 Alright, welcome back. Hopefully you had some good discussions in your breakout rooms. Jim and I had some good discussions and so please put in your vote whether you think this acquisition will help. Chef yourself. Chef yourself or has no impact at all. And so let's talk a little bit about what the acquisition was. I talked about this in a previous Hangout another course but everyone knows Amazon, massive online retailer and they acquired a company called Whole Foods which is an upscale grocery store mainly in urban areas. They have about 400 or so stores I think across the U.S. and they have about a 1.2 market share. As opposed to say Walmart the leader has about 10x that, 15% of the market share. But this caused a lot of disruption in the market especially in the stock exchange. The price of a lot of Whole Foods stock price went up. Amazons I think went down and a lot of other retailers in the area, grocery stores went way down initially. And so Jim what do you think the impact will be? Chef yourself, a fictional company. So I'm not certain that there's going to be any impact. I think what the market reaction that you describe Chris is probably an overreaction and anticipation that Amazon is now going to crush all the competitors in this domain. But if you look at this critically we can understand that Whole Foods has not been very profitable of late. Their stock price is way down for that reason. In fact the acquisition only brings them up to their stock price where it was in 2013. In fact if you look at what a multiplier is called, the amount they offer versus compare that to the revenue, the annual revenue, it's below one. They paid less than 1x which is not so good. So they bought a system that is not delivering effectively and we believe that Amazon has effective delivery systems. We don't know if they are profitable though because we know we can get what we order from Amazon when we want it but we don't know whether they are making money on that because as we were discussing a lot of the money that Amazon is making is coming from their web services. So it's not really clear. I don't think there's any evidence that would suggest this is going to be a profitable venture for them. So if you take that on the surface and you say well where's there evidence that would suggest that this is going to hurt? Chef yourself. I don't see that immediately certainly and I'm not sure I see that in the future. So one of the big strategies for you guys outside the US who might not be aware of what a lot of grocery stores are doing now because anyone who is in that industry, the margins are razor thin, 1%, 2%, they're really tiny and so what a lot of these grocery stores are doing is they're doing more prepared foods and that's where they can make their margins and so they make meals so it's a grab and go kind of thing and so Whole Foods does this. So that piece of the market could hurt chef yourself because essentially chef yourself is something like that. It's partially preparing the meals so maybe if they go into that it seems like they're all kind of chasing the same thing because if you look what chef yourself is doing they're in between pricing of going out to eat and buying wrong ingredients yourself. It's more than that but it's less than going out to eat and so they're trying to find that middle market if the grocery stores kind of move that up a little bit they're kind of squeezing the market so it's kind of a it's a question I would say it's having Amazon come in you know everyone's waving their arms around I don't know I don't think it's gonna change the long-term trends. Let me see what some of you guys said breakout team one said it will help coming in it will helps chef yourself but they said it was a close vote Eric says if Amazon decides to enter chef yourself's market I will definitely hurt them I think that should be it will definitely hurt them right I assume Eric's not gonna come out after Amazon. Breakout 5 said it'll probably hurt them but it's not clear you guys are all hedging your bets here I don't think it will crush Mark Gregorio says I don't think it'll crush the competition but it's drawing attention to online food experience and a company like Chef Yourself could leverage this help help grow their business so interestingly there's a company called Blue Apron and Blue Apron has an IPO schedule for this week Blue Apron is essentially the company I modeled Chef Yourself on and you can go and look look under Blue Apron and you can find a bunch of their financials when I encourage you to do if you're interested in this at all go and Google Blue Apron IPO what do you call it prospectus and so it'll give you this briefing it'll give you their financials and you'll find a lot of the challenges that they're facing are the exact same ones that we outlined in Chef Yourself and so if you've never done an IPO or looked at a financial statement one of the things they have to do is give risk factors and these risk factors are those things that they let the potential investors know things that could potentially hurt us plus and minus to be honest but usually they're negative and so as I look through I highlighted some of these there's about they had about a couple dozen but most of them dealt with supply chain and so some highlights they said we need to make sure some of the risks forecasting our revenues and planning our operating expenses is a risk managing our rapid growth in our personnel and operations scaling our supply chain while avoiding material disruptions or adverse incidents maintaining relationships with our existing suppliers and secure relationships with new suppliers to supply quality ingredients in our product offerings to be able to scale and adapt our supply chain production operations and expenses including marketing expenses in response to customer demand and seasonal trends and they go on but a lot of the things that we highlighted in the case they're hitting blue apron head-on and they're the exact same risks that they're facing they're growing from a company that grew we just looked at the analysis 10x in two years and now they're kind of stabbling off how can they continue that growth but I think if you look at their financials and I don't know if these prospectus breaks the SG&A or sales general administration expenses out and to show the delivery expenses but you can see those growing significantly and I think that is a reflection of the delivery challenge well also probably an enormous amount of money they're spending on marketing to get the uptake in the product which I think just goes back to this comment that I think was a micro Gregorio made which was to say that the attentions may help the business I mean that you know any ink is good ink is what they say so in this case it brought the the acquisition would bring attention to the industry and that could provide some boost to the lift of the sales yeah one thing we didn't do in the case we had a chief marketing officer and she was talking about promotions we didn't talk about retention and maybe we should add that but that the biggest challenge that a lot of these companies have is to break through the clutter and they have to pay a lot for that new client and then what they're finding is that if someone comes on as a customer they don't stay forever there's there's a life cycle to them so they constantly have to keep refreshing the pump bringing in new people at the front of the funnel and that marketing expense if you look at blue aprons offering it went 10x it went tremendously up because it takes a lot to reach more and more people so that's a challenge that you're facing on the front end that we didn't really talk about too much in our in our case but it's a something that is really of a practical concern all right any last comments coming in all right then I think we had one from as a me I think it'll help chef yourself in the short term you may benefit from their fulfillment centers I don't think chef yourself or blue apron will be using Amazon fulfillment centers from this it's almost that they're coming in as a competitor and it may be if I did that continue from eating out in restaurants versus wrong ingredients they're coming in on this end and so chef yourself is kind of in the middle and kind of on this hiring so it's a question whether they're going to really have an impact maybe they'll start doing prepared meal delivery I mean that's it's a crowded marketplace right now in the United States there's at least there's purple carrot there's terrace kitchen there's Amazon fresh they do meals there's a handful of these that are out there and so trying to break through that clutter is a challenge especially getting away from the urban environments because as you guys who took SC0X know you need density for local delivery and that's what kills you if you don't have it you need to have density to make that work alright let's wrap this up in the last thing I want to do is remind you on Wednesday the 28th of June this coming Wednesday 1500 UTC the final exam will be released it's doing one week just like everything else remember it's graded assignment it's four grades so no collaboration no sharing you do it yourself it's a timed exam and they get Sergio how many hours four hours to complete Sergio did it in 15 minutes but he's smart but we give you four hours once you start you have four hours to finish it good luck guys I'll see you next time