US

Amazon Achieves Record Prime Delivery Speeds

Amazon has significantly improved its Prime delivery speeds, delivering over 5 billion packages with same-day or second-day service this year, a 30% year-on-year increase. The majority of these deliveries were made through Amazon’s logistics on behalf of independent sellers, who account for over 60% of sales. Prime’s product offerings and delivery speed have vastly improved, now offering over 300 million items with free delivery. The faster delivery is attributed to Amazon’s regionalized network and advanced machine learning algorithms predicting product demand. The distance between fulfillment centers and customers has been reduced by nearly 10% in the first half of 2024.

Walmart’s Membership Week Grows Stronger

PYMNTS research shows Walmart’s Membership Week (Walmart+ Week) saw participation rates double those of last year, closing the gap with Amazon’s Prime Day. While 40% of consumers shopped during Prime Day, 20% participated in Walmart+ Week, up from 12% in 2022. Walmart+ Week’s average spending per shopper was 45% higher than Prime Day. Walmart aims to convert more shoppers into Walmart+ members to compete more effectively. Prime membership covers over two-thirds of the U.S. population, compared to Walmart+’s 9.1%.

Kamala Harris Joins TikTok, Energizes Young Voters

U.S. Vice President Kamala Harris officially joined TikTok on July 25, 2024, posting her first video on her @kamalaharris account. The video quickly went viral, garnering 5.8 million views in just six hours and attracting 1.1 million followers. Harris’s presence on TikTok underscores the platform’s importance for politicians seeking to engage younger voters. TikTok’s user base is predominantly under 35, with over a third using the platform for political updates. Harris’s initial video has reached 26.6 million views, significantly boosting her social media influence.

Globe

FedEx Expands International E-commerce Services

FedEx has extended its FedEx International Connect Plus (FICP) service to the U.S. and Europe for Asian e-commerce sellers. Initially available to sellers in Mainland China, Hong Kong, and Japan, this expansion aims to support cross-border e-commerce growth. The service promises cost-effective shipping solutions with delivery in 2-3 business days. By 2030, Asia’s e-commerce sales are expected to reach $13.21 trillion, with a 17.6% annual growth rate. This expansion reflects FedEx’s strategy to combine fast delivery with cost efficiency to meet increasing demand.

Hapag-Lloyd Increases Shipping Rates

Hapag-Lloyd has announced significant increases in shipping rates from India and Pakistan to the Mediterranean and North Africa between August 15 and August 31, 2024. Base rates for 20-foot and 40-foot containers will rise by $600. This hike affects destinations in both the western Mediterranean, including Spain, Portugal, and Italy, and the eastern Mediterranean and Black Sea regions, such as Greece, Turkey, and Egypt. The final costs may vary due to factors like additional fees and local charges.

Publicis Groupe Acquires Influential for $500 Million

Publicis Groupe has announced a major acquisition deal to purchase Influential, the world’s top influencer marketing company, for $500 million. Influential manages a network of over 3.5 million creators, with 90% having over a million followers. This acquisition will integrate Influential’s platform with Epsilon’s data analytics, enhancing targeted marketing opportunities. Publicis anticipates that global social media spending will surpass TV advertising by 2025, reaching $186 billion. The group’s Q2 2024 organic growth increased by 5.6%, with net revenue hitting approximately $3.8 billion.

Amazon in Talks to Acquire Indian Fintech Firm Axio

Amazon is in advanced negotiations to acquire Indian fintech platform Axio for $150-$175 million in an all-cash deal. Axio, formerly Capital Float, already has Amazon as a stakeholder, providing Buy Now, Pay Later (BNPL) services mainly to Amazon customers. The acquisition will bolster Amazon Pay’s capabilities in India. Axio’s revenue doubled to 2.2 billion INR in the fiscal year 2023, despite a slight increase in losses. This will be Amazon’s second fintech acquisition in India, following the purchase of Emvantage.

Procter & Gamble Reports Steady Growth Amid Challenges

Procter & Gamble’s Q4 2024 earnings report shows a 4% organic sales growth, marking the sixth consecutive year of at least 4% growth. The company’s net sales reached $84 billion, with a net income of $3.14 billion. Despite economic and geopolitical challenges, P&G focused on product performance, packaging, and customer value to sustain growth. The company is restructuring its operations in markets like Nigeria and Argentina, incurring significant costs. North America and Europe showed strong performance, but future growth depends on China’s economic recovery.

AI

OpenAI Rolls Out Upgraded ChatGPT Voice Mode to Plus Subscribers

OpenAI has introduced an enhanced Voice Mode for ChatGPT, offering more natural-sounding audio conversations, currently available to select ChatGPT Plus subscribers. This advanced mode enables real-time, emotionally responsive conversations and allows users to interrupt and modify responses. The rollout aims to refine the feature before wider access in the fall, with plans to publish a detailed report on the underlying GPT-4o model. This update follows OpenAI’s earlier promise to expand Voice Mode capabilities, which now include faster response generation and better instruction adherence.

Gartner Predicts 30% of Generative AI Initiatives Will Fail by 2025

According to new research by Gartner, at least 30% of generative AI projects will be abandoned post-proof of concept by 2025. These findings were presented at Gartner’s Data & Analytics Summit, highlighting the high costs and financial burdens of deploying generative AI models. Early adopters are facing challenges in justifying investments, with custom AI models costing up to $20 million. Despite varied business improvements, including revenue increases and productivity gains, the substantial costs have made it difficult for companies to realize immediate returns on investment.

Meta Launches AI Studio That Lets Anyone Create Custom Chatbots

Meta has launched AI Studio, a platform enabling users to create custom AI chatbots for Instagram, Messenger, and WhatsApp. Powered by Meta’s Llama 3.1 AI model, AI Studio allows users to design “AI characters” that can interact with social media followers. This platform aims to help businesses and creators automate responses and engage with their audiences more efficiently. Initially available to U.S. users, AI Studio includes customization options for both personalities and response tones, with plans to expand access and functionality in the future.