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Speaker 1: This is what the flux.

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Speaker 2: I'm Brett and I'm Justin and it's Wednesday, the ninth

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Speaker 2: of June.

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Speaker 1: It is good to be back, Jusey boy. It has

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Speaker 1: been a lot of business news over the past few weeks.

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Speaker 1: I'm talking Quantus Haack, I'm talking Vergin Australia, I pos

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Speaker 1: Trump Tarim Stapp about and I must say, juzzy boy,

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Speaker 1: it's great to be back on the mic with you

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Speaker 1: and cannot wait to chat about that little cash rate

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Speaker 1: surprise as well.

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Speaker 2: Very good to be back by Man and flex AMM.

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Speaker 2: Just a reminder you can always get your finance fixed

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Speaker 2: from the Flex app as well from learning about cash

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Speaker 2: rate updates, financial concepts, managing your budget. We have it

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Speaker 2: all covered in the Flex app. To make sure to

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Speaker 2: check that out.

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Speaker 1: Three newborn stories today, jussy boy, let's do it for

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Speaker 1: our first. The Reserve Bank of Australia has thrown one

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Speaker 1: of the great surprises of twenty twenty five by pausing

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Speaker 1: the cash rate at three point eighty five percent.

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Speaker 2: Market's almost guaranteed a cart but the markets don't make

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Speaker 2: the decision, be Man, so tell me more.

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Speaker 1: So, Juzy boy. We know that the RBA brains trust

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Speaker 1: have put their heads together a few times this year already.

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Speaker 2: Yep, there have been two rate so far in twenty

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Speaker 2: twenty five, with the cash rate falling from four point

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Speaker 2: three five percent down to three point eight five.

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Speaker 1: And with the RBA meeting again on Monday and Tuesday

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Speaker 1: this week, the financial markets gave a ninety seven percent

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Speaker 1: chance of a rate cut.

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Speaker 2: In fact, they man just four out of thirty six

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Speaker 2: economists predicted the decision to keep rates on hold.

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Speaker 1: That's because trimmed mean inflation, the favorite figure of the RBA,

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Speaker 1: had slowed to two point four percent, which.

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Speaker 2: Is within the RBA's target range of two to three percent.

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Speaker 1: And Jazi wait. On top of this, retail sales had

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Speaker 1: also weakened, which should encourage the RBA to drop rates.

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Speaker 2: But obviously be man. The RBA doesn't want anyone knowing

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Speaker 2: its next move now, so it paus the cash rate

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Speaker 2: at three point eight five percent.

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Speaker 1: The Governor of the RBA said that the case was

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Speaker 1: not established for another rate cut.

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Speaker 2: It wanted to see a little bit more information before

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Speaker 2: moving on this cash rate.

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Speaker 1: In particular, it pointing to the US tariffs which are

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Speaker 1: still unknown, as.

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Speaker 2: Well as the policies that come out of the tariffs

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Speaker 2: from countries that are hit like China.

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Speaker 1: Aka Australia's biggest trading partner. So true, So what is

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Speaker 1: the key learning here? When it comes to interest rates,

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Speaker 1: markets can speculate, central banks hold the cards.

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Speaker 2: Be Man, even if the economic data shows a slow down.

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Speaker 2: The RBA doesn't want to jump the gun.

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Speaker 1: Because jumping the gun could risk reigniting inflation.

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Speaker 2: And be Man. Despite those positive signs around inflation, we

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Speaker 2: know that Donald Trump's tariffs could change the whole world's

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Speaker 2: economy in an instance.

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Speaker 1: That's why the RBA is waiting for more consistent evidence

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Speaker 1: before making a change now.

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Speaker 2: Interestingly, be Man, The RBA released the voting for the

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Speaker 2: very first time, and not all RBA board members agree.

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Speaker 1: In fact, three board members voted for a cut, well

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Speaker 1: six voted for a pause.

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Speaker 2: Majority rules. So in this case, the RBA said it

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Speaker 2: wants more information before cutting again.

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Speaker 1: It's not a node to the rate cuts, it's more

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Speaker 1: of a maybe soon.

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Speaker 2: Once we get a read on Old Trumpy.

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Speaker 1: For our second story. Uber Australia's advertising business has grown

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Speaker 1: to over one hundred and fifty million bucks. As its

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Speaker 1: latest revenue stream did.

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Speaker 2: The delays became Uber's payd eight man. So what is

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Speaker 2: the story here?

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Speaker 1: So Uber is the OG of ride sharing and food

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Speaker 1: delivery services.

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Speaker 2: We all know the Uber story started in San Francisco

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Speaker 2: when Global Fast and launched in Australia in twenty twelve.

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Speaker 1: Since then, Uber has remained the dominant player in Australia's

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Speaker 1: ride sharing and food delivery scene.

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Speaker 2: It also famously operated at a loss for years as

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Speaker 2: a result of its very aggressive growth strategy.

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Speaker 1: Well think about all those ads with Kim Kardashian, Magna Zubanski,

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Speaker 1: Sure Rebel, Wilson, plenty more. Yep.

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Speaker 2: But in twenty twenty two, b man Uber launching ad

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Speaker 2: business in its Australian arm.

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Speaker 1: Think as promoting specific restaurants above others, a bit like

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Speaker 1: Google sponsored ads in your Uber app, And in its.

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Speaker 2: First year it brought in an additional forty one million

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Speaker 2: bucks in revenue.

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Speaker 1: And fast forward two years later, Uber's ad business group

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Speaker 1: by fifty five percent to about one fifty mil And then, man.

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Speaker 2: These aren't your regular food ads. Now.

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Speaker 1: Uber uses its first party data like your age, your location,

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Speaker 1: your gender, and food habits to serve up really targeted

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Speaker 1: food ads. Hungover on a Sunday morning, oh, you better

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Speaker 1: believe uberno's and will offer you makers yep. In a

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Speaker 1: world where users are becoming more savvy with their data privacy,

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Speaker 1: Uber has found a way to monetize the mountain of

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Speaker 1: data it has yep.

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Speaker 2: So what is the key learning here?

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Speaker 1: Not all data sources are created equal, and first party

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Speaker 1: data has become a super valuable resource.

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Speaker 2: First party data is information that a company collects directly

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Speaker 2: from you.

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Speaker 1: For Uber, it might be your location, your purchase history,

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Speaker 1: your food preferences.

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Speaker 2: It's accurate, it's reliable, and you've usually consented to it first,

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Speaker 2: even if it's in a long list of ts.

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Speaker 1: And cs yep, as opposed to third party data, which

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Speaker 1: is data collected by a data company or an aggregator

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Speaker 1: and then shared with other businesses.

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Speaker 2: Now, but man, you may remember back in twenty twenty one,

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Speaker 2: Apple cracked down on third party data collection to protect

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Speaker 2: user privacy.

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Speaker 1: And that meant a lot of advertisers lost access to

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Speaker 1: info that used to allow them to serve up targeted ads.

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Speaker 2: So now more than ever, first party data has become

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Speaker 2: a super valuable resource.

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Speaker 1: And Uber's got the oodles of it.

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Speaker 2: So even though their core service is still ride sharing

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Speaker 2: and food delivery. Their new ad business is clearly very

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Speaker 2: scalable and very profitable year on year.

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Speaker 1: For our third and final story, Audi has launched a

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Speaker 1: home delivery service in Australia for the first time to

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Speaker 1: get a slice of that growing online grocery industry.

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Speaker 2: Colsonwill is booming online, so definitely may sense tell me.

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Speaker 1: What we man well Jauziboy. Aldi was founded in Germany

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Speaker 1: in nineteen forty six by two brothers. Audi has built.

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Speaker 2: A reputation for offering very low cost groceries and knockoffs

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Speaker 2: of all the brands.

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Speaker 1: You know, Red Rock, Daili chips, how about Audi's Blackstone chips.

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Speaker 2: Instead, need head and shoulder shampoo, why not try Aldi's

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Speaker 2: Headstrong shampoo.

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Speaker 1: Audi landed in Australia in two thousand and one and

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Speaker 1: has grown to have nearly ten percent market share.

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Speaker 2: But the man. While has taken the challenge to Coles

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Speaker 2: and Willies install, they've really fallen behind online.

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Speaker 1: You can't even buy a product from their website.

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Speaker 2: So now Audi's announced a new partnership with DoorDash that

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Speaker 2: will allow Aussie customers to purchase Audi products online. And

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Speaker 2: while it's not quite the same as their own online store.

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Speaker 2: It does solve a major problem for them, particularly when

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Speaker 2: the online grocery segment now counts for almost eleven percent

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Speaker 2: of the overall grocery market.

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Speaker 1: So what is the key learning here?

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Speaker 2: Retailers face a tough balancing act between gaining market share

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Speaker 2: and maintaining profit. Market and Juziboy offering delivery has been

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Speaker 2: an effective way to grow market share, but it can

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Speaker 2: also eat into profits because of the huge additional logistics costs.

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Speaker 1: In fact, Woolly's new distribution center costs them more than

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Speaker 1: seven hundred million bucks to bill.

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Speaker 2: And be man. Audi has been historically hesitant to offer

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Speaker 2: home delivery because of the huge upfront costs.

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Speaker 1: That now the opportunity to enter the online space is

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Speaker 1: too juicy to ignore.

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Speaker 2: So instead of spending big on warehouses and tech, Audi's found.

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Speaker 1: A bit of a cheat code, partner with someone who

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Speaker 1: has already built it and lets.

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Speaker 2: Them stay competitive online.

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Speaker 1: In fact, Cole's online grocery shopping has grown twenty five

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Speaker 1: percent just in the last quarter, and Woolly's online sales

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Speaker 1: up more than twenty percent in the most recent quarter

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Speaker 1: as well. So if Audi wants to keep up, this

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Speaker 1: door dash deal might just be the thing Flux and everybody.

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Speaker 2: Is shocked by the RBA's cashtray pause, one of the

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Speaker 2: great surprises of twenty twenty five so far. We do

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Speaker 2: a whole deep dive in the Flux app why they

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Speaker 2: made the pause, what are they looked at, and what

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Speaker 2: might change next time. So if you want to learn

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Speaker 2: more about the cashwrake surprise, make sure to check out

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Speaker 2: the Flux app.

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Speaker 1: Thanks for listening and we'll see you on Friday.