Insyte Weekly: Takealot ready for Amazon, Kenyan fashion is going global, Klarna & Uber forge a new partnership, and more

From antitrust lawsuits against Apple, a potential boost for Botswana’s tourism, Kenya’s fashion industry and many more top stories, we’ve got a breakdown of all the business news you need to know in this edition of Insyte Weekly. Find out more about the stories shaping the business world today

Media & Entertainment

As reported by Kelvin Chan, the antitrust lawsuit against Apple by both U.S. and European regulators will greatly affect the company and consumers in the respective regions.

One major area of contention has been Apple's restrictions on music streaming apps like Spotify, particularly regarding payment methods and promotional offers. In Europe, Apple is already prohibited from implementing such practices and regulators imposed significant fines. This has led to changes in how music streaming services can operate on Apple devices in Europe, potentially foreshadowing similar shifts for U.S. users.

Another issue revolves around mobile payments, where Apple has faced accusations of limiting access to its payment technology and favouring its own Apple Pay service. The company has made concessions in Europe to address these concerns, but the final decision is pending feedback from stakeholders.

Fashion

African Business broke the story that The International Trade Centre's Ethical Fashion Initiative (EFI) is set to empower 2,500 Kenyan fashion creators from marginalized communities to enter global markets. With a successful 15-year track record, EFI promotes circular design and production to minimize waste and create durable, reusable fashion products. The initiative, launched in collaboration with the Italian Government and local partners, aims to provide specialized training, improved working conditions, and access to international markets for Kenyan artisans. The project launch, held at the Don Bosco Training Centre in Nairobi, was attended by key officials and stakeholders, emphasizing the commitment to inclusive and sustainable economic growth through entrepreneurship and job creation in Kenya's fashion industry.

Fintech

Omar Faridi reports that Klarna and Uber have partnered to offer convenient payment options for consumers using Uber's ride-sharing and delivery platforms:

• Klarna's Pay Now option allows users in the US, Germany, and Sweden to pay for their rides or deliveries immediately with one click, tracking all purchases in the Klarna app.

• Users in Sweden and Germany can benefit from Klarna's monthly payment option, bundling purchases into a single, interest-free payment aligned with their monthly salary cycle.

Sebastian Siemiatkowski, Klarna's CEO and Co-Founder, emphasized the partnership's importance in providing flexibility and convenience in payments, especially for on-the-go consumers.

Karl Hebert, Uber's Vice President of Payments, Risk, and Identity, highlighted how Klarna's offerings align with Uber's commitment to improving and localizing the payment experience while reducing the cost of acceptance.

The partnership comes at a time when Uber has seen significant usage, with billions of trips taken in 2023, and Klarna positioning itself as a fairer alternative to traditional credit cards, conducting thorough eligibility checks to ensure responsible lending practices. It will be interesting to see if Uber forges similar partnerships with fintech companies in other markets.

Tourism

Capri is the latest European tourist attraction to combat overtourism. Capri has long been a popular tourist destination, drawing thousands of visitors daily during peak seasons. The influx of tourists has led to challenges for the island, including overcrowding, housing shortages, and transportation difficulties.

With as many as 16,000 tourists arriving daily during peak times, Capri's 12,900 residents find themselves outnumbered. Many locals rely on tourism for their livelihoods, but the surge in visitors has transformed the island into a tourist-centric environment, leading to concerns about sustainability and quality of life. To address some of these issues, Capri has increased its visitor fee and is encouraging off-peak season visits.

Similarly, Tenerife is implementing a new tax aimed at curbing overtourism, which will be effective from New Year's Day 2025 according to William Mata. The tax is intended to address concerns raised by mass protests regarding the environmental and cultural impacts of excessive tourism on the island.

The exact amount of the tax has not been disclosed yet, but it will be levied on visits to natural spots, beauty sites, and tourist attractions such as Mount Teide and the hamlets like Masca. This tax will also apply to residents of the island.

The decision to introduce this tax follows significant protests and a hunger strike by tens of thousands of people in Tenerife, Lanzarote, and Gran Canaria. The protests were organized by the platform Canarias Se Agota, highlighting concerns about preserving the natural and cultural heritage of the Canary Islands and managing tourism in a sustainable manner.

Venice also recently implemented a trial fee of €5 (approximately $5.40) for day-trippers on specific peak days to manage overtourism and improve the liveability for residents as reported by Alexandra Bacon. However, this move has sparked protests among residents and some visitors who believe that charging people is not the solution to the city's tourism challenges.

The fee applies on 29 designated "peak" days, and tourists visiting for the day need to purchase a ticket online or at booths to enter the city. Failure to register may result in being stopped by a ticket inspector and charged a fine ranging from €50 to €300. On the first day of implementation, 113,000 people registered, with 15,700 paying guests.

While the fee is aimed at managing tourist numbers and generating revenue to cover operating costs, it has faced criticism for its impact on freedom of movement and its effectiveness as a deterrent for tourists. Some locals argue that Venice is becoming overly commercialized, resembling a theme park rather than a living city.

While European countries continue to reduce the influx of tourists, efforts continue to be made to cultivate tourism in Africa. UN Tourism, in collaboration with Botswana's Department of Tourism, has initiated a scoping mission targeting Tourism Development Area 1, encompassing Gaborone and its environs. This region, renowned for its diverse landscapes, wildlife, and cultural richness, presents substantial untapped potential for tourism expansion. The mission's objectives include pinpointing undiscovered tourism sites, conceptualizing potential projects, and engaging stakeholders for sustainable development. By leveraging Botswana's tourism assets, this effort aims to create innovative projects that align with the country's unique strengths, fostering economic growth while safeguarding its natural and cultural heritage. These initiatives play a pivotal role in Botswana's aspiration to emerge as a top-tier tourism destination, guiding its path toward sustainable development, collaboration, and global appeal.

Retail

When it was announced that Amazon would be entering the South African market, there were understandable concerns about the impact the competition would have on Takealot. However, Fred Zietsman, the CEO of Takealot Group, believes that the strategies implemented during and after the Covid-19 pandemic will enable Takealot to stay competitive in the South African e-commerce landscape, especially with Amazon's impending launch in the country as reported by Myles Illidge. In a recent interview on 702, Zietsman emphasized Takealot's deep understanding of South African consumers and their preferences, leading to strategic adjustments and upcoming changes in their business model in 2024. He also highlighted Takealot's differentiation through services like Mr D for food and grocery deliveries, offering a unique value proposition compared to Amazon. Zietsman's outlook reflects a proactive approach to competition, focusing on customer-centric strategies and market differentiation to navigate the evolving e-commerce landscape in South Africa.

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