Grub Investor Letter after their recent profit warning (and -43% fall in the shares) is worth a read.
We have previously pointed out how alternative data was suggesting competitors were beating Grub.
The letter points out how the online takeout market is getting a lot more competitive.
“Furthermore, we believe online diners are becoming more promiscuous … our newer diners are increasingly coming to us already having ordered on a competing online platform, and our existing diners are increasingly ordering from multiple platforms … the easy wins in the market are disappearing a little more quickly than we thought.”
On competition – “We continue to feel very good about our competitive position in the market. Relative to Apple, the publicly available data shows that we are adding roughly twice as many subscribers per month as they are. Additionally, we believe that our monthly engagement is roughly 2x as high and our churn is at half the rate. Elsewhere, our estimates imply that we continue to add more users on an absolute basis than Amazon. Our data also suggests that Amazon’s user base skews significantly more to ‘Ad-Supported’ than ‘Premium’, and that average engagement on our platform is approximately 3x.“
The press are making another push to ban cigarette filters on the grounds they are toxic for the environment and aren’t safer.
Essentra (ESNT.L) is a leading independent provider of these filters.
This scientific review article makes sober reading.
Evidence is presented that, not only are discarded filters not biodegradable, toxic chemicals actually leak from them such as arsenic, nicotine, PAHs, and heavy metals such as cadmium and lead.
They are not safer for smokers either – The National Cancer Institute’s comprehensive review of light and low-tar cigarettes concluded that “Epidemiological and other scientific evidence, including patterns of mortality from smoking-caused diseases, does not indicate a benefit to public health from changes in cigarette design and manufacturing over the last 50 years.”
“The yellow discolouration was an innovation deliberately created to reassure smokers that the filter was working, and comes from a change in pH rather than an accumulation of tar.”
Sometimes one finds lessons for business tactics in unlikely places.
This is a brilliant article on the drug trade in the UK.
“Mohammed Qasim, a research fellow at Leeds Beckett University who studies drug dealers, described the Albanian business approach as “fantastic”, adding: “If they were on Dragon’s Den with this model, all the dragons would be giving them money.””
