Hey hey, Flux fam!

Here's everything you need to know today - in under 3 minutes.

Today's big stories 

🛒Local supply chains save the day for IGAs

⛏Fortescue Metals' buys F1-linked Williams Advanced Engineering

🤑Instagram tests subscription feature for creators/influencers

Oh and get this...

Peloton just can't shake the bad times. It turns out another TV show character has had an on-screen heart attack on Peloton’s exercise bike. Eeeep!

Local supply chains help IGAs outperform Woolies and Coles - and we love an underdog

Background: Supply chains have been crunched thanks to the new Omicron wave. And it's meant that Woolies and Coles' distribution networks are being squeezed. Real hard.

What happened: For IGAs and other independent grocers, things haven't been so bad. There's still been some pandemic-related absenteeism...but for the most part, they haven't been impacted to the same extent.

What else: Because many independent grocers source their produce locally...they haven't been experiencing the same, long lead-times on stock. Big win for the little crew, hey? 

So what's the key learning? 

💡The length - or type - of a business' supply chain can drastically impact its success in times of distress (i.e. Omicron wave).

💡When it comes to supply chains, many companies rely on a global chain. This is where companies source their products and services from other countries. It might be because of lower labour rates, cheaper production costs...or you can only get the stock there. 

💡Other companies rely primarily on local supply chains - aka home grown suppliers. While this option can be more expensive, it also means you're a lot closer to your products. This means shorter lead times and lower risk of running out of certain stock. Onya IGA!

Fortescue Metals' hot new thang WAE will help it reach its 2030 net-zero goals

Background: Fortescue Metals is the fourth-largest iron ore producer in the world. They launched back in 2003, but as we know, mining really ain't great for the environment. 

What happened: Fortescue are actually one of the first mining giants to commit to net-zero emissions by 2030. And they've just made a big step towards actually achieving that goal: they've acquired Williams Advanced Engineering for around $309 million.

What else: WAE are the tech and engineering partner of the Williams Formula 1 team. The plan is for the acquisition to help Fortescue's decarbonisation efforts...and maybe even build an electric train? Either way, it's all because of Fortescue's innovation void in this space.

So what's the key learning?

💡When a business sets goals for innovation, it generally takes one of two paths to achieve them:

1. Innovate these product in-house - and quickly (i.e fill the void internally)
2. Acquire a new or similar business that can do that innovation externally.

💡Fortescue's Future Industries division is aiming to eliminate the use of diesel across the company's iron ore biz. But here's the problem: Fortescue has an innovation void to fill when it comes to battery expertise.

💡By acquiring WAE (who are all about the battery tech), Fortescue is filling the void...and hopefully reaching its net-zero goals on time.

Prep ya wallets 'cos Insta is becoming a PG OnlyFans with new creator subscriptions feature

Background: We know influencers/creators can make cash via Instagram. There are the paid ads, the collabs, the giveaways...but these transactions have always occurred outside the app (i.e. DMs, managers, ad agencies...)

What happened: Now, Instagram is testing a subscription feature for creators to charge their users in exchange for premium or exclusive content.

What else: This will help influencers monetise the platform even more...but it's also a way for Meta to create a new billion-dollar revenue stream away from ads. 

So what's the key learning?

💡Social media platforms like Meta make a LOT of money through advertising. In fact, Instagram's ad revenue makes up around 50% of Meta's total revenue.

💡But there has been a lot of scrutiny around big tech's advertising strategy recently (i.e. the kinds of data Meta pulls to target their ads and the privacy issues this raises). 

💡The creator subscription service gives Meta a new ad-free revenue stream... and shifts revenue away from advertisers and away from privacy and data issues.