The Reserve Bank of Australia has thrown one of the great surprises of 2025 by pausing the cash rate at 3.85%.
Uber Australia’s advertising business has grown to over $150 million as it doubles down on ads as their latest revenue stream.
Aldi has launched a home delivery service in Australia for the first time to get a slice of the growing online grocery industry.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:05):
This is what the flux.
Speaker 2 (00:06):
I'm Brett and I'm Justin and it's Wednesday, the ninth
of June.
Speaker 1 (00:09):
It is good to be back, Jusey boy. It has
been a lot of business news over the past few weeks.
I'm talking Quantus Haack, I'm talking Vergin Australia, I pos
Trump Tarim Stapp about and I must say, juzzy boy,
it's great to be back on the mic with you
and cannot wait to chat about that little cash rate
surprise as well.
Speaker 2 (00:25):
Very good to be back by Man and flex AMM.
Just a reminder you can always get your finance fixed
from the Flex app as well from learning about cash
rate updates, financial concepts, managing your budget. We have it
all covered in the Flex app. To make sure to
check that out.
Speaker 1 (00:37):
Three newborn stories today, jussy boy, let's do it for
our first. The Reserve Bank of Australia has thrown one
of the great surprises of twenty twenty five by pausing
the cash rate at three point eighty five percent.
Speaker 2 (00:49):
Market's almost guaranteed a cart but the markets don't make
the decision, be Man, so tell me more.
Speaker 1 (00:53):
So, Juzy boy. We know that the RBA brains trust
have put their heads together a few times this year already.
Speaker 2 (00:59):
Yep, there have been two rate so far in twenty
twenty five, with the cash rate falling from four point
three five percent down to three point eight five.
Speaker 1 (01:05):
And with the RBA meeting again on Monday and Tuesday
this week, the financial markets gave a ninety seven percent
chance of a rate cut.
Speaker 2 (01:12):
In fact, they man just four out of thirty six
economists predicted the decision to keep rates on hold.
Speaker 1 (01:17):
That's because trimmed mean inflation, the favorite figure of the RBA,
had slowed to two point four percent, which.
Speaker 2 (01:22):
Is within the RBA's target range of two to three percent.
Speaker 1 (01:25):
And Jazi wait. On top of this, retail sales had
also weakened, which should encourage the RBA to drop rates.
Speaker 2 (01:31):
But obviously be man. The RBA doesn't want anyone knowing
its next move now, so it paus the cash rate
at three point eight five percent.
Speaker 1 (01:37):
The Governor of the RBA said that the case was
not established for another rate cut.
Speaker 2 (01:41):
It wanted to see a little bit more information before
moving on this cash rate.
Speaker 1 (01:45):
In particular, it pointing to the US tariffs which are
still unknown, as.
Speaker 2 (01:49):
Well as the policies that come out of the tariffs
from countries that are hit like China.
Speaker 1 (01:53):
Aka Australia's biggest trading partner. So true, So what is
the key learning here? When it comes to interest rates,
markets can speculate, central banks hold the cards.
Speaker 2 (02:01):
Be Man, even if the economic data shows a slow down.
The RBA doesn't want to jump the gun.
Speaker 1 (02:06):
Because jumping the gun could risk reigniting inflation.
Speaker 2 (02:09):
And be Man. Despite those positive signs around inflation, we
know that Donald Trump's tariffs could change the whole world's
economy in an instance.
Speaker 1 (02:16):
That's why the RBA is waiting for more consistent evidence
before making a change now.
Speaker 2 (02:20):
Interestingly, be Man, The RBA released the voting for the
very first time, and not all RBA board members agree.
Speaker 1 (02:25):
In fact, three board members voted for a cut, well
six voted for a pause.
Speaker 2 (02:29):
Majority rules. So in this case, the RBA said it
wants more information before cutting again.
Speaker 1 (02:33):
It's not a node to the rate cuts, it's more
of a maybe soon.
Speaker 2 (02:37):
Once we get a read on Old Trumpy.
Speaker 1 (02:39):
For our second story. Uber Australia's advertising business has grown
to over one hundred and fifty million bucks. As its
latest revenue stream did.
Speaker 2 (02:47):
The delays became Uber's payd eight man. So what is
the story here?
Speaker 1 (02:50):
So Uber is the OG of ride sharing and food
delivery services.
Speaker 2 (02:54):
We all know the Uber story started in San Francisco
when Global Fast and launched in Australia in twenty twelve.
Speaker 1 (02:59):
Since then, Uber has remained the dominant player in Australia's
ride sharing and food delivery scene.
Speaker 2 (03:04):
It also famously operated at a loss for years as
a result of its very aggressive growth strategy.
Speaker 1 (03:09):
Well think about all those ads with Kim Kardashian, Magna Zubanski,
Sure Rebel, Wilson, plenty more. Yep.
Speaker 2 (03:15):
But in twenty twenty two, b man Uber launching ad
business in its Australian arm.
Speaker 1 (03:19):
Think as promoting specific restaurants above others, a bit like
Google sponsored ads in your Uber app, And in its.
Speaker 2 (03:24):
First year it brought in an additional forty one million
bucks in revenue.
Speaker 1 (03:28):
And fast forward two years later, Uber's ad business group
by fifty five percent to about one fifty mil And then, man.
Speaker 2 (03:33):
These aren't your regular food ads. Now.
Speaker 1 (03:35):
Uber uses its first party data like your age, your location,
your gender, and food habits to serve up really targeted
food ads. Hungover on a Sunday morning, oh, you better
believe uberno's and will offer you makers yep. In a
world where users are becoming more savvy with their data privacy,
Uber has found a way to monetize the mountain of
data it has yep.
Speaker 2 (03:54):
So what is the key learning here?
Speaker 1 (03:56):
Not all data sources are created equal, and first party
data has become a super valuable resource.
Speaker 2 (04:01):
First party data is information that a company collects directly
from you.
Speaker 1 (04:05):
For Uber, it might be your location, your purchase history,
your food preferences.
Speaker 2 (04:08):
It's accurate, it's reliable, and you've usually consented to it first,
even if it's in a long list of ts.
Speaker 1 (04:14):
And cs yep, as opposed to third party data, which
is data collected by a data company or an aggregator
and then shared with other businesses.
Speaker 2 (04:21):
Now, but man, you may remember back in twenty twenty one,
Apple cracked down on third party data collection to protect
user privacy.
Speaker 1 (04:28):
And that meant a lot of advertisers lost access to
info that used to allow them to serve up targeted ads.
Speaker 2 (04:34):
So now more than ever, first party data has become
a super valuable resource.
Speaker 1 (04:38):
And Uber's got the oodles of it.
Speaker 2 (04:40):
So even though their core service is still ride sharing
and food delivery. Their new ad business is clearly very
scalable and very profitable year on year.
Speaker 1 (04:48):
For our third and final story, Audi has launched a
home delivery service in Australia for the first time to
get a slice of that growing online grocery industry.
Speaker 2 (04:57):
Colsonwill is booming online, so definitely may sense tell me.
Speaker 1 (05:00):
What we man well Jauziboy. Aldi was founded in Germany
in nineteen forty six by two brothers. Audi has built.
Speaker 2 (05:07):
A reputation for offering very low cost groceries and knockoffs
of all the brands.
Speaker 1 (05:12):
You know, Red Rock, Daili chips, how about Audi's Blackstone chips.
Speaker 2 (05:15):
Instead, need head and shoulder shampoo, why not try Aldi's
Headstrong shampoo.
Speaker 1 (05:20):
Audi landed in Australia in two thousand and one and
has grown to have nearly ten percent market share.
Speaker 2 (05:24):
But the man. While has taken the challenge to Coles
and Willies install, they've really fallen behind online.
Speaker 1 (05:29):
You can't even buy a product from their website.
Speaker 2 (05:31):
So now Audi's announced a new partnership with DoorDash that
will allow Aussie customers to purchase Audi products online. And
while it's not quite the same as their own online store.
It does solve a major problem for them, particularly when
the online grocery segment now counts for almost eleven percent
of the overall grocery market.
Speaker 1 (05:47):
So what is the key learning here?
Speaker 2 (05:48):
Retailers face a tough balancing act between gaining market share
and maintaining profit. Market and Juziboy offering delivery has been
an effective way to grow market share, but it can
also eat into profits because of the huge additional logistics costs.
Speaker 1 (06:01):
In fact, Woolly's new distribution center costs them more than
seven hundred million bucks to bill.
Speaker 2 (06:05):
And be man. Audi has been historically hesitant to offer
home delivery because of the huge upfront costs.
Speaker 1 (06:10):
That now the opportunity to enter the online space is
too juicy to ignore.
Speaker 2 (06:14):
So instead of spending big on warehouses and tech, Audi's found.
Speaker 1 (06:18):
A bit of a cheat code, partner with someone who
has already built it and lets.
Speaker 2 (06:22):
Them stay competitive online.
Speaker 1 (06:23):
In fact, Cole's online grocery shopping has grown twenty five
percent just in the last quarter, and Woolly's online sales
up more than twenty percent in the most recent quarter
as well. So if Audi wants to keep up, this
door dash deal might just be the thing Flux and everybody.
Speaker 2 (06:36):
Is shocked by the RBA's cashtray pause, one of the
great surprises of twenty twenty five so far. We do
a whole deep dive in the Flux app why they
made the pause, what are they looked at, and what
might change next time. So if you want to learn
more about the cashwrake surprise, make sure to check out
the Flux app.
Speaker 1 (06:50):
Thanks for listening and we'll see you on Friday.
This is what the flux.
Speaker 2 (00:06):
I'm Brett and I'm Justin and it's Wednesday, the ninth
of June.
Speaker 1 (00:09):
It is good to be back, Jusey boy. It has
been a lot of business news over the past few weeks.
I'm talking Quantus Haack, I'm talking Vergin Australia, I pos
Trump Tarim Stapp about and I must say, juzzy boy,
it's great to be back on the mic with you
and cannot wait to chat about that little cash rate
surprise as well.
Speaker 2 (00:25):
Very good to be back by Man and flex AMM.
Just a reminder you can always get your finance fixed
from the Flex app as well from learning about cash
rate updates, financial concepts, managing your budget. We have it
all covered in the Flex app. To make sure to
check that out.
Speaker 1 (00:37):
Three newborn stories today, jussy boy, let's do it for
our first. The Reserve Bank of Australia has thrown one
of the great surprises of twenty twenty five by pausing
the cash rate at three point eighty five percent.
Speaker 2 (00:49):
Market's almost guaranteed a cart but the markets don't make
the decision, be Man, so tell me more.
Speaker 1 (00:53):
So, Juzy boy. We know that the RBA brains trust
have put their heads together a few times this year already.
Speaker 2 (00:59):
Yep, there have been two rate so far in twenty
twenty five, with the cash rate falling from four point
three five percent down to three point eight five.
Speaker 1 (01:05):
And with the RBA meeting again on Monday and Tuesday
this week, the financial markets gave a ninety seven percent
chance of a rate cut.
Speaker 2 (01:12):
In fact, they man just four out of thirty six
economists predicted the decision to keep rates on hold.
Speaker 1 (01:17):
That's because trimmed mean inflation, the favorite figure of the RBA,
had slowed to two point four percent, which.
Speaker 2 (01:22):
Is within the RBA's target range of two to three percent.
Speaker 1 (01:25):
And Jazi wait. On top of this, retail sales had
also weakened, which should encourage the RBA to drop rates.
Speaker 2 (01:31):
But obviously be man. The RBA doesn't want anyone knowing
its next move now, so it paus the cash rate
at three point eight five percent.
Speaker 1 (01:37):
The Governor of the RBA said that the case was
not established for another rate cut.
Speaker 2 (01:41):
It wanted to see a little bit more information before
moving on this cash rate.
Speaker 1 (01:45):
In particular, it pointing to the US tariffs which are
still unknown, as.
Speaker 2 (01:49):
Well as the policies that come out of the tariffs
from countries that are hit like China.
Speaker 1 (01:53):
Aka Australia's biggest trading partner. So true, So what is
the key learning here? When it comes to interest rates,
markets can speculate, central banks hold the cards.
Speaker 2 (02:01):
Be Man, even if the economic data shows a slow down.
The RBA doesn't want to jump the gun.
Speaker 1 (02:06):
Because jumping the gun could risk reigniting inflation.
Speaker 2 (02:09):
And be Man. Despite those positive signs around inflation, we
know that Donald Trump's tariffs could change the whole world's
economy in an instance.
Speaker 1 (02:16):
That's why the RBA is waiting for more consistent evidence
before making a change now.
Speaker 2 (02:20):
Interestingly, be Man, The RBA released the voting for the
very first time, and not all RBA board members agree.
Speaker 1 (02:25):
In fact, three board members voted for a cut, well
six voted for a pause.
Speaker 2 (02:29):
Majority rules. So in this case, the RBA said it
wants more information before cutting again.
Speaker 1 (02:33):
It's not a node to the rate cuts, it's more
of a maybe soon.
Speaker 2 (02:37):
Once we get a read on Old Trumpy.
Speaker 1 (02:39):
For our second story. Uber Australia's advertising business has grown
to over one hundred and fifty million bucks. As its
latest revenue stream did.
Speaker 2 (02:47):
The delays became Uber's payd eight man. So what is
the story here?
Speaker 1 (02:50):
So Uber is the OG of ride sharing and food
delivery services.
Speaker 2 (02:54):
We all know the Uber story started in San Francisco
when Global Fast and launched in Australia in twenty twelve.
Speaker 1 (02:59):
Since then, Uber has remained the dominant player in Australia's
ride sharing and food delivery scene.
Speaker 2 (03:04):
It also famously operated at a loss for years as
a result of its very aggressive growth strategy.
Speaker 1 (03:09):
Well think about all those ads with Kim Kardashian, Magna Zubanski,
Sure Rebel, Wilson, plenty more. Yep.
Speaker 2 (03:15):
But in twenty twenty two, b man Uber launching ad
business in its Australian arm.
Speaker 1 (03:19):
Think as promoting specific restaurants above others, a bit like
Google sponsored ads in your Uber app, And in its.
Speaker 2 (03:24):
First year it brought in an additional forty one million
bucks in revenue.
Speaker 1 (03:28):
And fast forward two years later, Uber's ad business group
by fifty five percent to about one fifty mil And then, man.
Speaker 2 (03:33):
These aren't your regular food ads. Now.
Speaker 1 (03:35):
Uber uses its first party data like your age, your location,
your gender, and food habits to serve up really targeted
food ads. Hungover on a Sunday morning, oh, you better
believe uberno's and will offer you makers yep. In a
world where users are becoming more savvy with their data privacy,
Uber has found a way to monetize the mountain of
data it has yep.
Speaker 2 (03:54):
So what is the key learning here?
Speaker 1 (03:56):
Not all data sources are created equal, and first party
data has become a super valuable resource.
Speaker 2 (04:01):
First party data is information that a company collects directly
from you.
Speaker 1 (04:05):
For Uber, it might be your location, your purchase history,
your food preferences.
Speaker 2 (04:08):
It's accurate, it's reliable, and you've usually consented to it first,
even if it's in a long list of ts.
Speaker 1 (04:14):
And cs yep, as opposed to third party data, which
is data collected by a data company or an aggregator
and then shared with other businesses.
Speaker 2 (04:21):
Now, but man, you may remember back in twenty twenty one,
Apple cracked down on third party data collection to protect
user privacy.
Speaker 1 (04:28):
And that meant a lot of advertisers lost access to
info that used to allow them to serve up targeted ads.
Speaker 2 (04:34):
So now more than ever, first party data has become
a super valuable resource.
Speaker 1 (04:38):
And Uber's got the oodles of it.
Speaker 2 (04:40):
So even though their core service is still ride sharing
and food delivery. Their new ad business is clearly very
scalable and very profitable year on year.
Speaker 1 (04:48):
For our third and final story, Audi has launched a
home delivery service in Australia for the first time to
get a slice of that growing online grocery industry.
Speaker 2 (04:57):
Colsonwill is booming online, so definitely may sense tell me.
Speaker 1 (05:00):
What we man well Jauziboy. Aldi was founded in Germany
in nineteen forty six by two brothers. Audi has built.
Speaker 2 (05:07):
A reputation for offering very low cost groceries and knockoffs
of all the brands.
Speaker 1 (05:12):
You know, Red Rock, Daili chips, how about Audi's Blackstone chips.
Speaker 2 (05:15):
Instead, need head and shoulder shampoo, why not try Aldi's
Headstrong shampoo.
Speaker 1 (05:20):
Audi landed in Australia in two thousand and one and
has grown to have nearly ten percent market share.
Speaker 2 (05:24):
But the man. While has taken the challenge to Coles
and Willies install, they've really fallen behind online.
Speaker 1 (05:29):
You can't even buy a product from their website.
Speaker 2 (05:31):
So now Audi's announced a new partnership with DoorDash that
will allow Aussie customers to purchase Audi products online. And
while it's not quite the same as their own online store.
It does solve a major problem for them, particularly when
the online grocery segment now counts for almost eleven percent
of the overall grocery market.
Speaker 1 (05:47):
So what is the key learning here?
Speaker 2 (05:48):
Retailers face a tough balancing act between gaining market share
and maintaining profit. Market and Juziboy offering delivery has been
an effective way to grow market share, but it can
also eat into profits because of the huge additional logistics costs.
Speaker 1 (06:01):
In fact, Woolly's new distribution center costs them more than
seven hundred million bucks to bill.
Speaker 2 (06:05):
And be man. Audi has been historically hesitant to offer
home delivery because of the huge upfront costs.
Speaker 1 (06:10):
That now the opportunity to enter the online space is
too juicy to ignore.
Speaker 2 (06:14):
So instead of spending big on warehouses and tech, Audi's found.
Speaker 1 (06:18):
A bit of a cheat code, partner with someone who
has already built it and lets.
Speaker 2 (06:22):
Them stay competitive online.
Speaker 1 (06:23):
In fact, Cole's online grocery shopping has grown twenty five
percent just in the last quarter, and Woolly's online sales
up more than twenty percent in the most recent quarter
as well. So if Audi wants to keep up, this
door dash deal might just be the thing Flux and everybody.
Speaker 2 (06:36):
Is shocked by the RBA's cashtray pause, one of the
great surprises of twenty twenty five so far. We do
a whole deep dive in the Flux app why they
made the pause, what are they looked at, and what
might change next time. So if you want to learn
more about the cashwrake surprise, make sure to check out
the Flux app.
Speaker 1 (06:50):
Thanks for listening and we'll see you on Friday.
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