⚡️ Prepare for strikes

What’s going on here?

An upcoming strike by the United Auto Workers (UAW) union could wreak havoc on the US economy.

What does this mean?

About 146,000 auto workers are gearing up for a potential strike this week if General Motors, Ford, and Stellantis don’t give in to their demands. And it seems they’ve set their sights pretty high: we’re talking a whopping 46% pay hike over four years, plus some sweeter retirement benefits, and a shorter workweek to boot. But the companies themselves are less than enthusiastic about this shopping list of goodies. After all, they’ll need to shell out big time on the EV revolution in the coming years, and giving in to these demands could further jack up their car prices – making European and Asian competitors look all the more tempting.

Why should I care?

For you personally: Put the pedal to the metal.

If you’ve been daydreaming about cruising in a new American-made car, prepare for a potential hit to your savings. As of the end of August, America's Big Three automakers boasted a 70-day car inventory – but once that dwindles, prices might surge. And considering the pandemic’s lingering effects, which have already made new cars rarer than they were in 2019, you just might want to act fast to bag a ride at a decent price.

The bigger picture: Running on empty.

Should the UAW’s demands get the green light, labor costs could rocket from $66 to an eye-watering $136 per hour. And the broader economic landscape could take a hit too: even a brief ten-day strike could bleed the three titans of $5 billion, potentially pushing Michigan’s economy to the brink of a recession. After all, the 40-day UAW strike in 2019 cost General Motors alone a whopping $3.6 billion. And that’s not to mention the potential fallout for suppliers and their workforces, as well as the price drops that commodities like steel could face.

What’s going on here?

Instacart – the biggest online grocery delivery company in the US – has set a pretty underwhelming price range for its upcoming listing.

What does this mean?

Once soaring to a valuation of $39 billion during the 2021 pandemic boom, Instacart has now set its sights a whole lot lower for its public debut – at around $9.3 billion. Born in San Francisco and nurtured by big names like Sequoia Capital, the delivery giant became indispensable during lockdowns. But as we edged toward a post-pandemic world, the company wound up facing headwinds. And while it’s commendable that Instacart’s become profitable in a challenging space, it’s facing a slowdown in growth, tighter margins, and investors who’ve grown wary of once-celebrated tech unicorns.

Why should I care?

For markets: What goes up often comes down.

In its heyday, Instacart stood as a beacon of tech success, cashing in on pandemic shopping shifts and investors' love for bright tech prospects. But all good things must come to an end, especially with rising customer acquisition costs and fierce competition threatening its dominance. That’s not to say that Instacart’s reduced valuation has landed it in the bargain bin, though. Sure, it’s priced more attractively than competitor Gopuff, but it still demands a premium compared to industry stalwarts like DoorDash and Uber. And being the market’s Goldilocks – not too high, not too low – may not be the worst move in these interesting times.

The bigger picture: A barometer for private tech.

Instacart’s looming debut is a litmus test for VC-backed tech startups, especially after a two-year lull. And its performance could foreshadow a new trend for IPOs – ushering in an era of humbler valuations after the pandemic’s giddy highs. But while a stumble might spook other startups, a smooth launch could inspire them – especially cash-strapped firms that have put off launching because of worries about their valuations.