Business Model

The Group operates the leading online marketplace in Poland, Allegro.pl, and the leading price comparison platform in Poland, Ceneo.pl. Allegro.pl and Ceneo.pl are the Group’s key operating companies and are both entities incorporated under Polish law. The Group also operates eBilet.pl, the leading event ticket sales site in Poland. The Company has been listed on the Warsaw Stock Exchange since 12 October 2020.

^{1 As of 31 December 2021, the Group comprised of Allegro.eu S.A. with its registered office in Luxembourg; the financial company Adinan Midco S.a.r.L. with its registered office in Luxembourg (currently Allegro Treasury S.a.r.L.), and companies operating in Poland: Allegro.pl sp. z o.o., Allegro Pay sp. z o.o., Allegro Finance sp. z o.o., Ceneo.pl sp. z o.o., eBilet Polska sp. z o.o., OpenNet.pl sp. z o.o., X-press Couriers sp. z o.o. and Skynet Customs Brokers sp. z o.o. Each of the Polish Operating Companies and their subsidiaries has its registered office in Poland.}

[GRI 102-10]

On 8 October 2021, Allegro acquired X-press Couriers Sp. z o.o. (“XPC”, “X-press Couriers”), one of its same-day delivery courier partners. X-press Couriers is a local delivery company currently servicing predominantly same-day delivery parcels within and between Poland’s nine largest metropolitan areas. Allegro has been working with XPC for the last two years. The transaction is intended to expand the range of services offered by Allegro’s One Fulfillment One Box, Allegro’s proprietary locker infrastructure. It is expected that scaling these capabilities and rolling out to further big cities will enhance customer experience by the continued shortening of delivery times. The transaction also included the acquisition of Skynet Customs Brokers Sp. z o.o. (“SCB”), a customs broker agency, which is part of the X-press Couriers. Allegro expects to leverage SCB’s customs competencies to expand and further improve the Group’s services for International Sellers, e.g. by providing bonded warehouse and customs broker agency services for non-EU merchants under Allegro Fulfillment. On 1 April 2022, XPC was merged with Allegro.pl, thereby ceasing to exist as a separate legal entity. SCB became a direct subsidiary of Allegro.pl.

Merchants on the Group’s e-commerce marketplace Allegro.pl sell across a variety of categories including automotive, home & garden, books, media, collections & art, fashion & shoes, electronics, kids, health & beauty, sports & travel, and supermarket. Merchants primarily sell new products to buyers on the Group’s e-commerce marketplace in the business-to-consumer business model (“B2C”), while consumer-to consumer (“C2C”) transactions and classifieds is a relatively small but important element of operations as it helps drive user engagement.

The Group’s e-commerce marketplace generates revenue primarily through facilitating 3P transactions between buyers and merchants and charging merchants commissions and other related fees. The Group provides a range of supporting services to merchants to grow their sales using the platform, such as tools to monitor sales performance and manage offer competitiveness, integration with a range of payment providers, standardized delivery solutions in cooperation with national delivery service partners, and free-delivery programmes, sales incentives for quality performance, marketing campaign support and merchant finance solutions.

In addition, the Group earns advertising revenue by providing various types of advertising opportunities to brands and merchants on the platform. The Group also operates its own limited-scale retail business secondary to its intermediary sales services, representing 0.9% of the Group’s gross merchandise value (“GMV”) for 12 months ended 31 December 2021. In particular, the aim of this operation is to remedy missing services available as part of the intermediary sales model.

The Group has also established its own proprietary consumer finance subsidiary, Allegro Pay, which advances consumer loans to active buyers to facilitate their purchases on the Allegro platform and user engagement.

Ceneo.pl is a Polish multi-category price comparison site. It is an established brand that attracted an average of 14 million monthly users in 2021 (source: Similarweb). As of December 2021, around 23,000 online retail stores were registered on Ceneo.pl, and information on 33 million product offers was available to consumers using the price comparison service.

We also operate eBilet, a Polish event ticket sales site facilitating sales of a broad range of entertainment, cultural, family, and sports events. After three quarters of 2020 and the first half of 2021 being severely disrupted by COVID-19 restrictions on public events, eBilet began to rebuild its sales in the second half of 2021 and sold a total of 1.3 million tickets for the full 2021 year (vs. 0.7 million tickets in 2020), up 80.7% YoY and back to 57.2% of pre-COVID levels of 2.3 million tickets sold in 2019.

At the end of 2021, the Group also comprised a number of other entities, including: Opennet.pl, a technology solutions provider for logistics, including APMs (automated parcel machines); X-press Couriers, a same-day courier delivery company, and SkyNet Customers Brokers, a customs broker agency (the company became a direct Allegro.pl subsidiary on 1 April 2022).

We also generate revenue from data processing, hosting and related activities; other information technology and computer service activities; computer facilities management activities; software-related activities, and computer consultancy activities.