Morning Thrust | Weekly Highlights (20th Edition: 30.04.2023)

Welcome to the 20th edition of Morning Thrust where I share weekly highlights on Future tech, Space Economy, Sustainability, Smart Cities, Supply Chain, Logistics & more (Edition: 30.04.2023)

Maintaining #ChatGPT's infrastructure costs OpenAI up to $700,000 a day, mostly due to the expensive servers it requires. OpenAI's newest model, GPT-4, would cost even more to run, according to research firm SemiAnalysis. Microsoft is reportedly developing its own proprietary AI chip called "Athena," which could reduce the cost per chip by a third compared to Nvidia's offerings. OpenAI CEO Sam Altman recently stated that "giant AI models" may be approaching a point of diminishing returns from their massive size, as they drive up costs. Despite this, OpenAI is not hurting for money due to ChatGPT's success.

The rise of #superapps in Asia?likes of Weixin/WeChat , 支付宝 and Grab becoming part of everyday life and has prompted American tech companies to develop similar ecosystems. However, differences in regulatory environments and cultural factors may limit their ability to achieve the same product diversity and user bases. Nevertheless, shifting regulatory pressures, changing demographics, app overload, and technological advancements are already pushing American tech companies towards creating their own "lite" versions of super-apps. Foundational technologies such as #AI, #blockchain, #VR, and others may also create opportunities to develop complementary tools and ecosystems that build on, share, and commercialize their outputs. A 2022 survey found that 72% of US consumers would be interested in using a super-app.

Super.com , formerly Snapcommerce, has raised $85 million in funding, including $60 million in equity and $25 million in a credit facility. The company aims to help "everyday Americans" find savings across multiple categories, including travel and shopping, through its #superapp. The app has a savings theme and has amassed five million customers worldwide who have collectively saved over $150 million. The company intends to deploy the new funding to product and engineering resources for the development of new features for SuperCash and the overall app, as well as research on additional ways to offer savings, such as on gas and groceries. The company grew double digits over the past year and is on track to do well over $1 billion in gross merchandise volume and over $100 million in net revenue in 2023.

Tata Group is considering investing an additional $2 billion in Tata Neu , India's first #superapp, to strengthen its digital offering, fix technical glitches, and fulfill fresh spending needs. The app allows customers to buy various products and services, including groceries, flight tickets, loans, insurance, and bill payments, but it has faced technical glitches and customer complaints. Tata Digital is reviewing its strategy to compete with e-commerce websites like 亚马逊 , Flipkart , and 沃尔玛 . Jio and Adani Group s are also considering launching #superapps. Bloomberg reported that Tata Neu did not meet its sales target of $4 billion in the year to March 31, which was expected to reach $8 billion.

Delivery Hero expects single-digit growth in its gross merchandise value (GMV) in 2023, predicting between 5% and 7% growth in constant currency terms. The company saw growth of 16% in all regions, except Asia, during Q1 2023, where GMV declined by 7%. However, the company expects double-digit growth in Asia by the end of 2023. Delivery Hero seeks to improve profitability by expanding its customer base and diversifying its business beyond food delivery services. Despite reporting a Q1 GMV of €11.2bn, up 2.1%, the company’s shares were down 3.7%.

Getir has confirmed that it is closing down stores in the #UK as part of its strategic decisions to integrate Gorillas , which it acquired for ￡1bn last year. The closure of stores in Wales and South West England, Birmingham, and London has resulted in a round of layoffs, with up to 300 jobs at risk. Getir did not disclose the number of stores it has closed but said it is optimizing its combined store network with Gorillas to become more efficient and strengthen its position in the country. The firm will continue to operate in several cities, including London, Manchester, and Liverpool.

Just Eat Takeaway.com has announced plans to replace its corporate sales fleet with fully electric vehicles by 2025, with the aim of transitioning its entire corporate fleet to #EVs by 2030. The company has already deployed 12 EVs featuring its branding, and will initially replace its 175-strong diesel vehicle fleet with Cupra Born and Volkswagen ID.3 vehicles, reducing carbon emissions by up to 480 tonnes per year. Just Eat has partnerships with 68,000 UK #restaurants and #groceries, and is working to drive #sustainability in the takeaway sector through initiatives such as compostable packaging and #carbon labelling trials.

A crackdown on illegal working by moped riders delivering for fast food delivery companies including Deliveroo , Just Eat Takeaway.com and Uber Eats has resulted in 60 arrests. Follow-up searches found two imitation guns, a machete and a telescopic baton. Officials are urging these companies to carry out more stringent checks on their moped drivers, and evidence was also found of legitimate drivers sharing delivery jobs with acquaintances. Most of the arrested riders have been detained pending removal from the country.

Amsterdam-based Sparqle is a last-mile delivery platform that focuses on efficiency, reliability, and a #rider-centric approach. The platform uses cutting-edge technology to optimize delivery routes, improve tracking and tracing, and enhance the user experience. Sparqle's mission is to become the most efficient, shared, and reliable riders-centric platform by putting riders first, reducing delivery costs by 40%, and keeping up 100% sustainability. The company is rapidly scaling and active in the 20 largest cities in the Netherlands. Sparqle is currently seeking team members to join their Amsterdam-based team.

Billionaire investor ~ Ken Griffin 's hedge fund, Citadel Advisors, has taken a multimillion-pound short position against Deliveroo 's stock, betting that the food delivery company's share price will fall. Deliveroo's stock hit a 12-month high this week, settling at around ￡1.10, despite a 9% fall in takeaway order numbers in Q1 2023. The group's revenues rose 7% to ￡512m in the quarter, while the average value of its orders jumped 12%, boosted by food inflation. Citadel's short position is worth ￡27m. The only other fund to take out a significant short position in #Deliveroo is Marshall Wace.

#Ghostkitchens are establishments that prepare #food for takeout and delivery without managing a full restaurant operation, and they have become popular with the rise of third-party delivery services and advancing technology. According to industry reports, the global ghost kitchen market was worth $43.1 billion in 2019 and is expected to reach $71.4 billion by 2027. Many startups and established businesses are taking advantage of the trend, with some startups assisting smaller and larger corporations looking to expand their business models, while major businesses like Wendy's and Applebee's Neighborhood Grill + Bar 's have created separate ghost kitchens operating out of the locations they already own. The concept is gaining popularity amid staffing shortages and other challenges faced by the restaurant industry, and nearly half of responding restaurants had either adopted ghost kitchens or planned to in 2021.

亚马逊 's Q1 earnings beat expectations, but the stock saw a decline in extended trading due to cautionary comments from Amazon CFO Brian Olsavsky about a slowdown in the growth of Amazon Web Services (AWS) . Olsavsky stated that AWS customers are continuing to optimize their spending, which is leading to a slowdown in growth. However, the company's revenues, profits, margins, and current quarter guidance exceeded Wall Street's expectations, and some parts of the business, such as North America retail operations, saw growth returning. The company's efforts to reduce costs were also discussed, and it was announced that 27,000 employees had been laid off.

亚马逊 has invested in its #Alexa Games division, despite deep cost-cutting measures that resulted in the elimination of 27,000 corporate jobs. Alexa Games has released Dead Island 2, an open world zombie game for Sony's PS5 and PS4 and Microsoft's Windows and Xbox systems, which enables players to engage with games using their voices. The integration of Alexa Game Control aims to reduce friction and improve the gaming experience. Voice-enabled games are an area where Alexa remains prime for innovation and investment, according to Steve Bernstein, director & GM of Alexa Games at #Amazon.

Bed Bath & Beyond , a home goods retailer, has filed for #bankruptcy protection in the U.S. after failing to secure funds to stay afloat. The company's estimated assets and liabilities range between $1 billion and $10 billion. It plans to wind down its businesses and solicit interest in selling some or all of its assets while keeping its 360 stores and websites open. The filing follows a decline in sales and financial performance, with the company warning in January that it was considering various options, including bankruptcy. The struggling #retailer has faced weak sales due to its messy assortments and lagging online strategy, leading to reduced coupons and store label brands at the expense of national labels.

The EU-funded Copernicus #Philippines Programme was launched to use #satellite imagery and space data to enhance the response capability of the Philippines to natural and man-made disasters, improve weather pattern and climate change analysis, reduce deforestation, manage marine plastic waste, and contribute to better-informed decision making. The programme is part of the Global Gateway flagship projects for 2023 and is aligned with the EU's Indo-Pacific strategy and investment strategy. The #EU has invested €10 million in the programme, which is generating economic and non-monetary benefits.

The accelerating data economy offers significant opportunities for #European #startups to capitalise on. With businesses prioritizing data-driven decision-making, there is a growing market potential for startups to build hardware and software that enables the enterprise to manage, analyze, and extract value from their data. Startups can explore opportunities in intelligent enterprise automation, building and enabling transformative technologies such as #AI, #quantum, and #API infrastructures, and creating category-defining software. However, building trust and transparency is crucial for realizing the potential of the data economy. Federated learning can deliver the data quality-first strategy for ensuring data #security and #privacy, particularly in industries like #banking, #healthcare, and #education.

As #spacetravel becomes more common, the issue of where to house people in space becomes more pressing. #Mars, often considered a potential location for human settlement, has numerous issues including dangerous levels of radiation and high costs associated with getting on and off the planet due to its deep gravitational well. Instead, some researchers are looking towards #asteroids as a potential solution. Living inside asteroids could offer a viable, low-gravity environment that would allow for easy movement, protection from radiation, and resources such as water and minerals. While the idea is still in its early stages, it offers a promising alternative to traditional planetary colonisation.

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