Rishi Taparia - Issue #25
This week WhatsApp launches an app for small business, Amazon raises their Prime membership fee, Bitcoin crashes, Blackhawk gets a big gift card, negotiation tactics from a former FBI negotiator, Bill and Melinda gates take care of Nigeria’s debt and more. Enjoy!
Commerce
WhatsApp launches a separate app for small businesses
WhatsApp is finally pushing doing what they have long been hinting (and we have previously discussed here) - getting into business. A huge opportunity for both Facebook and SMBs, the service has the potential to drive major changes in retail consumer experience. Currently available only on Android and in select markets, it’s designed for small business owners to connect with WhatsApp users. The business app features smart messaging tools and statistics, and over time I see them potentially turning into customer CRM and demand gen.
The Future of Retail Is … Surveillance?
The National Retail Federation’s big show was this week, with retailers and service providers gathering in NYC to show off their wares and discuss the future of retail. The top takeaways from the show aren’t altogether surprising (and I’ve mentioned them here before), #3 is pretty fun though.
1. The NSA Isn’t the Only One Spying on You
2. Customization Is Everything
3. Chobani May Be the Coolest Company Ever
The trick is whether retailers will execute or not. After all, vision without execution is hallucination.
The Last Place on Earth Where Everyone Still Loves Kmart
The hotspot to visit in Guam? Kmart. Outside the reach of Amazon Prime, the Guam Kmart is open 24 hours a day and mainly caters to the 1.5 million tourists that visit the island. How much do tourists love the place? Guam Kmart does $100m+ in revenue, compared to the $9m average.
Amazon is raising its monthly Prime membership rate
Amazon is raising the prices of its Prime services by 18 percent for monthly subscribers. With an estimated 88 million subscribers, the increase doesn’t look like it will make an impact - only 2% churn is expected after the increase. It’s certainly good to be Jeff Bezos.
FinTech
This week’s Bitcoin crash was all about fraud and regulation
Crypto had a tough week. The value of bitcoin dropped precipitously, going as low as 50 percent of its 2017 peak, and other currencies, such as Ethereum, Ripple, and Litecoin have seen double-digit losses compared to their heights from last year. Regulatory risk - with overtures on a ban made by the South Korean government, China clamping down further on trading and C&D notices to BitConnect - was the major driver for the fall. The end of the week has bitcoin rebounding back slightly, but this week has illustrated the immense amount of volatility and uncertainty in the crypto space.
Visa will not process bitcoin transactions, says CEO Alfred Kelly
Visa CEO Al Kelly went on CNBC this week with a clear message: No thank you. Visa won’t touch it, the credit card giant’s CEO told CNBC. “I don’t view it as payment system player,” Alfred Kelly said in an interview. “We will only process fiat currency-based transactions.”
Tips for crypto newcomers
For anyone interested in learning more, this post is a terrific guide to the crypto basics, with a number of resources that will keep you busy for longer than you can afford.
Behind Silver Lake's $3.5 billion gift card deal
Gift card network Blackhawk announced a $3.5bn takeover by Silver Lake this week. A 24% premium to the previous day closing price, this marks the end of a few attempts by the PE giant to acquire the company. A hefty price to pay, but a unique asset that can be leveraged as an alternate to the major card networks. Considering Blackhawk’s recent Alipay partnership, it wouldn’t be surprising to see this be the foundation for a non-V/MC/A/D payment rail focused on driving the adoption of digital payment methods through traditional infrastructure.
Technology
For These Young Entrepreneurs, Silicon Valley Is, Like, Lame
A trip to Silicon Valley is something of a rite for ambitious Chinese startups and investors looking for inspiration in global tech’s mecca of innovation. But a visit last week failed to impress. Silicon Valley’s allure is fading. China is described as poised to lead the way on innovative technology. but this tidbit from the article caught my attention:
While the few older 40-somethings in the group admired Silicon Valley’s idealism, the younger ones were less impressed. They said that moonshot ideas and long development times don’t work in China because investors are less patient and copycats are so rife that businesses have to get products to market superfast.
How do you lead the way absent inspiring with moonshots?
Random Tidbits
The Art of Letting Other People Have Your Way: Negotiating Secrets from Chris Voss
“Genuine curiosity is a hack for emotional control.” This podcast is an insightful discussion between Shane Parrish of Farnam Street and former FBI negotiator Chris Voss. A bunch of counterintuitive tactics and ways to implement are discussed. If you’re interested, here’s a link to Chris’ book, a solid read that goes very deep into the strategies.
Singapore’s crime rate is so low that many shops don’t even lock up
Closing up shop typically involves locking up, putting any cash the safe and bolting a few doors. In Singapore it seems to mean just pulling down the tarps and walking around a velvet rope. Singapore is so safe that many shops don’t feel the need to secure their stores. In 2016 the city experienced 135 total days without any crimes. It makes sense when you consider the high level of surveillance and relatively small size of the city-state, but even so, still pretty unreal.
Bill and Melinda Gates to pay off Nigeria's $76 million polio Japan debt
An incredible story - as Nigeria’s battles on to become a polio-free country, Bill and Melinda Gates have taken an extraordinary step to give Africa’s largest economy a helping hand through their foundation. The foundation will pay off a $76 million loan taken from Japan to aid the fight against polio.