Alibaba abandons losses earns 5880 million second quarter, but remains below forecasts as Alibaba has just reported a profit of 45,141 million yuan, about 5,874 million euros, between April and June, corresponding to its first fiscal quarter. This figure is 5% less than in the same period last year.
The Chinese e-commerce giant has billed during this period 26,767 million euros, in a year-on-year increase of 34% that has remained below the estimates, which predicted sales of about 27,270 million. Analysts expected to see results of the investments made in recent times by Alibaba.
The company founded and chaired by Jack Ma is investing in several of its areas to compensate for the slowdown in its growth. This occurs at a time, moreover, when he begins to see the ears of rivals like Pinduoduo and JD.com, which are affecting their sales in China. According to Bloomberg, the e-commerce market share in that country would have fallen below 50% for the first time this year.
The Asian multinational recovers from the previous quarter, the last of its fiscal year, which resulted in losses of 702 million euros, after carrying out a share buyback program of 3,100 million euros in its New York shares.
Alibaba abandons losses earns 5880 million second quarter
The financial director of the company, Maggie Wu, indicates in the income statement submitted to the Hong Kong Stock Exchange, to which Efe has had access, that it will expand these purchases to 13,000 million euros until 2022, thanks to the "confidence in the long-term growth prospects" of the company.
In May, Alibaba also had to pay a multimillion-dollar antitrust fine of 2,336 million euros, imposed by the Chinese authorities that caused a reduction of almost 33% in the liquidity of the Asian company.
Alibaba abandons losses earns 5880 million second quarter
Despite the adversities and the numbers in red, the previous quarter already showed an improvement over the numbers of the previous year. Between January and March 2021, it had a turnover of 24,018 million euros, representing 64% more than in the previous quarter. Thanks to this upturn, the Chinese multinational closed the fiscal year with a turnover of 91,936 million euros, 40% more than a year earlier.
Its cloud computing services have grown this quarter by 29% and digital entertainment media by 15%, which strengthens Alibaba in these segments. However, e-commerce still accounts for 87% of its sales and its geographical area is still highly focused on China.
Retail sales in the Asian giant account for 66% of its turnover and although its international growth increased by 54%, this area only represents 5% of its turnover.
Alibaba abandons losses earns 5880 million second quarter
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Just Eat negotiates with unions a historic agreement: the first collective agreement 'rider' sector 'delivery' in Spain
A week after the entry into force of the rider law in Spain, and just a few days after Deliveroo announced its definitive goodbye in our country for not being able to adapt to the new legislation, Just Eat and the main unions are setting the foundations of a historic agreement: the first collective agreement for a digital platform for food delivery in Spain.
Just Eat, UGT and CCOO are negotiating this pioneering agreement that they hope to materialize at the turn of the summer. It will be the first collective agreement rider to regulate labor relations delivery delivery nationwide.
The pact will be fully aligned with the requirements of the rider law, which will be fully implemented on August 12, recognizing these workers as salaried and non-self-employed, and forcing applications to report on their algorithms.
Before its implementation, Deliveroo has cast the blind in Spain, Glovo has moved tab hiring 2.000 employees to adapt to the law (although it will continue to have self-employed in its fleet) and Uber Eats will make public its work model over the next few days.
However, Just Eat has not had to introduce major changes to the rider law, since it previously operated with a system of own fleets and subcontractors that have on payroll to deliverers. Currently, the Spanish subsidiary of the food delivery platform bill 44 million, and will end 2021 with more than 400 employees in staff
The agreement concluded with the unions will be a reflection of the model already implemented in more than 160 cities in Continental Europe by Just Eat, as reflected in the statement issued by the company.
It is an essential agreement to outline the particular elements of the platform economy with behavioral patterns different from traditional businesses and marked by the use of technology.
Just Eat applies the model of hiring distributors for hire as a global company in more than 160 cities in Continental Europe, which in Spain is already in the development phase since last November. It relies on its own network of delivery people who work under an employment contract, as the company has always defended.
"It is a negotiation with great significance that will mark a historic milestone in the evolution of the sector in Spain", says Patrik Bergareche Sainz de los Terreros, Director of Just Eat in Spain. ”As industry leaders, we are proud to have taken the initiative to reconcile innovation and social protection in the performance of an activity essential to our economy."
In a recent interview with Cinco Días, the director of the Spanish subsidiary described the rider law as" relief", emphasizing the important role of riders in the pandemic and its high level of"legal insecurity". He also stressed that Just Eat is a profitable company, "able to develop a business model with distributors legally, paying them Social Security".
Patrik Bergareche highlighted in these statements that from now on all competitors in the delivery sector will operate with the same rules of the game. "That will generate quality employment, while sanitizing the image of the sector, which has always been associated with precariousness", concluded in his words to Five Days.
The unions also celebrate this historic agreement. Alvaro Vicioso, Secretary of Trade Union Action and Communication of FeSMC-UGT, underlines the" clear intention of laying the foundations of the future of the sector " by both parties.
"The search for profitability can be reconciled with compliance with labor legislation and social protection for workers," says Carlos Gutiérrez Calderón, responsible for New Realities of Work at CCOO.
” Now it is time to put all efforts into establishing the best working conditions to dignify the work of the delivery women and men, " Calderon added.
It is expected that Just Eat, advised by the law firm Perez-Llorca, and the majority unions in the agreement at the turn of the summer, compromise that have reached after good understanding between both parties.