The Best One Yet - 🧸 “40-year-old Lego master” — The Kidult toy economy. The Amazon GrubHub sweetener. The major questions doctrine.

Episode Date: July 7, 2022

The fastest growing segment in toys… is grownups (we’re talking middle-aged fans of Legos, scooters, and dolls). Amazon just invested in GrubHub to add food delivery to Prime because nothing’s stickier than a few sweeteners. And last week the Supreme Court reached one decision that affects every industry in the US: “The Major Questions Doctrine.”$MAT $HAS $JTKWY $AMZNFollow The Best One Yet on Instagram, Twitter, and Tiktok: @tboypodAnd now watch us on YoutubeWant a Shoutout on the pod? Fill out this formGot the Best Fact Yet? We got a form for that tooLearn more about your ad choices. Visit podcastchoices.com/adchoices Hosted on Acast. See acast.com/privacy for more information.

A foot injury that you got, that's like the least impactful on this podcast. Like if you're going to injure any part of your body, I'm just happy it's from the waist down. Hands would be problematic. Yeah, that would be a problem. Face would be an obvious problem. Huge issue. Voice, mouth. That's a problem.

Ears. This is Nick. Jack, your line. No, foot is actually a great injury to have if you're a podcast host because then you can't even move. You have to record the podcast. Yes. Yeah. Yes.

What I'm trying to say is your pain is our game, Jack. Here we go. Three, two. This is Nick. This is Jack. It's Thursday, the new Friday, July 7th, and today's pot is the best one yet. TV-O-I, Nick. It is, however, the slowest week on Wall Street.

It's always the week after the 4th of July. Doesn't stop us, though. We still whipped up a T-boy, and our first story is Amazon, which just added free Grubhubhub food delivery to Amazon Prime. Yeah, nothing is stickier than a sweet dinner. For our second story, what do Bitcoin? nitrous oxide and the Supreme Court all having come. The major questions doctrine.

So we're jumping into a T-Boy stuff. Our third and final story is the fastest grown segment in the toy industry. Adults. Adults. Scooters for 40-year-olds. It's the rise of the kid adults. But before we hit that wonderful mix, Nick. Honestly, there were literally no stories out there, Yetis.

Jack and I found three fantastic stories. I love the stories, Jack. Forget the song of the summer. What's the cocktail of the summer? Well, 2020, it was the Aprol Spritz, Jack. It's pronounced Spritz and... 2021, it was the espresso martini. For 2022, the cocktail of the season may be hidden in your garden.

Veggie cocktails took over London. Now they're coming to the U.S. Excuse me, is this an ice cube or a turner? Alcohol, it was already plant-based. This is like explicitly plant-based, Jack. Nick, have you tried one of these tamatinis? Okay, it's like a martini, but it's like mixed with a caprazi salad. How about the avocado donut?

Okay, that's a Nogroni, but it's more Glock forward. Yeties, these are real drinks being served right now in London, and they're headed across the pond just in time for summer. Now, Bessie, Jack and I already told you about the balsamic vinegar alt Coca-Cola trend that was hidden TikTok. All veggie cocktails are kind of like that, but with a splash of asparagus. Because if you're going to have a mojito, you may as well get some vitamin B too. Bartender, this cosmopolitan needs a dash of potassium. I'll take it planted, not stirred.

Yeties, cauliflower cocktails. get ready for him at a saloon near year. The spinach cancels out the sugar. Let's tip our three stories. Fifteen years before this song, two boys from the Northeast met in the dorm. They had an idea that caused a cultural storm. I don't even think they need to practice.

50% that's a fat tip. Tea Boy City on your at list. If you know, you know, because we're ready to go. We can't wait no more. So just start the show. Start the show. For our first story, Amazon just bought part of Grubhub, And now Prime gets free food delivery.

Wow! Because nothing sticks like a sweetener. Jack, do you remember the last time we covered Grubhub on this pot? Unfortunately, yes, I do. That was tough. Grubhub tried to offer every New Yorker a free lunch. How many New Yorkers are there again? Eight million.

It was completely overwhelmed. Where's my falafel? Everyone was angry. It was a disaster. I ordered a falaf. But with this news, here's what you'll get. Yeah. If you will get.

are an Amazon Prime member, you're now going to get free Grubhub Plus for a year. That's a lot. Grubhub Plus, that's a $120 value. It gives you unlimited delivery with no fee as long as you're ordering 12 bucks or more of munchies. No delivery fee, no fee fee, pad tie, takeout, extra cash shoes hold the delivery fee. So that's what like most of us Amazon Prime members get. Here's what Amazon gets with this deal. Amazon is getting 2% of Grubhubb the company. The deal also, includes the option for Amazon to acquire up to 15% ownership of that food delivery business. So maybe, just maybe, some hardcore Prime holdouts just can't resist a free pad tie delivery check. That guy, Larry, and 6F, he's finally going to join Prime because of this.

But yeties, we know what you're thinking, what does GrubHub get? And what Grubhubbub gets is they probably don't have to spend another dollar on marketing ever again. That's right, because this deal with Amazon Prime represents a customer, acquisition fire hose for Grubhub. Yeah, because there are 150 million Americans who are Prime members right now. And that's 150 million Americans who may now use Grubhub for food delivery and not DoorDash or some other app. Which means if you're Grubhub, you probably don't have to spend another buck on marketing ever again. Why give away $5 promo codes for your first meal if Amazon is promoting you right in the middle of their app to Prime members,

which is half of the United States? So that's why shares of Just. Debt Delivery, which happens to own Grubhub, jumped 20% yesterday. And that's why shares of Uber and DoorDash both fell about 7% yesterday. But funny thing, Jack, and I noticed when we were researching this story that we should point out. This deal was kind of manifested by Grubhubbhub three years ago. We noticed that three years ago, Grobhub actually described itself as Amazon Prime for food delivery. It's like Grubhubhub closed its eyes and manifested a future in which it gets bought by the everything company. So Jack, what's the takeaway for our buddies over at Amazon and Grubhub.

Nothing feels better than sticky and nothing sticks like a sweetener. Look, Yeti, Jack and I have told you before that the goal of all subscriptions is to be sticky. It feels good. Sticky subscribers never leave. They pay every month. They don't even check their credit card forever. Well, again, Amazon has over half of the United States, so they don't need growth. What they need is retention. What they need is even stickier prime members. So Amazon also happened to announce two other small surprises yesterday, kind of like this Grubhub deal. Amazon managed to snag the TV rights to Champions League soccer for UK Prime members. And Amazon also dropped a teaser for their Lord of the Rings movie, which is premiering in September, but just for Prime users. Each one of these perks is a

prime sweetener tossed into the cauldron that is Prime. There are so many Swedeners now that no matter what phase of life you're in, Amazon Prime still holds value. Amazon is patting prime with a bunch of sweeteners. Because nothing feels better than sticky. For our second story, last week, the Supreme Court made a decision that affects every industry in the U.S. They told regulators they're regulating too much. Okay, Jack, we had a guy in college in our lacrosse team who was nicknamed the regulator. I mean, it sounds like a wrestling term, but like technically what's the definition of a regulator? A regulator is an expert who works for the federal government that does the stuff that Congress doesn't know how to do. They may also be a midfielder who scores a lot of goals. But yes, Congress has the power

to pass laws in this country, but it needs a fixer. It needs a regulator. Right. So when Congress does pass laws, they rely on the regulators to make those laws happen in reality. Like a consulieri and the godfather, like Robert Duval for the Corleonez. I think the EPA would be flattered to be compared to the godfather. Jack, perfect example. The EPA, the Environmental Protection Agency, what was their origin story again? They were created by President Nixon and the U.S. Congress in 1970 to administer this brand spank and new law called the Clean Air Act. And for decades, they kept the air clean with rules and regulations on behalf of Congress. They're the experts that deal with it like a consigliary.

But last week, the Supreme Court said, hey, hold on, EPA, let's pump the break, stand down a little bit. They asked the EPA to do less. Hey, EPA, you can't go ahead and regulate greenhouse gases like that. And that's because whether to regulate greenhouse gases is considered a, quote, unquote, major question. Congress has to decide that, not the EPA. It's a major question. Greenhouse gases are a newer threat to this earth. Nixon and Congress, they hadn't even heard of greenhouse gases when they passed the Clean Air Act in 1970.

So basically, the Supreme Court is saying, hey, you can't regulate greenhouse gases unless Congress says you can with a new law. And that's where this affects every industry. They're calling this the major questions doctrine. And it puts a bunch of other regulations in question two. Okay. So, Jack, let's talk about our favorite lane here, the SEC, Securities and Exchange Commission, which happens to regulate stock markets. The SEC is working on regulating crypto right now, as well as stock markets. But here's the problem. Congress hasn't told the SEC to regulate crypto. And Bitcoin didn't exist 100 years ago when the SEC was created. So if the Supreme Court says the EPA can't regulate climate change, because that wasn't in the 1970 law, can the SEC

regulate Dogecoin, which definitely isn't in any laws? It appears maybe not, Jack. Crypto regulations may be a major decision the Supreme Court is referring to. And regulators don't make major decisions according to the Supreme Court. So Jack, what's the takeaway for our buddies over in every United States industry. If regulators can't write the rules and Congress won't, then companies will. Besties, the Supreme Court's ruling, it says that only Congress can decide on a major new rule for the economy. The reason that that's a problem is that our Congress is consumed by divisive politics

instead of passing laws. Jack, let's look at climate change for an example. If the EPA can't regulate climate change and Congress probably won't do it, then then it's up to companies too. Okay, another example, Jack, how about what's going on up in the skies? Well, the FAA has less power to regulate the skies now. And if Congress does nothing, then it's up to the airline companies. And Jack, how about coming back to stock markets?

If the SEC has less power to regulate crypto and Congress does nothing, then crypto companies have to. Or they just won't at all. Yeah, they just probably won't do any regulation. So Congress could update laws for an evolving economy, but will they? If regulators can't and Congress won't, then companies become the role makers. And now word about our sponsor, Robin Hood. Nick and I got to know Vlad and Bayshut, the co-founders of Robin Hood, when we worked there for three years. And there's this one business principle we heard from them, and we just, we honestly loved it.

A, B, L, always be launching. Always be launching. That's what keeps customers engaged. It keeps investors happy, and it keeps competitors kind of concerned. Always be launching is also consistent with Robin Hood's mission to democracy. monetize finance for all. Yeah, not just stock trading. Also options, crypto, spending, wallets, and more. They launched a lot of stuff. And that's something we heard, we saw, and we adopted it. Yeah, this week, we relaunched the podcast as the best one yet and launched a video pod

right here. More to come. If you're not on Robin Hood yet, want to get started. Go to robinhood.com slash T-Boy and choose your free stock. That's Robinhood.com slash T-B-O-Y. Certain limitations apply. All investments involve risk. Robin Hood Financial LLC, member SIPC. By the way, Robin Hood is no longer affiliated with us or this podcast. For our third and final story, Mattel is betting on the fastest growing segment in kids' toys, which is adults. Kidults prove that sometimes marketing happens in reverse. All right, Jack, take us back.

Kramer household, Christmas morning, I'm going to say, 1996, what's the go-to gift? Can I just tell you what I got? Okay, you can tell us where you got. What you got? I got a rock tumbler, which wasn't the coolest toy. on the block. It sounds pretty cool, like a piece of the agro crag over a Nickelodeon. I wanted the Razor Scooter. Ah, the Razor Scooter. Yeah, you like fracture your fibula riding this thing. But hey, did you see that jump, man? Did you see that jump? I definitely went head over handle

balls once or twice. Yeties, one of the top performing pandemic categories. It was actually toys. Sales of toys in the U.S. surged 37% in the past two years. Parents are working from home, so you need to occupy a little junior, I don't know, order a jenga. Here's the shocker. Fifty-eight percent of those parents buying toys also bought toys for themselves. Yeah, this is what Jack and I thought was wild. Parents are buying themselves the Oscar Meyer Weenie Whistle and they're loving it. You also have a scenario where grown-ups are gifting grown-ups toys. Oh, totally. Like Jack, we couldn't see our buddy Timmy for the last two years. I don't know, send them a Lego back in 2021. Scooters, dolls, skateboards. They're all

experiencing record high sales for the 25 and Upcraft. Now, here's what Jack and I found. fascinating about this story. Toy companies are reading all that data we just described, and they made a curious pivot. They're keeping the products for kids. They're just changing the price for adults. For example, Hot Wheels is doing a remote control Tesla cyber truck. I think Big Johnny wants that more than little Johnny, so they adjusted the mold and jacked up the price. Jack, how about those Mattel Magnetic Tiles toys that they're now doing for adults? Popular with adults. So they got a Beatle theme version with John McCart. Hartney for 135 bucks.

Yeah, ages 3 to 99. Oh, and then Lego launched a Van Gogh themed set. Same cost to create this thing, but they're charging $200 for Starry Night. Here's the biggest, though, the Razor Scooter. Yeah, that's the biggest. They sell them to kids for like $40. There's an adult version now, going for $200. The Electric Razor for a millennial who just got a job but didn't grow up.

What's that going for, Jack? The Electric E Razor Scooter scooter is $600, Nick. Okay, it's twice the size of a kid's scooter, but it's 10 times the price tag. You got to love those kiddalt. So, Jack, what's the takeaway for all our buddies who are also kiddults like us? We call it reactive marketing. Let the people pick the product. Yeties, marketing is a proactive practice. Like, decide how to position and package a product before letting people buy it. But reactive marketing can be effective too. Adjust the marketing after the launch for all those surprise buyers sprouted up.

They made the Razor for kids, but doctors and Esquires are buying up the version for ages 12 and up. So Razor reacted and marketed a whole new line for adults. Mattel didn't fundamentally change the tile toy, but they did add a Beatles brand and then they added a higher price. Reactive marketing takes discipline, but it can pay off in dollars? Jack, can you grab an avocado nagroni and whip up the takeaways for us over there? Amazon Prime now includes one free year of Grubhub Plus. Nothing feels better than sticky and nothing sticks. like a sweetener.

For our second story, the Supreme Court just said regulators can't make major decisions. So if regulators can't and Congress won't, then companies become the rule makers. Our third and final story is Mattel and the other toy companies have a new customer segment, adults. Yeah, cadults, because sometimes you let the people pick the product. Now, time for the best fact yet, this one sent in by Brett Hendricks over in lovely New York City. Push and play. Here we go.

Selim Dion's Power Ballet. all by myself, also had some copyright issues. It was originally composed by Eric Carmen in 1975, but the melody is based on a Rachmaninoff piano concerto. At the time of composition, Carmen believed it was copyright-free and in the public domain, like most classical music. But Rachmaninoff only died 32 years before, and his estate still owned the rights to his music. Carmen quickly came to an agreement to legalize the song, and Rachmaninoff is now credited as the co-writer. Okay, Jack, this is about our tricky trademarks and our crazy copyrights from last week. Celine, at least she was more honest than vanilla ice was.

And Celine, she was under pressure, too. If you know, you know. Yeties, you look fantastic for the new Friday. And if you haven't yet, you should be following us on like every social platform. We're at T-BoyPod. Literally, what do you think? Everywhere, Jack? Just about everywhere. At T-Boy pod, follow us on social.

Jack and I will see you at T-Boy pod tomorrow. And before we go, happy birthday to Logan Carroll, turn in 26 and pop the show. Champaign, Illinois. And happy birthday to David Notton in Oxnard, California. And happy birthday to Faith Lexander over in Glen Cove, New York. And happy birthday to Roe Bargav, father of Gobi. Happy birthday in San Francisco. And Corley, happy birthday. And congrats to him moving back to Mongolia. Happy birthday to Owen Son in Mercer Island, Washington. And Jack Stockton Evanson just got a new job at a cannabis company.

Congrats to Sam and Breton Klepfer, who just got married in Idaho. And Matt Noelle on YouTube, want to know when the T-Boy swag is coming. Jack, when is the T-Boy swag coming? When swag? The answer is you. This is Jack. I own stock of Amazon and Nick and I both own stock of Robin Hood and some Bitcoin. Now a word from our sponsor, Robin Hood.

Okay, so Jack and I got into the news business with our previous company. Markets now. Our goal was basically to democratize financial news for our generation. Cut the jargon. Talk about the profit puppy. So when we first connected with Robin Hood, there was a chemistry there. We were doing for financial news what Robin Hood was doing for the financial system. Robin Hood was democratizing finance for all, and it started by eliminating trading commissions and building a beautiful app.

Remember, we had the same color green. The green was destiny. Destiny, absolutely. So we sold market snacks to Robin Hood, and we launched Robin Hood Snacks. The equivalent of proposing, getting married, and building a family together in just three years. Much more to come on why we're thrilled that Robin Hood is our exclusive sponsor. If you're not investing in Robin Hood yet to get started, you can go to robin hood.com slash T-boy and choose a free stock. That's Robinhood.com slash T-B-O-Y.

Certain limitations apply for a list of other fees. View the fee schedule at RBNHD.C. All investments involve risk. Robin Hood Financial LLC, member S-I-P-C. By the way, Robin Hood no longer affiliated with us or the podcast. I really wasn't setting myself off for success with the box and the stairs and the shoes. You're like describing all the things. Like, and then remember that rake that I strategically placed,

instead of you step on and it hits you in the face. Yeah, like in home alone. I walked into that too. Like in home alone. All those booby traps, they really work. I really did booby traps. I'm like, picture you like carrying back. Oh.

Oh. I was like, can I help you? You're like, no. I don't need help. I can do this.