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Allegro to invest €230 million in logistics and IT in 2020

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Allegro is investing around €230 million (PLN 1 billion) in its ecosystem, particularly logistics, this year as it seeks to support its rapidly growing seller base.

The Polish retailer and marketplace will particularly focus on developing the Allegro Smart! offering. Through the programme, customers pay a monthly fee and can get free delivery to over 20,000 collection points in the country or to their home. Allegro says that customers saved over €100 million in delivery costs using the programme in 2019.

Part of the money will go on expanding the network of collection points. The company also plans to allow customers to track purchases at every stage of delivery and introduce an automated returns process for purchased goods.

On the seller side, Allegro will introduce new tools making it easier to analyse, optimise and manage deliveries.

Alongside delivery, Allegro will invest in the development of machine and deep learning mechanisms, adding 250 new engineers to its technology team. This team will look to understand the intentions of customer shopping based on search terms and search medium, allowing customers to receive more personalised recommendations, suggestions and search.

The company will also focus on adding a new customer service tool allowing customers to interact via live chat, with all messages saved on a single platform. Customers will be able to track all purchase-related information through the same platform. Allegro also recently introduced a new social platform called Allegro Gadane, allowing customers and sellers to communicate with Allegro.

Allegro president Francois Nuyts said: “In 2020, we will continue to focus on investments that improve the customer’s shopping experience and provide Allegro sellers with excellent conditions for developing their business.

“We intend to invest PLN 1 billion in our platform, among others, in deliveries, development of the Allegro Smart! Service, increase of website visits, search and UX, customer service as well as tools supporting sellers. 

“With its development, the contribution of the Allegro ecosystem to the Polish economy is also becoming greater. In 2019, together with our sellers and business partners, we contributed to the increase in Polish GDP by PLN 13 billion. Allegro paid taxes in the amount of PLN 0.5 billion, which is equivalent to 70% of annual public budget expenditure on housing.”

Allegro hopes the new plans will support 200 million additional offers and 20% more sellers by the end of 2020.

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