— Uber Eats Develops AI Ordering Assistant; 150,000 Auto Workers May Strike; BYD Sees Slowest Revenue Growth in a Year; UAE Healthcare Giant Makes Another Acquisition; Saudi PIF Buys Aircraft Leasing Firm; CSI 300’s 5.5% Surge Fades; 3M to Pay $5.5 Billion Settlement
1. Uber Eats Develops AI Ordering Assistant
According to Bloomberg, Uber Eats is developing an AI chatbot to help users find restaurants and manage orders, joining the fierce race to integrate AI into apps.
Developer Steve Moser revealed the AI assistant can recommend dishes based on user budget and cuisine preferences.
Uber Eats generates about one-third of Uber’s total revenue. Competitor DoorDash is currently building a similar tool called DashAI, and Instacart is using OpenAI’s ChatGPT technology.
AI assistants could speed up ordering and better match users with couriers.
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2. 150,000 Auto Workers May Strike
The United Auto Workers union, representing 150,000 auto employees, warned it would launch simultaneous strikes at GM, Ford, and Stellantis if no labor agreement is reached by September 14.
Union president Shawn Fain, 54, said the deadline is non-negotiable. The union is demanding a 46% wage increase and a 32-hour workweek.
As white-collar jobs became more flexible post-pandemic, factory and service workers — once at highest infection risk — now seek better work-life balance and compensation.
Fain also aims to secure stronger benefits for EV battery factory workers.
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3. BYD Sees Slowest Revenue Growth in a Year
According to BYD’s latest earnings report, the automaker posted ¥140 billion in revenue in the quarter ending June 30 — a 67% year-over-year increase, the slowest growth in over a year.
However, net profit more than doubled, driven by record-breaking sales of hybrid and fully electric vehicles.
For the first half of 2023, BYD expects net profit between ¥10.5 billion and ¥11.7 billion. Despite intensified competition in China’s EV market, the company weathered the storm with aggressive discount strategies.
At the Chengdu Auto Show last weekend, BYD unveiled a more affordable new Tang EV.
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4. UAE’s Largest Health Firm Makes Another Acquisition
Abu Dhabi-based healthcare firm Pure Health agreed to acquire the UK’s largest private hospital operator, Circle Health Group, at a $1.2 billion enterprise value. The deal is expected to close in Q1 2024.
Earlier this year, Pure Health also acquired a minority stake in US-based Ardent Health Services.
Pure Health’s largest shareholder is Abu Dhabi sovereign fund ADQ, which consolidated multiple entities to make Pure Health the UAE’s top healthcare provider.
Circle Health operates 53 hospitals — this will mark Pure Health’s first entry into the UK market.
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5. AviLease Buys Aircraft Leasing Firm
AviLease, backed by Saudi Arabia’s Public Investment Fund (PIF), has agreed to acquire Standard Chartered’s aircraft leasing unit for $3.6 billion.
Saudi Arabia is heavily investing in non-oil sectors like tourism and sports, with AviLease being one of its key growth vehicles.
The deal will give AviLease ownership of 100 aircraft and management rights over a total of 167 planes.
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6. CSI 300’s 5.5% Surge Fades
On Monday, China’s CSI 300 Index jumped as much as 5.5% after the market opened but closed with only a 1.2% gain.
Traders believe that since current policies have failed to reverse bearish sentiment, regulators may roll out more aggressive support measures.
The sharp volatility shows foreign investors want concrete signs of economic recovery before redeploying capital into Chinese markets.
Bloomberg reports global funds sold $1.1 billion worth of mainland Chinese shares.
China’s July industrial profits continued to decline.
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7. 3M to Pay $5.5 Billion Settlement
Sources say 3M has agreed to pay $5.5 billion to settle over 300,000 claims related to defective combat earplugs sold to the US military — avoiding potentially larger liabilities.
The payout is half of what analysts had expected, which sent 3M shares up 5.8% today.
University of Richmond law professor Carl Tobias said 3M reached a relatively favorable settlement.
In 2022, veteran James Beal was awarded $77.5 million by a Florida court after suffering hearing loss while wearing 3M earplugs. Many similar cases are pending.
The lawsuit has troubled 3M for over five years, and the actual settlement cost is much lower than previous estimates.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.