Branson’s Bexit Woes; IKEA is the Latest Company to Issue Recall; Airbnb Takes on San Francisco

Pound it out…

ID-10073893

Image courtesy of supakitmod/FreeDigitalPhotos.net

Add Sir Richard Branson to the ever-growing list of Brexit haters. And he’s right to be hating on it. Besides the fact that global stocks took a $3 trillion hit on Friday and Monday,  Branson estimates that his own company, the Virgin Group, already lost a third of its value. Branson went on to say that, “We are heading towards a disaster. I don’t believe the public realized what a mess their vote would cost.” And considering he’s worth close to $5 billion, he probably knows a thing or two about the downsides of the Brexit. He’s convinced Britain is on the fast lane to recession territory and thinks a second vote is in order as 4 million people have already signed a petition urging a new referendum. Ironically, the billionaire has no voting rights in Britain since he doesn’t actually live there but rather in the British Virgin Islands. However, his company employs 50,000 people in the United Kingdom, most of whom do have voting rights, presumably. I hope none of them were foolish enough to vote in favor of the Brexit. I’d hate to be “that guy.” In any case, Branson feels that the British public was not adequately informed about the potentially disastrous consequences. He warned that thousands of jobs would be lost and even had to put the kibosh on one of his own deals that was in the works.

 

No words…

ID-100246924

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

There’s yet another recall in effect and this time it doesn’t even have to do with Volkswagen. Sadly, this recall comes courtesy of IKEA, which had to recall some 29 million dressers that caused the deaths of six children, all under the age of four.  Another 36 have been injured. The most recent tragedy occurred as recently as this past February. These dressers included six styles from the company’s MALM line, that cost between $70 and $200, and were manufactured between January 2002 and January 2016. The company will issue full refunds for the furniture in question but is also offering wall-anchoring repair kits and even free one-time installations upon request should consumers wish to keep their dressers. Just 30,000 repair kits have been issued which represents but 1% of the total amount of dressers that were sold and still require anchoring. Regulators had called the dressers unsafe. The recall affects about half of the dressers that IKEA sells in the US.

Home bitter home…

ID-10041817

Image courtesy of supakitmod/FreeDigitalPhotos.net

It’s Airbnb v. the city of San Francisco, with the home-sharing site charging that the city is violating the “Communications Decency Act, a federal law that prevents the government from holding websites accountable for the content that is published by their users.” It all started when San Francisco lawmakers decided to impose tougher rules for Airbnb and friends, which stipulated that the site could only post listings from renters registered with the city. The problem is, according to Airbnb, home-sharers were often confused by the process, which continues to be mired in the usual mess we call bureaucracy, and takes months to complete – months that could be used earning additional incomes from their homes. San Francisco wants Airbnb to enforce its rules, that listers be removed from the site unless they are registered. If Airbnb does not comply, the company could face fines of up to $1000 per day and even jail time for some employees. Mind you, only 20% of listers who rent out their homes for less than thirty days are registered with the city. Lawmakers want Airbnb to do its dirty work for them and remove the remaining 80% of listers from the site. Airbnb operates in more than 200 countries and has a valuation of $25 billion, at least as of today.

Advertisements

Unfit IPO Debut for Planet Fitness; Lost That Lovin’ Feeling…For Shamu?; If it Looks Like an Engineer, and Quacks Like an Engineer…

Fit to be fried…

Image courtesy of marcolm/FreeDigitalPhotos.net

Image courtesy of marcolm/FreeDigitalPhotos.net

Planet Fitness made its New York Stock Exchange debut but it looked more like Planet Fizzle as the stock, which tried to open at the high end of its range, stumbled on its very first day of trading. The company, notable for its $10 gym membership fees, offered 13.5 million shares and managed to raise $216 million despite its less than impressive open. The company, however, tried to give a good showing on Wall Street today, cleverly handing out all sorts of yummy, unhealthy goodies while engaging the crowds with games like musical hand chairs. That was not a typo. Laugh all you want, but Planet Fitness has over 7 million members, 1 million of whom joined within the last twelve months. Its membership is up over 24% from last year. There are very few companies who pulled that off recently. By the way, the company has 33 straight quarters of growth under its svelte fiscal belt, and saw $280 million in revenue. Add that to its 976 stores in 47 states, Puerto Rico and Canada. and that 9% hit the stock took today doesn’t seem so bad after all.

Was it something I said…

Image courtesy of Liz Noffsinger/FreeDigitalPhotos.net

Image courtesy of Liz Noffsinger/FreeDigitalPhotos.net

Things just keep getting fiscally uglier for Shamu and all his water-loving pals as Seaworld Entertainment cranks out yet another soggy quarter. Despite big promotions and a whale of a marketing campaign, attendance at the marine theme parks continued their downward slide. Brass at the company admitted they are continuing to deal with “brand challenges” which is basically code for the negative publicity the company suffered as a result of the very unflattering 2013 documentary “Blackfish.” And just how bad is attendance? Under 6.5 million people stopped by to hang out with the sea creatures, which was a 2% drop from the same time last year. Revenue, which was $391.6 million, is also down 3% from a year ago. But it’s the 85% plunge in profit, down to $5.8 million, that’s really got me questioning if people just don’t dig acrobatic dolphins and comedic sea lions.

If looks could kill…stereotypes…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

So what exactly does an engineer look like? Just ask 22 year old Isis Wenger. She’s got big plans to show the world on a billboard in San Francisco after some very rapid, enthusiastic crowd-funding. It all started when some people naively felt Wenger didn’t look like a “traditional” engineer. She then started the buzz-worthy hashtag #ILookLikeAnEngineer only to discover that there was a whole universe of engineers who also…look like engineers. 75,000 tweets later, including one from engineer and GM CEO, Mary Barra, not to mention a slew of other high-ranking female engineers from some of the world’s top companies, Wenger, together with engineer Michelle Glauser, started an Indiegogo campaign to put up a billboard in San Francisco featuring the diverse engineering community and its stereotypical misconceptions. Hoping to raise $3,500, they instead raised over $7,800…in less than 24 hours.

Where in the World is Über?; Harvard Professor Gives Whole New Meaning to Chinese Take-out; See Which Company Made “The List”

Mo’ money, mo problems…

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Über just picked up another $1.2 billion in funding and is now valued at $40 billon. Awesome, right? Not even close. On the heels of its most recent “tracking-customers” scandal comes even more…problems. So on which part of the globe should we begin? How about Portland, Oregon? You might have downloaded the Über app there but don’t bother using it. Hours after it launched, the city put the kibosh on the ride-sharing device. In Über’s home state of California, San Francisco D.A. George Gascón and Los Angeles D.A. Jackie Lacey have filed suit against Über for, among other issues, not being totally honest about the quality of the background checks it conducts on its drivers. Which brings us to Chicago where an Über driver allegedly raped a female rider. And just because gambling and prostitution is legal in Nevada, that doesn’t mean Über is. Yes, oddly enough, it’s banned there too. On the other side of the pond, good luck finding an Über ride. Denmark and Norway have filed complaints, a Dutch court ruled it illegal, France has yet to decide, while Spain already but the brakes on Über’s operations. In Asia, Thailand also nixed the service and India’s having huge issues with it as well. But on his blog, Travis Kalanick did mention that Über operates in 250 cities on 50 countries. He must mean on a different planet.

Can I get the sauce on the side?

Image courtesy of patrisyu/FreeDigitalPhotos.net

Image courtesy of patrisyu/FreeDigitalPhotos.net

If you’re going to overcharge your clientele, you best make sure they aren’t professors from Harvard’s Business School. Just ask Sichuan Garden’s Ran Duan. Except, he’s not so talkative lately. When Professor Benjamin Edelman ordered four dishes from the Boston eatery, he was over-charged a dollar more than the advertised price on the restaurant’s website.  So Professor Edelman, who, by the way,  fiercely and diligently took on the airline industry for misrepresenting fees, did the same with Mr. Duan. First, the professor suggested that Sichuan Garden refund him three times the amount of the over-charge. Mr. Duan, instead, offered to refund $3.00. After several emails were exchanged, which seemed to only fuel Professor Edelman’s irritation, he decided it was time to take the issue to the regulators, just as he had done with the airlines.  The lesson is? Well, there are several, aren’t there.

You call this work?

Image courtesy of portal/FreeDigitalPhotos.net

Image courtesy of portal/FreeDigitalPhotos.net

Is your company on Glassdoor’s 2015 50 Best Places to Work list? If not, maybe it’s time to polish your resume and start spending lots of time on LinkedIn, which by the way, takes the number 23 spot. It’s no surprise, I guess that Google made the list. After all, didn’t Vince Vaughn and Owen Wilson make a movie just about being interns there? However, this was the first time Google took the top spot. Among the many storied perks behind the company is twelve weeks maternity leave…for the father. So where does that leave mom? With an additional six weeks’ quality time with baby. Thinking of trekking down to Antarctica? Bain and Company, which ranks second, has got an expedition with your name on it. Just make sure they have a position you can fill. Facebook ranks at lucky #13 with one employee writing about it: “Transparency. Trust. Compassion. Food.” ‘Nuff said. Got IT problems? Great. Grab a beer and talk it over at Zillow’s “IT Happy Hour.” The real estate site ranks 33. Who is not in the top 50? Glad you asked. Twitter is noticeably absent from top 50 this year presumably thanks to some management “changes.”