Latest / What the Flux / Menulog shuts down | DroneShield selloff spooks investors | Kim K's Skim's strikes gold

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Menulog shuts down | DroneShield selloff spooks investors | Kim K's Skim's strikes gold · What the Flux

• 0:05
  Speaker 1: This is what the Flux.
• 0:06
  Speaker 2: I'm Bratt and I'm justin and it's Friday, the fourteenth
• 0:09
  Speaker 2: of November.
• 0:10
  Speaker 1: Well, well, well it is good to be back. Juzzy
• 0:12
  Speaker 1: Boy and Flux family. We hope you enjoyed our in
• 0:15
  Speaker 1: conversation series as much as we did, but now good
• 0:17
  Speaker 1: to be back. Get this one. The unemployment rate has
• 0:20
  Speaker 1: declined to four point three percent in October, down from
• 0:22
  Speaker 1: four and a half percent in September, and Juzzy Boy
• 0:25
  Speaker 1: economist reckons this means there won't be another interest rate
• 0:28
  Speaker 1: cut this year.
• 0:29
  Speaker 2: Not what mortgage holders wanted to hear. The man No Fox, Adam.
• 0:32
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  Speaker 2: now is absolutely the time. Each month your credit score changes.
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• 0:46
  Speaker 1: Checkup three marvelous stories today Juzzy Boy, let's do it
• 0:49
  Speaker 1: for our first menu. Log has announced it will close
• 0:52
  Speaker 1: its Australian operations after tough competition from global giants has
• 0:56
  Speaker 1: crushed its local market share.
• 0:57
  Speaker 2: Did somebody say, men, you close, we all be men? So?
• 1:01
  Speaker 1: Menulogue was founded in Australia in two thousand and six
• 1:04
  Speaker 1: as a digital marketplace that connected customers with local restaurants
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  Speaker 1: and delivery drivers.
• 1:09
  Speaker 2: And how iconic with the Menulogue adds with snoop Der,
• 1:11
  Speaker 2: doubleg and Katie Perry as well genuinely exceptional Juzzy Boy,
• 1:15
  Speaker 2: and at its peak in twenty fourteen, Menulog was the
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  Speaker 2: big dog of Australia's online food ordering marketplace. Yeah, back
• 1:22
  Speaker 2: then it had around eighty percent of local market share,
• 1:24
  Speaker 2: but this all started to shift when US giants like
• 1:26
  Speaker 2: Uber Eats and door Dash arrived on Ozzie Shaw's yeap.
• 1:29
  Speaker 1: In twenty twenty two, Menulog's market share dropped to just
• 1:32
  Speaker 1: twenty four percent and they reported an annual loss of two
• 1:35
  Speaker 1: hundred and seventy five million dollars.
• 1:36
  Speaker 2: And by this year, Menulog's market share dropped even further
• 1:39
  Speaker 2: to below ten percent.
• 1:41
  Speaker 1: Despite Ozzie spending more on food delivery services. It seems
• 1:44
  Speaker 1: Menulogue could not keep up with bigger players from overseas.
• 1:47
  Speaker 2: So true, so what is the key learning here?
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  Speaker 1: Market share is the percentage of total sales that a
• 1:52
  Speaker 1: company earns compared to all of its competitors in that
• 1:55
  Speaker 1: same industry.
• 1:56
  Speaker 2: Brands with larger market share are often more visible and
• 1:58
  Speaker 2: trusted by customers.
• 2:00
  Speaker 1: Which makes it easier to attract new customers and keep
• 2:02
  Speaker 1: your existing ones, and vice versa. In competitive industries, market
• 2:06
  Speaker 1: share can be the thing that makes or breaks a company.
• 2:08
  Speaker 2: And they man, it's especially tough here in Australia because
• 2:11
  Speaker 2: we've got a relatively small market.
• 2:13
  Speaker 1: Yep. If there are already two dominant companies, the smaller
• 2:16
  Speaker 1: players often get pushed out of the market altogether.
• 2:19
  Speaker 2: Hello Uber Eats, Hello door Dash.
• 2:21
  Speaker 1: That's right, Menulog isn't the first food casualty in the
• 2:24
  Speaker 1: food delivery game.
• 2:25
  Speaker 2: Nope. Foodora left Australia in twenty eighteen, and Delivery stopped
• 2:28
  Speaker 2: uprating in twenty twenty two as well.
• 2:30
  Speaker 1: And Jasie White. With Menulog shutting down, there's even less
• 2:32
  Speaker 1: competition in the Aussie food delivery scene.
• 2:35
  Speaker 2: Which could mean higher prices for all and fewer cheeky
• 2:38
  Speaker 2: discount codes for our second story.
• 2:41
  Speaker 1: Asx listed, drone Shield has seen it shares plummet by
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  Speaker 1: about thirty percent after a major sell down from its leadership,
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  Speaker 1: team leadership.
• 2:48
  Speaker 2: Cashing out altogether is not a good look. So tell
• 2:51
  Speaker 2: me what. So.
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  Speaker 1: Drone Shield is ASX listed and it's an Australian defense
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  Speaker 1: technology company that builds systems to detect and neutralize drones
• 3:00
  Speaker 1: and this.
• 3:00
  Speaker 2: Has become a bigger business around the world with defense
• 3:03
  Speaker 2: spending going up across many many governments.
• 3:05
  Speaker 1: The company was founded in twenty fourteen in the US
• 3:07
  Speaker 1: and listed on the ASX in twenty sixteen.
• 3:09
  Speaker 2: And since then its share price has gone pretty gangbusters.
• 3:12
  Speaker 2: In fact, it's up more than six hundred percent since
• 3:15
  Speaker 2: January twenty twenty four.
• 3:16
  Speaker 1: But the last couple of days have been a bit
• 3:18
  Speaker 1: of a crash landing for the Drone Shield crew.
• 3:21
  Speaker 2: Earlier this week, drone Shield had quite an embarrassing moment
• 3:23
  Speaker 2: where it had to withdraw its ASX announcement.
• 3:26
  Speaker 1: What happened there, j doesy boy?
• 3:27
  Speaker 2: Well, they excitedly announced a seven point six million dollar
• 3:30
  Speaker 2: US government contract and.
• 3:32
  Speaker 1: I believe it turned out to be an old order
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  Speaker 1: mislabeled as new.
• 3:35
  Speaker 2: Right after that, drone Shield CEO sold nearly fifteen million
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  Speaker 2: shares worth nearly fifty mil And he wasn't alone. Nope,
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  Speaker 2: the drone Shield chairman sold more than twelve million dollars
• 3:44
  Speaker 2: for shares. Another director offloaded nearly five million dollars of shares.
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  Speaker 1: Next minute, Drone Shield chairs dropped faster than a drone
• 3:51
  Speaker 1: losing signal. We're talking more than thirty percent.
• 3:53
  Speaker 2: Because investors started to under why Drone shield was talking
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  Speaker 2: up at sales pipeline and leadership was cashing out at
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  Speaker 2: the top.
• 4:00
  Speaker 1: Yeah, so what is the key learning here?
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  Speaker 2: When insiders selled big chunks of stock, investors pay attention,
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  Speaker 2: and not usually in a good way.
• 4:06
  Speaker 1: Does he boit director? Sales aren't automatically bad, but timing
• 4:10
  Speaker 1: and transparency really matters.
• 4:12
  Speaker 2: Yeah, that's because insiders usually have the best understanding of
• 4:15
  Speaker 2: the company's prospects, so a sudden or large sell off
• 4:18
  Speaker 2: can make investors wonder if management thinks the stock is
• 4:20
  Speaker 2: peaked or if future growth may be weaker than expected.
• 4:24
  Speaker 2: And we've seen this movie before, haven't we that we have?
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  Speaker 2: Remember when seti is founder sold off a massive chunk
• 4:29
  Speaker 2: of his shares in twenty twenty two.
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  Speaker 1: I do the stock plummeted about ten percent immediately because
• 4:33
  Speaker 1: investors lost confidence in the company's growth story.
• 4:36
  Speaker 2: So be man when leadership cashes out in big volumes.
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  Speaker 2: It can create a mismatch between what management says publicly
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  Speaker 2: or what their actions actually indicate.
• 4:44
  Speaker 1: And in markets, actions speak louder than ASX announcements.
• 4:48
  Speaker 2: For our third and final story, Kim Kardashian's shapewhere brand, Skims,
• 4:52
  Speaker 2: has just raised fresh capital at a five billion US
• 4:56
  Speaker 2: dollar evaluation.
• 4:56
  Speaker 1: Kimmy Kay has the midas touch does in Boy, What's
• 4:59
  Speaker 1: going on here?
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  Speaker 2: So Skim is the shapewaar and the power brand that
• 5:01
  Speaker 2: was co founded by Kim kardashi.
• 5:03
  Speaker 1: In If I'm not mistaken, We're talking bodysuits, midwaisted shorts,
• 5:07
  Speaker 1: a bit of shapeware.
• 5:08
  Speaker 2: Oh, very well done, be Man, and the brand has
• 5:10
  Speaker 2: grown rapidly. In fact, it's on track to record over
• 5:12
  Speaker 2: one billion US dollars in net sales in twenty twenty five.
• 5:15
  Speaker 1: It also announced a big partnership with Nike earlier this
• 5:17
  Speaker 1: year under its new brand Nike Skims.
• 5:20
  Speaker 2: Very rich of name. Help with that one.
• 5:22
  Speaker 1: Jokes aside, though, juzzy boy, Skims has just raised two
• 5:25
  Speaker 1: hundred and twenty five million US dollars in a new
• 5:27
  Speaker 1: round led by none other than Goldman Sachs Alternatives.
• 5:30
  Speaker 2: And this investment value skims at a wapin five billion
• 5:34
  Speaker 2: US dollars.
• 5:34
  Speaker 1: All right, what do they need the money for?
• 5:36
  Speaker 2: Will they say they plan to use the cash to
• 5:38
  Speaker 2: expand its lines into apparel and activewear.
• 5:40
  Speaker 1: As well as double down on retail and international growth.
• 5:43
  Speaker 2: And be man. This is just another reminder of the
• 5:46
  Speaker 2: power of not just celebs endorsing brands, but celebs actually
• 5:49
  Speaker 2: owning brands.
• 5:50
  Speaker 1: So what's the key learning here?
• 5:51
  Speaker 2: Star power gives a brand a launch pad most startups
• 5:55
  Speaker 2: could never buy and juzzy boy, it's no surprise that
• 5:57
  Speaker 2: investment firms have been leaning into celebrity back to consumer
• 6:01
  Speaker 2: brands because the marketing power is baked into the business model.
• 6:04
  Speaker 1: Yep. With celebrities like Kim Kardashian, she launches a new
• 6:07
  Speaker 1: brand and it gets seen by her audience of hundreds
• 6:09
  Speaker 1: of millions of followers basically immediately.
• 6:12
  Speaker 2: And that means the brand can gain awareness and distribution
• 6:15
  Speaker 2: much faster than a traditional brand.
• 6:17
  Speaker 1: We've seen this trend before, haven't we.
• 6:18
  Speaker 2: We have Hailey beavers Road sold to Air Left Beauty
• 6:21
  Speaker 2: for around one billion US dollars.
• 6:23
  Speaker 1: Old George Clooney sold this tequila brand, Casamigo's to Diagio
• 6:27
  Speaker 1: for one billion US dollars.
• 6:28
  Speaker 2: And with Skims flagging their ambitions for an IPO in
• 6:31
  Speaker 2: the next couple of years, you can just see the
• 6:33
  Speaker 2: investors licking their lips and jumping on board right away.
• 6:36
  Speaker 2: Flux Sam, it is good to be back on the
• 6:38
  Speaker 2: pod talking three business stories every single day. If you
• 6:41
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• 6:43
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• 6:50
  Speaker 2: the pod as we go into twenty twenty six.
• 6:52
  Speaker 1: Thanks for listening and we'll see you on Monday.