✈️ Spirit x Frontier

…and Bumble makes its first swipe-quisition [Disclosures](   Bumble goes cherry-picking [Monty Rakusen/Image Source via Getty Images]   Yesterday’s Market Moves   Dow Jones 35,091 (+0.004%) S&P 500 4,484 (-0.37%) Nasdaq 14,016 (-0.58%) Bitcoin $44,163 (+4.12%) Dow Jones 35,091 (+0.004%) S&P 500 4,484 (-0.37%) Nasdaq 14,016 (-0.58%) Bitcoin $44,163 (+4.12%) Hey Snackers, Don’t try rolling down the 405 with this bimmer: at the Winter Olympics, [BMW]( took its lux innovativeness to the slopes with a two-person [BMW bobsled](. Stocks fell to start the week as tech continued slumping. In recovery news, employers added a record 6.6M jobs in President Biden’s first year in office. Meanwhile, Canada’s capital has declared a state of emergency as the country enters its second week of Covid mandate protests. Baggage Frontier and Spirit agree to a $6.6B merger, but regulators and travelers may not be on board Flight costs $80… but the overweight luggage costs $180, and we hope you packed a sandwich. Budget airlines like [Spirit]( and [Frontier]( are (in)famous for low prices, zero frills, and pricey add-ons. They rebounded from the pandemic quicker than legacy airlines because their primary customers — thrifty vacationers — returned to airports before business travelers. Now America’s two budget behemoths are tying the knot: Frontier and Spirit [agreed]( to a $6.6B merger, creating what would be the fifth-largest US airline: #FrontSpirit (real name TBD). Yesterday Frontier’s stock rose 3% and Spirit’s soared 17%. - Big plans: The companies said the merger would result in more cheap flights in underserved areas, 10K new jobs by 2026, and no layoffs. - Bad PR: Yesterday morning Frontier canceled 20% of its flights because of tech issues — not a good look when you’re marketing more flights. Battling the Big Four… by adding one more. The Frontier-Spirit deal is the latest in a long line of airline mergers: [American]( [Delta]( [United]( and [Southwest]( were formed from 10 airlines and make up 80% of US air traffic. #FrontSpirit would command only 10% market share, but it could face a tough path forward: - President Biden wants to boost airline competitions to ensure inexpensive, transparent travel. Although the merged companies would compete with big airlines, analysts say it’ll squeeze out smaller budget airlines like Breeze and Avelo. - Last year the DOJ blocked a partnership between American Airlines and [JetBlue]( even though it wasn’t even a merger. The last US airline merger was [Alaska]( and Virgin’s combination in 2016. THE TAKEAWAY Takeoff can be tricky when regulators want you grounded… Frontier and Spirit insist that their merger will benefit customers by providing low-cost flights in more cities. But while the deal may have taken off without trouble during past presidencies, analysts [say]( Biden’s “big is bad” approach could complicate the deal. Plus, Frontier and Spirit have the industry's worst customer-satisfaction ratings, and the new airline could face competition for cost-conscious flyers from the likes of American, which is expanding its budget flights. Cherry Bumble makes its first purchase — French dating app Fruitz — to win over Gen Z’ers in Europe Honey & Berries… a match made in swipe heaven. Yesterday, [Bumble]( made its first-ever acquisition with quirky five-year-old French dating app Fruitz. ICYMI, Bumble is the popular dating app where women make the first move. Bumble’s already in some European countries, but the US and Latin America still make up more than half its users. Meanwhile, Bumble’s other dating app, Badoo, has [more]( than 300M users worldwide. With Fruitz, Bumble is doubling down on its Euro reach. - Cherry-picking: Users are shown profiles based on which fruit icon they pick. Each fruit = a relationship type ([think]( watermelon for friends with benefits, cherry for long-term commitment). - Choose your perks: Like most dating apps, Fruitz is free but offers premium paid features. For example: The “pollen” add-on shows profiles closest to you. - Bumble’s sales jumped 24% last quarter to 200M thanks to extra paid users. Financial stability > ship stability… The pandemic has influenced younger generations to value financial stability over serious relationships. Only 1 in 10 Gen Zers says they’re “committed to being committed.” Millennials still make up the majority of app users, but in saturated markets like the US, new growth has been hard to come by. Now: - Last quarter Bumble saw its first user-growth decline since going public, as swipe madness cooled in the US. - Bumble can leverage Fruitz’s ability to reach Gen Z where it’s seeing “rapid growth” in less saturated countries like in Belgium, France, Spain, Switzerland, and the Netherlands. THE TAKEAWAY It’s not one size fits all... when it comes to dating. Because in order to reach your customers, you have to know your customer. That’s why rival [Match]( has scooped up dating sites like Harmonica, which caters to Middle Eastern users, and OurTime, which is designed for singles age 50 and older. As millennials start to age out of dating apps, Gen Z represents the next big market for paying customers. That means offering more friend-zone-friendly features (like: Bumble BFF) and incorporating interests — or funny fruit icons — over swipeable pics. What else we're Snackin' - [Saga]( [Spotify's]( CEO apologized to employees for Joe Rogan's use of racial slurs in previous podcast episodes, but said he wouldn’t pull him from the platform. Rogan was already under fire for Covid misinfo. - [Peddle]( [Peloton]( shares soared on rumors that [Amazon]( and [Nike]( might consider buying the struggling fit-tech company. Peloton’s value has plunged on PR nightmares and falling demand for its spin bikes. - [Payback]( Swedish price-comparison site PriceRunner said it’s suing [Google]( for $2.4B, alleging that the US search giant prioritized its Google Shopping product over competitors’. The EU had already fined Google $2.7B over the same issue in 2017. - [Spidey]( Toy maker [Hasbro’s]( sales last quarter crushed expectations, jumping 17% on demand for “Spider-Man” and other movie toys. But shares fell after the company said rising transportation costs could hurt profits. - [Meaty]( [Tyson]( doubled its profit last quarter as meat demand held up despite rising prices. This year the chicken-nugget icon said it plans to invest $2B to boost production and automation. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. The Snacks Daily Podcast Chanel jacked up the price of its iconic bag by $3K. But don’t blame inflation — blame “brand-flation.” [Tune in]( to hear why luxury retailers are hiking their already premium prices with zero customer pushback. Snack Fact Of the Day [Facebook lost users for the first time *ever* last quarter: daily active users dropped from 1.930B to 1.929B]( Tuesday - Earnings expected from: Pfizer, BP, Coinbase, Chipotle, Lyft, Peloton, Warner Music Group, Sysco, Thomson Reuters, and S&P Global Authors of this Snacks own shares of: Alphabet, Spotify, Amazon, Match, and Delta ID: 2028407 Robinhood Snacks newsletters and podcasts reflect the opinions of only the authors who are associated persons of Robinhood Financial LLC (Member [SIPC]( and do not reflect the views of Robinhood Markets, Inc. or any of its subsidiaries or affiliates. They are for informational purposes only, and are not a recommendation of an investment strategy or to buy or sell any security, digital asset (cryptocurrency, etc) in any account. They are also not research reports and are not intended to serve as the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robinhood Markets, Inc., Robinhood Financial LLC, or any of their subsidiaries or affiliates. All investments involve risk including the loss of principal and past performance does not guarantee future results. [Robinhood Terms and Conditions]( • [Disclosure Library]( • [Our Editorial Principles]( • [Contact Us]( • [FAQ]( [Manage Your Subscription Preferences](