I was talking with a newsagent yesterday who had been pitched Hubbed Connect by and ANF staff member who visited their shop. This is evidence that the ANF is promoting Hubbed. I was disturbed to hear this, to hear that an industry association employee is visiting newsagents selling or promoting Hubbed, especially when I have not seen any critical assessment of the Hubbed offer. The public enthusiasm for Hubbed being expressed by the ANF indicates that there is a commercial arrangement in place.
Here are questions I’d want answered before contemplating Hubbed further:
- What is the nature of the relationship between Hubbed and any of the newsagent associations or anyone connected with the associations?
- Specifically, is there any money or other benefit whatsoever flowing from Hubbed to any of the associations and if so on what basis?
- What due diligence has been undertaken on the Hubbed business model?
- What due diligence has been undertaken on the proposed Hubbed contracts?
- Have all the claims made by and about Hubbed to newsagents been investigated?
- Is the ANF, NANA, QNF or any other association endorsing Hubbed and if so why and if not why?
- Has the ANF, QNF, NANA or any association promoting these sessions considered what of the Hubbed services are already available in newsagencies?
From what I can tell Hubbed is not offering anything significantly different to what newsagents have FREE access to today through ePay and Touch Networks. My understanding is that Hubbed will cost newsagents $7 a day or $17 a day depending on the level of service they choose. That’s a lot of money compared to the free services available already.
I think I read somewhere that ANF or someone was given a 5% shareholding for free in Hubbed in exchange for promoting them to newsagents.
I found the information on ANF’s website where they clearly state they have a 5% shareholding in Hubbed, and expect to receive dividends from them. It answers most of your questions, except it doesn’t say anything about due diligence.
Sounds like another Bill Express to me.
http://www.anf.net.au/index.php?option=com_content&view=article&id=436:member-benefit-alert-connect-and-hubbed&catid=37:fp-newspager&Itemid=136
Dean due diligence is the key. Due diligence not just on the contractual side but also on the service offered and its appropriateness for newsagents.
Associations should not be involved in commercial activity with newsagents. They should be pure associations and they should get this right. Instead they chase commercial activities that compromise their role.
Why do the Associations never make comment to such issues that are raised on this blog?
Amanda: It’s probably because they don’t read it. The associations seem not to show any interest in opinions outside of their inner sanctum cliques !
Dean thanks for the Link. I note ANF said 5% owned by the members in their blurb. It is my belief ANF is not the appropriate vehicle for this. Now I will definitely show an interest in the next ANF elections. ANF sell the 5 % and credit my percentage against my annual fees to NANA/ANF now please.
can i ask 1 question Mark did you ask the ANF your questions and if not why not and if so did they not answer you
P, not in this detail but yes face to face – especially around due diligence.
I would have thought before accepting a 5% stake in a commercial venture that the board of ANF would consult the members. As we are not and will not be made aware of any conversations between the two parties I find it unacceptable.
As for Hubbed, I see the LPO next door with a line up of people only paying bills
and frustration of having to wait in a queue,
don’t want people only paying bills thankyou.
The moment any association takes a state in a business supplying its members it is compromised.
If ANF members have a 5% share then does that also mean that the ANF also has a liability should the platform go pear shaped and not be taken on by newsagencies or whoever ? Would 7-11 have a look at this ? I wouldn’t think so for that level of revenue return.
There’s lots of promises in the spiel promoting it but little that appears to offer real promise. It doesn’t matter that parcels are half the cost of sending via AP unless they are also sent with the same level of options and the same delivery period. How many millions of dollars is the company behind hubbed going to put into advertising and marketing to make the public aware of this service because that’s what it would take to make it truely recognised. Who are the service partners that offer the services being integrated into hubbed ?
This has just about finally convinced me to cease my QNF/ANF membership.
Paul,
The figure I have heard is $900k has been allocated for an Australia wide launch. No where near enough I would not expect
For it to be traffic generating it need a bigger spend but before they spend anything they will want a network but before newsagents join they will want guarantees on income, costs and above the line marketing spend. Kind of catch 22 possibly leaving Hubbed to possible be a leech service – relying on existing traffic. If this is the case, that it relies on existing traffic, it is of no significant net benefit to newsagents. These are factors that should have been considered in due diligence.
Mark you don’t know anything about Hubbed and you are getting newsagents offside its another great idea to create customer base if you market well now some newsagents might not want it that’s fine but some will its because you haven’t come with idea that’s why you giving rubbish two it. I think we should be supporting ideas that give newsagents another revenue
Nathan what I know about Hubbed I gleaned from a presentation in Tasmania, the literature they use in their newsagent sell-in and their website.
It’s not my intention to get newsagents offside as you put it. Rather I want newsagents to look at it with as critical an eye as they would any new product or service they take on.
In fact, I want them to be more critical because their own association has abrogated their responsibility by entering into a commercial arrangement with Hubbed.
If some newsagents want to go with Hubbed then they should.
The questions I have suggested be asked have nothing to do with the origin of Hubbed. You accuse me of an ego I don’t have. My sole concern is the amount of money newsagents are being asked for to fund an unproven service that offers, in my view, services that will either not generate revenue or services that already exist in newsagencies for little or no cost.
My questions are fair and unemotive questions. You could do well to take a similar approach.
My position, my connections, are well known. What are yours?
After what was one of the biggest scandles to hit the industry with Bill Express, the handling of Hubbed by associations feels like groundhog day.
Given the past situation with Bill Express, the actions of the associations in endorsing and taking a financial interest in Hubbed are not only compromising to their ability to represent newsagents, but negligent in their duty to members.
On the actual service itself, all that it appears to be is an in-store replica of services easily available online. Its a business model that is already dying or in some sectors already dead.