💭💰🚛 Tesla Triumph, Arrival Adieu, United Super Loss, Yellow’s Bid Back on Track
Good morning! ☀️
Welcome back to "The Workday Dash" - tour daily sprint through the latest in relevant supply chain news headlines. (Or, what we think - anyway.)
From Tesla's triumphs to Arrival's setbacks, we've got the lessons you need. Let’s navigate United Airlines' turbulence and the fiery revival of Yellow Corp.'s asset acquisition bid. Stay ahead of the curve with us. 🌟
“I find that the harder I work, the more luck I seem to have.”
Arrival | EV | Bankruptcy
Lessons Can Be Learned from Tesla's Success and Arrival's Demise
Starting a new automaker is no easy feat, and it's been a rarity in the last four decades. It's not just about designing a car but also establishing the necessary infrastructure. Tesla, led by Elon Musk, broke into this closed club, revolutionizing the industry with electric vehicles at scale. Despite recent controversies surrounding Musk, his entrepreneurial prowess remains unparalleled.
However, most EV startups have struggled. Arrival, once valued at $13 billion, is now filing for bankruptcy in the UK. Despite initial promise and big goals, including reinventing vehicle design for sustainability, Arrival couldn't deliver a single vehicle. With its assets up for sale, it joins a list of bankrupt EV companies, highlighting the challenges beyond Tesla's success in the market.
Read more about this at The Street >
WHY IS THIS IMPORTANT?
Think of it like a rollercoaster ride. The ups and downs of electric vehicle startups like Arrival show us where the transportation game is headed. Keeping an eye on these shifts helps us predict what's coming and tweak our plans accordingly. Arrival's bankruptcy is a wake-up call for us. It reminds us to have a Plan B (… and maybe even a Plan C) in place. Relying solely on one EV manufacturer? Maybe that isn’t a great idea. Diversify your options to avoid getting stuck in a jam.
Wins and losses shape where investors put their money and how the industry paves the road to greener, more sustainable transportation solutions.
🔥 OUR HOT TAKE?
While Elon Musk and Tesla have been hailed as pioneers in the electric vehicle space, the reality for many other EV startups has been far from glamorous. Despite its $13 billion valuation at one point, Arrival's recent bankruptcy paints a stark picture of the challenges faced by newcomers in the industry.
We hope to see some wins in the field soon.
United | Loss | Fee
United Airlines Faces $2 Billion Loss Since Scrapping Flight Change Fees
United Airlines made headlines three years ago when it axed flight change fees, a move that has cost the company an estimated $2 billion. While economy and premium ticket holders benefited from this policy change, basic economy passengers still have to foot the bill. Since 2020, over 10 million customers have taken advantage of the fee waiver, with millions altering flight times or airport destinations.
In addition to this financial hit, United's recent Super Bowl commercial (featuring Kyle Chandler reprising his "Friday Night Lights" role as Coach Taylor) aimed to inspire fans to book flights without fretting over change fees. The airline also targets specific markets with tailored television ads while posting strong Q4 2023 earnings, prompting CEO Scott Kirby's optimism for the future despite United's stock seeing an 18% decline over the past year.
Read more about this on Entrepreneur >
WHY IS THIS IMPORTANT?
With United reporting such a loss, it's bound to change how people are thinking about the airline. That could affect cargo transportation and logistics too, especially for any urgent shipments.
United's decision is just one example of how the airline industry is evolving to keep customers happy, and how it may not always be the right choice. We need to keep an eye on these trends to stay ahead of the game and keep our own customers satisfied.
🔥 OUR HOT TAKE?
Let’s take a closer look at the fine print. While it's undoubtedly convenient for some travelers to switch up their plans without extra charges, the airline industry is a business - not a charity. United's $2 billion loss is no small change, and someone's will need to make up for it. This move could set a dangerous precedent, with other airlines feeling pressured to follow suit, potentially leading to higher ticket prices or reduced services down the line.
So while it's wonderful to have flexibility, let's not forget that there's no such thing as a free lunch… especially in the cutthroat world of air travel.
Yellow Corp. | Bid | Acquisition
Yellow Corp. Asset Acquisition Bid Rekindled
A bid to acquire the remaining assets of bankrupt Yellow Corp. might be back on track, as a ballot sent to local union heads suggests. The proposal involves settling WARN Act claims against Yellow with Next Century Inc., a startup led by Sarah Amico, who previously attempted to acquire Yellow. The plan offers equity in Next Century and potential reemployment for up to 14,000 former Yellow workers. If approved, the Teamsters union could settle claims on behalf of its members. Employees not rehired by Next Century could possibly receive preferred shares or a repayment plan.
Yellow has repaid its loans and secured creditors, but unsecured claims, including pension liabilities and WARN Act claims, remain unresolved. Details on Amico's financing plan are awaited, with opposition from Yellow and creditors' advisers reported.
Read more about this at Freight Waves >
WHY IS THIS IMPORTANT?
If Yellow Corp. gets bought up by Next Century Inc., there's a chance they might bring back some of their old employees. This could change how unions negotiate and how happy workers are, which in turn affects how smoothly things run in trucking and logistics.
If Yellow Corp. gets a new owner and restructures, it might change who's on top in our industry. This could mean different companies grabbing more market share, changing their prices, or offering new services.
🔥 OUR HOT TAKE?
Some might argue that the proposed bid to acquire the assets of bankrupt Yellow Corp. represents a silver lining for the company's former employees.
However, skeptics may be questioning the feasibility and fairness of the plan, particularly regarding the settlement of WARN Act claims with equity in a startup company. While it could provide a lifeline for some workers, others may view it as a risky gamble… the lack of details on Amico's financing plan raises concerns about the transparency and sustainability of the proposed deal. We shall see what happens next!
Daily Riddle:
I am a financial state that many dread,
When debts pile high and funds have fled.
Companies fear me, their assets I seize,
Leaving creditors seeking what they please.
What am I?
Feb 9 Answer: Drought
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 22, 2024, from iLevel Logistics Inc.