Sanmeet Deo, an expert in Adobe's business, discusses the potential growth area of AI. DoorDash introduces hourly wages for couriers. Challenges faced by sharing economy companies, regulatory issues, fair pay, tipping policies, and decline in Airbnb revenues. McCormick's strong quarter and growth in flavor solutions. CEO transition and growth in hot foods at McCormick. Overview of Adobe's revenue sources, CEO impact, and AI initiatives.
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Quick takeaways
DoorDash's introduction of hourly wages for couriers signifies a recalibration of its business model to address profitability and government pressure on gig economy workers.
Airbnb is experiencing a decline in revenue due to increasing prices, additional fees, and competition from traditional hotels, emphasizing the need to address customer experiences and create consistent experiences amidst reliance on independent hosts.
Deep dives
DoorDash introduces hourly wage option for Dashers
DoorDash, the leader in the restaurant delivery wars, has introduced an hourly wage option for its couriers, known as Dashers. Previously, Dashers were paid on a per-job basis. This change in payment structure is seen as a response to pressure from local governments on gig economy workers. While the company initially focused on maximizing customer satisfaction and acquiring a large customer base, this shift to hourly wages is a recalibration of DoorDash's business model, addressing the profitability of smaller orders and longer travel distances.
Backlash against tipping prompts change in DoorDash app
DoorDash has made an update to its app, allowing for post-checkout tipping for up to 30 days. This change comes in response to a backlash against the constant requests for tips during transactions. DoorDash, along with other gig economy companies like Uber, relies heavily on tips to keep workers satisfied. However, this move towards extended tipping periods raises concerns that the costs of doing business are being passed on to customers. While DoorDash aims to encourage tipping, it remains to be seen how this change will impact both workers and customers.
Airbnb faces challenges as demand drops and prices rise
Recent data suggests that Airbnb revenues in markets like Austin and Phoenix have declined significantly, with differing estimates ranging from 3% to 50%. This decline in revenue could be attributed to prices reaching a point where they are no longer competitive with traditional hotels. Short-term rentals might no longer offer the same value proposition they once did, especially considering the additional cleaning fees associated with Airbnb stays. Furthermore, the availability of more hotel rooms and seasonal workers in the hospitality industry contributes to a changing landscape for Airbnb. While this decline does not spell a collapse for Airbnb, it highlights the need for the company to address customer experiences and create consistent experiences amidst the challenges of relying on independent hosts.
DoorDash has started offering hourly wages for its couriers.
(00:21) Bill Barker and Deidre Woollard discuss: - What prompted DoorDash’s recent updates. - Fees, tips, and other ways Airbnb and DoorDash pass on costs to consumers. - How demand for spicy food is just one positive sign for McCormick.
(16:15) Sanmeet Deo and Mary Long break down the main components of Adobe’s business and how AI could prove to be a major growth area.
Companies discussed: ADBE, MKC, DASH, ABNB, UBER
Host: Deidre Woollard Guests: Bill Barker, Sanmeet Deo, Mary Long Producer: Ricky Mulvey Engineers: Dan Boyd