Happy July 1st! Six months of 2020 has officially flown past, and what a year it has been.
Let’s get into it.
1. India bans TikTok and other Chinese apps
The Indian government is banning 59 Chinese apps over “national security” concerns, including TikTok.
This is a significant blow to Bytedance’s TikTok, which counts India as its biggest overseas market. Community and Video Call apps from Xiaomi, which is the top smartphone vendor in India & two of Alibaba Group’s apps have also been banned.
Tarun Pathak, an analyst at research firm Counterpoint, said the order would impact roughly one in three smartphone users in India.
It’s unclear what exactly the “ban” means and how mobile operating system makers and internet service providers are expected to comply. It’s a surprising move from Asia’s biggest mobile market, and will surely affect a lot of big Chinese firms going forward.
2. Lululemon buys Mirror, an “at-home” startup for $500 million
Athleisure brand Lululemon is branching out beyond yoga pants and into home-workout tech, a move that aims to capitalize on the pandemic fueled home workout trends.
Mirror sells a $1,500 tech-enabled mirror with a camera and speakers so customers can participate in live fitness classes at home. It launched in September 2018 and is reportedly on track to make $100 million in sales within this year.
Lululemon actually bought a minority stake in Mirror in October 2019.
Lululemon most likely sees Mirror as a way to diversify and boost revenue sources while also providing another avenue to market its products, Mirror instructors will wear Lululemon apparel.
The appeal of owning Mirror grew more attractive to Lululemon CEO Calvin McDonald as customers stopped going to stores and gyms amid the pandemic, and shifting to virtual workouts and ecommerce.
“The opportunity of Covid is that it’s brought the future closer to the present,” says McDonald.
This means that the brand is bullish on post pandemic workouts shifting to a more online or at least a hybrid model, even after recovery. There’s a long road ahead for the US market, as infections still continue to grow across the country.
3. Starting today, international travellers will start flying into Thailand
Starting today, select travellers will be able to fly into Thailand, according to a list of criteria from the Civil Aviation Authority.
Officials expanded the list of foreigners who may enter Thailand, which includes expats with Thai families, business people, medical tourists and those with work permits or residency in Thailand, to also include their families.
The incoming travellers will be split into 2 groups; Normal Track and Fast Track. Those in the first group are long stays and will have to enter state quarantine for 14 days, as well as pay for their own facilities.
The second group are short term business tourists, and can only be from the select countries of Japan, South Korea, China, Singapore & Hong Kong and have to be under rigorous testing.
4. Uber makes offer to buy Postmates after Grubhub deal fell through
Uber is still trying to strengthen its food delivery business, and apparently its now eyeing US based food delivery startup Postmates. Uber is discussing acquiring the company for about $2.6 billion
According to the New York Times, the talks are still going on and any potential for a deal could fall apart.
A tie-up could bolster Uber’s delivery unit, Uber Eats, which will help boost the core business which has been continuously hit the pandemic. Food delivery is not profitable, but demand has soared during quarantine.
The deal would also be a win for 9 year old Postmates, which has been struggling with bigger competitors such as DoorDash and Grubhub. Last month, Uber’s potential acquisition of Grubhub fell through when it was bought over by European based Just Eat Takeaway.
Postmates actually filed to go public last year, but the deal fell through.
The category has been ripe for consolidation, food delivery is an expensive business and businesses ultimately spend millions on marketing or buying each other out to maintain a stake in the market.