Sexual harassment as a cause for concern for shareholders of Uber and Lyft. US retail records. Ryder expands the most marginal part of the business.
Disclaimer: when we talk about, that something has grown, we mean a comparison with the same quarter a year earlier. Since all issuers are from the USA, then all results in dollars. When creating the material, sources were used, inaccessible to users from the Russian Federation. We hope, Do you know, what to do.
Part time economics news: sexual harassment in taxi aggregators
This week we have two news from the world of day labor..
Study. Information platform for people, working on a piecework scheme, Stride shared with Business Insider the results of a study among people, working as drivers for the last 6 months in the USA:
- 90% new drivers perform mainly delivery work, only a few are engaged in the transportation of passengers. 25% of respondents are engaged only in the delivery of products;
- only 7% of respondents work on platforms like Uber or Lyft - it looks like, they are loaded with retail chains;
- more than 2/3 of new drivers — women;
- about 20% of respondents plan to return to full-time work in the foreseeable future, which you did before.
The results of the study mainly indicate that, that delivery and taxi companies, in fact, have already exhausted the pool of labor available to them: the abundance of women hints at this. There weren't many female drivers in general before the pandemic., and that, that they suddenly began to fill this niche, contributed to that, that women have been hit harder in the job market by the pandemic than men. Someone's workplace was simply liquidated., and someone had to go home to take care of the children., because schools and kindergartens were closed.
All in all, heads of delivery and driving services are now forced to "cross the bottom", hiring those, who for some reason could not get a job during the recovery in the labor market. Extremely characteristic, that the greatest growth is happening in the field of food delivery, — and this is not the main income for taxi aggregators, who receive the main revenue from passenger trips.
Security. Lyft taxi aggregator (NASDAQ: LYFT) released a report on safety among drivers. Latest data there for 2019, but in general the report is interesting, which tells us a very remarkable fact: in 2019, more than 1.8 thousand cases of sexual harassment were registered on the platform - a third more, than in 2018. In percentage terms, this is not much - 0,0002% from all trips to the USA - by the way, uber has the same proportions.
But even one case is too many – and when the count of such cases is already in the thousands., it could bury the company.
A comparative review of Uber and Lyft mentioned, that among drivers and the public, Lyft has a reputation for being a fairly humane company compared to Uber's ruthless sweatshop.. But, as seen, this does not contribute to the quality of service of the aggregator.
Think, that in conditions of extreme shortage with the search for drivers, which is superimposed on the low margin and unprofitability of the business model of taxi aggregators, and Lift, and Uber will lower the bar of requirements for new drivers, what will steadily affect such gloomy statistics. Over time, the number of passenger lawsuits against Lyft in this regard, which is already high, will reach a critical mass and may lead to large payments to passenger victims. And given the, that the company is unprofitable, money for these payments will have to be taken out of the magician's hat. To Uber it is, By the way, also applies.
The holiday comes to them.: what to expect for American retail chains this season
Predicting retail sales in the US during the November-December holiday season similar to Ryunosuke Akutagawa's story "In More Frequently": we will get the full picture, only by studying the point of view of different participants in the events.
We already know, what pricewaterhouseCoopers experts said on this topic. We also read the opinion of Deloitte. And now we can study the prospects of the retail chains themselves.: American National Retail Association (NRF) issued her forecast.
NRF expects, that sales this year will grow in the range of 8.5-10.5%, reaching a record high of $ 859 billion. It should be noted, that gas stations are excluded from the count, restaurants and car sales. The largest growth is expected in the online sales area - in the range of 11-15% compared to 2020. Overall it is, certainly, good news for retailers. But there are pitfalls..
NRF reports, that the retail sector will be looking for new employees for the season: about 500-665 thousand people are needed for temporary vacancies. In the conditions of a shortage of workers in the United States, this guarantees ruinous costs for retail chains for the labor of workers..
So I wouldn't be in a hurry to invest in retail chains with an eye to positive results in the next quarter.: the proceeds are there, probably, Grow, but the profit, probably, Fall.
Knight Ryder: mergers and acquisitions in the field of logistics
American logistics company Ryder System (NYSE: R) buys warehouse operator Midwest Warehouse & Distribution System. The purchase will add approximately $ 135 million to Ryder's revenue in 2022.
Structurally, Midwest will enter the Ryder segment "Solutions in the field of logistics" - the most marginal of the company's segments. In terms of product structure, Midwest specializes in the storage of packaged consumer goods, food and drinks.
The exact purchase price is unknown, but, according to Ryder management, the company can afford this purchase.
The deal is planned to close only next month, but I believe, that from the point of view of Ryder shareholders, it is quite justified, because it increases the potential of the most promising of the company's segments.
