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   Technology StocksPeer-to-Peer, Gig and On-Demand Economies


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To: TimF who wrote (826)2/22/2021 7:01:20 AM
From: Glenn Petersen
   of 845
 
The pressure domestically is only going to increase under the Biden administration.

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To: Glenn Petersen who wrote (828)2/22/2021 11:02:45 AM
From: Kirk ©
   of 845
 
Can you imagine if the post office, FedEx or UPS charged for delivery based on the value of what was shipped?

You hear stories of people ordering a cup of coffee, milkshake or a small burger and fries that is delivered with some "samples" taken from it. My guess is the drivers were paid as a percentage so the fee and tip didn't pay for their gas so they ate a few fries or sipped some of the milk shake. The restaurants would probably do much better charging a fixed delivery fee added to their regular prices (perhaps based on miles driven) where they let the drivers keep the whole fee. I'd order MORE to get over the delivery fee just as when I get Chinese takeout now I order enough for a couple of meals so I can justify the time to drive and higher cost vs cooking my own food.

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To: rogermci® who wrote (827)3/1/2021 10:27:34 AM
From: Rarebird
   of 845
 
Uber has bottomed and is headed to 90+.

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To: Rarebird who wrote (831)3/1/2021 10:40:51 AM
From: rogermci®
   of 845
 
I have no reason to doubt you. Your track record on calls is very good.

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To: Glenn Petersen who wrote (829)3/2/2021 5:18:21 PM
From: rogermci®
1 Recommendation   of 845
 
LYFT just raised Q1 EBITDA forecast. The company attributes the improvement in its Adjusted EBITDA outlook to reduced operating expenses. Reduced operating expenses rule the day for ride share operators. UBER trading 56 AH.

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From: Glenn Petersen3/5/2021 7:40:10 AM
   of 845
 
Exclusive: Instacart mulls direct listing in snub to IPOs - sources

By Joshua Franklin, Anirban Sen, Krystal Hu
Reuters
March 5, 2021
5 MIN READ

(Reuters) - U.S. grocery delivery app Instacart is considering going public through a direct listing, concerned that it could leave money on the table through a traditional initial public offering (IPO), according to people familiar with the matter.

The move would make Instacart the latest company to snub an IPO, for decades the primary path to a stock market debut, because it risks pricing its offering too low compared to where its shares end up trading. In a direct listing, companies go public without raising money through a stock sale.

Shares of newly listed U.S. companies that went public through an IPO ended trading up 36.2% on average on their first day last year, compared to 17.2% in 2019, according to data firm Dealogic.

Investment bankers say they often struggle to price in the impact of huge investor demand for popular consumer names, such as home-sharing start-up Airbnb Inc and food delivery app DoorDash Inc, given the limited initial stock float of these companies. Some venture capital investors, such as Benchmark general partner Bill Gurley, say bankers keep IPO prices low to favor their Wall Street clients.

Instacart has no short-term need for cash after raising $265 million in a private fundraising round earlier this week. The company’s business has benefited from more consumers shopping groceries online more to cook at home during the COVID-19 pandemic.

Investment bankers working on Instacart’s listing have estimated that it could be valued by the stock market at more than $50 billion, two of the sources said. Instacart said earlier this week its latest fundraising round valued it at $39 billion.

The San Francisco-based company has yet to make a final decision on how it will go public, the sources cautioned, requesting anonymity as the discussions are confidential.

Instacart declined to comment.

IPOs have been on a tear since last summer as markets rallied following the Federal Reserve’s moves to support the U.S. economy during the COVID-19 pandemic. Yet their popularity has been eroding as more companies choose to go public through mergers with special purpose acquisition companies (SPACs) or direct listings.

There were 208 IPOs excluding SPACs last year, the most since 2015, according to Dealogic. By comparison, 249 SPACs went public through IPOs. Two prominent direct listings last year were those of technology firms Palantir Technologies Inc and Asana Inc.

IN SPOTIFY’S STEPS

Only a handful of companies have gone public through a direct listing since it was pioneered in 2018 by music streaming platform Spotify Technology SA.

U.S. gaming platform Roblox Corp abandoned plans for an IPO earlier this year because it did not want to leave money on the table. It is slated to debut on the New York Stock Exchange (NYSE) next week through a direct listing.

U.S. cryptocurrency exchange Coinbase Global Inc has said it is looking to go public through a direct listing. Online broker Robinhood and robotic software startup UiPath Inc also considering choosing a direct listing over an IPO, according to people familiar with the matter.

Robinhood and UiPath declined to comment.

Once a company goes public through a direct listing, insiders can typically sell their shares immediately rather than be restricted for months, as is the case with IPOs.

A company can also sell its shares in the open market to raise capital following a direct listing without restrictions, typically after it has reported quarterly earnings. Some companies opting for direct listings also choose to raise money before they go public through private fundraising rounds.

The NYSE now offers companies the option to raise money in a direct listing after the U.S. Securities and Exchange Commission approved it in December.

Under the NYSE’s new model, new shares being sold in the newly listed company have to trade within a pre-set range for money to be raised, or the listing has to be postponed. No company has taken up this option so far, though dozens have contacted the NYSE to express interest in it and several are actively pursuing it, according to a person familiar with the matter.

The NYSE declined to comment.

Reporting by Joshua Franklin in Boston, Anirban Sen in Bangalore and Krystal Hu in New York; Editing by Greg Roumeliotis and Grant McCool

Story Link

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From: TimF3/8/2021 3:18:36 PM
1 Recommendation   of 845
 
How dare they not want to be rescued
Natalie Solent (Essex)

Two days ago the BBC reported that the Supreme Court had ruled that Uber drivers are workers rather than being self-employed.

With what glad hosannas did the drivers greet the news of their liberation!

Er, no. As Sam Dumitriu writes in CapX,
Putting questions of legality to one side, it’s clear Uber’s business model works for drivers. If you don’t believe me, just ask them. Countless surveys have found that the majority of Uber drivers are happy with the status quo and would not sacrifice flexibility for greater security.

A survey carried out by Oxford University academics Carl Benedikt Frey and Thor Berger, in partnership with Uber, found that drivers reported higher levels of life satisfaction compared to other London workers, despite on average earning less. And, counter to the conventional wisdom, drivers typically worked full-time in other jobs before choosing to shift to Uber. Furthermore, more than four-fifths of drivers agreed with the statement: ‘Being able to choose my own hours is more important than having holiday pay and a guaranteed minimum wage’. They found that drivers would accept a move to fixed hours – but only if it came with a 25% pay rise.
Perhaps they had looked across the Atlantic and seen the results of California’s attempt to save gig economy workers from working in the gig economy:
In Uber’s home state of California, 70% of drivers backed Proposition 22, a ballot measure that created a carve-out for ridesharing services from the state’s tough laws on freelance work. The measure passed with 59% of the vote in November.

AB 5, the freelancer law which Prop 22 was responding to highlights how interventions designed to solve a problem in one market can have unintended consequences in others.

When it passed, Vox published an article: “Gig workers’ win in California is a victory for workers everywhere”. A month later they published another article: “Freelance journalists are mad about a new California law. Here’s what’s missing from the debate. The alternative to AB5 would be worse”. Two months later, Vox Media itself cut hundreds of freelance writing jobs in California.
samizdata.net

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From: Glenn Petersen3/15/2021 6:47:08 AM
   of 845
 
Amazon-backed Deliveroo aims to raise $1.4 billion in upcoming IPO

PUBLISHED MON, MAR 15 20216:28 AM EDT
Sam Shead @SAM_L_SHEAD
CNBC.com

KEY POINTS

-- Alongside Amazon, Deliveroo is also backed by investors including Durable Capital Partners, Fidelity, T. Rowe Price, General Catalyst, Index Ventures and Accel.

-- Deliveroo was valued at $7 billion in July when it raised an additional $180 million from investors.

-- Reports have suggested that it could be valued at around $10 billion following the IPO.

LONDON - Food delivery service Deliveroo is seeking to raise £1 billion ($1.4 billion) by selling new shares in its upcoming initial public offering on the London Stock Exchange.

The company announced Monday that some of its existing shareholders will also sell some of their shares.

Alongside Amazon, Deliveroo is also backed by investors including Durable Capital Partners, Fidelity, T. Rowe Price, General Catalyst, Index Ventures and Accel.

Deliveroo is also planning to offer £50 million of stock to its customers.

Some early Deliveroo backers stand to make a 60,000% return on their investment, according to a report from tech media website Sifted on Monday.

Deliveroo was valued at $7 billion in July when it raised an additional $180 million from investors. Reports have suggested that it could be valued at around $10 billion following the IPO.

Goldman Sachs and JP Morgan Cazenove have been appointed as the joint global coordinators for the IPO. A date the initial public offering has not been officially announced but is likely to be in the next few weeks.

A filing last week included details on Deliveroo’s dual-class share structure, which will see Deliveroo CEO Will Shu get 20 votes per share, while all other shareholders will only be entitled to one vote per share.

Last week, the company also revealed that it made a loss of £223.7 million in 2020. The losses are substantially less in 2020 than they were in 2019, however, when the London-headquartered firm recorded a loss of £317 million.

While the eight-year-old company is still in the red, its revenues climbed to £4.1 billion in 2020, up from £2.5 billion in 2019.

Deliveroo’s turnaround

Deliveroo went from near failure in 2020 amid a competition review into Amazon’s minority investment, to turning an operating profit toward the end of the year thanks to the coronavirus lockdown-driven surge in demand for online takeout services.

Today Deliveroo claims to have over 115,000 food merchants, 100,000 restaurants and millions of consumers across 12 countries. The filing shows that six million orders are made on Deliveroo every month.

Amazon backed Deliveroo in May 2019, leading a $575 million funding round in exchange for a 16% stake in the business.

In July 2019, the U.K.’s antitrust regulator, the Competition and Markets Authority, argued that Deliveroo’s cash injection from Amazon could reduce competition by removing the possibility of the e-commerce giant re-entering the market, while Deliveroo could “cease to be distinct.” It froze the investment for almost a year while it investigated.

To the disappointment of rivals Just Eat and Domino’s Pizza, the deal was approved by the CMA in August after Deliveroo said it could go out of business without the capital.

As interest in the food delivery market continues to grow, UBS analysts have named seven stocks in the sector that are set to pop by up to 30%.

People ordering takeout more frequently — and spending more when they do — means the sector could reach a value of almost $400 billion by 2024, the bank said. A Euromonitor estimate, meanwhile, said it could be worth $1 trillion in the next decade.

— Additional reporting by CNBC’s Ryan Browne.

Story Link

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To: rogermci® who wrote (833)3/15/2021 10:37:47 AM
From: Rarebird
   of 845
 
If I am right and UBER is about to take off in its strongest wave, $85 will be the minimum and $95 is more likely before the next consolidation/corrective phase.

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To: Rarebird who wrote (837)3/15/2021 11:14:22 AM
From: rogermci®
   of 845
 
That would be sweet. Thanks. A lot of chart set ups look good and you have a knack for picking up on that.

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