The highest court in UK ruled that Uber drivers have to be classified as employees. Uber cannot appeal further in the UK; as a result, unless it wishes to exit the UK market, especially London, operating expenses will likely increase from now on. Another interesting detail from the ruling is that workers should get paid whenever they are logged into Uber’s system and poised to accept rides. On the other hand, Uber argued that the ruling would only apply to Uber’s Mobility, not Uber’s Delivery. I don’t know if that’s factually true, but I don’t like their chances.
Jacquard by Google. The product category may be interesting, but I am not sure that folks are ready for it. It’s bad enough that we carry around our phone with us every single waking moment in this digital life. Whether consumers agree to carry another device, no matter how small, remains to be seen, especially when the device comes from a company like Google, which is notorious for tracking users.
Next time if you want to support local restaurants by ordering on delivery services like Grubhub or DoorDash, you may want to do a bit of research on how those services treat restaurant partners. Here is an example
Starbucks has around $1.6 billion in stored value card liabilities outstanding. This represents the sum of all physical gift cards held in customer’s wallets as well as the digital value of electronic balances held in the Starbucks Mobile App.* It amounts to ~6% of all of the company’s liabilities.
This is a pretty incredible number. Stored value card liabilities are the money that you, oh loyal Starbucks customer, use to buy coffee. What you might not realize is that these balances simultaneously function as a loan to Starbucks. Starbucks doesn’t pay any interest on balances held in the Starbucks app or gift cards. You, the loyal customer, are providing the company with free debt.
Charlie Munger, Unplugged. I try to read as much as possible about Charlie Munger. This is a great interview with him. The part I like most about the interview is when Charlie talked about how he read till he slept.
In News Industry, a Stark Divide Between Haves and Have-Nots. An insightful and fascinating piece on the struggle of newspapers as a whole to generate digital revenue to offset the loss in ads dollars. Only a few exceptions and the Big Three (WSJ, The Times and The Post) seem to have managed reasonably well.
Uber Wants to Be the Uber of Everything—But Can It Make a Profit? The “we are going to be the Amazon of transportation” narrative will be used a lot ahead of Uber’s IPO. I can see some value in that, but frankly, I don’t believe that is the case at the moment. The level of competition that Amazon had to face back in the day and Uber has to face now is likely different. I doubt Amazon faced a lot of legal challenges as Uber has had up to now. Plus, the economics of the two companies aren’t the same. Look at the chart below and see if there is any similarity between the two
Ilargi: Renewables Are Dead. I find renewables polarizing as a subject. There are fans on each side of the argument. No matter what, I guess if we hadn’t tried, we wouldn’t have known what we know now.
New Data: The Airbnb Advantage. According to AirBnb, New York, London and Paris make up less than 3% of its total listings and no city makes up more than 1% of the listings.
The Enormous Numbers Behind Amazon’s Market Reach. A nice overview of where Amazon stands in various industries with visuals. 42% of the book retailing market, 45% of the E-commerce space, 32% of the cloud computing market, 35% of the online apparel area. From a business strategy and execution standpoint, Amazon is a remarkable success.
Death by a Thousand Clicks: Where Electronic Health Records Went Wrong. An astonishing and remarkable (long) read on Electronic Health Records in America. I urge you to have a read if you stumble upon this post of mine. Despite throwing billions of dollars at the nationwide EHR effort since President Obama’s first tenure, America has had little to show for it. I’ll let the former Vice President – Joe Biden share his story: “I was stunned when my son for a year was battling Stage 4 glioblastoma,” said Biden. “I couldn’t get his records. I’m the Vice President of the United States of America … It was an absolute nightmare. It was ridiculous, absolutely ridiculous, that we’re in that circumstance.”
Digital India. A very interesting report by McKinsey on the digital landscape in India. Sneak peek below
The Big Brexit Short. I really like this kind of investigative videos by Bloomberg. I honestly don’t follow Brexit enough. Hence, it’s good to know about this potential scheme. I highly recommend you check out Bloomberg’s Youtube channel. Treasure trove of good information.
What the hell is going on. A very long, yet informative study on how the switch from information scarcity to information abundance affects business, education and politics.
Inside AirBnb’s “Guerrilla War” against Local Governments. A very good article on how AirBnb fought local governments in the US to avoid taxes and restrictions that the local lawmakers sought to put on them. I am a believer in the fact that if the law allows you to avoid taxes, you have every right to not pay taxes and stay competitive. However, fighting hard to stop new laws (laws always play catch-up with the business world) intended to make AirBnb pay taxes is a bit too far. Loss of taxes strips a local government of necessary revenue to fund projects that will benefit citizens. If your business earns millions of dollars in revenue and profit, what’s the reason for not paying taxes? Simply by “being a platform”?