In today’s top news, new research shows that more than 100,000 SMBs will fold due to the pandemic, and Uber has reportedly made an offer for Grubhub. Plus, Green Dot reported positive earnings.
The ongoing coronavirus pandemic will bring the end of more than 100,000 small and medium-sized businesses (SMBs), triggering a tsunami of bankruptcies nationwide, new research shows. The data suggests at least 2 percent of SMBs are already gone due to the economic fallout from the worldwide pandemic.
Rumors are again circulating about a possible Grubhub purchase: this time, by Uber. Much about the deal remains unknown, such as what amount Uber offered, but the resurgence of the acquisition rumor pushed Grubhub's stock price up by nearly 40 percent after the reports broke.
If the landscape of how we bank is changing — toward digital-first firms, of course — the question arises: Just what is a bank? In its earnings report, Green Dot gives us a glimpse of the answer.
As thousands of complaints about airlines flood the Department of Transportation (DOT), the department is issuing a warning to airlines: Don’t renege on obligations. In April and May, the DOT received over 25,000 complaints about airlines, compared to usually 1,500 in a normal month. The fallout from the pandemic is likely to include even more requests for refunds over the next few months.
Africa has long lagged global penetration rates covering the use of both smartphones and digital payments, but the pandemic is rapidly changing that. Jumia Chairwoman Juliet Anammah, head of a commerce site dubbed the "Amazon of Africa," tells Karen Webster that pandemic-induced social distancing and fear of cash is leading to a rapid ramp-up of online sales and digital payments as African consumers increasingly choose purchases that are safe, secure and reliably delivered on time.
Selling iced tea in summer is big business, and one that requires beverage brands to manage supplier payments for everything from tea leaves to bottle caps. Issues arising from invoicing errors can shortchange suppliers or bleed buyers dry with overcharges, however. In this month’s Next-Gen AP Automation Tracker, Eric Forry, vice president of finance for Argo Tea, discusses how three-way invoice matching and real-time invoice assessment can help brew up better business.
While a V-shaped recovery is the most desirable, it's increasingly looking like that's not in the cards. Federal Reserve Chairman Jerome Powell warned that the length of the health crisis has wreaked “lasting damage” to the economy’s productivity and sees a V-shaped recovery as bordering on non-existent.