1
00:00:03,200 --> 00:00:05,760
Speaker 1: Good morning and welcome Sue the Daily Os. It's Friday,

2
00:00:05,800 --> 00:00:08,520
Speaker 1: the fourth of August. On today's podcast, I'm going to

3
00:00:08,520 --> 00:00:11,000
Speaker 1: be joined by Maddie and Sophie from your in Good

4
00:00:11,000 --> 00:00:14,200
Speaker 1: Company and we're going to talk about uber and pizza.

5
00:00:14,920 --> 00:00:17,600
Speaker 1: But first, Zara, what's making headlines this morning.

6
00:00:20,800 --> 00:00:24,239
Speaker 2: Yesterday was a big day in Parliament. The Government's Climate

7
00:00:24,320 --> 00:00:27,040
Speaker 2: Change Bill, that is the one that enshrines that forty

8
00:00:27,080 --> 00:00:30,720
Speaker 2: three percent emissions reduction target into law. That passed the

9
00:00:30,760 --> 00:00:33,480
Speaker 2: Lower House and so while it still needs to pass

10
00:00:33,479 --> 00:00:35,800
Speaker 2: the Senate, we do now know that the Greens will

11
00:00:35,840 --> 00:00:38,120
Speaker 2: support it and for the first time in a very

12
00:00:38,120 --> 00:00:42,000
Speaker 2: long time, we have seen climate change legislation pass through parliament.

13
00:00:43,840 --> 00:00:47,400
Speaker 1: Meanwhile, Federal Health Minister Mark Butler indicated that Australia might

14
00:00:47,479 --> 00:00:50,640
Speaker 1: have reached the peak of the latest omicroum wave earlier

15
00:00:50,680 --> 00:00:54,720
Speaker 1: than expected. Butler said the hospitalization numbers were about five

16
00:00:54,840 --> 00:00:58,000
Speaker 1: thousand across the country, which is a downturn from the

17
00:00:58,000 --> 00:00:59,440
Speaker 1: figures recorded last month.

18
00:01:01,720 --> 00:01:04,520
Speaker 2: Queensland Police have said that a shooting in rural North

19
00:01:04,560 --> 00:01:08,040
Speaker 2: Queensland has claimed the lives of three people, while one

20
00:01:08,080 --> 00:01:12,040
Speaker 2: person remains in hospital in a critical condition. Police received

21
00:01:12,080 --> 00:01:14,760
Speaker 2: reports of a shooting at a property in Bogie, which

22
00:01:14,800 --> 00:01:18,119
Speaker 2: is a town in North Queensland on Thursday morning. They

23
00:01:18,160 --> 00:01:21,640
Speaker 2: then established an exclusion zone where they believed the incident

24
00:01:21,680 --> 00:01:22,280
Speaker 2: had happened.

25
00:01:24,319 --> 00:01:26,160
Speaker 1: And in today's good News to end your week, and

26
00:01:26,200 --> 00:01:29,360
Speaker 1: Adelaide Laneway has been renamed Paul Kelly Lane to pay

27
00:01:29,440 --> 00:01:33,279
Speaker 1: tribute to Australian singer, songwriter and Adelaide local Paul Kelly.

28
00:01:33,880 --> 00:01:36,400
Speaker 1: It comes as part of an Adelaide City Council program

29
00:01:36,560 --> 00:01:40,440
Speaker 1: formed to honor its homegrown music legends. They've already renamed

30
00:01:40,440 --> 00:01:44,040
Speaker 1: a Rose after Sea, Cold Chisel and No Fixed Address.

31
00:01:44,280 --> 00:01:47,840
Speaker 1: Paul Kelly joins the list, and soon so will the angels.

32
00:01:52,960 --> 00:01:55,840
Speaker 1: Maddie and Sophie, the brains and voices behind the You're

33
00:01:55,880 --> 00:01:58,600
Speaker 1: in Good Company pod, are back to join us. Maddie,

34
00:01:58,800 --> 00:02:01,000
Speaker 1: we'll start with you. Thank you for being such a

35
00:02:01,040 --> 00:02:03,680
Speaker 1: trooper and joining us early this morning, even though you

36
00:02:03,800 --> 00:02:07,040
Speaker 1: are roaringly COVID positive right now, You've come to us

37
00:02:07,120 --> 00:02:10,120
Speaker 1: today with a story about uber Now, this is something

38
00:02:10,160 --> 00:02:13,440
Speaker 1: you definitely shouldn't do if you are COVID positive, but

39
00:02:13,560 --> 00:02:16,280
Speaker 1: there is still some positive news to tell us.

40
00:02:16,600 --> 00:02:19,000
Speaker 3: I was gonna say, just to clarify I am recording

41
00:02:19,000 --> 00:02:22,480
Speaker 3: from my bedroom. But Uber has announced record breaking at

42
00:02:22,480 --> 00:02:26,200
Speaker 3: bookings at its quarterly update this week. The number of

43
00:02:26,280 --> 00:02:29,480
Speaker 3: Uber's monthly users hit a new peak class quarter, with

44
00:02:29,560 --> 00:02:32,600
Speaker 3: the company reporting twenty four percent more journeys than the

45
00:02:32,639 --> 00:02:35,600
Speaker 3: same time last year. The value of the bookings made

46
00:02:35,600 --> 00:02:38,440
Speaker 3: across the platform has also hit an all time high,

47
00:02:38,520 --> 00:02:42,519
Speaker 3: with plenty of highly profitable airport trips making a resurgence

48
00:02:42,560 --> 00:02:45,560
Speaker 3: on the app. Together, these stats have helped the company

49
00:02:45,600 --> 00:02:48,560
Speaker 3: to more than double its revenue to eight billion dollars

50
00:02:48,600 --> 00:02:51,200
Speaker 3: compared to the same time last year. And all of

51
00:02:51,240 --> 00:02:55,280
Speaker 3: this news combined means that Uber has achieved one last milestone,

52
00:02:55,560 --> 00:02:58,720
Speaker 3: posting its first ever cash flow positive quarter since it

53
00:02:58,800 --> 00:03:01,720
Speaker 3: was founded thirteen years years ago, which for a company

54
00:03:01,760 --> 00:03:04,600
Speaker 3: that has burned through twenty five billion dollars of cash

55
00:03:04,639 --> 00:03:07,920
Speaker 3: in its time, made investors pretty excited, sending the stock

56
00:03:08,000 --> 00:03:08,919
Speaker 3: up fourteen percent.

57
00:03:09,240 --> 00:03:11,000
Speaker 1: Let me just stop you right there. What does cash

58
00:03:11,040 --> 00:03:13,079
Speaker 1: flow positive actually mean? Yeah?

59
00:03:13,120 --> 00:03:16,000
Speaker 3: So, cash flow positive means that a company has more

60
00:03:16,080 --> 00:03:18,880
Speaker 3: money moving into it than out of it. So for

61
00:03:18,919 --> 00:03:21,560
Speaker 3: a long time, many investors haven't really cared if the

62
00:03:21,560 --> 00:03:24,240
Speaker 3: business is making money or not. With interest rates at

63
00:03:24,280 --> 00:03:27,840
Speaker 3: record lows, making debts so cheap, investors have been eager

64
00:03:27,840 --> 00:03:32,239
Speaker 3: to invest their money in more loss making, higher risk investments,

65
00:03:32,360 --> 00:03:34,880
Speaker 3: and the idea being if they could get in on

66
00:03:34,960 --> 00:03:37,840
Speaker 3: the next Amazon or Google, it would be a one

67
00:03:37,960 --> 00:03:40,200
Speaker 3: in a million bet that would offset all of the risk.

68
00:03:40,720 --> 00:03:42,960
Speaker 3: So we really sort of entered into this world in

69
00:03:42,960 --> 00:03:47,120
Speaker 3: which startup founders were encouraged to expand aggressively, even if

70
00:03:47,160 --> 00:03:50,120
Speaker 3: that did mean losing a ton of money in the meantime.

71
00:03:50,600 --> 00:03:55,000
Speaker 3: Think AIRBNBA, Peloton, Dropbox, Pinterest, Snapchat, or even we Work.

72
00:03:55,200 --> 00:03:59,119
Speaker 3: None of these companies were profitable, but the global economic

73
00:03:59,240 --> 00:04:02,840
Speaker 3: environment is changing and with interest rates rising, which means

74
00:04:02,880 --> 00:04:06,200
Speaker 3: so is the cost of debt. Suddenly these unprofitable companies

75
00:04:06,280 --> 00:04:08,840
Speaker 3: are at quite at risk of their debt rising out

76
00:04:08,840 --> 00:04:12,880
Speaker 3: of control. So when consumers cut back, businesses are forced

77
00:04:12,920 --> 00:04:15,920
Speaker 3: two two, which can hurt jobs. So with so much

78
00:04:16,000 --> 00:04:18,760
Speaker 3: change in the economic environment, you can really see how

79
00:04:18,839 --> 00:04:21,640
Speaker 3: from an investor's perspective, all of a sudden, those high

80
00:04:21,640 --> 00:04:25,279
Speaker 3: growth tech stocks don't look so appealing anymore. Forget getting

81
00:04:25,320 --> 00:04:27,440
Speaker 3: in on the ground floor of Amazon. I just don't

82
00:04:27,440 --> 00:04:29,360
Speaker 3: want to lose my money totally.

83
00:04:29,400 --> 00:04:31,960
Speaker 1: And that's a sentiment that we're seeing echoed around the

84
00:04:32,120 --> 00:04:35,640
Speaker 1: entire tech sector. There's massive tech companies that are taking

85
00:04:35,720 --> 00:04:38,880
Speaker 1: hits to their valuations, which means the amount of money

86
00:04:38,960 --> 00:04:42,200
Speaker 1: that their investors currently think that they're worth, and the

87
00:04:42,279 --> 00:04:44,960
Speaker 1: market has suggested the same thing and said you're not

88
00:04:45,320 --> 00:04:49,039
Speaker 1: worth that many billions. It's pretty surprising that Uber is

89
00:04:49,279 --> 00:04:52,640
Speaker 1: only cash flow positive now. It surely has taken a while,

90
00:04:53,160 --> 00:04:55,000
Speaker 1: but I guess it means for those people who did

91
00:04:55,000 --> 00:04:57,200
Speaker 1: get in on the ground floor, they have been quite

92
00:04:57,240 --> 00:04:58,560
Speaker 1: adequately rewarded.

93
00:04:58,720 --> 00:05:01,840
Speaker 3: Beyonce actually did a performance with Uber and was rewarded

94
00:05:01,880 --> 00:05:03,840
Speaker 3: in shares back in the day, so she is one

95
00:05:03,839 --> 00:05:04,640
Speaker 3: of those people too.

96
00:05:04,960 --> 00:05:08,000
Speaker 1: The Queen Bee strikes again, Sophie. Let's turn to you

97
00:05:08,080 --> 00:05:10,880
Speaker 1: now a slice of news from the world of pizza.

98
00:05:10,960 --> 00:05:13,120
Speaker 4: Sam. Does it surprise you that at the end of

99
00:05:13,200 --> 00:05:16,400
Speaker 4: last year it cost almost five hundred and fifty USD

100
00:05:16,560 --> 00:05:18,719
Speaker 4: to buy one share of Domino's Pizza.

101
00:05:19,240 --> 00:05:20,680
Speaker 1: I've just done some mats in my head, and that

102
00:05:20,720 --> 00:05:23,600
Speaker 1: looks like it's about fifty five. Domino's Pizza's probably one

103
00:05:23,640 --> 00:05:25,240
Speaker 1: hundred and ten if you've got one of those sneaky

104
00:05:25,240 --> 00:05:27,760
Speaker 1: little coupons that land up in a mailbox. But that

105
00:05:27,920 --> 00:05:30,320
Speaker 1: is yeah, very surprising that it's worth that much.

106
00:05:30,640 --> 00:05:33,200
Speaker 4: Well, if you're not familiar with the Domino story, the

107
00:05:33,240 --> 00:05:36,719
Speaker 4: company has seen spectacular growth over the past couple of years,

108
00:05:37,120 --> 00:05:40,080
Speaker 4: from very humble beginnings to a stock price that has

109
00:05:40,120 --> 00:05:44,799
Speaker 4: outperformed the likes of Amazon, Apple, Facebook, and even Google. However,

110
00:05:44,960 --> 00:05:47,960
Speaker 4: the company is now experiencing a decline as it is

111
00:05:48,000 --> 00:05:52,279
Speaker 4: feeling the bite part in the pun of both inflation

112
00:05:52,520 --> 00:05:54,360
Speaker 4: and shortage of delivery drivers.

113
00:05:54,880 --> 00:05:57,279
Speaker 1: And is this good news in line with other fast

114
00:05:57,279 --> 00:06:00,719
Speaker 1: food outlets or is this a Domino specific event.

115
00:06:01,279 --> 00:06:04,000
Speaker 4: I think a lot of people are feeling the bite

116
00:06:04,320 --> 00:06:07,880
Speaker 4: of shortage of labor. In December last year, the omicron

117
00:06:07,960 --> 00:06:10,160
Speaker 4: wave hit, and it kind of had a dual effect

118
00:06:10,200 --> 00:06:13,279
Speaker 4: of both reducing workers because of illness, but it was

119
00:06:13,279 --> 00:06:16,200
Speaker 4: also increasing the callouts of people who were isolating at

120
00:06:16,200 --> 00:06:19,280
Speaker 4: home and wanting pizza, which is surprising because I did

121
00:06:19,320 --> 00:06:22,640
Speaker 4: think that omicron kind of took away your taste buds

122
00:06:22,680 --> 00:06:29,280
Speaker 4: a little bit. But the company has also pointed to

123
00:06:29,600 --> 00:06:32,600
Speaker 4: rising commodity costs as one of the reasons that they

124
00:06:32,600 --> 00:06:35,320
Speaker 4: are starting to see a declimb because they're expecting to

125
00:06:35,360 --> 00:06:38,200
Speaker 4: see food costs increase by eight to ten percent over

126
00:06:38,240 --> 00:06:38,760
Speaker 4: the year.

127
00:06:39,040 --> 00:06:41,320
Speaker 1: And I know we don't talk about financial advice on

128
00:06:41,360 --> 00:06:44,040
Speaker 1: this podcast, but would you say that tough times are

129
00:06:44,080 --> 00:06:46,839
Speaker 1: ahead for Dominoes because of the things you've mentioned like

130
00:06:46,920 --> 00:06:50,679
Speaker 1: food shortages or delivery driver shortages or are they hitting

131
00:06:50,680 --> 00:06:53,640
Speaker 1: their strides? And do investors think that they're only just

132
00:06:53,680 --> 00:06:54,359
Speaker 1: getting started.

133
00:06:54,640 --> 00:06:57,880
Speaker 4: I think every company is going to have to overcome

134
00:06:57,960 --> 00:07:02,039
Speaker 4: some adversity in the future during this year, but as investors,

135
00:07:02,040 --> 00:07:04,800
Speaker 4: we are looking at ways that these companies do pivot

136
00:07:05,000 --> 00:07:08,440
Speaker 4: during these times, and Dominoes has actually been quite clever.

137
00:07:08,680 --> 00:07:10,600
Speaker 4: So one of the things that they have done is

138
00:07:10,640 --> 00:07:14,120
Speaker 4: that they've implemented a call center so that when you

139
00:07:14,160 --> 00:07:16,520
Speaker 4: go to order a pizza, instead of going to your

140
00:07:16,560 --> 00:07:20,480
Speaker 4: local Dominoes, you're redirected to someone in a call center,

141
00:07:21,120 --> 00:07:24,200
Speaker 4: and the CEO, Russell Weiner, has said that it allows

142
00:07:24,480 --> 00:07:27,239
Speaker 4: team members to focus on making and delivering pizza without

143
00:07:27,280 --> 00:07:30,120
Speaker 4: having to worry about answering phones. Another thing they've done

144
00:07:30,240 --> 00:07:32,720
Speaker 4: is they've changed their pricing structure so it's actually cheaper

145
00:07:32,760 --> 00:07:35,760
Speaker 4: to pick up in stores and they're now pre folding

146
00:07:35,760 --> 00:07:39,040
Speaker 4: its pizza boxes, which the company says saves thirty to

147
00:07:39,040 --> 00:07:41,800
Speaker 4: forty hours per store per week in labor.

148
00:07:41,680 --> 00:07:44,480
Speaker 1: That is super interesting how a tiny little change like

149
00:07:44,520 --> 00:07:47,520
Speaker 1: folding pizza boxes at that scale can make such a

150
00:07:47,600 --> 00:07:50,720
Speaker 1: huge difference. Mads, do you have any stories that you're

151
00:07:50,760 --> 00:07:52,080
Speaker 1: looking at in the week ahead?

152
00:07:52,320 --> 00:07:55,400
Speaker 3: I saw that this week TikTok has brought the rats

153
00:07:55,440 --> 00:07:58,360
Speaker 3: to the name of TikTok music in the US could

154
00:07:58,360 --> 00:08:01,040
Speaker 3: be a new foray for the companies, so very interested

155
00:08:01,200 --> 00:08:02,360
Speaker 3: to watch what they're doing there.

156
00:08:02,480 --> 00:08:05,440
Speaker 1: We actually just started our fully fledged TikTok journey this week.

157
00:08:05,480 --> 00:08:07,280
Speaker 1: Go and check it out. The daily ods now on

158
00:08:07,320 --> 00:08:10,320
Speaker 1: TikTok and it is pretty good stuff. What about you?

159
00:08:10,440 --> 00:08:13,840
Speaker 4: So staying on the TikTok trend. I guess MPs in

160
00:08:13,880 --> 00:08:17,240
Speaker 4: Australia have been urged to get second phones that don't

161
00:08:17,280 --> 00:08:21,360
Speaker 4: actually have TikTok on them as security worries rise. That

162
00:08:21,520 --> 00:08:24,280
Speaker 4: was in the AFR yesterday morning, and I think it's

163
00:08:24,280 --> 00:08:27,880
Speaker 4: a very interesting area of data and privacy, so it's

164
00:08:27,880 --> 00:08:28,800
Speaker 4: one that I'll be watching.

165
00:08:31,520 --> 00:08:34,120
Speaker 1: Mattie in Sophie, thank you so much for joining us, Maddie.

166
00:08:34,160 --> 00:08:36,800
Speaker 1: I hope you rest up, drink lots of hydro life

167
00:08:36,800 --> 00:08:37,959
Speaker 1: and get better quick.

168
00:08:38,120 --> 00:08:38,560
Speaker 3: Thanks son.

169
00:08:39,280 --> 00:08:41,360
Speaker 1: If you want to go check out some more of

170
00:08:41,440 --> 00:08:43,400
Speaker 1: Maddie and Sophie, you can go and head to your

171
00:08:43,400 --> 00:08:45,839
Speaker 1: input company wherever you're listening to this podcast.

172
00:08:46,840 --> 00:08:48,920
Speaker 2: We'd love it if you could give us five stars

173
00:08:48,960 --> 00:08:51,960
Speaker 2: wherever you do your podcast listening. Thanks for your support,

174
00:08:52,000 --> 00:08:53,319
Speaker 2: and have an incredible weekend.