Lockdowns and community quarantine restrictions brought by COVID-19 pandemic have catapulted delivery apps to exponential growth over the past year. Newbie JOKR hopes to penetrate the market with its unique take on delivery – it’s focusing on “hyperlocal” products.
New as it may be on the market, the people behind JOKR surely know what they’re doing. After all, the JOKR CEO and founder is none other than German entrepreneur Ralf Wenzel. Yup, the same person who founded Foodpanda and helped grow Delivery Hero and Softbank.
JOKR Mexico, Lima, and Sao Paulo rolled out earlier, and New York and Bogota are next in line. Also in the works is JOKR launches in other parts of Latin America and Europe.
Talking to Reuters in April, Wenzel said they’re trying to build what he calls “Amazon on steroids.” The German startup founder said they aim to do so by pairing a new retail tactic with convenience on demand.
Delivery Hero acquired Foodpanda In 2016, and the former is now a blue-chip share index company in Germany. With his experience in the industry, many experts are looking at how Wenzel would grow JOKR into a unicorn.
A Unique Take on Delivery Service
With dozens of delivery apps already positioned in the market, what makes JOKR app stand out from the rest?
For one, the platform focuses on hyper-local products delivered using a network of mico-fulfillment centers. As for storage, the startup uses a network of small warehouse units. Most of these spaces are retail spaces now unused due to the global health crisis.
In a way, this storage tactic offers a win-win solution. For one, owners of real estate who went out of business due to the health crisis can now earn income. At the same time, the startup doesn’t need to invest a lot in real estate.
Their real estate requirements are also pretty simple. It must have 100amp Power, have a ground floor and commercial area, and should measure around 200 to 250 square meters.
As for local products, suppliers would only need to reach out to the brand to get their products listed.
Unlike Wenzel’s previous ventures, JOKR offers a vast range of retail products. Also, it’s crucial to note that the platform doesn’t serve as a marketplace but as a retailer. By cutting out the middleman and buying from suppliers directly, the platform brings down the cost. As a result, it can offer the product at a lower rate.
Users would only need to download the app, select products, and wait for it on their doorstep. The simple model hits three birds with one stone – it makes shopping simpler, lessens waste, and supports small ventures.
Just like other apps of its kind, riders are crucial in JOKR’s business model. That said, they make the platform a fun gig for riders. On their website, they describe the gig as more than just a job but a start of a career. The startup also mentions flexibility, equipment, as well as rewards.
Growth Potential of JOKR
Wenzel left his post at Softbank to build JOKR. He took on the new project with his core team from previous projects. That said, it’s easy to assume that Softbank or even Delivery Hero’s backers are also signing up to be part of JOKR funding.
However, the founder refused to spill the beans on the startup’s funding backers. The only thing Wenzel revealed was that he and his team got skin on the game. In fact, not only are they investing from their own pockets, but they’re also foregoing salaries, at least while the venture is still trying to get off the ground.
JOKR valuation isn’t readily available to the public. But Pitchbook lists the following VCs as its “former investors” – Banana Capital, HV Capital, Market One Capital, and Tiger Global Management. SoftBank is also listed as an investor. Despite this info, it’s unclear how much JOKR startup has raised.
HV Capital partner Alexander Joel-Carbonell previously said in an interview that JOKR has a “best-in-class” and an experienced team of serial entrepreneurs. He also expressed confidence in how the team is equipped to transform the global on-demand retail industry.
Aside from Wenzel, the startup’s C-suite includes co-founder and COO Aspa Lekk and co-founders German Peralta and Tyler Trerotola.
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