For many immigrants such as myself, remittance is part of the life living overseas. We work hard here and send a bit of help back home whenever we can. In normal times, such assistance is a nice touch. In times like this when many parts of the world such as Vietnam are in strict lockdown because of Covid, it becomes even more critical and appreciated. In times like this, it matters more which remittance providers we entrust with our money to family and loved ones. In this post, I’ll tell you which ones I’d use myself, what I’d not and why.
When it comes to choosing a provider through which I can send money back home, these are the main selection criteria:
Are they reliable? This is money we’re talking about. Of course, we want it to be safe and secure. Luckily, the most popular services on the market have a good reliable track record. If not, they wouldn’t service in this business.
How long will it take for money to be deposited? Nowadays, it takes much less time for recipients to see money show up in their bank accounts than it did just a few years ago. A transfer can arrive at the receiving account in a few hours or within a day. My experience is that the top providers can transfer funds at pretty much the same speed.
How much does it cost in total? This is THE deciding factor. Influencing the net amount that recipients receive are the fees and the exchange rate. The best way to evaluate different services is to look at the final amount that will be credited to the destination account.
I conducted two experiments in which I looked at what would happen if I transferred $1,000 to Vietnam and India using the most inexpensive method through 6 select providers: Xoom/PayPal, Money Gram, World Remite, Ulink Remit, Western Union and Wise. Here are the results:
$1,000 from the U.S to Vietnam
$1,000 from the U.S to India
Figure 1 – Net amount received when $1,000 is sent to Vietnam & India using different remittance services
In both cases, Wise, Western Union and Money Gram are very competitive. Ulink Remit should be considered if the destination is India. Both World Remit and PayPal should not be considered. I don’t know about the value of a few Rupees in India, but if I have to lose a couple of thousand Vietnam Dongs on every $1,000 sent back home, I’ll be put off. Personally for me, Western Union, Wise and Money Gram will be the go-to services to send money to Vietnam. What is yours?
The economics of dollar stores. An excellent post by The Hustle on how dollar stores work. The most interesting things to me are 1/ unit prices on some items at these stores can be higher than those at bigger chains such as Target or Walmart. The absolute prices are lower, but they are also on a much smaller volume. 2/ These stores seem to be more concentrated in poorer neighborhoods. I read somewhere that richer customers don’t mind the stigma of buying stuff at dollar stores. I wonder if that’s still true and how much the trend is a boost to these stores’ business.
How a Beer Giant Manages Through Waves of Covid Around the World. A great story of how a global business uses data analytics to make decisions in the tumultuous pandemic. Even when the AB Inbev’s data team accurately predicted the second surge in India, it did get the previous predictions wrong. Nobody has a crystal ball to see the future. All we can do is to increase the odds with a wealth of data and machine computing.
Mac sales in India tripled after online Apple Store opened. One aspect of Apple’s business that I think should be discussed more is its retail stores and website. The report here credited the presence of Apple’s website for the significant increase in sales. I also learned from the article that to launch own-brand eCommerce sites in India, companies need to source locally 30% of their production. I guess there is a side benefit of expanding supply chain in India, apart from lowering the risk of over-reliance on China.
An interesting article on the next CEO of Amazon, Andy Sassy. The level of detail orientation described in the article is admirable. I love the concept of the Wheel of Death. People naturally tend to get complacent. Having them on their toes and preserving the unpredictability is a great way to ensure that they perform to the level required.
Why DoorDash and Uber Eats Delivery Is Costing You More. The service and delivery fees seem to be bigger than they were before Covid. I am not so sure if that trend is positive to the future of these delivery companies. At some point, it would hurt the relationship with merchants
Walmart is losing its grips on grocery. I don’t really expect Walmart to catch up with Prime soon, but it’s a bit surprising to me that the company is losing its lead in grocery, their bread and butter.
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