Latest / What the Flux / ACCC investigates Uber Eats | Enhanced Games fails the hype test | Temu hit with €200 million fine

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ACCC investigates Uber Eats | Enhanced Games fails the hype test | Temu hit with €200 million fine · What the Flux

• 0:05
  Speaker 1: This is what the Flux I'm brand justin as Monday,
• 0:08
  Speaker 1: the first of June.
• 0:09
  Speaker 2: Jesi boy. I know you love a little parcel delivered
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  Speaker 1: your credit score, seeing what changed last month, preparing yourself
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• 0:37
  Speaker 2: Three huge stories today, Jasi boy, let's do it for
• 0:39
  Speaker 2: our first The A Triple See has opened a preliminary
• 0:43
  Speaker 2: investigation into uber eats after claims of anti competitive deals.
• 0:47
  Speaker 1: Uber eaed's making ozsies lazy since twenty sixteen.
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  Speaker 2: So we will well, we know uber eats as the
• 0:52
  Speaker 2: very lucrative spin off of the uber rie sharing app.
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  Speaker 1: In fact, last year, Uber earned thirty three percent of
• 0:57
  Speaker 1: its global revenue from the uber EAT's division, which is
• 1:00
  Speaker 1: second only behind rid.
• 1:01
  Speaker 2: Share and juzuait. Uber Eats has become Australia's undisputed king
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  Speaker 2: of convenience. We're talking four and a half million active
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  Speaker 2: users in Australia. You do in a bagel while horizontal
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  Speaker 2: on the couch on a Sunday morning Uber eats.
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  Speaker 1: You want tie on the couch on a rainy night,
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  Speaker 1: that'd be Uber eats, So be man. Here's the drama.
• 1:16
  Speaker 1: Might ten signed a non exclusive delivery pilot with uber
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  Speaker 1: EAT's last October.
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  Speaker 2: Then Uber Eats turned around and inked an exclusive deal
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  Speaker 2: with Bunnings and then quietly ghosted Mini Ten's partnership.
• 1:26
  Speaker 1: And then mater Ten's parent company, met Cash dubbed in
• 1:29
  Speaker 1: Uber Eats and Bunnings to the agrible sea.
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  Speaker 2: Juzu's not just Bunnings who's got the exclusivity deal with
• 1:34
  Speaker 2: uber Eats Now, Hungry Jacks and Glusvini Gomez have also
• 1:37
  Speaker 2: locked in exclusive Uber Eats arrangements which locks out door
• 1:39
  Speaker 2: Dash and any other delivery platform.
• 1:41
  Speaker 1: And the man this is a classic and this is
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  Speaker 1: a classic case of what regulates called exclusive dealing.
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  Speaker 2: And potentially anti competitive conduct.
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  Speaker 1: So what is the key leading here.
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  Speaker 2: Exclusive dealing is when a supplier or platform says you
• 1:52
  Speaker 2: can only work with us, not our.
• 1:54
  Speaker 1: Competitors, and be man on its own. That's not automatically illegal.
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  Speaker 1: Is this a sign exclusive arrangements all the time?
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  Speaker 2: The line gets us when it substantially lessens competition in
• 2:03
  Speaker 2: a market.
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  Speaker 1: That is the specific test under Australia's Competition and Consumer Act.
• 2:07
  Speaker 2: So what does that mean in non legal mumbo jumbo.
• 2:10
  Speaker 1: Well, it means if a big player locks up enough
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  Speaker 1: suppliers and brands that their rivals can't realistically compete, then
• 2:16
  Speaker 1: the regulators start snooping around and asking questions.
• 2:18
  Speaker 2: And these exclusive dealings are becoming a bigger deal as
• 2:21
  Speaker 2: the industry gets bigger.
• 2:22
  Speaker 1: According to Ibisweld, the Australian food delivery app industry is
• 2:25
  Speaker 1: worth around one point eight billion dollars a.
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  Speaker 2: Year and Uberis has roughly fifty five percent of the market.
• 2:30
  Speaker 1: So Man, while the investigation is still in its early days,
• 2:33
  Speaker 1: one thing is clear. When you're serving more than half
• 2:34
  Speaker 1: the market, the regulator is going to want to have
• 2:36
  Speaker 1: a look at that menu.
• 2:37
  Speaker 2: For our second story, the Enhanced Games has suffered a
• 2:41
  Speaker 2: seventy percent drop in its share price in the past
• 2:43
  Speaker 2: three weeks after promise to break world records and failing dismally.
• 2:47
  Speaker 1: Even the athletes were shocked by how poorly they performed.
• 2:50
  Speaker 2: So tell me wro So. The Enhanced Games is a
• 2:52
  Speaker 2: sports event founded by an Australian entrepreneur, Aaron Desuza.
• 2:55
  Speaker 1: Concept take the Olympics, remove all the antidobe rules and
• 2:58
  Speaker 1: let athletes use performance in dancing drugs openly.
• 3:01
  Speaker 2: It's been ripped to shreds by global sporting bodies and
• 3:03
  Speaker 2: has even been called the steroid Olympics.
• 3:05
  Speaker 1: So the man investors were intrigued. He went public in
• 3:08
  Speaker 1: May this year via Spack merger and hit a two
• 3:11
  Speaker 1: point one billion dollar market cap at its peak. And
• 3:13
  Speaker 1: the inaugural event was held in Las Vegas last week
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  Speaker 1: and it did not go well.
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  Speaker 2: Now, First up, the official live stream froze minutes into
• 3:20
  Speaker 2: the first event.
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  Speaker 1: Then Australian swimmer James Magnison, who spent months talking about
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  Speaker 1: smashing records, finished last and.
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  Speaker 2: Swam slower than his PB in his clean prime.
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  Speaker 1: And only one world record was set in the fifty
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  Speaker 1: meters freestyle and even that is being disputed.
• 3:32
  Speaker 2: Next minute, the listed company behind the Enhanced Games, so
• 3:35
  Speaker 2: it shares drop over forty five percent and seventy percent
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  Speaker 2: across the last three weeks.
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  Speaker 1: Here's a twistbee Man. The Enhanced Games was supposedly never
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  Speaker 1: really about sport at all.
• 3:44
  Speaker 2: Now apparently the business is a director consumer telehealth and
• 3:47
  Speaker 2: supplement play.
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  Speaker 1: And these elite performance enhancing athletes were meant to show
• 3:51
  Speaker 1: you how good testosterone and peptide supplements can be if
• 3:54
  Speaker 1: your performance.
• 3:55
  Speaker 2: Interesting take, So what's the key learning here?
• 3:56
  Speaker 1: Some of the biggest consumer brands in history have been
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  Speaker 1: built by only cultural moment and selling products off the
• 4:01
  Speaker 1: back of it.
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  Speaker 2: Red Bull is the textbook example.
• 4:04
  Speaker 1: Yeah, they don't sell energy drinks, they sell extreme sports,
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  Speaker 1: and the drinks are almost as Suvidirve also.
• 4:09
  Speaker 2: Got f one teams cliff diving, space jumps, but it's
• 4:12
  Speaker 2: ultimately all marketing for their energy.
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  Speaker 1: Drink, and the Enhanced Games supposedly is attempting the same trick.
• 4:17
  Speaker 2: The sport is the content. The content drives eyeballs.
• 4:20
  Speaker 1: And the eyeballs by supplements, and boy, the market opportunity
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  Speaker 1: is real. The global sports nutrition market is already worth
• 4:26
  Speaker 1: over fifty billion US dollars and growing fast.
• 4:28
  Speaker 2: But the entire strategy depends on the athletes looking visibly
• 4:32
  Speaker 2: undeniably superhuman.
• 4:33
  Speaker 1: Instead, James Magdison swam slower than he did clean, Fred
• 4:36
  Speaker 1: Curley didn't get close to Usain Bolt.
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  Speaker 2: And what you left with is a fifty million dollar
• 4:40
  Speaker 2: marketing campaign that failed to demonstrate the product works.
• 4:43
  Speaker 1: And that is why many investors have jumped Chip.
• 4:45
  Speaker 2: Or Our third and final story, Timu has been hit
• 4:48
  Speaker 2: with a two hundred million euro fine by the European
• 4:51
  Speaker 2: regulator for failing to stop illegal products being sold on
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  Speaker 2: his platform, and the bill could still get bigger.
• 4:56
  Speaker 1: Of like a half smashed team who statue arriving at
• 4:58
  Speaker 1: your doorstep with everything you don't need, so tell me wrong.
• 5:01
  Speaker 2: So Timu is a Chinese owned e commerce marketplace with
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  Speaker 2: hundreds of millions of users globally.
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  Speaker 1: Launching Australia back in twenty twenty three, and he's now
• 5:08
  Speaker 1: one of the most downloaded shopping apps in the country
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  Speaker 1: with nearly five million customers.
• 5:13
  Speaker 2: But timm has had its fair share of scrutiny over
• 5:15
  Speaker 2: the years.
• 5:15
  Speaker 1: There have been issues with its products which haven't passed
• 5:17
  Speaker 1: local safety regulations in Australia.
• 5:19
  Speaker 2: There have been claims of worker exploitation, and the.
• 5:22
  Speaker 1: Drama continues for tv because the EU has just fined
• 5:25
  Speaker 1: them two hundred million euros for breaching the Digital Services Act.
• 5:29
  Speaker 2: Regulators found tim who failed to identify or assess the
• 5:31
  Speaker 2: risks of illegal products on its platform.
• 5:34
  Speaker 1: And its algorithm was also recommending these products to its customers. Meanwhile,
• 5:37
  Speaker 1: the trustee a Triple C is also watching very very closely.
• 5:40
  Speaker 2: Yeah, because Australia is also currently developing its own version
• 5:44
  Speaker 2: of these platform accountability rules.
• 5:46
  Speaker 1: So what is the key learning here?
• 5:48
  Speaker 2: For a long time, tech platforms had a pretty good deal,
• 5:50
  Speaker 2: all the upside of hosting a marketplace and not a
• 5:52
  Speaker 2: lot of responsibility for what actually got sold on there.
• 5:55
  Speaker 1: That man, they weren't responsible for what goes on in
• 5:57
  Speaker 1: the platform because they were just the humble in mediory.
• 6:00
  Speaker 2: But regulators around the world are now saying, if you're
• 6:03
  Speaker 2: making money from the platform, you're responsible for what happens
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  Speaker 2: on it.
• 6:06
  Speaker 1: And clearly TVU's recommendation system didn't just list illegal products,
• 6:09
  Speaker 1: it also promoted them via its algorithm and profited from them.
• 6:12
  Speaker 2: And this is quite similar to metas scam ads.
• 6:15
  Speaker 1: All those ads on Meta with the barefoot investors face
• 6:17
  Speaker 1: or Andrew Twiggy Forest Hoshi, Dick Smith supposedly sharing the
• 6:20
  Speaker 1: investment opportunity of a lifetime, except it wasn't them, and
• 6:24
  Speaker 1: it's been claimed that Meta had profited billions of dollars
• 6:26
  Speaker 1: off these scams and is now being sued by individuals
• 6:29
  Speaker 1: like Twiggy Forest and governments around the world. To be
• 6:31
  Speaker 1: man for any platform, whether it's TEAMU or Meta or
• 6:34
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  Speaker 2: Thanks for listening and we'll see you on Wednesday.