The Best One Yet - 🤑 “Big Deal Energy” — $5 Hot-Deal-Summer. Delta’s spa strategy. Rivian’s VW sugar mama.

Episode Date: June 27, 2024

McDonald’s, Starbucks, & Wendy’s all just launched $5 Deals… because it’s Hot Deal Summer #BigDealEnergyDelta just opened its 1st luxury massage lounge at JFK… because Delta is the new DINK airline.And Rivian just got a $5B check from Volkswagen… because VW badly needs an IT guy.Plus, the 2 biggest companies in the world are both run by openly gay men… Pride has come a long way in business.$RIVN $VWAGY $MCD $WEN $SBUXSubscribe to our Saturday Newsletter: tboypod.com/newsletter  Watch us on YouTubeSubmit Facts & Shoutouts Instagram, TikTok, LinkedIn (Nick) & LinkedIn (Jack)About Us: From the creators of Robinhood Snacks Daily, The Best One Yet (TBOY) is the daily pop-biz news show making today’s top stories your business. 20 minutes on the 3 business, economics, and finance stories you need, with fresh takes you can pretend you came up with — Pairs perfectly with your morning oatmeal ritual. Hosted by Jack Crivici-Kramer & Nick Martell.00:00 - intro4:12 - Rivian's NEW Sugar Mama9:40 - Delta Spa Strat14:50 - Hot Deal Summer18:39 - Takeaways19:29 - Other News!20:50 - Best Fact Yet22:19 - Shoutouts Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. It's Thursday, the new Friday, June 27th. And today's part, this is the best one yet. It's a T-boy. The top three pop business news stories you need to know today. I mean, Jack, stocks are at all-time highs. You're looking fantastic.

This part looks amazing. Should just get right into it? What do you think? Let's get right to it. Let's get right to it. Three stories for today's T-boy. What do we got, Jack? For our first story, Rivian, just got a $5 billion check from Germany's Volkswagen.

Because you don't test drive electric cars, you test drive their apps. For our second story, Delta Airlines just launched their first ever luxury massage airport lounge in JFK. Jackie, get my left shoulder over here. Because Delta is now Dink Airlines. Delta is now officially Dink Airlines. And our third and final story, McDonald's, Starbucks, and Wendy's all just launched value meals for the same exact price. $5. $5 because this summer is Hot Dale's.

summer. But yeties, before we hit that wonderful mix of stories, it's got big deal energy. I have a trivia question for you, Nick. What are the two most valuable companies in the world right now? Oh, Jack, checking the whiteboard over here. It is not Nvidia. It is Apple and Microsoft. Apple and Microsoft. Together, those two companies are worth $6.5 trillion trillion with a T. Together, those two companies are worth $752 lifts. Nick, that $6.5 trillion is more value than the entire stock market of the United Kingdom, the entire stock market of Germany, of France, even of China. Combine. No, not combined. But still, Apple and Microsoft are worth more than every single stock market in the world except for the United States of America. Apple and Microsoft are worth

more than all the stock in China, all of them, all of them combined. And those two largest companies on the entire planet are both run by two gay men. That's. That's a lot of the world. That's That's right. Two openly gay men run the two most valuable companies in the world. We'll explain. Jack, let's sprinkle on some context, baby. Yeti's Apple. CEO Tim Cook joined Apple back in 1998 before the iPod was an idea. That proud Alabama is also proudly gay. Because in 2014, he became the first ever Fortune 500 CEO to come out as gay. Or as he put it 10 years ago in that epic Bloomberg piece, he is proud to be gay.

Okay, that's Apple. Microsoft. Who are they run by Nick? Well, Jack, technically, the CEO of Microsoft is Sachinadella. True. But the biggest name at Microsoft these days is really Sam Altman, who's the biggest brain in artificial intelligence. Because Microsoft owns half of Sam Altman's OpenA.I. That's why many call OpenA.I Microsoft AI. And Sam Altman has been openly gay since he came out in high school when he was 17 in the Mighty Midwest. In fact, he came out after some classmates objected to a speaker speaking at National Coming Out Day at their high school. So Sam Olin came out for National Coming Out Day.

Now, Yeties, it was 46 years ago this week that the rainbow pride flag was first waived. 46 years since the pride movement began. And wow, talk about progress over that time. That is a lot of progress, Jack. 46 years later, the two most valuable companies on earth are run by two openly gay men. And that is something to take pride in. Yetis, enjoy pride parades this weekend on Sunday. In the meantime, Jack and I are going to hit our three fantastic storms.

Fifteen years before this song, two boys from the Northeast met in the dorm. They had an idea that caused a cultural storm. It's the best one yet, but the best is a norm. That's it. 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. First, a quick word from our sponsor. Our first story. Rivian surged as much as 50% yesterday because it's got a brand new sugar mama. Sugar mutter, actually. Because Volkswagen is investing billions of dollars into Rivian.

Because what Volkswagen really needs right now is just a working computer. Yeah, you just need a computer Volkswagen. But Jack, the number one issue facing electric cars right now, what is it, man? It's that you're EV curious. You're not EV committed. And that is why electric vehicle sales growth has slowed in the last year. And that's why two electric car brands have filed for bankruptcy, Lourdes Town Motors and Fisker. Even Rivian, the hummingbird of the electric truck and SUV market is looking vulnerable right now, Jack.

Rivian stock is down 90% from their all-time high because they lose $39,000 on every car they sell. They're losing $39,000 on every single car. That's not sustainable, man. They are not enjoying economies of scale yet. No, they are not. And that's why, just a year ago, we calculated that Rivian only had eight quarters of cash left before it would go bankrupt. Yeah.

With only $7 billion of cash left, Rivian's multi-billion dollar losses each quarter were quite concerning. But here's the news, Yet is Volkswagen. Just swooped in to save Rivian like a diesel-powered superhero. Volkswagen will invest $1 billion into Rivian today, with $1 billion more. more dollars coming each of the next four years. That's $5 billion total to build electric cars together in a joint electric car venture. Five billion dollars. Are those Deutsche marks or dollars? Well, Volkswagen, either way, it just became Rivian's Sugar Mama, baby. Yeah, they did.

Volkswagen is opening up that fat German checkbook to save this American EV, basically number two Tesla company. It's like Volkswagen is the Demi Moore to Rivian's Ashton Coochre. Can we say that? I don't know if we can say that. We're sorry. We hope that was okay. In the meantime. But Yetis, here's the key about this deal. Volkswagen didn't buy Rivian for its wheels or its chassis or even Rivian's electric motor. Volkswagen is buying half of Rivian for Rivian's brain. Because Volkswagen doesn't want Rivian's hardware, Volkswagen wants Rivian's software. Because Yetis, Nick and I know we both own electric car. It's not really a car. It's really a computer on wheels. It's a computer on wheels. And the

software in that computer happens to be Voswomen. Nick and I know we both. We're both. It's not really a computer on wheels. It's a computer on wheels. And the software in that computer happens to be Volkswagen's biggest weakness. Ever since Volkswagen launched their ID4, which is their flagship electric SUV, it has been infested with software bugs. We read all the articles, like The Verge, they called Volkswagen Software Buggy. Bloomberg called the Volkswagen Software clumsy, and Auto News called it obnoxious. I call it, sometimes infuriating. Because Bessie's Jack jumped in T-boy style.

He actually got one of these Volkswagen electric cars. I still have it. Jack, can you spell a little? T about what the experience is like with that thing? The car parts of the car work really well. Like the brakes, the steering, the engine, the acceleration, it's all very good. The infotainment

screen, the app, the charging station, and connecting with the car, basically the technology is extremely frustrating. Like, yeah, he's when Jack has to open the app to, like, get into his electric car. Let me interrupt you. I have to put in my username and password. Then

it has to scan my face with face ID. Then I have to input a pin A four-digit pin, and only then can I get in. And every single time I open the app, it makes me do all those things. And then it's like, uh, Jack Craber, are you a human or not a human? Please click here, here, and check off all the fire hydrants. Way too much security. Like, if the phone's unlocked, the app should be unlocked.

Now, yeah, it is, that's the problem with the software at Volkswagen. But the way Jack and I see it, in any good deal, both sides should get what they need. In this deal, Rivian needs cash, and that's what it's getting. A $5 billion sugar mama. And Volkswagen needs an IT guy, and that's what it's getting. Rivian's computer brains. According to the Financial Times, Volkswagen will receive immediate access to Rivian's electric vehicle software for use in its own cars.

It's Volkswagen's and its outies. Just in time for Jack's lease to be expiring. So Jack wants the takeaway for our buddies over in the car industry. You can't just test drive a car anymore. You need to test drive the app. Yeties, the most important element of an electric car is actually the app. You need an app to charge the car, to find the charger, to get in the car, to check the battery, you need an app for basically everything in an electric car.

Now, you can use an electric car without the app, but if you did, you'd be missing out on a lot of nice tech features. And that is why 90% of electric car owners use the app with their car. 90% are daily active app users. Tesla's app is so popular among Tesla owners. it is one of the top 30 lifestyle apps in the entire app store. That Tesla app, it is literally your key to the car. Like, Jack, we unlock our car with our phone because the app is the key to Tesla. And you can do it remotely, which is nice. I'm like 5,000 miles away right now, but I could open the car actually, Jack. So Yeties, if the car is becoming a computer on wheels, then the app is

just as important as the engine is. And that is why you need to test drive the app. And that is why Volkswagen just invested $5 billion to buy half of Rivian. For our second story, just as CNBC declared Delta, the luxury airline of America, Delta, just opened a lounge at JFK with ice globes and free massages. Ice globes. I had to Google it, too. Oh, not too shabby. That is the secret to Delta success is something Nick learned in high school lacrosse. College lacrosse, but we can say either one. Yeah, it is the most exclusive club in the world. It isn't Acme. It isn't Studio 54, and it's not that five-story club in Prague you went to abroad. It's the new Delta One Club at JFK International Airport. Yes, it is. And it just opened yesterday, and it makes your local airport lounge look like a waffle house. Yeties, the Delta One Club at JFK Airport is 39,000 square feet, which is the same size as a Whole Foods. There's one key difference. Instead of sodas, they're doing spa treatments. Yeah, they're doing sodas still.

They also have a spa. And in fact, you can actually get the recovery remedy massage, which is a 10-minute shoulder scalp and temple massage for free at the new Delta Club. And you'll do the whole thing wearing a robe that Delta gave you. And then you can take a shower afterwards and treat your eyes, which are jet lagged, with ice serum. That's also complimented. Apparently, the eternal fountain of youth is in Terminal 4 and Delta owns it, Jack. And yeah, they have ice clubs. And no, we're not going to tell you what ice globes are.

Oh, and then you can laugh at the United Plus members as you dine for free at a Michelin World the restaurant with foie gras on your mouth. Now, there's only two ways to get into this Delta One lounge at JFK. Either if you're flying first class or you're in Delta's secret group. Apparently, Delta has a secret invite-only status called 360. That I'm shocked, Nick hasn't been invited to, like frankly. Honestly, I'm kind of feeling insulted right now, Jack. Because Delta apparently taps you like it's the Skull and Bones Club in order to get into

this thing. Because Delta has gone full Soho House. They think they're the Gwyneth Paltrow of Flying. and they want you to feel so special when you're in that lounge that you'll never buy a ticket from anyone else ever again. Delta has gone full goop at 30,000 feet, Jack. But this new Delta lounge at JFK, it symbolizes something bigger. This is what Jack and I found fascinating. This club symbolizes that Delta is America's first luxury airline.

America's first luxury airline. And how did Jack and I know? Well, we see it in the financials. Delta earned $5 billion of profits over the last 12 months. which is twice as much as number two United Airlines. And we see it in the operations. Delta has the highest on-time percentage at 83% of their flights. And we see it in the partnerships.

Delta's got the Platinum MX credit card, which brought in $7 billion for Delta last year. Add it all up, and the result is that Delta stock is literally a class above the competition. Jack, take it away, my friend. Delta's market cap, which is the total value of all the Delta stock out there, out there is twice as much as United Airlines, four times as much as American Airlines, and 20 times as big as JetBlue. Sit down, stand up, and just roam around the Delta Cabin, Jack. Here's the wildest part. Delta is not just America's first luxury airline. It's also

low-key, a dink airline. Jack and I, we think Delta's really the new dink airline is what we think. While most airlines are packed with boomers flying to Del Boca Vista, Delta's passengers are becoming younger. Get this. Over five years, the average loyalty member at Delta, their age has fallen from 44 to 39. No, he should point out, you haddies. It's tough to call any U.S. airline luxurious, okay? We hear you. Finding overhead space is still like Lord of the Flies, Jack.

Get out of the way. That's mine. But within the U.S. airline industry, Delta is where you'll feel the most like a lord and the least like a fly, especially if you're dinking it up. So, Jack, what's the takeaway for our buddies over at Delta? How did Delta become the first American luxury airline? Ground balls win games. Ground balls win games.

Yet he's that as an old saying in the sport of lacrosse that ground balls win games. The idea is that you can't win a championship without doing the small things, like successfully picking up the ball with your stick when it's rolling towards it. La Crosse goes, you should yell at us all the time. Well, that mantra, that's what transformed Delta over the last 10 years, a focus on fundamentals. Delta has focused on the basics, like arriving on time with the airplane, not losing passengers' bags, and minimizing the number of canceled flights. By fixing the fundamental needs first, Delta built customer trust.

Since they were number one in arrival time and not losing bags and not canceling flights, Delta's been able to cash in with higher prices, which passengers are happy to pay. And that is how Delta has the money to invest in fancy amenities by nailing the fundamentals first. If Delta were late or your flight got canceled, they lost your bag, it wouldn't matter how nice the lounge is. You'd be angry at Delta. Delta, they focused on the fundamentals first to surge ahead because ground balls win games. Nick learned that in middle school lacrosse. Like Jack said, college lacrosse.

Division I, College, LaCross. Now a quick word from our sponsor. For our third and final story, it is hot deal summer. McDonald's just launched the first. their $5 value meal. But so did all of McDonald's rivals, because there's something psychologically special about $5 right now. Best is last month, Jack and I told you about the value mealification of America. Every brand was launching some kind of value deal, Nick and I noticed. The first Target dropped the price of 5,000 products in their target stores. Essentially, Isle 6 became their

value part of the menu. And McDonald's was prepping for an actual value meal that they just made official this week. Starting this week for the next month, you can get a McDouble burger, a four-piece chicken McNugget, plus fries and soda for just five bucks. It's not a dollar menu, but even Grimmis is smiling at that kind of a deal. Because it's a temporary reversal of price increases, which are up in the fast food category by 31% since the pandemic began. Now, Yetis, it's not just McDonald's and Target dropping prices and making them feel like value meals is a check. Every fast food and retail brand is trying to offer some kind of a value deal this summer. Boom! And that is why Jack and I have been calling it Hot Deal Summer, Baby. If we put

Hot Deal Summer on a T-shirt Yetis. Yes. Would you be interested? Oh, Jack, what if we put on the back, Big Deal Energy? I'd wear it backwards in that case. I got hot nug summer. Yeties, here's the fascinating part about this story. The real trend isn't the discount. It's the price. Five dollars. Five dollars. Because, Because get this. Just last week, Burger King launched a $5 your way meal, just like McDonald's. Last month, Starbucks launched a $5 pairing menu so you could get a coffee and a croissant for $5 bucks. All right, then this is strange. Even Popeyes just launched a $5 meal for a $5 bucket of boneless wings and drinks. What is going on here, Jack?

The $5 bill is the song in the summer. Yes, it is. It's more popular than Sabrina Carpenter right now. Hot Deal Summer Yeties is being defined by the $5 bill. Abe Lincoln is the new George Washington. And this all reflects an intense consumer desire for value. You're fed up with high prices, so brands across the economy are dropping prices in this economy? They're actually dropping prices in this economy. But this is what got Jack and I curious.

They're all dropping prices to a very particular number. Cinco. Funf. Sank? Is that how they say it in French? You're going to Paris this summer, aren't you, Jack? Jack wants the takeaway for our buddies who are you? are everyone in the hot deal summer economy. Behind every number is a brain. Now, yet it is,

Jack and I have said that price is a signal, but price is also a psychology. There's a strategy behind every price that's chosen, especially when that price is $5. First, research shows that consumers prefer odd number prices to even number prices. Because us consumers believe, for some reason, that if it's an odd number, that it's been lowered from a higher even number, like $10. And also, But one Harvard Business School professor points out that consumers particularly like the number five in a price. Because we like to buy a nice round increments that are easy with math. So $5, it's a nice round, easy number. And then finally, when it comes to number five, there is no easier strategy in business than for competitors to just copy and match exactly what you do.

So when McDonald's announced last month that a $5 value meal was coming, Wendy's copied and pasted the idea. They sucked it. So yet is that is why a hot deal summer is a lot. obsessed with the number five. And big deal energy. But I'm not into this Nug energy you mentioned earlier. Oh, I know you like the hot Nug energy. No, no, no.

Delete the Nug for my T-shirt and I'll buy it. I think you like it. Jack, and you'll whip up the takeaways for us for the new Friday. With its $5 billion investment, Volkswagen and Rivian are sitting in a tree. C-H-A-R-G-I-N-G. Because you can't just test drive the car anymore. You have to test drive the app. For our second story, with Delta's new spa lounge at JFK Airport, it's officially America's first luxury airline.

Because ground balls win games, and Delta did it by focusing on the fundamentals. Now, it's the Dink Airline. Groundballs win games. Nick learned it in peewee lacrosse. And finally, McDonald, Starbucks, Wendy's Burger King, and Target all have some kind of a value deal with the number $5. Because it's hot deal summer and $5 is a little. officially the song of the summer. But Yetis, this pod's not over yet. Here's what else you need to know today. First, tonight is the first presidential debate of the season on CNN. No props allowed. There will be no audience. And if it's not your turn to speak, you are muted. It's actually the earliest ever debate

in presidential history partially because so much early voting happens. Doesn't make sense to have a debate in October when a bunch of people have already voted by that. And second, she in the fast, the Fashion app icon has confidentially filed for an IPO in London. Sheehan, which had a $66 billion valuation in the private market, is powered by real-time Chinese manufacturing. And it appears Sheehan chose London and not New York for the IPO because of tensions between America and China. And finally, Ferrari just announced their first electric car comes out next year for a

price tag of $5.000. Sorry, $500,000. But the big question. How will the ultimate sports car sound in electric? The CEO of Ferrari said, This car will have some kind of a roar, which Ferrari engines are known for. They're not going to recreate the sound of a gas engine, but like, they're going to do something a little freaky.

Most electric motors purr like a cat. Yeah. We think Ferraris may purr like a lion. Ew. That's not lionish, Nick. Come at us, Ferrari. Now, time for the best fact yet. This one whipped up by Jack and me,

because we'll be watching The Bear Season 3, tonight on the premiere. I should be clear, this isn't an ad. Nick and I are just big fans of the show. We're just going to watch the show. We're going to watch the show. The Emmy-winning show about working at a Michelin-Star restaurant in the back of the house. It kicks off tonight, but here's the wild thing, Yiddies.

The biggest fan of the show The Bear may actually be an olive oil. Because Frankie's Olive Oil is a brand from a New York restaurant called Frankie's 457, which Nick and I have dined at together. Yeah, we have. And it turns out they use that olive oil on the show. People saw it, and it sold out nationwide last year. Unclear if that was a paid marketing promotion on purpose, but Frankie's olive oil is hoping they're in season three.

Frankie's olive oil apparently was the star of season two, and it could be the star of season three. Yes, chef. Heard chef. Yeties, you look fantastic today. And remember, the best way that you can help grow the pod is to tell a buddy, H-Y-H-T-B-O-I. Have you had the best one yet? And then check us out on YouTube.

We have a link in the episode of description. You can see how uncomfortable Nick got when I insinuated that he did not play college lacrosse. Our whole YouTube page is free. Because it's hot deal summer. With big deal energy. Don't drop the nugs. And hot nugs summer.

Jack and I, we'll see you tomorrow. And before we go, a happy birthday to our buddy, Nick Marino, from the Upper West Side, but now in the outer sunset by way of Nashville and also London. He is the chillest Nick M. That I know. Nick M-A-R. And second, a happy birthday to Yeti, Jennifer Wang in the Pearl River of New York. Happy 30th birthday to Claire Swindles, who's having a barbecue in Wolverhampton, the United Kingdom.

Because those Brits, they know how to cue. And just a huge shout-out to the dad, Julian Verdiar, who's a dad, a second-time dad with his daughter, Ava, in Lisbon, Portugal. Congratulations in Tudabon. World's greatest dad. To anyone else who's celebrating something today, make it a T-boy. Happy Hot Nug Summer. This is Jack.

Nick and I both own stock of Apple and Nick own stock of Delta. Before the show, I was like, Jack is not going to like hot Nug energy. You kind of squirmed. Your eye, like, kind of shook a little bit. I don't know I like this hot Nug energy. I knew you would like it.

It's like a robot who's like circuits got ripped out. What is Hot Nug Summer?