#212 – US & EU Tariffs, Shopify’s Buy Local, & Amazon dethrones Walmart

by Shopifreaks | Feb 10, 2025 | Recent Newsletters

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And now, onto our regularly scheduled programming…

In this week's edition I cover:

What's happening with US tariffs
The EU stepping up its tariff game
Shopify's new Buy Local feature
The US buying TikTok with a sovereign wealth fund
Amazon dethroning Walmart
Amazon stealing $60M of drivers' tips
BNPL and FICO Credit Scores
Klarna embracing crypto
Tinder's AI matching
YouTube running TikTok ads

All this and more in this week's 212th Edition of Shopifreaks. Thanks for subscribing and sharing!

PS: Hope you enjoyed the Super Bowl yesterday! What was your favorite commercial this year? Hit reply and let me know.

Stat of the Week

The unemployment rate in the information technology sector rose from 3.9% in December to 5.7% in January, well above last month’s overall jobless rate of 4%. The Wall Street Journal points to the increase as the latest sign of how automation and AI are having a negative impact on the tech labor market.

1. An update on US tariffs

Last week I reported (story #1) that President Donald Trump announced significant tariff measures affecting imports from Mexico, Canada, and China. Trump originally announced that the US would implement a 25% tariff on goods from Canada and Mexico and a 10% tariff on Chinese imports, effectively immediately — but that quickly changed.

As I was putting together my newsletter last week, it was announced that Trump paused the Mexico tariffs for one month after Mexican President Claudia Sheinbaum agreed to immediately send 10,000 soldiers to her country’s border to prevent the trafficking of fentanyl and other drugs. Then, shortly after sending the newsletter, it was announced that Trump also agreed to pause the Canadian tariffs for at least 30 days after Prime Minister Justin Trudeau made a similar pledge.

Here's what's happened since:

February 4th: The new Chinese tariffs and the removal of the de minimis exemption took effect, leading to disruptions in customs processing and concerns among e-commerce platforms that relied on the exemption to offer low-priced goods.
February 4th: The USPS abruptly placed a ban on all inbound packages from China and Hong Kong last Tuesday after the US imposed its 10% tariff on Chinese goods and ended the de minimis loophole, but then USPS reversed course the next day without giving a reason. The postal service instead said it would work with Customs and Border Protection to implement a collection process for the new China tariffs to avoid delivery disruptions.
February 5th: Temu began almost exclusively showcasing local products to American consumers that are warehoused and sourced in the US, which is a very different assortment than what most people have come to expect on the platform. The product results have since returned to normal, featuring goods fulfilled from China. Wired reported that both Shein and Temu began increasing prices by as much as 50% after the news broke.
February 6th: Chinese retailers were asked by logistics agents to start paying an additional 30% levy in the form of a deposit, which agents said they would partially return depending on the actual tax charge from US customers.
February 7th: In response to the operational challenges and backlog at US customs, President Trump signed an order delaying the removal of the de minimis exemption, allowing the Commerce Department time to establish procedures for processing and collecting tariffs on low-value packages from China.
February 9th: Trump announced that he will introduce a new 25% tariff on all steel and aluminum imports into the US, on top of existing metals duties. He also said he will announce reciprocal tariffs on Tuesday or Wednesday this week, to take effect almost immediately, applying them to all countries and matching the tariff rates levied by each country.
February 10th: The announcements of the tariffs have caused fluctuations in global markets. For instance, the Indian rupee opened significantly weaker today, reaching an all-time low against the US dollar. Similarly, the Australian stock market experienced a $15B loss in just one hour after Trump announced sweeping tariffs on steel and aluminum. Prime Minister Anthony Albanese scheduled a call with Trump to lobby for Australia to be exempt from the tariffs.
February 10th: China's promised 15% tariffs on US products including LNG, coal, and agricultural equipment are set to be imposed today in response to Trump's 10% levy. Beijing announced the measures last Tuesday after Trump's 10% tariffs were implemented.

2. EU steps up its tariff game too

Over the past week, the European Union has implemented significant measures affecting import fees and customs regulations. Here's a rundown of what changed:

Enhanced Customs Controls on E-commerce Imports – The EU announced stricter customs checks on parcels from online retailers like Shein and Temu to combat the influx of non-compliant products. This initiative includes phasing out the exemption on customs duties for parcels under €150, making foreign suppliers liable for taxes. In 2024, over 4.6B low-value parcels entered the EU, predominantly from China.
Proposal to Reduce Tariffs on U.S. Car Imports – To de-escalate potential trade tensions with the United States, the EU said it is prepared to lower tariffs on US car imports from the current 10% to a rate closer to the US tariff of 2.5%. This proposal also includes increased purchases of liquefied natural gas and military equipment from the US.
Consideration of Exemptions in Carbon Border Levy – The European Commission is evaluating the possibility of narrowing the scope of its Carbon Border Adjustment Mechanism to cover only the top 20% of companies responsible for the majority of emissions. This adjustment aims to reduce the regulatory burden on smaller enterprises while maintaining environmental commitments.

In regards to the 25% tariffs on steel and aluminum mentioned in story #1, the EU said today that it will not hesitate to retaliate. The bloc’s executive body said:

“The EU sees no justification for the imposition of tariffs on its exports. We will react to protect the interests of European businesses, workers and consumers from unjustified measures.”

3. Shopify debuts “buy local features” in its Shop app

Shopify debuted new “buy local features” in its Shop app, following CEO Tobi Lütke's criticisms of the US and Canadian governments' decisions to impose tariffs on each other's imports.

Quick Backstory: After President Trump announced a 25% tariff on Canadian goods and 10% on energy exports, Prime Minister Trudeau hit back with levies on $155B worth of US imports. At the time, Lütke called both sets of tariffs the wrong choice, and argued that Canada should have de-escalated instead.

Lütke wrote on X:

“Trump believes that Canada has not held its side of the bargain, and he set terms to prove that we still work together: get the borders under control and crack down on fentanyl dens. These are things that every Canadian wants its government to do, too. These are not crazy demands, even if they came from an unpopular source.”

However regardless of Lütke's personal feelings, the tariffs prompted nationwide calls to support and buy Canadian goods, with folks on social media asking Shopify to introduce buy local features.

Back to the Shop app updates: In response to the calls to buy local in Canada, Shopify introduced a new “Sells from Canada” filter within the Shop app that allows users to exclusively view products that are shipped from sellers located in Canada. Shop app users in the country subsequently received a push notification encouraging them to “easily find your favorite Canadian brands.”

Shopify said that the feature would be rolling out in Canada, the United States, and Mexico to start.

Later that week, Shopify published a blog post entitled Open trade, open for business defending de minimis and championing for open trade. The post wrote:

“Reforms should carefully target exploitation by some that exploit the de minimis exemption to flood the market with cheap products. Addressing this abuse is justified, but small businesses can’t become collateral damage.”

The post went on to share that Shopify merchants can now display and collect duties during checkout, with plans to release new updates aimed at simplifying the handling of international sales in the near future.

In other news surrounding the buy local initiative… Canadian tech leaders have initiated “Build Canada,” a project aimed at influencing policy to foster a more prosperous economy and address frustrations with the nation's stagnant innovation agenda. Launched by a core team including former Shopify VP Daniel Debow, the initiative plans to publish weekly policy memos to provide Canadian entrepreneurs with a platform to share impactful ideas.

4. The new US sovereign wealth fund could buy TikTok

President Trump signed an executive order last Monday ordering the creation of a sovereign wealth fund within the next year, saying it could potentially buy TikTok.

If created, the sovereign wealth fund would place the US alongside numerous other countries that have launched similar funds as a way to make direct investments into private enterprises with government dollars.

Other countries with funds include Norway, China, UAE, Saudi Arabia, Singapore, Kuwait, Qatar, Hong Kong, South Korea, Australia, Kazakhstan, Oman, New Zealand, Ethiopia, Libya, and Russia, to name a few. There are over 90 sovereign wealth funds across the world managing over $8 trillion in assets, according to the International Forum of Sovereign Wealth Funds. Numerous US states, including Alaska, Texas, and New Mexico also have their own wealth funds, which help fund education and tax relief.

The text of the executive order didn't share many details and simply directed the Treasury and Commerce Departments to submit a plan for a sovereign wealth fund within 90 days, including recommendations on “funding mechanisms, investment strategies, fund structure, and a governance model.”

Typically sovereign wealth funds rely on a country's budget surplus to make investments, but the US operates at a deficit, so it remains to be seen where it would drive the capital from. Its creation would also require approval from Congress.

Trump told reporters, “We're going to create a lot of wealth for the fund. And I think it's about time that this country had a sovereign wealth fund.”

He also hinted at using the fund to buy TikTok. “We're going to be doing something, perhaps with TikTok, and perhaps not. If we make the right deal, we'll do it. Otherwise, we won't…we might put that in the sovereign wealth fund.”

Trump previously floated the idea as a presidential candidate, saying that a sovereign wealth fund could fund “great national endeavors” including infrastructure projects such as highways, airports, manufacturing, and medical research.

In other TikTok / Trump news… Trump tasked Vice President JD Vance and National Security Adviser Michael Waltz with overseeing the potential sale of TikTok before the most recent ban extension elapses in April, according to multiple sources on Capitol Hill and the White House.

5. Amazon to dethrone Walmart as biggest US retailer

When Amazon announces earnings this Thursday for Q4 2024, it is expected to report revenue of $187B, surpassing Walmart's expected revenue of $180B, according to analysts surveyed by LSEG, marking the first time Amazon has ever outsold Walmart in a given quarter.

For the past 12 years, Walmart held the title of being the top revenue generator each quarter, having overtook Exxon Mobil in 2012 and subsequently remaining in the lead after oil prices tumbled from their previous levels of $100 per barrel.

Walmart is still leading the way when it comes to annual sales, turning more than $600B in sales in each of the past two years. However Amazon is catching up. Based on Q4 estimates, Amazon's full year of revenue for 2024 is expected it come in at around $638B, marking the first time it's surpassed the $600B milestone.

One major factor that accounts for Amazon's revenue is its Web Services division, which has seen its revenue more than double since 2020 and now accounts for about 17% of the company's total sales.

Very few companies reach $100B in revenue in a quarter. Others include:

Apple, but only during the holiday season. Last week Apple reported revenue of $124B for Q4 2024.
UnitedHealth saw its top line climb past $100B during its 1st quarter of last year and then again in the 3rd and 4th quarters.
CVS Health came close, exceeding $95B in one quarter last year.
McKesson, a pharmaceuticals company, hit $94B in one quarter last year.

6. Amazon stole $60M of driver tips

Amazon agreed to pay nearly $4M to settle a lawsuit alleging that it stole over $60M in tips intended for its Flex delivery drivers, effectively subsidizing its labor costs using the tips, which customers assumed were being given in addition to their driver's normal pay. To settle the lawsuit, Amazon will pay $2.45M in penalties plus $1.5M in legal fees. It also must disclose on its website and app moving forward how customer tips impact driver earnings.

This settlement is in addition to the $61.7M that Amazon was required by the FTC to reimburse drivers with when the agency brought similar charges against the company several years ago.

Here's what went down:

Upon launch of Amazon's Flex business in 2015, Amazon represented to customers that all tips added during checkout for Amazon Flex orders would go to drivers, but Amazon changed its payment model in late 2016 to lower its costs and did not disclose the switch to either customers or drivers.

What changed? Amazon began algorithmically reducing driver wages in different locations using data it collected about average tips, and then used the tips to make up the difference between its new base pay and the $18-$25 per hour it had promised drivers.

Amazon didn’t stop taking the tips until 2019, when the company found out that the FTC was investigating the issue.

Although Amazon settled with the FTC several years ago and reimbursed drivers with over $60M worth of tips, DC Attorney General Brian L. Schwalb filed this separate lawsuit in 2022 to reprimand Amazon and require the company to change its tip disclosures.

Amazon spokesperson Steve Kelly said in a statement, “Like any successful program, Amazon Flex has evolved over time, and this lawsuit relates to a practice we changed more than five years ago.”

Doesn't Amazon higher the best and the brightest at its organization? If so, who in their right mind thought it was a good idea to use tips to reduce driver base pay? That's low, even for Amazon.

7. Does using BNPL help improve your credit score?

FICO and Affirm published findings from a study examining the effect of including BNPL loans on consumer credit scores. The 12-month study reviewed credit data from over 500k consumers who had taken out at least one Affirm loan and compared their credit scores to those without loans.

Here's what it found:

For over 85% of participants, the inclusion of BNPL data led to FICO Score changes of less than 10 points, similar to the effects of opening a new account.
Consumers who had taken out five or more BNPL loans saw either no change or an increase in their credit scores.
Across various scenarios, the inclusion of BNPL data improved or had no negative impact on credit score predictiveness.

As a result of the study, FICO says it is now developing a way to introduce its proprietary treatment of BNPL data to the credit-scoring marketplace.

I'll be curious to learn in the future if / how Affirm and other BNPL providers build FICO's data into their loan underwriting process, which historically has not performed hard credit checks before issuing loans to consumers. Is FICO developing a two-way street with BNPL providers to share data on consumers? Or will BNPL providers continue to ignore credit scores for their own lending purposes, while simultaneously impacting users' credit scores when it comes to obtaining traditional loans? Answers to those questions and more TBD.

8. Klarna to finally embrace crypto

Klarna CEO Sebastian Siematkowski confirmed the company's plans to enter the crypto market via an X post where he wrote:

“Ok. I give up. Klarna and me will embrace crypto! More to come. Yes I know! This post will get a huge sigh and 2 views 😂 But it still feels historic. Last large fintech in the world to embrace it. Someone had to be last. And that’s a milestone as well of some sort… 🥳”

Siematkowski welcomed industry feedback to refine Klarna’s approach and received input in the comments:

Nikhil Chandhok, Chief Product and Technology Officer at Circle, suggested that Klarna could settle merchant transactions in stablecoins for faster processing and improved cash flow. He also mentioned integrating crypto wallets to enable direct crypto payments for Klarna purchases.
Raghav Gulati, CEO of CoinList, also recommended allowing payments with stablecoins on low-cost networks like Solana and suggested holding a small Bitcoin position in the company's treasury as an inflation hedge.
Other suggestions included offering crypto as a form of wealth storage for Klarna's clients, only embracing Bitcoin and ignoring all the other coins (this suggestion was given a lot), and Klarna building its own stablecoin like PayPal did,
BNPL, however, doesn't sound like it's on the table for crypto, as Siemiatkowski's response to the suggestion was, “Haha probably not.”

Siematkowski has historically been skeptical of Bitcoin and crypto in general. In an interview with CNBC in April 2021, he cautioned against promoting crypto assets as a financial investment product without protection and said that he was “deeply worried” about the risks associated with cryptocurrency.

Klarna's main competitor Affirm has previously explored the crypto space, launching the “Affirm Crypto Program” back in 2021, which allowed customers to buy and sell Bitcoin, but the company discontinued the program in early 2023 and hasn't ventured into crypto since.

Siematkowski's noise surrounding crypto could also be related to the fact that Klarna is preparing to go public in the US this April at a valuation that could hit $15B, according to Financial Time sources. The latest financial disclosures from Klarna show that from January through September last year, the company's GMV surged 16% to $72.7B and revenues were up 23% to $1.86B. Crypto could provide a new revenue channel to entice investors with.

9. Other e-commerce news of interest

Tinder revealed its plans to roll out AI-powered features for discovery and matching, aiming to offer users an alternative to the infamous swipe feature that defined the dating app in its earlier days. Match Group CFO Gary Swidler told investors on the Q4 earnings call that the AI-curated recommendations would deliver more personalized and engaging matches, and that the AI matching would be a complement to swiping, not a replacement. Tinder's monthly active users were down 10% YoY as of October and the company's direct revenue came in at $476M, below expectations.

YouTube is running ads on TikTok targeting the app's content creators in an effort to capitalize on TikTok's uncertain future. One ad featured a creator saying, “I never thought in my life I would be a YouTuber; it was literally my dream in high school, and now I’m getting gifted from them! Get on YouTube, find your community, live your best life,” Bloomberg wrote, “It’s notable, however, that TikTok is willing to accept ad dollars from one of its fiercest competitors promoting a message aimed at undercutting its business.”

The EU Consumer Protection Cooperation Network launched an investigation into Shein to determine whether it complies with various consumer protection and e-commerce regulations amid concerns over unfair practices, warning that a “tsunami” of cheap imports were flooding the market with products that fail to meet the bloc’s standards — creating health and safety risks for European consumers. The move follows broader EU efforts to address a surge in low-cost imports, with officials citing safety risks from non-compliant products, as nearly 96% of tested items from such platforms failed to meet EU standards.

Speaking of Shein… It was revealed that Kash Patel, President Trump's nominee to be the head of the FBI, owns between $1M and $5M of stock in a company that controls Shein, according to lobbying and corporate records from three countries. The records show that Patel began consulting for Shein one month before the company also retained the services of a lobbying firm where Pam Bondi, Trump's newly confirmed US attorney general, worked at the time. Patel told members of the US Senate that he does not plan to divest his stake in Shein if he becomes the leader of the FBI, which he would legally not be required to do unless a clear conflict of interest emerges.

Oracle NetSuite introduced AI-driven updates to enhance operational efficiency for manufacturers and distributors, including advanced AI tools, procurement enhancements, and improved subscription billing. Key updates include AI-powered assistants, Outlook integration, automated procurement features, and a digital business network to streamline invoicing, reduce manual processes, and improve financial management.

JCPenney launched a B2B bulk ordering e-commerce platform for nonprofits, government agencies, and businesses, allowing them to purchase private label and national brand products in large quantities with customization options. The move follows increased demand for bulk retail purchases and aligns with the company's broader strategy, which includes updating store locations, closing underperforming stores, and partnering with Sparc Group to expand through the Catalyst Brands joint venture.

Lululemon filed three nearly identical lawsuits in January alleging that a list of e-commerce sellers from China have violated its trademarks by selling counterfeit products bearing resemblance to its genuine products. The complaint alleges that the defendants “target United States consumers using one or more seller aliases” to sell infringing and counterfeit versions of Lululemon products and that those actions have caused it damage and injury by tarnishing its trademark and brand reputation.

TikTok Shop is launching in Mexico this month, marking ByteDance's expansion into Latin America with its social commerce platform. TikTok began inviting merchants to open stores in the country in January ahead of the start of transactions in February. Last month TikTok said certain types of goods would be restricted in Mexico initially including jewelry, healthcare, maternity, and baby products.

Shopify revealed that two of its employees had stolen data from less than 200 merchants, potentially compromising the personal data of customers visiting the e-commerce sites in question. The company explained in a blog post that “two rogue members of our support team were engaged in a scheme to obtain customer transactional records of certain merchants,” but that both employees have had their access to the Shopify network terminated and that the incident has been reported to law enforcement.

X signed a partnership with the adtech company Magnite, which operates a supply-side platform for web publishers, app developers, and streaming TV providers to manage and sell advertising. The partnership offers advertisers an option to include or exclude X's inventory from their media buys. Magnite joins Google and PubMatic as official third-party sellers of X's ad inventory.

The British government ordered Apple to allow blanket access to user data stored online so that state agencies can use the backdoor to access backups of any global customer without a court order, under the UK's Investigatory Powers Act, which allows agencies to compel tech companies to assist in intercepting and obtaining communications data. Apple has maintained a firm stance on user privacy and asserted in the past that it will not create backdoors into its products. It previously fought the US government over the same issue multiple times after receiving similar demands.

Salesforce is cutting more than 1,000 jobs, even as the company simultaneously hires workers to sell new AI products. Displaced workers will be able to apply for other jobs internally, according to Bloomberg sources. Salesforce had nearly 73,000 workers as of January 2024, when that fiscal year ended.

Meta plans to layoff nearly 4,000 employees, reducing 5% of its workforce, in efforts to filter out low-performing employees and prepare for investments in AI this year, according to a leaked memo. The report cited Meta's CEO Mark Zuckerberg, who told his staff last month that the company would “raise the bar” and make a quick move to remove low performers in an internal memo. Notices will go out to employees losing their jobs starting at 5am local time today (Monday) in most countries, including in the US, according to one of the posts.

Workday, a cloud-based enterprise software company specializing in HR management, laid off 1,750 employees on Wednesday, representing approximately 8.5% of its headcount. CEO Carl Eschenbach told employees in a memo that the company needs a new approach in the current market and plans to hire AI talent.

President Trump dropped his lawsuit against X over the suspension of his account back in 2021 when the platform was still called Twitter and before it was owned by Elon Musk. Trump originally sued Twitter arguing that his First Amendment rights were violated after he was banned from the platform “due to the risk of further incitement over violence” in the wake of the Jan 6th riot. A judge dismissed the lawsuit the following year, but Trump later appealed the decision. Now lawyers for both parties asked the court to dismiss the case. Last week I reported that Meta agreed to pay $25M to settle a similar lawsuit with Trump.

Snap CEO Evan Spiegel changed his title on LinkedIn to “VP Product @ Meta,” trolling Meta for its history of cloning features such as Stories that Snapchat pioneered. Snapchat was an acquisition target for Meta, but Spiegel turned down a $3B acquisition offer in 2013 and remained independent, which prompted Meta to release its own versions of the platform's most popular features including stories, disappearing direct messages, and filters that distort a users' face. Spiegel has a long history of poking fun at Meta. In 2018 he joked, “We would really appreciate it if they would copy our data protection practices also.”

US Senators sent letters to the CEOs of Amazon, Google, DoubleVerify, Integral Ad Science, Media Rating Council, and Trustworthy Accountability Group asking why their ad businesses fund websites hosting child abuse material and allow government ads to appear on sites with illegal imagery. The letters ask why the companies have facilitated the placement of ads on a website known to have hosted this type of content since 2021 and calls into question the effectiveness of the technology used by these firms to prevent ads from appearing alongside illegal content.

A LinkedIn user is claiming in a new lawsuit that the company violated the federal Video Privacy Protection Act by allegedly sharing her personally identifiable video viewing history with Meta and Adobe via their tracking pixel. Courtney Cole claims she viewed the LinkedIn Learning course “Nano Tips for Negotiating Your Salary with Sho Dewan” and that Meta's records of her off-site activity show this viewing history. A LinkedIn spokesperson said, “These claims have no merit and we're confident we'll be able to show that.” Why would LinkedIn share its user viewing history with a competing platform?

Meta may have torrented over 80 terabytes of pirated books — or tens of millions of books — to train its AI models, according to evidence in a copyright case against the company. Meta has already admitted to torrenting some content, but further details are now becoming clear since the release of unredacted internal e-mails, some which include admissions from employees that they were instructed to use LibGen even though the company was aware it was a pirated database.

Democrats are pushing Mark Zuckerberg on Meta's recent policy changes, claiming that they are deeply concerned about the company's move to loosen its content moderation rules, end corporate diversity programs, and ditch third-party fact checking. Four members of the House Energy and Commerce Committee demanded details about the changes, which they called “abhorrent, inconsistent, and dangerous” and said the timing of “gives the inescapable appearance of currying favor with the Trump Administration.”

Amazon's voice assistant Alexa is expected to tease a major AI-powered upgrade later this month. The company sent out media invites for a Feb 26th event in New York, where Amazon's Devices & Services team lead Panos Panay will be speaking. Amazon said that the event will highlight the latest innovations from the Alexa team, but did not provide further details, so this is just speculation by CNET. Alexa's AI upgrade was first announced in September 2023, but has since experienced multiple delays due to challenges in integrating advanced AI capabilities while maintaining performance quality.

Canada's federal government has ended its boycott on buying advertisements on Meta, which started in July 2023 after Meta blocked all news content on its platforms in the country in response to a federal law requiring digital companies to compensate Canadian media outlets for sharing their content. Meta continues to block news content for Canadians, but the Privy Council Office confirms that the government spent $100k for space on Facebook and Instagram for a campaign launched in January.

Sotheby’s, a global auction house specializing in fine art, jewelry, real estate, and luxury collectibles, shut down its Buy Now eCommerce business in mainland China and Thailand, amid a slowdown in demand in those markets. The platform introduced Buy Now, a feature that lets customers buy collectibles without having to wait for an auction, in September 2021 when online auctions were experiencing unprecedented value mid-pandemic and expanded the feature to mainland China in early 2023. However it was reported that luxury brands in the country were later having to resort to major discounts to sell their unsold inventory and entice cautious consumers during China's economic slowdown.

Lyft and Anthropic are working together to create AI products to serve Lyft's riders and drivers, beginning with Lyft's customer care AI assistant being powered by Anthropic's AI model, Claude, via Amazon Bedrock, a managed service from AWS that enables businesses to build and scale gen-AI applications. The company says that the AI assistant handles thousands of customers inquiries each day, transitions complex cases to human specialists when needed, and has reduced customer service resolution time by 87%.

Disney+ and ESPN+ both lost 700,000 subscribers over the final three months of 2024, while Hulu added 1.6M subscribers. Disney+ now has 124.6 million subs, not including Disney+ Hotstar, its less expensive service offered in India. Disney anticipated the Q1 2025 loss of Disney+ subscribers and is now forecasting another “modest decline” in subs for calendar 2025, blaming price hikes and the expiration of certain promotions for the decline.

1 in 8 Brits, or an estimated 6.8M people, used BNPL services for the first time in 2024, bringing the total amount of consumers in the country who have used the installment payment option to around 22.6M, or 42% of the population. BNPL usage is particularly common among the younger generations, with 63% of millennials (aged 28-43) and 56% of generation Z (aged 18-27) having used it.

Tesla sales are down 63% in France, 59% in Germany, 44% in Sweden, 38% in Norway, 42% in the Netherlands, and 12% in the UK during the month of January, as car buyers in the region further distance themselves from Elon Musk. Experts also attribute the decline in sales to Tesla's limited and outdated model range, as well as the automaker's launch of the Cybertruck, which is too large and heavy for use and does not conform to road legality regulations in the EU.

10. Seed rounds, IPOs, & acquisitions

Mercury, a US-based neobank designed for startups and tech companies whose profile soared after the collapse of Silicon Valley Bank nearly two years ago, is in financing talks to raise $250M since reaching $500M in annualized revenue eight years after launch. The startup was last valued at $1.6B in 2021 and might be worth around $3B today.

Queen.ai, a Dubai-based startup founded by alumni from Google and DeepMind that provides autonomous AI agents for e-commerce businesses, raised $10M in a round led by Prosus Ventures, bringing its total amount raised to $12M. The platform's AI agents can handle content creation, marketing, and conversational sales. Since launch in 2024, the company says it has served over 15M users, generated 1M SKU descriptions, and helped merchants increase sales by 30%.

FedEx acquired RouteSmart Technologies, a provider of advanced route optimization solutions for industries like newspaper delivery, postal services, public works, and logistics to improve efficiency and reduce costs, for an undisclosed amount. Through the acquisition, FedEx will use RouteSmart's technology platform to accelerate the deployment of common route optimization capabilities for its operations, which the company says will enable team members to work safer and smarter. FedEx has been a long-standing customer of RouteSmart for many years, using its platform to serve as the backbone for its internal FedEx Route Optimization tool.

Cashfree Payments, an India-based fintech company that provides payment gateway solutions, bulk payouts, and API-driven banking services for business to process online transactions more efficiently, raised $53M in a round led by KRAFTON and Apis Partners Group. Cashfree offers features like one-click checkout, abandoned cart recovery, and return prediction and connects directly with major payment networks. Recently the company build Secure ID, an identify verification stack to help address the surge in fraud.

Archive, platform that enables brands to launch and scale profitable resale programs by providing end-to-end solutions for managing secondhand product sales, raised $30M in a Series B round led by Energize Capital, bringing its total amount raised to $54M. The company will use the funds to develop its resale intelligence software further, accelerate global expansion, and invest in new product innovation and services to keep pace iwth the surging resale market, which is estimated to reach $350B over the next three years.

Sotira, an AI-powered platform that helps brands efficiently offload and monetize surplus inventory by connecting them with verified buyers and streamlining transactions and logistics, raised $2M in pre-seed funding from Unusual Ventures, Night Capital, K5 Global, Ritual Capital, and others. The company plans to use the funds to expand beyond food, beverage, health, and cosmetics and move into the apparel space.

Beyond, the company behind Overstock.com, Bed Bath & Beyond, and Zulily, acquired the rights of the BuyBuy Baby brand for $5M including their name, databases, domains, IP, and vendor relationships. Beyond says that the acquisition supports its own portfolio of defunct bankrupt brands by integrating BuyBuy Baby into its Bed Bath & Beyond stores and its own standalone locations. The return to brick and mortar comes through a previously announced partnership with Kirkland’s, which operates and licenses Bed Bath & Beyond stores.

Diem, a social search engine designed primarily for women and LGBTQ that combines community-driven conversations with AI-powered search, raised $1.8M in a round that included Precursor, Alumni Ventures, and others, bringing its total amount raised to $5M since its launch in 2020. Since Trump's inauguration and the events that have transpired since, Diem has seen a 40% increase in its total user base and a 115% increase in monthly active users, with searches on the platform increasing by 400% compared to December, and contributions to the platform increasing by 700%. Last month the company launched its first advertising offering via boosted posts and a “treat store” where brands can share products.

Khazna, an Egyptian fintech that provides financial services like salary advances, digital payments, and microloans tailored toward low- and middle-income workers, raised $16M in a pre-Series B round led by Quona and Speedinvest, bringing its total amount raised to over $63M. The company will use the funds to support its expansion plans as it prepares to apply for a digital banking license in Egypt and expand into Saudi Arabia.

Walmart acquired Monroeville Mall, a shopping mall near Pittsburgh for $34M, with plans to redevelop the center in partnership with Cypress Equities, a Texas-based real estate development firm. This is the first time that Walmart has acquired a mall of this size, according to the company, but did not share its specific plans for the project. The mall deal further builds on Walmart's five-year store expansion plans to build or expand 150 locations and remodel 650 stores.

Worldpay, a global payment processing company that provides solutions for accepting card and digital payments in-store and online, acquired Ravelin, a London-based AI-powered fraud prevention platform that helps businesses detect and prevent payment fraud, for an undisclosed amount. The acquisition will integrate Ravelin’s AI-powered fraud detection tools into Worldpay's platform, boosting its authorization rates and strengthening its ability to prevent payment fraud, account takeovers, and refund abuse.

Shein is set to cut its valuation in a potential London listing to around $50B, nearly a quarter less than the company's 2023 fundraising value, as it faces uncertainty following the US government's removal of the de minimis duty exemption that previously helped keep its prices low. The impact of this policy change on Shein’s profitability and US sales remains unclear, and regulatory approvals from both British and Chinese authorities are still pending.

Shopblocks, a UK-based e-commerce platform that enables businesses to create customizable online stores without the constraints of traditional templates, raised £2M from Mercia Ventures. The investment comes as the company rebrands to Symphony Commerce and launches a range of new features and functionality to hone in on the global B2B enterprise market.

Stockly, a French startup that connects the inventories of multiple online retailers and enables them to sell products even when they're out of stock by sourcing items form other partners within the network, raised €26M in a round led by 83North, bringing its total amount raised to $44.5M. Last year the platform surpassed 1M transactions across 25 countries and claims that retailers who use their services see revenues increase by up to 20%. With its new funds, Stockly plans to expand its commercial operations across Europe and hire 30 new tech and business roles.

JD.com is in talks with Ceconomy, the owner of MediaMart and Saturn, about an acquisition to help it expand in Europe while its domestic economy is slowing down. Ceconomy recently reported a revenue of 22.4B, with nearly 24% of that online. It is currently unclear whether an acquisition will take place, primarily due to Ceconomy's complex shareholder structure, with several families owning a third of the German company.