Adevinta’s mission is to create perfect matches on the world’s most trusted marketplaces.
Adevinta holds multiple leadership positions in its existing markets across key metrics of traffic, number of listings and revenue (leadership positions based on a variety of sources). Adevinta endeavours to maintain and extend these favourable competitive positions while also capturing further core and adjacent growth opportunities.
While Adevinta will continue to benefit from organic online classifieds market growth, we also focus on increasing market share in traffic, listings and eventually monetization and profitability. We aim to do this by leveraging the strategy detailed below.
Matchmaking: Matchmaking is the fuel for the network effect at the heart of an effective marketplace: facilitating more transactions will attract more users, customers and quality content, meaning that success is directly driven by the number of matches facilitated. Therefore Adevinta invests in features and capabilities that improve the matchmaking performance of its marketplaces, including solutions that reduce friction across user journey and that allow users to more quickly and effectively achieve their goals.
Vertical roots (especially in core verticals – cars, real estate and jobs): Adevinta sees compelling opportunities to deepen its roots in the vertical categories with solutions that make transactions smoother, addressing user pain points to differentiate Adevinta from its competitors and drive customer loyalty. In addition to ensuring that the current business model remains effective, Adevinta also intends to experiment with new outcome-based business models to better align value creation with value capture. This alignment is expected to not only create opportunities for further upside in the verticals but also be increasingly demanded by Adevinta’s customers.
Ventures: Adevinta sees interesting opportunities in new marketplace models focusing on discrete user needs in the verticals. These startups are typically global and hyper-specialized, and in some cases signal a structural change occurring in marketplaces. Therefore, Adevinta’s Ventures team places strategic bets for the future by investing in these early stage startups and by providing them with resources and guidance to increase their chances of success.
Convergence: Fostering convergence, starting with data, is seen as an enabler to achieve speed and scale in product and tech development that can allow Adevinta to deploy selected components across multiple marketplaces and materially increase throughput. Adevinta has an opportunity to further leverage its common integrated tech experience across the portfolio to develop new models for consumers and roll out features tested in one market throughout the portfolio.
Pursue strategic inorganic growth: Adevinta has a strong track record of successfully acquiring and integrating new companies. Adevinta will continue to follow a policy of active portfolio optimization and enhanced value creation through in-market consolidation and bolt-on acquisitions. As a separately listed company, Adevinta intends to increase value potential by being a driving force in terms of acquisitions and potential global structural development, which is made possible by Adevinta’s new and more flexible corporate structure.
In September 2018 Schibsted announced that it would initiate a process to reorganize Schibsted into two growth-oriented companies. The two new growth companies, Schibsted and Adevinta, will pursue independent agendas to further increase their speed, focus and ability to scale. Adevinta, with its Marketplaces operations outside of the Nordics, will be established as an independent, listed company.
Adevinta will spin off as a stand-alone company and intends to list on the Oslo Stock Exchange in April 2019. Schibsted will retain majority ownership in Adevinta at the time of the listing, and intends to remain a long-term, active owner of Adevinta.
The proposed transaction represents an important strategic step forward as it allows the two new entities to set out their best strategic courses individually. Adevinta will have a simplified governance structure with no ownership or voting limitations. Initially Adevinta will inherit Schibsted ASA’s structure with A- and B-shares carrying different voting. However, Schibsted as a majority owner will support an amalgamation into only one share class in due course. Adevinta will play an active role in any structural development of the online classifieds industry.