Latest / What the Flux / Qantas' $105 million class action | McDonald's viral burger boost | Bumble pops despite falling user numbers

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Qantas' $105 million class action | McDonald's viral burger boost | Bumble pops despite falling user numbers · What the Flux

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  Speaker 1: This is what the flucks time and I'm justin and
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  Speaker 1: it's Monday, the sixteenth of March.
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  Speaker 2: Does it's a new week, which is good for the ASSEX.
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  Speaker 2: Last week the AX fel two point six percent, and
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  Speaker 2: since the conflict in the Middle East started on fare
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  Speaker 2: but twenty eight, the ASX benchmark has fallen six point
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  Speaker 2: three percent, or about one hundred ninety billion dollars. A
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  Speaker 2: new week means potentially fresh start, positive thinking, positive thinking.
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  Speaker 1: The positive, the old things. Every single month, money comes
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  Speaker 1: into your account, money goes out of your account, and
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  Speaker 1: for sixty six percent of Australians they don't even know
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  Speaker 1: where their money is going. That's why we created the
• 0:38
  Speaker 1: Flux Budgeting Call, which helps you track all of your
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  Speaker 1: expenses and your income in the one place you can
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  Speaker 1: stay on top of your money and make great financial decisions.
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  Speaker 1: So if you want to learn more about where your
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  Speaker 1: money's going, make sure its download the Flux app and
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  Speaker 1: check it out.
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  Speaker 2: Three sensational stories today Juzzy Boy, let's do it for
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  Speaker 2: our first. Quantus will pay one hundred and five million
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  Speaker 2: bucks to settle a class action over delayed COVID flight
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  Speaker 2: red Fund as it tries to move on from the
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  Speaker 2: major reputational hit man.
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  Speaker 1: The Big Q still hasn't overcome those twenty twenty miss apps,
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  Speaker 1: So tell.
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  Speaker 2: Me a little bit more, all right. So Quantus is
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  Speaker 2: obviously Australia's national airline and flies more than fifty million
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  Speaker 2: passengers each year.
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  Speaker 1: And we're going to take me back to twenty twenty
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  Speaker 1: when COVID.
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  Speaker 2: Struck radio well I recall people were fighting over toilet
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  Speaker 2: paper roles in the supermarket and.
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  Speaker 1: Long life milk became one of the hottest commodities in
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  Speaker 1: the whole wide world. And at the same time, countries
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  Speaker 1: shut their borders, so most international travel was canceled.
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  Speaker 2: And so Quantus canceled roughly two billion dollars worth of flights.
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  Speaker 1: But instead of refunding customers, Quantus issued flight credits instead,
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  Speaker 1: which often didn't cover the cost of rebooking.
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  Speaker 2: The backlash was so bad that quantuss then CEO stepped
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  Speaker 2: down earlier than planned, as well as Quantus's chair and
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  Speaker 2: they man.
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  Speaker 1: A class action lawsuit was run against Quantus to compensate
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  Speaker 1: thousands of customers who had to wait up to three
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  Speaker 1: years for a refund, and now.
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  Speaker 2: As part of this class action, Quantus has agreed to
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  Speaker 2: pay one hundred and five million bucks in compensation to
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  Speaker 2: those customers.
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  Speaker 1: That is right, hundreds of thousands of Quantus passengers are
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  Speaker 1: expected to rec payouts.
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  Speaker 2: All right, how much are we talking?
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  Speaker 1: Some will receive hundreds of dollars while others will get
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  Speaker 1: some more depending on how long they had to wait
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  Speaker 1: for their refunds.
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  Speaker 2: Crazy, So what's the key learning here?
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  Speaker 1: A class action is a legal case where a large
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  Speaker 1: group of people who have suffered similar harm joined together
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  Speaker 1: to see a company together.
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  Speaker 2: Instead of thousands of individuals launching separate lawsuits, the group
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  Speaker 2: is represented in one combined case and jozeboait for companies.
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  Speaker 2: Class actions can be extremely expensive.
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  Speaker 1: Yeah, not just because of the potential compensation payouts, but
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  Speaker 1: also the legal fees, the reputational damage, and don't forget
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  Speaker 1: the management time spent dealing with litigation. That's why many
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  Speaker 1: businesses choose to settle class actions without admitting liability, like
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  Speaker 1: Quantus is done here.
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  Speaker 2: And joseboit Qantas is not the first Australian company to
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  Speaker 2: settle a class action without admitting liability. No no, no,
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  Speaker 2: remember amp after the Royal Commission into Banking in twenty eighteen, yep,
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  Speaker 2: they settled a shareholder class action for one hundred and
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  Speaker 2: twenty million bucks to be man for Quantas.
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  Speaker 1: This settlement helps them avoid years of court battles. They
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  Speaker 1: can move on and focus on what they do best.
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  Speaker 1: For our second story, McDonald's CEO went viral for awkwardly
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  Speaker 1: eating a burger, and somehow it boosted sales of the
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  Speaker 1: burger he was eating. Just give me the burger. I
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  Speaker 1: will eat it properly for you, I promise. So tell
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  Speaker 1: me what's going on here.
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  Speaker 2: So McDonald's aka macki d aka Macs is the world's
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  Speaker 2: largest fast food chain. In fact, McDonald serves around sixty
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  Speaker 2: nine million customers a day across more than one hundred countries.
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  Speaker 2: Sixty nine million customers eating fries and nuggies, Big Macs
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  Speaker 2: and those weird apple pie things that juzzy boy just
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  Speaker 2: absolutely loves.
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  Speaker 1: Man for some context for you, the Maca CEO, Chris kemcinski,
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  Speaker 1: has been building a social media presence for years to
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  Speaker 1: promote new products and make Big Maca's announcements.
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  Speaker 2: And in early February, the Macaco posted on LinkedIn a
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  Speaker 2: video of himself taste testing a new menu item called
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  Speaker 2: the Big Arch Burger and.
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  Speaker 1: After announcing the burger, he took a small bite, like
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  Speaker 1: a tiny bite of the burger, and he described the
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  Speaker 1: burger as a product in a very corporate tone.
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  Speaker 2: And you better believe the incident did not let him
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  Speaker 2: get away with this one.
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  Speaker 1: Nope, Users on all social media platforms started mocking his
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  Speaker 1: stiff presentation and turned it into a meme executives who
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  Speaker 1: look like they've never eaten their own products.
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  Speaker 2: Then Burger King and Wendy's piled in, posting their own
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  Speaker 2: parody videos of CEOs eating burgers and really embracing that joke.
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  Speaker 2: Next minute, the campaign generated almost six billion impressions in
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  Speaker 2: a single day.
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  Speaker 1: And early sales of the burger are reportedly beating expectations.
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  Speaker 2: So macers ended up newsjacking its own story.
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  Speaker 1: Interesting, So what is the key learning here?
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  Speaker 2: News Jacking is when a company jumps into a trending
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  Speaker 2: news story or a viral moment and inserts its own
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  Speaker 2: brand into the conversation. Instead of spending millions creating attention,
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  Speaker 2: you ride the wave of attention that already exists. In
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  Speaker 2: this case, Once the McDonald's burger video started circulating online,
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  Speaker 2: Burger King and Wendy's quickly posted parody videos.
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  Speaker 1: And it worked. Burger King appeared in sixty eight percent
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  Speaker 1: of the online discussion about the video. But rather than
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  Speaker 1: trying to shut down the jokes or distance itself from
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  Speaker 1: the awkward video, makers really leaned in and it turned
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  Speaker 1: a train wreck of a video into something pretty valuable
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  Speaker 1: for themselves.
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  Speaker 2: So McDonald's news jacked its own news story and.
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  Speaker 1: It turned into billions of impressions and a spiky product
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  Speaker 1: awareness too.
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  Speaker 2: So Josey Way, sometimes the Internet laughs at you, and
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  Speaker 2: that can still be a very good thing for business.
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  Speaker 1: For our third and final story, bumble share price has
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  Speaker 1: jumped more than thirty percent after its latest results beat expectations,
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  Speaker 1: even though it's revenue numbers and users are still sliding investors.
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  Speaker 2: Are they finally swiping right again? Tell me more? Juzzy boy? Okay?
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  Speaker 1: So, Bumble's the online dating app that launched back in
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  Speaker 1: twenty fourteen.
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  Speaker 2: It was launched by one of the former co founders
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  Speaker 2: of Tinder as a new competitor where women make the
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  Speaker 2: first move.
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  Speaker 1: And when Bubble listed on the Nazdak in twenty twenty one,
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  Speaker 1: the founder became the youngest self made female billionaire at
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  Speaker 1: the time. The joyboy As gen z and millennials get
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  Speaker 1: online dating fatigue, Bumble has seen its share price fall
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  Speaker 1: more than ninety percent. Wow, but last week bumble share
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  Speaker 1: price actually jumped more than thirty percent after its latest results.
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  Speaker 2: Well, okay, was its revenue up Nope?
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  Speaker 1: Down five percent?
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  Speaker 2: All right, we're paying users up?
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  Speaker 1: Nope, down nearly ten percent.
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  Speaker 2: Okay, what is good here then? Jusy boy?
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  Speaker 1: Well it's adjusted Iberdar hit nearly ninety five million dollars
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  Speaker 1: for the quart art, which smashed investor expectations. So what
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  Speaker 1: is the key learning here?
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  Speaker 2: Somebody doesn't need more customers to make more money. Sometimes
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  Speaker 2: it just needs fewer costs.
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  Speaker 1: A first glance man, Bumble's results look pretty concerning, But.
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  Speaker 2: We know that profitability isn't just about how much money
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  Speaker 2: comes in. It's also very much about how much money
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  Speaker 2: goes out. Yeah.
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  Speaker 1: In Bubble's case, they've been cutting down heavily on marketing
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  Speaker 1: and other operating costs while focusing on generating more revenue
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  Speaker 1: from the users it still has. For example, it's average
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  Speaker 1: revenue per paying user increased by about seven point nine
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  Speaker 1: percent in the last quarter. On top of this, Bumble
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  Speaker 1: significantly reduced performance marketing spending yeah, some say their performance
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  Speaker 1: marketing costs drop more than eighty percent year.
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  Speaker 2: Own year, So even though the overall user base shrank,
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  Speaker 2: it managed to become more efficient as a business.
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  Speaker 1: Flock dam. If you want to know if you're spending
• 6:38
  Speaker 1: a lot of money on clothing, on food, on petrol,
• 6:41
  Speaker 1: we inhabit all covered in the Flux budgeting tool, where
• 6:43
  Speaker 1: all your expenses get categorized into the different areas of
• 6:46
  Speaker 1: where you're spending, so that if you want to understand
• 6:47
  Speaker 1: a little bit more about your spending, make sure to
• 6:49
  Speaker 1: download the Flux app and check out our budgeting tool.
• 6:51
  Speaker 2: Thanks for listening and we'll see you on Wednesday.