Online retailer Mydeal.com.au (ASX: MYD) has today announced the launch of experiences marketplace Amazed.com in an endeavour to make waves in the local tourism sector.
Former Redbubble product director Sam Pinney will lead the new platform which has already attracted more than 250 suppliers including Melbourne Zoo, Global Ballooning and Experience Co.
The launch comes a month after MYD reached one million active customers, which Pinney said will provide “a captive audience for which to offer local Amazed experiences and activities.”
“Utilising the existing MyDeal marketplace technology is a real head-start and the open architecture of the marketplace is a key feature, which we expect will allow us to quickly scale up the number of experiences available,” he said.
“I’m delighted by the opportunity to build, launch and lead Amazed.com, an exciting new global marketplace platform and latest chapter in the ever-growing MyDeal story.”
To scale beyond established competitors like Redballoon and ExperienceOz, MyDeal founder and CEO Sean Senvirtne plans to leverage the company’s existing proprietary technology, e-commerce expertise and cross sell Amazed to existing MyDeal customers.
According to Euromonitor International, consumers spend approximately US$145 billion (AUD$194 billion) on experiences and activities per annum, with the Australian market anticipated to grow from $1.2 billion to $2.0 billion over the next five years.
As consumers continue to look for local travel opportunities amidst the pandemic, Senvirtne considers now the optimal time to launch the new vertical.
“The supply side of the experiences market is highly fragmented,” he said.
“With MyDeal’s 10-year history in building and growing supplier relationships, the reopening of the experiences market post COVID-19 restrictions and consumer discretionary spend shifting to travel and experiences, now is the right time for MyDeal to enter this exciting space.
"With a differentiated offering and a strong team in place under the leadership of industry expert, Sam Pinney, supported by MyDeal’s scalable technology platform and strong balance sheet, we believe we have the recipe for global success and market share capture in this exciting new venture.”
Amazed.com accumulates revenue via commission on gross transaction value (GTV) through the marketplace.
The platform aims to differentiate itself as an “open marketplace” which gives control to supplier partners, who can access tools and services to elevate their offers on the platform.
Currently, users can book activities in the cities of Sydney, Brisbane, the Gold Coast, Melbourne and Perth.
MyDeal anticipates a modest investment of $1.5 million into the platform per annum, which will be funded from existing cash reserves of $40.2 million as at 31 December.
In the latest December half year results, the group's revenue surged to $32.9 million, reflecting an increase of 55 per cent. The company’s gross sales also rose by 20.4 per cent to $152.6 million.
Returning customers were the driving force behind the figures, as they comprised more than 60 per cent of transactions in the half.
If all goes according to plan, the latest platform will make its global debut down the track.
“We will be launching in New Zealand in the second half of this calendar year, which will then be followed by the US and other high demand offshore markets,” said Pinney.
Shares in MYD are up 6 per cent to 0.62 per share at 12:25pm AEDT
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