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Could Uber survive having employees?

September 21, 2023

Good morning.

Now in its 15 year of operation, Uber is by now a well and truly accepted mode of transport. But its business model – built on ‘self-employed’ drivers – continues to incur the wrath of policymakers, both here and abroad.

The EU is now considering giving de facto employee status to those workers – a change Uber claims would hike prices by 40% and cut business by 70%.

Despite posting its first ever profit last month, the latest proposals demonstrate just how vulnerable the Uber model remains.

*Stock data as of the market close. Commodities and crypto data in USD.

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MARKET MOVERS

Market News: Under immense pressure, the Qantas board has finally released its annual report with the long-awaited details of Alan Joyce’s final pay packet.

The CEO of the airline for 15 years, Joyce was paid $21.4 million last financial year. Of that total, $14.4 million could now be clawed back with Qantas chair Richard Goyder acknowledging customer satisfaction levels were “well below where they should be”.

It’s an interesting concession from a man that just 12 months ago called Joyce “the best CEO in the country by the length of a straight”.

Together with Stake | Invest on Wall St and the ASX

THE QUICK SYNC

  • The US Fed didn’t hike overnight but says it will hold rates higher for longer. (CNBC)

  • Generative AI is at the heart of the new Alexa updates for Amazon. (Financial Times)

  • Falling UK inflation has the market repricing rate decisions. (CNBC)

  • Klaviyo shares have surged 23% on debut in another successful tech IPO(Financial Times) – but Shopify is the big winner. (The Information)

  • Ford has reached a tentative labour agreement to avoid a second strike. (WSJ)

  • Meta is turning WhatsApp into a payments app in India. (TechCrunch)

TRADING FLOOR

M&A:

  • Keppel Infrastructure hired Flagstaff Partners to assist with its bid for Ventura Group, while Mobility ADO, a competitor, is partnering with Origin Capital Group for its bid. (AFR)

  • Ordermentum has completed the acquisition of Foodbomb signaling the beginning of consolidation in Australia's ordering and payments sector. (BNA | Startup Daily)

  • Pernod Ricard has engaged its longstanding advisors, Morgan Stanley and JPMorgan, to conduct a strategic evaluation of its activities in Australia and New Zealand. (AFR)

  • Australian Unity is reportedly considering the acquisition of Myhomecare, the in-home care business under Enrich Living, owned by Quadrant Private Equity. (The Australian)

  • PEP emerged as the winner with a $272m bid for a 50% stake in Sims' LMS Energy. (AFR)

  • Ingenia is reportedly discussing the sale of certain Ingenia Gardens assets in Western Australia to Eureka. (The Australian)

  • EIG Partners has told the ACCC it will not share sensitive information about LNG marketing, as they work to alleviate the regulator's concerns regarding the proposed $18.7bn takeover of Origin Energy. (AFR)

  • Send Payments has successfully formed a partnership with BankVic to streamline its foreign-exchange transactions. (BNA)

  • Bostock Group has enlisted the assistance of Craigs Investment Partners to aid in the search for a new owner. (AFR)

  • Engie has entered the competition for Lightsource BP, potentially challenging Palisade Investment Partners for the acquisition. (The Australian)

Capital Markets:

  • Goldman Sachs has raised US$15 billion for private equity stakes (Financial Times)

  • Refinancing of $2bn of debt by Wiggins Island Coal Export Terminal (WICET) will test banks’ ESG policies. (Capital Brief)

  • Instacart shares have experienced a significant increase in value on their Nasdaq debut, coming after its IPO was priced at the upper end of its range. (Capital Brief)

  • Regal Partners' resources royalties fund is in the process of gathering investors for a $50m capital raising effort to support financing for two deals in Canada. (AFR)

  • Bis Industries persuades its major shareholders, The Carlyle Group and Varde Partners, to provide additional equity capital. (AFR)

  • Geoff Wilson is gearing up to raise between $500m and $1bn for an open-ended fund. (AFR)

VC:

  • None

Others:

  • Westpac and ANZ are returning to big business clients as home lending peaks. (Capital Brief)

  • Elon Musk suggested a monthly service fee for using X could be an effective measure to combat bots on the platform formerly known as Twitter. (SMH)

  • EVT is being speculated as the next potential candidate considering a breakup. (The Australian)

  • KMD Brands has reported a modest decrease in full-year profit. (Capital Brief)

  • The Federal Court has issued an order for Qantas CEO Vanessa Hudson to participate in mediation with the Transport Workers' Union. (Capital Brief)

  • Transurban chief Scott Charlton will replace Geoff Culbert as Sydney Airport boss in December. (SMH)

  • The owner of Rip Curl and Kathmandu has reached a milestone by surpassing $1bn in sales for the first time. (SMH)

  • Mulpha Australia has received development approval on a $200m hotel project located in the south of Sydney's CBD. (BNA)

THE WATERCOOLER