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SUPERPLUS FOOD STORES What does Michael Lee Chin have to do with the future of the Supermarket Chain controlled by this brother Wayne Chen?

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16 years ago

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“Are you closing down or what, how the shelves dem so empty?” remarked an irate shopper in the Superplus Liguanea branch, confronting one of the store attendants walking through the supermarket. “Is the same way the one down half way tree look” remarked another shopper passing by. A casual stroll through the Kingston located Superplus stores by this writer, revealed much truth in the comments and observations by the two shoppers.

According to one industry watcher, there are unconfirmed reports that the privately held and controlled Wayne Chen led Superplus chain is having problems making payments to suppliers who have now apparently cut off supplies hence the scanty shelves. But how this could be, with reported annual sales of over JA$11B Superplus should be awash in cash. “That how it appears on the surface, the supermarket business is a very thin margin business, ranging from 2-3% and so they may be generating a lot of cash, but very little profit” was how one financial analyst summed up the situation.

This begged the question. Is the supermarket business a good business to be in at this time or quite frankly at anytime? Which led us to ask a very obvious question? Would Michael Lee-Chin invest in the supermarket business?
Given his publicly stated investment views and posture the answer would and should be a resounding NO.

Michael Lee-Chin established investment philosophy is “buying few excellent businesses in long-term growth sectors and holding these businesses for the long term in order to help investors prosper by preserving and growing their capital and minimizing taxes.”
Lee Chins Investment Philosophy
• Use other people’s money
• Find a role model
• Invest in a few businesses you understand
• Stay committed to your investment philosophy
Given this posture would he have advised his siblings to invest in the supermarket business.

More questions. To what extent if he is, is Michael advising his brother Wayne on the merits of investing in the supermarket business? Is he telling Wayne to cut and run or hold for the long term?
Or better still does Lee Chin view the supermarket business as a good investment and is putting his money where his mouth is.

If you were a billionaire and a savvy successful investor with brothers and other family members in the supermarket business and they were having a hard time making money would you bail them out, would you put your own money in, but then you don’t use your own money, you use other people’s money. What would you do?

There are cynics who would suggest that Michael and companies under his control are already major investors or backers of the supermarket group. But would Michael really throw good money after bad or is it that he sees it as a good investment.

These are all relevant questions, as the answer will give a clearer picture on the way forward for Wayne Chen and the SuperPlus Chain of supermarkets.

If you don’t already know Wayne Chen is the younger brother of billionaire Michael Lee-Chen and while heading and running the Super Plus chain, overseas a number of his bigger brother business. He is the Chairman of NCB Insurance Company Limited, West Indies Trust Company Limited and CVM Communications Group, a Director of National Commercial Bank Jamaica, NCB (Cayman) Limited, AIC (Barbados) Limited and the Christiana Town Centre Limited.

Chen stripping the group

Wayne Chen

Wayne-Chen

Wayne Chen announced in October last year that He was contracting the supermarket chain and would close a fifth store in Montego Bay but would expand others. Chen has been stripping the group of its loss-making stores indicating that the business was attempting to grow revenues by concentrating more on services like its cambio operations. Chen said that grocery had become the “loss leader” for the supermarket chain, but gave no specifics on the other business segments that were underperforming. Five stores have been culled from the group, and of the remaining 25, the majority, 22, are controlled by brothers Wayne and Richard Chen, while the others are held by other family members.
More than a decade ago, supermarket owners, hurting from market fragmentation and weak consumer spending, began a process of conglomeration with the hope of restoring profitability to their operations.

Progressive Grocers leads the charge

Back in 2003 there was a merging and acquisition frenzy going on in the supermarket sector with the consortium, Progressive Grocers acquiring four supermarkets in rural Jamaica, bringing to 18 the number in the chain, and helping to reinforce the oligopolistic market that has been developing within this industry.

The five-member grouping acquired a number of Jamaica’s independent supermarkets to become the second largest chain after SuperPlus Foods Stores, which operated at the time 27 outlets. GraceKennedy’s Hi-Lo had 15 shops. Together the three groupings controlled the lion’s share of the Jamaican market.

The acquisitions would give the Progressive Grocers even greater critical mass in procurement, to go up against SuperPlus, the industry’s behemoth that had also been on an expansion binge. The concept of the Progressive Grocers is to create an alliance that could jointly purchase goods to spread administrative cost in the management of this process, as well as marketing, and to create bargaining clout in procurement. Sources say, for example, that the group was also seeking to set up a central warehouse, a move that would allow it to further spread overhead cost.

At the time Hi-Lo had acquired six groceries and wholesales to control a total of 15 stores with plans to open another five stores later that year – one in Mandeville and Spanish Town, with the other three were supposed to be under construction. John Mahfood, former GraceKennedy chief operating officer in charge of retailing and projects at the time said that Hi-Lo would be adding between 5 and 6 stores per year over the next five years, bringing the total number to about 40. This has not materialised.

Not to be undone, Super Plus, with 27 stores at the time, also announced plans to open three more in Kingston.

Come 2006 Supermarket operators were crying out “We’re not making any money”. The tide had turned and the future looked dim.

So what went wrong?

Operating within an oligopolistic market – dominated by four major groups – Jamaica’s supermarkets were now bleeding red ink. This, the owners said, was the result of skyrocketing utility and other operating costs, interest burden on the debt associated with expansion, weak demand, and their inability to pass on costs to the increasingly price-sensitive consumer.

“Right now it is murder,” was how Wayne Chen characterised the business environment. “We are making a small profit, but we now have to be looking at liquidating non-core assets to cut our finance charges.”

In 2005/06 SuperPlus is reported to have recorded gross sales of $11 billion – making the group by far Jamaica’s largest retailer. Such critical mass was part of the business plan – to better spread overhead, give the group procurement clout, and improve its gross profit margin – all of which have been achieved. However, according to Chen, the steep increases in fixed and semi-fixed costs over the last two years have eaten away at the group’s net profit.

For example, there has been about a seventy per cent increase in the cost of electricity across the group over the past year. “Light bill at our Trafalgar Road location has moved from 800,000 to $1.4 million per month,” Chen told the Business Observer. In a business where red ink is all around, SuperPlus with its very small profit was, relatively speaking, holding its own.

GraceKennedy’s supermarket subsidiary, Hi-Lo, was reported to have lost $80 million that year. Hi-Lo’s electricity bill soared to $10 million per month, a 66 per cent increase on the $6 million previously. Security costs jumped by 20 per cent to $60 million. “Increase in costs, lower level in disposable income, compounded with a more competitive market make it challenging for companies,” noted Mahfood.

Hi-Lo by this time closed down two of its Kingston supermarkets – its branch at Tropical Plaza in 2004, and its Hagley Park Road store in 2005 reducing the Kingston branches to four, and the total number of stores islandwide to 13.

Ken Loshusan, operator of John R Wong Supermarket in New Kingston and Loshusan Supermarket Barbican Circle in Kingston, said his supermarkets were also not making any money. “How can you make money when light bill, rent etc. are all over a million dollars? We’re barely breaking even right now. We’re just creating employment, that’s it,” said Loshusan.

According to published reports, on average, the pre-taxation margin of supermarkets in the Progressive Group was about 20 per cent. However, increasing operational costs had eaten away at their margins, thus forcing most of the members into at best, break-even performance. “By the time we pay expenses, pay taxes we are left with nothing,” he complains. “If we raise (margins) half per cent, people will raise hell. All the expenses have skyrocketed. By the time we pay (expenses) we are left with nothing.”

In 2007 Progressive Grocers 28-member consortium comprised the second largest grouping of local supermarkets,

Chen commenting on the situation said that given the constraints faced by the industry in passing on costs to customers, there will be fallout within the industry.”We are gonna see some shakeout in the industry,” he declared.

“Sooner or later, some companies will have to drop out. By the end of the year, I expect some players to drop out.” Commented one operator.

Gassan Azan, the operator of MegaMart store and supermarket, said he too was experiencing sluggishness in the supermarket business, but that other non-supermarket items sold by his chain were helping to counter the fallout.

Like the other supermarkets, a major challenge at MegaMart was coping with the high electricity costs. For example, at MegaMart’s Waterloo Road, Kingston location, electricity cost had jumped from $1.1 million per month last year, to $1.7 million per month that year. At the other MegaMart store in Portmore, St Catherine, electricity cost had moved from $1.1 million per month to $1.8 million.

“Do you know how much more goods you have to sell to pay for the increase in light bill?” asked Azan. The two MegaMart stores had combined sales of $3.5 billion, but so far that year, sales have been flat, said Azan.

Moreover, according to Azan, the profit was generated mainly from the non-supermarket items which earned a much higher gross margin, and primarily at the Kingston store. “As a strategy, to achieve profitability what we have been doing is to push our non-food items,” he explained.

Chen cited several factors which he said accounted for the sluggishness in consumer spend at the island’s supermarkets. Among them: the tens of billions being spent each year on cellular phone usage. “The source of the money is not finite and it has to come from somewhere,” he said.

He also cited the increase in consumer electricity and fuel costs which divert consumer spending away from supermarket items, the slow-down in construction and its impact on purchasing power among working class Jamaicans. Chen also noted that the anti-crime measure ‘Operation King Fish’ had also curtailed criminal activities and their ability to fund consumption in the way they once did.

The SuperPlus boss says his stores have felt the impact of these factors.”Most stores in the chain are flat in Jamaican dollar terms, and some stores are down,” he told the Business Observer. “Some of the new ones continue to grow but at the expense at the older stores.”

But according to Chen, SuperPlus has been taking steps to improve its cash flow and financial position in light of the soft market.

“In some instances we are cutting back on wholesaling because of the margins,” he said. “We are looking at all of our resources that are not being utilized with a view to liquidating them to cut our bank finance cost. We are seeking to share the cost of running the business over a wider revenue base.”

A victim of its own success

Wayne Chen is obviously doing everything he can to diversify income streams and squeeze more margins out of the operation; these include building more money transfer facilities, ATMs, cambios, and pharmacies in its stores of which it now had five.

“The main push is to look at fixed cost. We have no control over rent so we need to offer more within the stores to defray them.”

It’s clear that the aggressive investment in new locations has not produced the desired results. SuperPlus’ success at growing into the largest retailer in Jamaica – in 2003, surpassing furniture retailer Courts – less than 10 years after the chain, which was started by Gloria Chen in the 1960s, and had been anchored in southern Jamaica, morphed into the well-organised corporate structure is today a victim of its own success.

Wayne Chen had declared his intention to aggressively grow the firm’s store count and roll out up to 400 additional items under the SuperPlus brand – moving the range to about 700 and, importantly, giving SuperPlus greater control over stocks and the ability to squeeze more profit in a business famous for its thin margins.

In recently published press reports Wayne Chen said he would not refuse a good offer for the islandwide family-owned supermarket chain, but says he has not put the company up for sale. Asked outright whether that meant SuperPlus was hunting a buyer, Chen dismissed it, but did not discount it as a future possibility. “Not at all,” he told the Financial Gleaner. “Not in the short term. We are right-sizing the company now,” he added.

Rumours however persist that Wayne is actively looking for a buyer for the reportedly money losing supermarket chain. But denials are in order until the ink has dried on the contract and the cheque handed over. Plans for an IPO must now be off the table given the current state of affairs and from all indications 2009 is going to be a very challenging one. Margins will be put under far more pressure and more red ink will flow throughout the sector.

And so we are back to Michael Lee Chin. Why? Well if we know for certain Michael’s views and investments in SuperPlus then we will know where it’s going.

Additional sources: Jamaica Observer

https://businessuiteonline.com/index.php/2018/10/09/the-walkbout-homestay-experience-coming-january-2019/

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Businessuite Special Report P4 | Homegrown Disruption: InterMetroONE & Walkbout.com Position Jamaica’s Answer to Uber–Airbnb

Now is the time for SMEs, associations, and government to align—ensuring that if Uber and Airbnb ever arrive together, Jamaica’s own ecosystem remains vibrant and in control.

Published

6 hours ago

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June 28, 2025

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Introducing a Local Super App Alternative
InterMetroONE— a SuperApp under RedPlate Group Limited—offers air travel transfers, coach rides (like the upcoming JUTA Express), taxis, parcel courier service, groceries, and more, all in a single platform. In parallel, Walkbout.com is launching guided local experiences and cultural tours, tailored to small hotels and boutique hosts—positioning itself as a geolocal, authentic alternative to Airbnb Experiences .

Together, these two Jamaican startups hope to form the first fully integrated, locally led travel superapp—a provider-owned ecosystem unifying ground transport, tours, and boutique lodging—on Jamaican soil.

Why This Local Startup Could Succeed

1. Homegrown & Compliant
InterMetroONE already partners with national operators—notably JUTA Express launching in 2025—maintaining regulatory standards and local trust .

2. Multi-Service “One-Stop” Solution
Unlike global platforms, this app includes:
• Scheduled luxury bus and coach routes, with real-time tracking and no overcrowding
• Airport-to-hotel transfers, group charters, and executive vehicles
• Courier, grocery delivery, and soon,
• Walkbout local experiences—where travelers can engage local guides for deep-dive tours

3. Strengthening Small Operators
By aggregating bookings, logistics, and marketing, InterMetroONE can enable boutique hotel owners and taxi drivers to collaborate—without a Silicon Valley middleman. This could reduce leakage of commission and retain economic value in Jamaica.

Voices from the Ground

“Buses that run on time and aren’t overcrowded? That’ll be a game changer,” says a Montego Bay commuter, reflecting public frustration with unreliable transit

“We tried privatizing… coaster buses… commuting… nightmare. Regulation is the key.”

These voices underscore critical demand for reliable, regulated, privately managed transport systems like InterMetroONE.

Winning Together: A Roadmap for Collaboration

To make InterMetroONE–Walkbout successful for all stakeholders, local operators should:

1. Adopt Platform Tools
o Taxi associations, guesthouses, and tour guides should integrate into the app to capitalize on airport transfers, bus scheduling, and tours.

2. Bundle Services
o Boutique hotels can offer “Stay + Transport + Tour” packages using Walkbout experiences and InterMetro transfers as a single SKU.

3. Win Trust via Quality & Compliance
o Upfront certification, training, and standardized pricing under one local brand will build trust and consistency—unlike fragmented global platforms.

4. Promote Data-sharing & Feedback
o Operators can co-develop service improvements via shared metrics—e.g. tourist route demand, seasonal peaks—benefiting all.

5. Leverage Community Networks
o Word-of-mouth remains powerful. InterMetroONE can host info sessions in parishes to onboard small providers and build local ambassador networks.

Policy Must-Haves: Enabling the Local Answer
To support this model, five critical government measures are recommended:
1. Digitization Grants – Provide micro-grants or loans for small operators to access certification, insurance, app training.
2. Regulatory Parity – Ensure InterMetroONE offers drivers and guides the same professional license standards as JUTA—a level playing field.
3. Revenue Reinvestment – Structure tourism taxes or fees to match platform growth, ensuring earnings stay within local economies.
4. SME Networks – The Ministry of Tourism should facilitate full operator onboarding into the platform—including training programs, public trust campaigns.
5. Monitor Economic Leakage – Commission an independent impact study on how much tourist spend stays local versus platform-bound.

Vision: A Jamaican Model for the Caribbean
If successful, InterMetroONE and Walkbout can be more than a Jamaican solution—they could become a regional standard, adaptable to other Caribbean islands seeking locally anchored digital economies.

Call to Action: How Your Business Can Join the Journey
• Small hotels: Propose pilot transport + experience packages this summer.
• Taxi & bus operators: Partner with InterMetroONE as certified drivers or fleet providers.
• Tour guides: Join Walkbout.com to bring unique, heritage-led experiences.
• Policy-makers: Prioritize digital tourism frameworks and SME support.

Businessuite Online Summary
• A Jamaican-led, regulated, fully integrated travel app could beat global disruptors by staying local, compliant, and collaborative.
• Now is the time for SMEs, associations, and government to align—ensuring that if Uber and Airbnb ever arrive together, Jamaica’s own ecosystem remains vibrant and in control.

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Businessuite Special Report P3 | Uber x Airbnb: A Strategic Alliance That Could Redefine Jamaica’s Travel Industry – But At What Cost?

The future of Jamaican tourism lies in its ability to integrate into global digital ecosystems without sacrificing local livelihoods. The time for public–private dialogue is now.

Published

7 hours ago

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June 28, 2025

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“This Could Either Integrate Us Into A Global Ecosystem Or Render Us Obsolete Overnight.”

That’s how Senior Tourism Executive, describes the possibility of an Uber–Airbnb strategic partnership, which would see the world’s two largest sharing economy disruptors combine their offerings into a seamless, app-based travel experience.

The Global Vision, Local Disruption
Uber Technologies, Inc. is the world’s largest ride-hailing platform, operating in over 70 countries and 15,000 cities.
Airbnb, Inc. is the dominant online marketplace for homestays and experiences, with more than 150 million users globally.
In Jamaica, Uber’s entry has challenged traditional taxi associations such as JUTA, Maxi Tours, and JCAL, while Airbnb has democratized hospitality, enabling homeowners to become hoteliers almost overnight.

What Would This Partnership Look Like?
• Integrated Bookings: Guests booking an Airbnb in Montego Bay could automatically arrange an Uber pickup from Sangster International Airport.
• Bundled Experiences: Uber could launch curated island tours in partnership with Airbnb hosts.
• Data Sharing: The companies could integrate user preferences to personalize accommodation and mobility recommendations.

Potential Risks for Local Operators

Transportation Sector:
“Uber already undercuts our rates. If they join with Airbnb, we could lose airport transfers and local tours, our bread and butter,” warns Michael Morgan.
Without rapid digitization, traditional operators risk losing market share to app-based models offering transparency, safety tracking, and instant booking.

Hospitality Sector:
While many small Airbnb hosts would benefit from integrated guest mobility, large resorts fear losing exclusive transportation revenues.
“We spend millions annually on guest logistics – this will force us to rethink that model,” says a senior operations manager at a leading all-inclusive resort group.

Policy Recommendations for Government Action
Businessuite spoke with industry stakeholders, yielding five critical policy recommendations:

1. Level Licensing Requirements:
Ensure Uber drivers meet similar safety, insurance, and professional standards as licensed JUTA and Maxi Tours operators.

2. Create a Digital Tourism Regulation Framework:
Establish clear guidelines for platforms like Airbnb to protect guests and ensure tax compliance without stifling micro-entrepreneurship.

3. Incentivize Local Digital Transformation:
Provide low-interest financing or technical grants to traditional operators for app development, fleet management systems, and customer experience upgrades.

4. Negotiate Platform Partnerships with Local Associations:
The Ministry of Tourism and Transport Authority should broker agreements ensuring local tour and transport operators are included in platform offerings.

5. Assess Economic Leakages:
Study the net foreign exchange impact of platform commissions exiting Jamaica, balancing digital convenience with national economic interests.

Business Models Are Evolving

Traditional Taxi Associations:
Exploring white-label app solutions to modernize dispatch and payments.

Airbnb Hosts:
Excited at the prospect of seamless transportation offerings, increasing guest satisfaction and repeat bookings.

Hotels & Resorts:
Likely to resist integration to protect in-house transport revenues, while quietly exploring their own mobility partnerships.

Businessuite Final Take

“When global giants like Uber and Airbnb combine forces, there are both opportunities and threats. Jamaica must act swiftly to protect local entrepreneurs while embracing digital innovation to remain competitive.”

The future of Jamaican tourism lies in its ability to integrate into global digital ecosystems without sacrificing local livelihoods. The time for public–private dialogue is now.
By Businessuite Contributor

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Businessuite Special Report P2 | Disruption in Jamaica: Uber & Airbnb Business Models

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7 hours ago

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June 28, 2025

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 Uber & Airbnb Business Models

Uber
• Democratizes taxi services by removing medallions and enabling app-based ride hailing, surge pricing, and real-time tracking
• In Jamaica—particularly Kingston and Montego Bay—Uber operates alongside traditional taxis. While available, its adoption faces resistance from established associations like JUTA and Maxi Tours

Airbnb
• Transformed lodging from hotels to unique, community-based stays, leveraging platform scale, ratings, and dynamic pricing .
• In Jamaica, it fuels opportunities for locals to monetize spare rooms or guesthouses, while raising concerns over inconsistent quality, safety, and pricing

Rationale for an Uber–Airbnb Strategic Alliance

1. Seamless Integrated Travel Package
• Users booking accommodation via Airbnb could seamlessly arrange Uber airport pickups, or access local tours via Uber’s network.
• Mirrors past partnerships (e.g., Uber–Hilton “Local Scene”) to link mobility and lodging

2. Enhanced Network Effects
• Uber expands reach into more regions when integrated with Airbnb’s guest base; Airbnb gains appeal through complementary mobility options .

3. Data & Recommendations
• Shared insights on guest habits and mobility needs can optimize dynamic pricing, itinerary suggestions, and cross-selling of experiences

4. Diversification of Services
• Development of bundled offerings—e.g., “stay + rides + experiences”—increases engagement and mitigates reliance on single revenue streams .

Impacts on Jamaican Transportation & Hospitality

Transportation Sector
• Traditional operators (JUTA, Maxi Tours, JCAL) may lose diversified tourist traffic to Uber unless they evolve through:
o Adopting app-based dispatch systems,
o Offering consistent pricing,
o Ensuring service quality and credentials (e.g., lowered street flagging).
• A partnership could pressure local services to modernize or form alliances with Uber for continued relevance.

Hospitality Sector
• Small-scale accommodations (e.g., guesthouses, boutiques) could benefit from mobility integration, differentiating themselves from large resorts.
• However, all-inclusive resorts might resist relinquishing control over transportation, potentially lobbying against integrated offerings.

Local Entrepreneurs
• Gains: entrepreneurs offering stays and tours could access Uber integration, reaching more guests.
• Risks: platform dominance may overshadow local competitors, making standing out more difficult.

Tourist Experience
• Better on-island exploration: less reliance on private drivers or group tours, improving affordability and convenience.
• Potential downsides: if Uber–Airbnb prices premiumize, local chauffeur/tour incomes could decline.

Policy & Regulation Considerations

1. Justice in Public Service Licensing
o Should Uber drivers be required to secure professional licenses like red plate taxis?
o Regulating Uber’s “partner model” to protect labour rights without overburdening drivers

2. Quality & Safety Standards
o For Airbnb: establish regulations around safety checks, insurance, and transparent fees to build trust .
o For Uber: enforce background checks, vehicle inspections, and fare transparency to guard consumer interest.

3. Protecting Local Economies
o Government tax relief, subsidies, or capacity-building for local taxi unions to digitize operations.
o For Airbnb hosts: consider differential GCT treatment or micro-tourism licensing to support smaller operators.

4. Balanced Tourism Strategy
o Jamaican government should balance “bubble tourism” from resorts with broader community access.
o Dedicate spaces/services for locals, incentivize local mobility adoption in tourism zones.

5. Collision vs Collaboration
o Encourage partnerships between Uber/Airbnb and JUTA/Maxi Tours to incorporate local operators into the platform, avoiding exclusionary practices.

Mozilla: Future Business Model Evolution

Uber:
• Could launch “Uber Tours” or “Uber Experiences” in partnership with Airbnb hosts, expanding its Uber Freight and Eats diversification .
Airbnb:
• Could integrate mobility into booking—“Book and ride”—or add value via curated transport options around stays.
Local providers:
• Opportunity to “Uber-ify” via partnerships—digital-first dispatch, quality certification, branded chauffeur services linked to listings.

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Businessuite Special Report P1 | When Titans Unite: How an Uber–Airbnb Alliance Could Redefine Travel in Jamaica and Beyond

“When Uber and Airbnb join forces, travel transforms. But will it uplift local economies or leave them stranded on the roadside of progress?”

Published

7 hours ago

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June 28, 2025

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Are the world’s two most powerful sharing economy companies are flirting with a strategic partnership? Jamaica may be their first test market—and the stakes for local entrepreneurs, taxi operators, and policymakers could not be higher.

On a humid Tuesday morning in Kingston, Janine Brown refreshes her Airbnb app to check for bookings at her three-bedroom guesthouse near Half Way Tree. Within minutes, a reservation pings in—from a visiting digital nomad requesting airport pickup. Janine sighs. She’s partnered with a local taxi driver before, but communication gaps often result in missed connections.

“What if,” she wonders, “Airbnb just integrated transport like Uber into its bookings?”

It’s a question that could soon redefine tourism not only in Jamaica but across the Caribbean. What if Uber Technologies, Inc. and Airbnb, Inc. are already exploring ways to deepen their offerings and boost user stickiness by seamlessly integrating accommodation and mobility into a single, fluid travel experience?

Disruptors at Work: Their Business Models Explained

Uber Technologies, Inc.
• Headquartered in San Francisco, Uber pioneered ride-hailing by bypassing traditional taxi medallion systems.
• Its revenue streams now span Uber Eats (food delivery), Uber Freight (logistics), and ride-hailing in over 70 countries and 15,000 cities worldwide.
• In Jamaica, it operates under a lease-driver model, directly challenging associations like JUTA, Maxi Tours, and JCAL, which historically dominate regulated taxi services for tourists.

Airbnb, Inc.
• Also based in San Francisco, Airbnb revolutionized hospitality by enabling homeowners to list short-term rentals.
• It earns via commissions on bookings, with 150 million users globally.
• In Jamaica, it has democratized the accommodation market, empowering micro-entrepreneurs to bypass traditional hotel chains.

The Partnership That Could Change Everything
Imagine this:
• Booking a Montego Bay villa on Airbnb includes a pre-arranged Uber pickup from Sangster International Airport.
• Guests receive curated “Uber Experiences” for local tours, bar hops, and cultural immersions—all within the app ecosystem.
• Hosts earn commissions on rides booked through their listings, incentivizing deeper collaboration.
Such an alliance isn’t unprecedented. Uber previously partnered with Hilton to integrate ride bookings for hotel guests. But the scale and implications of an Uber–Airbnb tie-up would dwarf prior initiatives.

Implications for Jamaica’s Transportation and Hospitality Sectors

Ground Transportation:
Traditional operators like JUTA and Maxi Tours risk losing relevance if Uber consolidates tourist pickups and island tours. Their competitive advantages—licensed drivers, brand trust, and association networks—could erode if digital convenience outweighs regulatory preference.
“Uber is forcing us to innovate or die,” one Kingston taxi association leader told Businessuite, requesting anonymity to avoid backlash.

Hospitality:
Airbnb hosts stand to benefit significantly. Bundled transportation would enhance their value proposition, differentiate them from traditional hotels, and streamline guest experiences. However, large hotels and resorts could view this integration as existentially threatening, prompting them to lobby for restrictions on unregulated guest transport.

Risks of Market Domination
• Local Entrepreneurs: While integration may increase bookings and transport reliability, platform dominance could marginalize small tour operators and independent taxi drivers.
• Economic Leakages: Greater revenue share could flow out of Jamaica to foreign-owned platforms, limiting tourism’s multiplier effect on local economies.

Policy and Legislative Imperatives
The Jamaican government faces complex decisions:
1. Licensing Parity: Should Uber drivers be held to the same rigorous standards as JUTA drivers to ensure safety and fairness?
2. Taxation: How will platform commissions be taxed to protect local revenue while encouraging digital innovation?
3. Consumer Protection: Will bundled services maintain quality, insurance coverage, and accountability in cases of accidents or scams?
Without proactive regulation, Jamaican SMEs risk being steamrolled by Silicon Valley giants leveraging scale and data synergies.

Business Models in Response

Traditional Operators:
• Developing proprietary apps with real-time bookings, transparent fares, and service ratings.
• Forming alliances with platforms to remain integrated in the new digital-first ecosystem.
Hotels and Resorts:
• Lobbying for platform regulations while investing in exclusive airport transfer partnerships or premium shuttle services to maintain differentiation.
Entrepreneurs:
• Leveraging the integration by offering unique experiences that Uber or Airbnb cannot easily replicate, such as personalised heritage tours, culinary immersions, and community-based initiatives.

The Global Implication
A successful pilot in Jamaica could become Uber and Airbnb’s blueprint for emerging markets, especially in tourism-dependent economies from Barbados to Bali. It could redefine how travellers book, move, and experience destinations, consolidating the entire journey into two apps and further entrenching the dominance of Big Tech in local markets.

Businessuite’s Final Take
“When Uber and Airbnb join forces, travel transforms. But will it uplift local economies or leave them stranded on the roadside of progress?”

The Jamaican government, tourism leaders, and small entrepreneurs stand at a critical inflection point. Embracing technological integration while crafting balanced policies will determine whether the island remains merely a passive stage for global disruptors—or becomes an empowered, co-creative player in the new travel economy.

By Businessuite Contributor

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India’s 10-Minute Delivery Boom: A Blueprint for Disruption—and a Wake-Up Call for Caribbean Courier Companies

While the Caribbean market differs significantly in terms of geography, population density, and infrastructure, India’s 10-minute delivery trend signals a major shift in consumer expectations and service standards that cannot be ignored. Caribbean courier and logistics companies must take this as a call to evolve or risk irrelevance.

Published

6 days ago

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June 22, 2025

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India is currently experiencing a radical transformation in its retail and logistics sectors, driven by the explosive rise of quick-commerce (q-commerce) and the 10-minute delivery promise. Platforms like Blinkit (Zomato), Zepto, Swiggy Instamart, and Flipkart Minutes are reshaping consumer expectations, retail operations, and supply chains through hyperlocal fulfillment and lightning-fast logistics. As the trend spreads across urban and tier-2 Indian cities, it offers both a glimpse into the future of delivery and a warning for other regions—including the Caribbean.

Inside India’s 10-Minute Delivery Revolution

The delivery model hinges on speed, convenience, and proximity:

  • Companies now offer a growing range of products—from groceries and snacks to electronics and pharmaceuticals—delivered in under 10 minutes.

  • Consumers, especially Gen Z and millennials, are driving demand for instant gratification, backed by digital platforms and mobile-first lifestyles.

  • The rise of micro-fulfillment centers or “dark stores”—small warehouses strategically placed within dense neighborhoods—makes this model viable and scalable.

  • AI-driven inventory management, smart rider dispatching, and urban logistics innovation are pushing the boundaries of traditional supply chains.

As a result, India’s urban logistics infrastructure is being reshaped, and tier-2 and tier-3 cities are becoming growth frontiers for quick-commerce and smart warehousing.

Implications for Caribbean Courier and Delivery Companies

While the Caribbean market differs significantly in terms of geography, population density, and infrastructure, India’s 10-minute delivery trend signals a major shift in consumer expectations and service standards that cannot be ignored. Caribbean courier and logistics companies must take this as a call to evolve or risk irrelevance.

1. Rising Expectations for Speed and Convenience

Consumers across the Caribbean—particularly in urban areas and among younger demographics—are becoming accustomed to same-day or next-day delivery through global platforms like Amazon, Shein, and even regional players. As q-commerce normalizes faster fulfillment, local consumers will begin demanding shorter delivery windows, even for basic items.

Action: Caribbean courier companies must optimize last-mile delivery using routing software, rider apps, and hyperlocal delivery hubs to reduce travel time and improve efficiency.

2. Opportunity for Micro-Fulfillment and Smart Warehousing

The Indian model shows the power of small-scale, decentralized warehousing. In Caribbean cities like Kingston, Port of Spain, Bridgetown, and Nassau, underutilized retail spaces and urban properties can be converted into dark stores or inventory depots to support fast local fulfillment.

Action: Logistics players and even supermarkets or pharmacies should collaborate to build shared micro-warehousing infrastructure, possibly using a cooperative model to manage costs and logistics.

3. Platformization and Tech Partnerships

Q-commerce in India is driven by advanced tech platforms, real-time inventory systems, and intelligent dispatching. Many Caribbean companies are still operating on legacy systems with little digital integration.

Action: Courier services must invest in tech-enabled platforms—either by building in-house apps or partnering with regional tech startups—to offer app-based ordering, real-time tracking, and integrated payment solutions.

4. Gig Economy and Flexible Workforce Models

India’s delivery model depends on a mix of full-time and gig delivery riders, supported by incentives and flexible shifts. The Caribbean’s informal workforce presents a similar opportunity.

Action: Embrace a gig workforce model with structured onboarding, safety protocols, and performance incentives—without compromising rider well-being.

5. Regional Logistics Integration

Small market sizes and geographic fragmentation in the Caribbean make it difficult to achieve India-style scale. However, regional integration—via a Caribbean logistics alliance or digital fulfillment network—could increase efficiency and reduce cross-border delivery costs.

Action: Policymakers and private players should explore multi-island logistics hubs, shared air/sea freight routes, and cross-border fulfillment platforms.

Challenges and Considerations

  • Urban infrastructure in Caribbean cities is often unprepared for high-frequency delivery services; road congestion and informal address systems remain issues.

  • High import dependency makes local warehousing more complex; inventory planning needs to factor in shipping times and customs clearance.

  • Worker rights and labor protections must be addressed early to avoid India’s growing criticism over gig worker exploitation.

  • Sustainability and profitability need to be prioritized; Caribbean companies cannot afford long-term losses in pursuit of unsustainable speed.

Conclusion: Learn, Localize, Lead

India’s 10-minute delivery boom presents a compelling case study in innovation under pressure. For Caribbean courier companies, the key takeaway is clear: consumer behavior is changing fast—and local businesses must move faster.

Rather than trying to replicate India’s model exactly, Caribbean firms should localize quick-commerce strategies, leverage technology, and reimagine urban logistics in ways that reflect the region’s unique strengths and constraints.

The companies that act now to digitize, decentralize, and adapt will not only survive but could lead a Caribbean logistics transformation—setting new regional benchmarks for speed, service, and customer satisfaction.

India’s 10-Minute Delivery Boom: Reshaping Retail, Logistics, and Urban Spaces

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