Deliveroo Delays Margin Growth Goal Amid Slow Consumer Recovery

/in /tarafından

Deliveroo has postponed its margin growth target after a slower-than-expected recovery in consumer confidence, causing a drop in shares that erased the gains made over the past year. Despite reporting its first statutory profit and positive cash flow, the meal delivery company revised its forecast for margin expansion.

For the year, Deliveroo posted a profit of £2.9 million ($3.8 million), a turnaround from a loss of £31.8 million in 2023. Its core earnings reached the top end of guidance, amounting to £129.6 million. However, CEO Will Shu admitted that the consumer environment had not recovered as quickly as expected. In 2023, Shu had set a target to achieve a 4% core earnings margin by 2026, with the possibility of further upside. But now, Deliveroo expects margin growth to pick up starting in 2026, with the 4% target set for the medium term.

“The consumer market since our capital markets event hasn’t been the smoothest,” Shu noted, reflecting the ongoing challenges. As a result, shares in Deliveroo fell 9%, wiping out the gains made over the past year. Jefferies analysts called the new timeline a “blemish,” though they pointed out that the consensus forecast had already been lagging behind the original timeline.

Despite the setback in margin growth, Deliveroo saw growth in gross transaction value (GTV), a key performance metric, which picked up in the second half of 2024. Order growth in the UK and Ireland, Deliveroo’s largest market, also accelerated each quarter. For Q1 2025, Shu expressed confidence, stating that trading had been strong, with no significant changes compared to the latter half of 2024.

To continue growing, Deliveroo will focus on value, its tiered membership programs, and other operational efficiencies. The company also announced its exit from Hong Kong, selling some of its assets to Delivery Hero’s foodpanda after nine years of operations in the region. Shu explained that Hong Kong’s market was particularly price-sensitive, which influenced the decision to exit. This departure will leave Deliveroo operating in seven international markets, in addition to its presence in Britain and Ireland.

Tesla Collaborates with Baidu to Improve Assisted Driving in China

/in /tarafından

Tesla is working with Baidu, a Chinese tech giant, to enhance the performance of its advanced driving assistance system (ADAS) in China, according to two sources familiar with the matter. This collaboration follows criticism from customers over a recent update to Tesla’s Full Self-Driving (FSD) Version 13 software, which failed to meet expectations.

Baidu has sent a team of engineers from its mapping division to Tesla’s Beijing office to improve the integration of Baidu’s navigation maps with Tesla’s FSD V13. The goal is to refine the system’s understanding of Chinese roads, including lane markings and traffic light signals, making it more accurate and up-to-date. The exact number of engineers or the financial terms of the collaboration were not disclosed.

This partnership comes as Tesla faces challenges with data and regulatory restrictions imposed by both Beijing and Washington, hindering its ability to bring its full Autopilot and FSD systems to its second-largest market. Unlike in the U.S., where Tesla trains its AI with data from its own fleet, it cannot do so in China due to local data laws. This has led to increasing pressure from competitors like BYD and Xpeng, which offer similar technology without charging extra fees.

The updated software, released in February, aimed to add urban navigation features but faced backlash for not delivering the promised full FSD functionality in China. Tesla’s FSD V13 had not been sufficiently trained to navigate Chinese streets, causing drivers to encounter frequent traffic violations such as incorrect lane changes and running red lights.

The partnership with Baidu, a dominant map provider in China, aims to resolve these issues by improving the mapping capabilities and providing more accurate navigation data. Tesla has been relying on Baidu for mapping services since 2020.

This collaboration comes as Tesla’s market share in China declined for the first time last year, dropping from 11.7% to 10.4% in 2024, according to recent data. Meanwhile, local competitors have been pushing sales more aggressively. In the U.S. and Europe, Tesla has faced a slowdown in demand, putting further pressure on its performance in China.

Despite the regulatory challenges and competition, Tesla remains focused on rolling out full FSD technology in China this year. However, it remains unclear how soon the collaboration with Baidu will lead to a resolution of the system’s issues.

Trump Family in Talks for Stake in Binance’s US Arm, WSJ Reports

/in /tarafından

Representatives of President Donald Trump’s family have engaged in talks regarding a potential financial stake in the U.S. arm of Binance, the world’s largest cryptocurrency exchange, according to a Wall Street Journal report released Thursday. The report also suggested that Binance’s founder, Changpeng Zhao, has been advocating for a pardon from the Trump administration.

In November 2023, Zhao resigned as CEO of Binance and pled guilty to violating U.S. anti-money laundering laws, following a $4.3 billion settlement that resolved a prolonged investigation into the company’s operations. The move marked a significant step for the exchange as it looked to resolve its legal challenges.

According to the Journal, Binance representatives reached out to Trump allies in late 2023 to discuss a potential business arrangement aimed at bringing the crypto giant back to the U.S. However, details about the nature of the potential deal or whether it would be tied to the granting of a pardon remain unclear.

The Trump family has shown a growing interest in the cryptocurrency sector, with cryptocurrency meme coins launched by its members and former President Trump himself holding a stake in World Liberty Financial, a crypto platform. Trump’s recent executive order, which establishes a strategic reserve of cryptocurrencies from government-owned tokens, has sparked controversy due to potential conflict-of-interest concerns, especially as the crypto industry has heavily supported Trump and other Republican candidates financially.

Both Binance and representatives for Trump did not immediately respond to requests for comment.