Waiting for the surge pricing to end like... [FluxFactory/E+ via GettyImages]
Hey Snackers,
After "I do," these couples will be saying "I meme it." That's right: meme-based dating has finally arrived.
Stocks barely budged yesterday as investors chewed on manufacturing data: rising commodity prices and shortages are putting a damper on activity.
Checked both Uber and Lyft... then checked the bus schedule. If you were one of the 7M people who passed through TSA during Memorial Day weekend, there's a good chance you Ubered/Lyfted from the airport. There's also a good chance that your rides broke the bank. ICYMI: surge pricing is the new regular pricing.
Your Uber is 24 minutes away... dope. Uber and Lyft are dealing with major driver shortages, which is boosting prices and wait times. Half of Americans are vaxed, the CDC lifted its mask mandate for FVPs (fully vaxed peeps), and Shot Girl Summer is starting. Ride-hailers don't have enough drivers to meet rebounding demand.
The gig economy is in an awkward phase... Ride-flation addresses Uber and Lyft's biggest PR issue: not paying drivers enough. More than other types of companies, Uber/Lyft can easily pass on extra costs to consumers. Now, drivers are getting paid more — but customers aren't happy. Long-term, higher fares may cause customers to shift to other modes of transport. That's why Uber/Lyft are trying to solve the shortage before riders do.
A cushy earnings report... Canadian pot giant Canopy Growth revealed that sales were 37% higher in its latest fiscal year. Canopy is finally selling more pot than it harvests, and still holds the #1 spot in Canada's “flower” market (flower = weed). The buzz kill: Canopy lost $1.7B, but says it's still on track to turn a profit next year. Despite strong growth across categories, earnings missed expectations and the stock fell 7% yesterday.
Looking beyond the flower... Canopy's goal of "unleashing the power of cannabis to improve lives" goes beyond leafy greens. Canopy has been leaning into "beyond the flower" products. Think: CBD wellness gummies and THC iced tea. It's even selling CBD pet snacks with Martha Stewart (for when your Schnauzer is stressed after work). "Beyond the flower" is thriving: Canopy's "Other" category saw the fastest growth last quarter.
Legalization is still a big "if"... Despite being one of the biggest weed companies, Canopy's yearly sales were just $450M — less than 1% of Bud-maker AB InBev's annual sales. To really grow, Canopy and other cannabis cos need marijuana to be federally legalized in the US — it's still as illegal as LSD at the federal level. While cannabis companies try to hash it out with the US government, "beyond the flower" products like CBD edibles and drinks will be key to growth. The CBD market is expected to grow to $13.4B by 2028, from $3.5B today.
Authors of this Snacks own shares of: Uber and Tesla
ID: 1670354