Uber rival Bolt launches food delivery service in Europe

Trump says he’s considering payroll tax cut day after White House…Trump said he has “been thinking about payroll taxes for a long time” — and he cautioned that “whether or not we do something now, it’s not being done because of recession.” Politicsread more


Trump says he’s considering payroll tax cut day after White House…Trump said he has “been thinking about payroll taxes for a long time” — and he cautioned that “whether or not we do something now, it’s not being done because of recession.” Politicsread more
Uber rival Bolt launches food delivery service in Europe Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: elizabeth schulze
Keywords: news, cnbc, companies, delivery, taxes, food, uber, white, thinking, housetrump, recessionpoliticsread, rival, payroll, tax, trump, bolt, long, hes, europe, launches, service


Uber rival Bolt launches food delivery service in Europe

Trump says he’s considering payroll tax cut day after White House…

Trump said he has “been thinking about payroll taxes for a long time” — and he cautioned that “whether or not we do something now, it’s not being done because of recession.”

Politics

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Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: elizabeth schulze
Keywords: news, cnbc, companies, delivery, taxes, food, uber, white, thinking, housetrump, recessionpoliticsread, rival, payroll, tax, trump, bolt, long, hes, europe, launches, service


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Deliveroo to end operations in Germany, focus on other markets: Spokesman

A man riding a bicycle for food delivery service Deliveroo pauses at an intersection on March 9, 2018 in Berlin, Germany. British food delivery service Deliveroo will cease operations in Germany on Friday and turn its attention to other markets, a spokesman for the Amazon-backed company said on Monday. “We’ve decided to focus on other markets,” a Deliveroo spokesman said regarding Germany, adding that the company was not ruling out returning to Europe’s largest economy in the future. Deliveroo w


A man riding a bicycle for food delivery service Deliveroo pauses at an intersection on March 9, 2018 in Berlin, Germany. British food delivery service Deliveroo will cease operations in Germany on Friday and turn its attention to other markets, a spokesman for the Amazon-backed company said on Monday. “We’ve decided to focus on other markets,” a Deliveroo spokesman said regarding Germany, adding that the company was not ruling out returning to Europe’s largest economy in the future. Deliveroo w
Deliveroo to end operations in Germany, focus on other markets: Spokesman Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-12
Keywords: news, cnbc, companies, service, spokesman, company, operations, focus, markets, deliveroo, delivery, food, takeawaycom, end, germany, rival


Deliveroo to end operations in Germany, focus on other markets: Spokesman

A man riding a bicycle for food delivery service Deliveroo pauses at an intersection on March 9, 2018 in Berlin, Germany.

British food delivery service Deliveroo will cease operations in Germany on Friday and turn its attention to other markets, a spokesman for the Amazon-backed company said on Monday.

The withdrawal of Deliveroo — which says it has 1,100 riders in five cities and just under 100 employees in Germany — reduces competition for Dutch rival Takeaway.com, which last year agreed to buy larger competitor Delivery Hero’s business in the German food delivery market.

Deliveroo’s decision comes as Takeaway.com and British rival Just Eat have just finalized the terms of their deal to create a global food delivery company that will be a market leader in Britain, Germany, the Netherlands and Canada.

“We’ve decided to focus on other markets,” a Deliveroo spokesman said regarding Germany, adding that the company was not ruling out returning to Europe’s largest economy in the future.

Deliveroo will shift its resources and investment towards boosting growth and expanding in markets around Europe and the Asia-Pacific region, the spokesman said.

Deliveroo said “appropriate compensation and goodwill packages” would be available for riders, employees and restaurants.


Company: cnbc, Activity: cnbc, Date: 2019-08-12
Keywords: news, cnbc, companies, service, spokesman, company, operations, focus, markets, deliveroo, delivery, food, takeawaycom, end, germany, rival


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Uber CEO reveals it considered buying food delivery app Caviar before rival DoorDash did

Uber CEO Dara Khosrowshahi told CNBC on Friday that the ride-hailing, freight and delivery giant considered a deal with on-demand food delivery service Caviar but decided to pass. Khosrowshahi said Uber’s food delivery service, Uber Eats, will focus on organic growth rather than acquisitions. On Aug 1, Square announced an agreement to sell Caviar to Uber Eats’ formidable rival DoorDash for $410 million. While declining to comment further on Caviar, Khosrowshahi did say that he sees food delivery


Uber CEO Dara Khosrowshahi told CNBC on Friday that the ride-hailing, freight and delivery giant considered a deal with on-demand food delivery service Caviar but decided to pass. Khosrowshahi said Uber’s food delivery service, Uber Eats, will focus on organic growth rather than acquisitions. On Aug 1, Square announced an agreement to sell Caviar to Uber Eats’ formidable rival DoorDash for $410 million. While declining to comment further on Caviar, Khosrowshahi did say that he sees food delivery
Uber CEO reveals it considered buying food delivery app Caviar before rival DoorDash did Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-09  Authors: jessica bursztynsky, jesse pound
Keywords: news, cnbc, companies, food, street, khosrowshahi, considered, eats, ceo, buying, rival, service, uber, square, doordash, delivery, caviar, reveals, secondquarter


Uber CEO reveals it considered buying food delivery app Caviar before rival DoorDash did

Uber CEO Dara Khosrowshahi told CNBC on Friday that the ride-hailing, freight and delivery giant considered a deal with on-demand food delivery service Caviar but decided to pass.

“We took a look at Caviar. It’s a great brand,” Khosrowshahi said in a “Squawk on the Street ” interview, as Uber shares were sinking after disappointing second-quarter results. “It wasn’t the right deal for us.”

Khosrowshahi said Uber’s food delivery service, Uber Eats, will focus on organic growth rather than acquisitions.

On Aug 1, Square announced an agreement to sell Caviar to Uber Eats’ formidable rival DoorDash for $410 million. Square had bought Caviar for just over $44 million in 2014. The Caviar service specializes in premium restaurants.

While declining to comment further on Caviar, Khosrowshahi did say that he sees food delivery as a real battle this year and next. “The Eats market continues to be very competitive.”

Khosrowshahi said that if Uber were to seek any acquisitions, he’s not worried. “We’re Uber, everyone wants to talk to us.”

After the Wall Street close Thursday, Uber posted a much wider-than-expected second-quarter loss of $4.72 per share. Revenue of $3.17 billion was also missed analyst estimates.

Uber’s core ride-hailing business saw better-than-expected gross bookings for the quarter, while the newer Uber Eats unit’s gross bookings fell short of forecasts.

“So with rides, I say the competitive environment is stable and getting better,” Khosrowshahi said during Friday’s CNBC interview. “We see a lot of competition with Eats,” he reiterated.


Company: cnbc, Activity: cnbc, Date: 2019-08-09  Authors: jessica bursztynsky, jesse pound
Keywords: news, cnbc, companies, food, street, khosrowshahi, considered, eats, ceo, buying, rival, service, uber, square, doordash, delivery, caviar, reveals, secondquarter


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Britain’s two biggest broadcasters are teaming up on a Netflix rival

Soumya Sriraman, president of Britbox United States and Canada, speaks on stage at the 2019 Winter Television Critics Association Press Tour. Called BritBox, the planned streaming platform is a partnership between the U.K.’s two largest broadcasters, and will see them take on Netflix and its dominance in online entertainment. A subscription to BritBox will let people watch TV shows in high definition across multiple screens and devices, ITV said. Netflix’s basic plan in the U.K. also costs £5.99


Soumya Sriraman, president of Britbox United States and Canada, speaks on stage at the 2019 Winter Television Critics Association Press Tour. Called BritBox, the planned streaming platform is a partnership between the U.K.’s two largest broadcasters, and will see them take on Netflix and its dominance in online entertainment. A subscription to BritBox will let people watch TV shows in high definition across multiple screens and devices, ITV said. Netflix’s basic plan in the U.K. also costs £5.99
Britain’s two biggest broadcasters are teaming up on a Netflix rival Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: ryan browne
Keywords: news, cnbc, companies, watch, platform, britains, teaming, uk, shows, streaming, netflix, broadcasters, itv, britbox, rival, month, let, biggest


Britain's two biggest broadcasters are teaming up on a Netflix rival

Soumya Sriraman, president of Britbox United States and Canada, speaks on stage at the 2019 Winter Television Critics Association Press Tour.

British broadcaster ITV announced Friday that its upcoming streaming service with the BBC will launch at the end of the year and cost just £5.99 ($7.50) a month.

Called BritBox, the planned streaming platform is a partnership between the U.K.’s two largest broadcasters, and will see them take on Netflix and its dominance in online entertainment. ITV shares popped 2% on the news.

The platform will offer shows including ITV’s “Love Island” and “Cleaning Up” as well as old shows like the BBC’s “Gavin & Stacey” and “The Office.” It will also commission a range of original series exclusive to BritBox.

The venture will be 90%-owned by ITV, while the BBC will have the option to increase its holdings over time to 25%.

A subscription to BritBox will let people watch TV shows in high definition across multiple screens and devices, ITV said. Netflix’s basic plan in the U.K. also costs £5.99, but that doesn’t let users watch on more than one screen simultaneously.

That means it’s technically cheaper than Netflix, which sells its standard multi-screen offering in the U.K. for £8.99 per month. It also undercuts Amazon Prime, which currently costs £7.99 a month.


Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: ryan browne
Keywords: news, cnbc, companies, watch, platform, britains, teaming, uk, shows, streaming, netflix, broadcasters, itv, britbox, rival, month, let, biggest


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Trump hosts US airline executives — and their Qatari rival — amid tensions over Gulf state subsidies

U.S. airline executives left a meeting with President Donald Trump at the White House Thursday without securing a commitment to intervene in a long-running dispute over Middle Eastern air carriers, according to White House officials and people familiar with the meeting. The private session in the Oval Office with executives from United Airlines, American Airlines, among others, highlighted tensions between the U.S. air carriers and the White House over steps taken by a Qatari competitor. U.S. ca


U.S. airline executives left a meeting with President Donald Trump at the White House Thursday without securing a commitment to intervene in a long-running dispute over Middle Eastern air carriers, according to White House officials and people familiar with the meeting. The private session in the Oval Office with executives from United Airlines, American Airlines, among others, highlighted tensions between the U.S. air carriers and the White House over steps taken by a Qatari competitor. U.S. ca
Trump hosts US airline executives — and their Qatari rival — amid tensions over Gulf state subsidies Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: eamon javers phil lebeau, eamon javers, phil lebeau
Keywords: news, cnbc, companies, tensions, gulf, airline, qatari, rival, session, qatar, state, sought, trump, air, white, carriers, amid, hosts, executives, house, subsidies


Trump hosts US airline executives — and their Qatari rival — amid tensions over Gulf state subsidies

U.S. airline executives left a meeting with President Donald Trump at the White House Thursday without securing a commitment to intervene in a long-running dispute over Middle Eastern air carriers, according to White House officials and people familiar with the meeting.

The private session in the Oval Office with executives from United Airlines, American Airlines, among others, highlighted tensions between the U.S. air carriers and the White House over steps taken by a Qatari competitor. The Doha-based airline serves the U.S. from Qatar but also has a minority stake in Air Italy, which has in recent years added routes to the U.S. from Milan. U.S. carriers have sought to limit the expansion of carriers which they argue receive unfair government support. The meeting came amid bruised feelings both at the White House and in the industry — although all participants sought to put a good face on the session after the fact.

The episode revealed that there are limits to the president’s generally protectionist approach to benefiting U.S. companies at the expense of their foreign competitors. In this case, Trump didn’t take action to benefit the American carriers — an outcome that was beneficial to the Qatari airline. Qatar is also proving a tricky piece in the dispute since it is a big consumer of U.S. goods. Earlier this month, Trump touted Qatar Airways’ purchase of five freighters made by Boeing and its use of General Electric engines to power new planes.


Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: eamon javers phil lebeau, eamon javers, phil lebeau
Keywords: news, cnbc, companies, tensions, gulf, airline, qatari, rival, session, qatar, state, sought, trump, air, white, carriers, amid, hosts, executives, house, subsidies


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Ram pickups outsell rival Chevy Silverado for second straight quarter

Fiat Chrysler’s Ram pickup line blew past a longtime competitor and reshuffled the long-established rankings of America’s favorite pickup trucks. Between April and June, Ram easily outsold the Chevy Silverado, General Motor’s top-selling model, for a second straight quarter. The Silverado has long held second place behind Ford’s F-Series pickup trucks, with Ram often a distant third. But for the second quarter, Fiat Chrysler sold 170,454 Ram pickups compared with 141,436 Chevy Silverados. It’s t


Fiat Chrysler’s Ram pickup line blew past a longtime competitor and reshuffled the long-established rankings of America’s favorite pickup trucks. Between April and June, Ram easily outsold the Chevy Silverado, General Motor’s top-selling model, for a second straight quarter. The Silverado has long held second place behind Ford’s F-Series pickup trucks, with Ram often a distant third. But for the second quarter, Fiat Chrysler sold 170,454 Ram pickups compared with 141,436 Chevy Silverados. It’s t
Ram pickups outsell rival Chevy Silverado for second straight quarter Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-02  Authors: phil lebeau
Keywords: news, cnbc, companies, straight, rival, product, quarter, outsell, chevy, pickup, fiat, second, silverado, pickups, trucks, sales, ram


Ram pickups outsell rival Chevy Silverado for second straight quarter

Fiat Chrysler’s Ram pickup line blew past a longtime competitor and reshuffled the long-established rankings of America’s favorite pickup trucks.

Between April and June, Ram easily outsold the Chevy Silverado, General Motor’s top-selling model, for a second straight quarter. Ford sales data won’t be out until Wednesday.

The Silverado has long held second place behind Ford’s F-Series pickup trucks, with Ram often a distant third. But for the second quarter, Fiat Chrysler sold 170,454 Ram pickups compared with 141,436 Chevy Silverados.

“It’s all about the product and right now we have a great product,” Reid Bigland, CEO of Ram said in an interview. Bigland and executives at Fiat Chrysler are reveling in a huge June for Ram, with sales jumping 56%.

It’s the kind of sales pop that turns heads in the auto industry, especially since pickup trucks have some of the largest profit margins. In addition, pickup buyers are among the most brand-loyal customers in the auto industry, so if Ram can win over customers who previously drove a Ford or Chevy truck, the shift in sales is significant.


Company: cnbc, Activity: cnbc, Date: 2019-07-02  Authors: phil lebeau
Keywords: news, cnbc, companies, straight, rival, product, quarter, outsell, chevy, pickup, fiat, second, silverado, pickups, trucks, sales, ram


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Boeing inks deal to provide parts for rival Airbus planes

‘The rally could last a lot longer than most people expect,’ Jim…”They’re fun. They’re companies you know or can learn about,” he said, “and you can happily buy them into weakness if you’ve done the homework and you believe in their…Mad Money with Jim Cramerread more


‘The rally could last a lot longer than most people expect,’ Jim…”They’re fun. They’re companies you know or can learn about,” he said, “and you can happily buy them into weakness if you’ve done the homework and you believe in their…Mad Money with Jim Cramerread more
Boeing inks deal to provide parts for rival Airbus planes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-17  Authors: leslie josephs
Keywords: news, cnbc, companies, learn, theyre, know, longer, inks, airbus, lot, rally, planes, boeing, weakness, money, theirmad, rival, provide, youve, parts, deal


Boeing inks deal to provide parts for rival Airbus planes

‘The rally could last a lot longer than most people expect,’ Jim…

“They’re fun. They’re companies you know or can learn about,” he said, “and you can happily buy them into weakness if you’ve done the homework and you believe in their…

Mad Money with Jim Cramer

read more


Company: cnbc, Activity: cnbc, Date: 2019-06-17  Authors: leslie josephs
Keywords: news, cnbc, companies, learn, theyre, know, longer, inks, airbus, lot, rally, planes, boeing, weakness, money, theirmad, rival, provide, youve, parts, deal


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Trump: ‘I think I’d take’ damaging info on 2020 rival from foreign operatives

President Donald Trump told ABC’s George Stephanopoulos that he would accept information on his 2020 opponent if it was offered by foreign operatives. I think I’d take it. If I thought there was something wrong, I’d go maybe to the FBI,” Trump said. I think I’d take it. If I thought there was something wrong, I’d go maybe to the FBI, if I thought there was something wrong.


President Donald Trump told ABC’s George Stephanopoulos that he would accept information on his 2020 opponent if it was offered by foreign operatives. I think I’d take it. If I thought there was something wrong, I’d go maybe to the FBI,” Trump said. I think I’d take it. If I thought there was something wrong, I’d go maybe to the FBI, if I thought there was something wrong.
Trump: ‘I think I’d take’ damaging info on 2020 rival from foreign operatives Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: christine wang
Keywords: news, cnbc, companies, foreign, damaging, fbi, information, id, stephanopoulos, operatives, life, think, wrong, trump, info, 2020, somebody, rival, opponent


Trump: 'I think I'd take' damaging info on 2020 rival from foreign operatives

President Donald Trump told ABC’s George Stephanopoulos that he would accept information on his 2020 opponent if it was offered by foreign operatives.

In an interview aired Wednesday, Trump presented a hypothetical situation in which “somebody comes up and says, ‘Hey, I have information on your opponent.’ Do you call the FBI?” The president went on to say, “I don’t think in my whole life I’ve ever called the FBI” and, “Give me a break. Life doesn’t work that way.”

When Stephanopoulos challenged Trump, saying that the FBI director believes a person presented with potentially stolen information should call the agency, the president responded, “The FBI director is wrong.”

In a clip circulated on Twitter, Stephanopoulos pushed back on Trump’s insistence to take the information over calling federal authorities, but Trump held firm, saying a person could “do both.”

“There’s nothing wrong with listening,” Trump said in a video from inside the Oval Office.

When Stephanopoulos suggested a transaction of that kind could constitute election interference, the president disagreed.

“It’s not interference. They have information. I think I’d take it. If I thought there was something wrong, I’d go maybe to the FBI,” Trump said.

The taped comments come on the same day the president’s son, Donald Trump Jr., testified before the Senate Intelligence Committee in a closed door hearing. Members were expected to grill him on his meeting with a Russian lawyer linked to the Kremlin at Trump Tower in Manhattan on June 2016. That lawyer claimed to have damaging information about Hillary Clinton, the then-presumptive Democratic presidential nominee.

Watch the full ABC interview.

Below is the transcript of the clip:

Stephanopoulos: Your son, Don Jr., is up before the Senate Intelligence Committee today. And again, he was not charged with anything. In retrospect though- Trump: By the way, not only wasn’t he charged, if you read it, with all of the horrible fake news- I mean, I was reading that my son was going to go too jail — this is a good young man — that he was going to go to jail. And then the report comes out, and they didn’t even say, they hardly even talked about him. Stephanopoulos: Should he have gone to the FBI when he got that email? Trump: OK. Let’s put yourself in a position. You’re a congressman, somebody comes up and says, “Hey, I have information on your opponent. Do you call the FBI? I don’t think- Stephanopoulos: If it’s coming from Russia, you do. Trump: I’ll tell you what, I’ve seen a lot of things over my life. I don’t think in my whole life I’ve ever called the FBI. In my whole life. You don’t call the FBI. You throw somebody out of your office, you do whatever you do- Stephanopoulos: Al Gore got a stolen briefing book. He called the FBI. Trump: Well, that’s different, a stolen briefing book. This isn’t a stolen- This is somebody that said, “We have information on your opponent.” Oh, let me call the FBI. Give me a break. Life doesn’t work that way. Stephanopoulos: The FBI director says that’s what should happen. Trump: The FBI director is wrong. Stephanopoulos: Your campaign this time around, if foreigners, if Russia, if China, if someone else offers you information on opponents, should they accept it or should they call the FBI? Trump: I think maybe you do both. I think you might want to listen. I don’t- There’s nothing wrong with listening. If somebody called from a country — Norway — “We have information on your opponent.” Oh. I think I’d want to hear it. Stephanopoulos: You want that kind of interference in our elections? Trump: It’s not interference. They have information. I think I’d take it. If I thought there was something wrong, I’d go maybe to the FBI, if I thought there was something wrong. But when somebody comes up with oppo research, right, they come up with oppo research. “Oh, let’s call the FBI.” The FBI doesn’t have enough agents to take care of it. When you go and talk, honestly, to congressmen, they all do it. They always have, and that’s the way it is. It’s called oppo research.

— CNBC’s Dan Mangan contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: christine wang
Keywords: news, cnbc, companies, foreign, damaging, fbi, information, id, stephanopoulos, operatives, life, think, wrong, trump, info, 2020, somebody, rival, opponent


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Uber’s European rival Bolt launches in London

Uber’s European rival Bolt is now taking it on in the streets of London. The Estonian ride-hailing company formerly known as Taxify announced its launch in the U.K.’s capital city Tuesday. It joins a growing list of start-ups trying to take market share from Uber in the London metropolitan area. Villig, who founded the company in 2013, said more than 20,000 drivers have already signed up with Bolt ahead of Tuesday’s launch. There were an estimated 87,900 private hire vehicles licensed in London


Uber’s European rival Bolt is now taking it on in the streets of London. The Estonian ride-hailing company formerly known as Taxify announced its launch in the U.K.’s capital city Tuesday. It joins a growing list of start-ups trying to take market share from Uber in the London metropolitan area. Villig, who founded the company in 2013, said more than 20,000 drivers have already signed up with Bolt ahead of Tuesday’s launch. There were an estimated 87,900 private hire vehicles licensed in London
Uber’s European rival Bolt launches in London Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-11  Authors: elizabeth schulze
Keywords: news, cnbc, companies, launch, european, bolt, villig, ridehailing, uber, vehicles, company, london, ubers, uks, rival, launches


Uber's European rival Bolt launches in London

Uber’s European rival Bolt is now taking it on in the streets of London.

The Estonian ride-hailing company formerly known as Taxify announced its launch in the U.K.’s capital city Tuesday. It joins a growing list of start-ups trying to take market share from Uber in the London metropolitan area.

“We see this as quite a monumental thing for both the company and the ride-hailing industry as a whole,” Bolt CEO Markus Villig told CNBC in an interview. “London is one of the biggest, most profitable markets for Uber globally and one where it didn’t have a serious competitor.”

Villig, who founded the company in 2013, said more than 20,000 drivers have already signed up with Bolt ahead of Tuesday’s launch. There were an estimated 87,900 private hire vehicles licensed in London as of March 2018, according to the Department for Transport.


Company: cnbc, Activity: cnbc, Date: 2019-06-11  Authors: elizabeth schulze
Keywords: news, cnbc, companies, launch, european, bolt, villig, ridehailing, uber, vehicles, company, london, ubers, uks, rival, launches


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A Goldman Sachs rival pulled out of the Apple Card deal on fears it will be a money loser

Apple CEO Tim Cook introduces Apple Card during a launch event at Apple headquarters on March 25, 2019, in Cupertino, California. Noah Berger | AFP | Getty ImagesThe sniping began shortly after Apple unveiled its new credit card with Goldman Sachs. The Apple Card, available this summer, highlights the risks as tech giants increasingly partner with banks to infiltrate financial services. Millennial borrowers, presumably a target for the Apple Card, are falling behind on credit card debt by the mo


Apple CEO Tim Cook introduces Apple Card during a launch event at Apple headquarters on March 25, 2019, in Cupertino, California. Noah Berger | AFP | Getty ImagesThe sniping began shortly after Apple unveiled its new credit card with Goldman Sachs. The Apple Card, available this summer, highlights the risks as tech giants increasingly partner with banks to infiltrate financial services. Millennial borrowers, presumably a target for the Apple Card, are falling behind on credit card debt by the mo
A Goldman Sachs rival pulled out of the Apple Card deal on fears it will be a money loser Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-28  Authors: hugh son
Keywords: news, cnbc, companies, sachs, money, rival, goldman, fears, bank, apple, profit, credit, deal, banks, loser, card, financial, customers, pulled


A Goldman Sachs rival pulled out of the Apple Card deal on fears it will be a money loser

Apple CEO Tim Cook introduces Apple Card during a launch event at Apple headquarters on March 25, 2019, in Cupertino, California. Noah Berger | AFP | Getty Images

The sniping began shortly after Apple unveiled its new credit card with Goldman Sachs. In an elaborate presentation in March, Apple CEO Tim Cook revealed the biggest yet mash-up between the worlds of big tech and big finance, a card that supposedly reimagines consumers’ relationship with plastic. Rivals of the investment bank wasted no time taking shots at the deal. “Dude, if that portfolio ever makes money, I’m buying you a beer,” an employee at the card department of a competitor texted a Goldman staffer. Within the industry, the deal is widely perceived as one that’s risky for a bank to take on. Citigroup was in advanced negotiations with Apple for the card but pulled out amid doubts that it could earn an acceptable profit on the partnership, according to people with knowledge of the talks. Other banks, including J.P. Morgan Chase, Barclays and Synchrony, also bid on the business. Apple and the banks declined to comment on this story. It turns out that the Apple Card’s consumer-friendly features — no fees of any kind, software that actively encourages users to avoid debt or pay it down quickly, and potentially lower interest rates — make it harder for banks to make money on the product. Even features like the card’s calendar-based billing can impact a lender’s cost of funding and servicing, since customers’ borrowing will be concentrated at month-end, rather than spread out over weeks. The Apple Card, available this summer, highlights the risks as tech giants increasingly partner with banks to infiltrate financial services. As the first credit card by Goldman Sachs, it will be a test of whether the bank can profitably scale up a consumer business in the late innings of the U.S. economic expansion. Millennial borrowers, presumably a target for the Apple Card, are falling behind on credit card debt by the most since 2011. “There’s a danger for any bank entering deals like this from a profitability standpoint,” said Forrester analyst Peter Wannemacher. “Increasingly, they’re wary of co-branding deals when it seems likely that the partner firm is the `cooler’ brand. They’ll consider making a deal with a company like Apple or Uber, but the danger is that the economic gains underwhelm.”

Sour grapes

The deal also shines a spotlight on an inherent tension within the trillion-dollar U.S. card industry: Big card issuers profit when customers fall into debt and stay there. Americans paid $113 billion in credit card interest to banks last year, nearly 50% more than five years ago. So adopting the new fintech ethos of zero fees and transparent pricing makes for thinner profit margins. Goldman is “thrilled” to be partnering with Apple, according to Andrew Williams, a spokesman for the New York-based bank. “Goldman Sachs seeks to disrupt consumer finance by putting the customer first,” Williams said in a statement. “We are excited for customers to use Apple Card, which is designed to help people take control of their financial lives.” To be sure, it’s common for banks that don’t win hypercompetitive contracts to immediately downplay the prospects for the winner. For instance, when American Express lost the Costco card to Citigroup in 2015, then-Amex CEO Ken Chenault told investors that “the numbers didn’t add up” and agreeing to Costco’s terms would have meant taking on an unacceptable amount of financial risk. But Chenault’s bitter reaction at the end of a 16-year partnership exposes a reality of these types of deals: Big brands with millions of loyal customers are in the drivers’ seat and command terms that benefit them, not the financial firms making those products possible. The Apple partnership makes more sense for Goldman than Citigroup or J.P. Morgan for several reasons. Under CEO David Solomon, the 150-year-old investment bank is pushing aggressively into consumer finance to help offset a decade-long decline in trading revenues. The Apple deal is likely just the first in a series of partnerships, and starting off with a high-profile partner will help Goldman in future negotiations. Since Goldman has no old technology systems to overhaul or existing card business to defend, it’s not risking a current money maker on a product with razor-thin profit margins. The deal allows Goldman to add millions of customers to its consumer banking platform, which is mostly known by its Marcus brand. But Goldman does have a few hurdles, according to industry insiders. With any card, the goal is to be the first choice in a user’s wallet, but popular products like J.P. Morgan’s Sapphire Reserve have richer rewards. Many of the heaviest card users game the programs by using different cards for various categories of spending, and it’s unlikely they’ll be persuaded to use the Apple Card unless the rewards are improved.

Stiff competition


Company: cnbc, Activity: cnbc, Date: 2019-05-28  Authors: hugh son
Keywords: news, cnbc, companies, sachs, money, rival, goldman, fears, bank, apple, profit, credit, deal, banks, loser, card, financial, customers, pulled


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