FTI Consulting News Bytes – 18 October 2024

FTI Consulting News Bytes

In this week’s edition, we report on Airbnb’s newly launched Co-Host Network, designed to encourage more people to share their homes on the platform by pairing new hosts with an experience ‘co-host.’ To the delight of many, the UK government has announced that it is considering enforcing a common charging cable across devices – which would help to reduce electronic waste and the costs to consumers. Elsewhere, the Financial Times discussed the potential impacts of AI disruption on fund managers in its Asset Management newsletter and Deliveroo’s share price rose 2%, giving it a market value of £2.4 billion. Finally, watchdog Ofcom has warned social media companies that they could face “significant” fines for failing to comply with the UK’s new Online Safety Act, set to be rolled out in December.

This week’s news

Airbnb turns to experienced hosts to expand

This week, Airbnb launched a new Co-Host Network, designed to help more people earn money by sharing their home. With 40% of UK hosts saying they would host more if they had more help to do so, the Co-Host Network allows hosts to partner with an experienced co-host to help manage their listing. After negotiating a commission, co-hosts will help provide support to new hosts – which could involve listing setup guidance and communicating with guests. In an interview with The Times, Airbnb founder and CEO Brian Chesky said he hoped this would unlock more homes on Airbnb, increasing supply and lowering prices so more guests can access unique travel experiences. He added “we need to continue to build trusted ways to allow people to feel comfortable allowing strangers in their own home. And this is just the beginning.”

UK considers common cable for charging 

The days of scrambling through a drawer of tangled cables could soon be over. The UK government is considering enforcing a common charging cable across devices, according to BBC News. The European Union passed a common charging cable law in 2022 which companies have until December this year to adopt. At the time, the UK government insisted it was not considering similar rules, but has since changed its tune. With non-profit organisation Material Focus estimating that the UK has more than 600 million unused or discarded cables, the law would help to tackle the country’s electronic waste problem. Apple ditched its proprietary lightning cable in 2023, in a move that may indicate the broader direction of travel for the devices industry.

AI disruption is on the horizon for CIOs

This week’s Financial Times Asset Management newsletter discussed the potential impacts of AI disruption on fund managers, sharing insights from German investment house DWS and its chief investment officer, Björn Jesch. Fund managers often excel at discussing AI as an investment theme but can struggle to explain its impact on their roles. Björn Jesch is an example of a CIO who plans to leverage AI to broaden his communication on this area. In a new podcast, DWS will feature Björn’s market insights generated by AI reading his daily notes in his voice. Björn even discussed the possibility of creating a desktop avatar to represent him in meetings as he balances his busy schedule. AI disruption provides the opportunity to thread CIOs’ thoughts through organisations in a new way, raising questions surrounding how their insights may be disseminated across the firm in the near future.

Deliveroo rides high as share price hikes

In the third quarter of the year, Deliveroo reported a 6% increase in transaction value on its platform, reaching £1.8 billion, with total orders up 2%, resulting in a share price increase of 3%. The Times reports that overall sales rose to £498 million, compared to £487 million the previous year, with UK and Ireland sales increasing by 4% to £308 million. The news follows Deliveroo recently posting its first interim profit since going public, with £1.3 million earned in the first half of this year, a stark contrast to a loss of £82.9 million the year prior. Founded in 2013, Deliveroo now operates in ten markets with a workforce of 140,000 delivery riders, navigating a competitive landscape with rivals like Uber Eats, Just Eat and recently exited brands like Getir and Gorillas.

Social media faces big changes under new Ofcom rules

Watchdog Ofcom has warned social media companies that they could face “significant” fines for failing to comply with the UK’s new Online Safety Act. The new Act includes a sweeping set of rules designed to force large tech firms to do more to address illegal activity online, covering a range of codes and guidance for illegal harms, pornography age verification and children’s safety. The BBC reports Ofcom chief executive Melanie Dawes has emphasised that it is the responsibility of firms – not parents or children – to ensure people are safe online. Ofcom is planning to publish the first iteration of its illegal harms code in December. From when the guidance is finalised, tech companies will have three months to make the necessary changes to safeguard users. Various tech firms have already begun implementing changes, with Meta and Snapchat having added measures to protect children from grooming and live-streaming platform Twitch introducing restrictions designed to stop under-18s from seeing harmful videos.

Top Tweets of the Week 

• Lara Lewington, Technology Reporter, BBC News & AI Agony Aunt, tweets: “Synchron’ brain computer interface can communicate with phones and computers through thought alone. Currently implanted in several ALS patients, story on @BBCClick soon. Phenomenal”
• Laura Purkess, Consumer Features Editor, the Sun tweets: “the Government will announce its plan to regulate Buy Now, Pay Later products by early next year. It will run a short 6-week consultation ending November 29th followed by a short FCA consultation.”
• Carl Quintanilla co-anchor of CNBC’s “Squawk on the Street” tweets: “Uber has explored a possible bid for Expedia, the nearly $20bn US travel booking website, in what would be by far the ride-hailing company’s largest acquisition as it looks to diversify further and find new avenues for growth.”

Number of the week

5.1m -The number of new paying subscribers Netflix added over the summer, topped Wall Street analyst estimates by 1 million new subscribers. (Forbes)