10 things in tech you need to know today
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- This is the tech news you need to know this Thursday.
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How the rise in e-commerce is presenting opportunities for new entrants to challenge UPS and FedEx in last-mile deliveries
- Outside of the US Postal Service (USPS), FedEx and UPS have dominated the domestic logistics industry — and in particular, the last mile of delivery — for decades.
- Amazon presents the biggest near-term threat to UPS and FedEx's duopoly due to its size, strategic position in the e-commerce market, and wealth of logistics infrastructure.
- In The Delivery Challenger Report, Business Insider Intelligence identifies the four companies that pose the largest threats to UPS and FedEx's duopoly in the US last-mile delivery market.
- Lastly, we outline concrete steps each of them must take if they hope to maximize their footprint in the market and peel away business from UPS and FedEx. The companies mentioned in this report include: Alibaba, Amazon, Deliv, DHL, FedEx, Postmates, Uber, UPS, USPS, and Postmates.
Bernie Sanders Wants Companies to Give Employees Ownership—a Trend That's Already Growing in the U.K.
- Seeking to expand the diversity of business models in the British economy, it decided five years ago that a worker can get up to £3,600 ($4,600) in shares from the scheme each year without having to pay income tax on it, and owners who sell a controlling interest in their business to an employee ownership fund don’t have to pay capital gains tax on the sale.
- Fans of the model point out that employee ownership is a great way to ensure workers are fully behind the company, and making the firm a desirable place to work.
- According to Tamsin Nicholds, a senior associate at law firm FieldFisher in London, the British model of employee ownership has an edge over the American ESOP approach because of the way it incentivizes workers.
Startups Born of Flint’s Water Crisis
- Rossmaessler points to local resources like the 100K Ideas program, the Factory Two makerspace, and the Ferris Wheel, a co-working space that opened in 2017 in a long-vacant downtown building.
- According to data from Square, the payment processing company whose services are popular with small businesses and startup retailers, there’s been a 40 percent net increase in Flint businesses that use the company’s service in the five years since the water switch.
- Lev Hunter, the 34-year-old founder of the Flint coffee and tea business The Daily Brew, is another homegrown entrepreneur with a community mission.
- Nowadays, she parlays years of experience in retail management into I’m Building Something, a consulting business serving Flint-area entrepreneurs.
- Community organizers and advocates held a day of events at the water treatment plant and the state capitol in Lansing to highlight the unfinished business of the recovery effort.
THE DATA BREACHES REPORT: The strategies companies are using to protect their customers, and themselves, in the age of massive breaches
- Over the past five years, the world has seen a seemingly unending series of high-profile data breaches, defined as incidents in which unauthorized parties access and retrieve sensitive, secure, or private data.
- Major incidents, like the 2013 Yahoo breach, which impacted all 3 million of the tech giant's customers, and the more recent Equifax breach, which exposed the information of at least 143 million US adults, has kept this risk, and these threats, at the forefront for both businesses and consumers.
- Business Insider Intelligence, Business Insider's premium research service, has put together a detailed report on the data breach threat, who and what companies need to protect themselves from, and how they can most effectively do so from a technological and organizational perspective.
Rewards-related offerings are the leading driver of consumers' credit card choices — but they can be pricey for issuers
- To make credit cards as valuable as they could be, and to bring returns back up, issuers need to direct their efforts not just toward becoming one of consumers' three cards, but also toward becoming their favorite card.
- Rewards are more important than ever — three of the top four primary card determinants cited by respondents to a Business Insider Intelligence survey were rewards-related — so abandoning them isn't effective.
- In The Consumer Cards Report, Business Insider Intelligence sizes the US consumer credit card market, explains why return on assets (ROA) is on the decline, highlights the importance of rewards in attracting customers, and lays out three next-generation rewards strategies that are popular among certain demographics, which issuers can implement to return their card business to profitability.
Western Union and Zelle Executives Dish on Competition and the Future of Mobile Payments
- Providing the answers were Hikmet Ersek, president and CEO of The Western Union Company, and Lou Anne Alexander, group president of payment solutions at Early Warning Services, a firm co-owned by several big banks including Bank of America, JPMorgan Chase[/f500link], and Wells Fargo that operates the two-year old Zelle payment app.
- Hackett also asked Alexander about competition, given that Zelle is young and competes against better-established rivals like PayPal’s Venmo, Apple Pay, and Square Cash.
- Zelle currently is marketing to Gen Xers and Baby Boomers who make up half of their new customers.
- That includes helping insurance companies pay out home and car damage claims to customers.
- Hammering home the idea that Western Union is nimble, Ersek said that the company is willing to cannibalize its own business by introducing new products.
Here's What to Expect When Slack Shares Start Trading Thursday
- It may be psychologically pleasing to see shares of a company rise during its first day of trading following an initial public offering.
- But in the case of a direct listing, investors might see the stock hit its high at the start of the day before sliding back down, said Joe Mecane, head of execution services at Citadel Securities during Fortune’s Brainstorm Finance conference in Montauk, N.Y. That’s exactly what may happen with workplace messaging application Slack, which is set to start trading as a direct listing on the New York Stock Exchange as “WORK” Thursday, with a price of around $26 a share.
- Slack’s listing comes at a time when investors are wary of the ongoing China-U.S. trade war, a backdrop that certainly didn’t help Uber on its dismal first day on the market.
Netflix's 'Murder Mystery' Would've Killed With a $120 Million Opening Weekend—If the Adam Sandler Comedy Ran in Theaters
- If Adam Sandler’s new Netflix movie Murder Mystery drew the same U.S. box office numbers as it did via streaming, it would have made $120.5 million domestically in its opening weekend.
- Adding in its global audience, Murder Mystery scored a record-breaking 30.8 million viewers—the highest weekend ever for a Netflix debut—which would put its theoretical global haul $278.1 million—great results for Netflix and Sandler, who signed a four-movie deal with the streaming service in 2017.
- After the Oscar success of Roma (in spite of Steven Spielberg’s griping that it shouldn’t have been eligible because it wasn’t a traditional release) and upcoming films like Martin Scorsese’s The Irishman with Robert DeNiro and Al Pacino, Netflix is showing that it’s a destination for prestige movies, to accomony its cricitally acclaimed original series like Stranger Things, Orange Is the New Black, and so many others.
The CEO of NPM, a startup that provides a crucial service for 11 million developers, told employees that it’s secured a deal that removes ‘the threat of running out of money’ until early 2020
- NPM's board of directors includes investors in the company like Ethan Kurzweil of Bessemer Venture Partners, Puneet Agarwal of True Ventures, and Jevon MacDonald of Manifold.co, according to Pitchbook and LinkedIn. All told, NPM has raised $18.93 million in venture capital funding to date.
- In the wake of the controversy around those layoffs, NPM published an apology— signed by Bogensberger, as well as NPM co-founders Isaac Schlueter and Laurie Voss — saying that the company was undergoing growing pains as it worked on transitioning away from its reliance on venture capital and towards a more sustainable business model.