Rob Black’s Winners and Losers: Lyft, Uber suspend service in Austin

SAN FRANCISCO (KRON) — On today’s edition of Rob Black’s Winners and Losers, our financial expert Rob Black and KRON 4’s Mark Danon about Lyft, Southwest Airlines and Krispy Kreme Doughnuts.

Ride-sharing services Uber and Lyft plan to suspend service indefinitely Monday in Austin after voters in Texas’ tech hub failed to adopt a ballot measure that would have allowed them greater self regulation. In a dispute that could play out in other cities, Uber and Lyft say new rules required on them in the Austin area, including fingerprinting of drivers, makes its hard for them to continue to follow their business models.

For years, airline industry analysts have used the term “Southwest Effect” to describe how airfares offered by the nation’s major carriers decline after Southwest Airlines starts to compete with those airlines on specific domestic routes. Now that the airline has started to serve international destinations, it seems that the same “Southwest Effect” extends to foreign routes,. Fares for flights to Mexico, Central America and the Caribbean dropped as much as 25% after Southwest joined the competition.

Krispy Kreme Doughnuts woke up Monday to a glaze of cash. The chain famous for its simple glazed yeast doughnut will be acquired by JAB Beech, a subsidiary of investment firm JAB Holdings Company, in a deal valued at $1.35 billion. JAB has had its eye on morning treats, acquiring Keurig Green Mountain in a $13.9 billion deal last year. It has controlling stakes in other coffee companies including Peet’s Coffee & Tea and Caribou Coffee.

Rob Black answers Wanda’s question: How do I protect my investments in retirement?

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