Pete Shudari's questions to Sea Ltd (SE) leadership • Q4 2024
Question
Pete Shudari from KBC asked about e-commerce logistics, specifically if there are operational targets for sub-1-day delivery and whether faster delivery speeds are increasing order frequency. He also questioned the outlook for Shopee's core marketplace take rate, which reached 8.5%, and any potential seasonality to expect.
Answer
Group CFO Hou Tianyu responded that while same-day delivery is growing in certain metro areas, its expansion is managed on a country-by-country basis depending on cost structures. He confirmed that improved delivery speeds do lead to higher order frequency. Regarding the take rate, he sees potential for further growth in both commission and advertising, with ad revenue becoming a larger driver. While some seasonality exists, he expects the overall upward trend in ad take rate to continue.