Amazon invests in UK restaurant delivery service Deliveroo - CNN

Deliveroo announced Friday that it had raised $575 million in an investment round which adds the US tech giant to its list of investors.

"Amazon has been an inspiration to me personally and to the company, and we look forward to working with such a customer-obsessed organisation," Deliveroo CEO Will Shu said in a statement.

The London-headquartered delivery platform, which operates in 14 countries and territories around the world including Australia, France and Germany, said it has now raised more than $1.5 billion since it was founded in 2013.

The funding round also included some of Deliveroo's previous investors such as T. Rowe Price (TROW), Fidelity and Greenoaks, it said.

Amazon already has a presence in the food delivery space with its website's "restaurant" section and AmazonFresh Grocery, but the investment into Deliveroo will further expand its global reach.

The US firm has been "impressed with Deliveroo's approach, and their dedication to providing customers with an ever increasing selection of great restaurants along with convenient delivery options," Amazon UK Country Manager Doug Gurr said in a statement.

Deliveroo, which competes with companies such as GrubHub (GRUB), Door Dash and Uber Eats, said it will use the new investment to grow the engineering team at its London headquarters, develop new products and expand its delivery reach.

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https://www.cnn.com/2019/05/17/investing/amazon-investment-deliveroo/index.html

2019-05-17 06:56:00Z
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Amazon leads $575 million investment round for food delivery company Deliveroo - CNBC

Amazon is leading a $575 million funding round for Deliveroo, taking the total the food delivery app has raised to date up to $1.53 billion.

Others taking part in the funding round include existing investors T. Rowe Price, Fidelity Management, and Greenoaks.

Deliveroo is a British company that allows users to order food deliveries from nearby restaurants using an app. Its U.K. rivals include Uber Eats and Just Eat, but the firm operates across 14 markets including Australia, Germany, Hong Kong and the UAE.

Deliveroo said in a press release Friday that it would use the funding to grow its engineering team in its London headquarters and expand its delivery reach to offer its service to new customers. Will Shu, founder and CEO of Deliveroo, said in the press release that the new investment would offer restaurants new opportunities to grow and expand their businesses.

"Amazon has been an inspiration to me personally and to the company, and we look forward to working with such a customer-obsessed organization," he said. "This is great news for the tech and restaurant sectors, and it will help to create jobs in all of the countries in which we operate."

In December, Deliveroo, which grew by 116% globally in 2017, opened its first brick-and-mortar restaurant in Hong Kong. Deliveroo Food Market serves as a kitchen for delivering online orders as well as a consumer-facing storefront where consumers can choose from 15 dining concepts.

At the time, the company said it would expand the concept globally if all goes well, but it already had plans to open a second location in Singapore this year.

British newspaper The Daily Telegraph reported late last year that Deliveroo is eyeing a 2020 IPO, quashing rumors that a takeover deal from Uber was in the works.

Seema Shah, global investment strategist at Principal Global Investors, told CNBC's "Squawk Box Europe" on Friday that services like Deliveroo – which "technified" traditional industries – had significant long-term potential.

"The problem that they face is that there's so many competitors coming in – all of these large tech companies are developing other technologies that can enable them to do similar stuff, so I think it's going to be tough going forward," she said. "But there's so much interest, especially when you think about the millennial contingent that's coming through – that's the only way that they're going to be operating."

However, Deliveroo has faced similar issues to Uber when it comes to sentiment among its employees. In June last year, a group of 50 U.K. workers won a six-figure payout from the firm in a settlement of an employment rights claim. The claim alleged the riders were denied rights such as the legal minimum wage after being given contractor status instead of classified as employees.

In December, the tide turned in Deliveroo's favor when it won a case in Britain's High Court, which rejected claims that categorizing riders as self-employed breached their human rights.

- CNBC's Uptin Saiidi contributed to this report.

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2019-05-17 06:45:02Z
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Walmart says it will raise prices because of tariffs - CNN

"We're going to continue to do everything we can to keep prices low. That's who we are. However, increased tariffs will lead to increased prices, we believe, for our customers." Walmart chief financial officer Brett Biggs told reporters on a call after the retailer reported earnings for the first quarter of 2019.

Biggs did not say which items will become more expensive at Walmart. He noted, however, that Walmart's merchant teams have been developing strategies to mitigate cost increases and working with its suppliers to manage prices.

Walmart has less exposure to China than many other retailers because more than half of its sales come from groceries. Most of the food Walmart sells comes from the United States and other regions such as South America.

But Walmart (WMT) still imports 26% of its merchandise from China, UBS analyst Michael Lasser estimated in a report earlier this week. Target (TGT) imports 34% of its products from China. Other companies, including sporting goods, auto parts and furniture sellers, have even greater exposure to China.

Last week, the Trump administration hiked tariffs on $200 billion of Chinese-made goods. The tariffs mostly hit industrial materials and component parts, but also applied to luggage, hats and gloves for US importers.

Additionally, the United States has started a formal process to put new tariffs in place on the remaining exports coming from China that aren't already taxed. That could make a number of goods, including toys, clothes and sneakers, more expensive for American consumers.

Retailers depend heavily on China in their supply chain. China accounted for about 41% of all apparel, 72% of all footwear, and 84% of all travel goods imported into the United States in 2017, according to a letter several retail trade groups sent to the Trump administration last week.

Other retailers have also recently warned that tariffs will hit their businesses.

On Wednesday, Macy's said it will raise prices on some merchandise because of the trade war with China.

"If the potential fourth tranche of tariffs is placed on all Chinese imports, that will have an impact on both our private and our national brands," CEO Jeff Gennette told analysts on an earnings call. He said it would be hard for Macy's to "find a path" to avoid increasing prices on consumers.

Walmart is surging

Tariffs pose an obstacle for Walmart, one of the strongest retailers in the United States.

During its first quarter, Walmart's sales at US stores open at least a grew 3.4% compared to the same time last year. That marked Walmart's fourth-straight quarter of sales growth above 3% at stores open at least a year.

"The US business continues to benefit from a healthy economic environment," CFO Biggs said in a statement earlier Thursday.

Walmart's online sales growth clocked in at 37% last quarter, a tick down from the 40% rate online sales grew last year. Walmart has ramped up its online grocery business and acquired trendy fashion brands such as Bonobos and Eloquii. Online grocery pickup and delivery buoyed online sales, according to the company.

"We're pleased with how we started the year," CEO Doug McMillon said. "We have a stronger foundation in place with our stores, and we're making good progress in e-commerce."

One analyst Thursday attributed Walmart's strength to its decision to continue lowering its prices, despite higher costs and investments in remodeling stores and building out its online infrastructure.

"Shoppers are now becoming more price sensitive, which plays into one of Walmart's core strengths," Neil Saunders, managing director at GlobalData Retail said in a note to clients.

—CNN Business' Katie Lobosco contributed to this article.

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2019-05-16 14:36:00Z
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Walmart says higher tariffs on China goods will increase prices for U.S. shoppers - NBCNews.com

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May 16, 2019, 1:50 PM UTC

By Reuters

Walmart said on Thursday that prices for shoppers will go up due to higher tariffs on imports from China, as the world's largest retailer reported its best comparable sales growth for the first quarter in nine years.

Walmart shares, which have gained 7 percent so far this year, rose 2.4 percent to $102.30 in premarket trade.

President Donald Trump increased tariffs on $200 billion worth of Chinese imports to 25 percent from 10 percent last week. The move is widely expected to raise prices on thousands of products including clothing, furniture and electronics. China retaliated on Monday, announcing it would raise tariffs on $60 billion of American-made imports.

Walmart Chief Financial Officer Brett Biggs told Reuters that higher tariffs will result in increased prices for consumers. He said the company will seek to ease the pain, in part by trying to obtain products from different countries and by working with suppliers' "costs structures to manage higher tariffs."

Moody's analyst Charlie O'Shea said the potential impact on Walmart and its shoppers (from tariffs) is limited by its food business. Its grocery operation, which includes fresh food, contributes roughly 56 percent to overall revenue.

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"We believe Walmart has the wherewithal both financially and via its vendor relationships to minimize the impact on both itself and its shopping base," he said.

Biggs said the retailer has not seen signs of a slowdown in consumer spending, but he declined to comment on the health of the consumer in the near term.

Investors and analysts expect spending to slow this year against a backdrop of rising debt, tariffs and economic uncertainty.

Retail sales unexpectedly fell in April as households cut back on purchases of vehicles and a range of other goods, reflecting a slowdown in economic growth after a temporary boost from exports and inventories in the first quarter.

Earlier this week, Walmart stepped up its battle with Amazon by offering one-day delivery in some markets without a shipping fee, weeks after Amazon announced a similar plan. Walmart said it will cost the company less than two-day shipping since orders will be delivered from warehouses closer to the customer and arrive in a single box rather than multiple packages.

Store sales rose by 3.4 percent, excluding fuel, in the quarter ended April 30, with online sales up 37 percent.

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2019-05-16 13:50:00Z
CBMicWh0dHBzOi8vd3d3Lm5iY25ld3MuY29tL2J1c2luZXNzL2NvbnN1bWVyL3dhbG1hcnQtc2F5cy1oaWdoZXItdGFyaWZmcy1jaGluYS1nb29kcy13aWxsLWluY3JlYXNlLXByaWNlcy11LW4xMDA2MzY20gEsaHR0cHM6Ly93d3cubmJjbmV3cy5jb20vbmV3cy9hbXAvbmNuYTEwMDYzNjY

Walmart CEO: Autonomous-car delivery is part of our future - Yahoo Finance

Amazon’s recent reveal of free one-day shipping for all Prime members almost blew up the internet.

The real question is why is it a big deal? Amazon’s (AMZN) rival Walmart (WMT) is already shipping groceries same-day at 800 stores mostly through the use of independent contractors such as DoorDash and Roadie. By year end, Walmart expects to have this capability available to shoppers at 1,600 of its U.S. locations.

Walmart also just took the wraps off its own one-day delivery program this week.

So in other words, been there, done that Amazon. What’s next on the delivery front you ask? Walmart and autonomous vehicle delivery mixed with some drone action, says Walmart’s top executive.

“I think last mile [delivery] is going to be solved in a lot of different ways,” Walmart CEO Doug McMillon told Yahoo Finance in an interview at the company’s Arkansas-based headquarters. “We're developing the capabilities to be able to solve last mile in lots of different ways — I think autonomous, as it starts to happen, will be another interesting part of the puzzle.”

McMillon said Walmart will soon begin testing autonomous delivery in Arkansas.

Walmart’s venture into autonomous delivery arguably continues to garner little fanfare (beyond a home-run TV commercial this year featuring the autonomous Knight Rider car, KITT, venturing off to pick up groceries), but it should considering the speed in which tech savvy consumers are demanding their orders nowadays. In February, the company teamed up with logistics giant FedEx to test delivery via an autonomous robot. The robot looks like a giant cooler on four wheels.

Jimmy Fallon checks out FedEx's new delivery robot. This is the same one Walmart is working with. (Photo by: Andrew Lipovsky/NBC/NBCU Photo Bank via Getty Images)

The test with FedEx comes almost a year after Walmart inked a deal with Google’s Waymo self-driving unit in Arizona. Waymo’s self-driving cars essentially show up to take customers to the stores to pick up their orders and then back home.

“Recognizing that a significant portion of Waymo rides taken revolve around running errands, we partnered with Walmart to make shopping more convenient and to give riders savings on groceries that were ordered on Walmart.com," Amee Chande, chief commercial officer of Waymo, told Yahoo Finance. "We are proud to partner with businesses like Walmart to explore ways to further connect the community to businesses and to learn key consumer preferences like where people prefer to be dropped off and picked up when they go shopping."

Need for speedy deliveries

In the end, the world’s largest retailer — and others in retail more broadly — must find ways to deliver packages even more quickly with an eye towards profitability on those orders.

Autonomous shipping could be one part of the answer. And for Walmart, it could be a major part of the delivery equation in its war with Amazon seeing it can ship from thousands of stores.

Besides Whole Foods’s few hundred locations and 12 Amazon Go stores, Amazon has no physical store presence.

Not sold on autonomous delivery being the future? Then Walmart is also keen on pushing forward with a plan launched in 2017 to have its store workers deliver packages on their way home.

“We hope that our associates over time can do more delivery from their way home from stores. We keep trying to figure that out given the realities and the rules associated with that,” McMillon said.

Brian Sozzi is an editor-at-large and co-host of ‘The First Trade’ at Yahoo Finance. Follow Brian Sozzi him on Twitter @BrianSozzi

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2019-05-16 12:51:00Z
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Walmart says higher tariffs on China goods will increase prices for U.S. shoppers - Yahoo Finance

By Nandita Bose

(Reuters) - Walmart Inc said on Thursday that prices for shoppers will go up due to higher tariffs on imports from China as the world's largest retailer reported its best comparable sales growth for the first quarter in nine years.

Walmart shares, which have gained 7% so far this year, rose 2.4% to $102.30 in premarket trade.

U.S. President Donald Trump increased tariffs on $200 billion worth of Chinese imports to 25% from 10% last week. The move is widely expected to raise prices on thousands of products including clothing, furniture and electronics. China retaliated on Monday, though on a smaller scale.

Walmart Chief Financial Officer Brett Biggs told Reuters that higher tariffs will result in increased prices for consumers. He said the company will seek to ease the pain, in part by trying to obtain products from different countries and by working with suppliers' "costs structures to manage higher tariffs."

Moody's analyst Charlie O'Shea said the potential impact on Walmart and its shoppers (from tariffs) is limited by its food business. Its grocery operation, which includes fresh food, contributes roughly 56 percent to overall revenue.

"We believe Walmart has the wherewithal both financially and via its vendor relationships to minimize the impact on both itself and its shopping base," he said.

CFO Biggs said the retailer has not seen signs of a slowdown in consumer spending, but he declined to comment on the health of the consumer in the near term.

Investors and analysts expect U.S. spending to slow this year against a backdrop of rising debt, tariffs and economic uncertainty.

U.S. retail sales unexpectedly fell in April as households cut back on purchases of vehicles and a range of other goods, reflecting a slowdown in economic growth after a temporary boost from exports and inventories in the first quarter.

Earlier this week, Walmart stepped up its battle with Amazon.com Inc by offering one-day delivery in some markets without a shipping fee, weeks after Amazon announced a similar plan. Walmart said it will cost the company less than two-day shipping since orders will be delivered from warehouses closer to the customer and arrive in a single box rather than multiple packages.

Sales at Walmart's U.S. stores open at least a year rose 3.4%, excluding fuel, in the quarter ended April 30. Analysts estimated growth of 3.1%, according to IBES data from Refinitiv.

Adjusted earnings per share increased to $1.13 per share, beating expectations of $1.02 per share.

Online sales rose 37%, slowing from the previous quarter's 43% increase but stronger than online sales growth at most of its brick-and-mortar rivals. The company has forecast a 35% increase in online sales this year.

Total revenue was up 1% at $123.9 billion but lower than analysts' estimates of $125.03 billion dragged down by currency impact and lower international sales. Excluding currency, revenue was up 2.5% at $125.8 billion.

On Tuesday, Walmart said it was considering a stock market listing for its British supermarket arm Asda, whose attempt to combine with rival J Sainsbury Plc was blocked by UK regulators last month.

(Reporting by Nandita Bose in Washington; Editing by Jeffrey Benkoe)

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2019-05-16 12:39:00Z
CBMiUWh0dHBzOi8vZmluYW5jZS55YWhvby5jb20vbmV3cy93YWxtYXJ0cy1maXJzdC1xdWFydGVyLXUtY29tcGFyYWJsZS0xMTE4MTE1MzcuaHRtbNIBWWh0dHBzOi8vZmluYW5jZS55YWhvby5jb20vYW1waHRtbC9uZXdzL3dhbG1hcnRzLWZpcnN0LXF1YXJ0ZXItdS1jb21wYXJhYmxlLTExMTgxMTUzNy5odG1s

US housing starts rose more than expected in April - CNBC

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U.S. homebuilding increased more than expected in April and activity in the prior month was stronger than initially thought, suggesting declining mortgage rates were starting to provide some support to the struggling housing market.

Housing starts rose 5.7% to a seasonally adjusted annual rate of 1.235 million units last month, driven by gains in the construction of both single- and multi-family housing units, the Commerce Department said on Thursday. Groundbreaking was also likely boosted by drier weather in the Midwest.

Data for March was revised up to show homebuilding rising to a pace of 1.168 million units, instead of falling to a rate of 1.139 million units as previously reported.

The government revised the seasonally adjusted data back to January 2014. The unadjusted series will be revised in July.

Building permits rose 0.6% to a rate of 1.296 million units in April. Building permits had declined for three straight months. Permits for single-family housing, however, fell for a fifth straight month, suggesting a moderation in homebuilding activity in the months ahead.

Economists polled by Reuters had forecast housing starts would increase to a pace of 1.205 million units in April.

The 30-year fixed mortgage rate has dropped to 4.10% from a peak of about 4.94% in November, according to data from mortgage finance agency Freddie Mac. Decreasing mortgage rates reflect a recent decision by the Federal Reserve to suspend its three-year monetary policy tightening campaign.

A survey on Wednesday showed confidence among homebuilders rose to a seven-month high in May. While lower borrowing costs are boosting demand, builders said they "continue to deal with ongoing labor and lot shortages and rising material costs that are holding back supply and harming affordability."

The housing market has been mired in a soft patch since last year. Investment in homebuilding contracted at a 2.8% annualized rate in the first quarter, the fifth straight quarterly decline.

Single-family homebuilding, which accounts for the largest share of the housing market, increased 6.2% to a rate of 854,000 units in April. Single-family homebuilding surged in the Midwest, which had suffered flooding in prior months. Single-family starts also rose in the Northeast and West, but fell in the South, where the bulk of homebuilding occurs.

Permits to build single-family homes dropped 4.2% to a rate of 782,000 units in April.

Starts for the volatile multi-family housing segment advanced 4.7% to a rate of 381,000 units last month. Permits for the construction of multi-family homes rebounded 8.9% to a pace of 514,000 units last month.

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2019-05-16 12:31:42Z
CBMiPmh0dHBzOi8vd3d3LmNuYmMuY29tLzIwMTkvMDUvMTYvaG91c2luZy1zdGFydHMtYXByaWwtMjAxOS5odG1s0gFCaHR0cHM6Ly93d3cuY25iYy5jb20vYW1wLzIwMTkvMDUvMTYvaG91c2luZy1zdGFydHMtYXByaWwtMjAxOS5odG1s