Morning Brew Daily: Episode Summary

Title: DoorDash Ups Delivery Reign with $5B Deals & Tariffs Hurt Weddings?

Release Date: May 7, 2025

Hosts: Neal Freyman and Toby Howell

Introduction

In this episode of Morning Brew Daily, hosts Neal Freyman and Toby Howell delve into pressing issues affecting the U.S. economy and various industries. From the escalating trade tensions between the U.S. and Canada to significant moves within the delivery sector, and unexpected threats to American agriculture, the hosts provide insightful analysis and commentary on current events shaping the business landscape.

1. U.S.-Canada Trade Tensions and Economic Implications

Mark Carney’s White House Visit

Neal begins by discussing Canadian Prime Minister Mark Carney’s visit to the White House amid rising tensions with President Trump. The relationship between the two nations has been strained due to imposed tariffs and trade disputes.

• Neal Freyman (01:35): "Yesterday, newly elected Canadian Prime Minister Mark Carney made a highly anticipated visit to the White House for a chat with President Trump at a time when the economic ties between the two North American neighbors are fraying like never before."

Tariffs and Economic Impact

The imposition of 25% tariffs on Canadian goods, excluding those covered by free trade agreements, has significantly impacted bilateral trade. Both nations are experiencing a decline in exports and imports, affecting businesses large and small.

• Neal Freyman (05:45): "The two exchanged $916 billion in goods and services last year. But with these heavy tariffs, the Canadian and U.S. economies are increasingly splintering in profound ways."

Impact on Businesses and Trade Stability

Toby elaborates on how the lack of stability in trade relations is forcing Canadian businesses to seek alternative markets beyond the U.S., leading to a reevaluation of their dependence on American exports.

• Toby Howell (05:45): "Canada depends on the US for 75% of its exports. Now companies are reevaluating and looking to diversify their trade partners to reduce this heavy reliance."

Sector-Specific Effects

The travel and retail sectors are notably affected, with reduced Canadian tourism impacting small businesses in U.S. border towns and global brands like WestJet canceling routes due to diminished demand.

• Neal Freyman (07:20): "WestJet, which is Canada's second largest airline, canceled a planned flight from Vancouver to Austin due to a lack of demand."

2. DoorDash’s Strategic Expansion and Industry Consolidation

Major Acquisitions by DoorDash

DoorDash has made significant strides in expanding its global footprint through the acquisition of London-based Deliveroo for nearly $4 billion and hospitality tech company Seven Rooms for $1.2 billion.

• Toby Howell (08:18): "DoorDash announced two major acquisitions yesterday, showing it's got more global ambitions than shuttling a burrito in a private chariot to your doorstep."

Industry Consolidation

The delivery sector is undergoing a consolidation phase, with competitors like Uber and Just Eat Takeaway also making strategic acquisitions to strengthen their market positions.

• Neal Freyman (09:32): "It's bulking season in the delivery industry. Companies are consolidating to solidify their lead in this competitive market."

Financial Performance and Future Prospects

Despite economic uncertainties, DoorDash and other delivery companies report strong earnings and profitability, positioning themselves as resilient players poised for further expansion.

• Neal Freyman (09:32): "DoorDash became profitable last year and reported really strong earnings, indicating robust performance despite broader economic challenges."

Expansion into New Markets

Innovations such as Instacart’s new app, Fizz, demonstrate the sector’s commitment to diversifying services and tapping into niche markets like party supplies and communal purchasing.

• Toby Howell (10:45): "Instacart launched Fizz, a drinks and snack delivery app that allows friends to split costs for party supplies, catering to the collaborative preferences of younger generations."

3. Threat of Screw Worm Infestation to U.S. Agriculture

Emergence of the Screw Worm

Neal and Toby discuss the alarming return of the screw worm fly, a parasitic insect that poses a severe threat to livestock and wildlife in the United States.

• Neal Freyman (12:00): "The screw worm is back on the move while our defenses are down, with over 950 cases reported in Mexico this year."

Potential Economic Impact

The infestation threatens to devastate the cattle industry, potentially driving beef prices up and impacting related sectors similarly to how avian flu affected egg prices.

• Neal Freyman (16:03): "Damages to American cattle herds would drive up the cost of beef, mirroring the impact of avian flu on egg prices."

Historical Context and Current Challenges

The hosts reflect on past eradication efforts and the factors contributing to the resurgence, including reduced monitoring and increased cross-border cattle transport.

• Toby Howell (13:09): "We just forgot that it was a problem because these sterilization efforts were so successful. But now, with reduced resources, the screw worm is creeping back."

4. Tariffs Hurting the Wedding Industry

Rising Costs Due to Tariffs

Toby highlights how tariffs have significantly increased the costs of wedding essentials, forcing couples to seek more affordable alternatives and adapt their planning strategies.

• Toby Howell (18:00): "Tariffs are making everything about 145% more stressful for brides to be, with prices on dresses and flowers skyrocketing."

Adaptations by Couples and Vendors

Couples are turning to cost-saving measures such as purchasing wedding items from domestic sources or opting for secondhand goods, while vendors struggle to maintain profitability amidst rising expenses.

• Neal Freyman (19:00): "Couples are starting to trade down, opting for cheaper flowers from Trader Joe's or Costco to manage escalating costs."

Impact on Small Businesses

The increased financial burden threatens small businesses that supply various wedding services, leading to canceled orders and potential closures.

• Neal Freyman (21:00): "Small businesses like photographers and florists are facing significant challenges, questioning how to balance price increases with customer affordability."

5. Mattel’s Stance on U.S. Toy Manufacturing Amid Tariffs

Manufacturing Decisions

Mattel’s CEO expresses skepticism about shifting toy manufacturing back to the U.S., despite high tariffs on Chinese imports, citing cost-effectiveness and affordability as primary concerns.

• Neal Freyman (22:08): "Mattel's CEO stated, 'We don’t see manufacturing in the USA happening because outsourcing enables us to offer our products at an affordable price.'"

Consequences for Consumers and Industry

The decision is expected to result in higher toy prices for consumers and potential shortages, as the Toy Association warns of significant industry repercussions due to sustained tariffs.

• Neal Freyman (22:08): "The Toy Association predicts not only price hikes but also shortages, with many small manufacturers at risk of going out of business."

6. Weight Watchers Files for Bankruptcy Amid Industry Shifts

Company’s Struggles

Weight Watchers has filed for Chapter 11 bankruptcy, aiming to restructure and shed debt amidst declining core program participation and unsuccessful pivots into telehealth and drug-based solutions.

• Toby Howell (23:25): "Weight Watchers has been too slow to pivot, and despite attempting to integrate telehealth and drugs like Ozempic, it couldn’t offset the decline in its traditional programs."

Market Competition and Brand Challenges

The rise of social media influencers and fitness apps has eroded Weight Watchers' market share, compounded by leadership changes and loss of key figures like Oprah.

• Neal Freyman (23:45): "Once Oprah left the board, it signaled deeper issues, as the company struggled to maintain its relevance against newer, more agile competitors."

7. Removal of Iconic Lord of the Rings Eagles at Wellington Airport

End of an Era

Wellington Airport in New Zealand is retiring its giant eagle sculptures, which have been a beloved part of the terminal’s decor for over 13 years.

• Neal Freyman (24:17): "The giant eagles have been a fantastical sight for travelers, but the airport is moving towards a new theme, bidding farewell to the Lord of the Rings imagery."

Public Reaction and Safety Concerns

While fans mourn the departure, practical concerns such as the structural weight and safety issues, including a recent earthquake-related incident, influenced the decision.

• Toby Howell (26:35): "These eagles are awe-inspiring but pose safety risks, as evidenced by one falling during an earthquake."

8. Vatican City’s Papal Conclave Begins

Historic Selection Process

Neal informs listeners about the commencement of the Papal Conclave in Vatican City, where 133 cardinals from 71 countries are sequestered to elect a new Pope following Pope Francis’s passing.

• Neal Freyman (26:23): "The most geographically diverse group of cardinals ever is now entering the Sistine Chapel to choose a new leader for the Catholic Church."

Modern Influences and Predictive Insights

An interesting anecdote shared by Toby reveals that many cardinals have been viewing the movie Conclave for guidance, reflecting a blend of tradition and modern influences in the selection process.

• Toby Howell (27:23): "Cardinals have been watching Conclave the movie for guidance, which is fascinating given their varying levels of experience with the process."

Potential Outcomes

Prediction markets highlight a high likelihood of selecting a new Pope within the coming week, though the exact timing remains uncertain.

• Neal Freyman (28:15): "There’s a 97% chance a Pope will be chosen before May 16, according to Kalshee's prediction market."

Conclusion

Throughout the episode, Neal and Toby provide a comprehensive overview of significant economic developments, industry shifts, and unique global events. Their insightful discussions on U.S.-Canada trade tensions, the strategic maneuvers of DoorDash, threats to agriculture, and the ripple effects of tariffs on various sectors offer listeners a thorough understanding of the current business environment.

Notable Quotes:

• Neal Freyman (01:35): "There's no reason for us to be subsidizing Canada."
• Toby Howell (05:45): "Canada depends on the US for 75% of its exports."
• Neal Freyman (09:32): "DoorDash became profitable last year and reported really strong earnings."
• Toby Howell (18:00): "Tariffs are making everything about 145% more stressful for brides to be."
• Neal Freyman (22:08): "We don’t see manufacturing in the USA happening because outsourcing enables us to offer our products at an affordable price."
• Toby Howell (23:25): "Weight Watchers has been too slow to pivot."
• Neal Freyman (26:23): "The most geographically diverse group of cardinals ever is now entering the Sistine Chapel."
• Neal Freyman (28:15): "There’s a 97% chance a Pope will be chosen before May 16."

Credits:

• Executive Producer: Emily Milian
• Producer: Raymond Lu
• Associate Producers: Olivia Graham and Olivia Lake
• Audio, Hair, and Makeup: Scoop Sardaris
• President: Devin Emery
• Production Company: Morning Brew

For more insights and updates, listeners are encouraged to reach out via email at MorningBrew.com.