Rishi Taparia - Issue #82
This week we look at the breakup between Gap and Old Navy, surprising customer satisfaction scores in the battle of fintech vs. bank, Bill Gates’ thoughts on 10 breakthrough technologies, the daily routine of an 8 month old and more. Enjoy!
Commerce
Gap and Old Navy are splitting up
It’s not you, it’s me. At least that’s what seems to have happened between Old Navy and the Gap, who announced this week that the two companies would be splitting up. Old Navy, which has been the shining star in the Gap portfolio having grown to $8bn in sales since first starting out in the mid 90s, gets the chance to stretch its legs and see what it can really do as a standalone publicly traded company. Gap, meanwhile, needs to figure out how to recapture the market’s attention. The company’s Athleta and Hill City brands will remain with the Gap (for some strange reason) but if the Gap doesn’t successfully navigate through the next few years, Old Navy won’t be the only brand to swipe left on the retail giant.
FedEx reveals a package-delivering robot backed by Walmart, Target, and Lowe's that can climb stairs and carry hot food
So many people are getting into autonomous delivery bots you’d think Oprah was giving them away to the whole world. Pepsi, Amazon, Postmates (to name a few) are now joined by FedEx in the robot delivery game. Now, anything FedEx does when it comes to moving items from point A to point B will have some heft to it (at least when it comes to marketing). Robot delivery is no different, with the shipping giant having partnered with (read: gotten to comment in a press release) Walmart, Target, Lowe’s, Pizza Hut, and Walgreens to make this white box on wheels. Supposedly hitting the streets of Memphis this summer, I picture a not too distant future where autonomous delivery robots are cutting each other off in the streets, beeping snarky comments at one another on the way to drop off their goods.
Amazon’s mistake: Its mission to sell “every genuine product in the world”
A tremendous long read by Jason Del Ray of Recode who explores Amazon’s growth strategy to now and why it could be jeopardizing what it values most — customer trust — in pursuit of building “the everything store.” Oh, and on that same note, Amazon is launching a non-Whole Foods grocery store later this year…
FinTech
Acquiring Banks Outdo Fintechs and Big Processors in Merchant Satisfaction, J.D. Power Finds
JD Power did a study looking at bank acquirers (Chase, BBT, Capital One), JVs (like the ones between FD and Citi / FD and BofA), fintechs (Square, Intuit, PayPal, Square, and Visa) and processors (Elavon, FD et al).
“Using a zero to 1,000-point scale typical of J.D. Power rankings, the bank acquirers scored 863 in overall satisfaction followed by 847 for the bank/First Data joint ventures, fintechs at 843, and scale processors at 806.”
Color me surprised (and seriously questioning JD Power methodology, wondering who paid for the study and why companies like Stripe and other POS companies weren’t included…)
The Problem for Small-Town Banks: People Want High-Tech Services
The consolidation of banking has led to the shuttering of thousands of community banks. Further, consumers have moved to larger lenders offering online transactions, which means they don’t necessarily need a local branch. The transfer of deposits - and technology - away form community lenders have left behind struggle (and in my opinion, a huge opportunity for a startup or startups to enter.
Affirm’s latest partnership brings its alternative financing to Walmart’s US stores and website
Affirm landed the world’s largest retailer as a partner for its alternative financing product. Available in 4,000 Walmart supercenters and soon to be brought online, this is a major coup for Max Levchin’s company. Bringing a new payment method into a retailer is no small feat, and to do it across Walmart is especially impressive and highlights Walmart’s desire to bring in the millennial consumer, particularly for higher ticket items.
Technology
10 Breakthrough Technologies 2019, curated by Bill Gates
Bill Gates lists his top 10 breakthrough technologies for the year 2019. A fascinating list, it ranges from robot dexterity to cancer vaccines and talks through the benefits of each, who’s working on them and what the impact is.
Daimler and BMW enter long-term partnership for self-driving cars
Daimler and BMW have entered an autonomous car partnership that will see the duo collaborate to bring new technology to market within 5 years. Quite the collaboration considering the fierce competition the two companies have been in over the last few decades, but not outside the ordinary. Just last year the companies partnered on ride sharing and EV charging.
India’s Ola spins out a dedicated EV business — and it just raised $56M from investors
I’ll be honest - it came as a surprise to me that the first EV only ride sharing company has emerged out of India. A spin out of Ola, the company just raised $56m from investors with a “focus on areas that include charging solutions, EV batteries and developing viable infrastructure that allows commercial EVs to operate at scale.”
Random Tidbits
My Daily Routine: Jasper Newman, 8 Months Old
A daily routine of an 8 month old. Through the eyes of an 8 month old.
No matter how successful you are, you can always grow your network, so I try to meet one new baby a day. Granted, it’s easier when you’re in day care, but even if you’re a stay-at-home infant, there’s no excuse not to go to a playground or a singalong and mingle. I used to be shy about it, but now I just crawl right up and stare. People really respect that directness. It’s like, we both know why we’re here; let’s cut out the goo-goo-gah-gah and get down to brass tacks.
I admit to probably enjoying this a little too much.
They Think They Know You, Lionel Messi
A riveting meditation on the best soccer player in the world. Tremendous writing and a fun read, even for those of you who said “Messi who?”
Burning Digital Books and the Fight over Online Ideology
An interesting and worthwhile read on the challenges we face today with social media, open forums and how to handle them.
Groups of people really do conspire in non-theoretical ways, and sometimes they conspire to harm. But anti-vax and flat earth theories are something else entirely. Despite masks of faux-science, these are ideologies, closer to religion than the scientific method. Ultimately, people in these groups seek a tribe, and not necessarily the truth. These tribes, and all tribes, demand conformity to their truth.
Quote I’m thinking about: “Adopt the pace of nature: her secret is patience.” Ralph Waldo Emerson