Raphael Stevens

Walmart and Cruise will begin testing deliveries by driverless car in 2021.WalmartWalmart is investing in Cruise, General Motors’ majority-owned self-driving vehicle subsidiary, as part of a new $2.75 billion funding round for the company.The decision to invest comes about five months after the companies started developing a pilot program to use Cruise self-driving vehicles for deliveries in Scottsdale, Arizona.  “This investment is a marker for us – it shows our commitment to bringing the benefit of self-driving cars to our customers and business,” Walmart U.S. CEO John Furner said in a blog post on Thursday. “We’re excited to join Cruise’s already impressive partner and investor ecosystem with the likes of GM, Honda and Microsoft as we work towards pioneering this emerging technology.”Furner said Walmart has “been impressed with Cruise’s differentiated business model, unique technology and unmatched driverless testing.” Walmart has announced partnerships with six autonomous vehicle companies, including Cruise, Ford Motor and Alphabet-owned Waymo. The pilot with Cruise remains under development but the investment is a strong vote of confidence in the company. A Walmart spokeswoman said it will continue to work with other autonomous vehicle companies despite the investment in Cruise.The investment round by Cruise was initially announced in January at $2 billion. It included Microsoft, GM, which acquired Cruise in 2016, and other institutional investors. Cruise declined to breakdown the new funding by company. It brings Cruise’s valuation to more than $30 billion.”Self-driving cars will make transportation safer, cleaner and more accessible for everyone,” Cruise CEO Dan Ammann said in a statement. “Making this happen requires a clear mission, world-class talent, great partners and a lot of capital.”Commercializing autonomous vehicles has been far more challenging than many predicted even a few years ago. The challenges have led to a consolidation in the autonomous vehicle sector after years of enthusiasm touting the technology as the next multitrillion-dollar market for transportation companies.Some companies, such as Uber Technologies, have given up on developing the systems in-house, while others such as Zoox sold to Amazon. Alphabet’s Waymo remains the most high-profile front-runner, operating a public autonomous vehicle fleet in ArizonaThe addition of Walmart comes days after Cruise announced plans to expand operations to Dubai in 2023 through a deal to be the city’s exclusive provider for self-driving taxis and ride-hailing services through 2029.The announcements this week are significant for Cruise, which has been concentrating its self-driving vehicle testing in San Francisco. It has grown its registered testing fleet to more than 200 vehicles but hasn’t yet announced when it plans to offer a robotaxi fleet to the public in the city. It initially planned to do so in 2019.GM CEO Mary Barra last month said the company is “confident” that Cruise will launch and commercialize operations “sooner than many people think.”– CNBC’s Melissa Repko contributed to this report. More

The rate of new U.S. coronavirus cases remains elevated as the country tries to ramp up its vaccination campaign following the distribution halt of Johnson & Johnson’s Covid-19 vaccine.The country is reporting about 71,200 new Covid cases per day, based on a seven-day average of data from Johns Hopkins University. That is far below the nation’s winter peak but in line with levels seen during the summer surge, when average daily cases topped out at more than 67,000.Centers for Disease Control and Prevention data shows an average of 3.3 million daily vaccine doses reported administered over the past week.A CDC panel decided Wednesday to postpone a decision on Johnson & Johnson’s vaccine while it investigates the cases of six women developing a blood-clotting disorder.U.S. vaccine shots administeredFollowing 2.5 million vaccine doses reported administered Wednesday, the U.S. is averaging 3.3 million daily shots over the past week. That daily average has been above 3 million for eight straight days.Zoom In IconArrows pointing outwardsU.S. officials say the pause in use of Johnson & Johnson’s vaccine will not slow down the country’s vaccine rollout, noting there is enough supply from Moderna and Pfizer to maintain the current vaccination pace.About 7.5 million doses of the Johnson & Johnson vaccine have been administered in the U.S. out of nearly 195 million total doses, according to CDC data. The Pfizer and Moderna vaccines have made up the majority of the shots given to Americans thus far.Zoom In IconArrows pointing outwardsU.S. share of the population vaccinatedAbout 37% of the U.S. population has received at least one Covid vaccine shot, and 23.1% is fully vaccinated.Zoom In IconArrows pointing outwardsOf those aged 65 and older, about 80% have received one or more doses and 63% are fully vaccinated, according to the CDC.U.S. Covid casesThe seven-day average of U.S. daily new coronavirus cases is 71,282, according to Johns Hopkins data, up 8% from one week ago.Zoom In IconArrows pointing outwardsIn Michigan — the state experiencing the worst outbreak in the country on a new cases per capita basis — infection counts keep rising. The state is reporting a seven-day average of nearly 7,900 daily new cases, approaching the state’s pandemic high of more than 8,300 per day recorded in December.Overall, cases are rising in 33 states and Washington, D.C.U.S. Covid deathsThe U.S. reported 956 Covid deaths Wednesday, Hopkins data shows, bringing the country’s total pandemic death toll to more than 564,400.Zoom In IconArrows pointing outwards More

A Delta Airlines Boeing 757-251 approaches Washington Ronald Reagan National Airport (DCA) in Arlington, Virginia on February 24, 2021.Daniel Slim | AFP | Getty ImagesDelta Air Lines on Thursday reported another quarterly loss but said it expects to reach break even in June as travel demand rebounds from a deep pandemic slump.Here’s how Delta performed in the first quarter compared with what Wall Street expected, based on average estimates compiled by Refinitiv:Adjusted results per share: a loss of $3.55 versus an expected loss of $3.17 a shareTotal revenue: $4.15 billion versus expected $3.91 billion in revenueDelta and its competitors continue to lose money but have grown upbeat about an improvement in bookings as more travelers are vaccinated, travel restrictions lift and more attractions reopen. Delta said domestic leisure bookings are at 85% of 2019 levels, though international and business travel demand remains depressed.The Atlanta-based carrier posted a net loss of $1.18 billion on $4.15 billion in revenue for the first quarter, topping analyst estimates for sales of $3.91 billion. Revenue was down 60% compared with the $10.47 billion Delta generated in the first quarter of 2019. On an adjusted basis, Delta posted a loss of $3.55 a share compared with a forecast of $3.17 per share.Cash burn averaged $11 million a day in the quarter but turned positive last month to $4 million a day, Delta said.”A year after the onset of the pandemic, travelers are gaining confidence and beginning to reclaim their lives. Delta is accelerating into the recovery with our brand stronger and more trusted than ever before,” Delta CEO Ed Bastian said in an earnings release. “If recovery trends hold, we expect positive cash generation for the June quarter and see a path to return to profitability in the September quarter as the demand recovery progresses.”Delta said it expects second-quarter revenue to be 50% to 55% lower than the same period of 2019 on scheduled capacity that’s a third lower than two years ago. Its expenses, stripping out the cost of fuel, will be up 6% to 9% this quarter, it said.Delta’s shares were up 1% in premarket trading after the airline reported results.The carrier’s executives will hold a call with analysts to discuss results at 10 a.m. ET. More

In this articleNBACarmelo Anthony #00 of the Portland Trail Blazers rebounds the ball during the game against the Boston Celtics on April 13, 2021 at the Moda Center Arena in Portland, Oregon.Sam Forencich | National Basketball Association | Getty ImagesNational Basketball Association stars John Wall and Carmelo Anthony are new investors in a cannabis company.The pair helped California-based LEUNE raise roughly $5 million in a round that includes NBA agent Rich Paul, entertainer La La Anthony, music manager Anthony Saleh (clients include Future and Nas) and venture capital firm Casa Verde Capital.LEUNE said it would use the funds for marketing and expanding its products as it looks to capitalize on more states legalizing marijuana.”Having their support through this crucial growth stage makes a world of a difference for a brand of our size, and we look forward to building one of the leading names in cannabis together,” said company CEO, Nidhi Lucky Handa. “These funds will be used to help us traverse new horizons — from developing new products to unlocking more geographies.”LEUNE’s investment comes days after actor Jaleel White made headlines for starting his own cannabis line. White starred as Steve Urkel on the sitcom “Family Matters.” Former NBA star Al Harrington is also prominent in the cannabis space with his company, Viola. Harrington’s firm raised $16 million in October 2019.New York became the latest state to legalize cannabis, joining Arizona, Montana, New Jersey, and 12 other states, including District of Columbia, that made pot fully legal. Though states can legalize, it remains illegal at the federal level.But companies are monitoring democratic lawmakers who could push for legislation to end federal restrictions around marijuana.John Wall #1 of the Houston Rockets shoots the ball against the Washington Wizards on February 15, 2021 at Capital One Arena in Washington, DC.Ned Dishman | National Basketball Association | Getty ImagesAphria CEO Irwin Simon told CNBC in February he expects marijuana to be legalized in the U.S. within the next few years. On Tuesday, Uber CEO Dara Khosrowshahi told CNBC’s “TeckCheck” the company would explore delivering pot if it becomes legal.”When the road is clear for cannabis when federal laws come into play, we’re absolutely going to take a look at it,” Khosrowshahi said.In addition to expanding its products, LEUNE said it wants to enhance its social justice initiatives. The firm will use the new investors to raise awareness around inequality and injustices throughout the sector. LEUNE has partnerships with organizations, including The Last Prisoner Project, Eaze Momentum, and the Floret Coalition.”Cultivating a sense of community has always been a top priority for me,” Wall, who now plays for the Houston Rockets, told CNBC via email. “I appreciate that LEUNE is not only a successful cannabis brand but one that helps uplift marginalized voices through their ongoing social justice work.” More

In this articleAMZNGS4755.T-JPPYPLWith the huge boost in online shopping during the pandemic, deal-finding sites have become a major business. In 2020, Inmar Intelligence found that digital coupons surpassed printed coupons for the first time ever.Behemoths like Goldman Sachs and PayPal have paid hundreds of millions — or even billions — for sites like Slickdeals and Honey that automatically curate coupon codes or offer shoppers cash back for making purchases through their sites. Even banks like Capital One are getting into the game.The business model is not based on selling shopper data, according to the sites. Instead, each sale generates a commission for the deal site and for the middleman known as the affiliate marketer — a company that connects the vast world of retailers with deal sites.With nearly 2,000 businesses in the daily deal site space, it’s a crowded industry, and there are plenty of sites riiddled with ads and expired coupon codes. That’s because regardless of whether a coupon code works, the site that provided the code will get a commission for that sale.When the deals are legitimate, however, it can mean big money for shoppers, retailers, and the deal sites. From Honey to Slickdeals, Rakuten Rewards to Brad’s Deals, CNBC asked the major deal sites and shoppers what it takes to find deals that are real and why the business model works.Watch the video to learn how saving consumers money makes big bucks for companies in the vast world of online deal hunting. More

In this articleTGTTarget fulfills the vast majority of its online orders at its stores rather than fulfillment centers.TargetTarget wants to get online purchases to customers’ doors even faster. Instead of just shipping packages through carriers, the retailer will also enlist the help of its own team of dedicated delivery people.The new approach — tested in Target’s hometown of Minneapolis — will be supported by three companies that the retailer acquired. It begins with employees picking and packing orders at stores. Items are transferred from the store’s backroom to a sortation center multiple times each day. Then, it will use technology it acquired from two companies, Grand Junction and Deliv, to group packages for the most efficient routes to neighborhoods. Finally, contract workers for Shipt, a same-day delivery service that Target bought in 2017, will deliver packages to customers who live in the same parts of town in addition to traditional carriers.Target’s strategy could help it compete with larger and sometimes faster e-commerce rivals like Amazon and Walmart. It is an answer to customers’ expectations for speed, as they use on-demand services from Uber to DoorDash. And it is an alternative to relying solely on carriers like United Parcel Service and FedEx, which have dealt with a spike in demand during the coronavirus pandemic and responded in some cases by hiking fees or limiting parcels.”Shipping is the majority of the cost for getting a product to a guest. Shipping is the big number,” Target’s chief operating officer, John Mulligan, said in an interview. “We continue to work on picking better and optimizing our pick and optimizing the batches [of packages] for the team — all of that is really important — but the key to the whole game from our perspective is to improve that ship cost.”With the new model, Mulligan said Target will be able to better handle the rising number of packages that pile up in its stores throughout the day. He said it will also give the company more control over the customer experience and make e-commerce orders more profitable.Target opened its first sortation center in the fall, and it will support all stores in the Minneapolis-St. Paul area by the end of April. It began testing deliveries with Shipt from that facility at the end of March.Mulligan expects the process will scale up over time. Target plans to open five more sortation centers this fiscal year and use Shipt to make deliveries around them, too. He declined to share the locations, but said the sites will be in dense, urban areas where multiple packages can be delivered to the same neighborhood.Shipt has roughly 300,000 contractor workers who already drop off bagged groceries and other items hand-picked for a customer who pays $99 a year or $9.99 per order. Now, some of those same contract workers will drop off boxes in the Minneapolis area, too. For customers, it will look and cost no different than a delivery made by UPS or the post office.It comes at a time when Target’s online orders are soaring. Digital sales grew 145% in the most recent fiscal year, ended Jan. 30, compared with the year prior.Its share price has risen, too. Since the start of the year, the stock is up more than 16% to a market value of $102.57 billion. In early April, it hit a 52-week high of $207.38 and the shares aren’t too far below that level — even as the big-box retailer faces challenging comparisons in the year ahead.Target is not the first to use contract workers for deliveries. Amazon has Flex and Walmart has Spark, networks of contract workers who use their own cars to make package deliveries.Andre Pharand, a managing partner and a consultant for the postal and parcel industry at Accenture, said nearly every retailer is juggling higher costs and with ever-higher customer demands.”What we’re seeing is consumers are increasingly expecting more,” he said. “Fast is getting faster. Where three days was acceptable, two days now is barely acceptable. People with [Amazon] Prime are now used to same day.”To cope, companies are tinkering with their supply chain, he said. Ideas include opening local fulfillment centers to reduce the distance a purchase needs to travel or using data and analytics to make deliveries in groups rather than as one-offs.Over the past few years, Target has put stores — instead of giant fulfillment facilities — at the center of its e-commerce strategy. It has aimed to bring the economics of online sales more in line with those that take place at stores. About 95% of its sales last year were fulfilled at stores.It has also promoted same-day options, called Drive Up and Order Pickup, that defray costs by having the customer retrieve their own online orders in parking lots or inside stores. Target also has free two-day shipping to homes for online purchases that are $35 or more.Mulligan said orders through those click-and-collect services are 90% cheaper than having that product shipped from a fulfillment center. He said shipping a package from a store rather than a fulfillment center is 40% cheaper.”We start with a place of advantaged economics,” he said. “This is just a way of continuing to improve speed, continuing to improve costs to create great value for our guests.” More