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PLUS: How EVs affect auto dealers.
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June 15, 2021
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This is kinda meta: Video-streaming service Netflix is producing a fictionalized series about audio-streaming service Spotify.
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The big idea
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<h2 style="font-size: 22px; line-height: 26px; font-weight: bold; margin: 10px 0px 5px;">
Tech is turbocharging self-checkout grocery stores
</h2>
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<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
The TV show
<em>
Supermarket Sweep
</em>
has been on and off the air since the 1960s.
</p>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
Every version of the show has a game called “the Big Sweep”: Teams race through grocery stores, trying to cram their carts with pricey goods or giant inflatables.
</p>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
And thanks to the
<a style="color: #d62829; text-decoration: none; -webkit-text-fill-color: #d62829;">
increased demand
</a>
for grocery pickup and delivery, retail employees are having a Big Sweep of their own.
</p>
<h4 style="font-size: 17px; height: 100%; letter-spacing: 0px; line-height: 22px; padding-top: 8px; margin: 0px;">
<strong>
One Fred Meyer employee’s job...
</strong>
</h4>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
… is to grab each online order item within 30 seconds and find 95% of every customer’s list, per
<a style="color: #d62829; text-decoration: none; -webkit-text-fill-color: #d62829;">
<em>
The New York Times
</em>
</a>
.
</p>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
To keep up, stores are:
</p>
<ul style="font-size: 16px; line-height: 20px; padding-bottom: 10px; padding-left: 12px; margin: 0;">
<li style="font-size: 15px; line-height: 140%; margin: 0 0 0 15px; padding: 0px;">
<a style="color: #d62829; text-decoration: none;">
Building
</a>
<a style="color: #d62829; text-decoration: none;">
warehouses
</a>
staffed by robots
</li>
<li style="font-size: 15px; line-height: 140%; margin: 0 0 0 15px; padding: 0px;">
Using devices that chart the quickest path through the aisles (though they’re not always accurate)
</li>
</ul>
<h4 style="font-size: 17px; height: 100%; letter-spacing: 0px; line-height: 22px; padding-top: 8px; margin: 0px;">
<strong>
And tech is changing the game for in-store customers, too:
</strong>
</h4>
<ul style="font-size: 16px; line-height: 20px; padding-bottom: 10px; padding-left: 12px; margin: 0;">
<li style="font-size: 15px; line-height: 140%; margin: 0 0 0 15px; padding: 0px;">
<strong>
Grabango
</strong>
-- which just
<a style="color: #d62829; text-decoration: none;">
raised
</a>
$39m in Series B funding -- makes shopping checkout-free. Ceiling cameras catch what shoppers put in their cart. Shoppers pay by scanning an app when they leave.
</li>
<li style="font-size: 15px; line-height: 140%; margin: 0 0 0 15px; padding: 0px;">
At
<strong>
Amazon Fresh
</strong>
stores, shoppers push the
<a style="color: #d62829; text-decoration: none;">
Dash Cart
</a>
through a special lane where sensors tally items and charge whatever credit card shoppers use with Amazon.
</li>
<li style="font-size: 15px; line-height: 140%; margin: 0 0 0 15px; padding: 0px;">
Israeli startup
<strong>
WalkOut
</strong>
<a style="color: #d62829; text-decoration: none;">
retrofits
</a>
existing carts into smart carts that tally items, then scan the list to self-checkouts, traditional checkouts, e-wallets, or grocer apps, while also displaying promotions or shopping suggestions.
</li>
<li style="font-size: 15px; line-height: 140%; margin: 0 0 0 15px; padding: 0px;">
<strong>
Main Street Market
</strong>
in Minnesota charges customers $75 for an annual membership, which gets them
<a style="color: #d62829; text-decoration: none;">
24/7 access
</a>
, even after staff has gone home. Customers pay with an app or self-checkout.
</li>
</ul>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
Now, please enjoy this
<em>
Supermarket Sweep
</em>
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epic fail
</a>
.
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SNIPPETS
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NEW!
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Introducing our new and improved
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<p style="font-size: 15px; line-height: 160%; margin: 0 0 0 3px; padding: 5px 0px 10px;">
<strong>
Stripe raised $1B last month, including from ecommerce giant Shopify.
</strong>
The fintech startup is worth -- wait for it --
<a style="color: #d62829; text-decoration: none;">
$95B
</a>
and is eyeing an IPO later this year or in 2022.
</p>
<p style="font-size: 15px; line-height: 160%; margin: 0 0 0 3px; padding: 5px 0px 10px;">
In 2019,
<a style="color: #d62829; text-decoration: none;">
LinkedIn
</a>
sued another company for scraping data from its website. It lost the suit, but the
<strong>
Supreme Court is now giving LinkedIn another chance to argue its case
</strong>
.
</p>
<p style="font-size: 15px; line-height: 160%; margin: 0 0 0 3px; padding: 5px 0px 10px;">
JPMorgan CEO Jamie Dimon says
<strong>
the bank is “stockpiling cash”
</strong>
(as much as
<a style="color: #d62829; text-decoration: none;">
$500B
</a>
on its balance sheet) in anticipation of higher inflation.
</p>
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Join the 54,528 others
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who are now enjoying extra, personalized snippets. Click the button👇 to choose your favorite topics and see your list grow in tomorrow’s email.
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Cybersecurity
</td>
</tr>
<tr>
<td style="padding: 0 0 6px;">
<a style="color: #d62829; text-decoration: none;">
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</a>
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<td>
<h2 style="font-size: 22px; line-height: 26px; font-weight: bold; margin: 10px 0px 5px;">
Meet cybersecurity’s nightmare fuel: Quantum hacking
</h2>
</td>
</tr>
<tr>
<td class="h2020 ignore-defaults" style="padding: 5px 0px 0px;">
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
If you thought phishing attacks were bad, wait until you hear about quantum hacking.
</p>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
Arqit, a London-based startup, is preparing the
<a style="color: #d62829; text-decoration: none; -webkit-text-fill-color: #d62829;">
corporate world
</a>
for a future where no
<del>
secret
</del>
data is safe.
</p>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
The startup specializes in post-quantum encryption (we’ll get there), and is
<a style="color: #d62829; text-decoration: none; -webkit-text-fill-color: #d62829;">
raising $400m
</a>
in a planned public listing with a SPAC.
</p>
<h4 style="font-size: 17px; height: 100%; letter-spacing: 0px; line-height: 22px; padding-top: 8px; margin: 0px;">
<strong>
It’s big money for a problem that...
</strong>
</h4>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
… is likely 10 years off by Arqit’s own account. But quantum hacking could completely change cybersecurity.
</p>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
The way most digital companies and services keep data safe is through a 1970s technique known as PKI, or public-key infrastructure.
</p>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
The cryptographic technique uses prime numbers and a mix of “public and private keys” -- the same tech powering crypto.
</p>
<h4 style="font-size: 17px; height: 100%; letter-spacing: 0px; line-height: 22px; padding-top: 8px; margin: 0px;">
<strong>
Enter quantum computing
</strong>
</h4>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
This is a term used to reference computing that uses the state of atoms (superstition, entanglement, etc.) to compute as opposed to silicon switches like today’s computers.
</p>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
The result is a computer so powerful that it’s able to break PKI.
</p>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
Many services on the internet use PKI to keep information like financial transactions, web browsing, and emails safe. By rendering PKI obsolete, the entire internet becomes susceptible to hackers.
</p>
<h4 style="font-size: 17px; height: 100%; letter-spacing: 0px; line-height: 22px; padding-top: 8px; margin: 0px;">
<strong>
Arqit is developing post-quantum forms of encryption
</strong>
</h4>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
The startup uses technology that is unbreakable even for the fastest quantum computer.
</p>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
The challenge is convincing businesses to prepare for the transition before they get burned, because no one really knows when a full-fledged quantum computer capable of cracking encryption will exist.
</p>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
IBM plans to build a
<a style="color: #d62829; text-decoration: none; -webkit-text-fill-color: #d62829;">
1000-qubit processor
</a>
-- 10x larger than the largest today -- by 2023. Still, that’s 1000x
<em>
smaller
</em>
than what will be needed.
</p>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
So you can sleep well… for now.
</p>
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Going Electric
</td>
</tr>
<tr>
<td align="center" style="text-align: center; padding: 0 0 6px;">
<img alt="plugged in EV" src="https://inboxflows.com/_/image/https%253A%252F%252Fmedia.sailthru.com%252Fcomposer%252Fimages%252Fsailthru-prod-6ks%252Felectric_charge.png/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZtZWRpYS5zYWlsdCJ9:1lt7IR:xrtW7VrvV6VImvNJBF0HFpKTy1h1rqdlWgmlgVg1Uy0" style="height: auto; max-width: 600px; width: 100%;" width="600"/>
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<td>
<h2 style="font-size: 22px; line-height: 26px; font-weight: bold; margin: 3px 0px;">
How will Big Auto’s EV push affect car dealers?
</h2>
</td>
</tr>
<tr>
<td class="h2020 ignore-defaults" style="padding: 5px 3px 0px;">
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
You may have heard: Old industry carmakers are going all-in on electric vehicles (EV).
</p>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
Per
<a style="color: #d62829; text-decoration: none; -webkit-text-fill-color: #d62829;">
<em>
CNBC
</em>
</a>
:
</p>
<ul style="font-size: 16px; line-height: 20px; padding-bottom: 10px; padding-left: 12px; margin: 0;">
<li style="font-size: 15px; line-height: 140%; margin: 0 0 0 15px; padding: 0px;">
<strong>
GM
</strong>
plans to spend $27B on EV models through 2025 (and wants to be all EV by 2035)
</li>
<li style="font-size: 15px; line-height: 140%; margin: 0 0 0 15px; padding: 0px;">
<strong>
Ford
</strong>
is dropping a cool $22B on EVs and is aiming for a 40% plug-in fleet by 2030
</li>
</ul>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
Among the most-affected groups by this green auto shift:
</p>
<h4 style="font-size: 17px; height: 100%; letter-spacing: 0px; line-height: 22px; padding-top: 8px; margin: 0px;">
<strong>
Thousands of franchise auto dealers across America
</strong>
</h4>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
Ford has ~3k while GM has ~4k… and these shops are bracing for a few huge changes:
</p>
<ul style="font-size: 16px; line-height: 20px; padding-bottom: 10px; padding-left: 12px; margin: 0;">
<li style="font-size: 15px; line-height: 140%; margin: 0 0 0 15px; padding: 0px;">
<strong>
Less service revenue:
</strong>
EVs have fewer parts than internal combustion engine (ICE) vehicles and don’t require oil changes or transmission repairs. Per CNBC, servicing of ICE cars makes up 50% of a dealer’s gross profit, which is a big hit.
</li>
<li style="font-size: 15px; line-height: 140%; margin: 0 0 0 15px; padding: 0px;">
<strong>
Pricey green certification:
</strong>
Auto dealers will also have to retrain their staff and upgrade their facilities for EV sales. Costs to do so can run from $50k to $300k+.
</li>
<li style="font-size: 15px; line-height: 140%; margin: 0 0 0 15px; padding: 0px;">
<strong>
D2C sales:
</strong>
EV leader Tesla does all sales online. And while auto dealers have websites, their core business remains the classic in-person question: “What brings you to our lot today?”
</li>
</ul>
<h4 style="font-size: 17px; height: 100%; letter-spacing: 0px; line-height: 22px; padding-top: 8px; margin: 0px;">
<strong>
While <3% of US new car sales are currently EV…
</strong>
</h4>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
… the shift away from oil is inevitable. A
<em>
Bloomberg
</em>
report projects EVs to account for 58% of all new global passenger vehicle sales by 2040.
</p>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
Auto dealers are already adapting to the shift, with 2.3k Ford dealers in the US already plunking down $50k to be EV-certified.
</p>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
But, really, nothing says inevitable like the frunk space in the Ford’s electric truck (F-150 Lightning)... that’s bottomless space for BBQ equipment.
</p>
</td>
</tr>
<tr>
<td align="center" style="text-align: center; padding: 5px 0px 6px;">
<img src="https://inboxflows.com/_/image/https%253A%252F%252Fmedia.sailthru.com%252Fcomposer%252Fimages%252Fsailthru-prod-6ks%252Fford-f150-lightning.jpeg/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZtZWRpYS5zYWlsdCJ9:1lt7IR:xrtW7VrvV6VImvNJBF0HFpKTy1h1rqdlWgmlgVg1Uy0" style="height: auto; max-width: 600px; width: 100%;" width="600"/>
</td>
</tr>
<tr>
<td>
<p style="font-family: Helvetica, sans-serif; color: #5f696c; font-size: 12px; font-style: italic; line-height: 20px; margin: 0px; padding: 8px 5px 0px;">
Source: Repair Driven News / Ford
</p>
</td>
</tr>
<tr>
<td>
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TRENDS
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<h2 style="font-size: 20px; font-weight: 800; letter-spacing: 0px; line-height: 24px; margin: 20px 0 0px;">
<strong>
We’re giving away a 3D printer!
</strong>
</h2>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
Earlier this year, our analysts presented
<a style="color: #d62829; text-decoration: none; -webkit-text-fill-color: #d62829;">
the enormous opportunities within the
<strong>
3D printing space.
</strong>
</a>
</p>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
We showed you how Trends members have utilized affordable 3D printers (
<em>
some less than
</em>
<em>
<strong>
$500
</strong>
</em>
) to build 7-figure businesses and
<strong>
how you can do the same.
</strong>
</p>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
Now, we’re putting our money where our mouth is.
</p>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
<strong>
We’re giving away a top-of-the-line 3D printer so that Trends members can start building.
</strong>
</p>
<p style="font-size: 15px; line-height: 140%; margin: 5px 0px 10px;">
To enter for a chance to win, all you have to do is
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<strong>
try one week of Trends for just $1.
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We’ll see you on the inside.
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Get your chance →
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Meme of the day
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<p style="font-family: Helvetica, sans-serif; color: #5f696c; font-size: 12px; font-style: italic; line-height: 20px; margin: 0px; padding: 8px 5px 10px;">
Source: Memebase
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SHARE THE HUSTLE
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Over the years, we’ve learned…
<em>
secrets.
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<p style="font-size: 16px; line-height: 140%; padding-bottom: 10px; margin: 5px 0px 0px;">
The business secrets, tips, and tricks that have helped founders go from zero to millions -- and even
<em>
billions
</em>
-- of dollars.
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<p style="font-size: 16px; line-height: 140%; padding-bottom: 10px; margin: 5px 0px 0px;">
Want to see ‘em? Just refer 3 more friends to The Hustle and we’ll send you our curated set of interviews with founders from brands like Zola, AWAY, Vungle, Bonobos, and more.
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Here’s a message you can use to share with your friends:
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Hey! Do you read The Hustle? It’s the best daily business newsletter out there -- only takes 5 minutes to read and you’ll sound like the smartest person in the room. Sign up here, it’s free:
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<em>
P.S. You can always check your referral count
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here
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.
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Today's email was brought to you by
<a style="color: #d62829; text-decoration: none;" target="_blank">
Trung Phan
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,
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Kolby Hatch
</a>
,
<a style="color: #d62829; text-decoration: none;" target="_blank">
Juliet Bennett Rylah
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.
<br/>
Editing by: Brad “Grocery Stop” Wolverton.
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2131 THEO DR. STE F, AUSTIN, TX 78723, UNITED STATES • 415.506.7210
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