Posts with «finance» label

Amazon reportedly pressuring suppliers for a discounted stake in their businesses

Amazon has reportedly struck dozens of deals with suppliers to buy stakes in their companies, potentially at lower rates. It has scooped up warrants for at least a dozen publicly traded companies and more than 75 private businesses, according to The Wall Street Journal. Amazon's stakes and potential stakes in those organizations is worth billions of dollars.

Warrants work in a similar way to stock options. Holders of warrants can buy shares at a fixed price during a certain period. If the share price rises during that time, the warrant holder can swoop in and buy a stake in the company at a below-market rate.

Amazon is said to have warrant deals with Kohl's, aircraft-leasing companies, call center businesses and hydrogen fuel cell suppliers, among others. Some of the deals have made Amazon one of the top shareholders in the respective companies, according to the report. In several cases, the ecommerce giant has the right to board seats and an option to outbid any acquisition offers.

Leaders at some of the companies suggested they couldn't turn down Amazon's proposal else they could risk losing a big contract to a competitor. Some chalked up Amazon's demands as the price of doing business.

Amazon told the WSJ that warrant agreements are part of less than one percent of the deals it agrees with suppliers. In some cases, the warrants are connected to certain thresholds. They often don't come into effect until Amazon purchases a certain level of goods or services.

We've seen some other evidence of this strategy in action. Last week, Amazon ordered 1,000 autonomous driving systems from Plus, a company that develops such tech for self-driving trucks. It also scooped up the option to buy up to a 20 percent stake in the startup.

Amazon has reportedly been engaging in this practice over the last decade or so, and it's said to have ramped up its efforts to secure warrants over the past few years. However, with Amazon facing deepening antitrust scrutiny, regulators may not look favorably on a report that suggests Amazon is pressuring companies into accepting terms that could force them to sell shares at below-market rates.

How to get hassle-free car insurance in just a few minutes

We would all like to think we’re impeccable drivers, but the reality is most of us are far from perfect on the road. Even if self-driving car tech improves and your vehicle is equipped with the best version, chances are you’ll eventually end up in an accident. You may even be at fault.

Though accidents can’t be completely prevented, the enormous property damage bills that come along with car accidents can be partially minimized with the right insurance. Auto insurance is required in most states, yet this incredibly important protection is often overly complicated to understand and annoying to secure. If you’re looking for a digital-forward, hassle-free way to manage your auto insurance, you might want to consider Clearcover.

Clearcover offers competitive prices while promising excellent service. You might be thinking “I already have car insurance,” but did you know that you’re actually allowed to switch insurers at any time? That means you can, and should, compare rates between insurance companies often. With Clearcover, you can find your price in just a few minutes.

As mentioned, Clearcover sets itself apart by offering a digital-first solution, which is ideal if tapping numbers through an automated phone system and then waiting on hold for an agent is not your idea of a good time. In fact, signing up for a new policy is as simple as visiting Clearcover’s website and answering the questionnaire on screen. No pushy sales rep, and no sneaky upsells.

One satisfied customer wrote: “Love the low prices for coverage that is usually overpriced here in TX, all roadside assistance is immediate. Also love the ease of mobile accessibility (policy info, documents), all at your fingertips.”

The Clearcover experience remains digital throughout. For instance, you don’t need to print out an auto ID card or wait for it to arrive in the mail. Clearcover lets existing customers save a digital ID to their phone for proof of insurance anywhere, even in places without WiFi or cellular service. Payments are handled online as well, so you can change payment methods or even get a new policy in just a few taps.

In the unfortunate event of a car accident, Clearcover has your back. Filing claims is stressful enough, but the company’s AI-powered Clear Claims method simplifies the process by validating your claims and determining your eligibility for payment. You can track each claim’s progress through the mobile app, and you’ll typically get your payment within a week. It’s just like Lemonade, but for car insurance. Clearcover’s record for fastest payout is just 13 minutes, which definitely beats dealing with claims reps.

Whether you’re looking for an easier way to find better car insurance coverage for less or you’d just rather go digital, Clearcover can help. Find your price and see how much you can save.

Clearcover is currently live in 13 states.

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