Delivery Pay Hikes Gone WrongMarket Sizzle: Consumer confidence drops, grocery price wars, delivery pay hikes, and shipping chaos
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Food-delivery apps increased fees after new wage laws. This led to fewer orders and unhappy customers. In New York City, driver pay rose to $19.56 an hour. Orders dropped as app fees climbed. In Seattle, orders for Uber Eats fell 45%. Shoppers now pay higher delivery fees. This has made many stop ordering and start picking up food themselves. Drivers struggle with fewer shifts and less flexibility. Many protest, saying new rules hurt more than help. Restaurants also see fewer orders. Owners now hire delivery drivers as staff. Delivery times have increased, with complaints of cold food. Overall, higher driver pay leads to higher consumer costs. This causes fewer orders and more frustration for everyone involved. Consumer Confidence Takes a Hit
US consumer confidence dropped in June. The index fell to 100.4 from 101.3 in May. Predictions were for a reading of 100. Confidence has been low due to higher living costs and borrowing expenses. Only 12.5% expect better business conditions soon. Concerns about the future are growing. Despite this, current job market views improved a bit. More people said jobs were "plentiful," up from 37% to 38.1%. Plans for big purchases like cars and appliances dropped. But, more people plan to vacation later this year. Inflation concerns eased slightly, yet grocery prices remain high. If the labor market weakens, confidence could drop further. Grocery Price War Begins
Grocery stores are cutting prices to bring back shoppers. High food prices made people buy less. They are buying online, in bulk, or just less food. People are putting fewer items in their carts. They spend 3.1% less on groceries than last year. Stores sold 3 billion fewer items this year. To win back customers, stores are offering big discounts. Target cut prices on 5,000 items like milk, meat, and coffee. Kroger wants to grow sales again. Walmart lowered prices on 7,000 products. Most people say high prices make them buy less. Stores hope price cuts will bring shoppers back. Shipping Chaos Hits Hard
Attacks in the Red Sea are causing major shipping delays. Ports are crowded, and shipping costs are rising fast. Ships are backing up in Singapore, Malaysia, and China. The disruptions are slowing down deliveries everywhere. Food and manufactured goods are taking longer to arrive. Some retailers are even using expensive air freight. Shipping a 40-foot container now costs over $4,000. That’s more than triple last year’s price. These problems began with Houthi rebel attacks. Ships are rerouted around Africa, adding many days to travel. Ports in Europe are also jammed. The delays are making everything more expensive. This chaos may continue, causing more headaches and higher costs. Quick Sizzles
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Selasa, 25 Juni 2024
Delivery Pay Hikes Gone Wrong
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