Rishi Taparia - Issue #64
This week we look at Sears’ demise, Instacart adding fuel to its fire, a major regulatory change in ecommerce, JP Morgan doubling down on the Silicon Valley, robot dances and more. Enjoy!
Commerce
When Sears Was Everywhere: Espionage, Politics and Fine Art
Sears filed for bankruptcy this week, a sad end to a true king of retail. Over its long history, the retailer has had an influence in some unexpected places. When you’ve been around as long as Sears had, you get into some stuff! Fascinating look at the extent of Sears brand reach and unusual ways it was used, including the impact it had during the Jim Crow era.
Instacart valued at $7.6 billion after new $600 million investment
I originally thought Instacart was in trouble after Amazon went into Whole Foods, Whole Foods being a big driver of Instacart’s customer and revenue growth. I was wrong. The delivery company has raised $600m, valuing the business at $7.6bn.
…by being the chief ally to brick-and-mortar retailers in a $1 trillion industry where e-commerce sales are growing 29 percent year-over-year, but still account for no more than 5 percent of total sales
No More Mail Privilege for China as U.S. to End Deep Discounts on Packages
The Trump administration opened a new front in Washington’s economic conflict with China, starting a process to withdraw from a 144-year-old international postal body whose discounts allow Chinese merchants to ship small packages to U.S. customers at steeply discounted rates. Connie Chan of Andresseen Horowitz breaks it down well in a tweet thread:
Another change has hit cross border businesses. This time impacting all marketplace companies that rely on cheap shipping of goods from China to the US (Wish, eBay, etc.)
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2/ Ever wonder how you can buy items for less than $1 with free shipping and still let the seller profit? For 114 years, the US has been part of the Universal Postal Union. https://t.co/NpXueJoPfd
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3/ The UPU classifies China as a tier 3 country, giving it the steepest shipping discounts available for items shipped to tier 1 countries like the US; ~40-70% below market prices for packages 4.4 lbs. or less.
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4/ With recent changes, marketplace companies will lose these super low cost listings, resulting in Americans paying higher prices in categories like jewelry, auto parts, housewares, accessories, fashion, small electronics. https://t.co/FPJUhX1x5r
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5/ Warehouses in the US is a bandaid, but for marketplaces, this means a reduction in product selection, higher prices, and a huge biz model shift.
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6/ Recode reports over 20% of Wish’s transactions are directly shipped from a supplier (almost always in China) to a US customer. PDD’s global expansions may also be limited.
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The long, long history of long, long CVS receipts
CVS is a drugstore much like other drugstores, with one important difference: The receipts are very long. How long are the receipts? For at least a decade, concerned shoppers have dedicated themselves to this question, producing a robust body of phone-picture literature on the subject. A highly entertaining post on why CVS has receipts long enough to make a blanket out of.
FinTech
JP Morgan CEO Jamie Dimon bets on Silicon Valley with 'fintech campus'
J.P. Morgan CEO Jamie Dimon has long touted his bank’s need to embrace Silicon Valley through investments in technology. He’s never been shy about his Valley envy. Now, after buying WePay, he’s making major moves: JPM is opening up an office built to employ at least 1,000 people.
Kleiner's Mary Meeker Is Said to Bid Up Valuation of Fintech Startup Plaid
Plaid is a great example of next generation fintech infrastructure. The company lets developers link their apps to users’ bank accounts, without taking on the headache of building the individual connections to various banks themselves. Now Plaid is in talks to raise $200 million and the valuation of the deal is rising as venture investors vie to bankroll the startup.
Square launches Terminal, an all-in-one device for card and mobile payments
Ahead of Money2020 Square introduced Square Terminal, a cheaper, hand held payment terminal rounds out their product suite. Clunkier than I would have expected (and I don’t just say that because I work at Poynt), but good enough to do the job for merchants unwilling to pay up for their register, but who need more than a dongle on a phone. Still not fully certified by PCI, but likely to happen some time in the coming months.
Technology
Watch: New video from Boston Dynamics shows robot dancing to Bruno Mars
Sometimes technology is amazing. Sometimes it scares the crap out of you. The new Boston Dynamics dancing robot is a bit of both.
Random Tidbits
It's About Time: How to Make the Tough Choices
A piece from Brad Smith, Chairman and CEO of Intuit, on making tough choices in life.
I try to break things down into what I call “rubber moments” and “crystal moments.” The metaphor is pretty straightforward: If you drop a rubber ball, it bounces back with another opportunity to engage. Dropping crystal is another story, shattering into hundreds of pieces, never to be retrieved again.
Your Real Biological Clock Is You’re Going to Die
A somber yet terrific piece on the reality of time on earth.
Quote I’m thinking about: “When small men begin to cast big shadows, it means the sun is about to set.“ - Lin Yutang