Hey Snackers,
Who's DJ'ing the Sports Illustrated Super Bowl party alongside the Black Eyed Peas and Marshmello? Goldman Sachs CEO David Solomon (aka DJ D-Sol). A banker who drops bangers. Never limit yourself.
The World Economic Forum kicked off yesterday in Davos, Switzerland, and global markets dipped on reports a deadly virus outbreak in China entered the US.
Amazon wants to turn your palm into a wallet — the next frontier of frictionless payments
Hands-on is the new hands-off... Amazon is creating check-out terminals that put your payments (literally) at the palm of your hand, according to WSJ sources. Gives "palm reading" a whole new meaning. Here's how Amazon's handy payments go down:
- Palm: Amazon patented a "non-contact biometric identification system" that scans your hand.
- The idea: Link your credit card to your hand print so your hangry self can breeze past the Sunday morning bagel line.
- The real customer: Amazon's pitching these terminals to physical fast food spots and coffee shops that you visit repeatedly.
- Credit Collab: Amazon's already working with Visa (and is in talks with Mastercard). It's also in discussions with card issuers like JPMorgan Chase, who's wondering whether to collab with a potential competitor, or risk being cut out.
It's getting out of hand... How far is too far when it comes to convenience? This hand-scanning thing would just shave down the time it takes you to pull out your phone or plastic (honestly, cool if you're shopping while on a jog). Your palm-info would still have to be transmitted and processed. Is saving a few seconds worth giving up more personal info to Big Tech?
If money talks, spending screams... More info on your shopping habits could mean better targeted ads — and tech can charge advertisers more $$$ for that. It also means actionable info on what you actually splurge on, which Amazon could use to stock its ecommerce site. That's why Big Tech is pushing deeper into customers' wallets:
- Amazon: Launched Amazon Pay and checkout-less Amazon Go stores
- Apple: Shipped Apple Pay for mobile and its own Apple titanium credit card
- Google: Has Google Pay and will begin offering checking accounts this year
Uber is letting some drivers set their own fares (to avoid paying them as employees)
I'm an app, duh... Uber, to the California government. Uber is now letting some CA drivers set their own fares as part of a test in response to CA's new gig-economy law (aka, AB5). The law forces companies like Uber, Lyft, or Postmates to treat workers as employees (give them sick days, benefits, etc). But Uber wants to prove its drivers are independent contractors. So it's made these changes:
- Last month, Uber let CA drivers see where riders are going before deciding whether to accept or reject a ride (wasn't a thing before).
- This month, Uber put a 25% cap on commissions drivers pay to Uber.
- Now, Uber is letting drivers who pick-up/drop-off from airports in Santa Barbara, Palm Springs, and Sacramento price their rides up to 5X basic Uber fares (or charge as little as 1/10th).
It's a tech company, I swear... Uber's trying to prove it's just an app with independent drivers (nothing to see here), in an effort to dodge the 20%-30% cost increase that would come with turning their contractors into employees. The gig-law could also make rides pricier for riders, which could reduce demand for rides overall.
Uber's current pricing method is all about efficiency... 11PM Saturday rides are pricier than 10AM Sunday rides because surge pricing factors in demand. This new bidding-style pricing might mean higher fares for drivers, but could also mean lower fares if drivers compete for the cheapest price. This auction-like system is less efficient, but Uber is hoping it'll help prove that drivers have autonomy, and should therefore be treated not like employees.
What else we’re Snackin’
- Unwined: President Trump reaches a truce with France (for now) - he won't tariff French wine/cheese if France doesn't tax US tech companies
- Subscript-ify: Mercedes-Benz launches a car-subscription pilot in Nashville and Philly starting at $1,095 a month (swap whenever you get bored)
- Un-Eazey: Weed delivery leader Eaze (aka, "the Uber of pot") is almost out of cash and struggling to pay the bills — it may start selling directly through its own depots
- Take Out: Uber sells its Uber Eats India biz to Indian food delivery rival Zomato for $350M
- GIF-y: Venmo will roll out animated GIFs for your transaction notes (add that dancing pizza when you pay back your half of the pie)
Wednesday
- Earnings from Johnson & Johnson, Alaska Air, Texas Instruments, and Ally Financial
Disclosure: Authors of this Snacks own shares of Uber and Amazon
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