The Best One Yet - 💋 “Rihanna Rich” — Fenty’s celebrepreneur. Clear’s ID-killer. LUber’s opposites.

Episode Date: August 6, 2021

The newest billionaire is Rihanna, but the real story is the new business model of “Beauty Celebrepreneurs”. Clear Secure’s stock is up 75% since their IPO because they want to kill off wallets forever. And Lyft and Uber (“LUber”) both reported earnings this week… but they’re no longer the same company.$YOU $LYFT $UBER $LVMUYGot a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @NickOfNewYorkWant a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9Got a SnackFact for the pod? We got a form for that too:https://docs.google.com/forms/d/e/1FAIpQLSe64VKtvMNDPGSncHDRF07W34cPMDO3N8Y4DpmNP_kweC58tw/viewformLearn more about your ad choices. Visit podcastchoices.com/adchoices Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. And this is Snacks Daily. It is Friday, the real Friday, August 6th. All right. What happened to the Dow, Nick? The Dow up 185 points for check. I know what's on your mind.

I can read your face right now. Team USA? No, stand up paddle board. You are very eager to stand up paddle board. Snackers, Nick is visiting this weekend. It's going to be iconic. Did you sharpen the boards? Do you wax them?

You don't have to do any of those things. It's pretty low intensity sport. Maybe a little Puell, a little bit of Windex. Snackers, this is the best one yet for Story Jack? Clear, Secure. is the only stock dedicated to beating TSA pre-check. But it's got a whole bunch more plans for your retina scans. For our second story, if Forbes says your ability, yeah, good thing.

I guess that means it's official. Yeah, it's a real deal. Rihanna, by the way, latest member of the three comic club. Congratulations, Ella. Welcome to the era of the beauty, celebrity celebrpreneur. Perfect pronunciation there. Third and final story, Uber and Lyft both announced earnings this week. Can you say celebrinor three more times?

I just messed it up. I think I'm going to have to. Big change for Uber and Lyft Snackers. They're not the same anymore. Wow. That sounds like a great lineup. Someone works at Uber right now and is listening and is very confused. But before we hit those stories,

Olympics are coming to a close this weekend. Synchronized speedwalking. We'll see you in 2024. We'll miss you. Shocker in these games, Japan has a huge number of medals they've won. Gold in particular. Three days left in the games, Japan has 22 golds already compared to just 12 in the 26. But it's not just Japan's athletes enjoying this home field advantage.

Uh-uh-uh. Get this, Snackers. Japan's stocks? They're winning too. Specifically, Japanese stocks that are connected in some way to Japanese athletes playing in these games. Okay, Snackers, we heard this. This is wild.

Jack and I jumped in Snacks style. Car-sharing company, Park 24, over in Japan, it rose after Japan's judo team won a competition. Because a bunch of the judo teammates and Team Japan. True story. Work at Park 24. In between the Olympics. And then, Jack, how about Colin Tote, recently IPOed? It's a health food stock.

It surged last week. Why did it surge? Because they sponsored the legendary Japanese ping pong duo. Great duo. That iconically upset Team China. Then a skateboard designer, Morito, company, saw its shares pop 12% last week. Why did it happen? Well, it happened on the very same day that Japan took the gold in skateboarding.

Now, Snackers, we should clarify, this is definitely not investing advice. And it's not a scouting. report. Past athletic performance is no guarantee of future financial gains. If you could bust your ankle, you can bust your portfolio. Yeah, but so far, the greatest venue of the Tokyo Olympics jack, the Tokyo Stock Exchange. Let's hear our three stories. You're tuned in the snacks daily. We spoke to the lawyers and we got to get something legal out the way. It's snacks about to hear rain food. It's air candy. They don't reflect the views of the robberhood family. It's all informational just so. You know, we're not recommending any securities. Nope. It's not a research.

report or investment advice. Not an offer or sale about security. Right. Snacks is digestible. Business news for you. Robberhood Financial, LLC, member Fenra slash SIPC. For our first story, Clear Secure thinks it's dumb. Now we're carrying around IDs, Jack.

Yeah, Clear Secure's whole business is eliminating ID cards. That's it. By the way, this quote from their CEO, this should be inscribed and, I don't know, Jack, like some kind of marble somewhere on a plaque. It's a rhetorical question. Why do you wait in lines to take out cards to prove that you are you? Emilio. That's what we do at the airport.

It's what you do. At the bouncer. At the other example that we can't think of off the top of our heads. Clear's mission snackers is to enable frictionless and safe journeys using your identity. You've probably seen this at the airport. You're going to walk in, terminal C, and they're going to scan your retina into the Clear machine. And they know you are you because they're a biometrics company.

They examine your eyes, your face, or your fingerprints. So boom, you get to move faster through the fast lane. Your buddies are like stuck in a TSA situation. By the time they get to the gate jack, you're like three waters deep and like $50 at Hudson bookstores. Rule number one of clear, brag to your buddies that you have clear and they don't. Rule number two, if you don't have clear, if you beat someone who has clear, brag back at them. I got to the gate before the plane arrived. Clear has 106 checkpoints that scan retinas right now across 38 airports and 26 sports and live

entertainment venues. But Snackers, here's what Jack and I find fascinating about Clear. They had a shocker of a last year when they probably shouldn't have. Clearly, Clear is dependent on travel. And yet, they became profitable in the worst year for travel in recent history. Okay, so we jumped into Clear's IPO paperwork. Airport revenues fell for them. And yet for three straight quarters of 2020, they achieved their first ever profits. That's because they're not dependent on volume of travelers, because they charge an annual subscription of $179 a year. Full disclosure, Jack and I both use I used it last night, actually, on the flight to get over East Jack, the JFK. Full disclosure, Nick doesn't know it until now, but I don't use clear. Oh, this has been really awkward. It is an awkward

thing, though, because you're like, when you go up and they scan your retinas, it's like I'm in a staring contest with a transformer. Full, full disclosure, I remember when I beat you. through TSA, even though I was non-clear. The only reason you get clear is they can get the first overhead bin. That's the goal. Turns out the pandemic was an opportunity for Clear. They launched their second product called Health Pass, which you can use to prove that you're healthy or vaccinated.

And they just IPOed in June. Stocks up 75% since then, not too shabby. The pandemic was the worst thing and the best thing for Clear. So, Jack, what's the takeaway for our buddies over at Clear? If Clear succeeds, it could truly kill the wallet. Snackers, contactless. Payments have killed cash and they're crushing credit cards right now. Clear could be the thing that kills the last remaining survivor in your wallet,

your identification cards. What's it doing there? That's why Clear has ambitions way beyond airports and stadiums. Anywhere you have to show your ID, Clear thinks they should be there. Jack, take office buildings, for example. They could make sure that only the workers who get in are the ones who actually should get in, no passing around some kind of like access card. Right.

Clear can sell your boss, a big biomegranate. Tracker, stick it in the lobby, it's like the bouncer. Or take ticketing for instance. Olivia Rodriguez could stop letting ticket resellers snap up all the tickets to her concerts. Right, because Clear can verify that only the buyer of the ticket gets to come to the concert because they know your eyeballs. Remember, they got the biometric data. They got your fingerprints, your eyeballs, and probably something else.

Restaurants, basketball games, Olivia Rodriguez concerts. Lots of opportunities if you can kill the ID. For our second story, reread. Just became a billionaire. There you go. Music made Rihanna famous. Entrepreneurship, though, made her silly rich. That's a real thing and that's perfectly put, Jack.

But I guess to, like, sprinkle some context on here, can I read you a few lyrics from the 2008 hit umbrella from our sophomore year? I was a sophomore in Milliken, living with you, actually. No clouds in my stones. Let it rain. I hydroplane in the bank coming down at the Dow Jones. Sounds like she knew what was coming. She did because Snackers, Rihanna is now the wealthiest female musician on planet Earth with a whopping $1.7 billion.

Shocking, though. 1.4 of those 1.7 had nothing to do with umbrella, nothing to do with diamonds, nothing to do with disturbia. That's right, Snackers. Rihanna hasn't even dropped the music album in five years. 1.4 of her 1.7 billion of wealth comes from Fenty Beauty, a company she owns. 50% of making music. She's been like cranking out pitch decks. Well, Robin Fenty, who we know as Bad Girl Riri or Rihanna is how it's pronounced actually. Technically the new pronunciation, yes. She launched Fenty Beauty in 2017. Inclusive beauty brand with a shades for all. I think they kicked it off like 40 shades of this stuff. Yeah. She launched it with the giant fashion company LVMH in a

50-50 joint venture. Now, that 50-50 is key. Snackers. Four years into this new beauty brand, Fenty is now worth $2.8 billion conservatively. Half of that is Rihanna's. Yes, it is. The other half is LVMH, but they're both, they're having a blast, Jack. Well, LVMH is doing a lot of the work here. They do the manufacturing from the mascara to the blush brushes. Plus, LVMH does the retail because they own Sephora,

and so they can stick Fenty face wash in like aisle 6 whenever they want it. Rianna is the creative genius, but she's also the marketing department with her 100 million followers, she can directly market to. LVMH is sitting back here and they're like, why are we going to take a commercial next to the G-pad? Rihanna, just post away. Oh, no big deal. Rianna also owns Savage by Fenty, her lingerie company, worth another 270 million.

So, Jack, I got the whiteboard out, doing the math on this. Looks like she makes like hardly any money from the music, actually. It got her her start. It did. And it's part of the takeaway. Ella. Ella. So, Jack, what's the takeaway for our buddy, Rianna?

It's a new business model. Beauty Celebropreneur. Snackers, celebs, they've always done product deals before, like from Jalo perfume to the Air Jordans out there. But the structure when Michael Jordan was selling shoes was different. It was a licensing deal. A celebrity gets a fat check in exchange for their celebrity, their likeness, and like a whole bunch of random commercials where they're floating on something. A beauty celebrpreneur, however, isn't just known for the product being sold. She owns the product being sold. That's right. She controls the product from the very start, markets it through their social media channels, and has skin in the game, often like 50% of the company. So instead of a flat payment for commercials like Michael Jordan, not as fun.

Rihanna enjoys upside if her business blows up. Jack, let's go all the way back to Paris Hilton for this, who now owns a get-this, a whopping 19 different business brands. She started beauty celebrpreneurship, but it's been succeeded by Kim Kardashian and Kylie Jenner, who both own beauty lines too, both. worth over a billion dollars. Jack, Jessica Alba, her honest company just IPOed, also worth about a billion dollars. This long line of women entrepreneurs transformed their fortune into even bigger fortunes by celebraneering their fame. For our third and final story, did I just catch you, sharpening the paddleboard over there? Is that what you're doing? Well, you've been really talking up your surf game. For our third story snackers, Uber and Lyft both just announced earnings in the same

week. Awkward. We learned that Uber and Lyft aren't the same anymore, but Wall Street's treating them like they still are. Yeah, pretty funny. By the way, Jack, who is the Uber to your Lyft? That is the existential question. The Larry to your magic. The Christina to your Bretne. Lift and Uber snackers had the same core product for a decade. Their headquarters, same part of the same city. Honestly, probably the same caterers for the same company of cafeterias, Jack. Not anymore. I feel like I've tasted this pad tie before. This week, Uber and Lyft confirmed they are very different companies. Snackers both just announced revenues in the second quarter more than doubled from last year. That's impressive. Sounds exciting. We got thrilled. It also sounds like

they're the same. Yeah. But if you jump in snack style, you actually learn that Uber is the only one truly growing. Uber's $3.9 billion in quarterly revenues. That's up a healthy 24% from 2019 key year because that's before the pandemic. Lyft, on the other hand, their doubling of revenues is misleading because it's comparing to 2020. So Lyft's revenues in 2021 are better than 2020, but if you compare to 2019 from before the pandemic, it's not exactly the same thing. Lyft is still 13% smaller sales-wise than before the pandemic. Okay, so Uber, if you compare to before the pandemic, they're growing.

Lift, if you compare to before the pandemic, they're shrinking. With that context, you see that Uber's the only one truly growing. Lift is not. Oh, also Uber's growing because it does food delivery. Lyft doesn't. Lyft does humans, not French fries. Another difference between these two companies, Lyft just announced their first ever adjusted profit.

Adjusted, small asterisk, but you know, it's a small asterisk. Uber, on the other hand, even after adjusting their profits, they still lost another $500 million in just three months. All right. So how to Lyft kind of pull off a semi-profit? Well, they made a bunch of tough decisions last year. They cut a bunch of costs, including laying off workers. Uber, on the other hand, they're still fighting DoorDash and Grubhub in the food delivery war.

So they're still tossing out $5 promo codes for fish tacos. Jack, what do you know? If I were for a friend, I'll get 5% off something eventually. So what's the takeaway for our buddies over at Uber and Lyft? In Wall Street's book, though, these two companies are still the same. Yeah, Snackers, we've been talking about how they're completely different, but there's one thing they still have in common. Both stock prices are still below their IPOs. Uber and Lyft are less valuable today than when they went public all the way back in 2019.

Now that we've stacked them up side by side, it's pretty clear what Wall Street really wants. Yeah, investors want growth and improving profits, not one or the other. Adjusted, adjusted. Jack, can you whip up the takeaways for us before the weekend? Sober at the wins. Clear Secure is pretty much just airports right now. Yeah, they want to be anywhere you're showing an ID to kill your wallet. For our second story, Rihanna is officially a self-made billionaire because she's a beauty

celebrpreneur. Uber and Lyft used to be the same. Yeah. Now they're different. Wall Street, not happy with either right now, unadjusted. Time for our snack fact of the day. This one tweeted in by Tomas Baggio from the lovely North Shore of Oahu in Hawaii. We should have set this up as a trivia question.

Yeah, we should. This was a good trivia question. It's a really good one. What two sports can Olympic athletes share? a gold medal with someone else. Yeah. Turns out the Olympics aren't all like winner takes all zero sum situation. Get this.

Pole vaulting and high jumping can have multiple gold medal winners. There you go, because the athletes are like increasingly trying higher and higher heights together. So they have like only a certain number of attempts. Kind of end up at the same height maybe. At a certain point, let's say two athletes get 16 feet on the high jump and neither of them get 17 feet. Ipsop facto, we got two guys or two girls on the podium. A few days ago. go, this happened in the high jump the first time it's happened since 1912.

Snackers, you'll look fantastic. You're going to have a great weekend. Jack, I can't wait to see tomorrow. Two pods in a row recorded in person in the great state of Vermont. What's the dress coat up there these days, by the way? Is it like carhart casual? Don't wear flannel. It's too hot for that. Lumberjack light, crox or burkenstocks action. If you know, you know Snackers, celebrate the wins. And before we go, shout out to Snacker Laura Zhang, a team you USA gymnast going to Yale after the Olympics. Incredible. And happy birthday to donut lover Tracy Foam in San Francisco.

And Bryce Dabbs and Elsa Gundo. And Harry Scott and his beard. Happy birthday in Pittsburgh, North Carolina. And happy birthday, Ling Jin Jang over in Brooklyn. Asher and Levi Haas have their last day of T-Boy Camp. T-Boy Camp. Don't know what that is, but I want in. We want in.

Say Lee, congrats on the last day of the AWS internship. We're hoping to get the job off. You're going to get the job off. Well, Mariah Pullman got the job offer. Congrats in Manhattan, New York City. And Jim and Jen, happy anniversary down in Austin. Great. Congrats on getting engaged to Andre and Mayorette in Toronto.

And then Carmen and Ivan got engaged on a cruise off of Maui. Not too shy. Speaking of the Big Island, Maribel Pablon and Vance Tommaso, congrats on the new home, hopefully on the Big Island. Definitely in Hawaii. Ashley and Matt Rickleson, they're getting married in Austin with. there, Corgi, this weekend, it's going to be great. And congrats to Shea Hill and Julie Patel, who are getting married, snacking on the day of their wedding. The couples that snack together,

stay together. We're on it. The Robin Hood Snacks podcast you just heard reflects the opinions of only the hosts who are associated persons of Robin Hood Financial LLC and does not reflect the views of Robin Hood Markets, Inc. or any of its subsidiaries or affiliates. The podcast is for informational purposes only and is not intended to serve as a recommendation to buy or sell any security and is not an offer or sale of a security. The podcast is also not a research report and is not intended to serve as the basis of any investment decision. Robin Hood Financial LLC, member FINRA, SIPC.

I also like how we did say Riri, re her real name, Rihanna, Rihanna. We said like 12 different pronunciations there. So like no one can be happy or everyone can be upset. Everyone's going to be happier, everyone's going to be upset. There was a risk. And we dug it.