This installment of my newsletter is free for everyone. I send this email daily.
If you would also like to receive it every morning, join the 40,000 other people who care about Business, Tech & Growth, by clicking the button below or share it with a friend who’d find it useful.
Chicago City Sues Grubhub And DoorDash For Deceptive Practices
The city of Chicago has filed lawsuits against Grubhub and DoorDash, alleging the companies engaged in unfair and deceptive business practices that wounded restaurants and misled consumers during the coronavirus pandemic.
The lawsuits filed separately in the Cook County Circuit Court alleges that both Grubhub and DoorDash advertised order and delivery services for restaurants without their consent, leaving restaurants to repair reputational damage and resolve consumer complaints.
The city is also alleging that the platform used a “bait-and-switch” tactic to lure customers with the promise of low delivery fees, only to add surcharges at the last minute when they are about to place their order.
However, both the platforms have referred to the allegations as baseless, arguing that they have already set policies in place to remove restaurants that do not want to be listed whenever the business owner requests.
The city wants the companies to abide by existing policies and also wants them to discharge any profits made to any party harmed due to the alleged violations.
Amazon-backed Electric Vehicle Maker Rivian Files For IPO
Rivian, the electric vehicle company backed by Amazon, said it has confidentially filed paperwork with regulators for an initial public offering.
At the time of its initial public offering, Rivian, which counts Amazon, Soros Fund Management, and BlackRock among its major investors, will seek a valuation of around $70–80 billion.
However, Rivian said the size and range for the proposed initial public offering have yet to be determined and are expected to take place after a Securities and Exchange Commission review process.
Rivian’s filing comes as automakers are racing to develop electric vehicles (EVs) as many countries are mandating lower carbon emissions.
The IPO will take place after the SEC completes its review process, subject to market and other conditions.
Amazon investments in Rivian came after it announced in 2019 that it had ordered 100,000 custom electric vans for delivery from the automaker.
The e-commerce giant plans to have at least 10,000 of them on the road in 2022.
Cuba Becomes The Latest Country to Recognize And Regulate Cryptocurrency
In a move that many experts predicted, Cuba has said it will recognize and regulate cryptocurrencies for payments on the island.
After all, the country has been reeling under the pressure of American sanctions and this move could help Cuba dodge American sanctions.
A resolution published in the Official Gazette said the central bank will set regulations on cryptocurrencies and determine how to offer licenses to providers of related services within the country.
The resolution also says that the central bank can authorize the use of cryptocurrencies “for reasons of socioeconomic interest” but with the state ensuring operations are controlled.
The popularity of cryptocurrencies has increased in Cuba among some technologically savvy groups since it has become harder to send and use dollars due to sanctions imposed on the country under former U.S. President Donald Trump.
Moreover, Cuba’s move comes as El Salvador gets ready to formally recognize the use of Bitcoin as a way to encourage remittances from its citizens living abroad when its crypto law comes into effect in September.
However, the move opens the door to businesses and people who want to use digital assets in Cuba within an official, regulated framework.
Tesla Wants to Sell Electricity Directly to Households in Texas
Elon Musk’s Tesla is taking steps to supply electricity directly to customers in Texas, according to an application that the company filed this month with the Public Utility Commission in Texas.
Tesla Energy Ventures, a new subsidiary of Tesla, applied with the Public Utility Commission of Texas on August 16 to become a retail electricity provider.
For the operations, Tesla Energy Ventures will use employees from Tesla’s energy division, which is the division that sells solar rooftops.
The venture follows the start of a big battery built out by Tesla in Angleton, Texas, where the company aims to connect a 100-megawatt energy storage system to the grid.
The company has already put up many utility-scale energy storage systems in key locations around the world including, Los Angeles, California, and two in Australia- Geelong, and Adelaide. However, supplying electricity to Texas will be a big responsibility.
Around the Web
🇭🇳 Honduras gets first Bitcoin ATM amidst surge: Honduras had its first-ever Bitcoin ATM installed in the capital, Tegucigalpa, amidst a surge in interest in crypto assets. The Bitcoin ATM installed by Honduran firm TGU Consulting Group allows users to acquire Bitcoin and Ethereum using the local Lempira currency.
💵 Snyder Raised $2M in a Late Seed Round: Accounting platform Snyder has raised $2 million from TMT Investments in a seed round aimed at attracting new clients and promoting the company’s visibility.