David Rosenthal: belief

Transcript context

…Yeah. I mess something up on the Shopify episode that I want to talk about. That is our last episode not including the quick take that we took on DoorDash. That was Shopify actually powered $41 billion of sales last year, not $14 billion as discussed towards the end of the episode. That $14 billion number that we talked about was the fourth quarter number. I guess we way discredited the incredible amount of commerce that Shopify powers. While this changes the analysis of the value captured that we did at the end of the episode, where Shopify actually only captures 2½% of the merchant sales as their own revenue, not the 7%, which admittedly is very different, I don’t think it changes the overall sentiment that we had on the company as discussed in the episode. Any thoughts on that, David? The only thing I’d add, especially given this episode and we’re talking about the platform that Google Maps has built and the ability for empowering companies to be built on that platform, I’m starting to think Shopify actually has a similar opportunity that you could think about. I think you might be able to build really big companies that use Shopify and Shopify’s customers as a platform and in particular Shopify fulfillment that was just launched, which is not them doing their own fulfillment. It is a wide-open door for new logistics and fulfillment providers to come in and serve all of Shopify’s customers with a very easy distribution channel and customer acquisition. I’m even more bullish on Shopify’s potential as a platform. Yup, very much agree. Interestingly, that’s predicated on their being a huge totally addressable market out there. If you think about this, Shopify is not a marketplace business. It’s not a [...], but if you think about it this way, they capture 2½% of the value that they create as their own revenue. If you think about Uber, Uber captures close to 30% of the value that they create as revenue for themselves in the form of a take rate. That marketplace is a signed where the platform itself is doing a lot of the work. If you look at Airbnb marketplace assist, do you know what the take rate there is, David?…

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