🚙 Lyft vs. Uber

…and ad-supported streaming surges [Disclosures](   Ride giants take diverging routes (Smith Collection/Gado/Getty Images)   Yesterday’s Market Moves   Dow Jones 33,129 (+0.20%) S&P 500 4,175 (+0.48%) Nasdaq 12,564 (+0.22%) Bitcoin $37,783 (-1.89%) Dow Jones 33,129 (+0.20%) S&P 500 4,175 (+0.48%) Nasdaq 12,564 (+0.22%) Bitcoin $37,783 (-1.89%) Hey Snackers, May the 4th be with you: A Vegas chapel is [celebrating]( Star Wars Day with themed-wedding packages (dubbed “Yoda One For Me” and “I Chewse You”). The intergalactic nuptials feature a Princess Leia officiant and space-inspired bouquets. Stocks rose for the second day in a row on the back of positive earnings results from names like [Airbnb]( and [Exxon](. Putting a damper on the markets: the Fed's next rate hike is happening today. Taco While Lyft stays focused on rides for growth, food and freight could shine in Uber’s earnings 15-inch AUX cord... 17-min ETA. America's #2 ride-hailer just rolled up with earnings. [Lyft]( is known for its transportation focus (think: no food delivery) and cars with fuzzy pink mustaches (see: [this Prius](. We're checking in on its #s from a quarter of pricey gas, supercharged fares, and disappearing mask mandates: - Ride volumes reached a pandemic high as the rebound continued, helping revenue jump 44% from the year-ago quarter. Buuut… - Lyft stock plunged 27% in extended trading on word that active riders dropped by nearly 1M from the previous quarter, to 17.8M. Guidance was also uninspiring. Uber Black, Lyft Pink… not a K-pop girl band. Lyft's bigger rival reports today. Lyft says it’s "singularly driven" by its mission to improve lives with transportation (cars, bikes, etc.). Meanwhile, [Uber’s]( driving into everything, from food to [ecomm deliveries](. It’s no longer a ride-hail company. - Delivery (aka: Eats) made up about [half]( of Uber's gross bookings last quarter, as taco-delivery habits stuck despite restaurant reopenings. - Ride bookings surged 67%, including niche-er offerings like Uber for Business (employee rides) and [Uber Health]( (clinic rides). - Uber Freight, which connects semitruck drivers with high-volume loads (think: [Heineken]( kegs), more than tripled revenue, to over $1B. - Cabs?... In March, NYC [agreed]( to list all its yellow cabs on the Uber app, which gives the company a massive new fleet. THE TAKEAWAY The OG isn't always the growth key… Uber's core biz was ride hail. Now delivery is bringing in nearly half of sales, and freight is its fastest-growing biz. While Lyft is also enjoying the ride rebound, it doesn't have those diversified growth avenues. That could be why Uber's annual revenue is 5X as big as Lyft's. But they have this in common: Uber and Lyft lost hundreds of millions of dollars last year, and both stocks are down ~30% this year. Couch Ad-supported streaming services like Tubi are booming as Netflix struggles with subscripturation Two-minute bathroom break… TV commercials are back in style. This week, ad-supported streaming platform Tubi [said]( it had doubled its active viewers since 2020, and planned to launch 100 original shows and movies this year. Meanwhile, [Netflix]( the world’s most popular subscription streamer, is [struggling]( with its slowest growth in years. - The price is right: Unlike Netflix, which starts at $10/month, [Fox]( Tubi is free with ads. It’s available on smart TVs and devices like [Roku](. - Quantity over quality: Tubi has the [largest]( catalog of on-demand streaming content: 20K old movies and shows. Think: no Marvel flicks (those are on [Disney+]( but both the 1943 and the 1966 versions of “Batman.” Streaming is changing FAST… Blame #subscripturation. As viewers get sick of paying $38/month to watch “Euphoria,” “Bridgerton,” “Severance,” and “Loki” on four different platforms, some cord-cutters are now becoming subscription-slashers: last quarter, Netflix [reported]( its first loss of subs since 2011. Meanwhile, free ad-supported streaming TV (FAST) options are growing: - Not just Tubi: Ad-powered streamers Freevee (owned by [Amazon]( Pluto (owned by [Paramount]( and the Roku Channel have 50M+ active viewers apiece. - Ads = not just a fad: By the end of the year, ad-supported streaming is expected to have more viewers than subscription-based streaming. THE TAKEAWAY Ad streaming has something for everyone… Consumers love the price, advertisers love the targetability, and OG media companies like Fox love the back door into the streaming race. Subscripturation could drive viewers from pricey subscriptions to ad-filled alternatives. That may mean more competition for the Tubis of the world: Disney+ plans to launch an ad-supported tier this year and Netflix is considering doing the same. What else we're Snackin' - [Strife]( The Supreme Court confirmed a leaked draft opinion overturning Roe v. Wade was authentic, but said it hadn’t reached a final ruling. [Apple]( [Amazon]( and others are offering financial support to employees seeking reproductive healthcare. - [Notice]( US job openings hit a record 11.5M in March, showing continued tightness in the labor market. At the same time, another 4.5M Americans quit their jobs, seeking more flexibility and higher pay. - [Mute]( [Meta]( is pulling the plug on its podcast biz less than a year after its splashy debut. The Facebook parent says it plans to focus on bigger initiatives like its metaverse and TikTok clone, Reels. - [Dose]( [Pfizer]( had a strong quarter, fueled by $15B in sales from its Covid vax and antiviral pill, Paxlovid. But the pharma giant cut its profit outlook for the rest of the year as R&D costs picked up. - [Brew]( [Starbucks]( posted steamy earnings on a 12% increase in same-store sales at its US coffeeshops. But in China sales dropped 20%+ as the country’s zero-Covid policy keeps coffee-craving residents on lockdown. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day Over the past decade, electricity generated from coal in the US has fallen by ~60% [Read more]( Wednesday - Fed interest-rate decision - Earnings expected from Match Group, CVS, Regeneron, Uber, Marriott, Moderna, eBay, Fox Corp., Etsy, GoDaddy, and The New York Times Co. Authors of this Snacks own shares of Uber, Moderna, NYT, Apple, Amazon, Netflix, Starbucks, Match, Pfizer, and Disney ID: 2184575 Robinhood Snacks newsletters 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. 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