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Allegro CEO Denies Dispute with InPost Amid Arbitration Claim

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Polish e-commerce giant Allegro rejected suggestions of a business dispute with its partners on Friday, despite ongoing tensions with its key delivery provider InPost (INPST.AS).

“We do not believe that we are involved in any business or other dispute with any entity,” said Allegro CEO Marcin Kusmierz, who took charge in June. His comments came after InPost announced in July that it had filed an arbitration claim, accusing Allegro of breaching a long-term delivery agreement by redirecting customers to its own parcel lockers.

InPost, which derives roughly 30% of its Polish revenue from Allegro, has seen its shares tumble more than one-third this year, though they gained 9% on Friday after a sharp 13% drop earlier in the week on weaker parcel volumes. Allegro shares were up around 2%.

InPost CEO Rafal Brzoska has defended the arbitration move as necessary to protect shareholder interests. Allegro, however, emphasized that it respects existing agreements while continuing to diversify its logistics network by adding new partners and rolling out its own lockers to cut delivery costs.

JPMorgan analysts noted that the interdependence of the two companies makes a negotiated settlement likely, though it may reduce InPost’s margins. The bank estimated that Poland will account for 48% of InPost’s revenue in 2025, but that figure could fall to 35% by 2030 as the company accelerates its international expansion.

Allegro Leans Into Local Strategy to Fend Off Rising Asian Competition

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Polish e-commerce leader Allegro is intensifying its focus on local products, services, and delivery infrastructure to distinguish itself from rapidly expanding Asian competitors such as Temu and AliExpress, the company said Thursday.

The strategy includes removing long-delivery-time offers from East Asia on its international platforms in Czech Republic, Slovakia, and Hungary, following a similar move on its Polish marketplace, which had little to no impact on sales volumes, according to CFO Jon Eastick.

“We’re looking to really double down on our differentiators versus the Asian players and make it really clear to the consumer why they look to Allegro every day as the main place to shop,” Eastick said during a conference call.

Key Strategic Moves

  • Long-shipping offers from East Asian sellers have been phased out to highlight local availability and faster delivery.

  • Allegro will continue investing in platform upgrades, such as:

    • Loyalty program enhancements

    • AI-driven recommendations

    • Smarter ad targeting

The changes are part of Allegro’s broader effort to maintain its dominant position in Polish e-commerce, where it currently holds 38.8% market share, compared to:

  • Amazon – 3.9%

  • AliExpress – 3.4%

  • Temu – 1.5%
    (Source: Euromonitor International, 2024)

“Asian platforms made rapid progress in early 2024, but that has slowed dramatically,” Eastick said, citing internal monthly surveys of transaction shares.

Competition and Marketing Dynamics

Temu, which entered Poland in June 2023, has been aggressive in marketing spend, prompting Allegro to respond.

  • Q1 2024 marketing spend: 317.1 million zlotys ($84.46 million), up 10% YoY

  • This is down from a 28.7% jump in Q4 due to the seasonal holiday push.

“Marketing spend and share of voice is definitely where we feel the impact of the new competitors the most,” Eastick noted.

Despite the increased advertising intensity from rivals, Allegro appears confident in its defensive positioning, relying on brand loyalty, localized logistics, and strong vendor relationships to stay ahead.

Allegro Confirms 2024 Outlook as Q1 Earnings Climb, Focus Shifts to Competing with Temu

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Allegro, Poland’s top e-commerce platform, reported a 4.9% rise in Q1 adjusted core earnings in its domestic market and confirmed its full-year forecast, even as competition from platforms like Temu intensifies.

Incoming CEO Marcin Kuśmierz said the company continues to see strong buyer engagement both domestically and abroad:

“Not only is the number of active buyers rising in Poland and internationally, but they also continue to spend more with us on average.”

Q1 Results Overview

  • Adjusted EBITDA (Poland): 859.4 million zlotys ($229.6 million)
    (slightly below analyst expectations of 875 million zlotys)

  • Gross Merchandise Value (GMV):

    • Poland: Up 8.9% to 14.78 billion zlotys

    • International Markets: Up 82%

  • Active Buyers (Group-wide): 21 million (↑5.4% YoY)

    • Of which 6 million are international

Competitive Strategy and Platform Evolution

Despite “not the best” trading conditions in Q1, Finance Chief Jon Eastick noted that the outlook for Q2 is firmer, with the company remaining optimistic for the latter half of 2024.

To differentiate from Asian e-commerce players like Temu, Allegro has removed listings with long shipping times, particularly those from East Asia. This has helped:

  • Increase shopping frequency

  • Boost the number of local merchants on its international platforms (↑56% YoY)

“Removing most of the long delivery time Asian selection helped Allegro distinguish itself,” Eastick said.

Allegro also continues to invest in logistics infrastructure to lower costs and improve service, expanding its network of:

  • In-house parcel lockers

  • Partner-managed delivery points

The share of delivery volumes managed by Allegro rose to 29% in Q1, up from 24% in Q4 2023.

Market Reaction

Despite the overall positive momentum, Allegro shares slipped ~2% in early trading. Analysts at JPMorgan called the result “moderately negative” due to:

  • Slightly softer Polish profitability

  • No upside surprises in GMV growth

Still, Allegro remains Poland’s dominant player and is steadily building out its international presence in Czech Republic, Slovakia, and Hungary, aiming to consolidate its regional leadership.