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Notes on the rise of Southeast Asia super apps

This is from a Morgan Stanley client report. Not sure if I’m allowed to share it publicly but if you want to read it, please email or twitters me.

Tanzania 2020. Car Market lost 85% both in April and May
Sunday June 28, 2020

Tanzanian Vehicles Market is falling down in the 2020. The already negative trend in place has been enhanced by Covid19 economic effect. Following a 12% lost reported for the first quarter, in April and May sales fell down 85%.Economic EnvironmentThe fallout from the Covid-19 pandemic seems to be taking its toll on the economy in […]

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NOTES:

Europe. Best selling cars ranking in 2020
Wednesday May 20, 2020

Europe best-selling cars ranking in 2020 within 44 markets in the continent, from Portugal to Russia. The Volkswagen Golf is still on top, ahead of the Renault Clio and the Volkswagen Polo. Outstanding performance scored by the Volkswagen T-Cross despite the harsh environment.The post Europe. Best selling cars ranking in 2020 appeared first on https://focus2move.com.

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We estimate the ASEAN Super App market will be worth up to ~US$99bn in Enterprise Value by 2025. We see E-commerce (~US$40bn) being the largest component, followed by Digital Banking (~US$18bn), Fintech (~US$17bn), Food Delivery (~US$15bn) and Ridesharing (~US$9bn).

Fintech:1. Payments (per fee transaction)2. Insurance / Investments (referral fees, partner with existing platforms)3. Remittance (small spread on FX)*Bank incumbents are most at-risk and will fight back

Top contenders1. Grab2. Gojek3. Sea4. Lazada5. Carousell

Why People Are Turning to Car Title Loans
Wednesday May 06, 2020

Raising finance when you are in need of cash can be a real headache. While there are various forms of borrowing available, you may find that you are only eligible to apply for a limited range. This could be due to damaged credit, your income and outgoings, and your personal and financial situations.The post Why […]

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Super app rise affecting 4 key areas1. Ridesharing –> car ownership2. E-commerce –> retailers3. E-commerce –> FMCG4. Food delivery –> QSRs

How large is the ASEAN super app addressable market and what are the key drivers?Our View: We see a revenue opportunity of US$23bn by 2025, driven by ridesharing, food delivery, fintech, digital banking and e-commerce.

Tencent is most successful global super app. They are in 7 verticals:1. Social (Wechat)2. Gaming3. Fintech (TenPay)4. E-commerce (Dianping, JD, 58)5. Ridesharing (Didi)6. Banking (WeBank)7. Entertainment (Tencent Pictures)

What do the unit economics look like and when could Super App break even?Our View: Reduction in Sales and Marketing Expenses is key to drive profitability in all five revenue drivers

Investment in ASEAN is over 2x higher on per pop vs. India … but still only 40% of the investment in China

Time to break even1. Ridesharing averages 10 years2. Food delivery averages 123. Ecommerce averages 5-7 (Amazon took 8 years, JD took 10 years, Shopee expected in 7 years)

Digital Bank value prop:1. Brand (modern, millennial)2. Low cost distribution (mobile banking)3. Low cost of credit (use AI)4. New product offerings

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