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OLX Group Prod Tech 2019 Keynote: Asia's Tech Giants

- Scaling across multiple properties while centralising capabilities
- How to decide what to centralise / decentralise?
- Alibaba & Grab: How do they scale across multiple commerce sites?

- SuperApps in China and Southeast Asia
- Why / why not go the SuperApp approach?
- WeChat & Grab: SuperApps of Asia

- Case Study: Alibaba’s playbook for integrating acquisitions (Lazada and Daraz)
- What were the key tactics and priorities?
- Lessons learnt

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OLX Group Prod Tech 2019 Keynote: Asia's Tech Giants

  1. 1. Asia’s Tech Giants How they Scale and the SuperApp Strategy OLX Group Prod Tech 2019 Keynote
  2. 2. About me § Lead Data Scientist @ health-tech startup - Early detection of preventable diseases § Previously: VP, Data Science @ Lazada - E-commerce ML systems - Facilitated integration with Alibaba § Even earlier: Data Scientist @ IBM - Job recommendation engines
  3. 3. Topics § Platform: Multiple Properties, Centralized Capabilities - Case Study: Alibaba & Grab - What to centralize / localize? § SuperApps: China and Southeast Asia - Case Study: WeChat & Grab - Why (not) SuperApp? § Alibaba’s integration of acquisitions - Case Study: Lazada & Daraz
  4. 4. Platform: Multiple Properties; Centralized Capabilities Alibaba & Grab
  5. 5. What is Alibaba?
  6. 6. Alibaba: From E-Commerce to Ecosystem
  7. 7. Alibaba’s History § Founded in 1999 § Started as e-commerce § Now—infrastructure for e-commerce
  8. 8. Centralized: Business
  9. 9. Centralized: Capabilities
  10. 10. Capabilities § Infrastructure § Tracker (Web / App) § Data Lake & Metadata § Cross Domain User Profiles
  11. 11. Platform / Tools § Seller center and tools § Internal project tooling § Data platform § ML Tooling (PAI, Recos, etc.)
  12. 12. Guidelines § Common Data Model § Data Science Methodology § Product Strategy
  13. 13. What is localized?
  14. 14. Local Context § App Design and Development § Data Science (Campaigns, Fraud, Content Enrichment)
  15. 15. Alibaba’s data synergies
  16. 16. Why Alibaba cares so much about data § Personalization across properties § Advertising performance § Machine Learning
  17. 17. Grab: Southeast Asia’s Largest Unicorn
  18. 18. Grab’s History § Started in 2012 as ride-hailing app § Uber entered South-East Asia in 2013 § 5 year battle; each lost hundreds of millions—Uber invested 700 mil § 2018, Uber gave up, for 27.5% of Grab
  19. 19. A Tale of Two Tech Families
  20. 20. Dedicated Business Family § Transportation § Payments § Food
  21. 21. Platform & Tooling Family § Infrastructure § Tracking § Data § Common modules / SDK
  22. 22. Grab’s hyper-localization
  23. 23. 1 App, 8 Countries § Different for each market § GrabBike in VN and PH, buses in SG § On-demand groceries, GrabAssistant § Highly responsive
  24. 24. Hey Uber, I’m more local than you
  25. 25. Making users family: My VN experience
  26. 26. Framework: Centralized vs Localized
  27. 27. Centralized § Reliability and Standards § Economies of Scale § Long-term Planning Localized § Local Context § Speed and Responsiveness § Compliance with local regulations
  28. 28. SuperApps in China & Southeast Asia WeChat & Grab
  29. 29. What is a SuperApp?
  30. 30. Strategy: Scale fast with users’ buy-in
  31. 31. Tactic: Let a thousand flowers bloom
  32. 32. SuperApp -> OS
  33. 33. Why SuperApp?
  34. 34. Customers: Convenience
  35. 35. Suppliers: Constant Income
  36. 36. Companies: Domination
  37. 37. WeChat: 1,000,000 apps in 1
  38. 38. WeChat’s History § Launched in 2011 by TenCent § Currently, 800+ million MAU § >1 million miniapps
  39. 39. OS for China § Users can get by with only WeChat § $$$ for everything (bills, red packet) § Messaging, Social, Food, Commute § (Almost) all government services
  40. 40. Grab: Three-legged stool
  41. 41. Three pillars § Transportation (logistics backbone) § Payments (transaction fees) § Food (DAU)
  42. 42. Entry point to user base
  43. 43. Collaboration with partners § Hotels via Agoda § Video via Hooq § Ticketing via BookMyShow § Groceries via HappyFresh
  44. 44. Why (not) SuperApp? East vs. West
  45. 45. Why SuperApp in China and SEA?
  46. 46. No app distribution channels
  47. 47. Want users? Give them money
  48. 48. Parent App == Distribution Channel
  49. 49. Keeping newly acquired users
  50. 50. Why not in the US?
  51. 51. Wide internet access before smartphones
  52. 52. Giants quick to shift to mobile
  53. 53. Strict regulations in the US
  54. 54. Privacy concerns
  55. 55. In US, the opposite happens—unbundling
  56. 56. Unbundling of Craigslist
  57. 57. Other giants unbundling § Facebook - Paper and Messenger § Google - Drive -> Sheets, Slides, Docs
  58. 58. Unbundling in China too § TaoBao was first commerce SuperApp § Unbundled into TMall (high end) and Juhuasuan (wholesale) § Recently losing out to niche apps Marketplace Brands Group Buying
  59. 59. Two lens to view SuperApps and Platforms
  60. 60. Time Performance ___________ __________ _____________ Technology Basis of Competition _____
  61. 61. Time Performance Functionality __________ _____________ Technology Basis of Competition _____
  62. 62. Time Performance Functionality Reliability _____________ Technology Basis of Competition _____
  63. 63. Time Performance Functionality Reliability Convenience Technology Basis of Competition _____
  64. 64. Time Performance Functionality Reliability Convenience Technology Basis of Competition Price
  65. 65. SuperApps == Convenience
  66. 66. Time Performance Functionality Reliability Convenience PriceTechnology Adoption Lifecycle Early Adopters Early Majority Late Majority Laggards Innovators
  67. 67. Overshooting the market Overshooting the M arket
  68. 68. Why unbundle? Spectrum of user needs
  69. 69. 4 Factors for a Monopoly § Tech (10x better) § Economies of Scale (Platform strategy) § Network effects (Services & contacts) § Branding (Trusted brand)
  70. 70. To bundle § Easier customer acquisition § Network effect of services § Adoption of underlying backbone (e.g., payments) To unbundle § Simpler, faster, specialized § Faster iteration / innovation § Catered to user groups
  71. 71. Alibaba’s Acquisition Playbook Lessons from Lazada and Daraz
  72. 72. Testing the waters: Seller Center
  73. 73. The next wave: Project Voyager
  74. 74. First, Standardization § Infrastructure (Alicloud) § Data (Platform, Data Lake, CDM) § Tracker § Project Tools
  75. 75. Next, Copy + Paste § Talent § Use cases § Machine Learning
  76. 76. Key Takeaways From what’s happening in China and South-east Asia
  77. 77. How Asia and SEA has evolved § Platformization § SuperApps (Payments, Logistics, Food) § Unbundling has started(?)
  78. 78. Thank you! eugene@eugeneyan.com

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