Chief executives are being warned to “think twice before they tweet” after the boss of takeaway company Just Eat Takeaway was told his Twitter spat with Uber threatened to undermine the firm’s reputation.
Jitse Groen this week became the latest in a growing list of chief executives to be rebuked by customers, investors and even regulators over ill-judged tweets.
Cat Rock Capital Management, an activist investor which has a 4.7% stake in Just Eat, highlighted Groen’s Twitter battle with Uber boss Dara Khosrowshahi as an example of outbursts that damaged the brand. The investor said Groen’s tweets had partly led to the firm being “deeply undervalued and vulnerable to takeover bids at far below its intrinsic value”.
Earlier this year Groen had a rant at financial analysts on Twitter, claiming that “some can’t even do basic maths”. He tweeted that he was “amazed how bad these analysts have become … All of them mix up definitions. It’s unbelievable.”
Brand and marketing expert Mark Borkowski said Groen’s case highlighted the difficulty executives face when trying to engage with customers on the platform.
“Everyone sees Twitter as a huge marketing opportunity that can drive a business forward, and it really can,” Borkowski said. “But these bosses must stop and think twice before they tweet, as just one misjudged tweet can send their share price plunging.”
Possibly the most expensive tweets ever sent were posted by Elon Musk, the maverick boss of electric car company Tesla, in 2018. The US Securities and Exchange Commission fined Musk and Tesla $20m each after he tweeted that he had “funding secured” to take the company private at $420 a share. The regulator said the tweet, which sent Tesla’s share price up by as much as 13%, violated securities law. As part of the settlement, Musk was ordered to step down as Tesla’s chairman.
Musk’s tweets continued to anger some investors. Pirc, an influential adviser to shareholders including the UK’s local authority pension funds, last year recommended that investors voted against Musk’s re-election to the Tesla board because his tweets posed “a serious risk of reputational harm to the company and its shareholders”.
“Twitter is all about personality,” Borkowski said. “While Musk’s tweets can be very controversial, they fit with his brand. Twitter is perfect for renegades, mavericks and disruptor brands. It’s much harder for well-established brands with solid reputations, if something goes wrong for them they risk damage to their hard-earned brand.
“People now think that to run a successful business, you have to be on social media and every brand has to have a Twitter account,” he said. “The chief executives see that the bosses of their rivals have a Twitter profile, and they feel they have to have one too.”
Borkowski said some bosses have been very successful at building a presence and personality on Twitter, and using their platforms to promote social issues such as LGBTQ+ rights and the Black Lives Matter movement (as well as promote their brand and products).
James Timpson, the chief executive of cobbler Timpson, this week celebrated passing 100,000 followers on his account on which he weaves photos of his colleagues working in shops with posts tackling tax avoidance and prisoner reform.
This week, he responded to Boris Johnson’s proposal to create “fluorescent-jacketed chain gangs” of people found guilty of antisocial behaviour with a tweet suggesting offenders should be helped into work instead.
Tim Cook, the chief executive of Apple, has won praise for using Twitter to successfully pressure the governor of Indiana into revising proposed legislation that had threatened to allow discrimination against gay people on religious grounds.
Researchers at Harvard Business School and Duke University said Cook “effectively framed the debate using social media at a time when opinions were being formed and the impact went beyond the political”.
Borkowski suggested that before chief executives tweet they should “consider whether they have the personality and temperament to get the tone right each time”.
“There is nothing more inelegant than a chief executive going after rivals publicly on Twitter,” he said.
It was exactly that sort of behaviour that Cat Rock had accused Groen of undertaking. When Uber Eats announced earlier this year that it would take on Just Eat in Germany, Groen lashed out in a tweet directed at Khosrowshahi, accusing him of “trying to depress our share price”.
Khosrowshahi replied that perhaps Groen should “pay a little less attention to your short term stock price and more attention to your Tech and Ops”. That sparked Groen to reply “thank you for the advice, and then if I may .. Start paying taxes, minimum wage and social security premiums before giving a founder advice on how he should run his business”.
Alex Captain, Cat Rock’s founder, said: “The response should not happen on Twitter. It should happen on a credible forum with the facts, data, and analysis that the company has at its disposal.”
A Just Eat spokesperson said: “Just Eat Takeaway.com has a regular dialogue with all its shareholders and we take all their views very seriously.”
The two companies will get funding from investor Hg to hire more employees and innovate new technologies across Ireland and the UK.
Irish payroll management tech company BrightPay has announced a merger with London-based accounting software company Relate Software in a bid to integrate services for SMEs across the two islands.
Based in Co Meath, BrightPay has been operating in Ireland for more than 25 years and employs more than 70 people in the country. It provides payroll software services to more than 330,000 employers in Ireland and the UK.
Upon merging, BrightPay CEO Paul Byrne and Relate co-founder and CEO Ray Rogers will remain investors and become co-CEOs of the new entity. The other co-founders of each company will also continue to invest in the new business and develop products.
Byrne said that Relate’s track record in the sector will help them become the leading service for many businesses and accountancy firms.
Private equity investor Hg, which focuses on software and service businesses in Europe and North America, will become the majority investor in the combined business. “Their deep sector knowledge has proven invaluable to us and will be instrumental in fuelling the further growth of BrightPay/Relate,” Byrne added.
New hires and technologies
The merger will benefit from the combination of BrightPay’s expertise in payroll software with Relate’s experience in accountancy management tech. Together with Hg, the new business will invest in new technologies such as cloud and automation to improve their services.
Rogers, founder and CEO of Relate, said: “Combining products from both businesses will provide a compelling offering for our customers, with the scope and backing for further innovation and development.
“I’m looking forward to working with Paul and am also excited to welcome Hg, a leading software investor with a track record of supporting growth in Irish software businesses.”
While details of the transactions have not been disclosed, the combined business will have more than 190 employees with plans to hire more people across Ireland and the UK.
“Both BrightPay and Relate are very highly regarded businesses and champions in their field,” said Jonathan Boyes, Hector Guinness and Thomas Martin of Hg in a joint statement. “The two companies bring together core operational strengths whilst also unlocking a high-quality, complementary suite of products to a newly combined customer base.”
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The UK media regulator, Ofcom, has introduced a new service to make it easier for customers to switch broadband supplier to get a better deal.
Ofcom hopes the new process, One Touch Switch, will encourage people to seek out better deals after research found that more than two-fifths of people were put off switching broadband suppliers because of the hassle.
People can already switch between providers that use Openreach’s broadband network – such as BT, Sky and TalkTalk – through a process requiring a customer to only contact their new supplier.
However, until now customers looking to change networks or technologies – such as between Virgin Media’s network and a provider on Openreach or other smaller networks such as Hyperoptic or CityFibre – had to deal with both the new and old supplier simultaneously.
Ofcom research found that a quarter of customers making such a switch faced attempts by their provider to stop them. The One Touch Switch process aims to eliminate these issues, including customers having to sort out the end and start dates of their old and new services.
“Household finances are strained at the moment, so switching broadband provider could help keep your bills down,” said Lindsey Fussell, the network and communications group director at Ofcom. “We’re making it as easy as possible for you to break up with your broadband provider and take advantage of the deals on offer.”
Ofcom said the new rules will also mean that suppliers will have to compensate customers if they are left without internet for more than one working day during a switch. All suppliers must introduce Ofcom’s new simplified switching process by April 2023.
The regulator has introduced a range of measures in recent years to make sure customers have access to the best deals. These include cracking down on the so-called “loyalty penalty” by which customers who stick with their broadband, mobile or pay-TV supplier are not offered the same discount deals as new customers.
India and Japan have each flexed their cyber-defence muscles in ways that China can’t miss.
Japan’s flex was the Monday launch of a national cyber-security policy that for the first time names China, Russia, and North Korea as sources of heightened threat. The policy also calls for Japan’s Self Defence Force to increase its digital capabilities.
The new plan was released as expected under Japan’s policy of refreshing its defensive plans every three years. The theme for the policy is “Cybersecurity for all” and chief cabinet secretary Katsunobu Kato said its aim is to ensure that no part of Japanese society goes without the protections it needs.
Kato said the plan was also developed because Japan’s government “recognised a threat” and therefore a need to strengthen its online defences. The policy documents list many recent infosec incidents – such as the attack on SolarWinds and Microsoft’s Exchange flaw – as the sort of thing Japan needs to counter.
India’s flex came from vice-president M. Venkaiah Naidu, who on Monday visited a military museum and remarked that India’s security forces should “prepare themselves to dominate not only in a conventional war but also establish their superiority in the new and emerging areas of conflict such as information and cyber warfare along with the increasing use of robotics and drones in the battlefield”.
“The nation is assured that any misadventure by an adversary will be given a befitting reply by the Indian Army,” Naidu said.
While the position of vice-president is largely ceremonial – the officeholder is backup to the head of state, but actual power resides with Parliament – Naidu’s words have weight. Doubly so as he stated India faces “both symmetric and asymmetric threats from outside and within” and then asserted India’s sovereignty over Jammu & Kashmir and argued that previous arrangements that gave the territory autonomy were temporary.
Mentioning Jammu & Kashmir is significant, as the disputed India/China border is in the territory. The territory is also the subject of a dispute with Pakistan.
Kashmiri separatists, which India labels Pakistan-supported terrorists, and China, will all have noticed the veep urging India to arm itself in the kinetic and digital realms.
China has certainly noticed last week’s meeting of “The Quad” – the grouping of Australia, the USA, Japan, and India – and its announcement of plans to develop infosec standards it hopes the world will follow.
China’s foreign ministry has labelled The Quad a “closed and exclusive clique” informed by “outdated Cold War zero-sum mentality and ideological bias”.
Spokesperson Hua Chunying addressed the issue at a press conference in response to a question from Russian news agency TASS. “For some time, these countries have been keen on insinuating China with the so-called ‘rules-based order’, playing up and inciting the so-called ‘China threat’ theory, and driving a wedge between regional countries and China.”
Te actions of Japan and India actions suggest the wedge is working. ®