The Kogan.Com Ltd (ASX: KGN) share price is down more than 1.5% on news of Kogan Energy.
Kogan.Com is an online business that was set up by Ruslan Kogan in 2006 in his parent’s garage. Kogan.Com offers a variety of products and services including Kogan Retail, Kogan Marketplace, Kogan Mobile, Kogan Internet, Kogan Insurance and Kogan Travel. The company plans to launch Kogan Super in the near future. Kogan.Com aims to offer consumers price leadership through digital efficiencies.
Kogan Energy News
The Meridian Energy Ltd (ASX: MEZ) share price is also down over 2% as its subsidiary, Powershop Australia, has entered into a multi-year agreement with Kogan.com to offer competitive power and gas services under Kogan Energy.
Powershop will supply the energy and retail services to Kogan Energy customers and Kogan is responsible for all sales and marketing activity.
Kogan Energy is expected to launch before the end of December 2019 and will aim to make energy services more affordable through digital efficiency. Details of the offer will be released in the coming months.
Meridian Energy Australia and Powershop Australia CEO Ed McManus said: “We generate some of the cleanest and greenest energy in Australia.
“Together with Kogan, we believe we can make a real difference to the energy space by delivering simple, great value, energy offerings through Kogan Energy.”
Is Kogan A Buy?
Kogan is an odd one to think about. It offers lots of services through a low-cost operating model of the internet. On the one hand you could say this is a very appealing business model, but you could also say that it is trying to put its fingers in too many pies and therefore not win in any industry.
With competitors like Amazon in the online retail space, Kogan faces a tough challenge to be a major competitor for the long term. It may very well be successful, but it’s not a bet I would want to make.
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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).
At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.