah no no they they are there waiting and that\u2019s a good point because when you go public the the companies that take you public in this context they\u2019re all investment banks on Wall Street.<\/span><br \/><span title=\"8:25 - 8:36\" data-start=\"00:08:24.558\" data-end=\"00:08:36.137\" data-spk=\"1\" data-label=\"Scot\">But they they filled this role of Underwriters and basically what they\u2019re doing is they\u2019re acting as market makers they\u2019re going to cover your stock when it\u2019s public and they\u2019re also going to be basically\u00a0<\/span><span title=\"8:36 - 8:45\" data-start=\"00:08:36.042\" data-end=\"00:08:45.385\" data-spk=\"1\" data-label=\"Scot\">pounding the pavement to sell your stock to buy side by side analysts and firms on Wall Street.<\/span><br \/><span title=\"8:46 - 8:51\" data-start=\"00:08:45.518\" data-end=\"00:08:51.388\" data-spk=\"1\" data-label=\"Scot\">Which there\u2019s two buckets of there\u2019s mutual funds and hedge funds there\u2019s also retail that I guess there\u2019s three buckets,\u00a0<\/span><span title=\"8:51 - 9:04\" data-start=\"00:08:51.443\" data-end=\"00:09:04.127\" data-spk=\"1\" data-label=\"Scot\">retail would be you log into Schwab or Robin Hood and the diet of the IPO you try to buy some chairs that\u2019s retail and they all allocate a little bit of that for the IPO so they like retail to come in and get a little taste.<\/span><\/p>\n<p><small>[9:04]<\/small>\u00a0<span title=\"9:04 - 9:12\" data-start=\"00:09:04.350\" data-end=\"00:09:12.041\" data-spk=\"1\" data-label=\"Scot\">A lot of folks that if you\u2019re an accredited investor at an institution and you have a wealth manager,\u00a0<\/span><span title=\"9:12 - 9:23\" data-start=\"00:09:12.078\" data-end=\"00:09:23.122\" data-spk=\"1\" data-label=\"Scot\">sometimes you can get a little bit of access to an IPO before it prices you don\u2019t get a special price or anything but you can if you\u2019re really excited and you\u2019re a retail customer you and you\u2019re in this kind of\u00a0<\/span><span title=\"9:23 - 9:31\" data-start=\"00:09:22.972\" data-end=\"00:09:30.657\" data-spk=\"1\" data-label=\"Scot\">wealthy bucket then you can you can get some allocated shares I think is what they call it these call this friends and family they don\u2019t call that,\u00a0<\/span><span title=\"9:31 - 9:42\" data-start=\"00:09:30.724\" data-end=\"00:09:42.429\" data-spk=\"1\" data-label=\"Scot\">that anymore that\u2019s called a allocated shares but what\u2019s important about the underwriters is there\u2019s actually a signal there several signals here and I didn\u2019t know this time went through the process.<\/span><br \/><span title=\"9:43 - 9:56\" data-start=\"00:09:42.652\" data-end=\"00:09:56.004\" data-spk=\"1\" data-label=\"Scot\">First of all they have lined up a who\u2019s who of investors so even before you get to Underwriters they have this really interesting note right before right underneath before they get in the underwriters and they say\u00a0<\/span><span title=\"9:56 - 10:05\" data-start=\"00:09:55.962\" data-end=\"00:10:05.156\" data-spk=\"1\" data-label=\"Scot\">oh by the way we have lined up these investors already that have committed to buying and they have committed Asterix and then they kind of like take away the committed but.<\/span><\/p>\n<p><small>[10:05]<\/small>\u00a0<span title=\"10:05 - 10:17\" data-start=\"00:10:05.493\" data-end=\"00:10:17.132\" data-spk=\"1\" data-label=\"Scot\">I think that\u2019s a legality I think I think it\u2019s a pretty hard commitment is my reading of them and they basically say these guys are already these guys have lined up to buy at least 400 million in this offering.<\/span><br \/><span title=\"10:17 - 10:22\" data-start=\"00:10:17.354\" data-end=\"00:10:22.348\" data-spk=\"1\" data-label=\"Scot\">Regardless of the price and there\u2019s some big names in there there what I would call.<\/span><br \/><span title=\"10:23 - 10:30\" data-start=\"00:10:22.522\" data-end=\"00:10:29.588\" data-spk=\"1\" data-label=\"Scot\">Public-private so they have invested in instacart already as a private entity and then they have another side of there.<\/span><br \/><span title=\"10:30 - 10:38\" data-start=\"00:10:29.961\" data-end=\"00:10:37.839\" data-spk=\"1\" data-label=\"Scot\">Firm that invest in public entities and they have said that side is going to support the private side and that\u2019s nor just Bank tcv.<\/span><\/p>\n<p><small>[10:38]<\/small>\u00a0<span title=\"10:38 - 10:46\" data-start=\"00:10:38.428\" data-end=\"00:10:46.107\" data-spk=\"1\" data-label=\"Scot\">Sequoia and a couple others this is very unusual but I think it\u2019s an interesting play because it basically says to the market.<\/span><br \/><span title=\"10:46 - 10:50\" data-start=\"00:10:46.252\" data-end=\"00:10:50.302\" data-spk=\"1\" data-label=\"Scot\">Hey you don\u2019t have to worry about this thing you know\u00a0<\/span><span title=\"10:50 - 10:59\" data-start=\"00:10:50.290\" data-end=\"00:10:58.925\" data-spk=\"1\" data-label=\"Scot\">taking on the first day because we\u2019re going to were signaling to you we\u2019re going to place a chunk of this with these folks that are long-term holders\u00a0<\/span><span title=\"10:59 - 11:13\" data-start=\"00:10:58.793\" data-end=\"00:11:12.938\" data-spk=\"1\" data-label=\"Scot\">and they\u2019re going to backstop this thing I think of it as a adding a floor to the IPO basically saying we know it\u2019s been a while we know there\u2019s risk out there we\u2019re going to have a floor on this so so there\u2019s built-in demand for this IPO\u00a0<\/span><span title=\"11:13 - 11:20\" data-start=\"00:11:12.872\" data-end=\"00:11:19.926\" data-spk=\"1\" data-label=\"Scot\">so that\u2019s quite unusual and this is the first time I\u2019ve ever seen anything like that sometimes you\u2019ll see\u00a0<\/span><span title=\"11:20 - 11:28\" data-start=\"00:11:19.915\" data-end=\"00:11:28.321\" data-spk=\"1\" data-label=\"Scot\">tiro price is a big one a big mutual fund that likes to do this or they\u2019ll have a private-public and they\u2019ll say you know they\u2019ll kind of suggests that,\u00a0<\/span><span title=\"11:28 - 11:39\" data-start=\"00:11:28.394\" data-end=\"00:11:38.855\" data-spk=\"1\" data-label=\"Scot\">they\u2019re interested in buying more and they\u2019ll come out and say they don\u2019t plan to sell or they\u2019ve accepted a lock up for a year or something like that I\u2019ve never seen such a strong message as this one so I thought that was interesting.<\/span><br \/><span title=\"11:40 - 11:52\" data-start=\"00:11:39.889\" data-end=\"00:11:51.805\" data-spk=\"1\" data-label=\"Scot\">Okay then we move to the bottom of the cover and that\u2019s where you have the list of the underwriters and what\u2019s really interesting is the way this works is the bigger your font the bigger a role you play in the IPO\u00a0<\/span><span title=\"11:52 - 12:01\" data-start=\"00:11:51.679\" data-end=\"00:12:01.215\" data-spk=\"1\" data-label=\"Scot\">so on this one the biggest font is Goldman Sachs and JP Morgan and you know they have I don\u2019t know what would you say Jason like a 40 Point font.<\/span><br \/><span title=\"12:02 - 12:03\" data-start=\"00:12:02.081\" data-end=\"00:12:02.891\" data-spk=\"1\" data-label=\"Scot\">Your.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[12:03]<\/small>\u00a0<span title=\"12:03 - 12:11\" data-start=\"00:12:02.657\" data-end=\"00:12:11.460\" data-spk=\"0\" data-label=\"Jason\">Yeah I had to read it with my my PDF zoomed way up so I feel like I yeah but it was a big font.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[12:11]<\/small>\u00a0<span title=\"12:11 - 12:23\" data-start=\"00:12:11.160\" data-end=\"00:12:22.745\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah so those guys get like a you know they\u2019re kind of really big and then what\u2019s also interesting is where you show up on the page is important so your importance starts at the left and goes down to the right\u00a0<\/span><span title=\"12:23 - 12:30\" data-start=\"00:12:22.595\" data-end=\"00:12:30.221\" data-spk=\"1\" data-label=\"Scot\">so the most important what we would call the vernacular is the lead left which is the biggest font on the left side of the cover\u00a0<\/span><span title=\"12:30 - 12:37\" data-start=\"00:12:30.071\" data-end=\"00:12:36.849\" data-spk=\"1\" data-label=\"Scot\">is the lead Investment Bank and as Goldman Sachs and they\u2019re they\u2019re The Bluest of Blue Chips everyone wants Goldman Sachs if they come out.<\/span><\/p>\n<p><small>[12:37]<\/small>\u00a0<span title=\"12:37 - 12:47\" data-start=\"00:12:37.029\" data-end=\"00:12:46.613\" data-spk=\"1\" data-label=\"Scot\">And then usually you want either JP Morgan or Morgan Stanley now JPMorgan has increased greatly and stature over the last three years because\u00a0<\/span><span title=\"12:46 - 12:56\" data-start=\"00:12:46.470\" data-end=\"00:12:55.579\" data-spk=\"1\" data-label=\"Scot\">they have weathered coded and they have basically absorbed most of Silicon Valley Bank\u2019s deposits and a lot of these other riskier Banks and\u00a0<\/span><span title=\"12:55 - 13:02\" data-start=\"00:12:55.435\" data-end=\"00:13:02.303\" data-spk=\"1\" data-label=\"Scot\">their CEO is pretty famous Jamie dimon so they\u2019ve this is kind of you know\u00a0<\/span><span title=\"13:02 - 13:09\" data-start=\"00:13:02.249\" data-end=\"00:13:08.919\" data-spk=\"1\" data-label=\"Scot\">two blue tips on the top of the book here which is pretty interesting and then,\u00a0<\/span><span title=\"13:09 - 13:21\" data-start=\"00:13:08.937\" data-end=\"00:13:20.817\" data-spk=\"1\" data-label=\"Scot\">then you kind of go down a bit and you end up with 18 more Underwriters and there\u2019s like three levels of them there\u2019s like the font gets smaller so you go from 40 point to 20 point then you go to like\u00a0<\/span><span title=\"13:21 - 13:24\" data-start=\"00:13:20.751\" data-end=\"00:13:23.623\" data-spk=\"1\" data-label=\"Scot\">kind of like 15 point and you go to seven point\u00a0<\/span><span title=\"13:23 - 13:37\" data-start=\"00:13:23.479\" data-end=\"00:13:36.603\" data-spk=\"1\" data-label=\"Scot\">and you know what\u2019s interesting is I have never seen this many Underwriters either so they basically have said we want everyone on Wall Street lined to go and help us sell this we will turn\u00a0<\/span><span title=\"13:36 - 13:44\" data-start=\"00:13:36.447\" data-end=\"00:13:43.699\" data-spk=\"1\" data-label=\"Scot\">no Rock no Rock will be unturned looking for buyers of instacart stock with the institutional investors.<\/span><br \/><span title=\"13:44 - 13:53\" data-start=\"00:13:43.790\" data-end=\"00:13:52.557\" data-spk=\"1\" data-label=\"Scot\">There\u2019s some International Players so they\u2019ve basically if you kind of said if you if you.<\/span><\/p>\n<p><small>[13:53]<\/small>\u00a0<span title=\"13:53 - 14:02\" data-start=\"00:13:53.074\" data-end=\"00:14:02.141\" data-spk=\"1\" data-label=\"Scot\">Few War Room doubt what are some things a company could do 2D risk an IPO they have done things I\u2019ve never seen before times like three\u00a0<\/span><span title=\"14:02 - 14:12\" data-start=\"00:14:02.028\" data-end=\"00:14:11.996\" data-spk=\"1\" data-label=\"Scot\">and then the last thing that\u2019s interesting is the economics each of these Banks gets kind of depends on where they are on the page so\u00a0<\/span><span title=\"14:12 - 14:15\" data-start=\"00:14:11.846\" data-end=\"00:14:15.283\" data-spk=\"1\" data-label=\"Scot\">you know if it all this gets him to like,\u00a0<\/span><span title=\"14:15 - 14:24\" data-start=\"00:14:15.284\" data-end=\"00:14:24.068\" data-spk=\"1\" data-label=\"Scot\">there\u2019s all this Machinery but these guys do it because they make money so Goldman will make their kind of highest percentage and then JPMorgan and so on and so on\u00a0<\/span><span title=\"14:24 - 14:29\" data-start=\"00:14:23.877\" data-end=\"00:14:28.683\" data-spk=\"1\" data-label=\"Scot\">based on how much they contribute to the book and all this kind of calculus that goes on behind the scenes\u00a0<\/span><span title=\"14:29 - 14:38\" data-start=\"00:14:28.504\" data-end=\"00:14:38.412\" data-spk=\"1\" data-label=\"Scot\">so I thought that was kind of a really interesting just on the cover some things that were very unusual from other IPOs I\u2019ve seen\u00a0<\/span><span title=\"14:38 - 14:43\" data-start=\"00:14:38.304\" data-end=\"00:14:42.504\" data-spk=\"1\" data-label=\"Scot\">Jason anything that you found on the cover that was riveting.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[14:43]<\/small>\u00a0<span title=\"14:43 - 14:44\" data-start=\"00:14:42.631\" data-end=\"00:14:44.259\" data-spk=\"0\" data-label=\"Jason\">We\u2019ll know I did.<\/span><br \/><span title=\"14:44 - 14:56\" data-start=\"00:14:44.379\" data-end=\"00:14:55.532\" data-spk=\"0\" data-label=\"Jason\">I have a question for you though I got I guess I when I saw all of those Underwriters I kind of and perhaps erroneously assumed that part of what was going on here is,\u00a0<\/span><span title=\"14:56 - 15:04\" data-start=\"00:14:55.556\" data-end=\"00:15:04.011\" data-spk=\"0\" data-label=\"Jason\">it\u2019s been a while since there were in any IPOs that went through an underwriter and that all of the underwriters are out there.<\/span><br \/><span title=\"15:04 - 15:10\" data-start=\"00:15:04.209\" data-end=\"00:15:10.458\" data-spk=\"0\" data-label=\"Jason\">Desperate for four deals and that therefore.<\/span><br \/><span title=\"15:11 - 15:16\" data-start=\"00:15:10.964\" data-end=\"00:15:16.023\" data-spk=\"0\" data-label=\"Jason\">Instacart had more more leverage to get more Underwriters like is it.<\/span><br \/><span title=\"15:16 - 15:23\" data-start=\"00:15:16.288\" data-end=\"00:15:23.324\" data-spk=\"0\" data-label=\"Jason\">Is it literally instacart just agreed to pay more for these two more Underwriters 2D risk the IPO is that.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[15:23]<\/small>\u00a0<span title=\"15:23 - 15:26\" data-start=\"00:15:23.186\" data-end=\"00:15:25.776\" data-spk=\"1\" data-label=\"Scot\">Yeah I think.<\/span><br \/><span title=\"15:26 - 15:40\" data-start=\"00:15:26.413\" data-end=\"00:15:39.506\" data-spk=\"1\" data-label=\"Scot\">So human nature is that the lead laughed and Lead right want to absorb a lot of the deal and don\u2019t want to share too much so so typically there\u2019s some friction there right so they\u2019ll be like\u00a0<\/span><span title=\"15:39 - 15:47\" data-start=\"00:15:39.296\" data-end=\"00:15:47.486\" data-spk=\"1\" data-label=\"Scot\">yeah you could add a couple and they use this tearing language I don\u2019t you know this is just kind of how I don\u2019t know who how they know what who\u2019s what dear,\u00a0<\/span><span title=\"15:48 - 15:54\" data-start=\"00:15:47.529\" data-end=\"00:15:54.138\" data-spk=\"1\" data-label=\"Scot\">but tier one is Goldman Morgan and JP Morgan Morgan Stanley and then tier 2 is you get kind of Stiefel,\u00a0<\/span><span title=\"15:54 - 16:04\" data-start=\"00:15:54.223\" data-end=\"00:16:04.354\" data-spk=\"1\" data-label=\"Scot\">a couple others in there then you go tier 3 and then you kind of have like an international kind of tearing as well so usually you get like two from Tier 1 Maybe\u00a0<\/span><span title=\"16:04 - 16:13\" data-start=\"00:16:04.240\" data-end=\"00:16:13.409\" data-spk=\"1\" data-label=\"Scot\">two or three from tier 2 and then that\u2019s kind of it and then if you\u2019ve if the company feels strongly like another consideration is when you go public\u00a0<\/span><span title=\"16:13 - 16:23\" data-start=\"00:16:13.218\" data-end=\"00:16:22.982\" data-spk=\"1\" data-label=\"Scot\">one of the things that helps you long term is to have analysts that follow your stock and we\u2019ve had many of these analysts on our show Mark mahaney Collin Sebastian\u00a0<\/span><span title=\"16:23 - 16:36\" data-start=\"00:16:22.820\" data-end=\"00:16:35.673\" data-spk=\"1\" data-label=\"Scot\">these are and then Scott Devitt he was at stifel and he\u2019s moved on to another shop these are these are famous people in the internet marketing world so you want take Mark sets,\u00a0<\/span><span title=\"16:36 - 16:39\" data-start=\"00:16:35.728\" data-end=\"00:16:38.804\" data-spk=\"1\" data-label=\"Scot\">I wasn\u2019t even as Fern was he ever green but that\u2019s not it.<\/span><\/p>\n<p><small>[16:40]<\/small>\u00a0<span title=\"16:40 - 16:51\" data-start=\"00:16:39.657\" data-end=\"00:16:50.660\" data-spk=\"1\" data-label=\"Scot\">Ever Quorum so so you as the company can say the Goldman hey I know you guys want to keep a lot of Economics but I want mahaney on this and we got to get ever Cora\u00a0<\/span><span title=\"16:51 - 16:57\" data-start=\"00:16:50.600\" data-end=\"00:16:57.005\" data-spk=\"1\" data-label=\"Scot\">so some of those on the bottom are probably International distribution retail\u00a0<\/span><span title=\"16:57 - 17:07\" data-start=\"00:16:56.879\" data-end=\"00:17:06.920\" data-spk=\"1\" data-label=\"Scot\">or something the company wanted kind of specific to add them on and you know that was all pre-negotiated with Goldman getting lead left they had they kind of had to\u00a0<\/span><span title=\"17:07 - 17:13\" data-start=\"00:17:06.812\" data-end=\"00:17:13.110\" data-spk=\"1\" data-label=\"Scot\">acquiesce to having a bit of a large number of Underwriters on there so I don\u2019t yeah I don\u2019t think\u00a0<\/span><span title=\"17:13 - 17:24\" data-start=\"00:17:13.020\" data-end=\"00:17:23.541\" data-spk=\"1\" data-label=\"Scot\">I\u2019m sure they all wanted to be to your point like there certainly wasn\u2019t even saying no to being invited to this and they probably you know you just bake off in this was I came to imagine if they ended up with 18 like,\u00a0<\/span><span title=\"17:24 - 17:29\" data-start=\"00:17:23.590\" data-end=\"00:17:28.913\" data-spk=\"1\" data-label=\"Scot\">mr. started with 80 I don\u2019t know it\u2019s crazy that was probably like a.<\/span><br \/><span title=\"17:29 - 17:39\" data-start=\"00:17:29.112\" data-end=\"00:17:38.714\" data-spk=\"1\" data-label=\"Scot\">Six week bake off just to hear from all the bankers so yes I think there\u2019s more around the analyst going on with with the large number on some of those.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[17:39]<\/small>\u00a0<span title=\"17:39 - 17:51\" data-start=\"00:17:38.925\" data-end=\"00:17:50.949\" data-spk=\"0\" data-label=\"Jason\">Got it and then I want to hear your speculation about where the price might come in but I\u2019m trying to remember the details there\u2019s been a lot of interesting things going on with the\u00a0<\/span><span title=\"17:51 - 17:55\" data-start=\"00:17:50.931\" data-end=\"00:17:54.957\" data-spk=\"0\" data-label=\"Jason\">private placements before we got to this point right so I think\u00a0<\/span><span title=\"17:55 - 18:05\" data-start=\"00:17:54.843\" data-end=\"00:18:05.052\" data-spk=\"0\" data-label=\"Jason\">the some of the valuations of the private placements were at some point disclosed and then I want to say instacart reset there.<\/span><br \/><span title=\"18:05 - 18:14\" data-start=\"00:18:05.461\" data-end=\"00:18:13.849\" data-spk=\"0\" data-label=\"Jason\">Their valuation at a lower number while they were still private like presumably to make\u00a0<\/span><span title=\"18:14 - 18:17\" data-start=\"00:18:13.844\" data-end=\"00:18:17.058\" data-spk=\"0\" data-label=\"Jason\">the equity appealing for employees.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[18:17]<\/small>\u00a0<span title=\"18:17 - 18:25\" data-start=\"00:18:17.251\" data-end=\"00:18:24.846\" data-spk=\"1\" data-label=\"Scot\">Yeah the sequence of events and this is all you know they don\u2019t disclose all this in this one because it\u2019s kind of like.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[18:25]<\/small>\u00a0<span title=\"18:25 - 18:28\" data-start=\"00:18:24.546\" data-end=\"00:18:27.628\" data-spk=\"0\" data-label=\"Jason\">Sure I\u2019m just trying to get the the Run.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[18:27]<\/small>\u00a0<span title=\"18:27 - 18:40\" data-start=\"00:18:27.328\" data-end=\"00:18:39.917\" data-spk=\"1\" data-label=\"Scot\">The Whispers And if you read some of these you know I subscribe to a lot of things that talk about some of this kind of rumors and so take it with a grain of salt but there was some sequins like they were chugging along and then Covent hit and it was like Off to the Races vertical\u00a0<\/span><span title=\"18:40 - 18:50\" data-start=\"00:18:39.719\" data-end=\"00:18:49.531\" data-spk=\"1\" data-label=\"Scot\">and I think the wheels kind of came off the bus and they started to lose money because the unit economics weren\u2019t weren\u2019t ready for for like a surge like that\u00a0<\/span><span title=\"18:49 - 19:03\" data-start=\"00:18:49.321\" data-end=\"00:19:02.655\" data-spk=\"1\" data-label=\"Scot\">and then right around 21 they replace the CEO and they had to kind of emergency raise some Capital which is kind of like one of the worst times to do it because even though their revenue was surging the rest of the market was in\u00a0<\/span><span title=\"19:03 - 19:10\" data-start=\"00:19:02.511\" data-end=\"00:19:10.437\" data-spk=\"1\" data-label=\"Scot\">the toilet basically so I think they had to do a Down Round And what I\u2019ve heard is their bed raised money as high as 39 billion and then\u00a0<\/span><span title=\"19:10 - 19:19\" data-start=\"00:19:10.245\" data-end=\"00:19:18.885\" data-spk=\"1\" data-label=\"Scot\">they took this haircut at with this new CEO in this kind of re leaning down the company at about 13 billion so.<\/span><\/p>\n<p><small>[19:19]<\/small>\u00a0<span title=\"19:19 - 19:28\" data-start=\"00:19:19.313\" data-end=\"00:19:28.362\" data-spk=\"1\" data-label=\"Scot\">So I think that\u2019s kind of like the watermark is kind of where they\u2019ve last raised money and if you look at their revenue that\u2019s actually not that\u2019s a very reasonable\u00a0<\/span><span title=\"19:28 - 19:30\" data-start=\"00:19:28.320\" data-end=\"00:19:29.990\" data-spk=\"1\" data-label=\"Scot\">Place given where you know\u00a0<\/span><span title=\"19:30 - 19:45\" data-start=\"00:19:29.864\" data-end=\"00:19:44.670\" data-spk=\"1\" data-label=\"Scot\">they\u2019ve grown since then but now what\u2019s the revenue like four billion ish yeah so they\u2019re like 3 billion and 22 in revs so that\u2019s like a four times Revenue which is pretty\u00a0<\/span><span title=\"19:45 - 19:50\" data-start=\"00:19:44.599\" data-end=\"00:19:50.355\" data-spk=\"1\" data-label=\"Scot\">reasonable for a company growing the way they are with with good profitability\u00a0<\/span><span title=\"19:50 - 20:05\" data-start=\"00:19:50.193\" data-end=\"00:20:05.143\" data-spk=\"1\" data-label=\"Scot\">so I would be I would not be surprised we don\u2019t we won\u2019t know this per share price until we see the denominator and they didn\u2019t have the denominator which is market cap divided by number of shares equals share price we don\u2019t know the number of shares so I would I would suspect.<\/span><br \/><span title=\"20:05 - 20:07\" data-start=\"00:20:05.360\" data-end=\"00:20:07.270\" data-spk=\"1\" data-label=\"Scot\">I\u2019ll guess,\u00a0<\/span><span title=\"20:07 - 20:20\" data-start=\"00:20:07.283\" data-end=\"00:20:20.112\" data-spk=\"1\" data-label=\"Scot\">four billion I\u2019m gonna guess 20 billion would be a low like I think it will price they\u2019re on the low end and it could go as high as 25 30 depends on you know.<\/span><br \/><span title=\"20:20 - 20:26\" data-start=\"00:20:20.275\" data-end=\"00:20:25.959\" data-spk=\"1\" data-label=\"Scot\">Retail and how much momentum it gets with with buyers.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[20:26]<\/small>\u00a0<span title=\"20:26 - 20:33\" data-start=\"00:20:26.127\" data-end=\"00:20:33.488\" data-spk=\"0\" data-label=\"Jason\">And part of the art here is you don\u2019t you don\u2019t want to price it too low because that means you\u00a0<\/span><span title=\"20:33 - 20:43\" data-start=\"00:20:33.422\" data-end=\"00:20:43.205\" data-spk=\"0\" data-label=\"Jason\">you have money on the table when you sold your Equity but you also don\u2019t want to price too high and have the,\u00a0<\/span><span title=\"20:43 - 20:49\" data-start=\"00:20:43.211\" data-end=\"00:20:49.370\" data-spk=\"0\" data-label=\"Jason\">the stock like go down from the offering price and get below water right away right so.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[20:49]<\/small>\u00a0<span title=\"20:49 - 20:57\" data-start=\"00:20:49.154\" data-end=\"00:20:57.152\" data-spk=\"1\" data-label=\"Scot\">Yeah it\u2019s very common we kind of had this situation at Channel visor we went public right after you know\u00a0<\/span><span title=\"20:57 - 21:15\" data-start=\"00:20:57.104\" data-end=\"00:21:14.578\" data-spk=\"1\" data-label=\"Scot\">cortical right after in a longer time window of 08 09 and you know they strongly we had golden lead left and they strongly encouraged us to think long-term and not get obsessed about that pricing and leave a little bit of money on the table and\u00a0<\/span><span title=\"21:14 - 21:26\" data-start=\"00:21:14.398\" data-end=\"00:21:25.833\" data-spk=\"1\" data-label=\"Scot\">yeah and then over time you could do a secondary at a higher price and you really want to you don\u2019t want to tank especially in a tepid market so I\u2019m sure this was all part of the\u00a0<\/span><span title=\"21:26 - 21:34\" data-start=\"00:21:25.677\" data-end=\"00:21:33.603\" data-spk=\"1\" data-label=\"Scot\">um you know Goldman would counter negotiate this to be lead left and say look we we need your commitment that your\u00a0<\/span><span title=\"21:34 - 21:44\" data-start=\"00:21:33.549\" data-end=\"00:21:44.287\" data-spk=\"1\" data-label=\"Scot\">yep part of the pitch is they give you what they think it\u2019s worth and how it\u2019s going to price and they also discuss the strategy and that\u2019s part of the selection processes and you would think it would be.<\/span><br \/><span title=\"21:45 - 21:53\" data-start=\"00:21:44.594\" data-end=\"00:21:53.240\" data-spk=\"1\" data-label=\"Scot\">Okay whoever says they\u2019re gonna give me the highest price but you actually kind of they really stand out a lot because the Goldman people can talk about Dave,\u00a0<\/span><span title=\"21:53 - 22:00\" data-start=\"00:21:53.319\" data-end=\"00:21:59.868\" data-spk=\"1\" data-label=\"Scot\">they\u2019ve got like a lot of data to back up their strategy and you know there\u2019s like Watson there that that are.<\/span><br \/><span title=\"22:00 - 22:11\" data-start=\"00:22:00.265\" data-end=\"00:22:11.340\" data-spk=\"1\" data-label=\"Scot\">It would make your head spin and so they do a really good job of talking about why it makes sense to price the way they think and how how they see it over a longer Arc of time.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[22:12]<\/small>\u00a0<span title=\"22:12 - 22:18\" data-start=\"00:22:12.025\" data-end=\"00:22:17.986\" data-spk=\"0\" data-label=\"Jason\">Gotcha so the guys with all the money have really good justification for why you shouldn\u2019t worry so much about the money.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[22:18]<\/small>\u00a0<span title=\"22:18 - 22:32\" data-start=\"00:22:18.449\" data-end=\"00:22:31.915\" data-spk=\"1\" data-label=\"Scot\">And then the other thing to know though is what typically happens is you are not sharing you\u2019re not selling any one shares so the company so as part of this IPO the company will issue new shares so\u00a0<\/span><span title=\"22:32 - 22:44\" data-start=\"00:22:31.831\" data-end=\"00:22:44.209\" data-spk=\"1\" data-label=\"Scot\">so you as the founder and the other investors you still have your shares you\u2019re not actually selling them at this moment so you know in a way now you get diluted right so the flip of that is your percent ownership goes down\u00a0<\/span><span title=\"22:44 - 22:50\" data-start=\"00:22:44.114\" data-end=\"00:22:50.176\" data-spk=\"1\" data-label=\"Scot\">but you know it\u2019s kind of the would you take a little bit smaller.<\/span><br \/><span title=\"22:50 - 22:57\" data-start=\"00:22:50.393\" data-end=\"00:22:57.171\" data-spk=\"1\" data-label=\"Scot\">Of that and long term when you can sell your shares as the investor and the founder and the team\u00a0<\/span><span title=\"22:57 - 23:07\" data-start=\"00:22:57.069\" data-end=\"00:23:07.164\" data-spk=\"1\" data-label=\"Scot\">and the people that bet on you now you know can you execute and deliver and then earn your way into a higher price and then that\u2019s when you can kind of like get some equipment\u00a0<\/span><span title=\"23:07 - 23:08\" data-start=\"00:23:07.080\" data-end=\"00:23:07.639\" data-spk=\"1\" data-label=\"Scot\">sir.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[23:08]<\/small>\u00a0<span title=\"23:08 - 23:11\" data-start=\"00:23:07.663\" data-end=\"00:23:10.781\" data-spk=\"0\" data-label=\"Jason\">Do you want a little bit of a grapefruit or all of a grape.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[23:11]<\/small>\u00a0<span title=\"23:11 - 23:15\" data-start=\"00:23:11.076\" data-end=\"00:23:14.753\" data-spk=\"1\" data-label=\"Scot\">Yes exactly yep that is a good description.<\/span><\/p>\n<p><small>[23:17]<\/small>\u00a0<span title=\"23:17 - 23:29\" data-start=\"00:23:16.731\" data-end=\"00:23:29.295\" data-spk=\"1\" data-label=\"Scot\">Okay so here\u2019s here\u2019s the other part of the quick and dirty guide to reading the S1 you can take so that\u2019s cover is really good and then you take the literally the next let\u2019s see what is it.<\/span><br \/><span title=\"23:30 - 23:40\" data-start=\"00:23:29.650\" data-end=\"00:23:40.112\" data-spk=\"1\" data-label=\"Scot\">100 pages and you can toss them so this is where the lawyers come in and they love to make sure you understand all the risk factors you know a meteor could hit the Earth\u00a0<\/span><span title=\"23:40 - 23:44\" data-start=\"00:23:40.010\" data-end=\"00:23:44.090\" data-spk=\"1\" data-label=\"Scot\">people could stop needing groceries cybersecurity\u00a0<\/span><span title=\"23:44 - 23:54\" data-start=\"00:23:44.042\" data-end=\"00:23:54.275\" data-spk=\"1\" data-label=\"Scot\">I could be no one wants to shop for them it could be they\u2019ll compete with a bunch of people Amazon is always a risk factor Google Microsoft.<\/span><br \/><span title=\"23:54 - 24:00\" data-start=\"00:23:54.450\" data-end=\"00:24:00.410\" data-spk=\"1\" data-label=\"Scot\">So all that really doesn\u2019t add value and then there\u2019s a little bit of financial stuff but it\u2019s\u00a0<\/span><span title=\"24:00 - 24:12\" data-start=\"00:24:00.399\" data-end=\"00:24:11.551\" data-spk=\"1\" data-label=\"Scot\">it\u2019s pretty dry and it\u2019s kind of like from the Auditors almost so it\u2019s like super drive so it always do is you skip to the part of this one we\u2019re finally the lawyers have\u00a0<\/span><span title=\"24:11 - 24:18\" data-start=\"00:24:11.461\" data-end=\"00:24:17.987\" data-spk=\"1\" data-label=\"Scot\">earned their large fees and they vomited forth 100 pages of risk you know stuff.<\/span><br \/><span title=\"24:18 - 24:27\" data-start=\"00:24:18.228\" data-end=\"00:24:26.946\" data-spk=\"1\" data-label=\"Scot\">And then you get to write your story and that\u2019s called the Management\u2019s discussion and Analysis in the industry it\u2019s called the md&amp;a.<\/span><\/p>\n<p><small>[24:27]<\/small>\u00a0<span title=\"24:27 - 24:40\" data-start=\"00:24:27.458\" data-end=\"00:24:40.461\" data-spk=\"1\" data-label=\"Scot\">It\u2019s confusing I thought for a long time it was md&amp;a because Aaron says mdna really fast and they\u2019re saying the word A and D and it sounds like an end to me and I kept saying what the heck does md&amp;a stand for they\u2019re like what do you mean what\u2019s up what are you saying.<\/span><br \/><span title=\"24:41 - 24:49\" data-start=\"00:24:40.696\" data-end=\"00:24:49.162\" data-spk=\"1\" data-label=\"Scot\">It\u2019s like a who\u2019s I first got a thing but it\u2019s md&amp;a so Management\u2019s discussion and Analysis and this is where you.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[24:49]<\/small>\u00a0<span title=\"24:49 - 25:00\" data-start=\"00:24:48.862\" data-end=\"00:25:00.026\" data-spk=\"0\" data-label=\"Jason\">Because I read all 100 pages and and I\u2019m super depressed and one of the risk factors is the way I could become sentient and take over the Earth.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[25:00]<\/small>\u00a0<span title=\"25:00 - 25:09\" data-start=\"00:25:00.219\" data-end=\"00:25:08.746\" data-spk=\"1\" data-label=\"Scot\">Mmm yep that is a risk factor and then it will bring our groceries to us I guess as we are batteries for its consumption.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[25:08]<\/small>\u00a0<span title=\"25:08 - 25:10\" data-start=\"00:25:08.446\" data-end=\"00:25:09.899\" data-spk=\"0\" data-label=\"Jason\">The computers won\u2019t eat.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[25:10]<\/small>\u00a0<span title=\"25:10 - 25:19\" data-start=\"00:25:10.362\" data-end=\"00:25:19.424\" data-spk=\"1\" data-label=\"Scot\">So if you really want you know so what you can do is you can get the gist of 95% of this by printing out\u00a0<\/span><span title=\"25:19 - 25:33\" data-start=\"00:25:19.304\" data-end=\"00:25:33.257\" data-spk=\"1\" data-label=\"Scot\">the s-1 pages 1012 124 that\u2019s it\u2019s only 23 pages and it\u2019s really dense but it is actually this is actually a very good read they did a very good job of making this so you know.<\/span><br \/><span title=\"25:33 - 25:48\" data-start=\"00:25:33.359\" data-end=\"00:25:48.279\" data-spk=\"1\" data-label=\"Scot\">It\u2019s very approachable and they go into a level of detail that\u2019s really handy into problem so we\u2019re going to give you some of the highlights from that but if you want to go deep on your own we will give you all you need to go to the next level just by looking at those 23 pages.<\/span><br \/><span title=\"25:48 - 25:54\" data-start=\"00:25:48.364\" data-end=\"00:25:54.150\" data-spk=\"1\" data-label=\"Scot\">Okay so what did you see and them DNA and that got your attention.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[25:55]<\/small>\u00a0<span title=\"25:55 - 26:01\" data-start=\"00:25:55.040\" data-end=\"00:26:01.499\" data-spk=\"0\" data-label=\"Jason\">Well I mean a number of things so maybe just super high level\u00a0<\/span><span title=\"26:01 - 26:06\" data-start=\"00:26:01.494\" data-end=\"00:26:05.898\" data-spk=\"0\" data-label=\"Jason\">what\u2019s exciting to me like obviously a lot of this information about the business was not,\u00a0<\/span><span title=\"26:06 - 26:15\" data-start=\"00:26:05.958\" data-end=\"00:26:14.803\" data-spk=\"0\" data-label=\"Jason\">publicly available so in the process of going public in issuing S1 they suddenly reveal a lot of things and they reveal things about.<\/span><br \/><span title=\"26:15 - 26:29\" data-start=\"00:26:15.074\" data-end=\"00:26:29.165\" data-spk=\"0\" data-label=\"Jason\">Their own business but they also have to paint a pretty good picture of what they think is happening and could happen in the digital grocery business so it\u2019s kind of like getting a whole class of really smart people to sort of,\u00a0<\/span><span title=\"26:29 - 26:38\" data-start=\"00:26:29.207\" data-end=\"00:26:38.040\" data-spk=\"0\" data-label=\"Jason\">write a thesis about the the digital grocery business that we get to read and interpret and you know we\u00a0<\/span><span title=\"26:38 - 26:48\" data-start=\"00:26:37.993\" data-end=\"00:26:47.523\" data-spk=\"0\" data-label=\"Jason\">they reveal things that we didn\u2019t know like how valuable customers are over time and how much consumers\u00a0<\/span><span title=\"26:47 - 26:56\" data-start=\"00:26:47.487\" data-end=\"00:26:55.653\" data-spk=\"0\" data-label=\"Jason\">spend on a given order at instacart and what percent share of wallet they think digital gets versus\u00a0<\/span><span title=\"26:56 - 27:07\" data-start=\"00:26:55.527\" data-end=\"00:27:07.238\" data-spk=\"0\" data-label=\"Jason\">brick and mortar and all these sorts of things and we\u2019ll get into a bunch of them in the in the individual sessions but my my takeaway from the beginning of that management discussion was that it\u2019s a.<\/span><\/p>\n<p><small>[27:08]<\/small>\u00a0<span title=\"27:08 - 27:14\" data-start=\"00:27:07.780\" data-end=\"00:27:14.329\" data-spk=\"0\" data-label=\"Jason\">A pretty robust business that the aggregate amount of.<\/span><br \/><span title=\"27:15 - 27:27\" data-start=\"00:27:14.534\" data-end=\"00:27:26.726\" data-spk=\"0\" data-label=\"Jason\">GTV that they that they have is pretty significant its twenty eight point eight billion dollars in groceries that they sold in 2022.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[27:27]<\/small>\u00a0<span title=\"27:27 - 27:36\" data-start=\"00:27:27.183\" data-end=\"00:27:35.511\" data-spk=\"1\" data-label=\"Scot\">Yeah and GTV is gross transaction volume so instacart it\u2019s basically a Marketplace like eBay or Amazon where parts of\u00a0<\/span><span title=\"27:35 - 27:46\" data-start=\"00:27:35.427\" data-end=\"00:27:45.943\" data-spk=\"1\" data-label=\"Scot\">parts of Amazon all of you back where you have in the marketplace of product Marketplace use GMB a lot of payment systems like PayPal use tpv gross merchandising value\u00a0<\/span><span title=\"27:46 - 27:57\" data-start=\"00:27:45.787\" data-end=\"00:27:57.234\" data-spk=\"1\" data-label=\"Scot\">total payment volume they have chosen to use this term for the gross figure of GTV and at first I thought it was going to be groceries to do but it\u2019s gross transaction value I thought for sure it was like\u00a0<\/span><span title=\"27:57 - 27:58\" data-start=\"00:27:57.084\" data-end=\"00:27:58.057\" data-spk=\"1\" data-label=\"Scot\">grocery,\u00a0<\/span><span title=\"27:58 - 28:09\" data-start=\"00:27:58.064\" data-end=\"00:28:09.048\" data-spk=\"1\" data-label=\"Scot\">I was trying to decode it without looking it up and I was like that can\u2019t be grocery because then I don\u2019t know what a TV is doing there and you know so then their revenue is a derivative of that meaning of some percentage\u00a0<\/span><span title=\"28:09 - 28:11\" data-start=\"00:28:08.898\" data-end=\"00:28:11.109\" data-spk=\"1\" data-label=\"Scot\">then of that big number\u00a0<\/span><span title=\"28:11 - 28:19\" data-start=\"00:28:10.947\" data-end=\"00:28:19.317\" data-spk=\"1\" data-label=\"Scot\">Falls to them as Revenue after they pay the grocer The Shopper and then instacart the business has the leftovers and which ends up,\u00a0<\/span><span title=\"28:19 - 28:26\" data-start=\"00:28:19.360\" data-end=\"00:28:25.813\" data-spk=\"1\" data-label=\"Scot\">we\u2019ll go through the unique and I\u2019ll mix it ends up being being pretty small because the grocery business does not have huge merchants.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[28:26]<\/small>\u00a0<span title=\"28:26 - 28:34\" data-start=\"00:28:26.006\" data-end=\"00:28:33.847\" data-spk=\"0\" data-label=\"Jason\">Yeah so kind of looking at those business fundamentals that you know in 2022 they sold 28.8,\u00a0<\/span><span title=\"28:34 - 28:48\" data-start=\"00:28:33.854\" data-end=\"00:28:47.878\" data-spk=\"0\" data-label=\"Jason\">billion dollars worth of stuff which for them generated 2.5 billion dollars in revenue and they were profitable on that Revenue they they net 428.<\/span><br \/><span title=\"28:48 - 28:53\" data-start=\"00:28:48.011\" data-end=\"00:28:53.052\" data-spk=\"0\" data-label=\"Jason\">Million dollars which like back in the\u00a0<\/span><span title=\"28:53 - 29:06\" data-start=\"00:28:52.992\" data-end=\"00:29:05.972\" data-spk=\"0\" data-label=\"Jason\">a couple years ago when there were more IPOs happening there were there were IPOs in the space they were happening with companies that still weren\u2019t profitable so so that was interesting that they they were meaningfully profitable and then the,\u00a0<\/span><span title=\"29:06 - 29:12\" data-start=\"00:29:05.978\" data-end=\"00:29:12.347\" data-spk=\"0\" data-label=\"Jason\">you know you\u2019re super interested in what the growth trajectory is and.<\/span><\/p>\n<p><small>[29:13]<\/small>\u00a0<span title=\"29:13 - 29:22\" data-start=\"00:29:12.654\" data-end=\"00:29:22.334\" data-spk=\"0\" data-label=\"Jason\">20:19 was a very small year so going from 2019 to 2020 you know and then the pandemic app in the middle 2020 and urban was ordering groceries from,\u00a0<\/span><span title=\"29:22 - 29:28\" data-start=\"00:29:22.371\" data-end=\"00:29:28.277\" data-spk=\"0\" data-label=\"Jason\">from instacart so the growth in 2020 was astronomical like 300% or something like that.<\/span><br \/><span title=\"29:28 - 29:33\" data-start=\"00:29:28.374\" data-end=\"00:29:33.373\" data-spk=\"0\" data-label=\"Jason\">But then the growth in 2021 over 2020 was 24%.<\/span><br \/><span title=\"29:34 - 29:42\" data-start=\"00:29:33.548\" data-end=\"00:29:41.750\" data-spk=\"0\" data-label=\"Jason\">On revenue and the growth in 2022 over 2021 was 39% in Revenue so.<\/span><br \/><span title=\"29:42 - 29:46\" data-start=\"00:29:41.906\" data-end=\"00:29:45.788\" data-spk=\"0\" data-label=\"Jason\">The revenue growth is Meaningful and accelerating.<\/span><br \/><span title=\"29:46 - 29:56\" data-start=\"00:29:45.956\" data-end=\"00:29:55.528\" data-spk=\"0\" data-label=\"Jason\">Which would be exciting they were not profitable in 2020 or 2021 so 2022 is the First full year that they were profitable.<\/span><br \/><span title=\"29:56 - 30:09\" data-start=\"00:29:55.727\" data-end=\"00:30:08.568\" data-spk=\"0\" data-label=\"Jason\">The GTD is a little different though they had significant growth three hundred percent in 2020 20 percent in 20 21 and 16 percent in 2022 so,\u00a0<\/span><span title=\"30:09 - 30:17\" data-start=\"00:30:08.617\" data-end=\"00:30:17.083\" data-spk=\"0\" data-label=\"Jason\">well they have a track record of growth it\u2019s the top on GTV growth is decelerating.<\/span><br \/><span title=\"30:17 - 30:22\" data-start=\"00:30:17.306\" data-end=\"00:30:22.317\" data-spk=\"0\" data-label=\"Jason\">And then of course we\u2019re halfway through 2023 so they have to disclose.<\/span><\/p>\n<p><small>[30:23]<\/small>\u00a0<span title=\"30:23 - 30:35\" data-start=\"00:30:22.582\" data-end=\"00:30:34.816\" data-spk=\"0\" data-label=\"Jason\">How the well they\u2019ve done in the first six months of this year and they compared to that to last year and the revenue and GTV are both essentially flat in the first six months of this year.<\/span><br \/><span title=\"30:35 - 30:45\" data-start=\"00:30:34.966\" data-end=\"00:30:44.586\" data-spk=\"0\" data-label=\"Jason\">Versus last year so I don\u2019t know you\u2019ll have to tell me but I look at that and you go man there\u2019s some robust stuff here there\u2019s a great growth story.<\/span><br \/><span title=\"30:45 - 30:53\" data-start=\"00:30:44.743\" data-end=\"00:30:53.041\" data-spk=\"0\" data-label=\"Jason\">I should have mentioned that that\u2019s on an annual basis on a quarterly basis they have five consecutive quarters of profitability which also seems.<\/span><br \/><span title=\"30:53 - 31:00\" data-start=\"00:30:53.306\" data-end=\"00:31:00.192\" data-spk=\"0\" data-label=\"Jason\">Impressive him pretty favorable but it\u2019s probably a slight worry that the.<\/span><br \/><span title=\"31:01 - 31:08\" data-start=\"00:31:00.871\" data-end=\"00:31:08.298\" data-spk=\"0\" data-label=\"Jason\">A lot of that growth seems like it\u2019s it\u2019s leveling off in 2023 I don\u2019t know if.<\/span><br \/><span title=\"31:09 - 31:19\" data-start=\"00:31:08.713\" data-end=\"00:31:18.568\" data-spk=\"0\" data-label=\"Jason\">That the most recent performance gets gets over weighted or underweighted and sort of evaluating the the prospects for the company.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[31:19]<\/small>\u00a0<span title=\"31:19 - 31:26\" data-start=\"00:31:18.754\" data-end=\"00:31:25.719\" data-spk=\"1\" data-label=\"Scot\">Yeah the buyers will you know what every everyone has a different way they value things and they they\u2019re going to\u00a0<\/span><span title=\"31:26 - 31:37\" data-start=\"00:31:25.563\" data-end=\"00:31:37.094\" data-spk=\"1\" data-label=\"Scot\">build their own models and the company will give them some guidance that\u2019s some of the stuff we did it we\u2019re not going to go over and but you have to be careful because you don\u2019t want to make forward-looking statements so this is this weird dance you do of you.<\/span><br \/><span title=\"31:37 - 31:46\" data-start=\"00:31:37.202\" data-end=\"00:31:45.861\" data-spk=\"1\" data-label=\"Scot\">You try to get people excited by not saying anything about the future which is which is a little tricky so you know what I imagine instacart s\u2019\u00a0<\/span><span title=\"31:46 - 31:54\" data-start=\"00:31:45.843\" data-end=\"00:31:53.613\" data-spk=\"1\" data-label=\"Scot\">just reading the tea leaves again they talked a lot about how they don\u2019t really do much sales and marketing which I kind of read to say,\u00a0<\/span><span title=\"31:54 - 32:04\" data-start=\"00:31:53.655\" data-end=\"00:32:04.237\" data-spk=\"1\" data-label=\"Scot\">look we really hunkered down on our unique economic sand we\u2019ve got it dialed in right now and spoiler will get to adds a lot of a lot of that has come from this ad piece.<\/span><br \/><span title=\"32:04 - 32:06\" data-start=\"00:32:04.339\" data-end=\"00:32:06.081\" data-spk=\"1\" data-label=\"Scot\">And I think now.<\/span><\/p>\n<p><small>[32:07]<\/small>\u00a0<span title=\"32:07 - 32:17\" data-start=\"00:32:06.959\" data-end=\"00:32:17.126\" data-spk=\"1\" data-label=\"Scot\">Because investor and I was the bullish scenario is you know they\u2019re going to raise at least 400 million they\u2019ll probably raise a lot of money from this they could start doing some advertising and\u00a0<\/span><span title=\"32:17 - 32:19\" data-start=\"00:32:17.115\" data-end=\"00:32:19.434\" data-spk=\"1\" data-label=\"Scot\">you pick up some new customers that\u00a0<\/span><span title=\"32:19 - 32:31\" data-start=\"00:32:19.326\" data-end=\"00:32:31.277\" data-spk=\"1\" data-label=\"Scot\">again I\u2019m going to kind of hope they look at the cohorts those cohorts look like with what this in the here and they have at least the same unique anomic so if not better and I\u2019m going to look at this growth accelerating\u00a0<\/span><span title=\"32:31 - 32:38\" data-start=\"00:32:31.176\" data-end=\"00:32:38.284\" data-spk=\"1\" data-label=\"Scot\">wow what Wall Street loves their favorite favorite favorite kind of the top quadrant is accelerating Revenue growth\u00a0<\/span><span title=\"32:38 - 32:43\" data-start=\"00:32:38.194\" data-end=\"00:32:43.260\" data-spk=\"1\" data-label=\"Scot\">an accelerating profitability and you know I could see a scenario\u00a0<\/span><span title=\"32:43 - 32:58\" data-start=\"00:32:43.158\" data-end=\"00:32:57.717\" data-spk=\"1\" data-label=\"Scot\">the light has to go their way but I could see a scenario where that works here you know if they could if they could start spending some really careful sales and marketing dollars building the brand where they\u2019ve been kind of under the radar for the most part and then.<\/span><br \/><span title=\"32:58 - 33:07\" data-start=\"00:32:57.958\" data-end=\"00:33:06.749\" data-spk=\"1\" data-label=\"Scot\">That works those cohorts stick and then they can work on the economics because that\u2019s gonna bring more advertisers per order because the more average more orders and more.<\/span><br \/><span title=\"33:07 - 33:17\" data-start=\"00:33:06.924\" data-end=\"00:33:17.163\" data-spk=\"1\" data-label=\"Scot\">GTV is going to bring more cpgs in that want to advertise against that then you could argue accelerating Revenue growth accelerating profitable unit economics.<\/span><br \/><span title=\"33:17 - 33:24\" data-start=\"00:33:17.470\" data-end=\"00:33:23.977\" data-spk=\"1\" data-label=\"Scot\">So I think that\u2019s the bull case the bear case is they\u2019ve hit saturation they\u2019ve got all the stores.<\/span><br \/><span title=\"33:24 - 33:28\" data-start=\"00:33:24.368\" data-end=\"00:33:27.679\" data-spk=\"1\" data-label=\"Scot\">4% is anemic and nowhere to go but down.<\/span><br \/><span title=\"33:29 - 33:36\" data-start=\"00:33:28.659\" data-end=\"00:33:35.953\" data-spk=\"1\" data-label=\"Scot\">So that\u2019s the end of it is it is going to be interesting to see there\u2019s a little bit of A Tale of Two Cities in those possible outcomes.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[33:36]<\/small>\u00a0<span title=\"33:36 - 33:41\" data-start=\"00:33:36.200\" data-end=\"00:33:40.887\" data-spk=\"0\" data-label=\"Jason\">Yeah what else jumped out at you in the management discussion.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[33:43]<\/small>\u00a0<span title=\"33:43 - 33:54\" data-start=\"00:33:42.564\" data-end=\"00:33:54.287\" data-spk=\"1\" data-label=\"Scot\">They made a big point of talking about they have 7.7 million monthly active users which is a good number but they point out that in the u.s. there\u2019s 330 million\u00a0<\/span><span title=\"33:54 - 34:03\" data-start=\"00:33:54.101\" data-end=\"00:34:03.024\" data-spk=\"1\" data-label=\"Scot\">consumers or I guess population so they use that and this is kind of one of those hints I was talking about the basically said hey we\u2019re.<\/span><br \/><span title=\"34:03 - 34:15\" data-start=\"00:34:03.205\" data-end=\"00:34:14.730\" data-spk=\"1\" data-label=\"Scot\">We\u2019ve done good to get here but these are like the early adopters we still have a long way to go there\u2019s a lot of people you know I don\u2019t think they\u2019ll get all of them and I\u2019ll talk about that in a second but there\u2019s a lot more people that\u00a0<\/span><span title=\"34:15 - 34:23\" data-start=\"00:34:14.670\" data-end=\"00:34:23.220\" data-spk=\"1\" data-label=\"Scot\">you should be using our service that aren\u2019t is so they kind of paint that 7.7 million and say that\u2019s teeny tiny compared to where we should be.<\/span><br \/><span title=\"34:23 - 34:31\" data-start=\"00:34:23.311\" data-end=\"00:34:30.930\" data-spk=\"1\" data-label=\"Scot\">And then you know the other thing they talked about that I thought was interesting I wanted to get your opinion on is they talk about,\u00a0<\/span><span title=\"34:31 - 34:41\" data-start=\"00:34:30.961\" data-end=\"00:34:41.037\" data-spk=\"1\" data-label=\"Scot\">per user per month they get three hundred and Seventeen dollars and I was wondering I know you probably know this off the top of your head.<\/span><br \/><span title=\"34:41 - 34:47\" data-start=\"00:34:41.224\" data-end=\"00:34:46.956\" data-spk=\"1\" data-label=\"Scot\">What is if you look at the average US consumer and you probably look at the.<\/span><br \/><span title=\"34:47 - 35:00\" data-start=\"00:34:47.101\" data-end=\"00:34:59.599\" data-spk=\"1\" data-label=\"Scot\">Population of the convenience store that\u2019s like a kind of probably like that 100K and up household you know what is their monthly and is this like half of it a quarter what is your spidey sense tells you on that.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[35:00]<\/small>\u00a0<span title=\"35:00 - 35:04\" data-start=\"00:34:59.624\" data-end=\"00:35:03.962\" data-spk=\"0\" data-label=\"Jason\">Yeah so real rough numbers the average\u00a0<\/span><span title=\"35:04 - 35:16\" data-start=\"00:35:03.890\" data-end=\"00:35:16.208\" data-spk=\"0\" data-label=\"Jason\">American family and you know people shop for groceries in households versus people so it\u2019s almost better to talk in household so there\u2019s like 131 million households in the US and sin they\u2019ve got.<\/span><br \/><span title=\"35:17 - 35:29\" data-start=\"00:35:16.533\" data-end=\"00:35:29.308\" data-spk=\"0\" data-label=\"Jason\">Seven million of them as customers the average household shops for groceries 1.6 times a week and they spend a hundred dollars per visit\u00a0<\/span><span title=\"35:29 - 35:37\" data-start=\"00:35:29.267\" data-end=\"00:35:37.378\" data-spk=\"0\" data-label=\"Jason\">so you kind of you know rough that up and you get.<\/span><br \/><span title=\"35:38 - 35:46\" data-start=\"00:35:37.757\" data-end=\"00:35:45.725\" data-spk=\"0\" data-label=\"Jason\">Get what is that I\u2019ll have the intern do in turn do the math one point six times.<\/span><br \/><span title=\"35:46 - 35:49\" data-start=\"00:35:46.308\" data-end=\"00:35:48.814\" data-spk=\"0\" data-label=\"Jason\">100 times,\u00a0<\/span><span title=\"35:49 - 36:03\" data-start=\"00:35:48.874\" data-end=\"00:36:03.302\" data-spk=\"0\" data-label=\"Jason\">4.5 is 720 total grocery spin which I don\u2019t have the census numbers in front of me but but that passes the smell test that so.<\/span><br \/><span title=\"36:03 - 36:12\" data-start=\"00:36:03.494\" data-end=\"00:36:11.606\" data-spk=\"0\" data-label=\"Jason\">Households are spending six seven hundred bucks a month and instacart saying that they\u2019re getting less than half of that.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[36:12]<\/small>\u00a0<span title=\"36:12 - 36:16\" data-start=\"00:36:11.679\" data-end=\"00:36:15.855\" data-spk=\"1\" data-label=\"Scot\">Yeah and I saw some people speculate on this that,\u00a0<\/span><span title=\"36:16 - 36:27\" data-start=\"00:36:15.927\" data-end=\"00:36:26.797\" data-spk=\"1\" data-label=\"Scot\">what their inferring is Davin they have an average order of 110 so this is like 2.6 instacart some month instacart orders per user per month\u00a0<\/span><span title=\"36:27 - 36:33\" data-start=\"00:36:26.659\" data-end=\"00:36:33.179\" data-spk=\"1\" data-label=\"Scot\">that\u2019s another kind of interesting metric and then people are speculating in the saying the pattern is probably\u00a0<\/span><span title=\"36:33 - 36:38\" data-start=\"00:36:33.053\" data-end=\"00:36:37.830\" data-spk=\"1\" data-label=\"Scot\">people are doing a big shop once a month and they\u2019re kind of going and getting you know,\u00a0<\/span><span title=\"36:38 - 36:52\" data-start=\"00:36:37.860\" data-end=\"00:36:51.699\" data-spk=\"1\" data-label=\"Scot\">a lot of like maybe canned goods and things like that and then they supplement it with two or three instacart has to bring maybe a refresh of the the replenishable is like the cheese the milk the veggies and the fruits kind of thing.<\/span><br \/><span title=\"36:52 - 37:04\" data-start=\"00:36:51.909\" data-end=\"00:37:03.753\" data-spk=\"1\" data-label=\"Scot\">Again this is everyone just kind of like taking data and kind of going out for data point so the cone of uncertainty is pretty big out there but it kind of passed my sniff test that\u2019s how we\u2019ve used it before,\u00a0<\/span><span title=\"37:04 - 37:12\" data-start=\"00:37:03.795\" data-end=\"00:37:11.577\" data-spk=\"1\" data-label=\"Scot\">at our house with exception of wizard a lot at work to fill our snack area at work and we\u2019re probably like we\u2019re probably like\u00a0<\/span><span title=\"37:12 - 37:18\" data-start=\"00:37:11.565\" data-end=\"00:37:17.874\" data-spk=\"1\" data-label=\"Scot\">top one quartile of this whole thing that\u2019s the number of snacks we get from Instagram.<\/span><br \/><span title=\"37:19 - 37:26\" data-start=\"00:37:19.467\" data-end=\"00:37:25.614\" data-spk=\"1\" data-label=\"Scot\">There\u2019s a deep does that that analysis of the one big shop yourself and then supplement does that.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[37:26]<\/small>\u00a0<span title=\"37:26 - 37:35\" data-start=\"00:37:25.638\" data-end=\"00:37:34.856\" data-spk=\"0\" data-label=\"Jason\">No exact yeah I mean I think the Grocer\u2019s talk and I hesitate to bring this up because I don\u2019t think I remember I\u2019ll for off the top my head but there\u2019s like four\u00a0<\/span><span title=\"37:35 - 37:43\" data-start=\"00:37:34.778\" data-end=\"00:37:42.613\" data-spk=\"0\" data-label=\"Jason\">typical types of shopping missions right so there is that like Pantry stocking shop there\u2019s like a weekly shop there\u2019s a.<\/span><br \/><span title=\"37:43 - 37:52\" data-start=\"00:37:42.890\" data-end=\"00:37:52.390\" data-spk=\"0\" data-label=\"Jason\">Occasion Bay shop where your your it\u2019s date night or it\u2019s Christmas or whatever and you make a special shop and then there\u2019s those,\u00a0<\/span><span title=\"37:52 - 38:06\" data-start=\"00:37:52.433\" data-end=\"00:38:05.568\" data-spk=\"0\" data-label=\"Jason\">top off shops and I think it\u2019s generally agreed like there\u2019s not a big cohort of consumers that have just said I\u2019m never using a grocery store again then I\u2019m exclusive we gonna,\u00a0<\/span><span title=\"38:06 - 38:07\" data-start=\"00:38:05.575\" data-end=\"00:38:07.359\" data-spk=\"0\" data-label=\"Jason\">I have all of my\u00a0<\/span><span title=\"38:07 - 38:17\" data-start=\"00:38:07.353\" data-end=\"00:38:17.298\" data-spk=\"0\" data-label=\"Jason\">my calories show up at my doorstep so digital grocery ends up being one of the tools in the family\u2019s tool kit for,\u00a0<\/span><span title=\"38:17 - 38:22\" data-start=\"00:38:17.328\" data-end=\"00:38:21.877\" data-spk=\"0\" data-label=\"Jason\">procuring their their calories and so it makes.<\/span><br \/><span title=\"38:22 - 38:31\" data-start=\"00:38:22.015\" data-end=\"00:38:30.782\" data-spk=\"0\" data-label=\"Jason\">Total sense that they would have a share that one of the ways they could grow is to increase that share presumably by.<\/span><br \/><span title=\"38:31 - 38:34\" data-start=\"00:38:30.903\" data-end=\"00:38:34.376\" data-spk=\"0\" data-label=\"Jason\">Being the best choice for more of those different kinds of missions.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[38:34]<\/small>\u00a0<span title=\"38:34 - 38:46\" data-start=\"00:38:34.376\" data-end=\"00:38:46.466\" data-spk=\"1\" data-label=\"Scot\">Yeah and then the md&amp;a they talk a lot about how they have these new offerings where you can get a weekly Monday thing and they\u2019re definitely poking around at this experimenting on how to grow the sand\u00a0<\/span><span title=\"38:46 - 38:51\" data-start=\"00:38:46.454\" data-end=\"00:38:50.702\" data-spk=\"1\" data-label=\"Scot\">again they\u2019re kind of signaling we think we\u2019ve got some room to go on this we can get that.<\/span><\/p>\n<p><small>[38:51]<\/small>\u00a0<span title=\"38:51 - 39:00\" data-start=\"00:38:50.991\" data-end=\"00:39:00.118\" data-spk=\"1\" data-label=\"Scot\">Bridge order up and we can get the ma use way up the second thing I noticed was you know they use this they use this phrase,\u00a0<\/span><span title=\"39:00 - 39:10\" data-start=\"00:39:00.143\" data-end=\"00:39:09.985\" data-spk=\"1\" data-label=\"Scot\">several times you can tell it\u2019s kind of like must be tied to company values and they talk about we believe people want selection quality value and convenience\u00a0<\/span><span title=\"39:10 - 39:15\" data-start=\"00:39:09.914\" data-end=\"00:39:14.666\" data-spk=\"1\" data-label=\"Scot\">if that sounds familiar to you the this is infamously\u00a0<\/span><span title=\"39:15 - 39:27\" data-start=\"00:39:14.523\" data-end=\"00:39:27.448\" data-spk=\"1\" data-label=\"Scot\">brought up in the Amazon Jeff Bezos first shareholder letter in 1997 where he talks about the mark you know what Amazon believes and they believe that a multi-decade trend is people will not get tired of\u00a0<\/span><span title=\"39:27 - 39:33\" data-start=\"00:39:27.316\" data-end=\"00:39:32.585\" data-spk=\"1\" data-label=\"Scot\">selection quality value and when value he uses kind of free shipping like versus\u00a0<\/span><span title=\"39:33 - 39:38\" data-start=\"00:39:32.550\" data-end=\"00:39:37.777\" data-spk=\"1\" data-label=\"Scot\">product value is pretty specific on it and then convenience and then what got me thinking about this is.<\/span><\/p>\n<p><small>[39:38]<\/small>\u00a0<span title=\"39:38 - 39:45\" data-start=\"00:39:38.030\" data-end=\"00:39:45.343\" data-spk=\"1\" data-label=\"Scot\">Value inconvenience her you know they\u2019re often in conflict and this is the whole point of we\u2019ve had,\u00a0<\/span><span title=\"39:45 - 39:57\" data-start=\"00:39:45.349\" data-end=\"00:39:56.844\" data-spk=\"1\" data-label=\"Scot\">Casey on the show from the Lloyd there bifurcation kind of model which shows this was this I think a lot about this because this is the whole one of the whole reasons I started spiffy and we decided early on\u00a0<\/span><span title=\"39:57 - 40:04\" data-start=\"00:39:56.748\" data-end=\"00:40:04.163\" data-spk=\"1\" data-label=\"Scot\">if we\u2019re going to be convenient we can\u2019t be the cheapest and I don\u2019t think people look at instacart as the cheapest you know whenever we use it it\u2019s kind of like,\u00a0<\/span><span title=\"40:04 - 40:12\" data-start=\"00:40:04.206\" data-end=\"00:40:11.548\" data-spk=\"1\" data-label=\"Scot\">holy cow this is this is a pretty expensive treat in you know I really kind of need to be able to justify this to myself that I can\u2019t just\u00a0<\/span><span title=\"40:11 - 40:23\" data-start=\"00:40:11.453\" data-end=\"00:40:22.647\" data-spk=\"1\" data-label=\"Scot\">pop over the grocery store and do this myself it needs to be yeah some some reason I\u2019m going to miss a kid event or something that I\u2019m getting a really good bang for the buck here\u00a0<\/span><span title=\"40:23 - 40:31\" data-start=\"00:40:22.557\" data-end=\"00:40:31.144\" data-spk=\"1\" data-label=\"Scot\">so I thought that was interesting that at some point I wonder do they value part kind of struggle with you know how.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[40:31]<\/small>\u00a0<span title=\"40:31 - 40:34\" data-start=\"00:40:30.844\" data-end=\"00:40:33.686\" data-spk=\"0\" data-label=\"Jason\">I think they have to have a.<\/span><br \/><span title=\"40:34 - 40:44\" data-start=\"00:40:33.884\" data-end=\"00:40:44.178\" data-spk=\"0\" data-label=\"Jason\">A more liberal definition of value because I think you\u2019re exactly right right and obviously you know value means different things to different people like they disclosed later in the S1 that they\u00a0<\/span><span title=\"40:44 - 40:48\" data-start=\"00:40:44.076\" data-end=\"00:40:47.747\" data-spk=\"0\" data-label=\"Jason\">not surprisingly that they skew disproportionately to\u00a0<\/span><span title=\"40:48 - 40:57\" data-start=\"00:40:47.663\" data-end=\"00:40:56.736\" data-spk=\"0\" data-label=\"Jason\">households that make over 100,000 a year compared to a traditional retail and particularly a traditional grocer like give\u00a0<\/span><span title=\"40:57 - 41:08\" data-start=\"00:40:56.587\" data-end=\"00:41:08.394\" data-spk=\"0\" data-label=\"Jason\">I\u2019ve no idea what it looked like when they actually did it but when Kroger went public or certainly when Walmart went public they would have talked about the top of their tree that we think the consumer really values price\u00a0<\/span><span title=\"41:08 - 41:13\" data-start=\"00:41:08.322\" data-end=\"00:41:13.400\" data-spk=\"0\" data-label=\"Jason\">and and Walmart probably said price not value and you know\u00a0<\/span><span title=\"41:13 - 41:22\" data-start=\"00:41:13.304\" data-end=\"00:41:22.341\" data-spk=\"0\" data-label=\"Jason\">they built a business around very aggressively maintaining those low prices because they thought that was the beginning of their flywheel and and\u00a0<\/span><span title=\"41:22 - 41:34\" data-start=\"00:41:22.221\" data-end=\"00:41:33.578\" data-spk=\"0\" data-label=\"Jason\">you know Amazon talked about value but they when they said value a lot of what they meant was and we\u2019re going to you know have the very competitive or the lowest price on a lot of these goods and,\u00a0<\/span><span title=\"41:34 - 41:43\" data-start=\"00:41:33.585\" data-end=\"00:41:43.217\" data-spk=\"0\" data-label=\"Jason\">the the business model of instacart makes it unlikely that that can be their positioning so they have to kind of,\u00a0<\/span><span title=\"41:43 - 41:50\" data-start=\"00:41:43.241\" data-end=\"00:41:49.749\" data-spk=\"0\" data-label=\"Jason\">find a a valid but alternative definition of value to hang their hat on.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[41:50]<\/small>\u00a0<span title=\"41:50 - 41:59\" data-start=\"00:41:49.815\" data-end=\"00:41:58.702\" data-spk=\"1\" data-label=\"Scot\">Yeah and I thought was interesting they put convenience a lot you know last you may say oh you\u2019re reading too much into it but you know\u00a0<\/span><span title=\"41:59 - 42:12\" data-start=\"00:41:58.690\" data-end=\"00:42:11.610\" data-spk=\"1\" data-label=\"Scot\">I\u2019ve been in rooms you spend so much time on every word there\u2019s a purpose to this order of selection quality value and convenience and and they mentioned this exact phrase like several times so this is a this seems to be an\u00a0<\/span><span title=\"42:11 - 42:21\" data-start=\"00:42:11.478\" data-end=\"00:42:21.398\" data-spk=\"1\" data-label=\"Scot\">yeah a pretty important phrase in their their world to I just thought that was I want to get your take on you know at some point they may cross this road where they have to\u00a0<\/span><span title=\"42:21 - 42:35\" data-start=\"00:42:21.267\" data-end=\"00:42:35.315\" data-spk=\"1\" data-label=\"Scot\">pick a lane and it\u2019ll be if it ain\u2019t going to be the value late you know I don\u2019t see a path there but you know maybe they think they can and you know they also talked about selling to the grocer some software so maybe that\u2019s kind of like how they\u2019re squeaking that in I don\u2019t know.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[42:36]<\/small>\u00a0<span title=\"42:36 - 42:50\" data-start=\"00:42:36.241\" data-end=\"00:42:50.470\" data-spk=\"0\" data-label=\"Jason\">Yeah yeah and there\u2019s I think we\u2019ll talk about this and in our final conclusion but the there\u2019s multiple ways you could see this going over time and depending on which path it took like\u00a0<\/span><span title=\"42:50 - 42:53\" data-start=\"00:42:50.435\" data-end=\"00:42:52.712\" data-spk=\"0\" data-label=\"Jason\">value could mean something different.<\/span><br \/><span title=\"42:54 - 42:55\" data-start=\"00:42:53.830\" data-end=\"00:42:55.307\" data-spk=\"0\" data-label=\"Jason\">So what will come back to that.<\/span><br \/><span title=\"42:56 - 43:07\" data-start=\"00:42:55.524\" data-end=\"00:43:07.121\" data-spk=\"0\" data-label=\"Jason\">I heard you like dissected all of the the disclose data and put together unit economic model for for instacart.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[43:07]<\/small>\u00a0<span title=\"43:07 - 43:19\" data-start=\"00:43:07.050\" data-end=\"00:43:19.127\" data-spk=\"1\" data-label=\"Scot\">Yeah so it starts at the top so the GTV per order so every order that comes in they get the GTV as $110 and then there here\u2019s how they slice the onion so\u00a0<\/span><span title=\"43:19 - 43:26\" data-start=\"00:43:18.936\" data-end=\"00:43:25.605\" data-spk=\"1\" data-label=\"Scot\">the biggest chunk goes to the grocer for the groceries and they get 83 percent which is $91\u00a0<\/span><span title=\"43:25 - 43:36\" data-start=\"00:43:25.401\" data-end=\"00:43:36.019\" data-spk=\"1\" data-label=\"Scot\">so right off the top we\u2019re left with $19 but now the grocer they have to go make all their money so instacart is that\u2019s what you would basically get\u00a0<\/span><span title=\"43:36 - 43:45\" data-start=\"00:43:35.899\" data-end=\"00:43:44.804\" data-spk=\"1\" data-label=\"Scot\">I think if you and I went to the grocery store you know maybe they\u2019re getting a little bit of a discount but they\u2019re they\u2019re taking that $91 and they\u2019re adding $19 on top of it\u00a0<\/span><span title=\"43:45 - 43:50\" data-start=\"00:43:44.624\" data-end=\"00:43:49.587\" data-spk=\"1\" data-label=\"Scot\">and this is all X tip there\u2019s a there\u2019s there is a delivery fee and what not\u00a0<\/span><span title=\"43:49 - 43:58\" data-start=\"00:43:49.402\" data-end=\"00:43:57.892\" data-spk=\"1\" data-label=\"Scot\">so then the Shopper gets 8.2% or nine dollars in order and that\u2019s in that delivery fee and then they get the tips.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[43:58]<\/small>\u00a0<span title=\"43:58 - 44:06\" data-start=\"00:43:57.592\" data-end=\"00:44:05.668\" data-spk=\"0\" data-label=\"Jason\">Clarification on shopper because like in most contact Shopper would mean the consumer that\u2019s buying the goods The Shopper in this case is\u00a0<\/span><span title=\"44:06 - 44:14\" data-start=\"00:44:05.596\" data-end=\"00:44:14.297\" data-spk=\"0\" data-label=\"Jason\">is a instacart gig worker that goes to the store and gets Aggregates the order for the customer.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[44:14]<\/small>\u00a0<span title=\"44:14 - 44:24\" data-start=\"00:44:14.231\" data-end=\"00:44:24.061\" data-spk=\"1\" data-label=\"Scot\">Exactly the gig worker is the Shopper so they get nine dollars and they get 100% of the tip so whenever you you know whenever you what what they don\u2019t say\u00a0<\/span><span title=\"44:24 - 44:34\" data-start=\"00:44:24.026\" data-end=\"00:44:34.445\" data-spk=\"1\" data-label=\"Scot\">some of these gay places in this bothers me because we fell out on this they say the gig worker gets 100% but then they take a transaction fee of 3%,\u00a0<\/span><span title=\"44:34 - 44:44\" data-start=\"00:44:34.446\" data-end=\"00:44:43.933\" data-spk=\"1\" data-label=\"Scot\">now I can\u2019t find they say 100% I can\u2019t see any little asterisks that says there\u2019s going to skim 3% or something so.<\/span><\/p>\n<p><small>[44:44]<\/small>\u00a0<span title=\"44:44 - 44:59\" data-start=\"00:44:44.403\" data-end=\"00:44:58.566\" data-spk=\"1\" data-label=\"Scot\">So to the hopefully they\u2019re being super up front and they the gig worker does get 100% of the tips but the tips aren\u2019t in the economic the kind of sit over on the side to go to kind of bypass instacart all together and they go straight to the shopper.<\/span><br \/><span title=\"44:59 - 45:07\" data-start=\"00:44:58.764\" data-end=\"00:45:06.672\" data-spk=\"1\" data-label=\"Scot\">Who also gets nine dollars from instacart so if you gave a 20 dollar tip the the Shoppers going to get 20 plus 9 or 22,\u00a0<\/span><span title=\"45:07 - 45:18\" data-start=\"00:45:06.678\" data-end=\"00:45:17.728\" data-spk=\"1\" data-label=\"Scot\">then at this point we are finally at instacart Revenue which is ten dollars and that\u2019s into pieces seven dollars is the transaction revenue and three is ads.<\/span><br \/><span title=\"45:18 - 45:23\" data-start=\"00:45:17.921\" data-end=\"00:45:23.389\" data-spk=\"1\" data-label=\"Scot\">So almost half their margin you know so 30% I guess yeah.<\/span><br \/><span title=\"45:24 - 45:31\" data-start=\"00:45:23.612\" data-end=\"00:45:31.027\" data-spk=\"1\" data-label=\"Scot\">I say half because the line is going so fast it will become half probably by 2024 you know half the.<\/span><br \/><span title=\"45:31 - 45:42\" data-start=\"00:45:31.171\" data-end=\"00:45:41.915\" data-spk=\"1\" data-label=\"Scot\">Profit the margin the revenue that they get and probably disproportionate part of margin is from the ad piece which we\u2019re going to talk about in detail so that is.<\/span><br \/><span title=\"45:42 - 45:47\" data-start=\"00:45:42.096\" data-end=\"00:45:47.383\" data-spk=\"1\" data-label=\"Scot\">That\u2019s pretty important to this whole enchilada and until they figure that out this didn\u2019t really work I do.<\/span><\/p>\n<p><small>[45:48]<\/small>\u00a0<span title=\"45:48 - 45:57\" data-start=\"00:45:48.117\" data-end=\"00:45:57.046\" data-spk=\"1\" data-label=\"Scot\">So they get so 110 dollar order $91 goes the grocer that leaves us with 19 Shopper gets nine we\u2019re left with 10 7 of that,\u00a0<\/span><span title=\"45:57 - 46:04\" data-start=\"00:45:57.130\" data-end=\"00:46:03.770\" data-spk=\"1\" data-label=\"Scot\">is the transaction Revenue three is ADS then their costs come out they have three dollars of cost per order.<\/span><br \/><span title=\"46:04 - 46:13\" data-start=\"00:46:03.885\" data-end=\"00:46:13.186\" data-spk=\"1\" data-label=\"Scot\">And this is this is things like you know their entire some allocation of all their website hosting the engineering team developed the app.<\/span><br \/><span title=\"46:14 - 46:20\" data-start=\"00:46:13.541\" data-end=\"00:46:20.289\" data-spk=\"1\" data-label=\"Scot\">I don\u2019t know if they would put sales and marketing in there and they weren\u2019t very specific about what they do and don\u2019t put in cogs so that was a question mark.<\/span><br \/><span title=\"46:20 - 46:24\" data-start=\"00:46:20.494\" data-end=\"00:46:24.045\" data-spk=\"1\" data-label=\"Scot\">And they\u2019re left with seven dollars of gross profit for that order.<\/span><br \/><span title=\"46:25 - 46:34\" data-start=\"00:46:24.574\" data-end=\"00:46:34.050\" data-spk=\"1\" data-label=\"Scot\">My bet is marketing is not in there and they kind of take that up later but again the didn\u2019t really.<\/span><br \/><span title=\"46:35 - 46:44\" data-start=\"00:46:34.567\" data-end=\"00:46:44.301\" data-spk=\"1\" data-label=\"Scot\">Disclose that I saw what all was and not in Cox so basically that 110 boils down to seven dollars a profit from them and if we looked at it you know.<\/span><br \/><span title=\"46:46 - 46:59\" data-start=\"00:46:45.672\" data-end=\"00:46:58.609\" data-spk=\"1\" data-label=\"Scot\">I bet that three of that seven is basically from the ads and you know because there\u2019s almost no cost to serve an ad and so so I thought that was pretty interesting that like you know around half of the Prophet basically is from the ad system.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[47:00]<\/small>\u00a0<span title=\"47:00 - 47:07\" data-start=\"00:46:59.745\" data-end=\"00:47:07.051\" data-spk=\"0\" data-label=\"Jason\">Yeah I think I think it\u2019s for sure interesting and like you know two possibilities there there there,\u00a0<\/span><span title=\"47:07 - 47:16\" data-start=\"00:47:07.070\" data-end=\"00:47:16.456\" data-spk=\"0\" data-label=\"Jason\">average value of an order is 110 bucks traditional brick-and-mortar grocer is a hundred bucks and so one question like\u00a0<\/span><span title=\"47:16 - 47:24\" data-start=\"00:47:16.372\" data-end=\"00:47:23.703\" data-spk=\"0\" data-label=\"Jason\">did instacart wasn\u2019t totally clear I mean they tried to take credit for having a higher order value but it wasn\u2019t clear like do we think.<\/span><br \/><span title=\"47:24 - 47:29\" data-start=\"00:47:23.859\" data-end=\"00:47:29.093\" data-spk=\"0\" data-label=\"Jason\">There\u2019s something unique about our experience that causes people to spend more or.<\/span><br \/><span title=\"47:30 - 47:41\" data-start=\"00:47:29.808\" data-end=\"00:47:41.429\" data-spk=\"0\" data-label=\"Jason\">Is our service just more expensive and so therefore you know if I got the same 60 items from from Walmart it would cost me $100 but if I got it from instacart Cassandra and ten dollars.<\/span><br \/><span title=\"47:42 - 47:51\" data-start=\"00:47:41.730\" data-end=\"00:47:51.044\" data-spk=\"0\" data-label=\"Jason\">But if it\u2019s the latter and I\u2019m sure the real answer somewhere in between but but if it\u2019s the latter then you go you know all of the,\u00a0<\/span><span title=\"47:51 - 47:56\" data-start=\"00:47:51.110\" data-end=\"00:47:56.302\" data-spk=\"0\" data-label=\"Jason\">The Profit that instacart is potentially taking is kind of from the.<\/span><br \/><span title=\"47:57 - 48:04\" data-start=\"00:47:56.573\" data-end=\"00:48:03.915\" data-spk=\"0\" data-label=\"Jason\">The convenient spread where they\u2019re you know getting consumers to pay more for the extra convenience of this grocery delivery.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[48:08]<\/small>\u00a0<span title=\"48:08 - 48:12\" data-start=\"00:48:07.888\" data-end=\"00:48:12.118\" data-spk=\"1\" data-label=\"Scot\">So that was the unique nanak\u2019s what did you discover from the cohorts.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[48:12]<\/small>\u00a0<span title=\"48:12 - 48:25\" data-start=\"00:48:11.884\" data-end=\"00:48:25.199\" data-spk=\"0\" data-label=\"Jason\">Yeah well I think we both we both noticed that they had a pretty detailed cohort analysis in the s-1 and by cohort analysis what we mean is they.<\/span><br \/><span title=\"48:25 - 48:30\" data-start=\"00:48:25.350\" data-end=\"00:48:30.409\" data-spk=\"0\" data-label=\"Jason\">They break down all the revenue they get from every.<\/span><br \/><span title=\"48:31 - 48:40\" data-start=\"00:48:30.548\" data-end=\"00:48:39.507\" data-spk=\"0\" data-label=\"Jason\">Group of customers on the first year they acquire those customers and then they track the spending for that group of customers in each,\u00a0<\/span><span title=\"48:40 - 48:47\" data-start=\"00:48:39.519\" data-end=\"00:48:47.313\" data-spk=\"0\" data-label=\"Jason\">subsequent year and so you have a cohort that you acquired in 2017 you have a cohort you acquired in 2018,\u00a0<\/span><span title=\"48:47 - 48:52\" data-start=\"00:48:47.337\" data-end=\"00:48:51.910\" data-spk=\"0\" data-label=\"Jason\">so on and so forth through this 20:22 cohort and there\u2019s.<\/span><br \/><span title=\"48:52 - 49:00\" data-start=\"00:48:52.108\" data-end=\"00:49:00.292\" data-spk=\"0\" data-label=\"Jason\">Other dimensions you could do Court analysis on but this this tenure cohort is most common and\u00a0<\/span><span title=\"49:00 - 49:08\" data-start=\"00:49:00.227\" data-end=\"00:49:08.302\" data-spk=\"0\" data-label=\"Jason\">loyal listeners of the show will know we\u2019ve certainly talked about it before no most notably with a guest Professor Dan McCarthy.<\/span><br \/><span title=\"49:08 - 49:13\" data-start=\"00:49:08.477\" data-end=\"00:49:13.188\" data-spk=\"0\" data-label=\"Jason\">From Emory University who spends a lot of time.<\/span><\/p>\n<p><small>[49:13]<\/small>\u00a0<span title=\"49:13 - 49:25\" data-start=\"00:49:13.423\" data-end=\"00:49:25.176\" data-spk=\"0\" data-label=\"Jason\">Talking about and thinking about cohort analysis so I my first thought when I saw this cohort analysis is I\u2019ll bet you Dan McCarthy\u2019s really happy right now and is probably.<\/span><br \/><span title=\"49:25 - 49:37\" data-start=\"00:49:25.303\" data-end=\"00:49:36.779\" data-spk=\"0\" data-label=\"Jason\">Deep deep into these numbers and he has a phrase that he calls a super annuities which is for the circumstances.<\/span><br \/><span title=\"49:37 - 49:44\" data-start=\"00:49:36.864\" data-end=\"00:49:44.123\" data-spk=\"0\" data-label=\"Jason\">The older cohorts get more valuable over time and keep contributing more Revenue to your business which is,\u00a0<\/span><span title=\"49:44 - 49:51\" data-start=\"00:49:44.201\" data-end=\"00:49:50.925\" data-spk=\"0\" data-label=\"Jason\">you know that if you think about it that\u2019s that\u2019s the ideal state right you want those kind of six-year-old cohorts to be.<\/span><\/p>\n<p><small>[49:51]<\/small>\u00a0<span title=\"49:51 - 49:58\" data-start=\"00:49:51.274\" data-end=\"00:49:58.082\" data-spk=\"0\" data-label=\"Jason\">Growing and be your most valuable and if they\u2019re you know significantly tailing off over time then like\u00a0<\/span><span title=\"49:58 - 50:08\" data-start=\"00:49:57.956\" data-end=\"00:50:08.333\" data-spk=\"0\" data-label=\"Jason\">you know you start to question the core value proposition of the business like maybe customers get fatigued with your business or decide it\u2019s not a good value in the long run or something else so\u00a0<\/span><span title=\"50:08 - 50:16\" data-start=\"00:50:08.304\" data-end=\"00:50:16.289\" data-spk=\"0\" data-label=\"Jason\">um the the big takeaway for me of the cohort analysis is the cohorts grow over time\u00a0<\/span><span title=\"50:16 - 50:28\" data-start=\"00:50:16.133\" data-end=\"00:50:28.145\" data-spk=\"0\" data-label=\"Jason\">the if you look at like the year one value of this cohort it averages $226 and then it goes up 33 percent in year two to three hundred dollars and then up 16%,\u00a0<\/span><span title=\"50:28 - 50:37\" data-start=\"00:50:28.224\" data-end=\"00:50:37.044\" data-spk=\"0\" data-label=\"Jason\">to 350 dollars in year three and then another up another 16% to 4:00 in your for and then up 10% $445\u00a0<\/span><span title=\"50:37 - 50:45\" data-start=\"00:50:36.931\" data-end=\"00:50:45.151\" data-spk=\"0\" data-label=\"Jason\">in year 5 and up another 8% to 480 dollars in year 6 and so like fundamentally.<\/span><br \/><span title=\"50:45 - 50:52\" data-start=\"00:50:45.253\" data-end=\"00:50:52.440\" data-spk=\"0\" data-label=\"Jason\">That is a very good picture of.<\/span><br \/><span title=\"50:53 - 51:00\" data-start=\"00:50:52.560\" data-end=\"00:50:59.759\" data-spk=\"0\" data-label=\"Jason\">The value of the cohorts and I\u2019m certain why they chose to include the cohort analysis in there as one because I don\u2019t believe there\u2019s any.<\/span><br \/><span title=\"51:00 - 51:11\" data-start=\"00:51:00.042\" data-end=\"00:51:10.863\" data-spk=\"0\" data-label=\"Jason\">Any filing requirement to do that and certainly lots of companies don\u2019t include any cohort cohort analysis but then my kind of secondary take is.<\/span><\/p>\n<p><small>[51:12]<\/small>\u00a0<span title=\"51:12 - 51:20\" data-start=\"00:51:11.525\" data-end=\"00:51:20.214\" data-spk=\"0\" data-label=\"Jason\">You know not every year is the same and so some of those cohorts like started before Cove it and then they\u2019re their behavior,\u00a0<\/span><span title=\"51:20 - 51:35\" data-start=\"00:51:20.250\" data-end=\"00:51:34.846\" data-spk=\"0\" data-label=\"Jason\">was slightly impacted by their maturity but also impacted by covet and some of these cohorts started after Cove ID and so one of the things you would look for in that cohort analysis is did these guys just get a big spike from Cova da,\u00a0<\/span><span title=\"51:35 - 51:45\" data-start=\"00:51:34.876\" data-end=\"00:51:44.947\" data-spk=\"0\" data-label=\"Jason\">when people are afraid to go to grocery stores and you know has that worn off right and that\u2019s kind of a comment common narrative out there like I argue.<\/span><\/p>\n<p><small>[51:45]<\/small>\u00a0<span title=\"51:45 - 51:52\" data-start=\"00:51:45.218\" data-end=\"00:51:51.731\" data-spk=\"0\" data-label=\"Jason\">It\u2019s mostly misunderstood when people give that narrative about digital but it\u2019s.<\/span><br \/><span title=\"51:52 - 51:57\" data-start=\"00:51:51.924\" data-end=\"00:51:56.580\" data-spk=\"0\" data-label=\"Jason\">It\u2019s even more likely that is misunderstood if you have that narrative and grocery because grocery\u00a0<\/span><span title=\"51:56 - 52:07\" data-start=\"00:51:56.455\" data-end=\"00:52:06.952\" data-spk=\"0\" data-label=\"Jason\">appears like on the surface to be the one category where hey we\u2019re at three percent e-commerce penetration before covet and now we\u2019re 12% e-commerce penetration and so this,\u00a0<\/span><span title=\"52:07 - 52:09\" data-start=\"00:52:06.953\" data-end=\"00:52:09.031\" data-spk=\"0\" data-label=\"Jason\">these cohort analysis if\u00a0<\/span><span title=\"52:09 - 52:24\" data-start=\"00:52:08.990\" data-end=\"00:52:23.850\" data-spk=\"0\" data-label=\"Jason\">if there was a spike that dip back down you would expect to see some of the later cohorts underperforming versus the the precoded cohorts and we don\u2019t see that right that like all the cohorts grow and they grow over time\u00a0<\/span><span title=\"52:24 - 52:32\" data-start=\"00:52:23.790\" data-end=\"00:52:32.358\" data-spk=\"0\" data-label=\"Jason\">the rate of growth slows down over time which is like I think pretty pretty typical and not surprising\u00a0<\/span><span title=\"52:32 - 52:46\" data-start=\"00:52:32.209\" data-end=\"00:52:45.596\" data-spk=\"0\" data-label=\"Jason\">um so all that was super favorable the one thing and one will have to have Dan on the show but the one thing that I think wasn\u2019t in here that you\u2019d really want to understand how valuable the\u00a0<\/span><span title=\"52:45 - 52:53\" data-start=\"00:52:45.477\" data-end=\"00:52:53.090\" data-spk=\"0\" data-label=\"Jason\">customer bases and and again guys like Dan kind of pioneered this idea of how you value a company based on their customer base.<\/span><\/p>\n<p><small>[52:53]<\/small>\u00a0<span title=\"52:53 - 53:02\" data-start=\"00:52:53.319\" data-end=\"00:53:02.031\" data-spk=\"0\" data-label=\"Jason\">And kind of set the price based on on this type of data but I think they would also want to see some churn data and understand.<\/span><br \/><span title=\"53:02 - 53:14\" data-start=\"00:53:02.176\" data-end=\"00:53:14.362\" data-spk=\"0\" data-label=\"Jason\">How many people are each in each of these cohorts and whether there\u2019s the same people or lots of defectors and new people coming and all those sorts of things and none of that was was disclosed and assess.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[53:22]<\/small>\u00a0<span title=\"53:22 - 53:31\" data-start=\"00:53:22.342\" data-end=\"00:53:30.779\" data-spk=\"1\" data-label=\"Scot\">Yeah you\u2019re right the I think they\u2019re making the argument that the swamps turn but because they don\u2019t disclose it you kind of.<\/span><br \/><span title=\"53:31 - 53:35\" data-start=\"00:53:31.176\" data-end=\"00:53:35.364\" data-spk=\"1\" data-label=\"Scot\">You have to trust him and he would he would want that data because you know the whole\u00a0<\/span><span title=\"53:35 - 53:48\" data-start=\"00:53:35.226\" data-end=\"00:53:47.652\" data-spk=\"1\" data-label=\"Scot\">Begin Again the the bull case here is all right if you got super annuities than spending ad dollars to bring super annuities in this smart right because everyone you bring in the door is going to follow this cohort and start of it\u00a0<\/span><span title=\"53:47 - 54:00\" data-start=\"00:53:47.460\" data-end=\"00:53:59.574\" data-spk=\"1\" data-label=\"Scot\">you know you and I looking at a table that the says you\u2019re one they start at 2:26 and then by year 60 at 500 bucks so they they double over their life cycle in their GTV so\u00a0<\/span><span title=\"53:59 - 54:07\" data-start=\"00:53:59.442\" data-end=\"00:54:06.743\" data-spk=\"1\" data-label=\"Scot\">over six years so if you know if you can go buy them for a hundred bucks a pop then you would just go and,\u00a0<\/span><span title=\"54:07 - 54:14\" data-start=\"00:54:06.749\" data-end=\"00:54:14.140\" data-spk=\"1\" data-label=\"Scot\">and spend all that money in it should be we have a super annuity on one side you can spend a lot of money acquiring customers on the other.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[54:15]<\/small>\u00a0<span title=\"54:15 - 54:17\" data-start=\"00:54:14.597\" data-end=\"00:54:16.688\" data-spk=\"0\" data-label=\"Jason\">For sure true what.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[54:17]<\/small>\u00a0<span title=\"54:17 - 54:19\" data-start=\"00:54:16.803\" data-end=\"00:54:19.050\" data-spk=\"1\" data-label=\"Scot\">You turn there\u2019s something that they could hide in there.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[54:19]<\/small>\u00a0<span title=\"54:19 - 54:31\" data-start=\"00:54:19.038\" data-end=\"00:54:31.410\" data-spk=\"0\" data-label=\"Jason\">Yeah so you have to worry about that you also side note like a thing that drives CFOs crazy about marketers is you also have to have this argument about correlation and causation right that like\u00a0<\/span><span title=\"54:31 - 54:40\" data-start=\"00:54:31.230\" data-end=\"00:54:39.763\" data-spk=\"0\" data-label=\"Jason\">if I went out and bought a bunch of customers would they maintain this the same level of performance or with those those.<\/span><br \/><span title=\"54:40 - 54:49\" data-start=\"00:54:39.998\" data-end=\"00:54:48.596\" data-spk=\"0\" data-label=\"Jason\">Purchase customers through higher advertising and through greater sales and marketing a activities be less oil less valuable customers by.<\/span><br \/><span title=\"54:49 - 54:53\" data-start=\"00:54:49.059\" data-end=\"00:54:52.568\" data-spk=\"0\" data-label=\"Jason\">The answer varies depending on the business.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[54:53]<\/small>\u00a0<span title=\"54:53 - 54:59\" data-start=\"00:54:52.502\" data-end=\"00:54:59.022\" data-spk=\"1\" data-label=\"Scot\">Yeah that\u2019s where I this kind of come back to that bifurcation thinks I think would you say 120 million households.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[54:59]<\/small>\u00a0<span title=\"54:59 - 55:00\" data-start=\"00:54:59.124\" data-end=\"00:55:00.218\" data-spk=\"0\" data-label=\"Jason\">Yeah 131.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[55:00]<\/small>\u00a0<span title=\"55:00 - 55:13\" data-start=\"00:54:59.918\" data-end=\"00:55:13.281\" data-spk=\"1\" data-label=\"Scot\">Yeah so there\u2019s probably I think it\u2019s probably a pretty evenly split between convenience and value so call it 60 and they\u2019ve got 7.7 so there\u2019s actually good I think they\u2019ve got a 10% share of,\u00a0<\/span><span title=\"55:13 - 55:23\" data-start=\"00:55:13.318\" data-end=\"00:55:23.046\" data-spk=\"1\" data-label=\"Scot\">what does the actual dress for Market because I don\u2019t think they\u2019re going to get any of the value or in a consumers because yeah the valuing consumer does not pay for convenience they\u2019ll just go to grocery store.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[55:23]<\/small>\u00a0<span title=\"55:23 - 55:36\" data-start=\"00:55:22.764\" data-end=\"00:55:35.942\" data-spk=\"0\" data-label=\"Jason\">Yeah and again in the bottom quartile a lot of people are shopping for for groceries with government assistance and I don\u2019t actually think instacart should double-check this but I don\u2019t believe instacart has a way to accept Snap payments.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[55:36]<\/small>\u00a0<span title=\"55:36 - 55:41\" data-start=\"00:55:35.816\" data-end=\"00:55:40.563\" data-spk=\"1\" data-label=\"Scot\">Yeah I don\u2019t think the government is going to subsidize the food delivered.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[55:39]<\/small>\u00a0<span title=\"55:39 - 55:49\" data-start=\"00:55:39.307\" data-end=\"00:55:49.089\" data-spk=\"0\" data-label=\"Jason\">Well they just you know they do in other great white white guy like you can order groceries online from Walmart and pay with SNAP but I don\u2019t think you can with instacart.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[55:49]<\/small>\u00a0<span title=\"55:49 - 55:57\" data-start=\"00:55:49.252\" data-end=\"00:55:56.907\" data-spk=\"1\" data-label=\"Scot\">Yes that\u2019s another factor and then at some point yeah I\u2019m sure you\u2019ll bring this up but the.<\/span><br \/><span title=\"55:57 - 56:11\" data-start=\"00:55:57.046\" data-end=\"00:56:11.299\" data-spk=\"1\" data-label=\"Scot\">The if you\u2019re if you\u2019re a grocer you know a lot of ours opt out of the sand to themselves and they like we have a Harris Teeter that they don\u2019t accept instacart yeah they\u2019re not on there and they want to do their own they want to own the customer themselves.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[56:12]<\/small>\u00a0<span title=\"56:12 - 56:17\" data-start=\"00:56:12.129\" data-end=\"00:56:17.410\" data-spk=\"0\" data-label=\"Jason\">Yeah I save that discussion for other but I think that\u2019s a super important one.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[56:16]<\/small>\u00a0<span title=\"56:16 - 56:20\" data-start=\"00:56:16.383\" data-end=\"00:56:20.126\" data-spk=\"1\" data-label=\"Scot\">Forget I said that that\u2019s a teaser that\u2019s it\u2019s a teaser was what we call a tease.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[56:19]<\/small>\u00a0<span title=\"56:19 - 56:27\" data-start=\"00:56:18.516\" data-end=\"00:56:27.415\" data-spk=\"0\" data-label=\"Jason\">Excellent teaser yeah because I feel like we\u2019ve gone to the add segment of the breakdown of is there anything else you wanted to cover before that Scott.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[56:28]<\/small>\u00a0<span title=\"56:28 - 56:32\" data-start=\"00:56:27.518\" data-end=\"00:56:31.670\" data-spk=\"1\" data-label=\"Scot\">No I\u2019m on the edge of my seat to hear what you thought about that specific.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[56:31]<\/small>\u00a0<span title=\"56:31 - 56:36\" data-start=\"00:56:31.370\" data-end=\"00:56:35.738\" data-spk=\"0\" data-label=\"Jason\">Yeah so it turns out instacart sanad Essence and\u00a0<\/span><span title=\"56:36 - 56:42\" data-start=\"00:56:35.666\" data-end=\"00:56:41.867\" data-spk=\"0\" data-label=\"Jason\">probably shouldn\u2019t surprise anyone you know Scott you alluded to the change in CEO the\u00a0<\/span><span title=\"56:42 - 56:52\" data-start=\"00:56:41.663\" data-end=\"00:56:51.746\" data-spk=\"0\" data-label=\"Jason\">the current CEO for this IPO is fidge Asuma Seema who formerly was VP of advertising at Facebook\u00a0<\/span><span title=\"56:52 - 56:57\" data-start=\"00:56:51.542\" data-end=\"00:56:57.467\" data-spk=\"0\" data-label=\"Jason\">so they brought in a Facebook.<\/span><br \/><span title=\"56:58 - 57:11\" data-start=\"00:56:57.587\" data-end=\"00:57:10.963\" data-spk=\"0\" data-label=\"Jason\">Exact to run this business and shoot I should have looked up what episode he was on but Seth Dallaire was a past guest on this show when he was the chief Revenue officer.<\/span><br \/><span title=\"57:11 - 57:18\" data-start=\"00:57:11.132\" data-end=\"00:57:18.102\" data-spk=\"0\" data-label=\"Jason\">For instacart which was right around the time that that fidget joined.<\/span><\/p>\n<p><small>[57:19]<\/small>\u00a0<span title=\"57:19 - 57:28\" data-start=\"00:57:18.649\" data-end=\"00:57:27.873\" data-spk=\"0\" data-label=\"Jason\">Instacart so we actually had a discussion about their aspirations to become an advertising business and spoiler alert,\u00a0<\/span><span title=\"57:28 - 57:34\" data-start=\"00:57:27.885\" data-end=\"00:57:33.671\" data-spk=\"0\" data-label=\"Jason\">it worked at instacart which we\u2019re going to break into and that guess set the layer\u00a0<\/span><span title=\"57:34 - 57:39\" data-start=\"00:57:33.636\" data-end=\"00:57:39.007\" data-spk=\"0\" data-label=\"Jason\">subsequently was hired as the chief Revenue officer at Walmart where he\u2019s.<\/span><br \/><span title=\"57:39 - 57:49\" data-start=\"00:57:39.164\" data-end=\"00:57:48.874\" data-spk=\"0\" data-label=\"Jason\">Building Walmart connect which is also working so turns out ads are becoming an increasingly important part of the ecosystem for retailers\u00a0<\/span><span title=\"57:49 - 57:56\" data-start=\"00:57:48.773\" data-end=\"00:57:55.827\" data-spk=\"0\" data-label=\"Jason\">but the basic ad math at instacart is that in 2022 the last full year of data\u00a0<\/span><span title=\"57:56 - 58:05\" data-start=\"00:57:55.749\" data-end=\"00:58:04.961\" data-spk=\"0\" data-label=\"Jason\">instacart generated 470 million dollars in ads so 470 million on 28 billion in GTV,\u00a0<\/span><span title=\"58:05 - 58:12\" data-start=\"00:58:04.991\" data-end=\"00:58:11.691\" data-spk=\"0\" data-label=\"Jason\">means that that\u2019s about 2.6 percent of the spin.<\/span><br \/><span title=\"58:12 - 58:19\" data-start=\"00:58:11.799\" data-end=\"00:58:19.460\" data-spk=\"0\" data-label=\"Jason\">That went to ads it\u2019s thirty percent of their revenue today and.<\/span><\/p>\n<p><small>[58:20]<\/small>\u00a0<span title=\"58:20 - 58:29\" data-start=\"00:58:19.767\" data-end=\"00:58:28.871\" data-spk=\"0\" data-label=\"Jason\">It\u2019s growing at 29 percent so it went up 29% from 2022 to from 21 to 20 22.<\/span><br \/><span title=\"58:29 - 58:37\" data-start=\"00:58:29.039\" data-end=\"00:58:36.592\" data-spk=\"0\" data-label=\"Jason\">Um it\u2019s grown another twenty four percent in the first months of six months of 2023 so,\u00a0<\/span><span title=\"58:37 - 58:46\" data-start=\"00:58:36.605\" data-end=\"00:58:46.039\" data-spk=\"0\" data-label=\"Jason\">a lot of the unit economics of their transactions have kind of stabilized and are flat the one thing that\u2019s still growing at a very fast double-digit pace,\u00a0<\/span><span title=\"58:46 - 58:55\" data-start=\"00:58:46.117\" data-end=\"00:58:54.577\" data-spk=\"0\" data-label=\"Jason\">is the ad business and at seven and twenty million dollars it\u2019s already reasonably robust and they don\u2019t.<\/span><br \/><span title=\"58:55 - 59:02\" data-start=\"00:58:54.782\" data-end=\"00:59:02.197\" data-spk=\"0\" data-label=\"Jason\">Ads are not a line item on the income statement that they included like you know and presumably like it\u2019s not.<\/span><br \/><span title=\"59:02 - 59:09\" data-start=\"00:59:02.312\" data-end=\"00:59:09.185\" data-spk=\"0\" data-label=\"Jason\">You could argue it\u2019s not Material against the three billion in in Revenue.<\/span><br \/><span title=\"59:09 - 59:15\" data-start=\"00:59:09.444\" data-end=\"00:59:15.140\" data-spk=\"0\" data-label=\"Jason\">But the so we don\u2019t we don\u2019t really know exactly how profitable,\u00a0<\/span><span title=\"59:15 - 59:22\" data-start=\"00:59:15.201\" data-end=\"00:59:21.660\" data-spk=\"0\" data-label=\"Jason\">Those ads are but in general we would call these ads or retail media Network and the\u00a0<\/span><span title=\"59:22 - 59:36\" data-start=\"00:59:21.619\" data-end=\"00:59:36.431\" data-spk=\"0\" data-label=\"Jason\">you know people argue about how profitable these retail media networks are people particularly argue about Amazon\u2019s but kind of the middle of the range when people estimate how what how profitable these things are is that they\u2019re about 75 percent gross\u00a0<\/span><span title=\"59:36 - 59:45\" data-start=\"00:59:36.317\" data-end=\"00:59:45.126\" data-spk=\"0\" data-label=\"Jason\">right so in theory they should be near 99% gross margin because like you don\u2019t have to make anything to sell an ad.<\/span><\/p>\n<p><small>[59:46]<\/small>\u00a0<span title=\"59:46 - 59:56\" data-start=\"00:59:45.577\" data-end=\"00:59:55.569\" data-spk=\"0\" data-label=\"Jason\">You know you do need some technology you need an ad server you need Administration and salespeople you need brand safety people you know there is.<\/span><br \/><span title=\"59:56 - 1:00:02\" data-start=\"00:59:55.888\" data-end=\"01:00:01.981\" data-spk=\"0\" data-label=\"Jason\">Some infrastructure some of which has to scale with the ad business and so the the kind of.<\/span><br \/><span title=\"1:00:02 - 1:00:09\" data-start=\"01:00:02.120\" data-end=\"01:00:08.741\" data-spk=\"0\" data-label=\"Jason\">Most common estimate that that I see out there is like 75% of that revenue from ad business is profit.<\/span><br \/><span title=\"1:00:09 - 1:00:16\" data-start=\"01:00:08.850\" data-end=\"01:00:16.157\" data-spk=\"0\" data-label=\"Jason\">So that implies that the ad business contributed seven 555 million to the.<\/span><br \/><span title=\"1:00:16 - 1:00:19\" data-start=\"01:00:16.391\" data-end=\"01:00:19.486\" data-spk=\"0\" data-label=\"Jason\">To the income statement for 2022.<\/span><br \/><span title=\"1:00:20 - 1:00:33\" data-start=\"01:00:19.600\" data-end=\"01:00:33.180\" data-spk=\"0\" data-label=\"Jason\">Um and they were only profitable 428 million in 2022 so that the ad business contribute like by that sort of slice the ad business contributed.<\/span><\/p>\n<p><small>[1:00:33]<\/small>\u00a0<span title=\"1:00:33 - 1:00:41\" data-start=\"01:00:33.493\" data-end=\"01:00:41.004\" data-spk=\"0\" data-label=\"Jason\">You know covered all of their losses and and was essentially all of their their profit.<\/span><br \/><span title=\"1:00:41 - 1:00:51\" data-start=\"01:00:41.221\" data-end=\"01:00:50.757\" data-spk=\"0\" data-label=\"Jason\">In in 2022 and it\u2019s growing faster than anything else so it\u2019s very clear that the ad business is a key.<\/span><br \/><span title=\"1:00:51 - 1:01:01\" data-start=\"01:00:50.865\" data-end=\"01:01:00.582\" data-spk=\"0\" data-label=\"Jason\">Tenant of this instacart model and they in the management can section they it was kind of funny working for a big,\u00a0<\/span><span title=\"1:01:01 - 1:01:07\" data-start=\"01:01:00.606\" data-end=\"01:01:07.198\" data-spk=\"0\" data-label=\"Jason\">advertising agency because they had to spend a fair amount of time like justifying that ads are\u00a0<\/span><span title=\"1:01:07 - 1:01:20\" data-start=\"01:01:07.192\" data-end=\"01:01:19.630\" data-spk=\"0\" data-label=\"Jason\">valuable good thing and that people are spending money on ads so they kind of you know paint paint this picture that consumer packaged Goods companies which are you know most of the goods that instacart cells that.<\/span><\/p>\n<p><small>[1:01:20]<\/small>\u00a0<span title=\"1:01:20 - 1:01:30\" data-start=\"01:01:19.925\" data-end=\"01:01:29.720\" data-spk=\"0\" data-label=\"Jason\">Cpgs in the u.s. spend about 200 billion dollars a year on advertising and currently about a quarter of that is digital.<\/span><br \/><span title=\"1:01:30 - 1:01:33\" data-start=\"01:01:29.876\" data-end=\"01:01:33.091\" data-spk=\"0\" data-label=\"Jason\">And so the.<\/span><br \/><span title=\"1:01:33 - 1:01:45\" data-start=\"01:01:33.175\" data-end=\"01:01:45.265\" data-spk=\"0\" data-label=\"Jason\">The you know a typical cpg spends like about thirty percent of their gross sales on advertising and you know at the moment instacart is collecting about\u00a0<\/span><span title=\"1:01:45 - 1:01:51\" data-start=\"01:01:45.254\" data-end=\"01:01:50.691\" data-spk=\"0\" data-label=\"Jason\">less than three percent of its sales in advertising so I think they\u2019re saying like hey.<\/span><br \/><span title=\"1:01:51 - 1:01:58\" data-start=\"01:01:50.866\" data-end=\"01:01:57.548\" data-spk=\"0\" data-label=\"Jason\">Advertising is super effective it\u2019s an important part of our economic model and there\u2019s a ton of.<\/span><br \/><span title=\"1:01:58 - 1:02:07\" data-start=\"01:01:57.746\" data-end=\"01:02:07.042\" data-spk=\"0\" data-label=\"Jason\">Of potential growth for us in this market and that cpgs need us and they amongst their claims about the size of their business,\u00a0<\/span><span title=\"1:02:07 - 1:02:15\" data-start=\"01:02:07.121\" data-end=\"01:02:14.914\" data-spk=\"0\" data-label=\"Jason\">there are 50 500 brands that are advertising on instacart today and those are.<\/span><br \/><span title=\"1:02:15 - 1:02:18\" data-start=\"01:02:15.107\" data-end=\"01:02:17.900\" data-spk=\"0\" data-label=\"Jason\">At the moment all brands that sell.<\/span><\/p>\n<p><small>[1:02:18]<\/small>\u00a0<span title=\"1:02:18 - 1:02:32\" data-start=\"01:02:18.249\" data-end=\"01:02:31.715\" data-spk=\"0\" data-label=\"Jason\">Whose Goods get sold on instacart so we call that endemic advertisers right so it\u2019s it\u2019s Mondelez selling cookies and folks like that a lot of advertising companies.<\/span><br \/><span title=\"1:02:32 - 1:02:36\" data-start=\"01:02:31.992\" data-end=\"01:02:35.603\" data-spk=\"0\" data-label=\"Jason\">Sell ads to people that aren\u2019t necessarily selling through the.<\/span><br \/><span title=\"1:02:36 - 1:02:45\" data-start=\"01:02:35.754\" data-end=\"01:02:45.133\" data-spk=\"0\" data-label=\"Jason\">The the platform we call those non-endemic advertisers and we I don\u2019t think there are any non-endemic advertisers on instacart as of yet.<\/span><br \/><span title=\"1:02:46 - 1:02:54\" data-start=\"01:02:45.561\" data-end=\"01:02:53.744\" data-spk=\"0\" data-label=\"Jason\">But so at the Top Line like these are these are solid fundamentals for an ad business you like.<\/span><\/p>\n<p><small>[1:02:54]<\/small>\u00a0<span title=\"1:02:54 - 1:03:08\" data-start=\"01:02:54.304\" data-end=\"01:03:07.806\" data-spk=\"0\" data-label=\"Jason\">From my perspective retail media networks are super important evolution in the space they are very important I actually think for a lot of smaller retailers they get overhyped and that there\u2019s a problem with scale with a lot of these but instacart appears to be one of the companies.<\/span><br \/><span title=\"1:03:08 - 1:03:11\" data-start=\"01:03:08.143\" data-end=\"01:03:10.618\" data-spk=\"0\" data-label=\"Jason\">That has enough scale to build a real.<\/span><br \/><span title=\"1:03:11 - 1:03:25\" data-start=\"01:03:10.835\" data-end=\"01:03:24.974\" data-spk=\"0\" data-label=\"Jason\">A real business around this there is a unique problem that instacart has with ads that you know I think they\u2019ve only been partially able to remediate so far who\u2019s paying for the ads.<\/span><\/p>\n<p><small>[1:03:25]<\/small>\u00a0<span title=\"1:03:25 - 1:03:34\" data-start=\"01:03:25.425\" data-end=\"01:03:33.705\" data-spk=\"0\" data-label=\"Jason\">Right so they talked about the brands paying for the ad right it\u2019s Procter &amp; Gamble about the ad but there\u2019s a lot of stakeholders with budgets at Procter &amp; Gamble,\u00a0<\/span><span title=\"1:03:34 - 1:03:43\" data-start=\"01:03:33.753\" data-end=\"01:03:43.373\" data-spk=\"0\" data-label=\"Jason\">there\u2019s Mark Pritchard that buys Super Bowl ads and tries to build the brand and make people love tied but there are also account teams,\u00a0<\/span><span title=\"1:03:43 - 1:03:54\" data-start=\"01:03:43.416\" data-end=\"01:03:53.913\" data-spk=\"0\" data-label=\"Jason\">that are trying to Goose the sales at their account so there\u2019s a Walmart account team and a Kroger account team and an Albertsons account team and all of those guys have an ad budget,\u00a0<\/span><span title=\"1:03:54 - 1:04:01\" data-start=\"01:03:53.968\" data-end=\"01:04:01.160\" data-spk=\"0\" data-label=\"Jason\">that they want to use to sell more stuff at Walmart Kroger and Albertsons respectively.<\/span><br \/><span title=\"1:04:01 - 1:04:10\" data-start=\"01:04:01.257\" data-end=\"01:04:09.777\" data-spk=\"0\" data-label=\"Jason\">And so the big problem you have with instacart is you spend that ad dollar with instacart and you don\u2019t actually know.<\/span><br \/><span title=\"1:04:10 - 1:04:15\" data-start=\"01:04:10.084\" data-end=\"01:04:15.041\" data-spk=\"0\" data-label=\"Jason\">Which retailer it\u2019s going to impact.<\/span><br \/><span title=\"1:04:15 - 1:04:25\" data-start=\"01:04:15.138\" data-end=\"01:04:24.908\" data-spk=\"0\" data-label=\"Jason\">Right and so it\u2019s kind of like it has to come out of the top of funnel ad budget but it\u2019s bottom of the funnel Performance Marketing,\u00a0<\/span><span title=\"1:04:25 - 1:04:32\" data-start=\"01:04:24.951\" data-end=\"01:04:32.383\" data-spk=\"0\" data-label=\"Jason\">type ads mostly search ads and so not saying that model can\u2019t work but it\u2019s.<\/span><\/p>\n<p><small>[1:04:33]<\/small>\u00a0<span title=\"1:04:33 - 1:04:47\" data-start=\"01:04:32.961\" data-end=\"01:04:46.889\" data-spk=\"0\" data-label=\"Jason\">The the guys with budgets that are used to buying ads are used to a slightly different structure so I will say that at the moment instacart causes a lot of consternation because it\u2019s a\u00a0<\/span><span title=\"1:04:47 - 1:04:57\" data-start=\"01:04:46.884\" data-end=\"01:04:56.552\" data-spk=\"0\" data-label=\"Jason\">it\u2019s an unusual Beast that people don\u2019t exactly know how to budget for or how to spend their money on and you know I would assume if instacart wants to grow a lot they have to make that,\u00a0<\/span><span title=\"1:04:57 - 1:05:00\" data-start=\"01:04:56.624\" data-end=\"01:04:59.761\" data-spk=\"0\" data-label=\"Jason\">easier for for the brands to do.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:05:00]<\/small>\u00a0<span title=\"1:05:00 - 1:05:02\" data-start=\"01:04:59.791\" data-end=\"01:05:02.170\" data-spk=\"1\" data-label=\"Scot\">Yeah so what do you think.<\/span><br \/><span title=\"1:05:02 - 1:05:17\" data-start=\"01:05:02.267\" data-end=\"01:05:17.175\" data-spk=\"1\" data-label=\"Scot\">They\u2019re so this is a relatively good chunk of Revenue where do you think they\u2019re getting it from is it online going offline I mean offline going online are they taking it from Google are they taking it from couponing or.<\/span><br \/><span title=\"1:05:18 - 1:05:23\" data-start=\"01:05:17.524\" data-end=\"01:05:22.643\" data-spk=\"1\" data-label=\"Scot\">Two Brands even do like newspaper inserts are still a thing like I know that back in the day.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:05:22]<\/small>\u00a0<span title=\"1:05:22 - 1:05:24\" data-start=\"01:05:22.343\" data-end=\"01:05:24.182\" data-spk=\"0\" data-label=\"Jason\">So I know I yeah I think.<\/span><br \/><span title=\"1:05:24 - 1:05:37\" data-start=\"01:05:24.368\" data-end=\"01:05:36.644\" data-spk=\"0\" data-label=\"Jason\">Brands are pretty pretty rapidly shifting their their dollars to digital vehicles and so two things like there\u2019s you know traditional kind of,\u00a0<\/span><span title=\"1:05:37 - 1:05:53\" data-start=\"01:05:36.675\" data-end=\"01:05:53.265\" data-spk=\"0\" data-label=\"Jason\">newspaper magazine advertising that\u2019s atrophying and and the brands are replacing that with digital there\u2019s a slight misnomer the whole privacy thing and Facebook is a real thing but you know who wasn\u2019t buying a huge amounts of Facebook ads\u00a0<\/span><span title=\"1:05:53 - 1:05:58\" data-start=\"01:05:53.092\" data-end=\"01:05:58.409\" data-spk=\"0\" data-label=\"Jason\">are like National cpgs with huge brand recall so\u00a0<\/span><span title=\"1:05:58 - 1:06:05\" data-start=\"01:05:58.307\" data-end=\"01:06:05.151\" data-spk=\"0\" data-label=\"Jason\">so you know those tended to be smaller Brands and longer tail things so it\u2019s less like oh.<\/span><\/p>\n<p><small>[1:06:05]<\/small>\u00a0<span title=\"1:06:05 - 1:06:18\" data-start=\"01:06:05.200\" data-end=\"01:06:18.023\" data-spk=\"0\" data-label=\"Jason\">The these guys are shifting from Facebook it\u2019s more they\u2019re shifting from old-school marketing and over are television to to these digital vehicles but a big chunk of it\u00a0<\/span><span title=\"1:06:18 - 1:06:27\" data-start=\"01:06:17.975\" data-end=\"01:06:26.556\" data-spk=\"0\" data-label=\"Jason\">is still coming out of these trade budgets right and so there may have been a pool of money that was allocated to spend at Kroger\u00a0<\/span><span title=\"1:06:26 - 1:06:30\" data-start=\"01:06:26.412\" data-end=\"01:06:30.486\" data-spk=\"0\" data-label=\"Jason\">and it used to get spend on newspaper circulars that were like\u00a0<\/span><span title=\"1:06:30 - 1:06:49\" data-start=\"01:06:30.312\" data-end=\"01:06:49.492\" data-spk=\"0\" data-label=\"Jason\">Kroger ads that fell out of the newspaper and that\u2019s an increasingly ineffective vehicle or maybe they even got spent on floor decals in the aisle at Kroger right you know like Shopper marketing tactics or trade tactics and so increasingly\u00a0<\/span><span title=\"1:06:49 - 1:06:59\" data-start=\"01:06:49.276\" data-end=\"01:06:58.548\" data-spk=\"0\" data-label=\"Jason\">the retail media networks are getting a chunk of those trade dollars and I do think instacart is getting some of those even though\u00a0<\/span><span title=\"1:06:59 - 1:07:06\" data-start=\"01:06:58.506\" data-end=\"01:07:06.234\" data-spk=\"0\" data-label=\"Jason\">it\u2019s trickier to do because you know it\u2019s not allocated exactly 21 specific retailer at the moment.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:07:07]<\/small>\u00a0<span title=\"1:07:07 - 1:07:10\" data-start=\"01:07:06.631\" data-end=\"01:07:10.464\" data-spk=\"1\" data-label=\"Scot\">Yeah the\u00a0<\/span><span title=\"1:07:10 - 1:07:26\" data-start=\"01:07:10.338\" data-end=\"01:07:25.793\" data-spk=\"1\" data-label=\"Scot\">so what did the ad formats I\u2019ve seen is I always get this one that\u2019s like you through some Quaker Oats granola bars in there if you add these six things will give you a five bucks or something I\u2019ve seen a coupon and I\u2019ve seen a you know an upsell hey\u00a0<\/span><span title=\"1:07:26 - 1:07:33\" data-start=\"01:07:25.607\" data-end=\"01:07:33.088\" data-spk=\"1\" data-label=\"Scot\">you\u2019ve previously bought this or you may like this are there those are the three main add units or am I missing something.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:07:33]<\/small>\u00a0<span title=\"1:07:33 - 1:07:42\" data-start=\"01:07:32.980\" data-end=\"01:07:42.078\" data-spk=\"0\" data-label=\"Jason\">Yeah so I am not going to speak specifically about the variation in ad units but as a general rule like\u00a0<\/span><span title=\"1:07:42 - 1:07:55\" data-start=\"01:07:42.042\" data-end=\"01:07:54.997\" data-spk=\"0\" data-label=\"Jason\">probably I\u2019m assuming the most predominant ads on the platform are search ads right so people search for products like always and you know above all the organic results are a bunch of sponsored ads right and so off\u00a0<\/span><span title=\"1:07:55 - 1:08:00\" data-start=\"01:07:54.889\" data-end=\"01:07:59.895\" data-spk=\"0\" data-label=\"Jason\">very often those don\u2019t have a special offer in them they\u2019re just premium.<\/span><\/p>\n<p><small>[1:08:00]<\/small>\u00a0<span title=\"1:08:00 - 1:08:07\" data-start=\"01:07:59.991\" data-end=\"01:08:07.262\" data-spk=\"0\" data-label=\"Jason\">And so a big chunk is probably those those search ads you know then they\u2019re there are like\u00a0<\/span><span title=\"1:08:07 - 1:08:10\" data-start=\"01:08:07.256\" data-end=\"01:08:10.170\" data-spk=\"0\" data-label=\"Jason\">Banner type ads that that\u00a0<\/span><span title=\"1:08:10 - 1:08:19\" data-start=\"01:08:10.110\" data-end=\"01:08:19.088\" data-spk=\"0\" data-label=\"Jason\">land either on like the homepage of a particular retailer or on a category page or subcategory page and more often\u00a0<\/span><span title=\"1:08:19 - 1:08:30\" data-start=\"01:08:18.986\" data-end=\"01:08:29.970\" data-spk=\"0\" data-label=\"Jason\">those are likely to have some call-to-action offer in them so they might have a promotion or a discount of some kind and then in the digital space\u00a0<\/span><span title=\"1:08:30 - 1:08:39\" data-start=\"01:08:29.946\" data-end=\"01:08:39.170\" data-spk=\"0\" data-label=\"Jason\">um there\u2019s a lot of what we call like top off and impulse ads which are what you were just talking about right and\u00a0<\/span><span title=\"1:08:39 - 1:08:41\" data-start=\"01:08:39.056\" data-end=\"01:08:41.111\" data-spk=\"0\" data-label=\"Jason\">you know one of the big problems we have with\u00a0<\/span><span title=\"1:08:41 - 1:08:54\" data-start=\"01:08:40.997\" data-end=\"01:08:53.850\" data-spk=\"0\" data-label=\"Jason\">digital grocery is when you go shopping at the grocery store your wife sends you to the store with a list of 10 items and you buy all those 10 items but then you walk by the ice cream aisle on your way to the cash wrap\u00a0<\/span><span title=\"1:08:54 - 1:08:59\" data-start=\"01:08:53.730\" data-end=\"01:08:58.952\" data-spk=\"0\" data-label=\"Jason\">and you add ice cream even though you didn\u2019t plan to buy ice cream and then when you\u2019re standing in the cash wrap,\u00a0<\/span><span title=\"1:08:59 - 1:09:07\" data-start=\"01:08:59.006\" data-end=\"01:09:07.358\" data-spk=\"0\" data-label=\"Jason\">you\u2019re sneering at that Snickers bar or that Wrigley gum and you add that to the car and maybe a cold Coke to drink on the way home\u00a0<\/span><span title=\"1:09:07 - 1:09:15\" data-start=\"01:09:07.299\" data-end=\"01:09:15.368\" data-spk=\"0\" data-label=\"Jason\">from the grocery store so a big chunk of a traditional grocer sales are all these unplanned impulse purchases and that.<\/span><\/p>\n<p><small>[1:09:16]<\/small>\u00a0<span title=\"1:09:16 - 1:09:25\" data-start=\"01:09:15.633\" data-end=\"01:09:24.616\" data-spk=\"0\" data-label=\"Jason\">By default happens a lot less in digital Grocery and so a lot of these ad formats are kind of are,\u00a0<\/span><span title=\"1:09:25 - 1:09:35\" data-start=\"01:09:24.635\" data-end=\"01:09:34.628\" data-spk=\"0\" data-label=\"Jason\">our Industries early efforts to try to reinvent digital impulse and I would I would call it pretty imperfect at the moment.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:09:35]<\/small>\u00a0<span title=\"1:09:35 - 1:09:42\" data-start=\"01:09:34.952\" data-end=\"01:09:42.331\" data-spk=\"1\" data-label=\"Scot\">Don\u2019t you get a nursing inside about gum or something like because self-checkout smelled the gum that serendipity.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:09:42]<\/small>\u00a0<span title=\"1:09:42 - 1:09:52\" data-start=\"01:09:42.031\" data-end=\"01:09:51.729\" data-spk=\"0\" data-label=\"Jason\">Yeah the the that that cash wrap used to be the most valuable real estate in a grocery store like the most Revenue per square foot was that what we call the cash wrap which is the.<\/span><br \/><span title=\"1:09:52 - 1:10:00\" data-start=\"01:09:51.886\" data-end=\"01:09:59.794\" data-spk=\"0\" data-label=\"Jason\">The conveyor belt that you stand in line and actually the first thing that killed the cash wrap was not any of this digital shopping or any of these things it was.<\/span><br \/><span title=\"1:10:00 - 1:10:04\" data-start=\"01:10:00.251\" data-end=\"01:10:04.282\" data-spk=\"0\" data-label=\"Jason\">Facebook and the mobile phone and simply because\u00a0<\/span><span title=\"1:10:04 - 1:10:14\" data-start=\"01:10:04.259\" data-end=\"01:10:13.518\" data-spk=\"0\" data-label=\"Jason\">you now had something else to do when you are standing in line so you were paying attention to your phone and back then you are on Facebook today you\u2019d probably be on tick tock\u00a0<\/span><span title=\"1:10:13 - 1:10:24\" data-start=\"01:10:13.441\" data-end=\"01:10:23.878\" data-spk=\"0\" data-label=\"Jason\">but you\u2019re doing that instead of being forced to stare at the gum or the the coke with a suspiciously intentional you know Sheen of dew on it.<\/span><br \/><span title=\"1:10:24 - 1:10:35\" data-start=\"01:10:24.040\" data-end=\"01:10:34.886\" data-spk=\"0\" data-label=\"Jason\">And so just impulse buys went down just because the darn phones were distracting people that were standing in line and now that you don\u2019t even walk in the store or stand in line you know of course we lose.<\/span><br \/><span title=\"1:10:35 - 1:10:41\" data-start=\"01:10:35.043\" data-end=\"01:10:40.901\" data-spk=\"0\" data-label=\"Jason\">A lot of our our impulse juice so I think you know if we\u00a0<\/span><span title=\"1:10:41 - 1:10:48\" data-start=\"01:10:40.884\" data-end=\"01:10:48.088\" data-spk=\"0\" data-label=\"Jason\">we went from three percent online sales to 12 percent online sales if we get in those twenty or thirty percent it\u2019s it\u2019s.<\/span><br \/><span title=\"1:10:48 - 1:10:55\" data-start=\"01:10:48.269\" data-end=\"01:10:55.071\" data-spk=\"0\" data-label=\"Jason\">Like the economics are only going to work if Grocers figure out how to replace those lost Sample Sales.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:10:55]<\/small>\u00a0<span title=\"1:10:55 - 1:11:02\" data-start=\"01:10:55.143\" data-end=\"01:11:02.047\" data-spk=\"1\" data-label=\"Scot\">At some point does this create channel conflict if I\u2019m Kroger I want to these a dollars in their kind of happening.<\/span><br \/><span title=\"1:11:03 - 1:11:12\" data-start=\"01:11:03.442\" data-end=\"01:11:12.221\" data-spk=\"1\" data-label=\"Scot\">Or the order gets to me and your skin you\u2019re skimming them away from me like do you think Grocers wake up and say sorry if this is something on discuss later.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:11:12]<\/small>\u00a0<span title=\"1:11:12 - 1:11:21\" data-start=\"01:11:11.921\" data-end=\"01:11:21.090\" data-spk=\"0\" data-label=\"Jason\">No let\u2019s pivot to that because I think that was the end of my ads section is there anything that you want to ask her missed about her noticed about ads that.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:11:21]<\/small>\u00a0<span title=\"1:11:21 - 1:11:25\" data-start=\"01:11:20.790\" data-end=\"01:11:24.790\" data-spk=\"1\" data-label=\"Scot\">No I already said it just kind of reminds me Amazon so I did you know.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:11:25]<\/small>\u00a0<span title=\"1:11:25 - 1:11:26\" data-start=\"01:11:24.540\" data-end=\"01:11:26.108\" data-spk=\"0\" data-label=\"Jason\">Yeah.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:11:26]<\/small>\u00a0<span title=\"1:11:26 - 1:11:28\" data-start=\"01:11:25.858\" data-end=\"01:11:28.061\" data-spk=\"1\" data-label=\"Scot\">So Channel conflict what\u2019s going to happen there.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:11:28]<\/small>\u00a0<span title=\"1:11:28 - 1:11:37\" data-start=\"01:11:27.761\" data-end=\"01:11:36.678\" data-spk=\"0\" data-label=\"Jason\">Yeah so there\u2019s some other interesting tidbits that will come to but like the the big concern about this whole thing is this is a\u00a0<\/span><span title=\"1:11:37 - 1:11:50\" data-start=\"01:11:36.672\" data-end=\"01:11:50.336\" data-spk=\"0\" data-label=\"Jason\">Marketplace to me that has some unique characteristics that are distinct from most other marketplaces so you\u2019re obviously the marketplace Guru on our show if you think about a Marketplace like Amazon there\u2019s nearly an.<\/span><br \/><span title=\"1:11:51 - 1:11:59\" data-start=\"01:11:50.601\" data-end=\"01:11:59.380\" data-spk=\"0\" data-label=\"Jason\">In endless supply of potential sellers that could sell on Amazon right so you know Amazon treats them well enough,\u00a0<\/span><span title=\"1:11:59 - 1:12:14\" data-start=\"01:11:59.428\" data-end=\"01:12:13.525\" data-spk=\"0\" data-label=\"Jason\">but if they have some churn and sellers if people feel like they\u2019re not making enough money selling Goods on Amazon Amazon doesn\u2019t sweat that too much because if they leave the platform some other seller is likely right behind them to win that by box\u00a0<\/span><span title=\"1:12:13 - 1:12:14\" data-start=\"01:12:13.412\" data-end=\"01:12:13.976\" data-spk=\"0\" data-label=\"Jason\">there\u00a0<\/span><span title=\"1:12:14 - 1:12:24\" data-start=\"01:12:13.928\" data-end=\"01:12:23.945\" data-spk=\"0\" data-label=\"Jason\">that is not the case in grocery because these Goods aren\u2019t coming from a warehouse they\u2019re not coming from a factory in China most of these goods are coming from\u00a0<\/span><span title=\"1:12:24 - 1:12:34\" data-start=\"01:12:23.831\" data-end=\"01:12:34.335\" data-spk=\"0\" data-label=\"Jason\">the perishable shelves of a local grocer and there\u2019s only a finite number of those grocers in the United States of America so we\u2019re you know you could have kind of all these.<\/span><\/p>\n<p><small>[1:12:35]<\/small>\u00a0<span title=\"1:12:35 - 1:12:43\" data-start=\"01:12:34.924\" data-end=\"01:12:42.982\" data-spk=\"0\" data-label=\"Jason\">Arbitrageurs like becoming sellers on Amazon and you know any college kid could decide to start selling on Amazon tomorrow.<\/span><br \/><span title=\"1:12:43 - 1:12:57\" data-start=\"01:12:43.162\" data-end=\"01:12:57.277\" data-spk=\"0\" data-label=\"Jason\">You kind of have to already be a traditional grocer to become a seller on instacart and so the the pool of potential sellers is way more constrained and.<\/span><br \/><span title=\"1:12:57 - 1:13:06\" data-start=\"01:12:57.374\" data-end=\"01:13:05.906\" data-spk=\"0\" data-label=\"Jason\">Um I would argue that many of those sellers should not be on the instacart marketplace right because.<\/span><br \/><span title=\"1:13:06 - 1:13:20\" data-start=\"01:13:06.279\" data-end=\"01:13:19.547\" data-spk=\"0\" data-label=\"Jason\">In the early days of digital grocery you go oh man this is just a distraction we don\u2019t have a queer a good grocer but we don\u2019t have expertise in digital now we\u2019ve got a few eating customers that want to order online but just Outsource this whole thing to instacart,\u00a0<\/span><span title=\"1:13:20 - 1:13:27\" data-start=\"01:13:19.613\" data-end=\"01:13:26.974\" data-spk=\"0\" data-label=\"Jason\">and see if customers even want it and that that was a perfectly reasonable strategy and a lot of Grocers have obviously done that.<\/span><br \/><span title=\"1:13:27 - 1:13:42\" data-start=\"01:13:27.215\" data-end=\"01:13:41.738\" data-spk=\"0\" data-label=\"Jason\">But once you start seeing that oh my God customers really do want this and now it\u2019s 12 percent of our sales and it\u2019s trending towards twenty percent of our sales and it\u2019s more than half of their their total visits to our brand are now happening on that platform.<\/span><\/p>\n<p><small>[1:13:42]<\/small>\u00a0<span title=\"1:13:42 - 1:13:50\" data-start=\"01:13:42.135\" data-end=\"01:13:50.199\" data-spk=\"0\" data-label=\"Jason\">Do you want that to be a platform you out sourced that also any of your competitors can Outsource or do you want that to be some sort of.<\/span><br \/><span title=\"1:13:50 - 1:13:54\" data-start=\"01:13:50.308\" data-end=\"01:13:54.099\" data-spk=\"0\" data-label=\"Jason\">Owned competitive Advantage right and,\u00a0<\/span><span title=\"1:13:54 - 1:14:01\" data-start=\"01:13:54.130\" data-end=\"01:14:01.214\" data-spk=\"0\" data-label=\"Jason\">I tell the story all the time so people are their eyes are probably rolling in the back of their head but this all played out in e-commerce right when,\u00a0<\/span><span title=\"1:14:01 - 1:14:11\" data-start=\"01:14:01.232\" data-end=\"01:14:11.105\" data-spk=\"0\" data-label=\"Jason\">bookstores first started hearing about the people on to buy books online they said that\u2019s a distraction we should Outsource it what about that company in Seattle that\u2019s outsourced it to them.<\/span><\/p>\n<p><small>[1:14:11]<\/small>\u00a0<span title=\"1:14:11 - 1:14:17\" data-start=\"01:14:11.394\" data-end=\"01:14:16.567\" data-spk=\"0\" data-label=\"Jason\">And when they suddenly realize oh Outsourcing our book business dams on probably doesn\u2019t make a lot of sense.<\/span><br \/><span title=\"1:14:17 - 1:14:26\" data-start=\"01:14:16.694\" data-end=\"01:14:25.827\" data-spk=\"0\" data-label=\"Jason\">Which if you\u2019re a younger listener that really did happen toys Toys R Us and and Borders books like.<\/span><br \/><span title=\"1:14:26 - 1:14:31\" data-start=\"01:14:25.918\" data-end=\"01:14:30.808\" data-spk=\"0\" data-label=\"Jason\">Gave gave their their e-commerce businesses to Amazon,\u00a0<\/span><span title=\"1:14:31 - 1:14:43\" data-start=\"01:14:30.875\" data-end=\"01:14:43.464\" data-spk=\"0\" data-label=\"Jason\">when you realize Amazon was a direct competitor then you found another service provider to Outsource it to and the outsourced provider that everyone found in the e-commerce industry was this company called GSI Commerce and they became.<\/span><br \/><span title=\"1:14:44 - 1:14:51\" data-start=\"01:14:43.608\" data-end=\"01:14:50.554\" data-spk=\"0\" data-label=\"Jason\">A very high valued fast running business founded by this guy Mark Rubin and you\u2019ve probably heard of him because.<\/span><br \/><span title=\"1:14:51 - 1:15:01\" data-start=\"01:14:50.759\" data-end=\"01:15:01.449\" data-spk=\"0\" data-label=\"Jason\">He owns the Philadelphia 76ers on with the money he made from from GSI and he started in another very successful business fanatics but GSI was a tremendously.<\/span><br \/><span title=\"1:15:02 - 1:15:10\" data-start=\"01:15:01.714\" data-end=\"01:15:10.342\" data-spk=\"0\" data-label=\"Jason\">Successful business that kind of doesn\u2019t exist today because over time Toys R Us said you know we better learn how to,\u00a0<\/span><span title=\"1:15:10 - 1:15:21\" data-start=\"01:15:10.367\" data-end=\"01:15:21.381\" data-spk=\"0\" data-label=\"Jason\">run our own e-commerce site and Dick\u2019s Sporting Goods said we need to learn how to run our own e-commerce site and targets that we need to learn how to run her own e-commerce site and so as that market matured,\u00a0<\/span><span title=\"1:15:21 - 1:15:30\" data-start=\"01:15:21.381\" data-end=\"01:15:29.968\" data-spk=\"0\" data-label=\"Jason\">all those people that were happy to Outsource this nascent business to GSI fire GSI and brought that that.<\/span><br \/><span title=\"1:15:30 - 1:15:38\" data-start=\"01:15:30.215\" data-end=\"01:15:38.176\" data-spk=\"0\" data-label=\"Jason\">Function in-house and to me instacart feels a lot like the grocery version of GSI now.<\/span><\/p>\n<p><small>[1:15:39]<\/small>\u00a0<span title=\"1:15:39 - 1:15:51\" data-start=\"01:15:38.513\" data-end=\"01:15:51.180\" data-spk=\"0\" data-label=\"Jason\">One reason this isn\u2019t necessarily a doom story is GSI actually does still exist they\u2019ve rebranded and they\u2019re called the radial and what they do today is they provide a lot of the backend services.<\/span><br \/><span title=\"1:15:51 - 1:16:01\" data-start=\"01:15:51.288\" data-end=\"01:16:00.614\" data-spk=\"0\" data-label=\"Jason\">That businesses use for e-commerce but they no longer provide the front end and they no longer provided under their own brand so they\u2019re sort of a white label service provider.<\/span><br \/><span title=\"1:16:01 - 1:16:11\" data-start=\"01:16:00.837\" data-end=\"01:16:10.709\" data-spk=\"0\" data-label=\"Jason\">And we haven\u2019t talked about it yet but but instacart actually has an extra Revenue stream that they talk about in their S1 that just isn\u2019t economically material yet which is,\u00a0<\/span><span title=\"1:16:11 - 1:16:16\" data-start=\"01:16:10.770\" data-end=\"01:16:16.141\" data-spk=\"0\" data-label=\"Jason\">they\u2019re selling a bunch of services to retailers that want to do some or all of this,\u00a0<\/span><span title=\"1:16:16 - 1:16:21\" data-start=\"01:16:16.208\" data-end=\"01:16:21.003\" data-spk=\"0\" data-label=\"Jason\">themselves and they white label a lot of the services and instacart is,\u00a0<\/span><span title=\"1:16:21 - 1:16:28\" data-start=\"01:16:21.063\" data-end=\"01:16:28.154\" data-spk=\"0\" data-label=\"Jason\">trying to invest in making good versions of those services that they might be able to sell to a retailer that does decide,\u00a0<\/span><span title=\"1:16:28 - 1:16:34\" data-start=\"01:16:28.238\" data-end=\"01:16:33.718\" data-spk=\"0\" data-label=\"Jason\">to bring the website in house or the picking in fulfillment in house.<\/span><br \/><span title=\"1:16:34 - 1:16:39\" data-start=\"01:16:33.809\" data-end=\"01:16:39.204\" data-spk=\"0\" data-label=\"Jason\">But so to me when I look at this business I go the number one risk is.<\/span><\/p>\n<p><small>[1:16:39]<\/small>\u00a0<span title=\"1:16:39 - 1:16:52\" data-start=\"01:16:39.439\" data-end=\"01:16:51.655\" data-spk=\"0\" data-label=\"Jason\">In the long run can they maintain the sellers that they have and if they can\u2019t it\u2019s not like there\u2019s an unlimited Supply to replace the current ones which is a very different Dynamic than.<\/span><br \/><span title=\"1:16:52 - 1:16:59\" data-start=\"01:16:51.890\" data-end=\"01:16:58.902\" data-spk=\"0\" data-label=\"Jason\">Then like the Amazon Marketplace and so one of the things you see that you know they claim they\u2019re very proud of in there.<\/span><br \/><span title=\"1:16:59 - 1:17:09\" data-start=\"01:16:59.041\" data-end=\"01:17:08.859\" data-spk=\"0\" data-label=\"Jason\">There s one is and I should have found this but what\u2019s the count of retailers they say.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:17:09]<\/small>\u00a0<span title=\"1:17:09 - 1:17:12\" data-start=\"01:17:08.559\" data-end=\"01:17:12.032\" data-spk=\"1\" data-label=\"Scot\">5700 it\u2019s just kind of pop that\u2019s the number two spot.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:17:12]<\/small>\u00a0<span title=\"1:17:12 - 1:17:24\" data-start=\"01:17:12.056\" data-end=\"01:17:24.188\" data-spk=\"0\" data-label=\"Jason\">We\u2019ll call that the right number unless I find that number but that but that number of that\u2019s the number of resellers and those resellers have 80,000 stores in the US and represent\u00a0<\/span><span title=\"1:17:24 - 1:17:31\" data-start=\"01:17:24.062\" data-end=\"01:17:30.690\" data-spk=\"0\" data-label=\"Jason\">85% of all Grocers right so you look at that and go oh good news bad news.<\/span><br \/><span title=\"1:17:31 - 1:17:43\" data-start=\"01:17:30.961\" data-end=\"01:17:42.564\" data-spk=\"0\" data-label=\"Jason\">They\u2019ve saturated the market they are they already have 85% of all grocers on their platform so they\u2019re not going to add a bunch of sellers but the seller but all the sellers will love them right that would be the.<\/span><br \/><span title=\"1:17:43 - 1:17:47\" data-start=\"01:17:42.913\" data-end=\"01:17:46.692\" data-spk=\"0\" data-label=\"Jason\">The favorable interpretation but the wrinkle here is.<\/span><br \/><span title=\"1:17:47 - 1:18:00\" data-start=\"01:17:46.867\" data-end=\"01:18:00.002\" data-spk=\"0\" data-label=\"Jason\">A bunch of the sellers that they\u2019re claiming have kind of already moved away from instacart right so included in the list of sellers on this Marketplace our Walmart.<\/span><br \/><span title=\"1:18:00 - 1:18:11\" data-start=\"01:18:00.363\" data-end=\"01:18:11.251\" data-spk=\"0\" data-label=\"Jason\">Kroger and Albertsons which cumulatively are the top three grocers in the market and I think together the three of them are over 50 percent of the market the.<\/span><br \/><span title=\"1:18:11 - 1:18:13\" data-start=\"01:18:11.420\" data-end=\"01:18:13.499\" data-spk=\"0\" data-label=\"Jason\">It\u2019s 1,400 retail banners.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:18:14]<\/small>\u00a0<span title=\"1:18:14 - 1:18:17\" data-start=\"01:18:13.529\" data-end=\"01:18:17.308\" data-spk=\"1\" data-label=\"Scot\">For 200 yeah 5500 advertisers house I\u2019ve got those.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:18:17]<\/small>\u00a0<span title=\"1:18:17 - 1:18:30\" data-start=\"01:18:17.008\" data-end=\"01:18:29.867\" data-spk=\"0\" data-label=\"Jason\">That\u2019s what I was worried about yeah so so 1400 retail banners representing 80 thousand stores representing 85% of the US grocery Market but again today Walmart Kroger and Albertsons are in that.<\/span><br \/><span title=\"1:18:30 - 1:18:38\" data-start=\"01:18:30.018\" data-end=\"01:18:37.649\" data-spk=\"0\" data-label=\"Jason\">That list and those are all grocers that are investing huge amounts of money in building their own capability and today,\u00a0<\/span><span title=\"1:18:38 - 1:18:47\" data-start=\"01:18:37.698\" data-end=\"01:18:46.729\" data-spk=\"0\" data-label=\"Jason\">that capability sits beside instacart or maybe in front of instacart and they\u2019re only using instacart as kind of overflow.<\/span><br \/><span title=\"1:18:47 - 1:18:53\" data-start=\"01:18:47.204\" data-end=\"01:18:53.104\" data-spk=\"0\" data-label=\"Jason\">But it\u2019s it\u2019s way less certain to me and there was not a lot of like.<\/span><\/p>\n<p><small>[1:18:54]<\/small>\u00a0<span title=\"1:18:54 - 1:19:07\" data-start=\"01:18:53.754\" data-end=\"01:19:07.238\" data-spk=\"0\" data-label=\"Jason\">You know confidence and stealing information in the s-1 to say oh we\u2019re going to be able to retain Kroger as a customer or we\u2019re going to be able to retain Albertsons as a customer and to me it\u2019s a big risk for their current business model.<\/span><br \/><span title=\"1:19:07 - 1:19:15\" data-start=\"01:19:07.364\" data-end=\"01:19:14.665\" data-spk=\"0\" data-label=\"Jason\">If they can\u2019t and a huge percent of those of the a huge portion of the eighty-five percent of the market share they\u2019re saying they have.<\/span><br \/><span title=\"1:19:15 - 1:19:25\" data-start=\"01:19:15.224\" data-end=\"01:19:25.283\" data-spk=\"0\" data-label=\"Jason\">Is those three companies and then after those three companies which have already expressed like clear intent to invest in their own capability there are other giant Grocers.<\/span><br \/><span title=\"1:19:25 - 1:19:36\" data-start=\"01:19:25.422\" data-end=\"01:19:35.655\" data-spk=\"0\" data-label=\"Jason\">That haven\u2019t expressed an interest but they need to write and so you and I\u2019m specifically thinking of like all the in Costco are two huge grocers in the US.<\/span><br \/><span title=\"1:19:36 - 1:19:41\" data-start=\"01:19:35.889\" data-end=\"01:19:41.153\" data-spk=\"0\" data-label=\"Jason\">You know are not very digitally mature and have not seem to want to invest a lot of there.<\/span><br \/><span title=\"1:19:41 - 1:19:55\" data-start=\"01:19:41.238\" data-end=\"01:19:55.190\" data-spk=\"0\" data-label=\"Jason\">Their own resources in digital but if they\u2019re going to be around in 20 years I\u2019m pretty confident that they\u2019re going to have to figure it out and it\u2019s not just going to be Outsourcing it to instacart so I look at a big chunk of those.<\/span><br \/><span title=\"1:19:55 - 1:19:59\" data-start=\"01:19:55.311\" data-end=\"01:19:58.597\" data-spk=\"0\" data-label=\"Jason\">Marketplace sellers on instacart and I go.<\/span><br \/><span title=\"1:19:59 - 1:20:09\" data-start=\"01:19:58.724\" data-end=\"01:20:09.221\" data-spk=\"0\" data-label=\"Jason\">Um that that is a little risky and you know a lot of their volume is probably concentrated in those sellers that are at risk and you go,\u00a0<\/span><span title=\"1:20:09 - 1:20:18\" data-start=\"01:20:09.294\" data-end=\"01:20:18.121\" data-spk=\"0\" data-label=\"Jason\">is there a business if all the big guys leave and it\u2019s just all the Independent Grocers there might be but the economics probably look a lot different than this.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:20:19]<\/small>\u00a0<span title=\"1:20:19 - 1:20:23\" data-start=\"01:20:18.560\" data-end=\"01:20:23.166\" data-spk=\"1\" data-label=\"Scot\">Very cool so you\u2019re going to are you going to be a buyer.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:20:23]<\/small>\u00a0<span title=\"1:20:23 - 1:20:24\" data-start=\"01:20:22.916\" data-end=\"01:20:24.388\" data-spk=\"0\" data-label=\"Jason\">I am.<\/span><\/p>\n<p><small>[1:20:26]<\/small>\u00a0<span title=\"1:20:26 - 1:20:36\" data-start=\"01:20:26.221\" data-end=\"01:20:35.835\" data-spk=\"0\" data-label=\"Jason\">Yeah yeah yeah if I could have gotten in her like I would love to be at the 76 or games\u00a0<\/span><span title=\"1:20:36 - 1:20:45\" data-start=\"01:20:35.728\" data-end=\"01:20:44.633\" data-spk=\"0\" data-label=\"Jason\">with my driven but I\u2019m not sure that the retail price like has some risk cooked into it because of that that problem now\u00a0<\/span><span title=\"1:20:45 - 1:20:59\" data-start=\"01:20:44.609\" data-end=\"01:20:59.018\" data-spk=\"0\" data-label=\"Jason\">again you know radials a decent little business and could could you know carrot services for instacart be a decent little business one day sure you know the counter argument if I\u2019m trying to be fair here is.<\/span><br \/><span title=\"1:20:59 - 1:21:11\" data-start=\"01:20:59.446\" data-end=\"01:21:10.989\" data-spk=\"0\" data-label=\"Jason\">What I think in instacart exec would say is hey Jason like we had two things we\u2019re the Outsource capability for some of these retailers that don\u2019t have that capability but we\u2019re also.<\/span><br \/><span title=\"1:21:11 - 1:21:20\" data-start=\"01:21:11.259\" data-end=\"01:21:19.774\" data-spk=\"0\" data-label=\"Jason\">Marketplace with a bunch of loyal customers and we\u2019re bringing customers and visits to Kroger which is why Kroger isn\u2019t gonna fire us.<\/span><\/p>\n<p><small>[1:21:20]<\/small>\u00a0<span title=\"1:21:20 - 1:21:23\" data-start=\"01:21:20.471\" data-end=\"01:21:22.959\" data-spk=\"0\" data-label=\"Jason\">Right but prettier Point like.<\/span><br \/><span title=\"1:21:24 - 1:21:35\" data-start=\"01:21:23.590\" data-end=\"01:21:35.259\" data-spk=\"0\" data-label=\"Jason\">Really where are they getting those customers right like they\u2019re not you know they\u2019re not making huge investment in sales and marketing they haven\u2019t like you know demonstrated some magical top of funnel capability to acquire,\u00a0<\/span><span title=\"1:21:35 - 1:21:47\" data-start=\"01:21:35.290\" data-end=\"01:21:47.397\" data-spk=\"0\" data-label=\"Jason\">in consumers like I would argue they\u2019re acquiring most of their primary acquisition strategy is to acquire great sellers that already have consumers and take over the that business for those those,\u00a0<\/span><span title=\"1:21:47 - 1:21:56\" data-start=\"01:21:47.410\" data-end=\"01:21:56.381\" data-spk=\"0\" data-label=\"Jason\">those banners so that that to me puts this this whole thing at risk like is there something I\u2019m missing about that Scott or does that at least.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:21:56]<\/small>\u00a0<span title=\"1:21:56 - 1:22:09\" data-start=\"01:21:56.472\" data-end=\"01:22:09.325\" data-spk=\"1\" data-label=\"Scot\">It\u2019s a risk you know they would probably argue they have data that says they\u2019re largely in criminal and my guess is the Grocer\u2019s aren\u2019t sophisticated enough to be able to run an analysis on that so yeah,\u00a0<\/span><span title=\"1:22:09 - 1:22:14\" data-start=\"01:22:09.403\" data-end=\"01:22:13.992\" data-spk=\"1\" data-label=\"Scot\">Walmart certainly is but not yeah you know gross has been right.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:22:14]<\/small>\u00a0<span title=\"1:22:14 - 1:22:15\" data-start=\"01:22:13.742\" data-end=\"01:22:14.835\" data-spk=\"0\" data-label=\"Jason\">The long tail of.<\/span><br \/><span title=\"1:22:15 - 1:22:25\" data-start=\"01:22:15.112\" data-end=\"01:22:24.588\" data-spk=\"0\" data-label=\"Jason\">Pretty pretty pretty thin and pretty like grocery is a super hard business that requires a lot of unique capabilities and the people that you know,\u00a0<\/span><span title=\"1:22:25 - 1:22:34\" data-start=\"01:22:24.642\" data-end=\"01:22:33.565\" data-spk=\"0\" data-label=\"Jason\">acquired those capabilities over 60 years are not necessarily the people you\u2019re going to expect to be the first fastest digital adopters\u00a0<\/span><span title=\"1:22:34 - 1:22:38\" data-start=\"01:22:33.536\" data-end=\"01:22:38.330\" data-spk=\"0\" data-label=\"Jason\">and like side note in favor of all the hard-working Grocers out there I mean.<\/span><br \/><span title=\"1:22:38 - 1:22:48\" data-start=\"01:22:38.463\" data-end=\"01:22:47.692\" data-spk=\"0\" data-label=\"Jason\">It\u2019s the one business that Amazon has invested billions in and can\u2019t figure out how to do properly right so so it is what gentlemanly hard.<\/span><br \/><span title=\"1:22:49 - 1:22:50\" data-start=\"01:22:48.757\" data-end=\"01:22:49.736\" data-spk=\"0\" data-label=\"Jason\">I do,\u00a0<\/span><span title=\"1:22:50 - 1:23:04\" data-start=\"01:22:49.814\" data-end=\"01:23:03.947\" data-spk=\"0\" data-label=\"Jason\">I did have a couple other tidbits on the if we\u2019re done talking about the giant elephant in the room that is their their seller concentration there were a couple other tidbits that jumped out at me in the ass one do you want to should we run down those real quick.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:23:04]<\/small>\u00a0<span title=\"1:23:04 - 1:23:06\" data-start=\"01:23:04.434\" data-end=\"01:23:05.575\" data-spk=\"1\" data-label=\"Scot\">Yeah far away.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:23:06]<\/small>\u00a0<span title=\"1:23:06 - 1:23:19\" data-start=\"01:23:05.564\" data-end=\"01:23:19.162\" data-spk=\"0\" data-label=\"Jason\">Yeah so there is another interesting part of the thing that I was surprised by which is instacart membership program so instacart has a membership program called instacart + and it turns out all this revenue is coming from members.<\/span><br \/><span title=\"1:23:19 - 1:23:28\" data-start=\"01:23:19.451\" data-end=\"01:23:27.533\" data-spk=\"0\" data-label=\"Jason\">Which again is another favorable Trend we saw that the cohort analysis was pretty favorable but.<\/span><br \/><span title=\"1:23:28 - 1:23:36\" data-start=\"01:23:27.803\" data-end=\"01:23:35.927\" data-spk=\"0\" data-label=\"Jason\">57% of instacart Revenue comes from people that pay a monthly or annual fee to get free.<\/span><br \/><span title=\"1:23:36 - 1:23:46\" data-start=\"01:23:36.102\" data-end=\"01:23:45.830\" data-spk=\"0\" data-label=\"Jason\">Shipping from instacart so that are members of this instacart plus program and 5.1 million of the 7.7 million active Shoppers are in the program.<\/span><\/p>\n<p><small>[1:23:46]<\/small>\u00a0<span title=\"1:23:46 - 1:23:56\" data-start=\"01:23:46.125\" data-end=\"01:23:55.775\" data-spk=\"0\" data-label=\"Jason\">And those those members spend disproportionately more like over 6X more than non-members spend so this is like.<\/span><br \/><span title=\"1:23:56 - 1:24:04\" data-start=\"01:23:56.016\" data-end=\"01:24:03.557\" data-spk=\"0\" data-label=\"Jason\">You spend your your monthly fee or I think it\u2019s like a hundred dollars annually and for that you get unlimited Fleet free delivery.<\/span><br \/><span title=\"1:24:04 - 1:24:13\" data-start=\"01:24:03.732\" data-end=\"01:24:12.637\" data-spk=\"0\" data-label=\"Jason\">You get reduced service fees you get credit back on eligible pick up orders like if you if you do curbside pickup and you get some other exclusive benefits so.<\/span><br \/><span title=\"1:24:13 - 1:24:20\" data-start=\"01:24:12.751\" data-end=\"01:24:19.878\" data-spk=\"0\" data-label=\"Jason\">They have kind of monetized a membership program so you could think of this as a very baby Costco but that.<\/span><br \/><span title=\"1:24:20 - 1:24:27\" data-start=\"01:24:20.088\" data-end=\"01:24:27.070\" data-spk=\"0\" data-label=\"Jason\">If this all scales that\u2019s another potential interesting Revenue scheme.<\/span><br \/><span title=\"1:24:27 - 1:24:33\" data-start=\"01:24:27.293\" data-end=\"01:24:32.725\" data-spk=\"0\" data-label=\"Jason\">I did mention I was pretty excited they had to kind of make the pitch for digital Grocery and so.<\/span><br \/><span title=\"1:24:33 - 1:24:38\" data-start=\"01:24:32.942\" data-end=\"01:24:38.289\" data-spk=\"0\" data-label=\"Jason\">You know they do talk a lot about a groceries accelerated to 12%.<\/span><br \/><span title=\"1:24:39 - 1:24:44\" data-start=\"01:24:38.554\" data-end=\"01:24:43.866\" data-spk=\"0\" data-label=\"Jason\">Digital groceries accelerated 12 percent penetration that.<\/span><\/p>\n<p><small>[1:24:44]<\/small>\u00a0<span title=\"1:24:44 - 1:24:52\" data-start=\"01:24:44.197\" data-end=\"01:24:52.200\" data-spk=\"0\" data-label=\"Jason\">That has accelerated a lot in the last three years as a result of Cove Ed and they spend a lot of time talking about the distinction between.<\/span><br \/><span title=\"1:24:52 - 1:25:00\" data-start=\"01:24:52.483\" data-end=\"01:24:59.946\" data-spk=\"0\" data-label=\"Jason\">Delivery of groceries and pick up of groceries and instacart plays in both but here\u2019s kind of an interesting thing.<\/span><\/p>\n<p><small>[1:25:01]<\/small>\u00a0<span title=\"1:25:01 - 1:25:07\" data-start=\"01:25:01.070\" data-end=\"01:25:06.736\" data-spk=\"0\" data-label=\"Jason\">About it\u2019s a it\u2019s near 50\/50 split right now the.<\/span><br \/><span title=\"1:25:07 - 1:25:16\" data-start=\"01:25:07.079\" data-end=\"01:25:16.381\" data-spk=\"0\" data-label=\"Jason\">Grab the delivery orders instacart is primarily competing with other digitally native digital Grocers so they\u2019re competing with.<\/span><br \/><span title=\"1:25:17 - 1:25:29\" data-start=\"01:25:16.616\" data-end=\"01:25:28.940\" data-spk=\"0\" data-label=\"Jason\">Um shipped which is owned by Target they\u2019re competing with doordash and ubereats which if you haven\u2019t been following it both have pivoted into grocery they\u2019re competing with go Puff.<\/span><br \/><span title=\"1:25:29 - 1:25:39\" data-start=\"01:25:29.199\" data-end=\"01:25:38.903\" data-spk=\"0\" data-label=\"Jason\">And so these are other like digitally native companies that kind of didn\u2019t exist in the space until until digital came along but the other half of the business is pick up.<\/span><br \/><span title=\"1:25:39 - 1:25:46\" data-start=\"01:25:38.988\" data-end=\"01:25:46.072\" data-spk=\"0\" data-label=\"Jason\">And 95% of all the pickup business is getting fulfilled by a traditional brick-and-mortar Grocery Store where the parking lot.<\/span><br \/><span title=\"1:25:46 - 1:25:53\" data-start=\"01:25:46.361\" data-end=\"01:25:52.904\" data-spk=\"0\" data-label=\"Jason\">And so like there is you know there are these like interesting bifurcated segments where.<\/span><br \/><span title=\"1:25:53 - 1:26:02\" data-start=\"01:25:53.067\" data-end=\"01:26:02.140\" data-spk=\"0\" data-label=\"Jason\">You know some of instacart Revenue they\u2019re competing against you know Amazon Uber and doordash and other parts of their business there.<\/span><br \/><span title=\"1:26:02 - 1:26:12\" data-start=\"01:26:02.273\" data-end=\"01:26:12.181\" data-spk=\"0\" data-label=\"Jason\">They\u2019re competing for customers against Walmart Kroger and Albertsons so I found that kind of a interesting evaluation.<\/span><\/p>\n<p><small>[1:26:13]<\/small>\u00a0<span title=\"1:26:13 - 1:26:22\" data-start=\"01:26:13.287\" data-end=\"01:26:21.748\" data-spk=\"0\" data-label=\"Jason\">You know again I think a lot of people might have been surprised and asked someone to see that they\u2019re competing with with Uber and doordash.<\/span><\/p>\n<p><small>[1:26:22]<\/small>\u00a0<span title=\"1:26:22 - 1:26:35\" data-start=\"01:26:22.415\" data-end=\"01:26:35.334\" data-spk=\"0\" data-label=\"Jason\">And then the other thing that I found interesting and this might be obligatory now but I think in instacart is case is kind of true they spent a fair amount of time talking about how they\u2019re leaning into a.<\/span><br \/><span title=\"1:26:36 - 1:26:41\" data-start=\"01:26:35.749\" data-end=\"01:26:40.995\" data-spk=\"0\" data-label=\"Jason\">And so they both you know we\u2019re very early adopters of like.<\/span><br \/><span title=\"1:26:41 - 1:26:47\" data-start=\"01:26:41.422\" data-end=\"01:26:46.733\" data-spk=\"0\" data-label=\"Jason\">Licensing open a eyes large language model to have a.<\/span><br \/><span title=\"1:26:47 - 1:26:53\" data-start=\"01:26:46.842\" data-end=\"01:26:53.494\" data-spk=\"0\" data-label=\"Jason\">In a i chat assistant on instacart app and website\u00a0<\/span><span title=\"1:26:53 - 1:26:59\" data-start=\"01:26:53.434\" data-end=\"01:26:59.004\" data-spk=\"0\" data-label=\"Jason\">they were one of the they were launched partner that had a plug-in on opening eyes website\u00a0<\/span><span title=\"1:26:59 - 1:27:11\" data-start=\"01:26:58.872\" data-end=\"01:27:10.794\" data-spk=\"0\" data-label=\"Jason\">to let you order order groceries from Chad CPT and they\u2019ve done at least like for Acquisitions in the like AI in ableman space so they\u2019ve acquired companies.<\/span><br \/><span title=\"1:27:11 - 1:27:20\" data-start=\"01:27:10.944\" data-end=\"01:27:20.366\" data-spk=\"0\" data-label=\"Jason\">Like Rosie which is AI pricing and dynamic pricing they acquired ever site which is a promotion engine\u00a0<\/span><span title=\"1:27:20 - 1:27:25\" data-start=\"01:27:20.318\" data-end=\"01:27:25.318\" data-spk=\"0\" data-label=\"Jason\">the Caper food storm is a software company that.<\/span><br \/><span title=\"1:27:26 - 1:27:33\" data-start=\"01:27:25.889\" data-end=\"01:27:33.262\" data-spk=\"0\" data-label=\"Jason\">Doesn\u2019t like kiosk software that they can sell to retailers as part of their carrot services so.<\/span><br \/><span title=\"1:27:34 - 1:27:47\" data-start=\"01:27:33.508\" data-end=\"01:27:47.052\" data-spk=\"0\" data-label=\"Jason\">That I don\u2019t know you tell me why like I suspect that every S1 we do see for the next 18 months is going to have to have an AI section and it was interesting to read about like what they\u2019ve done in the AI space.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:27:47]<\/small>\u00a0<span title=\"1:27:47 - 1:27:58\" data-start=\"01:27:47.023\" data-end=\"01:27:57.911\" data-spk=\"1\" data-label=\"Scot\">Oh yeah everyone like yeah salesforce\u2019s spending all their time with this giant Matrix of how AI is getting integrated into every product everyone is trying to ride the wave but video is making all the money\u00a0<\/span><span title=\"1:27:58 - 1:28:04\" data-start=\"01:27:57.767\" data-end=\"01:28:03.842\" data-spk=\"1\" data-label=\"Scot\">it\u2019s a they is off topic but they printed just incredible quarter of just nothing but.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:28:04]<\/small>\u00a0<span title=\"1:28:04 - 1:28:07\" data-start=\"01:28:04.497\" data-end=\"01:28:06.780\" data-spk=\"0\" data-label=\"Jason\">Yeah way more valuable than Intel.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:28:06]<\/small>\u00a0<span title=\"1:28:06 - 1:28:10\" data-start=\"01:28:05.819\" data-end=\"01:28:10.007\" data-spk=\"1\" data-label=\"Scot\">Billion of profit that just showed up at the door is crazy.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:28:11]<\/small>\u00a0<span title=\"1:28:11 - 1:28:22\" data-start=\"01:28:10.668\" data-end=\"01:28:21.514\" data-spk=\"0\" data-label=\"Jason\">Yeah yeah that\u2019s a great story for another episode but Scott anything else that we want to cover in this first look at instacart S1.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:28:22]<\/small>\u00a0<span title=\"1:28:22 - 1:28:24\" data-start=\"01:28:21.713\" data-end=\"01:28:23.900\" data-spk=\"1\" data-label=\"Scot\">Know our brand promise is\u00a0<\/span><span title=\"1:28:24 - 1:28:38\" data-start=\"01:28:23.744\" data-end=\"01:28:38.135\" data-spk=\"1\" data-label=\"Scot\">to bring the heat on these and a deep dive this I lost track when we started but this is a very deep dive so we appreciate you guys sticking with us to the end there there was a lot of good stuff on here and we really only got to the tip of the iceberg.<\/span><br \/><span title=\"1:28:38 - 1:28:53\" data-start=\"01:28:38.382\" data-end=\"01:28:53.278\" data-spk=\"1\" data-label=\"Scot\">I do encourage you to print out the those relevant pages of this one we talked about 10 12 12 24 or 25 that\u2019s the really good stuff and it\u2019s worth a read if you\u2019re in the space into this Market as we are which I\u00a0<\/span><span title=\"1:28:53 - 1:28:57\" data-start=\"01:28:53.123\" data-end=\"01:28:56.722\" data-spk=\"1\" data-label=\"Scot\">I\u2019m going to guess a lot of you are also pretty geeky about this stuff.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:28:57]<\/small>\u00a0<span title=\"1:28:57 - 1:29:06\" data-start=\"01:28:56.938\" data-end=\"01:29:06.132\" data-spk=\"0\" data-label=\"Jason\">Yeah yeah and so I will definitely put a link to the s-1 in there and until next time happy commercing.<\/span><\/p>\n<\/div>\n<p><p><a href=\"https:\/\/dmsretail.com\/online-workshops-list\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-496\" src=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\" alt=\"Retail Online Training\" width=\"729\" height=\"91\" srcset=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png 729w, https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90-300x37.png 300w\" sizes=\"auto, (max-width: 729px) 100vw, 729px\" \/><\/a><\/p><br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A weekly podcast with the latest e-commerce news and events. Episode 309 is a complete breakdown of Instacart\u2019s S-1 filing. Subscribe: ????? Warning: Given the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1121,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-10293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-podcasts"],"_links":{"self":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/10293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/comments?post=10293"}],"version-history":[{"count":0,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/10293\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media\/1121"}],"wp:attachment":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media?parent=10293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/categories?post=10293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/tags?post=10293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}