Jumat, 17 Mei 2019

Bitstamp Starts Investigation After Large BTC Sell Leads to $250 Mln Liquidated on BitMEX - Cointelegraph

Major crypto exchange Bitstamp has launched an investigation after a large bitcoin (BTC) sell order heavily impacted its order book, as the firm announced in a tweet on May 17.

Bitstamp reported an execution of a large sell order in BTC to United States dollars (USD) on its platform today, as the exchange wrote earlier today.

While the company has not specified the details of the transaction, the price of bitcoin had plummeted about 20% from around $7,800 to as low as $6,250 in less than 30 minutes earlier on the day, according to data from trading analytics platform TradingView. Briefly after the crash, bitcoin’s price has surged back, but stabilized below $7,400.

Bitstamp reported that their platform was operating properly as designed.

BTC/USD chart on Bitstamp on May 17

BTC/USD chart on Bitstamp on May 17. Source: TradingView

According to crypto news outlet The Block, the sell order on Bitstamp led to a liquidation of $250 million long positions on the BitMEX exchange, which further resulted in price declines on other crypto exchanges.

As reported by crypto publication Forklog, the sell order on Bitstamp included 5,000 bitcoins sold at $6,200. Some people in crypto community suggested that the sell order could be made by mistake, with the order’s owner having been meant to sell his bitcoin at $8,200 instead of $6,200.

Bitcoin is down around 10% over the past 24 hours to trade at $7,166 at press time after trading at around $7,800 yesterday, while 19 out of the top 20 cryptos by market cap are seeing major losses, according to data from CoinMarketCap.

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https://cointelegraph.com/news/bitstamp-starts-investigation-after-large-btc-sell-leads-to-250-mln-liquidated-on-bitmex

2019-05-17 15:33:00Z
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To Improve Health, Cut Costs, Walmart Pushes For Better Medical Imaging For Workers - NPR

Errors in reading diagnostic images like MRIs or CT scans can lead to unnecessary and costly medical procedures. Walmart is pushing its employees to use a vetted list of high quality imaging centers to avoid errors. HadelProductions/Getty Images hide caption

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HadelProductions/Getty Images

Walmart Inc., the nation's largest private employer, is worried that too many of its workers are having health conditions misdiagnosed, leading to unnecessary surgery and wasted health spending.

The issue crystallized for Walmart officials when they discovered about half of the company's workers who went to the Mayo Clinic and other specialized hospitals for back surgery in the past few years turned out not to need those operations. They were either misdiagnosed by their doctor or needed only non-surgical treatment.

A key issue: Their diagnostic imaging, such as CT scans and MRIs, had high error rates, says Lisa Woods, senior director of benefits design for Walmart.

So the company, whose health plans cover 1.1 million U.S. employees and dependents, has recommended since March that workers use one of 800 imaging centers identified as providing high-quality care. That list was developed for Walmart by Covera Health, a New York City based health analytics company that uses data to help spot facilities likely to provide accurate imaging for a wide variety of conditions, from cancer to torn knee ligaments.

Although Walmart and other large employers in recent years have been steering workers to medical centers with proven track records for specific procedures such as transplants, the retail giant is believed to be the first to prod workers to use specific imaging providers based on diagnostic accuracy — not price, say employer health experts.

"A quality MRI or CT scan can improve the accuracy of diagnoses early in the care journey, helping create the correct treatment plan with the best opportunity for recovery," says Woods. "The goal is to give associates the best chance to get better, and that starts with the right diagnosis."

Walmart employees are not required to use those 800 centers, but if they don't use one that is available near them, they will have to pay additional cost sharing. Company officials advise workers that they could have more accurate results if they opt for the specified centers.

Studies show a 3% to 5% error rate each workday in a typical radiology practice, but some academic research has found mistakes on advanced images such as CT scans and MRIs can reach up to 30% of diagnoses. Although not every mistake affects patient care, with millions of CT scans and MRIs done each year in the United States, such mistakes can have a significant impact.

"There's no question that there are a lot of errors that occur," says Dr. Vijay Rao, chairwoman of radiology at the Thomas Jefferson University Hospital in Philadelphia.

Errors at imaging centers can happen for many reasons, Rao says, including the radiologist not devoting enough time to reading each image, the technician not positioning the patient correctly in the imaging machine or a radiologist not having sufficient expertise.

Employers and insurers typically do little to help patients identify which radiology practices provide the most accurate results. Instead, employers have been focused on the cost of imaging tests. Some employers or insurers require plan members to use free-standing outpatient centers rather than those based in hospitals, which tend to be more expensive.

Woods says Walmart found that deficiencies and variation in imaging services affected employees nationwide. "Unfortunately, it is all over the country. It's everywhere," she says.

Walmart's new imaging strategy is aligned with its efforts over the past decade to direct employees to select hospitals for high-cost health procedures. Since 2013, Walmart has been sending workers and their dependents to select hospitals across the country where it believes they can get better results for spine surgery, heart surgery, joint replacement, weight loss surgery, transplants and certain cancers.

As part of its "Centers of Excellence" program, the Bentonville, Ark.-based retail giant picks up the tab for the surgeries and all related travel expenses for patients on the company's health insurance plan, including a caregiver.

Tracking imaging centers' quality

Most consumers give little thought to where to get an MRI or CT scan, and usually go where their doctors send them, the closest facility or, increasingly, the one that offers the lowest price, notes Covera CEO Ron Vianu. "Most people think of diagnostic imaging as a commodity, and that's a mistake," he says.

Vianu says studies have shown that radiologists frequently offer different diagnoses based on the same image taken during an MRI or CT scan. Among explanations are that some radiologists are better at analyzing certain types of images — like those of the brain or bones — and sometimes radiologists read images from exams they have less experience with, he says.

Covera has collected information on thousands of hospital-based and outpatient imaging facilities.

"Our primary interest is understanding which radiologist or radiology practices are achieving the highest level of diagnostic accuracy for their patients," says Dan Elgort, Covera's chief data science officer.

Covera has independent radiologists evaluate a sampling of patient care data on imaging centers to determine facilities' error rates. It uses statistical modeling along with information on each center's equipment, physicians and use of industry-accepted patient protocols to determine the facilities' rates of accuracy.

Covera expects to have about 1,500 imaging centers in the program it runs for Walmart by year's end, says CEO Ron Vianu.

There are about 4,000 outpatient imaging centers in the United States, not counting thousands of hospital-based facilities, he estimated.

As a condition for participating in the program, each of the imaging centers has agreed to routinely send a sampling of their patients' images and reports to Covera.

Rao applauded the effort by Walmart and Covera to identify imaging facilities likely to provide the most accurate reports. "I am sure centers that are worried about their quality will not be happy, but most quality operations would welcome something like this," she says.

Few guides for consumers

Consumers have little way to distinguish the quality of care from one imaging center to the next. The American College of Radiology has an accreditation program but does not evaluate diagnostic quality.

"We would love to have more robust ... measurements" about the outcomes of patient care than what is currently available, says Dr. Geraldine McGinty, chair of the college's board of chancellors.

Facilities typically conduct peer reviews of their radiologists' patient reports, but there is no public reporting of such results, she says.

Covera officials says they have worked with Walmart for nearly two years to demonstrate they could improve the quality of diagnostic care its employees receive. Part of the process has included reviewing a sample of Walmart employees' health records to see where changes in imaging services could have caught potential problems.

Covera says the centers in its network were chosen based on quality; price was not a factor.

In an effort to curtail unnecessary tests, Walmart, like many large employers and insurers, requires its insured members to get authorization before getting CT scans and MRIs.

"Walmart is on the leading edge of focusing on quality of diagnostic imaging," says Suzanne Delbanco, executive director of the Catalyst for Payment Reform, an employer-led health care think tank and advocacy group.

But Mark Stolper, executive vice president of Los Angeles-based RadNet, which owns 335 imaging centers nationally, questions how Covera has enough data to compare facilities. "This would be the first time," he says, "I have seen or heard of a company trying to narrow a network of imaging centers that is based on quality instead of price."

Woods says that even though the new imaging strategy is not based on financial concerns, it could pay dividends down the road.

"It's been demonstrated time and time again that high quality ends up being more economical in the long run because inappropriate care is avoided, and patients do better," she says.

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https://www.npr.org/sections/health-shots/2019/05/17/724300217/to-improve-health-cut-costs-walmart-pushes-for-better-medical-imaging-for-worker

2019-05-17 15:24:00Z
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How Luckin Coffee Became No. 2 To Starbucks In China : Goats and Soda - NPR

Luckin Coffee customers use an app and can pick up their coffee in 3 minutes or have it delivered. Above, a deliveryman in Beijing. Wang Zhao /AFP/Getty Images hide caption

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Wang Zhao /AFP/Getty Images

In a country identified with one warm beverage – tea – coffee is now hot. Indeed, as China catapults from its traditional past into a global future, java is jumping – and one national company is leading the way: Luckin Coffee.

Established in October 2017, Luckin Coffee has quickly become the second largest coffee chain in China after Starbucks. As of March, it has opened 2,370 stores — mostly in office buildings —across 28 cities and sold 90 million cups of coffee to over 16.8 million customers, according to its official document to investors. It goes public on Nasdaq on May 17.

This ambitious Chinese coffee brand aims to have 4,500 stores throughout the country by the end of this year, surpassing Starbucks, which has 3,600 branches on the streets of 150 Chinese cities two decades after it arrived in China.

Luckin, or ruixing in Chinese, means "happiness" and "luck." This lucky newcomer on April 22 filed paperwork for its Nasdaq initial public offering, aiming to raise $510 million. It secured $150 million in Series B funding four days before that, boosting the company's value to $2.9 billion.

So how do you promote coffee in a teacentric society? Starbucks has developed drinks tailored to the Chinese palettes – like last summer's Chilled Cup, a smooth iced coffee with vanilla or green tea flavor. And in Shanghai, crowds come to take selfies at the world's largest Starbucks roastery.

Luckin Coffee's strategy is different.

A typical store consists of a counter, a couple of coffee makers, a few bar stools and a couple of baristas. It serves coffee and coffee drinks — Americanos, lattes, Macchiatos, flat whites — along with a variety of tea drinks, light lunch fare such as salad, noodles and wraps as well as snacks.

But don't expect to eat in. Luckin mainly operates through pick-up and delivery models. (Starbucks, by contrast, didn't launch a delivery service until last September).

Orders have to be placed through Luckin's mobile app instead of third-party food delivery platforms such as Meituan and Ele.me (the Chinese equivalent of UberEats and GrubHub). Over 355 million Chinese ordered food through these apps in 2018, according to iiMedia Research, a Chinese third-party data mining and analysis organization.

Customers only need to choose a store near them, click either "pick up" or "delivery," order a coffee and pay online. For pick-up customers, a text message is sent when the coffee's done — which usually takes three minutes. Otherwise, a cup of hot, freshly made coffee is delivered in about half an hour.

Technology is at the core of Luckin Coffee's business. By collecting customer data through their app, Luckin Coffee knows who likes ordering what kind of coffee from which branch at what time, and how often the customer places an order. That enables them to serve better coffee and improve services, Luckin Coffee claims.

While technology powers Luckin Coffee, aggressive coupons and subsidies offered through the app have helped the company grab a bigger share in the Chinese coffee market, which is currently valued over $10 billion and will hit $43 billion by 2020. Luckin Coffee serves coffee for about $3.50 a cup while an average cup of coffee at Starbucks is $4.80. With a deal like buy-two-get-one-free, a cup of coffee only costs about $2.50. They also offer 44 percent off on snacks. A chicken wrap only costs a little over $1.50.

While the coupons have helped win customers over, the cash-burning spree also has made Luckin Coffee suffer great losses — $241.3 million by the end of 2018 and over $82 million in the first quarter of 2019, according to the official document to investors.

Meanwhile, how's the coffee?

Although Luckin Coffee boasts on its website that its beans are blended by a "World Barista Champion team," including Hidenori Izaki, who won the title in 2014, many Chinese coffee drinkers are not impressed.

"I bought two cups of Luckin Coffee for just 10RMB [$1.50], both are very bad," said one user on Weibo, the Chinese equivalent to Twitter, in a post this spring.

"It's so bland that I threw it into the garbage can right away," said another Weibo user.

After being bombarded by coupons shared by her friends on social media, 28-year-old Barbara Yang decided to try the newly opened Luckin Coffee branch near her office during a boring company meeting in late 2017. She downloaded the app, ordered a coffee and had it delivered to the office. Like many other first-time customers, she had her first cup for free.

"The coffee wasn't so impressive," says Yang, who lives in Hangzhou, capital city of Zhejiang province in eastern China. "The experience was pretty good though, given that their coffee is cheaper than Starbucks. They have three branches near my office and the nicely packaged coffee was delivered directly [to me]."

"I had vivid memories that the coffee and croissant I ordered were so bad," Yang recalls. "Luckin Coffee is for those who prefer quantity over quality." She and her colleagues now prefer a beverage more in line with Chinese tradition: bubble tea.

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https://www.npr.org/sections/goatsandsoda/2019/05/17/723193259/what-does-chinas-luckin-coffee-have-that-starbucks-doesnt

2019-05-17 13:07:00Z
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Here’s Why Bitcoin Plunged 10% After Rallying Past $8K - Blokt

Bitcoin’s rally past $8K has come to a halt. The world’s largest cryptocurrency (by market cap) lost about one-tenth of its value in a matter of hours earlier today and is currently trading in the lower-$7000s (Around $7,100 as of press time.)

However, as of now, it looks like the broader market sentiment remains positive despite the fall. The optimism is presumably due to the fact that the overall interest and investment in the asset class continues to expand regardless of temporary setbacks.

Furthermore, there’s a growing feeling that Bitcoin is maturing fast as an asset, which further adds to its charm as an investment choice. (Bitcoin is already the best-performing major asset so far in 2019.)

What Caused Bitcoin to Plunge to the $7000 Mark

The cryptocurrency community worldwide was dumbfounded earlier this week to see Bitcoin suddenly rallying past the $8K mark. The sudden surge from the low-$7000s started on the latter half of May 13 and it went straight past $8000 on the next day.

The price remained more or less stable (with occasional bumps along the way) for a couple of days before taking a nosedive to where it was before the rally began on May 13.

One possible factor leading to this plunge seems to be a massive sell order of 3,645 Bitcoins on Bitstamp at around 22:00 ET. The sale order could also explain the huge gap in BTC price on Bitstamp and other crypto exchanges like Coinbase.

It eventually ended up liquidating stop-loss positions in bulk, which then led to a sort of panic among many traders.

Volatility Will Reduce With Increasing Institutional Investment

Jehan Chu, an eminent industry insider and co-founder of Kenetic Capital, a trading and investment firm focused on digital assets, agrees that the latest price drop could have been “caused by a combination of profit-taking and also algorithmic trading,” CNBC reports.

He added that the volatility in Bitcoin price is unlikely to go away until institutional investors increase their stake in the asset class.

Chu noted:

“The key takeaway from the past few weeks is that with each of these surges, the overall interest and investment continues to expand around a growing core of real blockchain use and adoption.”

Worth mentioning here that Bitcoin continues to exhibit a bullish outlook on a slightly broader time-scale. For example, it has spiked just about 40% month-on-month compared to the low-$5000s it was hovering around on April 17, according to coincap.io.

Featured Images are from Shutterstock.

Blokt is a leading independent cryptocurrency news outlet that maintains the highest possible professional and ethical journalistic standards.

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https://blokt.com/news/heres-why-bitcoin-plunged-10-after-rallying-past-8k

2019-05-17 12:22:30Z
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Luckin, an Unprofitable Chinese Rival to Starbucks, Seeks U.S. Money - The New York Times

SHANGHAI — Here’s one way to compete with Starbucks in coffee: Pay your customers.

Luckin Coffee, an unprofitable start-up offering big giveaways and aggressive subsidies, burst less than two years ago into a Chinese coffee scene long dominated by Starbucks. Helped by a smartphone app that lets users order coffee for delivery with a few finger taps, it has gained nearly 17 million customers and built 2,370 stores.

Now it plans to sell shares in the United States, with trading set to begin on Friday. If successful, the unprofitable and still-untested company could be worth as much as $4 billion.

The question, for investors, is whether Luckin’s fast-growth, cash-burning model still works in an era of diminished expectations for once-hot technology companies. Just last week, Uber conducted an ultimately disappointing initial public offering.

“You need to take some time for these companies to become profitable,” Ringo Choi, managing partner for China at EY, the consulting firm. “Not all will become the next Amazon and not all of them have the fundamentals to sustain them.”

Luckin offers proof that China’s weakened tech start-up scene still has some of its old pop.

In recent years, new Chinese companies have burst into prominence, raising and burning money at a pace that would make Silicon Valley blush. Bike-sharing start-ups popped up overnight, flooding cities with tens of millions of rainbow-colored dockless bikes. A boom in online food and retail delivery has left the streets of Beijing and Shanghai cluttered with delivery men in bumblebee yellow or blue helmets and suits, the colors of the two most dominant delivery companies.

Many of those companies have since scaled back, and some have flamed out, as China’s economy slows and financing for tech firms has begun to dry up.

Luckin hopes to buck that trend and challenge Starbucks as the reigning king of a tea-drinking country that only relatively recently discovered the joys of java. Starbucks, the Seattle-based coffee chain, holds just over half of the Chinese coffee and specialty tea market, according to Euromonitor International, a market research provider. By the end of 2018, Luckin held just over 2 percent of the market, according to Euromonitor estimates.

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Delivering Luckin Coffee in Beijing. To compete with Starbucks in China, Luckin has focused on offering delivery and steep customer discounts.CreditWang Zhao/Agence France-Presse — Getty Images

But the growth opportunities are huge. In the span of just four years, China’s specialty tea and coffee market has grown from $2.7 billion in revenues to $4.8 billion, Euromonitor says. The market is still diffuse, as well. The next biggest competitor to Starbucks, the McDonald’s owned McCafe, has just 5 percent of the market.

Luckin has grown rapidly since its founding in late 2017. It was begun by the entrepreneur Jenny Qian Zhiya and has been backed by several investment firms in China, the United States and Singapore, including BlackRock. It plans to increase its storefronts to have the largest coffee chain network in China by the end of this year. That would catapult it past Starbucks, which has 3,600 stores in China.

Sustaining that growth depends in large part on whether Luckin can keep its customers. On social media, some people rave about its cheap and convenient coffee. They praise it for coming up with specialty drinks that appeal to the varied tastes of Chinese consumers, like a concoction it calls guava cheese ruby tea.

Others deride its taste and say its coffee is just an overpriced version of convenience store sludge.

Several times a week, Liu Zhiyan, 34, likes to walk over to the Luckin near her work to get a jolt of caffeine. “Luckin is not as good as Starbucks, the flavor is not so rich,” Ms. Liu said. She used to drink Starbucks once a week but has found herself buying coffee more frequently because Luckin’s coffees are cheaper.

“The price is low,” Ms. Liu said. “You get what you pay for.”

A spokesman for Luckin declined to comment, citing a quiet period before the initial public offering on the Nasdaq Stock Market.

Luckin coffee is priced similarly to Starbucks coffee but then offers steep discounts. Most of its espresso-based coffees cost between $3.50 and $4, but customers rarely pay the full price because of daily discounts of 50 percent or more. Luckin gives away its first coffee to a new subscriber to its app. A friend referral to the app gets customers another free coffee.

Luckin also lures coffee drinkers with big promotions, resulting in huge sums of money going back into the pockets of customers.

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If Luckin’s plan to sell shares in the United States is successful, the unprofitable and still-untested company could be worth as much as $4 billion.CreditRoman Pilipey/EPA, via Shutterstock

One current promotion encourages customers to buy seven or more items in a week, either individually or within a group, putting them into a pool of similar customers. At the end of the week everyone in the pool will get a cut of 5 million renminbi, or about $723,000. Each participant in last week’s pool took home $4, the company said. Over the 10 week program, Luckin tells its customers, it will give them back more than $7 million.

Those offers would eat into Luckin’s profits, if it had any. Money spent on growth led the company to record a net loss of $475 million in 2018. So far this year, the company has racked up losses of $85 million.

Though they both sell coffee, Luckin and Starbucks approach the China market in different ways. Luckin depends heavily on takeout and delivery, a popular option in a country where people like to order meals on their smartphones. Luckin also runs small stores where customers can pick up their coffee, check out the latest discounts or learn about other offers.

Starbucks, by contrast, usually offers roomy stores known as a comfortable place to hang out, a refuge from prying parents or a crowded family apartment. Its green-and-white logo holds an aura of affluence in China, and the company has won intense loyalty among many people there.

“I have never gone to Luckin,” said Zhang Sheng, a recent college graduate who drinks coffee three times a week. “I am loyal to Starbucks because they have good loyalty program.”

Starbucks has its own expansion plans, with a goal of nearly doubling its China stories by 2022. Still, in a nod last summer to its new competitor, Starbucks announced a partnership with e-commerce giant Alibaba to provide delivery of its coffee through Alibaba’s subsidiary, Ele.me. Representatives for Starbucks did not respond to requests for comment.

The next big question for Luckin is how it can start making money. It is unclear whether customers who like Luckin’s discounted coffee will be willing to fork over the full price once those discounts are lifted.

For Owen Sun, a 31 year old who works in product placement for a luxury company, Luckin provides fast coffee when he is too busy to leave work. But he is a fickle consumer, and on a recent day was waiting in a long line at a Shanghai coffee shop called Manner.

“To be honest, Starbucks does a better job in packaging the coffee,” Mr. Sun said. “If the price of Luckin coffee went to $4 with no coupons, I might buy Starbucks.”

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https://www.nytimes.com/2019/05/17/business/luckin-ipo-china-starbucks.html

2019-05-17 09:30:20Z
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Analysis | Amazon-Deliveroo Alliance Would Eat Uber For Dinner - Washington Post

Amazon.com Inc. and British food delivery startup Deliveroo make in some ways cosier bedfellows than Uber Technologies Inc. does with its own competing service, Uber Eats.

The U.S. e-commerce giant led a $575 million financing round in London-based Deliveroo on Friday. One can’t help but wonder whether the investment is an amuse-bouche for a broader tie-up, a chance for Amazon to get a detailed look under the hood of Deliveroo’s operations before evaluating an acquisition. There are a lot of reasons why that would make sense.

There’s the obvious one: Amazon wants a food delivery service. It shuttered the London operations of Amazon Restaurants last year amid a fierce price war with Deliveroo, Uber Eats and Just Eat Plc. But there’s merit in maintaining a presence in app-based food delivery services. Platforms in Latin America and India are already extending into products such as pharmaceuticals and groceries, and that approach could spread to other regions. That poses a threat to Amazon, not least because users tend to access food delivery apps more regularly, according to Chris Caulkin, a venture capital investor with General Atlantic in London.

The Deliveroo network of couriers must also appeal to Amazon. If you can ensure that the people making your deliveries have little or no downtime, they can make more money and are therefore less likely to go and work for a rival, since they are paid for each delivery they complete. If they are able to transport both goods from Amazon Prime Now, which promises deliveries within two hours, and Deliveroo meals, then the likelihood of downtime is reduced.

Deliveroo’s push into so-called “dark kitchens” might also help with Amazon’s logistics. These are facilities which aren’t attached to a physical restaurant, often housed in shipping containers on affordable sites dotted around London. While the model remains unproven, the idea is to reach more customers without the pricey overheads that come with an actual restaurant. Those locations could also act as last-mile fulfilment centers for Amazon, and Deliveroo plans to use many of the proceeds from the latest fundraising to open new sites.

The brand cachet of Deliveroo, which tries to focus on convenience rather than fast food, meanwhile aligns well with Amazon’s goals: it appeals to a similar customer base as Whole Foods, the high-end health food store that Amazon acquired in 2017.

The fresh influx of cash means that European food delivery price wars are likely to continue unabated, which is reflected in the share-price drop of rival services.

The key difference between Amazon/Deliveroo and Uber/Uber Eats is that, on the whole, the people who deliver food for Uber Eats are not the same as the ones who ferry customers around for Uber. Though there is of course technological crossover in the systems that manage the two products, the operational crossover is more limited. That exposes Uber to high driver and deliverer churn, where they are more likely to jump to a rival that can guarantee more income.

Nonetheless, it’s sensible for Amazon to start with a venture capital investment in Deliveroo rather than an outright takeover, as it was reported that the two firms investigated last year. There’s plenty of skepticism, not least from me, about how profitable food delivery can really be, and whether it can sustain its growth. Deliveroo made a loss of 184 million pounds ($234.8 million) on revenue of 277 million pounds in 2017, the most recent year for which data is available. The business remains unproven, and concern about the path to profitability was a factor in Uber’s disappointing initial public offering this month.

An Amazon/Deliveroo tieup could ease concerns about profitability. But it’s also wise for the Seattle-based firm to test how viable it would be to team up before committing to an acquisition.

To contact the author of this story: Alex Webb at awebb25@bloomberg.net

To contact the editor responsible for this story: Jennifer Ryan at jryan13@bloomberg.net

This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.

Alex Webb is a Bloomberg Opinion columnist covering Europe’s technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.

©2019 Bloomberg L.P.

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https://www.washingtonpost.com/business/amazon-deliveroo-alliance-would-eat-uber-for-dinner/2019/05/17/d13953fa-7893-11e9-a7bf-c8a43b84ee31_story.html

2019-05-17 11:06:46Z
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Amazon targets Uber Eats with Deliveroo investment - The Verge

Amazon lead a $575 million funding round in the UK-based food delivery company Deliveroo, continuing its efforts to diversify into the takeaway market. In a press release Deliveroo said it would use the money to expand its UK engineering team, expand its delivery reach, and continue to develop new products such as its delivery-only kitchens. Deliveroo currently operates in 500 towns and cities across 14 countries and territories.

The investment will intensify Amazon’s competition with rival tech company Uber and its Uber Eats service. The Financial Times reported last year that Uber was interested in buying Deliveroo outright, but that talks stalled after the two companies failed to agree on a valuation. Sky News reports that Amazon’s investment in Deliveroo follows two unsuccessful approaches to buy Deliveroo outright.

This isn’t Amazon’s first foray into the food delivery market. It launched its own takeaway service, Amazon Restaurants, in the US back in 2015, and expanded it to the UK the following year. Just over two years later, however, it shut down the service in the face of stiff competition from the likes of Uber Eats and Deliveroo.

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https://www.theverge.com/2019/5/17/18628974/amazon-deliveroo-investment-575-million-uber-eats-uk

2019-05-17 08:10:39Z
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