Latest / What the Flux / WE'RE BACK!!! The RBA shocks us all | Uber's riding high on your data | Aldi Australia (finally) comes online to compete with Coles & Woolies

Transcript

WE'RE BACK!!! The RBA shocks us all | Uber's riding high on your data | Aldi Australia (finally) comes online to compete with Coles & Woolies · What the Flux

• 0:05
  Speaker 1: This is what the flux.
• 0:06
  Speaker 2: I'm Brett and I'm Justin and it's Wednesday, the ninth
• 0:08
  Speaker 2: of June.
• 0:09
  Speaker 1: It is good to be back, Jusey boy. It has
• 0:11
  Speaker 1: been a lot of business news over the past few weeks.
• 0:14
  Speaker 1: I'm talking Quantus Haack, I'm talking Vergin Australia, I pos
• 0:17
  Speaker 1: Trump Tarim Stapp about and I must say, juzzy boy,
• 0:19
  Speaker 1: it's great to be back on the mic with you
• 0:22
  Speaker 1: and cannot wait to chat about that little cash rate
• 0:24
  Speaker 1: surprise as well.
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  Speaker 2: Very good to be back by Man and flex AMM.
• 0:27
  Speaker 2: Just a reminder you can always get your finance fixed
• 0:29
  Speaker 2: from the Flex app as well from learning about cash
• 0:31
  Speaker 2: rate updates, financial concepts, managing your budget. We have it
• 0:35
  Speaker 2: all covered in the Flex app. To make sure to
• 0:36
  Speaker 2: check that out.
• 0:37
  Speaker 1: Three newborn stories today, jussy boy, let's do it for
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  Speaker 1: our first. The Reserve Bank of Australia has thrown one
• 0:44
  Speaker 1: of the great surprises of twenty twenty five by pausing
• 0:46
  Speaker 1: the cash rate at three point eighty five percent.
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  Speaker 2: Market's almost guaranteed a cart but the markets don't make
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  Speaker 2: the decision, be Man, so tell me more.
• 0:53
  Speaker 1: So, Juzy boy. We know that the RBA brains trust
• 0:56
  Speaker 1: have put their heads together a few times this year already.
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  Speaker 2: Yep, there have been two rate so far in twenty
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  Speaker 2: twenty five, with the cash rate falling from four point
• 1:03
  Speaker 2: three five percent down to three point eight five.
• 1:05
  Speaker 1: And with the RBA meeting again on Monday and Tuesday
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  Speaker 1: this week, the financial markets gave a ninety seven percent
• 1:10
  Speaker 1: chance of a rate cut.
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  Speaker 2: In fact, they man just four out of thirty six
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  Speaker 2: economists predicted the decision to keep rates on hold.
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  Speaker 1: That's because trimmed mean inflation, the favorite figure of the RBA,
• 1:20
  Speaker 1: had slowed to two point four percent, which.
• 1:22
  Speaker 2: Is within the RBA's target range of two to three percent.
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  Speaker 1: And Jazi wait. On top of this, retail sales had
• 1:27
  Speaker 1: also weakened, which should encourage the RBA to drop rates.
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  Speaker 2: But obviously be man. The RBA doesn't want anyone knowing
• 1:34
  Speaker 2: its next move now, so it paus the cash rate
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  Speaker 2: at three point eight five percent.
• 1:37
  Speaker 1: The Governor of the RBA said that the case was
• 1:39
  Speaker 1: not established for another rate cut.
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  Speaker 2: It wanted to see a little bit more information before
• 1:44
  Speaker 2: moving on this cash rate.
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  Speaker 1: In particular, it pointing to the US tariffs which are
• 1:47
  Speaker 1: still unknown, as.
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  Speaker 2: Well as the policies that come out of the tariffs
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  Speaker 2: from countries that are hit like China.
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  Speaker 1: Aka Australia's biggest trading partner. So true, So what is
• 1:56
  Speaker 1: the key learning here? When it comes to interest rates,
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  Speaker 1: markets can speculate, central banks hold the cards.
• 2:01
  Speaker 2: Be Man, even if the economic data shows a slow down.
• 2:04
  Speaker 2: The RBA doesn't want to jump the gun.
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  Speaker 1: Because jumping the gun could risk reigniting inflation.
• 2:09
  Speaker 2: And be Man. Despite those positive signs around inflation, we
• 2:12
  Speaker 2: know that Donald Trump's tariffs could change the whole world's
• 2:14
  Speaker 2: economy in an instance.
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  Speaker 1: That's why the RBA is waiting for more consistent evidence
• 2:18
  Speaker 1: before making a change now.
• 2:20
  Speaker 2: Interestingly, be Man, The RBA released the voting for the
• 2:22
  Speaker 2: very first time, and not all RBA board members agree.
• 2:25
  Speaker 1: In fact, three board members voted for a cut, well
• 2:28
  Speaker 1: six voted for a pause.
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  Speaker 2: Majority rules. So in this case, the RBA said it
• 2:31
  Speaker 2: wants more information before cutting again.
• 2:33
  Speaker 1: It's not a node to the rate cuts, it's more
• 2:36
  Speaker 1: of a maybe soon.
• 2:37
  Speaker 2: Once we get a read on Old Trumpy.
• 2:39
  Speaker 1: For our second story. Uber Australia's advertising business has grown
• 2:43
  Speaker 1: to over one hundred and fifty million bucks. As its
• 2:46
  Speaker 1: latest revenue stream did.
• 2:47
  Speaker 2: The delays became Uber's payd eight man. So what is
• 2:50
  Speaker 2: the story here?
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  Speaker 1: So Uber is the OG of ride sharing and food
• 2:53
  Speaker 1: delivery services.
• 2:54
  Speaker 2: We all know the Uber story started in San Francisco
• 2:56
  Speaker 2: when Global Fast and launched in Australia in twenty twelve.
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  Speaker 1: Since then, Uber has remained the dominant player in Australia's
• 3:02
  Speaker 1: ride sharing and food delivery scene.
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  Speaker 2: It also famously operated at a loss for years as
• 3:07
  Speaker 2: a result of its very aggressive growth strategy.
• 3:09
  Speaker 1: Well think about all those ads with Kim Kardashian, Magna Zubanski,
• 3:12
  Speaker 1: Sure Rebel, Wilson, plenty more. Yep.
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  Speaker 2: But in twenty twenty two, b man Uber launching ad
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  Speaker 2: business in its Australian arm.
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  Speaker 1: Think as promoting specific restaurants above others, a bit like
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  Speaker 1: Google sponsored ads in your Uber app, And in its.
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  Speaker 2: First year it brought in an additional forty one million
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  Speaker 2: bucks in revenue.
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  Speaker 1: And fast forward two years later, Uber's ad business group
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  Speaker 1: by fifty five percent to about one fifty mil And then, man.
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  Speaker 2: These aren't your regular food ads. Now.
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  Speaker 1: Uber uses its first party data like your age, your location,
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  Speaker 1: your gender, and food habits to serve up really targeted
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  Speaker 1: food ads. Hungover on a Sunday morning, oh, you better
• 3:44
  Speaker 1: believe uberno's and will offer you makers yep. In a
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  Speaker 1: world where users are becoming more savvy with their data privacy,
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  Speaker 1: Uber has found a way to monetize the mountain of
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  Speaker 1: data it has yep.
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  Speaker 2: So what is the key learning here?
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  Speaker 1: Not all data sources are created equal, and first party
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  Speaker 1: data has become a super valuable resource.
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  Speaker 2: First party data is information that a company collects directly
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  Speaker 2: from you.
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  Speaker 1: For Uber, it might be your location, your purchase history,
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  Speaker 1: your food preferences.
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  Speaker 2: It's accurate, it's reliable, and you've usually consented to it first,
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  Speaker 2: even if it's in a long list of ts.
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  Speaker 1: And cs yep, as opposed to third party data, which
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  Speaker 1: is data collected by a data company or an aggregator
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  Speaker 1: and then shared with other businesses.
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  Speaker 2: Now, but man, you may remember back in twenty twenty one,
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  Speaker 2: Apple cracked down on third party data collection to protect
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  Speaker 2: user privacy.
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  Speaker 1: And that meant a lot of advertisers lost access to
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  Speaker 1: info that used to allow them to serve up targeted ads.
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  Speaker 2: So now more than ever, first party data has become
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  Speaker 2: a super valuable resource.
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  Speaker 1: And Uber's got the oodles of it.
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  Speaker 2: So even though their core service is still ride sharing
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  Speaker 2: and food delivery. Their new ad business is clearly very
• 4:45
  Speaker 2: scalable and very profitable year on year.
• 4:48
  Speaker 1: For our third and final story, Audi has launched a
• 4:51
  Speaker 1: home delivery service in Australia for the first time to
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  Speaker 1: get a slice of that growing online grocery industry.
• 4:57
  Speaker 2: Colsonwill is booming online, so definitely may sense tell me.
• 5:00
  Speaker 1: What we man well Jauziboy. Aldi was founded in Germany
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  Speaker 1: in nineteen forty six by two brothers. Audi has built.
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  Speaker 2: A reputation for offering very low cost groceries and knockoffs
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  Speaker 2: of all the brands.
• 5:12
  Speaker 1: You know, Red Rock, Daili chips, how about Audi's Blackstone chips.
• 5:15
  Speaker 2: Instead, need head and shoulder shampoo, why not try Aldi's
• 5:18
  Speaker 2: Headstrong shampoo.
• 5:20
  Speaker 1: Audi landed in Australia in two thousand and one and
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  Speaker 1: has grown to have nearly ten percent market share.
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  Speaker 2: But the man. While has taken the challenge to Coles
• 5:26
  Speaker 2: and Willies install, they've really fallen behind online.
• 5:29
  Speaker 1: You can't even buy a product from their website.
• 5:31
  Speaker 2: So now Audi's announced a new partnership with DoorDash that
• 5:34
  Speaker 2: will allow Aussie customers to purchase Audi products online. And
• 5:37
  Speaker 2: while it's not quite the same as their own online store.
• 5:40
  Speaker 2: It does solve a major problem for them, particularly when
• 5:42
  Speaker 2: the online grocery segment now counts for almost eleven percent
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  Speaker 2: of the overall grocery market.
• 5:47
  Speaker 1: So what is the key learning here?
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  Speaker 2: Retailers face a tough balancing act between gaining market share
• 5:51
  Speaker 2: and maintaining profit. Market and Juziboy offering delivery has been
• 5:55
  Speaker 2: an effective way to grow market share, but it can
• 5:57
  Speaker 2: also eat into profits because of the huge additional logistics costs.
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  Speaker 1: In fact, Woolly's new distribution center costs them more than
• 6:04
  Speaker 1: seven hundred million bucks to bill.
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  Speaker 2: And be man. Audi has been historically hesitant to offer
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  Speaker 2: home delivery because of the huge upfront costs.
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  Speaker 1: That now the opportunity to enter the online space is
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  Speaker 1: too juicy to ignore.
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  Speaker 2: So instead of spending big on warehouses and tech, Audi's found.
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  Speaker 1: A bit of a cheat code, partner with someone who
• 6:20
  Speaker 1: has already built it and lets.
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  Speaker 2: Them stay competitive online.
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  Speaker 1: In fact, Cole's online grocery shopping has grown twenty five
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  Speaker 1: percent just in the last quarter, and Woolly's online sales
• 6:29
  Speaker 1: up more than twenty percent in the most recent quarter
• 6:31
  Speaker 1: as well. So if Audi wants to keep up, this
• 6:33
  Speaker 1: door dash deal might just be the thing Flux and everybody.
• 6:36
  Speaker 2: Is shocked by the RBA's cashtray pause, one of the
• 6:39
  Speaker 2: great surprises of twenty twenty five so far. We do
• 6:42
  Speaker 2: a whole deep dive in the Flux app why they
• 6:44
  Speaker 2: made the pause, what are they looked at, and what
• 6:46
  Speaker 2: might change next time. So if you want to learn
• 6:47
  Speaker 2: more about the cashwrake surprise, make sure to check out
• 6:50
  Speaker 2: the Flux app.
• 6:50
  Speaker 1: Thanks for listening and we'll see you on Friday.