Subway has always been a popular eatery across America with several outlets. The attracting menu offered by Subway has saturated the American market in the last few years. However, in 2016, Subway restaurants closed down 359 of its outlets, which can be termed as one of the biggest retrenchments in the history of the restaurant. Subway has been making remarkable efforts to restore its status by eradicating antibiotics from its chicken and using care-free eggs. This is expected to attract several health-freak consumers in the next few years.
Rising Number of Competitors to Restrict Growth
America has witnessed an emergence of several new outlets serving fast food, which has gained immense popularity in the last few years. This has resulted in shut down of hundreds of domestic locations in America. In 2016, the company lost around 350 locations in the U.S.; however, the brand still remains a popular eatery after McDonald’s.
Furthermore, the marketing strategies and advertising techniques that are being used extensively by rival brands have contributed significantly towards the downward trend of Subway restaurants across America. Thus, the brand is making efforts to cope up with the industry’s heavy dependence on promotions and discounts. The introduction of delivery services by Subway for its consumers is likely to attract a large number of consumers in the near future.
Emergence of New Products to Encourage Growth
As per the statistics provided by MillerPulse Data, the sales of subway restaurant products has dropped 0.6% in the last four months. However, on an international level, this popularity of Subway is increasing substantially. The marketing team of Subway is working on introducing new and healthy products to gain the competitive advantage and retain its leading position across America. This is likely to supplement towards the overall development of the brand name in the coming years.
Despite consistent efforts and change is marketing and designing plans, EBay was unable to convince investors that these efforts were taking shape, especially as its reporting sales growth continued to trail e-commerce goliath Amazon.com Inc.
Among the recent changes made in the way the firm functions, the key decisions taken by Devin Wenig, EBay’s Chief Executive Officer, include redesigning the website’s homepage so as to make it more personalized for visitors, up its expenditure on marketing, and making navigating through 1 billion listings much easier. These efforts resulted in a sales gain of 3.7 per cent in Q1, which is almost similar to that registered in the previous period. EBay parted ways with PayPal Holdings Inc. nearly two years ago and since then, CEO Devin Wenig’s aim has been to make the firm a place where customers go to for novel items otherwise not found on Amazon.
An industry analyst is of the opinion that the company has been struggling to present consistent results and even though the previous quarter exhibited promising growth, this quarter has been rather uninspiring, only affirming its inconsistency.
What the Numbers Reveal
In the first quarter of the current year, EBay earned 2 million new active buyers to reach a total of 169 million. This is a rise of 4 per cent from the same period the year before. As far as the gross merchandize volume is concerned, the company reached US$20.9 billion, reporting a 2.4 per cent increase in terms of the value of goods via transactions. However, this is almost similar to the growth reported in the last quarter. The e-commerce company’s shares dropped 4.5 per cent after wrapping up at US$33.85 at the New York Stock Exchange.
PayPal announced its collaboration with Google’s Android Pay as PayPal intends to work beyond conventional means that stretch to mobile applications and regular retailers. This partnership will allow PayPal to be a method of payment for users through Android Pay service. Thus, users will have the convenience using this payment service for Uber, Walgreens, Subway, and Dunkin’ Donuts in the near future. The service will enable users to see their balance on PayPal along with letting them include their cards to the account in the coming next months. Google’s digital wallet has brought the rivals to agree on a common ground, making the purchasing experience easier and convenient for users.
The moves is in line with the company ongoing efforts to collaborate with rivals as it did with Visa. The partnership between Visa and PayPal has allowed users to make payments via smartphones. Additionally, it also allowed Venmo users to withdraw money from their Venmo account that is linked to Visa cards. PayPal has been sincerely making efforts to be a part of the digital payments landscape.
Apple Emerges as a Strong Contender
PayPal has joined hands with MasterCard for enabling store payments. This collaboration has allowed PayPal’s Braintree merchants to use MasterCard’s digital wallet as a mode of payment. The company is trying to break into the stiff competition created by Apple Pay by increasing users for its point-of-sales. The digitization move by Apple is estimated to lure in 86 million users for the company. Following similar footsteps is expected to help the economy, vendors, and consumers over the coming few years.
When it comes to tipping, Uber has pretty much been the lone wolf, refusing to let users to do justice to its drivers. And for better or worse, this might soon change.
The New York City Taxi and Limousine Commission is considering bringing out a rule that would require companies such as Uber to find a way to incorporate a tipping method. And considering Uber prides itself for offering a cashless experience, it will need to integrate this feature within the app itself. And if New York decides to make this change, it is likely that other cities in the U.S. will follow suit. So for Uber, it makes sense to design and develop a standardized method for in-app tipping rather than waste time and resource is making different versions for different cities.
Better Late than Never?
Last year this month, Uber apparently did have the chance to do what’s right for its drivers and include an option to tip them. As part of a massive US$100 mn settlement, Uber was, for a brief time, required to inform its riders that the fare did not include tips. But after a judge rejected the settlement, Uber stuck to its guns and refused to reverse its stand on tipping. This brought on the company an onslaught of sore drivers. NYC general manager for Uber, Josh Mohrer clarified that the car services company stood by its mantra of not tipping because it was a point of dissatisfaction for consumers, aka the riders. The policy forces costumers to make the decision on what is the appropriate amount to tip.
Many others, however, feel like this is the least the firm could do for its drivers.