Wolt Israel CEO Aims for Dominance in All Israeli Purchases
Translated & summarized from Globes by baba
Tomer Cohen, the new CEO of Wolt Israel, aims to expand the delivery service into a comprehensive retail platform, making it the first choice for all Israeli purchases. The company is focusing on non-restaurant deliveries, including groceries and other goods, and is working to adapt its services for the Arab and Haredi communities. Wolt Israel is also a hub for innovation within its parent company, DoorDash, and is navigating challenges such as courier relations and road safety.
The story in 6 lines · by baba
- Wolt Israel CEO Tomer Cohen aims for the company to be the starting point for all Israeli purchases.
- 40% of Wolt Israel's current operations are outside of restaurants, focusing on retail expansion.
- The company is adapting services for the Arab and Haredi communities, facing unique challenges.
- Wolt Israel is a significant innovation hub for its parent company, DoorDash.
- Wolt recently settled a NIS 34.3 million class-action lawsuit with its couriers.
- The National Road Safety Authority has criticized Wolt over courier traffic violations.
Tomer Cohen, CEO of Wolt Israel, revealed in his first interview since taking office on October 1, 2024, that the company's strategy is to expand significantly into retail, aiming for Wolt to be the starting point for all Israeli consumer purchases. Currently, 40% of Wolt Israel's operations are outside of restaurants, encompassing groceries, electronics, home goods, and more. Cohen defended the company's model of engaging with couriers as independent contractors and addressed the commission fees charged to businesses, stating they are profitable for merchants.
Cohen acknowledged the complexity of managing a tech company like Wolt, especially given the dynamic nature of courier availability and customer orders. He highlighted the company's extensive reach, covering 90% of Israel, and its ongoing efforts to penetrate the Arab and Haredi (ultra-Orthodox) communities. Challenges in these sectors include adapting payment methods for cash-based transactions in the Arab community and ensuring accessibility of the technology for the Haredi community, with specific considerations like Shabbat observance.
Wolt, acquired by DoorDash in 2021, operates in 40 countries. Cohen emphasized that Wolt Israel is a hub for innovation within the global corporation, citing the development of Wolt Benefits, a solution for employee meal stipends, and an AI agent that helps manage supermarket inventory and reduce out-of-stock items. He also mentioned the upcoming sale of Wolt Market, an online supermarket chain, which is currently in advanced stages with three potential buyers.
Addressing the issue of courier relations, Cohen noted a recent NIS 34.3 million settlement in a class-action lawsuit, which will maintain the existing independent contractor model while encouraging couriers to save for social benefits. He also discussed the company's response to a recent complaint from the National Road Safety Authority regarding traffic violations by couriers, stating that Wolt is actively working to improve safety and remove problematic couriers from the platform.
Cohen also touched upon the success of Wolt Plus, a subscription service offering free deliveries, which has garnered hundreds of thousands of subscribers. He expressed his ambition for Wolt to become the primary platform for all Israeli purchases, emphasizing the time-saving aspect for consumers. The CEO also reflected on personal experiences, including the loss of his brother, which shaped his optimistic leadership style.
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