Avo CEO: “The current e-commerce model does not work”

“The current e-commerce model does not work, both for the consumer and for e-commerce platforms,” said Dekel Valtzer, Avo co-founder and CEO, speaking at Calcalist and Bank Lemi’s Mind the Tech NY 2021 conference. “Every e-commerce company serves a single customer at a time. Every e-commerce company operates in the B2C model. It means that if they have 100 different customers, somebody needs to drive and deliver 100 different packages to 100 different addresses in order to serve those people. That is obviously, extremely expensive, inefficient, and horrible for the environment.”

The customers, he said, on the other hand, encounter, “delivery fees, service fees, tipping, markups, suddenly we need to wait a day or two, unlike just going to the store and grabbing whatever we want. We need to meet certain minimums.”

That is why Avo has a different approach. “Instead of serving a single customer at a time, we serve a whole building at once. We chose the B2B2C model,” arguing it enables the company to remove pain points from both the e-commerce platform and customers’ perspectives.

Watch the full presentation in the video above