Podcast Summary: Brew Markets

Episode: Starbucks CEO’s First Year & Who Wins As Uber Links Up With Blade?
Date: September 10, 2025
Host: Ann Berry
Co-Host/Producer: John
Podcast: Brew Markets by Morning Brew

Overview:

This episode focuses on two major market stories of the day:

1. Uber’s partnership with Blade and Joby Aviation—expanding ride-sharing into helicopter and air taxi services and analyzing the less-discussed winners of the deal.
2. Starbucks CEO Brian Nicholl’s first year—evaluating his turnaround efforts after a $100 million pay package and his impact on Starbucks’ trajectory.
   The show also explains the VIX (fear index), and recaps closing market news, including major moves by Oracle, Klarna, and Apple.

Key Discussion Points & Insights

1. Uber, Blade, and Joby Aviation: Air Mobility’s New Frontier

[00:01 - 05:02]

• Uber’s New High-Flying Partnership:

  • Uber announced a partnership with Joby Aviation (electric vertical takeoff/landing air taxis) to integrate Blade’s helicopter and seaplane services into its app from next year.
  • Joby acquired Blade’s passenger service for $125M last month—Joby’s stock jumped 4% on the partnership announcement.
  • Although Joby boasts a ~$12B market cap and prototype aircraft flying 30,000 miles, it hasn’t launched commercial service yet (first coming to Dubai in 2026).

• Inside the Deal:

  • Blade flew 50,000+ passengers in 2024 from 12 terminals in top urban air mobility markets (e.g., JFK and Newark airports, NYC)—significant infrastructure for Joby.
  • Electric, zero-emission, and quieter aircraft address noise complaints from current helicopter services.

• Who are the Hidden Winners?

  • Toyota: Invested $500M in Joby when shares were under $10.
  • Delta: Invested $60M at under $5/share in 2022—shows airlines are betting big on next-gen transit.
  • Quote (Ann Berry, 03:31):

    "Next gen transportation. Lots of players, sometimes hiding in plain sight. We're going to keep watching."

  • Uber’s stock dipped, possibly due to emerging robo-taxi competition (Zoox, Amazon’s unit, is piloting free rides in Las Vegas).

2. Starbucks CEO Brian Nicholl: Grading Year One

[05:02 - 14:17]

• Background & Leader Profile:

  • Brian Nicholl brought in for a $100M+ compensation package to lead Starbucks after prior wins at Taco Bell (Chief Marketing Officer, President, CEO) and Chipotle (fortified digital, launched rewards, handled food crises).
  • At Chipotle, Nicholl’s hands-on, “on-the-ground” style yielded a rapid digital transformation and culture change.
    • Quote (Nicholl in Harvard Business Review, cited by Ann Berry, 06:51):

      "[At Chipotle] customers were lined up, however, the lines weren't moving very quickly...they could benefit from additional training and guidance. The restaurant managers seemed a little overwhelmed."

• Starbucks Changes Under Nicholl:

  • Reinstated elements of the classic Starbucks experience (baristas writing names, reintroducing condiment bar, ending charges for non-dairy creamers, aiming for <4 minute wait times).
  • Strategy: focus on North American market; Starbucks seeking a China partner possibly for a buyout or management partnership.

• Host Field Trip: Reviewing Local Starbucks:

  • Ann and John tested a Manhattan Starbucks—orders filled in 2 minutes, positive messaging (“enjoy”, “stay amazing”) on cups, but suspected pre-printed instead of handwritten.
  • Store “a little run down,” trash out, limited seating—anecdotal but notable.

• Market & Employee Pulse:

  • Starbucks same-store sales down in first three full quarters under Nicholl—not a clear win yet.
  • Unionization momentum among baristas signals ongoing workforce unrest, but company claims employee retention improving with new HR policies.
  • Analyst outlook mixed: about half rate Starbucks a “hold” or “sell.” Price targets range from $73–$115 (currently ~$83).
    • Quote (Morgan Stanley via Ann Berry, 12:48):

      "Narrative is driving the stock. And that is Wall Street's way of saying it's the promise of what's to come... not what has been executed on so far."

• Evaluation:

  • Ann: "B performance, but an A player. Need to see some wins." ([13:58])
  • John: "B minus...such a difficult turnaround for a public company." ([13:51])

3. Explained: The VIX – Market’s “Fear Index”

[14:17 - 17:25]

• What is the VIX?

  • The VIX (Volatility Index), launched in 1993, measures expected stock market volatility over the next 30 days based on S&P 500 options prices.
  • Below 20 = calm, 20–30 = uncertainty, 30+ = anxiety (e.g., April 2025 spike above 50 on tariff news; pandemic high was 82 in March 2020).
  • Does not predict market direction, only expected volatility.
  • Real-world impacts: A higher VIX can affect insurance, borrowing costs, mutual funds, and mortgage rates.
    • Quote (Ann Berry, 15:57):

      "It's a barometer of sentiment and that's why it's been nicknamed the fear gauge."

• Listener Q&A:

  • Jenna from Austin asks: “What is the VIX?” ([14:17])
  • Ann provides the above explanation.

4. Closing Market News & Tech Watch

[17:28 - 20:44]

• Market Recap (John):
  • S&P 500: +0.33%; NASDAQ: flat; Dow: –0.5%; VIX: 15.38.
• Klarna: +30% on IPO at $52 (up from $40/share), valued at $15B.
• Tapestry Brands: Announced $3B buyback by 2028; stock up 56% YTD, but down on the day.
• Oracle:
  • +40% surge after announcing a $300B OpenAI contract for cloud computing, raising cloud sales outlook despite missing earnings; founder Larry Ellison becomes wealthiest person, leapfrogging Elon Musk.
    • Quote (John, 18:53):

      "Oracle's founder Larry Ellison's net worth jumped over $100 billion today, dethroning Elon Musk as the world's wealthiest person."

• Apple:
  • –3% after iPhone 17 launch, as the market remains underwhelmed. Critics cite lack of major innovation and slow AI rollout, prompting speculation on a potential acquisition to catch up.
    • Quote (Ann Berry, 20:22):

      "There's been a lot of speculation that the pressure may now start to rise on Apple to engage in acquisitions because they need to do something transformational..."

Notable Quotes & Memorable Moments

• On the new Uber/Joby/Blade partnership:

  • “Next gen transportation. Lots of players, sometimes hiding in plain sight. We’re going to keep watching.” — Ann Berry, [03:31]

• On Brian Nicholl’s approach:

  • “He was very famous for going into restaurants... firsthand, observing customers lining up, waiting. Are they being served on time?” — Ann Berry, [06:51]

• On Starbucks transformation:

  • “Chipotle's loss was meant to be Starbucks gain.” — Ann Berry, [08:41]

• On the VIX:

  • “It’s a barometer of sentiment and that’s why it’s been nicknamed the fear gauge.” — Ann Berry, [15:57]

• On the Oracle surge:

  • “Oracle's founder Larry Ellison's net worth jumped over $100 billion today, dethroning Elon Musk as the world's wealthiest person.” — John, [18:53]

• On Apple’s AI challenge:

  • “There’s been a lot of speculation that the pressure may now start to rise on Apple to engage in acquisitions…” — Ann Berry, [20:22]

Timestamps for Key Segments

• [00:01] Uber, Blade, and Joby Aviation partnership breakdown
• [03:31] Hidden winners in the urban air mobility space
• [05:02] Starbucks CEO Brian Nicholl’s first year evaluation
• [06:51] Nicholl’s leadership style and Chipotle turnaround lessons
• [09:43] Field report from a local Starbucks
• [12:48] Wall Street’s grading and sentiment on Starbucks
• [14:17] What is the VIX? (Listener question)
• [17:28] Market closing numbers, Klarna’s IPO, Tapestry Brands, Oracle, and Apple
• [20:22] Apple’s innovation challenge and industry speculation

Tone and Style

Ann Berry’s delivery is sharp, analytical, and conversational, mixing in-experience anecdotes with deep dives on earnings, stock moves, and CEO performance. The show balances light-hearted field reporting (Starbucks visit) with precise, jargon-free explanations of financial concepts and breaking news.

For Listeners Who Missed the Episode:

This episode provides valuable context on transformative trends in transit (air mobility), a candid and clear-eyed assessment of high-profile CEO performance at Starbucks, a primer on the VIX (“fear index”), and a brisk walk through the day’s headline market moves—with memorable asides, market wisdom, and actionable insights for both seasoned and casual investors.