COO responsibilities will be shared, GameStop said.
Source link
According to Brendan Cooper, a core contributor at Andromeda, the widespread distribution and adoption of the Web3 operating system (OS) will likely result in the emergence of new business models, much like what happened with the Web2 OS. The Web3 OS is also likely to simplify “how developers and users interact with the resources provided […]
Source link
-
As a police officer, Paul Alex decided he would be better off by investing in cash-flowing assets.
-
He initially bought six ATMs and scaled to 30 with the profits he earned.
-
A decent minimum return on an ATM should be at least $200 a month per machine, he said.
Paul Alex entered the police force as a trainee with the plan to build a career in law enforcement in the San Francisco Bay Area.
Alex, 35, hit the ground running, eventually becoming a detective in the narcotics task force before being assigned to the special victims unit. By 2020, he had scaled his way up to a salary of $133,000, with benefits bringing him up to an annual salary of over $272,000, according to California state archives viewed by Insider.
While his career set him up for financial stability, his weekly working hours could range from 60 to 100 hours.
“I didn’t have any personal freedom,” Alex said. “I was neglecting my personal life. I wasn’t hanging around my family who I love. I’m a big family guy. And at the end of the day, I realized, this can’t be life.”
The deeper realization that a salaried career wasn’t going to be his future was during periods when overtime was paused, which would cut his pay drastically, he said. Some months, his biweekly paycheck would be $2,000 after deductions. This meant he always had to save for those low months to cover his bills, which could range from $5,000 to $6,000 a month, he said.
“What really was a morale killer was the fact that you want to move ahead in life. And I feel it kept you static when that happened,” Alex said.
He decided that investing in cash-flowing assets would be a way out of the paycheck volatility. He could then use his salary for discretionary purchases such as vacations, cars, and additional investments.
He initially considered real estate but felt that it would require a lot of cash and a mortgage that would create more debt. Plus, he believed that the overhead expenses of maintaining a property would add to his stress. He’d have to hold any rental income in cash in case he had to cover the mortgage due to missed rent or repairs.
In 2017, Alex came across the idea of investing in ATMs through a colleague who had been researching the business. He began joining social media groups about it, watching YouTube videos from others who had done it, and reading any material he could.
It was a business model that was out of his comfort zone because he knew nothing about it. But the draw of it was that it had a low-cost barrier to start; relative to buying real estate, an ATM could cost less than $3,000. It also had lower risk because if the ATM wasn’t generating a return, he could relocate the machine, which he refers to as a floating asset. And finally, it was a quick way of starting a side hustle because once a machine was placed on location, it could start generating a profit almost immediately.
Alex decided to pursue it as a side hustle in 2018. By March 2021, he had left the police force and made it his full-time job where he provides the ATMs for those who also want to embark on this business.
From January 2021 to April 2023, Alex’s profit and loss statements viewed by Insider show a total sales of $12 million and a net profit of about $3.5 million for his company ATMTogether, a provider of ATM machines and services. His company Merchant Task Force, which provides credit-card terminals, shows an income of $844,000 and a net profit of $742,000 for the same period.
Scouting locations
In 2018, Alex took two weeks off from work and used that time to scout the city for ideal locations.
He looked for high-traffic areas that had an incentive to have an ATM on site. This included tourist areas and city spots that were populated with nightclubs, restaurants, and valets to target zones where staff was tipped. He also looked for small businesses that offered cash back at checkouts, which was a nuisance to the business because they had to be sure there would always be enough dollar bills in the register.
Alex would pitch the businesses as though he was offering a service. He would be responsible for providing and maintaining the machine at no charge to them. He recalled cold calling over a hundred businesses and physically walking into over 20 locations.
“When I started this and I had gone out there and I was getting nos and yeses, wins and losses, It was very difficult for me to go back to work and not think about my business. And I think that’s what caught me, was just the fact that I was growing something for myself and I wanted to continue to grow it.”
He initially had the idea of starting with three ATMs but by the time he was done, he was able to secure six locations: three liquor stores, two barber shops, and one nail salon in the San Francisco Bay Area. The first three were incentivized by cashback and the last three by cash tips.
Once the machines arrived on location, he loaded each ATM up with about $2,000 to $3,000 in cash.
Not every location was a grand slam. Alex noted that a decent minimum return on an ATM should be at least $200 a month per machine. Within the first month, Alex could already tell that the only three machines producing a return were the ones he placed at the liquor stores. They had a net profit of about $250 to $500 a month per location from fees charged for withdrawals. In contrast, the lower traffic locations were only producing $25 to $100 a month. He let the machines sit for two months before deciding it was time to move them.
Alex also found a mentor from Facebook who was successful in the business. Based on his mentor’s advice, he moved the three machines to two convenience stores and another liquor store. From there, they began to bring a net profit almost immediately, with the highest return being $600 a month, he said. He suddenly had six operational machines that brought in roughly $3,000 a month in net profit, he said. It took him approximately six months to get a return on his investment.
Funding the businesses
While Alex had enough cash saved to purchase the machines, he realized he would need the bills to stock the ATMs. So instead, he signed up for two personal credit cards and used them to buy the hardware, he said. They were cards that specifically offered zero-interest for the first 12 months, he noted. This would give him enough time to create cash flow without incurring interest every month.
When he purchased his first set of six machines, Alex assumed he got a good discount, which was $2,100 an ATM. He would later realize it was a bad deal because it required him to pay a 30% commission from the fees his ATMs charged. While the sales agent he worked with told him it was standard practice, he later realized it wasn’t the only way.
The next set of machines would be purchased from his mentor. They were both new and refurbished and cost between $1,800 to $2,200 depending on the model.
Additional costs for the ATMs included an internet wireless modem for $150, a monthly internet charge of $6.99, and installation by a technician of $300.
Alex would gradually use the profits from his ATMs to buy more machines. And by 2020, he had accumulated 30 ATMs across the San Francisco Bay area that were operative. Each brought in anywhere from $250 to as much as $1,500 a month in net profit.
Altogether, these little assets cash flowed anywhere between $9,000 to $12,000 a month in net profit, he said. While his side hustle didn’t make up for his salary, he was fully able to cover his bills with the profits. This was enough to make him want to leave his job in 2021 to build a business in this sector.
During this time, he met an ATM provider who he partnered with and they scaled to become a provider of ATMs. This allowed him to sell off his machines so that he could become remote.
Even while in the act of building his side hustle, Alex still had doubts running through his mind. The chatter from those around him kept him questioning his ability to carry this through. Some of his colleagues thought it was a bad idea to invest in an unknown business and told him he should just pick up extra hours instead. In hindsight, he’s glad he kept going.
“Invest in yourself. Self-education is everything,” Alex said reflecting on his journey. “All this started from a friend of mine, giving me an idea, and then me taking that idea and doing my due diligence and just researching it, buying books, watching videos, reading, reading, reading to the point where I was comfortable enough to execute it on my own.”
This story was originally published in June 2023.
Read the original article on Business Insider
China’s still-floundering economy is only one of a laundry list of worries for foreign businesses active in the country, yet most still plan on investing significant sums into their Chinese operations, according to two much-anticipated reports this week.
Uncertainty over Chinese government policy, U.S.-China tensions, toughening local competition and pressure from the Biden administration to reduce reliance on China topped concerns among firms surveyed in the American Chamber of Commerce in Shanghai’s annual China Business Report.
While companies’ optimism about their prospects in the country hit an all-time low, there was a slight uptick in the percentage of businesses that plan to increase their investments in China this year, to 31% from 25% last year.
“The [economic] rebound has not materialized and business sentiment has continued to deteriorate,” the chamber wrote in its report.
The findings mirrored those released the same day in a massive report from the European Union Chamber of Commerce in China, which, alongside its list of concerns among its members, included more than 1,000 “constructive recommendations” to the Chinese government.
While conditions in the country remain challenging, forays into relocating operations away from China accelerated.
Of the 40% of American companies shifting their investments away from China, Southeast Asia ranked as the leading relocation spot, with the U.S. and Mexico as the next most popular choices.
See: U.S. companies looking to move manufacturing from China turn to India
Other metrics worsened from last year.
Only 26% of businesses surveyed said China was among their top three investment destinations, a substantial drop from the year-earlier 40% — and the business climate in 2022 was already distressing for foreign firms.
From the archives (May 2023): Foreign businesses in China fear they’re being targeted in a ‘campaign’ of government crackdowns. It’s probably not that simple.
“It took a trade war, a breakdown in geopolitical tensions, a pandemic and finally a year’s worth of zero-COVID lockdowns, but finally corporates got the message that the days of business-as-usual in China are over — and that they needed not just contingency planning but an actual pivot to ensure their global supply chains couldn’t be held hostage to whatever happens in a country half a world away,” Leland R. Miller, CEO of the China Beige Book consultancy, told MarketWatch.
There’s also been diplomatic and policy confusion from the American side. The Biden administration has sent a parade of high-level officials to China in recent months in attempts to smooth trade and investment relations.
From the archives (July 2023): Yellen complains about China treatment of U.S. companies
Also see (June 2023): Blinken, Xi pledge to stabilize deteriorating ties, but China rebuffs main U.S. request
At the same time, it has imposed restrictions on sensitive technology, such as semiconductor chips, that make some of the Trump administration’s trade-war salvos look mild in comparison.
The chair of the U.S. House of Representatives’ committee on China is set to meet with top American chip manufacturers to press them to further restrict China’s access to related technology, Reuters reported Tuesday — a move that could further disrupt planning and prospects for leading firms such as Nvidia
NVDA,
and Intel
INTC,
Chinese nationalism, too, has seemed ready to seize on any stumbles among foreign companies and to tighten an embrace of domestic businesses. Private Chinese telecom giant Huawei recently shocked the tech community by unveiling a phone that purports to use its own in-house chip and run at speeds competitive with leading players, potentially circumventing U.S. restrictions. That development “potentially [poses a] downside risk to iPhone sales, especially in the Asia Pacific [region],” said BofA Securities analyst Wamsi Mohan.
Chinese media trumpeted the Huawei release, and the phone sold out in minutes.
At the same time, Apple took a PR beating this week after Chinese social media exploded in anger at an online ad featuring an “ugly caricature” of what was presumed to be a Chinese person.
Chinese netizens said the worker, donning a pigtail, represented a mocking throwback to “Fu Manchu” clichés. It turned out the ad actually depicted a Native American person and had been used in campaigns in other regions, as well.
Regardless, the mistaken outrage helped to further pressure on Apple shares
AAPL,
which have fallen some 13% since the start of August.
But the overriding concern among foreign firms was uncertainty and fear of the whims of Chinese government policy.
In April, Shanghai police raided and questioned employees at the U.S. consultancy Bain & Co. The incident was particularly worrisome in that it came just weeks after authorities closed the Beijing office of Mintz Group, a U.S. due-diligence company, and detained several local employees, making the arbitrary crackdowns seem more like policy than one-off incidents.
As the Chinese economy has continued to stumble and foreign investment has sunk to record lows, President Xi Jinping and other top leaders have shifted their rhetoric and attempted to allay concerns among overseas companies.
“We will continue to vigorously promote high-level opening up and better protect the rights and interests of foreign investors per the law,” Xi said in late June as data on withering inbound investment came in.
The next month, the Commerce Ministry met with leaders of foreign and domestic drug companies in what it said would be regular roundtables to hear concerns and ideas for cooperation with overseas players.
Tanner Brown covers China for MarketWatch and Barron’s.
More dispatches from Tanner Brown:
China’s economy is suffering, and consumers won’t open their wallets — except to see movies
China’s youth job market is a nightmare. It’s changing the face of the country.
China’s property woes offer a window into the demise of the country’s boom times
China is not only asserting itself geopolitically but openly questioning the U.S.’s central role on the world stage
Sometimes, regular riders may be shocked by the cost of an Uber ride, but it’s not something you’d expect the company’s CEO to encounter.
But Wired Editor at Large Steven Levy recently took a 2.95-mile Uber ride in New York City to meet Uber Technologies Inc. CEO Dara Khosrowshahi. When Levy asked Khosrowshahi to estimate the ride’s cost, he casually put it at $20. Much to everyone’s surprise, the price turned out to be $51.69, including a tip for the driver.
“Oh, my God. Wow,” Khosrowshahi exclaimed when he learned the cost of the ride, according to the interview.
And that wasn’t the only shocking price discovery. When Levy initially tried to book the Uber for the interview, the price was $20 higher. Khosrowshahi attributed this to surge pricing, despite it being a sunny weekday morning without any special events.
Khosrowshahi blames the high cost of Uber rides on inflation. In the interview with Levy, he mentioned that inflation has become a part of daily life, resulting in higher prices. The majority of the fare now goes to drivers, leading to a significant increase in their earnings over the past four years, which the Khosrowshahi considers positive.
Don’t Miss:
Uber is experiencing audience growth, with 130 million monthly visitors to its platform. While prices have risen, the services remain compelling, ultimately benefiting the company’s business. Some reports indicate that Uber fares have increased at least four times faster than the rate of inflation.
Uber was one of the most successful startups of all time. It was founded in 2009 by Garrett Camp and Travis Kalanick, and it quickly grew into a global phenomenon. The company’s early investors included Amazon.com Inc. Founder Jeff Bezos, Goldman Sachs and others. These investors saw massive returns when Uber went public in 2019, with their shares soaring by more than 1,700,000% for the earliest investors. Success stories among startup investments have been a large part of the recent growth of equity crowdfunding platforms like StartEngine and Wefunder, including StartEngine raising over $17 million from retail investors.
Some of the price increases are also because Uber is no longer subsidizing rides on a quest for growth and is instead focusing on profit. It seems to be working: This week, Khosrowshahi announced Uber’s first operating profit. Uber’s net income surpassed expectations at $394 million instead of the projected $49.2 million loss.
To stay updated with top startup news & investments, sign up for Benzinga’s Startup Investing & Equity Crowdfunding Newsletter
Uber’s pricing has increased steadily in recent years because of a number of factors, including increased competition from other ride-hailing apps, investments in new features and services and the rising cost of living.
The impact of Uber’s price increases on drivers has been mixed. Some drivers have complained that the increased prices are making it difficult for them to make a living, while others have said that the higher fares are worth it for the increased demand.
Khosrowshahi also revealed a unique approach to team motivation, stating that even after achieving profitability, he intends to find reasons to criticize their performance or find another reason why they “suck.” This underdog mentality has been instrumental in driving the team to achieve their goals in the past. Embracing this mindset allows them to remain focused, hungry for improvement and committed to continuous success.
See more on startup investing from Benzinga:
Don’t miss real-time alerts on your stocks – join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
This article Uber CEO Shocked By The Cost Of A 2.9-Mile Ride: ‘Oh My God. Wow.’ But Company Celebrates First-Ever Operating Profit Of $394 Million originally appeared on Benzinga.com
.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
NEAR Protocol’s Blockchain Operating System (BOS) is a novel approach to the world of web3 that looks at the entire blockchain ecosystem and attempts to create a framework to abstract “janky” usability and complex user journeys.
Originally announced in October 2022 and followed by the launch of the first gateway in May 2023, the BOS initially faced skepticism from the NEAR community and investors. However, it has since gained traction and is now deemed a “game-changer for all blockchains going forward,” according to NEAR Protocol in a recent Medium article.
“We can confidently say that not only do we understand the BOS vision, but that we’re convinced it offers a unique competitive advantage, and an exceptionally forward looking and strategic move for NEAR Foundation and Pagoda to go all-in on, during the 2022 bear market.”
Simplifying blockchain interaction
The NEAR core team claims to have prioritized usability since the project’s inception, aiming to overcome the complexities and difficulties users often encounter when interacting with blockchain technology.
By connecting blockchain applications with “user-friendly pathways,” the BOS aims to allow businesses to create and integrate seamless entry points to specific use cases within the blockchain, hiding the underlying complexity from users who experience a simplified interface tailored to the application’s preferences. NEAR describes the BOS as follows:
“The BOS is your all-in-one solution, for connecting a user or a business to an application on a blockchain, as if they were just using the internet to browse for Amazon clothes.
The BOS connects the janky and painful world of the internet of value with the intuitive and relatively familiar world of the common internet (sometimes referred to as Web2.0).”
Real-world applications showcased
NEAR’s article outlines some potential example use cases for a BOS, including a commonly-touted “Steam Gaming On-Chain” gateway, which would offer one-click access to any web3 game on NEAR, Ethereum, and Solana. This gateway could feature a game item marketplace that enables users to easily play, earn, sell, trade, and custody their game items with a $10 monthly payment for access to 50+ games with no upfront costs.
Current methods of using multiple chains and bridges to facilitate cross-chain interaction are far from optimal, as anyone who has interacted with web3 dApps will surely agree.
In NEAR’s vision, the idea is for the BOS to further enable a global blockchain account marketplace, where users could purchase a named ID from any blockchain ecosystem, providing a single domain marketplace for all blockchains.
NEAR’s role in the BOS ecosystem
NEAR believes that the BOS not only simplifies user experiences but also plays a crucial role in monetization within the NEAR ecosystem. NEAR tokens will serve to ” anchor the entire system,” acting as the medium of exchange for licensing or implementations between dApps, widgets, and gateways. While gateway providers purchase and stake NEAR tokens to cover transaction fees and other user actions that may incur a cost on-chain.
“BOS is positioned to project NEAR into the top 10 most important digital assets in the world, while also opening up the floodgates to an entirely new user base.”
BOS: A vision for interoperability
The vision of the BOS is to position NEAR as the central blockchain connecting all other blockchains, a concept that has been proposed before but not with the product stack that BOS introduces. Co-Founder of NEAR, Illia Polosukhin, described the Blockchain Operating System stack as follows:
“Near Discovery (featured gateway: http://alpha.near.org)
NEAR Social (contract)
NEAR Onboarding (Fast Auth)
NEAR Data (Query API)
NEAR Protocol (still an L1)”
NEAR states that the OBS is a long-term approach that will take years to fully integrate but is expected to create a durable foundation for NEAR to eventually incorporate multi-chain components and dApps.
While the BOS brings forth a promising future, it’s essential to recognize the potential risks and challenges associated with its implementation. NEAR clearly identified the network effect of Ethereum in its article and the challenges a younger blockchain such as NEAR faces in the face of competition.
As the BOS continues to develop, it promises an ever-expanding ecosystem of widgets, dApps, and gateways for various blockchain-use cases and an increasing number of daily active users.
