LETTER TO INVESTORS
Kollect was founded by three very different people.
Our company mission is ”to create simple ways to have all waste collected and recycled globally, always exceeding customer expectations.”
In today's world, operating with a genuine mission is essential to establishing an enduring brand and successful business. Over the last 3 years, we've made early progress towards our two-part vision, but the opportunity that exists for Kollect in the waste market is huge. Everyone generates waste and yet the reality is that while all other industry sectors are being disrupted the waste industry remains relatively offline. Globally, this is one of the largest un-tapped markets left. By Kollect’s estimations only 0.2% of waste activities happens online while globally e-commerce spending will total 14.6% percent of all consumer spending by 2020.
Step one of our company mission, creating “simple ways to have all waste collected and recycled” is accomplished by allowing customers find us easily, get a price and book in a job at a date and time that suits them, paying online or using cash - the customer is totally in charge of their waste collection needs. Our continued focus on improving the customer journey, in which a customer thinks of a waste need and then immediately tries to fulfill it as quickly as possible typically through a digital transaction. Market waste needs may vary from country to country, as will regulation and we may need to change our offering to meet the customer and regularity requirements, but the premise never changes, people always have a need for waste to be removed.
The second part of our vison was “to always exceed customer expectations. Good companies make profits, but great companies also win people over. We have built a company based on a core set of 4 values: Honesty, WOW service, Responsiveness and a Can-do Attitude. Our values ensure
1) We can successfully scale the platform using third party providers. Over the past 3 years we have gained unique experience in managing the customer journey from booking to fulfilment. This experience is hard fought.
2) We can attract and retain staff that fit our culture and believe in our mission
3) We always “WOW” our customers. “Wowing” is essentially obsessing on the customer. Here we focus innovation on continually adding value to our customers.
Kollects values means customers don’t perceive us as a technology company but as a community of people that actually care. We don’t have a customer base, we have a fan base who are passionate and dedicated supporters of our company. They are highly engaged on our platform and give us constructive and honest feedback which we always listen to and acknowledge. We work hard at being a top rated platform with hundreds of five star reviews and we obsesses on customer experience.
The Company’s strategy to date - and expected into the future - is to grow the customer base (and recurring revenues) at the expense of short-term profitability by reinvesting cash flows into customer acquisition and continually improving customer experience. While the costs of acquiring customers are front-loaded, the benefits are spread over a number of years with significant long-term cash flows to the Company.
Total focus on customer on boarding and customer experience will help us protect and grow market share and will be as much today’s growth engine as all of Kollect’s other marketing activities. If the customers are happy, the value for shareholders will follow. Making money is a result, not a goal. We understand that by adding value for the customers we are actually creating long-term shareholder value. We also understand the fundamental measure of our success will be the shareholder value we create over the long term.
Kollects business model is only scratching the surface when it comes to the value we can add to our customers and our waste partners through data, technology, connections and how we can use the vast amounts of data to customize their experience. As we keep innovating, each day, the opportunity grows exponentially. We didn’t set out with this grand plan, we only added the word global to our mission after one year in the business and, having realised that the problems we are addressing here, exists everywhere. We do things differently because we see things differently and while we have made great strides our journey is just beginning. We're proud of the what we have achieved to date but even more excited by where the business we will be in 5 years’ time.
We really do believe that we can improve the waste industry, one city at a time.
John O' Connor, CEO.