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

0:00Tuesday on NBC, Jimmy Fallon and Bozma St John host the highly anticipated new competition show. I hired 10 creatives from all walks of life. They will be battling it out to see who can impress the world's biggest brands. This is a huge opportunity. This is the battle for the next big idea. This is not play play. We're spending millions of dollars. I'm so excited to embark on this adventure with all of you. Make the best idea win! On Brand with Jimmy Fallon. Series premiere Tuesday on NBC. Good morning Brew Daily Show. I'm Neil Freiman. And I'm Toby Howell. Today, Canadian leader Mark Carney visited the White House as tensions heat up ahead of the Dallas-Winnipeg series.

0:41Oh, and the trade war, too. Then a terrifying flesh-eating fly species is coming for America's cattle. It's Wednesday, May 7th. Let's ride.

0:56Flying within the United States is about to get real. Today is the deadline for U.S. adults to present a real ID at airports to fly domestically, the culmination of a process that began all the way back in 2005 but was delayed numerous times. If you don't have a real ID yet, don't cancel your plans. Homeland Security says you'll still be able to fly just after a few additional identity checks. Plus, a passport or another TSA-approved form of ID will also get you through to your gate. Still, posing as a 25-year-old Hawaiian organ donor probably isn't going to cut it anymore. Hey, I've been getting away with using my Costco card at the airport for the last few years, so I really got to get on it.

1:37Hopefully, it doesn't add to the craziness that is already happening at airports like Newark due to the air traffic controller issues. The Department of Homeland Security did say that 81 % of travelers already have real IDs or are compliant with real IDs, so hopefully things don't get too crazy. But if I were you guys, maybe show up an extra hour or two early for your flights. Do you have your real ID? I do have my real ID. I didn't even notice it. I didn't know it until I Googled, how do you know? Got that little star in the upper right corner, so we're all good here. And now a word from our sponsor, Planet Oat.

2:11Neil, you know how sometimes the best part of the day is the smallest thing? Totally. For instance, yesterday I found a$100 bill on the sidewalk on the way to work. It's the small things. Exactly, tiny wins. Wait, you found a hundred bucks? I found a penny. Anyways, for me lately, it's been planted out in my morning coffee. It's such a small swap, but it really changes everything. Makes your cup richer, creamier, smoother. Speaking of richer, did I mention I found 100 bucks? You did. But did I mention planted out is not just for coffee? It also hits in cereal, smoothies, even straight from the glass.

2:44It's like the utility player of your fridge. Unsweetened has zero grams of sugar and still tastes like it's cheating. And barista lovers, legit cafe level. Tastes like$100. Okay, you are definitely buying lunch today. Get your hands on the oat milk that has it all. Visit planetoat.com for more. Raise the rudders. Raise the sails. Raise the sails. Captain, an unidentified ship is approaching. Over. Roger. Wait, is that an enterprise sales solution? Reach sales professionals, not professional sailors. With LinkedIn ads, you can target the right people by industry, job title, and more. Start converting your B2B audience today.

3:22Spend$250 on your first campaign and get a free$250 credit for the next one. Get started today at linkedin.com slash campaign. Terms and conditions apply. One of the last times the U.S. met Canada, there were three fights in the first nine seconds. Their most recent meeting was a little more cordial and also not a hockey game. 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. Trump has repeatedly accused Canada, and did so again before yesterday's meeting, of leeching off the U.S.'s economy, posting on social media, there's no reason for us to be subsidizing Canada.

4:06Since entering office, he's instituted 25 % tariffs on Canadian goods, excluding products covered by a free trade agreement, as well as tariffs on steel, aluminum, and cars, which Canada ships in droves to the U.S. Trump has also insisted that Canada become the 51st state, angering the people who live there. Carney, meanwhile, is a former central banker who's promoted economic nationalism, and his defiance of Trump helped him get elected last week in a massive come-from-behind victory. So, awkward might be a good word to describe the lead up to their meeting yesterday, but in the end, it was far from a Zelensky-level blow-up and pretty much chummy with Trump saying he respected Carney and Carney calling Trump a transformational president.

4:47However, making Canada the 51st state did come up and Carney replied to a reporter, it's not for sale. It won't be for sale ever. Trump quipped, never say never. Okay, Toby, we had this big meeting. Things seem to go okay, but still no progress on a trade deal was made. And with these heavy tariffs on the books, the Canadian and U.S. economies are increasingly splintering in profound ways. Yeah, despite this relatively chummy meeting, you are right that the U.S. and Canada are not jumping back into bed with each other to do business because think about business owners. They want things like stability.

5:18Banks want stability if they're lending money. Private equity firms want stability. And what do we not have right now between the U.S. and Canada when it comes to trade relations? Stability. So Canada is looking at kind of their dependence on the U.S. in reevaluating here, because right now Canada depends on the U.S. for 75 percent of its exports. That is a huge number. Obviously, their manufacturing sector ships 42 percent of its output to the U.S. as well. So now you're seeing companies kind of reevaluate and say, hey, where are other customers? Can we look to the Asian markets potentially to replace the U.S.?

5:54Can we focus on distributing not exclusively to this one market that is typically made up most of our sales? Can we reduce the amount of sales coming in for the U.S.? So you are just seeing this kind of re-evaluation when it comes to who we're relying on for trade partners if you are a Canadian business. And it's worth remembering amid all the talk between the U.S. and China that the U.S. and Canada are each other's largest trading partners. The two exchanged$916 billion in goods and services last year. Yes, Canada sent 75 percent of its exports to the United States, but the United States also sends$350 billion worth of goods to Canada.

6:34And now Canada has retaliated with $44 billion with tariffs on$44 billion worth of goods like alcohol and things like that. So there is an economic pain happening in the other direction, too. And you're already seeing trade levels plummet between these two countries. In March, Canadian exports to the U.S. fell 6.6%. That doesn't sound like a ton, but it is the biggest drop since the COVID-19 pandemic. And then imports from the United States to Canada fell 3%. And if we look even smaller at just tiny border towns in Washington that rely on a lot of Canadian tourists to survive, they're seeing a lot of pain there as well.

7:13One grocery store said that we've seen sales drop 30 % because no one's coming into the U.S. anymore. And then this was a very funny detail from a Bloomberg report. There is a rubber duck museum that used to be located in the U.S. And again, most of its customers came from Canada, but they relocated over the border because they could dodge some of the tariffs on Chinese goods because a lot of the rubber ducks were sourced from China. So, again, that's a very small scale example, but it just shows you how this decoupling is affected everyone from very large businesses to, you know, rubber duck museums.

7:46The travel industry really has been the poster child of this economic fraying. Just recently, WestJet, which is Canada's second largest airline, canceled a planned flight from Vancouver to Austin. It was the first nonstop flight between these two cities. And they just said, well, the demand wasn't there. And you just go down the line from the earnings reports. This year, you see Airbnb saying we see Canada's Canadians are traveling at a much lower rate to the United States. Hyatt called it a flyover where Canadians are still traveling, but they're just flying over the United States to Mexico, booking holdings, another travel giant.

8:20Canadians are traveling less to the U.S., but we see them traveling to Mexico more at the moment. Delta Airlines, a significant drop off in bookings from Canada. United Airlines said Canadian passenger volumes to the U.S. were down 9 % year over year. So, I mean, they're just really there. There's a quite a precipitous plunge in Canadians coming to the United States. That is a fact that every single company who deals with this is saying. Maybe they just don't have real ideas. No, they have their passwords. DoorDash reported earnings yesterday that exceeded expectations and did what any of us would do when we're feeling ourselves a little, go shopping.

8:56The U.S. delivery company announced two major acquisitions yesterday, showing it's got more global ambitions than shuttling a burrito in a private chariot to your doorstep. The first announcement was an agreement to buy the London-based delivery company Deliveroo for just under$4 billion. Then, hours later, it snapped up the hospitality tech company Seven Rooms for$1.2 billion. DoorDash's vision is to break out of a U.S. market that it has essentially taken over, having already won about two-thirds of the domestic food delivery space. With Deliveroo in the fold, DoorDash's reach expands to over 40 countries and a combined 50 million monthly active users, establishing it as the biggest player in the global market as well.

9:38Speaking of the global market, a main DoorDash competitor also did a little shopping of its own yesterday, with Uber buying a controlling stake in the Turkish delivery app Trendyol Go. It all adds up to an industry that is in its consolidation era after a slowdown from pandemic-era highs, clearing the way for a heavyweight like DoorDash to expand their lead. It is bulking season in the delivery industry. You mentioned Uber bought this Turkish delivery app. process and also in Europe agreed to buy Amsterdam's Just Eat Takeaway, which is a big Deliveroo competitor in Europe. Wonder Group, which is this delivery startup founded by Jet.com's Mark Lohr, bought Grubhub earlier this year.

10:19That company is now worth$7 billion. So you are seeing a lot of consolidation in this industry, which really has weathered the post-pandemic slump, I think a lot better than anyone expected. DoorDash became profitable in the last year, reported really strong earnings. And if you go down the line from these earnings reports from these delivery companies, they're saying we're we're fine. Like, I don't know what McDonald's and these other Starbucks and these other companies are talking about a nervous consumer who's pulling back. I mean, DoorDash CEO Tony Hsu said we haven't seen any changes in consumer behavior, even if there are changes in consumer sentiment.

10:57Instacart CFO got up there and said, no, I haven't seen any signs of a weaker consumer. Uber CEO, Dara Khazr-Sahi, called his company recession resistant. So to a T, these companies are saying, we're doing perfectly fine. I don't know what everyone else is going on with. And some companies that you mentioned are even expanding, launching into new markets. Instacart was one that you mentioned. They just launched a new drinks and snack delivery app called Fizz. This is a alcohol and snack delivery specific app that allows you to actually split the cost amongst your friends if you're hosting a party.

11:30So instead of just having one person buy all the alcohol and then ventmilling them later, they think that you should do that within their app called Fizz because they said young people love doing this. It used to be in the olden days, like the host would determine the menu, determine what people are drinking and bear a lot of the costs. Now millennials and Gen Z, they want to spread it across their friends. Everyone wants to say in what they're actually going to be eating and drinking. So they launched a standalone app there. So you're right. It's another data point that some of these delivery companies are saying, We are seeing not only that we're doing fine right now, but opportunities for expansion into new markets.

12:02They want to go off to the frat party market. Yeah, we'll see how that works out. OK, moving on. A vicious flesh eating fly has broken a biological barrier in Central America and officials warned hordes of them are on their way to wreak economic havoc and do other really gross stuff in the United States. It's not the plot of a new Stephen King novel. This is actually happening. The screw worm, whose larvae eat their host from the inside out, has marched up into Mexico this year and is freaking out American agriculture officials who warn we're not prepared for all the flesh eating that's about to come.

12:37If you were born in the 1920s and lived in Texas, you are very familiar with the old screw worm. It devastated livestock in the South for decades, costing the U.S. economy hundreds of millions of dollars each year. I mean, this thing can kill a full grown steer in just 10 days. But after the U.S. government, working in tandem with Mexican and Central American partners, poured tons of resources into monitoring and eradicating these flesh eaters, screw worms have been virtually absent from the country, saving the American consumer more than$1 billion every year on beef by 1974, or$6.5 billion today.

13:12Now the screw worm is back on the move while our defenses are down. More than 950 cases have been reported in Mexico so far this year with the potential to infest American livestock and also decimate wildlife like deer, hogs, squirrels and raccoons. As one USDA inspection leader said, I'm now very nervous, almost to the point of being scared. Toby, are we screwed? I am nervous to the point of being scared. Neil, these things are called flying piranhas because they descend upon livestock. They lay their larvae and their larvae literally eat their way out from the inside. Do not Google this. Do not Google image search this because it is as gross as it sounds.

13:53But yeah, back in the 1930s, scientists did have this major breakthrough. We're like, wait, we can sterilize these flies. It can really keep down populations and hurt the ability of them to reproduce. And by 1950s, they were using literal airplanes to drop millions upon millions of these sterilized flies per week over infected areas, which obviously did wonders to, you know, keeping these in check. And we actually did set up a factory to produce these things alongside the Panama government in the narrowest part of Central America. That's been the most fascinating thing is that these flies cannot travel over water.

14:27So we literally went to the narrowest landmass we could find, set up a production factory that can pump out millions upon millions of these sterilized screw worms every single week and use that to kind of control outbreaks as they happen. But as with most things in life, as you get further and further away from that initial fear, which was decimating the cattle industry all those years ago, people kind of forgot about it. A lot of veterinarians don't even know how to identify screw rooms anymore, which is why it's creeping back into the lexicon and into the agricultural industry. We just forgot that it was a problem because these sterilization efforts were so successful.

15:04But yeah, I am with the USDA official. I am a little bit nervous myself. Right. They've broken through for a number of reasons. I mean, the big overarching one is that we just don't care as much anymore. We haven't invested so many resources into this problem. staffing for inspectors of cattle crossing. The border has been reduced. And then when you talk about sterile fly production, they produce these infertile males that they bomb on populations to render their populations zero. They've been struggling with supply chain issues around COVID. At the same time, illegal transport of cattle across borders has increased.

15:40And then also there's just been more migration of humans coming from the Darien Gap in Panama, where this biological barrier had been formed over a very narrow area of land. So all of these factors are swirling to create this northernward march of screw worms, and officials are clearly freaked out. And not to make you even more freaked out, but the parasite does thrive in warmer weather. What else is coming up? Summer. So if that doesn't make you more nervous, the hot weather could lead to an infestation that kind of runs unchecked. And by the way, this would impact American consumers because again, cattle supplies, they've been tight for a while now.

16:16So any damages to American cattle herds would drive up the cost of beef. And it is one of those situations that we saw with the avian flu and affecting egg prices. Similar things could happen with screw worms and beef prices. And one fun fact is that Texas was famous for producing the country's top rodeo champions in the 50s. And that's because the ranch hands were so good at roping and cutting cattle out of herds to check for screw room. So if you go through the rodeo leaderboards in the 50s, which I often do, you will just see Texas people just consistently near the top. And that's a direct link to the screw room infestation.

16:56They just had to get so good at inspecting them. Thanks for leaving us on a positive note there, Neil. Up next, we're going to talk about weddings. Eczema isn't always obvious, but it's real. And so is the relief from EBCLIS. After an initial dosing phase, about 4 in 10 people taking EBCLIS achieved itch relief and clear or almost clear skin at 16 weeks. And most of those people maintained skin that's still more clear at one year with monthly dosing. EBCLIS, LibriKizumab, LBKZ, a 250 milligram per two milliliter injection, is a prescription medicine used to treat adults and children 12 years of age and older who weigh at least 88 pounds or 40 kilograms with moderate to severe eczema.

17:33Also called atopic dermatitis that is not well controlled with prescription therapies used on the skin or topicals or who cannot use topical therapies. EPCLIS can be used with or without topical corticosteroids. Don't use if you're allergic to EPCLIS. Allergic reactions can occur that can be severe. Eye problems can occur. Tell your doctor if you have new or worsening eye problems. You should not receive a live vaccine when treated with EPCLIS. Before starting EPCLIS, tell your doctor if you have a parasitic infection. Searching for real relief? Ask your doctor about EPCLIS and visit ePCLIS.lily.com or call 1-800-LILY-RX or 1-800-545-5979.

18:07When did making plans get this complicated? It's time to streamline with WhatsApp. The secure messaging app that brings the whole group together. Use polls to settle dinner plans. Send event invites and pin messages so no one forgets mom's 60th. And never miss a meme or milestone. All protected with end-to-end encryption. It's time for WhatsApp. Message privately with everyone. Learn more at whatsapp.com. Wedding planning is stressful enough as is, but tariffs are making everything about 145 % more stressful for brides-to-be. Despite a 90-day pause on most tariffs, most vendors have jacked up prices on everything from dresses to flowers in response to the expected import fees.

18:53One Reddit user shared how her custom-made wedding dress now costs$1 ,500 more than when she ordered it due to tariff-related charges. Other brides are trying to get ahead of any price rises by stocking up on candles and flower vases, even if their nuptials aren't until 2026 and beyond. Weddings really are ground zero for price hikes. Not only are they running families on average$33 ,000, according to The Knot, but also most of what makes a wedding feel like a wedding comes from foreign countries. About 90 % of wedding dresses are manufactured in China, according to a VP of the National Bridal Retailers Association.

19:31Even mundane things like tablecloths and chairs are going up in price as vendors who order from overseas pass those fees on to customers. Neil, getting hitched, whew, is it expensive and getting even more so. I know, and you're starting to see these couples start to do things like trade down because when you're doing a wedding, like, it's so expensive. You are going to pinch pennies at every step along the way. So if something's going up in price, say flowers, you are probably going to get cheaper flowers. So you hear stories of couples going for getting flowers from like Trader Joe's or Costco.

20:06And some are warning that weddings will go back to what was known as the millennial garbage core of 2014. When you saw mason jars, milk crates and spray painted wine bottles with twine everywhere at weddings. So you are seeing these these tariffs really impact the wedding industry, which relies on a constellation of small businesses to supply things for your big day. Yeah, some other ways that brides and grooms are pinching pennies is instead of French or Italian wines, you go to American wines. Instead of using roses, you opt for carnations instead. Professional videographers, very expensive.

20:42Just give your cousin an iPhone and let them cook. So people are being creative to solve these problems. And I do think – I mean I went to a wedding where a lot of the tableware, at least the candlesticks, were thrifted. And it gave a very interesting and cool vibe to it as well. So it doesn't necessarily mean these things are worse if they are thrifted or secondhand like that. But I do think when you are seeing so many prices being passed on to consumers, I think we're going to see a rise in elopements. First of all, like why even bother with all the expenses? And then the second thing that you can do is just pare down your guest list a lot, which, you know, no one really wants to do.

21:21But look for smaller weddings. They probably do. Yeah. And now they have an excuse to. That is a very good point. You get to know who your true friends are when the tariffs influence cost so much that, you know what, we don't need my sorority sisters from college. Yeah, I mean, the economy does really have a big impact on weddings because it is such a discretionary purchase. I mean, in the aftermath of the financial crisis more than 15 years ago, the average spend on weddings fell 8 % over a two-year period. That's according to the knot. So when people are looking at things that they can cut out of their life, when economic times get a little uncertain, I mean, weddings are one of the first to go or at least like the fancy stuff at weddings.

22:02And really, this is a consequence that will really have a big impact on small businesses. Over the course of the past weeks and months and days, we've talked a lot about how major companies have gotten up on earnings calls and said, we're going to take a$500 million hit off of our profits because of tariffs. We're going to have to raise prices. things might get a little hairy for us, but they can weather the storm. And when you're talking about weddings and the wedding industry, it's photographers, it's florists, it's people who sell bridal gowns, people who sell tuxedos. Those are a lot of the small businesses that make up your community.

22:35I'm sure everyone listening to this knows about that place where they got their prom tuxedo. So these are the people really feeling the impact and they're wondering, you know, what do we do? How do we work out with our customers when we have to, when we are facing price increases. We have to also hike prices on you or we can't stay in business. Let's sprint to the finish with some final headlines. Mattel's CEO is not bullish on toy manufacturing returning to the U.S. despite the massive tariffs imposed on Chinese imports. The head of the Barbie maker went on CNBC yesterday and threw cold water on the idea that toys can ever be made in USA.

23:09We don't see that happening, he said, a day after pulling his company's annual financial targets. He emphasized that while While critical functions like design and engineering do take place and will remain in the U.S., manufacturing will continue to be outsourced because, one, it enables Mattel to offer their products at an affordable price. And by the end of 2025, less than 40 % of Mattel's products will be sourced from China with a goal to reduce that to below 25 % within two years. But the company will still not shift that production to the U.S. The end result is not exactly a Barbie dream house for American consumers who should expect higher toy prices from one of the world's biggest toy makers.

23:48And the Toy Association, a U.S. industry group representing 850 toy manufacturers, didn't warn just of price hikes for toys, but also shortages in its survey of 410 small businesses that make toys that populate our shelves every holiday season. The majority said they had canceled orders and half said they risk going out of business within weeks or months. This this is an industry that relies a lot on China. And right now there are 145 percent tariffs on China. And so they are watching negotiations very closely because they are hanging on a thread in the cutthroat world of weight loss. If you don't adapt, you die.