Latest / What the Flux / Domain vs Realestate.com.au court battle | Xero goes full AI-mode | StubHub faces World Cup backlash

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Domain vs Realestate.com.au court battle | Xero goes full AI-mode | StubHub faces World Cup backlash · 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 Friday, the third
• 0:08
  Speaker 2: of July.
• 0:09
  Speaker 1: Douzzy boy, here's some new data to bring to family
• 0:12
  Speaker 1: dinner this weekend. New KPMG analysis shows Ozzie households have
• 0:15
  Speaker 1: copped more financial pain over the past two years than
• 0:18
  Speaker 1: they did back in nineteen eighty nine. That's when the
• 0:20
  Speaker 1: cash right hit seventeen and a half percent. To get this,
• 0:23
  Speaker 1: interest payments in the past couple of years peaked at
• 0:25
  Speaker 1: five point nine percent of household income compared to just
• 0:28
  Speaker 1: five point seven percent of the peak back then.
• 0:30
  Speaker 2: I know it's not fun and that really hurts. Fluxdam.
• 0:33
  Speaker 2: It's Friday. That means we're dropping quick stix and you
• 0:35
  Speaker 2: can win fifty bucks just by downloading the Flux app,
• 0:38
  Speaker 2: turning your notifications on, and being the first person to
• 0:40
  Speaker 2: answer three business or finance questions correctly. So if you
• 0:43
  Speaker 2: want to kick off the weekend on the right foot,
• 0:45
  Speaker 2: they show to download the Flux app and play quick.
• 0:47
  Speaker 1: Six three sensational stories today. Juzzy boy, let's do it
• 0:50
  Speaker 1: for our first domain has taken real estate dot com
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  Speaker 1: dot I use owner to court over misleading claims and
• 0:55
  Speaker 1: there's billions on the line.
• 0:57
  Speaker 2: Sounds like a messy legal drama. Neither once on displayed
• 0:59
  Speaker 2: and home be man, so tell.
• 1:01
  Speaker 1: Me more so. Domain and Aria Group are the two
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  Speaker 1: largest real estate sales portals in Australia.
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  Speaker 2: Y Aria Group, which operates real estate dot com dot
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  Speaker 2: Au among many others, has a market cap of just
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  Speaker 2: over eighteen billion dollars and Domain was taken off the
• 1:14
  Speaker 2: ASEX last year when it was acquired for around two
• 1:16
  Speaker 2: point eight billion dollars by US real estate giant Coastar
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  Speaker 2: Group and Beman. Coastar Group has a history of starting
• 1:22
  Speaker 2: heated legal wars with their rivals, and now Domain is
• 1:25
  Speaker 2: accusing Aria of advertising misleading claims. You see be Man
• 1:28
  Speaker 2: real estates dot com dout of you claims it found
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  Speaker 2: the buyer for nine in every ten homes sold on
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  Speaker 2: its platform.
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  Speaker 1: Which it slapped on a billboard reading we help nine
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  Speaker 1: in ten buyers find the one.
• 1:38
  Speaker 2: And the numbers appeared in research across LinkedIn, big news
• 1:41
  Speaker 2: outlets and investor announcements on the ASX.
• 1:43
  Speaker 1: Domain was not so happy about that one, because apparently
• 1:46
  Speaker 1: that research excluded that around twenty percent of properties sell
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  Speaker 1: without appearing on any platform.
• 1:51
  Speaker 2: So why does Domain care so much about its rivals? Mattsmewerk,
• 1:54
  Speaker 2: Well does you boy?
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  Speaker 1: They say? The nine and ten claim makes it seem
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  Speaker 1: like buyers don't need to list a home on an
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  Speaker 1: aldive platform like theirs to sell.
• 2:01
  Speaker 2: So b man, Domain is asking for corrective advertising that
• 2:05
  Speaker 2: would force Aria to publicly walk back it's sales pitch.
• 2:08
  Speaker 1: So what's the key learning here?
• 2:09
  Speaker 2: Sometimes the scariest punishment isn't the fine, it's being forced
• 2:12
  Speaker 2: to advertise your own stuffer yep. Corrective advertising is when
• 2:15
  Speaker 2: a court orders a company to run ads correcting its
• 2:17
  Speaker 2: misleading claims at its own expense, and courts genuinely hand
• 2:20
  Speaker 2: these out.
• 2:21
  Speaker 1: Secure Parking at Coop nearly eleven million dollars in penalties
• 2:24
  Speaker 1: plus in order to publish corrective notices.
• 2:26
  Speaker 2: And more recently, High Smile, the popular toothpaste was fined
• 2:29
  Speaker 2: by ASIK because their random shoppers and the videos were
• 2:31
  Speaker 2: High Smiles.
• 2:32
  Speaker 1: Employees were forced to own up to this with a
• 2:34
  Speaker 1: corrective post on their social media to its one point
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  Speaker 1: seven million followers.
• 2:38
  Speaker 2: Social suicide. Huh, And if Aria has.
• 2:40
  Speaker 1: To make a new billboard saying whoops, we counted wrong,
• 2:43
  Speaker 1: it's not exactly giving Australia's number one place for property.
• 2:46
  Speaker 1: For our second story, Zero has gone on an AI
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  Speaker 1: rampage as assigns a new aideal with Microsoft co Pilot.
• 2:53
  Speaker 1: It's third big aideal in just a few months, really
• 2:56
  Speaker 1: throwing out all the stops to fight their sixty percent
• 2:58
  Speaker 1: share prices slide go on okay.
• 3:00
  Speaker 2: So Zero is the keywborn accounting software giant. It helps
• 3:03
  Speaker 2: small businesses and bookkeepers managing voices, payroll payments. Founded in
• 3:07
  Speaker 2: Wellington in two thousand and six and ditch the New
• 3:10
  Speaker 2: Zealand stock is Shouge and listed solely on the ASX
• 3:12
  Speaker 2: in twenty eighteen, but be man. The last twelve months
• 3:14
  Speaker 2: have seen Zero share price fallen over sixty percent.
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  Speaker 1: The reason well investors have been pretty worried that AI
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  Speaker 1: could replace software companies like Zero.
• 3:22
  Speaker 2: So now Zero's announced it's plugging its aaagent jacks straight
• 3:26
  Speaker 2: into a Microsoft's co Pilot.
• 3:28
  Speaker 1: And that's on top of other deals Zero has announced
• 3:30
  Speaker 1: with Open AI and Anthropic and the Man Zero CEO
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  Speaker 1: is doing everything possible to try and change the narrative
• 3:36
  Speaker 1: about Zero. According to CEO, it's not a software company anymore.
• 3:38
  Speaker 1: Juzy boy I quote her we're a data company. We're
• 3:41
  Speaker 1: a technology company. We're a building company. We're a system
• 3:43
  Speaker 1: of record company, We're an app company, We're a platform company.
• 3:46
  Speaker 1: AI is the stuff we live for. Seems like they're
• 3:48
  Speaker 1: throwing every buzzword against the wall to see what sticks
• 3:50
  Speaker 1: with investors.
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  Speaker 2: So what is the key learning here?
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  Speaker 1: When investors think AI might eat your business, you better
• 3:55
  Speaker 1: explain fast why it can't. Yeah.
• 3:57
  Speaker 2: The fear with software companies is simple. If AI can
• 4:00
  Speaker 2: write software, why pay for existing software.
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  Speaker 1: Zero's answer to that question is one word data. Yeah.
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  Speaker 2: Nearly four point six million subscribers pump their invoices and
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  Speaker 2: payroll and bank feeds through Zero every day.
• 4:10
  Speaker 1: That's what makes Zero the quote system of record, according
• 4:13
  Speaker 1: to Zero's CEO.
• 4:14
  Speaker 2: YEP, which means basically the single source of truth for
• 4:17
  Speaker 2: all the business's real numbers.
• 4:18
  Speaker 1: So when co Pilot answers a question about your business,
• 4:20
  Speaker 1: it's still needs Zero's data to do it.
• 4:22
  Speaker 2: And Zero's betting that real financial data is the kind
• 4:25
  Speaker 2: of mote that I can't copy.
• 4:26
  Speaker 1: And when a technology shift threatens your business model, you've
• 4:29
  Speaker 1: got two jobs. Fix the product and fix the story,
• 4:32
  Speaker 1: but be man based on zero share price. After these
• 4:34
  Speaker 1: AI announcements, the market still isn't sure. For our third
• 4:38
  Speaker 1: and final story, US ticket reseller stub hub is being
• 4:41
  Speaker 1: sued by World Cup fans who paid big money for
• 4:44
  Speaker 1: tickets that never showed up.
• 4:45
  Speaker 2: Sounds like a bit of an own goal for subhub bman,
• 4:47
  Speaker 2: So what's going on here?
• 4:48
  Speaker 1: Well, StubHub is the New York based ticket platform that
• 4:50
  Speaker 1: lets people list and sell tickets they aren't going to use. Yeah.
• 4:53
  Speaker 2: They started in two thousand after the founder supposedly couldn't
• 4:56
  Speaker 2: find tickets to go to a solked out linking show
• 4:58
  Speaker 2: on Broadway and.
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  Speaker 1: Decided to to build a platform for people to safely
• 5:02
  Speaker 1: resell or buy tickets. Yeah.
• 5:03
  Speaker 2: Subhub iPod last year on the New York Sucke Exchange
• 5:06
  Speaker 2: with a market cap of over eight billion US dollars,
• 5:08
  Speaker 2: and now the company's being sued by customers for not
• 5:11
  Speaker 2: delivering FIFA World Cup tickets that it had promised. Not
• 5:14
  Speaker 2: great timing for the company, which has already suffered a
• 5:16
  Speaker 2: thirty percent four since its ibo, And.
• 5:19
  Speaker 1: While StubHub assured customers they'd be refunded, that doesn't really
• 5:22
  Speaker 1: help those who already traveled across the country for a game.
• 5:25
  Speaker 2: So unhappy customers flooded social media.
• 5:28
  Speaker 1: And thousands have banded together to lodge a five million
• 5:31
  Speaker 1: dollar lawsuit for allegedly violating consumer laws over lost tickets.
• 5:34
  Speaker 2: But be Man, StubHub never actually had those tickets in
• 5:37
  Speaker 2: the first.
• 5:37
  Speaker 1: Place, and Jase, wait, that is one of the key
• 5:39
  Speaker 1: challenges of the marketplace model.
• 5:42
  Speaker 2: So what is the key learning here?
• 5:43
  Speaker 1: The marketplace model means you don't hold the infantry, but
• 5:46
  Speaker 1: you still hold the reputational risk. Yeah, marketplace businesses like
• 5:49
  Speaker 1: StubHub sit in the middle of two sites, sellers with
• 5:52
  Speaker 1: tickets and buyers with the mauler. In theory, it's a
• 5:54
  Speaker 1: great model, no infantry, no warehouses, and juicy margins clipping
• 5:57
  Speaker 1: every transaction.
• 5:58
  Speaker 2: But the catch is that it's really buying on sellers
• 6:00
  Speaker 2: to actually deliver and buyers to actually pay. And when
• 6:03
  Speaker 2: the supply side fails, the customer doesn't blame some anonymous
• 6:06
  Speaker 2: or reseller in Ohio. They blame stub hub exactly and
• 6:09
  Speaker 2: be Man. Every marketplace faces this challenge. Airbnb whar's it
• 6:12
  Speaker 2: when hosts canceled last minute.
• 6:14
  Speaker 1: Uber wears it when drivers do not show.
• 6:16
  Speaker 2: And regulators make them wear it too. Uber copped a
• 6:18
  Speaker 2: twenty one million dollar penalty in Australia for misleading writers
• 6:21
  Speaker 2: about fees and fairs.
• 6:22
  Speaker 1: So you can outsource the inventry, but not the accountability Foxam.
• 6:26
  Speaker 2: From next week, we're shaking things up a little. For
• 6:28
  Speaker 2: the next two months. Brett, Larissa and I will be
• 6:30
  Speaker 2: dropping two episodes a week Wednesdays and Fridays, and we
• 6:32
  Speaker 2: are going deep think full industry deep dives, sit down
• 6:35
  Speaker 2: interviews with some seriously impressive Hozsie business leaders, and our
• 6:38
  Speaker 2: very first episode is an in conversation interview with Grant
• 6:41
  Speaker 2: Hacket OAM, three time Olympic gold medalist and CEO of
• 6:45
  Speaker 2: Generation Development Group.
• 6:46
  Speaker 1: Thanks for listening and we'll see you on a Wednesday