Spotify protests French tax / Judge dismisses Kroger merger lawsuit / Shipt pauses Seattle deliveries

Plus, Wolverine Worldwide names first chief supply chain officer

Inside Ecommerce For December 28, 2023

Today's e-commerce briefing digs into: Spotify's decision to "disinvest in France." Kroger's legal win in its bid to acquire Albertsons Shipt's plan to cease operations in Seattle Enjoy! Gregory p/Gregory_Bridgman

1 Spotify will stop supporting two music festivals in France. The move comes as the streaming giant threatens to "disinvest in France" more broadly to protest a new tax on music streaming services in the country. More: Spotify said it will stop providing financial support for the Francofolies de la Rochelle and Printemps de Bourges festivals.  The move came after France announced a tax of between 1.5% and 1.75% on all music-streaming services in the country. The funds will be allocated to support the French music sector through the Centre National de la Musique (CNM). Spotify, Apple, YouTube, and Deezer have signaled their opposition to the new law. Antoine Monin, Spotify's managing director for the France and Benelux regions, called the tax a "real blow to innovation."

2 A U.S. judge dismissed a consumer lawsuit opposing Kroger's planned acquisition of Albertsons. The suit alleged that the merger would raise prices by reducing competition. More: Kroger announced in October 2022 that it planned to acquire rival grocer Albertsons for $25B. The Federal Trade Commission (FTC) requested more information about the merger in December 2022. U.S. District Judge Vince Chhabria dismissed a consumer lawsuit opposing the acquisition last week. Chhabria said the plaintiffs lack sufficient information to substantiate their claims.  Kroger already agreed to sell 413 stores and eight distribution centers to address antitrust concerns. Kroger and Albertsons are the first and second largest U.S. grocers, respectively, as measured by revenue.

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3 Shipt, a Target-owned delivery service, said it will pause operations in Seattle. The company cited difficulties stemming from new labor laws for app-based platforms in the city. More: Shipt, like many e-commerce delivery platforms, relies heavily on independent contractors, often called "gig workers." Seattle passed several city ordinances in the last few years that provide legal protections to gig workers.  Ordinances requiring minimum pay and sick time for gig workers are set to take effect on Jan. 13. Shipt told the Seattle Times that the company will struggle to comply with the changes while maintaining the quality of its services. The company said it will use the pause to determine whether it can resume operations in Seattle in the future.

4 Wolverine World Wide named Bishu Jayaram as its new chief supply chain officer. The newly created role will make Jayaram responsible for global sourcing, distribution, logistics, and integrated planning. More: Jayaram takes the new role after working as the company's SVP of global sourcing. Wolverine said the newly created role will support its "transformation into a consumer-obsessed growth company." Wolverine announced a global restructuring of its workforce in November after firing its former CEO, Brendan Hoffman, in August. Wolverine plans to update its entire e-commerce platform, said CFO Michael Stornant during the company's latest earnings call.

5 What the numbers say: Europe was Spotify's largest market in Q3 2023 in terms of premium subscribers. It was followed by North America, which had 27% of all premium subscribers, and Latin America, which had 21%. Spotify is the largest music streaming service in the world, and its apparent focus on the European market may be due to its origins in Sweden. Spotify's dependence on this market means that it is likely to be significantly impacted by a new tax imposed on music streamers in France. Frace is one of the largest economies in the European region, and Spotify has warned that it plans to "disinvest" in the country due to the tax.

6 Revolut said it expects to generate $2B in revenue this year. The U.K.-based fintech stated in its press release that its revenue reached $1.1B in 2022, up 45% YoY. More: Almost 10 million users joined the platform in 2022, generating a 71% increase in deposits. Revolut's total number of customers surpassed 35 million in the first three quarters of 2023. In September 2022, Revolut launched Revolut Pay to support e-commerce in the U.K. and EEA regions. The service provides one-click payments across product, cart, and checkout pages.

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Gregory Bridgman Writer / Editor Gregory Bridgman is a politics and e-commerce researcher with a Ph.D. from the University of Cambridge. He also holds a Master of Science from University College London and a Bachelor's degree from the University of Cape Town.  Feel free to follow him on Twitter or drop him an email at gregory@inside.com. This newsletter was edited by Aaron Crutchfield

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