Rohlik’s “breakthrough” deal with Amazon in Germany

Published: 11. 11. 2024

For me, the common ‘rohlik’ (or ‘bread roll’) is one of the basic building blocks of the Czech diet. It’s also the visual symbol on which the founder of rohlik.cz Tomáš Čupr has built a powerful e-commerce giant that he’s used to build an increasingly global e-commerce platform.

E15 spoke with Čupr about a new partnership with Amazon, begins this week in Berlin, where Rohlik’s German operation Knuspr.de will fulfill grocery orders for Amazon Prime customers. Despite recent setbacks including withdrawn expansions from Italy and Spain, Čupr insists his goals remain global in size. “Amazon as a major global e-commerce player understands it’s better to partner with us than do it themselves,” Čupr told Seznam Zpravy. “For us, gaining access to their platform while paying a small commission per purchase could mean significant growth.”

The partnership, which will expand to Munich, the Rhineland, and Hamburg, could even pave the way for Rohlik’s entry into the American market. As reported by e15, this aligns with Čupr’s strategy to reduce dependence on European markets, which he views as overly regulated.

The company has weathered significant challenges, including a reported CZK 1.5 billion loss. Rohlik is now focusing heavily on automation and artificial intelligence to drive efficiency. “With automation, we can have one-third of the fixed costs, set prices about ten percent lower, and dominate the competition,” Čupr explained.

Many start-ups make losses for years before turning a profit. Founded in 2014, the same has been the case for Rohlik, which didn’t manage to escape negative territory until 2022.  It’s now now profitable, generating 40 million crowns, but its German expansion has cost it dear. Recently, Rohlik secured CZK 4 billion in funding from investors including the European Bank for Reconstruction and Development.

Čupr sees automation as key to scaling the business. The company has already automated 60% of customer interactions through what Čupr calls “Rohlik Autopilot.” He predicts that within 18 months, all customer service will be AI-powered, though customers won’t notice the difference. His ultimate goal? To build Rohlik into a global player on par with success stories like Estonia’s Bolt or Sweden’s Spotify.

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