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- 😡 Delta wants revenge on CrowdStrike
😡 Delta wants revenge on CrowdStrike
PLUS: A freezer company breaks the IPO market; Uber and BYD nab major partnership
Steven Van & Jacob Goldschein
July 31, 2024 • Estimated Reading Time: 7 minutes
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TOP STORY
😡 Delta wants revenge on CrowdStrike
Remember that little power outage a couple of weeks ago?
You know, the one dubbed the "largest IT outage in history," which left financial services, doctors' offices, TV broadcasters, and even the Las Vegas Sphere offline.
Well, as it turns out, Delta Airlines ended up being one of the most affected companies.
After CrowdStrike's disastrous software update went live, millions of computers crashed, leading to thousands of flight cancellations.
And now, Delta wants retribution.
💬 The outages cost Delta an estimated $350 million to $500 million.
💬 Delta is dealing with over 176,000 refund or reimbursement requests after almost 7,000 flights were canceled.
📸 Getty Images
Yesterday, Delta announced that it had hired prominent attorney David Boies to seek damages from both CrowdStrike and Microsoft, whose systems were compromised.
No suit has been filed just yet, but Delta is seeking compensation, and I imagine it’s going to be one massive check considering the CrowdStrike incident resulted in a total loss of $5.4 billion for Fortune 500 companies, excluding Microsoft.
📉 Crowdstrike ($CRWD) is down -40.85% this month.
IPO
🥶 A freezer company breaks the IPO market
📸 CNBC
Well, to be more accurate, it's actually a cold storage company.
What’s cold storage?
Cold storage is the wildly exciting process of keeping food and other perishable items at low temperatures to keep them fresh for longer periods.
It’s essential for companies like food manufacturers and grocery stores because it helps keep their products fresh and prevents spoilage.
💬 Walmart for instance is building five new high-tech centers in California and Texas, and expanding in Minnesota and Tennessee to support over 4,600 stores and their extensive delivery business.
💬 Frozen food sales in the US reached $74 billion in 2023, a ~33% increase from 2019.
📸 The Business Journals
So it’s important, but is there money in this? Yup, there sure as hell is.
And Lineage is at the top of the lucrative cold storage mountain.
Just last week, Lineage raised $4.4 billion in its public listing, the largest IPO of 2024, valuing the company at more than $18 billion.
Despite the company and the industry itself sounding boring as hell, it’s a freaking cash cow.
💬 Since inception, Lineage has completed 116 acquisitions and operates nearly one-third of the US' temperature-controlled warehouse space.
💬 The global cold storage market was worth $148.93 billion in 2023 and is estimated to be worth around $392.16 billion by 2032, at a CAGR of 11.36%.
And maybe even more important, cold storage is critical for the environment.
Efficient cold storage significantly reduces food loss, with a mind-boggling ~$600 billion worth of food lost annually before reaching consumers.
As you can see, reducing food loss can have a significant positive impact on climate change.
Who knew freezers could be such a main character?
💬 Food loss accounts for 8% of global emissions.
AUTOMOBILES
🤝 Uber and BYD nab major partnership
The world’s largest electric vehicle maker, BYD, just nabbed a major partnership with Uber.
The deal, announced today, is a multi-year agreement that will hopefully bring over 100,000 new EVs to the Uber platform.
The partnership will start in Europe and Latin America and will provide drivers with accessible pricing and financing options for BYD's EVs.
In addition to helping with financing, Uber and BYD will offer drivers discounts on maintenance and charging.
💬 “When an Uber driver makes the switch to an EV, they can deliver up to four times the emissions benefits compared to a regular motorist.”
But why does Uber want BYD and not Tesla or something? Well, because it seems BYD might actually be the new EV king.
In 2023, BYD, with over three million units sold and a 22% market share, was ranked as the world's best-selling electric vehicle manufacturer, overtaking Tesla from the previous year.
📸 Munich Auto Show IAA Mobility
And BYD doesn’t want that dominance to stop anytime soon.
That’s why they’re working extremely hard to get more people to drive their EVs outside of China.
But in recent years, higher costs and lower margins have hurt many EV companies, pushing them to find new ways to get more people to “go green.”
Enter Uber, a potential match made in heaven.
The move seems like it could be a win-win all around, as this partnership supports Uber's green goals, cuts carbon emissions, and saves drivers money on fuel and maintenance.
💬 In 2023, BYD sold 242,759 vehicles outside of China, a 336% increase from 55,656 vehicles in 2022.
💬 BYD's net profit margin fluctuated between 1.7% and 3.7% from 2019 to 2022, compared to Tesla's 10.5% to 15.3% in the same period.
📈 Uber ($UBER) stock is up +30.35% in the past year.
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