WeWorks IPO is really MeWork, JPM shuts down its cash app, and Waymo opens up its self-driving brain
Snake jack. This is snacks daily thursday august twenty seconds knackers almost friday and this is the best one yeah. This is a t abi l. y. What have we got going on by. Markets job markets trickled out. They spin up a little bit. We have three great story. It's a wonderful mix. We work. It released its i._p._o. Paperwork last week we finally were able to digest all two hundred pages of that strangeness we cut through the weirdness and it's a great example of key term unit economics. We work let it sink in second-story can story j. P. morgan chase just shut down its payment app and it's a great lesson from the tech industry to life. This is like you can make this tattoo here. It is fail fast fail. L. fast stick on buys erdem. Final story is way moat. This alphabet self driving car company very it's opened up its brain for all to see it's like extended office this hour anytime for the whole self driving car industry when you can't beat them kind of join them open up your brain now before we jump into that we found something fascinating and we felt that we had to share this with interview. Pratt is big and it's the worst you can do it yourself by sending a resume friends and ask them to market up relentlessly google online everything about the company don't take your friends is feedback personally about your resume. Lincoln stock like twelve people. It's a little creepy but it's the right thing to do but we can't make this last one up. There is a service out there from some guy who used to work at lamazon former executive. He's inviting you over to give a mock interview for amazon. Get this. It is available on airbnb so you can search for this on airbnb and find smock amazon interview at this guy's house for a cool forty six hundred dollars. This is one of those experiences right listed on airbnb unforgettable anxiety packed. It's five five hours long food and drink included but since it's amazon that food and drink is going to be like water and carrots because amazon is the most frugal company out there i get us out of cardboard with at that point and so you'll get to experience the real life questions. The amazon asks can great second date idea. Now you wanna kind of questions they are. We got some wonderful roundups rate. The first kind of common amazon question design a payment system. I'd say thank you for the interview. I'm going to leave doing their job for the second. How would you solve problems if you were from. Are you gotta get answer this one yeah with with an oxygen tank and then third and final one without this was the amazon interview question. Tell the story of the last time you had to apologize to someone empathy that is deep emma so let's hit our three stores daily. We gotta get some snack foods candy they. They don't reflect the views of her family still live just recommending any security. It's not a research report or investment advice not matt sale of what security nexus digestive business reduce financial l._l._c. member bemba's last. I reject. Let's get the standing desk. We work prepared its i._p._o. Paperwork it wants to i._p._o. Next month and we have spent the last few days poring over this think think we figure out the ticker symbol is going to be slack s._l._a. Work work slack people we needed. We've been reading this s. One which is the tell all document commit that tells investors everything they need to know before deciding whether or not to invest like what are you doing today jack. I'm reading the s. one jack. It's wednesday. What are you reading the a long long doc. It's pretty thorough. We read it for you now. This company is nine years old. They've got forty seven billion dollar valuation and they're the pioneer co working. Yes they're also based in new york teddy one of the few i._p._o.'s this year not based in the bay area of california. Now you may have heard about this but we want to go deep on it. The one that we jumped into snacks out the critical filing document it is is highly strange for we will flip open to page. Three auto sees something like a mission statement. We dedicate this to the energy of we greater than any of us but inside each of us highly yoda esque yoder. You sound like a couple of pages later <unk>. Our mission is to elevate the world conscious. That's what they actually have. Some lawyers actually said that was okay to put it in. Your mission is to make money off startup workers who need space. What's what's legal. Team signed off in this. We have no idea then the word community appears one hundred fifty times in the s. one again very curious about the lawyers on this so this isn't really the we- company outing which is the official name is called the week company rework is just one division of we come airy. It's really the me company truth. A me in this case is adam newman the the co founder and c._e._o. Adam newman was mentioned one hundred sixty nine times in the swamp. The average c._e._o. Is mentioned only twenty five times in those docs. I need to correct what i just. Please do you the name adam. Adam is mentioned. One hundred sixty nine task sounds like a flat seldom. Call him adam newman. They refer to him by the first name. He's so tack. He's not share the air but he's almost there fifty percent of the voting power of all the shares after this i._p._o. Will be adam newman so if he wants to do something he just has to convince one person on the other side and then he can do and here's how else it's me work. He received the loans from we work. Adam did to buy properties that we work then rented. Wow you want another either. One please. Wife is co founder of the company. She is one of the three people on the committee that will replace adam newman s._e._o. If he died and the most clear lear way that this is really a me work not we work. We learn this yesterday. We work paid adam newman five point nine million dollars for the trademark we which they just named the company to last year actually paid him for that yeah. He apparently came up with that name off company time. They basically got three things on tap over. We work beer kombucha and conflicts of interest. What is the takeaway for our buddies over now. All that shenanigans that was a bunch of noise with nick and i just did the most important part of the business is we work unit economic unit economics or key venture capitalist love this that's the revenue and the cost of the most basic element of business so the we company lost a a billion dollars last year but we're interested in how much it makes on each seat or each floor or each. We work building. That's the unit in the unit economics. You've probably heard that one billion dollars ars in losses that we've had so far just this year the unit economics gives us some better context two years. That is a key number. That is how long it takes each. We work property eh to become profitable right. That's because they're renting renovating. They're filling up the space. They're marketing it. Those are all costs and then only after two years of collecting rent do they finally break break even and then it's all gravy slash butter slash frosting after that so investors love learning about these union economics but we didn't provide that much info in them in that s what they were too busy referencing housing atom the whole time. There's a lot of faith and cult of personality in this i._p._o. For our second story the biggest bank in the country by market capitalization value j. p. morgan chase chase. It just failed again at something and that's actually a good thing yeah. It's actually a good thing. We're not just putting a spin on it. Are you surprised you put this backup on the fridge. We're talking about chase pay that is chasing his own version of apple. Pay you download the chase. App can pay by tapping your phone or flashing q._r. codes so here's the actual news j. p. morgan has has this fancy app. It's shutting it down next year. There was a very simple problem not enough people were using chase. Pay shades pay never just never became a verb. It was never like hey julie chase as pay me for the dockery's. No really wasn't now a caveat to our announcement. We just made sure chase. Pay will continue to exist but only online as like a quick pay checkout. I've got option like pay pal now. Jack and i were diving into this one and we found a stat that really sums up the situation perfectly seventy percent of online merchants except pay pal for your payments. Now that's good. That's great. That's really strong but less than one percent. Were accepting chase pay. It really just never caught on like the word fetch again the verb thing so big big banks like to call themselves tech companies just yesterday yet we talked about goldman sachs earn up with apple here pretty impressive but these these big banks. They're not tech companies. No they're not tech companies and the top engineering town tends to be going to tech companies so chase pay lost because pay pal apple pay google pay okay and then mo are all better and those are all real high tech companies so jack. What's the takeaway for our buddies over j. P. morgan chase failing fast is a muscle. You wanna wanna be strong. Chases failing fast muscle is draw. We may want to cut those sounds now. If you're going to succeed you need to kill projects. That aren't working after you've put a a lot of resources into the because each extra day of somebody working on a failing project is a waste. It's like angels lose their wings each extra day jack. You are a poet it now. If you're wondering what j. p. morgan chase they've actually been doing this a lot when they flex his muscle fin fin is a mobile banking app packed full of emojis that millennials. They killed killed that project in june. What about canadian credit cards. J. p. morgan had them. They weren't making money on them and they decided this month to kill off the credit card and j. P. morgan was so committed to failing fast fast. It forgave all those canadians of their credit card debt outstanding. They're just like we're done. I don't wanna be here anymore. And when it comes to loser projects killed losing one's you can focus on the winners winners for our third and final story self driving car companies are starting to team up to fight the good fight by teaming up we mean sharing data with each and by fighting fighting the good fight we mean making steering wheels optional and all cars yes now. This story is about waymo. Which is the top dog in the self driving car race. It's owned by google google which is owned by alphabet and from the fact. It just started testing. It's vehicles in florida yeah because that's where there's a lot of rain and they wanna get these things in some real life. Condition california weather is is not the same as other drop rain in like six months. I'm actually parched. Let's get to the actual news here. Waymo is sharing its giant data set from itself driving testing with everyone. We're talking rich juicy terabytes of data on really well labeled good data that can be used now. This is a big deal because it means the competition. Competition can now see everything that google has been researching on with us. We're talking general motors toyota honda the even uber its arch-rival in the bear and a bunch of professors and p._h._d. Students in policy school they are all classes canceled tomorrow on the school yards. We can talk a i get ready for some regression russian analysis neck now. This is actually like a very serious dilemma in the business world and we thought it was fascinating to share or not to share imagine. You have have a killer craft i._p. Recipe picturing the great label on this. You are going to protect that beautiful recipe because that's your advantage in the industry. If you're a self driving in car company you're going to protect that tack for the exact same reason. Here's the thing the self driving car industry self. Driving cars aren't even happened. It's like nobody's drinking the i._p. Ed yeah if no one's drinking the i._p. As your recipe is worthless so car companies they wanna protect their technology because they worked hard for competitive advantage over everyone else but it's not happening happening and waymo just gave away its recipe for free. That is a big deal sewage actually a big leadership move by way we'll tell you why so jack what is the takeaway for our are buddies over waymo doing their thing. Nobody will win the self-driving tech race. If self-driving tack never actually happened. It's kind of like a situation like that. General motors just postponed. It's a launch of robo tax and it didn't even name a new date for when they're gonna come out and then uber stopped actually testing its self driving cars last year because one accidentally killed someone enforced news alert self-driving tech is not developing nearly as fast as everyone expected so waymo is taking a leadership role here trying to do something that hopes other companies will be inspired to do to open. It's brain. Maybe will open its brain ripe at you. Gotta lotta brain fast and together. If everyone's collaborating instead of competing maybe they can make money faster by actually figuring this <music> out of brain and then we can finally netflix and dr open brains a jack up the takeaways for you. Okay wasn't expecting that we you work is strong with the force and it takes two years of losing money before each property start making money. It's not really we work. It's really more of a me work. Adam second-story j. j. p. morgan chase just killed. It's chase pay app. Remember don't fail slow fail faster and final story waymo just opened up its data sets of robo driving for all all the competition to see fun little factor. That could have been a snack fact. Some say that waymo google self driving car tech is worth one hundred billion dollars. That's a huge company all by itself but it just sits underneath alphabet to thursday situation because we've got a real big snack factory right now number twenty. Five is the twenty-fifth version of james bond. That's coming out reassume with daniel craig. We just learned the title. It's called no time to die. I am too busy to die too busy to see his no time but seriously though actually dino craig was too busy he actually got injured during this ankle injury while he was filming in jamaica but interestingly james bond is the longest continually running film series of all time the first one one was way back in nineteen fifty four the actual series was created in nineteen fifty two with ian fleming ian fleming great book my good buddy dave fleming no relation not not at all so smackers loved having with the state remember you can also catch us on spotify great place to get your snacks. Yes snacks is available on spotify for sale. I now in the meantime time. We'll catch guess tomorrow this jack we mentioned amazon in the intro. I own shares of amazon. The robinhood snacks podcast. You just heard reflects the opinions opinions of the host who are associated persons of robinhood financial l._l._c. and does not reflect the views of robinhood markets inc her any of its subsidiaries or affiliates. The podcast is this 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 security. The podcast is also not a research report and not intended to serve as the basis of any investment decision robinhood financial l._l._c. member finra s._i._p._c.