In Affärsmodellbloggen, Weekly disruption feed

Corona virus & Chinese supply chains

As the Corona virus has spread, business models built around supply chain dependencies on China are starting to suffer greatly. Tech firms, car manufacturers, retail etc are sure to get hit this quarter and likely the effects will be long-term. Already the stock market is punishing companies with high exposure to China, most have underperformed S&P500 by 5% since early January. Tech firms, such as Apple, are apparently most at risk.

“Coronavirus has significantly affected Foxconn (Apple’s biggest production partner), which is expected to be operating at only 50% capacity by the end of February, and 80% capacity by the end of March, Reuters reported this week.”

Related article: The new coronavirus could have a lasting impact on global supply chains
Related article: Apple’s coronavirus problem

Uber plans to be profitable by the end of 2020

The unprofitable growth continues for Uber, during 2019 the company lost $8.9 billion. However, during 2020 they plan to make a turnover and make the fourth quarter profitable.

Nelson Chai, CFO at Uber, stated “We recognize that the era of growth at all costs is over,”. There is some work to be done looking at the billion-dollar losses that has been shown year after year.

Related article: Uber expects to be profitable by the end of 2020

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