Rishi Taparia - Issue #27
This week eBay announces it’s switching off PayPal, Alibaba launches an app designed for seniors and takes a 33% stake in Ant Financial, India says no hodl to crypto, podcasts turn out to be good business, a great read on building teams by Patty McCord and more. Enjoy (and go Eagles!)
Commerce
After 15 years, eBay plans to cut off PayPal as its main payments processor
This is big news. eBay is moving off of PayPal as its main payments processor, Adyen. Not surprisingly, PayPal’s stock too a nosedive, with eBay’s rising to a record high. I wouldn’t be surprised to see eBay annoucncing a stake in Adyen ahead of what is a likely 2018 IPO for the Amsterdam-based company.
Alibaba’s Taobao has launched a special version of its app for senior citizens
Alibaba-owned ecommerce marketplace Taobao has launched a version of its mobile application, aimed at making its service more accessible to China’s ageing population. The service will include a persistent image of the user’s child, with the option for them to chat with them by clicking through (a smart and free customer support 😉). An incredibly smart move, I wonder whether this kicks off a trend of companies building product versions for the elderly.
Starbucks launches new credit card for coffee addicts
Starbucks has for some time been the poster child of mobile payments acceptance in the U.S., but even this success may be tapering off. Now they’re planning on launching a credit card. Starbucks has unveiled a Visa card that’s co-branded with banking giant JPMorgan Chase and also said a prepaid card will be rolled out later this year.
Flipkart: Walmart in talks to buy a significant minority stake in Flipkart
Amazon shouldn’t have all the fun. Walmart is looking to acquire a 15-20% stake in Flipkart, India’s dominant ecommerce payer, looking to combine efforts and compete with Amazon in India.
When Amazon Opens Warehouses
Amazon’s looking for HQ2, with interest from almost 240 cities. This long read does a tremendous job investigating the impact of the company’s rapid expansion of warehouses in low-income areas. Worth the time to read about some of the unintended consequences of ‘more jobs’.
FinTech
Alibaba agrees to take 33% stake in Ant Financial
Alibaba has agreed to acquire a 33% stake in Ant Financial, opening the way for the Chinese tech giant’s financial services affiliate to go public. In my view, Ant Financial will be a larger company in the long term than Alibaba. An incredibly smart way to get upside and grow a behemoth together.
India vows to eliminate use of cryptocurrencies
India will move to stamp out use of cryptocurrencies, which it considers illegal, Finance Minister Arun Jaitley said on Thursday, launching a no-holds-barred attack on virtual currencies such as Bitcoin.
Apple Pay accepted at 1 out of 2 U.S. stores, says Apple VP Jennifer Bailey
Speaking at NRF 2018 Retail’s Big Show in New York earlier this month, Apple Pay VP Jennifer Bailey presented a speech detailing how iPhone changed the retail landscape, and outlined the tech company’s ongoing efforts in the mobile payment marketplace. Not a bad number, but Apple is taking a bit too much credit for the reterminalization effort going on in the US, with most new terminals coming with NFC.
Goldman Sachs Acquires Team Behind Credit Card Startup Final
Goldman Sachs’ first ‘consumer’ offering Marcus has done well for the bank, growing incredibly with their offer of cheaper funding. They have now acquired Final, a company that promised to offer a 'new age credit card’. It will be interesting to see if they couple the two together, offering the card in conjunction with a working capital loan that takes them into the SME lending space.
Technology
How Amazon Rebuilt Itself Around Artificial Intelligence
Another Amazon long read this issue, but well worth the time. How Amazon transformed itself into an AI leader.
Podcast Listeners Really Are the Holy Grail Advertisers Hoped They'd Be
Podcasts have historically had a difficult medium to assess. With limited data and analytics, advertisers were unsure about how to value the content. Apple recently introduced Apple’s Podcast Analytics tools to creators and the numbers are in—podcasts are here to stay (and a good thing too!).
Random Tidbits
Powerful: Building a Culture of Freedom and Responsibility
An easy, yet incredibly insightful read on building teams and companies by Patty McCord, former Chief Talent Officer at Netflix and co-creator of the famous Netflix culture deck. It’s full of unconventional methods around hiring and scaling teams, a number of which run counter to conventional thinking. Well worth the time.
Venture Stories - Episode #14: How To Recruit, Assess, and Retain The Best People For Your Startup With Keith Rabois and Jack Altman
A worthwhile listen on hiring and culture building between Keith Rabois, Jack Altman and Erik Torenberg. Agreeing and aligning on the first principles, whether as a cofounder or prospective employee, is crucial and too often overlooked.