Uber and Lyft Drivers Gaming the Business

I loved this story so much I captured it weeks ago and held on to it until I could get it written up here.

To level-set for the audience, UBER and Lyft are essentially taxi replacement services that enable mobile devices to be the call center for service.  The fees for transportation vary dependent on availability of supply versus demand (drivers and cars for passengers).  Simple right?

Economists love the idea because finite resources fit naturally in to a supply & demand scenario for pricing.  Long articles have been written about price-fixing in the New York City housing scene, with good reason.  Passengers don't really care for it because they don't know what they are paying for the service from moment to moment.  A ride home from the airport might cost $50 or $100 depending.  Meanwhile traditional taxi drivers hate it and the new drivers are complaining they don't make enough money from the gig economy.  Who wins in all this?  Uber and Lyft certainly.

Well the drivers have figured out how to game the system.

Here is a snippet from the piece:

Though much of the modern internet is premised on the idea that it brings people together, capitalism — not humanity or even a recognizable morality — powers technology companies.

But since technology now powers so many aspects of civic life, we must infuse human rights principles and accountability into how these platforms operate. In the absence of clear pathways of accountability in which workers concerns are addressed, we can expect to see continuous uprisings and actions organized through loosely connected networks of solidarity — and some of them will even use the power of the platforms against their owners.

Here is the whole story:

https://www.nbcnews.com/think/opinion/uber-lyft-drivers-are-using-companies-algorithms-against-them-ncna1009026

Welcome to the 21st Century Union of Workers.  :-)

Happy Reading,

J.W. Gant

BRotD - Entry 0260 Strategy of Apple Pay

Best Reading of the Day

Mobile payments has been something very close to my professional activities for many years now. I've competed directly against Apple and their Apple Pay product.  Where are they headed now?

Here is a snippet from the piece:

There’s a reason everyone seems to be getting into mobile payments. Thanks to increasing smartphone usage and a push for faster, simpler, more secure financial transactions, mobile payments could become a $3.4 trillion industry by 2022. In the U.S. last year, eMarketer estimated it to be a $49 billion market already.

The consumer options are sundry: There’s Apple Pay, Samsung Pay, and Google Pay; PayPal, Venmo, Square, and Square Cash; bank-backed alternatives like Zelle and Chase Pay; and in-app options through things like WhatsApp or Facebook Messenger. As consumers abandon cash, checks, and even credit cards, everyone is jumping into mobile payments—but perhaps none with the zeal of Apple.

Here is the full story:

https://slate.com/technology/2018/07/apple-pay-can-apple-beat-paypal-venmo-in-mobile-payments-war.html

What do retailers think?

From the start the response was mixed.  Some feel any place their customer is at they want to be as well.  Another, however, stated their mix of credit to debit was such that if mobile pay, primarily funded with credit cards, caused that mix to flip it would be billions of dollars a year lost.  That is big time incentive to work in the space right (they are)?

This is one space with entrenched, well funded and organized interests, and tons of money at stake.  Apple won't see the players in this space fold like the music industry did.  I see this space continuing to be hyper-competitive for the foreseeable future.

Happy Reading,

J.W. Gant

Target's Profits Down

Target is in a bit of a hard spot.

Amazon on one side.

Walmart on the other.

A changing industry heavy on digital technology, ecommerce, and changes in the store experience.

Not everyone is going to get it right and the legacy merchants are going to have to craft a new path forward.  Target's efforts resulted in a problem in its profit as it missed efforts.

Great analysis and an interesting look in to what is happening in retail in the United States today:

https://www.bloomberg.com/news/articles/2018-03-06/target-s-turnaround-plan-weighs-on-profit-as-it-chases-amazon

Happy Reading,

J.W. Gant

Improving Retail Mobile Apps

Continuing the discussion on retail mobile apps.  I've been in and around this game for many years.  What I see is a new kind of "Tier 1" retailer. 

There's the classic Tier 1, but then there is a superpower level.  That retailer has it all: great retail stores, great mobile app, great online shopping.  Which ones qualify?  Walmart, Amazon, Target, Starbucks .... anyone else?

Here is the story:

https://www.clickz.com/retailers-improve-app-experience/207018/

Here is a snippet from the piece:

Most retail apps leave something to be desired, according to Jim Cusson, President at retail marketing agency Theory House.

“I think of that quote from Field of Dreams: ‘If you build it, they will come,’” he says. “A few years ago, there was this rush to build apps and everyone wanted one, whether it had a true purpose or not. You see a lot of injured soldiers on the battlefield now because companies have invested money in an app that’s obsolete.”

Happy Reading,

J.W. Gant

TargetPay is Here - Wallet

Following years of investment in mobile wallet through the now sold off MCX and the CurrentC mobile payments solution, and well after Walmart enacted its Walmart Pay solution Target has theirs in place. They call it simple "Wallet".

This is the beginning of furthering a huge divide between the top of the Tier 1 retailers and everyone else.  We may need to create a new designation like "Super Power" when mere "Major Power" was no longer enough.

The biggest merchants will have a strong physical presence, eCommerce presence, vertically integrated merchandising, strong mobile, and strong mobile wallet capability. Think Amazon and Walmart.  Now Target.

Everyone else?  Well, this speaks to the huge need for a white label solution for all of those merchants not big enough to handle all of this on their own.

Anyone?

Here is the story:

http://www.businessinsider.com/targets-mobile-wallet-is-finally-here-2017-12

Here is a snippet from the piece:

Target launched its long-anticipated mobile wallet for in-store payments on Monday, according to TechCrunch. The product, which will be barcode-based and housed in the existing Target mobile app, is known as Wallet. Two key features distinguish Wallet and could help optimize it for use:

The wallet is only available to store cardholders.

...

That’s especially true because it expands upon existing app functionality.

...

Happy Reading,

J.W. Gant

Which Retailers are Mobile?

The advent of the smart phone has done two things that require retailers to respond: taken away some traffic from older internet sources, and opened a new type of opportunity for mobile interactions.

Initial offerings were essentially to offer the same online web experience but in mobile.  Going way back to the introduction of the first iPhone one of the enormous selling points was the ability to view the full New York Times website on your phone.

Wow!

Quickly the limitations of that experience became clear.  A tiny screen you hold in your hand requires a different approach from the interactions one has with a full PC screen.

A few retailers really really get that.  Here is a story on the best experiences:

http://www.mytotalretail.com/article/mobile-cx-study-gives-best-buy-home-depot-and-target-top-marks/

Here is a snippet from that piece:

As consumers spend more time shopping on smartphones, their expectations for mobile experiences have soared. With mobile interactions influencing $1.05 trillion in offline sales in 2016, the successful retailers of 2017 will be those that offer consumers mobile sites with a frictionless path to purchase that also integrates into omnichannel shopping experiences.

Which omnichannel retailers are doing it right and setting the bar the highest for merchants looking to deliver a seamless mobile customer experience (CX)?

Happy Reading,

J.W. Gant

Target to Incorporate Cartwheel in to their Core App

Bye bye Cartwheel.

If you aren't familiar with it, and shop at Target, you should be.  This great little experiment really opened up Target as a leader in digital interactions with customers, especially in-store.  I've also spent some time with the Cartwheel team and can say they are passionate about what they do, and do it well.

Well enough it is time to pull it up to the mothership.

Target is pulling Cartwheel in to the main Target App and will sunset Cartwheel as a stand-alone.  This was inevitable if Cartwheel were a success so I'm sure this is bitter sweet for the team.  Better for the average Target customer, to be sure.

Read on:

https://techcrunch.com/2017/06/09/target-and-cartwheel-apps-to-merge-starting-this-summer-mobile-payments-and-improved-maps-to-follow/

Happy Reading,

J.W. Gant

Wayfair Crushes Short Sellers

As an old hand in the investment game I love a lede that says short sellers got crushed.

Love it!

The little eCommerce company that could keeps on doing.  Not so little any more.  These companies are the future of eCommerce.  Amazon is huge and getting bigger.  A few big retailers will be able to play the game too (Walmart).  The rest requires strong understanding of a particular niche.

Here is a snippet from the news:

Wayfair shares spiked Tuesday after the online furniture retailer reported better-than-expected first-quarter results.

The stock was up 23 percent as of midday Tuesday. Wayfair is one of the market's best performers this year with its shares up 79 percent year to date versus the S&P 500's 7 percent return.

Here is the full story:

http://www.cnbc.com/2017/05/09/short-sellers-annihilated-after-wayfair-surges-more-than-20-percent.html

Happy Reading,

J.W. Gant

BRotD - Entry 0245 Mobile Payments Stuck?

Best Reading of the Day

Seems like I've been studying, following, and involved in mobile payments forever and haven't see the change we continue to expect.  Is that a correct assessment?  What is the current state of things?  What should we expect tomorrow.

Excellent article by the folks over at Payments Source:

http://www.paymentssource.com/news/technology/mobile-payments-09-why-is-the-tech-forever-stuck-in-beta-3024617-1.html

Here is a snippet from the piece:

Mobile technology is radically changing the way people hail taxis, book lodging, consume entertainment and find prospective dates.

So why hasn't the same kind of revolution taken hold when it comes to how people spend money?

Years of efforts by banks, payment networks, tech startups, wireless networks and retailers have failed to a produce a mobile wallet app that's broadly used and accepted. This despite near certainty among the technology and pundit class that the much-anticipated migration to mobile payments is inevitable.

There's no simple answer to why mobile payments keep failing to gain traction in the market, but a close look at what's gone wrong so far could provide clues to what — if anything — could provide a decisive breakthrough.

Happy Reading,

J.W. Gant

Mobile Wallets to Consolidate

Right now, with the failed launch of CurrentC by MCX, retailers are rushing to roll out their own mobile wallet within their store brand app.  Baskin Robbins just launched, as a part of Dunkin Brands.  Walmart has Walmart Pay in its app, etc.

Eventually a more consolidated approach will take hold.  I have no doubt of this, though I believe some retailers such as Starbucks will be able to hold on to their direct relationship with their customers.

Other experts see the same thing coming.  Here is a snippet :

Mobile wallets are slowly gaining adoption, but retailers’ offerings are currently the winners because they can be easily integrated with loyalty programs, providing an incentive to use them.

Many experts believe that mobile wallets will continue to grow, and by the end of the decade, be universally adopted. Retailers such as Dunkin’ Donuts and Starbucks are leading the charge in terms of brand-led mobile wallets and are seeing significant adoption rates while platform-led services such as Apple Pay and Android Pay mobile wallets are lacking in comparison, but will likely see more users in the coming years.

Read the whole story here:

http://www.mobilecommercedaily.com/mobile-wallets-to-see-universal-adoption-by-end-of-decade

Happy Reading,

J.W. Gant

MCX's CurrentC Delayed Indefinitely and ChasePay Delayed

Mobile payments news.

After months of silence, with no major news this year until now, MCX has made some news.  Their mobile wallet capability, live now in Columbus, OH, will not be rolled out nationally any time soon.

Read more:

http://www.digitaltransactions.net/news/story/After-Eight-Months-of-Testing_-MCX-Postpones-CurrentC-Rollout_-Lays-off-30-Staffers

Here is a snippet from the piece:

After eight months of experimentation in Columbus, Ohio, Merchant Customer Exchange LLC on Monday issued a statement from chief executive Brian Mooney announcing it is putting off a national rollout of its CurrentC mobile-payments service to an unspecified date. Mooney added that the Boston-based company, formed in 2012 by many of the country’s biggest retailers, also has laid off 30 staffers in light of a need for “fewer resources.”

In other, somewhat related news, ChasePay is delayed:

http://www.digitaltransactions.net/news/story/Chase-Pay-Delays-Launch-to-Fourth-Quarter_-Amazon-And-Google-Talk-Technology

Here is a snippet from the piece:

JPMorgan Chase & Co.’s Chase Pay mobile-payment service, announced in October, will have a phased-in launch in the fourth quarter, according to Kim Fitzsimmons, head of global e-commerce and large omnichannel solutions at Chase Commerce Solutions.

Looks like MCX wants to get out of the mobile app business and act as a switch between retailers and financial institutions.

Happy Reading,

J.W. Gant

BRotD - Entry 0243 Mobile Commerce Changing Major Retailers

Best Reading of the Day

Great story over on Forbes.com:

http://www.forbes.com/sites/barbarathau/2016/04/30/how-mobile-commerce-is-changing-the-face-of-the-nations-biggest-retailers-from-wal-mart-to-macys/#1d826c0b668d

Here is a snippet from the piece:

It would not be hyperbole to call mobile devices, namely smartphones, the most disruptive lifestyle shift birthed by the Internet revolution.

And that disruption is carrying over into how consumers shop for goods.

The still-unfolding changes in consumers’ mobile shopping behavior is forcing established retailers to think on their feet and divert capital spending from stores to mobile — and quickly.

Bloomberg Intelligence senior retail analyst Poonan Goyal shared with Forbes how legacy retailers Macy’s, J.C. Penney, Kohl’s, Wal-Mart and Target TGT -0.17% are leading the mobile charge.

Happy Reading,

J.W. Gant

Mobile Wallets at POS and Apple Pay

Business Insider has a great little article detailing some data from a new report on retailers and their mobile wallets.

Just to list a few for those who aren't keeping up, mobile wallets include but are not limited to: Apple Pay, Android Pay, Samsung Pay, PayPal, CurrentC by MCX, Walmart Pay and more.

Read on:

http://www.businessinsider.com/apple-pay-leads-samsung-pay-android-pay-google-wallet-2016-3

Here is a snippet from the piece:

Apple Pay has a comfortable lead in the mobile wallets market.

A new report from Piper Jaffray cited by Investors Business Daily reveals that retailers largely prefer Apple Pay over its major competitors Samsung Pay, Android Pay, and Google Wallet.

The report found that 44% of U.S. retailers either currently are using or have expressed interest in installing mobile wallet readers in their brick-and-mortar stores.

Happy Reading,

J.W. Gant

Target Growing Again

Target is seeing growth in its online or omnichannel services as a driver of overall growth with same store sales seeing steady increases.

Read more here:

http://www.chainstoreage.com/article/target-winning-back-shoppers-especially-online

The key reason this is relevant is the question of viability for brick & mortar stores.  If the Amazons of the world are truly the future, in entirety, then traditional retailers have no place in our shopping future.  That doesn't appear to be the case with significant investment in digital capabilities.

Happy Reading,

J.W. Gant

Target Pay? Yeap

The news in mobile payments continues to flow like a river this holiday season.  The latest comes from Target:

http://www.mobilecommercedaily.com/target-eyes-own-mobile-wallet-as-payments-habits-begin-to-change

Here is a snippet from the piece:

Target is reportedly working on its own mobile wallet, borrowing a page from Walmart as the need to address consumers’ growing demand for smartphone services takes on greater urgency.

It seems to be perfectly clear the major retailers are going to take any steps necessary to ensure a very different future in payments through mobile.

Happy Reading,

J.W. Gant

Target Personalization Kicks Up Sales

Target is acting as a digital leader blazing a trail for others to follow and establishing itself for future success.  Their latest is an in-house personalization engine that is having a significant impact on redemption in the Cartwheel app.

http://www.mobilecommercedaily.com/targets-cartwheel-enhances-personalization-and-sees-10pc-more-offers-downloaded

Here is a snippet from the story:

Target recently introduced personalized recommendations to Cartwheel, resulting in a more-than 10-percent increase in the number of offers downloaded per user.

This is just one of the ways that the merchant continues to fine-tune the Cartwheel application, which manages offers and lets users see what their friends are saving on.

Happy Reading,

J.W. Gant

More About Target's Mobile Beacons

Great little story by the folks at Mobile Commerce Daily.

http://www.mobilecommercedaily.com/target-innovates-in-store-beacon-marketing-with-newsfeed-like-content-stream

Here is a snippet from the piece:

One of the more interesting aspects of the program is the Target Run page. Once a shopper has downloaded the Target app and enabled Bluetooth in the settings of an iPhone, product recommendations related to the department they are located in may pop up as a push notification or in-app update on their phone.

This same information can also be found on the new Target Run page, which operates similar to a social media site’s newsfeed, with the latest content – meaning product recommendations or coupons based on the user’s location – being added on the top of the page.

Happy Reading,

J.W. Gant

Target Tests Mobile Beacons

Wow!

The age of the beacon is upon us (forget the whole idea of the "year of the beacon" we are way beyond that).  I've been waiting for one of the really big retailers (other than Macy's that is doing a TON in mobile) to take on beacons.

Here we go.

http://www.chainstoreage.com/article/target-testing-beacons-50-stores-more-stores-features-come

Here is a snippet from the piece:

Target Corp. has made its first major foray into beacon technology as the retailer continues to look for ways to enhance the in-store shopping experience with digital tools.

The retailer announced it is testing beacons at 50 stores nationwide, including locations in Chicago, Denver, Minneapolis, New York City, Pittsburgh, Portland, San Francisco and Seattle. The company said it plans to expand the service to more stores later this year.

Target joins Macy's, GameStop, Lord & Taylor, real estate giant Simon and others that are experimenting with beacons.

Given the Target app already has Apple Watch interactions I expect it will be just a short jump to personalized notifications tapped on your wrist as you walk through Target.  Cool!

Happy Reading,

J.W. Gant

Target Loses Key Mobile Executive

I find this story interesting for all of the other plot lines it includes rather than for the core piece of news.  If you want to read a bit about corporate bureaucracy and how a start-up style approach can be successful at an established company, read on.  Last I heard the active users of the Cartwheel app numbered in the many millions.  I've met that team and there are great folks working on that app for Target. I've never met Mr. Wizemann personally but the work he did at Target lives on.

Here is the story:

http://www.startribune.com/target-loses-a-key-digital-executive-behind-cartwheel-app/319648541/

Here is a snippet from that piece:

Wizemann came to Target a few years ago from the tech start-up world where he founded ShopIgniter, a social networking-related retail firm that was sold last year. He was initially brought in as a consultant to help salvage Cartwheel when it was still in the project stage.

As internal frustrations mounted that Cartwheel might never see the light of day under Target’s layers of bureaucracy and risk-adverse culture, Wizemann got buy-in from Target’s leaders to run the project more like a start-up. He cut the team working on it from 200 to 50 and pushed the retailer to let the team put it out in a beta form, knowing it wouldn’t be perfect and would need tweaks.

When I read that I see a very good execution plan for any company to get in to mobile.

Happy Reading,

J.W. Gant

BRotD - Entry 0224 Retailers Crushing Pure eCommerce

Best Reading of the Day

This excellent little story over on Mobile Commerce Daily speaks the same language I've been using around here for a year or more.  The internet based companies of the 90's have had their day but retailers, with the help of mobile, are striking back.

http://www.mobilecommercedaily.com/traditional-retailers-crush-ecommerce-giants-in-omnichannel-shopping

Here is a snippet from that piece:

Ecommerce retailers such as Amazon and eBay are doubling down on mobile-driven omnichannel shopping experiences, but struggle to deliver the same level of convenience that traditional retailers can harness and which smartphone-equipped shoppers are demanding.

For years, traditional retailers took a drubbing at the hands of ecommerce pure-plays as online shopping grew, providing efficiencies that helped keep prices low. However, with the growth in mobile, the scales are evening out – and even tipping back in favor of retailers – as shopper interest grows in being able to shop anywhere, anytime, from a device of choice.

...

“Retailers like Best Buy and Walmart are dramatically reducing their shipping costs by shipping orders from stores, while Amazon is seeing shipping expenses double every year,” Razorfish’s Mr. Goldberg said. “Best Buy went from its average delivery being a day slower than Amazon, to a day faster when it begun shipping from stores.

I believe we will continue to see a blurring of the lines between traditional brick & mortar stores and pure eCommerce players.  The amazon companies of the world will open stores and the traditional retailers will create an online presence with shipping. That will be the new paradigm as customers sort out what they prefer to buy in what way, online or in person.

Happy Reading,

J.W. Gant