Hey Snackers,
Hedge fund icon Ray Dalio is still making his way back from Burning Man (tie-dye fur coat included).
For the rest of us, all eyes are staring at Apple's keynote stage for its annual product unveil — here's how to watch on your soon-to-be-inferior phone.
No talky until coffee... Starbucks is making it possible — CEO Kevin Johnson sat down with Bloomberg to reveal a pick-up only store is in the works for NYC this fall. Picture NASCAR pit stop meets barista nightmare — Starbucks is targeting "people on the go" (aka all humans in Manhattan) because even pre-orders face lines lately. Other key deets:
If the Starbucks mobile app had feelings... this would be its dream. The pick-up concept blends deliciously with the Starbucks app's growth — usage has surged to hit 2 shocking numbers:
American companies are now inspired by Chinese ones... This wouldn't be Starbucks' 1st pickup location — it launched the same concept in China last summer as "Starbucks Now." It made that move because local Chinese rival Luckin Coffee pioneered the concept across the Great Wall, jumping to 3K locations in under 2 years (Starbucks is barely higher at 4K China stores). It's an early example of American retail copying Chinese competition.
Freight just brought sexy back... Uber wants to make trucking its next profit puppy. Just like ride-hailing, Uber Freight connects drivers (of 18-wheelers) with riders (Budweiser's beer kegs or Land O'Lakes' stacks of butter). Uber just announced that Freight is its fastest-growing business line, so it's investing more in a big way:
Uber's spending money to stop losing money... It lost a gargantuan $5B last quarter (the last 3 months), and loses $3.36 each time someone delivers an Uber Eats meal. It's funneling money away from marketing (it laid off 400 this summer in that dep't) and toward this growing bet.
Freight has to be different than the rest of Uber... Uber's 3 non-Freight divisions — rides, bikes/scooters, and Eats — all face copycat competition. Without barriers to entry to creating an app platform, Lyft, DoorDash, and others keep prices low and competition fierce. Uber must find a way to prevent an Amazon Freight or Lyft Trailer from becoming a thing.
Haters gonna hate... Only some release a 23-page open letter about it. Hedge fund Elliott Management just sent one to AT&T after splurging $3.2B for a 1.2% stake in the telecom giant. The letter's core theme: Change (almost) everything. Here's how to interpret the Real Housewives-style takedown:
Here's the problem... There are a lot of problems facing AT&T. The hedge fund spent pages 2-23 covering them.
AT&T is a tech company led by landline guys... That's the biggest issue. The current CEO has run things for 12 years, and the newly-promoted COO's telecom roots go back to 1998. But now AT&T is a tech media company that owns streaming tech and HBO — that means it competes directly with Netflix. Elliott wants leadership to be more iPhone, less landline.
Disclosure: Authors of this Snacks own shares of Luckin Coffee, Volkswagen, and Amazon
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