Toyota’s take on inventory recovery, Uber Ads, The cost to raise a kid

August 19, 2022
We made it all the way to Friday and we’re just getting started. Today we talk about Toyota’s new Head of Sales’ predictions on that what and when of inventory recovery. We also dig into Uber and Lyft’s plans to get deep in the ad game, as well as a new study revealing the dollar amount associated with raising a child.
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Toyota and Lexus new Head of N/A Sales, Bob Hollis is said he doesn’t believe inventory levels will rise at the OEM’s dealerships for another full year in comments made at a press association event yesterday.

  • Cited as low as a 36 hour supply, he said what the company wholesales will be what they retail
  • He also said he doubts automakers will return to pre-pandemic practices of overproducing and discounting because consumers are becoming more comfortable with the online shopping experience
  • Speaking of EVs Hollis said, "In my experience over 31 years in this industry, when government and others start telling consumers what they must have, consumers start to push back,"

Uber and Lyft are diving deeper into the ad business as the next billion dollar revenue stream

  • With the announcement of Lyft Media, Lyft is looking to capitalize in its acquisition of another company that makes monitors and to run ads on top of cars in a move to sell ad space on in-car tablets that riders use, on digital display panels, bike docking stations, and through in-app sponsorships
  • Uber is already selling ads through its Uber Eats app as well as car top screens
  • Both companies have unique data on their users and can leverage into targeted ads attractive to advertisers
  • A portion of revenue will go to the drivers but it is unclear on how much. Currently Uber drivers who install car-top screens can make as much as 20%
  • Uber estimates $1B in revenue by 2024. Lyft has not disclosed projected revenue

A new study by the Brookings Institute says it now costs a middle income household $300k to raise a child

  • After a recent inflation adjustment, It determined that a married, middle-income couple with two children would spend $310,605—or an average of $18,271 a year—to raise their younger child born in 2015 through age 17
  • The estimate covers a range of expenses, including housing, food, clothing, healthcare and child care, and accounts for childhood milestones and activities—diapers, haircuts, sports equipment and dance lessons, among other costs


Kyle Mountsier, Paul Daly

Paul Daly  00:22

All right, it's Friday, literally, we just rolled back into town. Set up the studios because we had to talk about inventory issues Uber ads and how much it costs to raise a child file. Oh, people really want to. There are a lot of variables and how much of a child

Kyle Mountsier  00:41

billions we're gonna call it billions. I don't know why. I feel like that's the number. Yeah, somewhere

Paul Daly  00:47

between everything, everything I have. And just below everything I have, I think is my what? We're on the ground all day in Philly yesterday. The Syracuse cute crew drove down for five hours. Kyle flew in from Nashville, Michael Cirilo, flew in from Dallas and Murray flew in from Austin. And we just

Kyle Mountsier  01:10

we had just ran straight past that.

Paul Daly  01:12

Hold on. She's dropping a little dropping a little nugget in there just

Kyle Mountsier  01:15

now. Just say what you said hey, Ken Murray. That's not someone.

Paul Daly  01:19

Let's let's talk about Emery.

Kyle Mountsier  01:21

Let's talk about really excited obviously we've got a growing team through the summer we've we've grown our team we started with just Paul myself Danielle and Zack a designer early this year we added writers we added content people we added a whole nine yards and as of Wednesday, Emery Johnson has joined the team as our director of partner relationships and excited to see how she just cares and curates the community both on the industry partner side but she'll she's gonna help out with the the dealer side as well, because she she knows the dealer network, and it may be you're on some content. Yeah. Is going to be is going to be really fun. Yeah.

Paul Daly  02:00

Which is a great reason in and of itself to come to a soda actually to meet the dang team because we're going to be there in full force doing our best to serve you. We got final plans. laid out. We met with the sign people in the AV people and the venue people in the hotel people. The hotel is just about book we had 196 rooms, there's like 10 left, something like that we do have another hotel to go to. So there's plenty of space. But the main hotel just shows like people are buying tickets, booking hotel rooms, we got hundreds of people after just a couple of days, hundreds of people are coming to the Monday night party, that some dealerships literally signed up their whole staff and like we're bringing everybody in the dealership to the Monday night events. So if you haven't gotten your tickets first Otakon go to a soda and get your tickets, book your hotel rooms so you can be ready for this major throwdown it's about to happen in just over three weeks from now, if you're a dealer in the greater Philadelphia area, make sure where can they book that go to event you

Kyle Mountsier  02:58

can make it easy place I'll make an easy place today. I promise by Monday. If you're like golly and these people they don't make easy URLs, we're gonna do it don't worry,

Paul Daly  03:06

we're gonna make it easier. But for now you can go to event bright and just search party with the industry. And you can come for free to the money net entertainment, which is going to be sick, it's going to be crazy. We're blowing through this because we got back this morning. We're unpacking all our stuff we're setting up our cameras supplies getting our white balance so we don't look yellow or like Uber Loompas. And we have some news to talk about before we jump in to the All Things use car clubhouse room, which is going to be nuts in and of itself. We ended last week room with a throwdown who's better what's better Penny perfect or some kind of range for a trade value to give a customer and we got Brian Kramer and David Long on opposite sides and we're gonna go a little point counterpoint. So if you have the clubhouse app, or you can get it just get in clubhouse in about 12 minutes from now 9am Eastern and just search all things used cars will be in there with a boy David Long throwing down let's talk about some good after. All right, Toyota and Lexus new head of sales. Bob Hollis said he doesn't believe inventory levels will rise at OE at their OEM dealerships for another full year in comments made at a press Associated Press Association event yesterday.

Kyle Mountsier  04:14

He said third quarter 2023 is when we can expect inventory levels to get back to some what stable and standard he said they've been as low as a 36 hour supply. I've never heard of supply measured in our perceivable unbelief that well, that that in parallel to actually we've seen our highest day supply overall in the in the industry for the year. It just came out the Charlie Chesbro this week. We have Cox automotive said that we have over a 50 day supply for the first time this year, which is really interesting because it looks like you've got some manufacturers that have supply and have the available ground inventory and some manufacturers like Lexus and Toyota that are still struggling to keep up I know multiple Toyota dealerships that have sold one 100% through their pipeline and will not have any on ground cars for if they sold no more, at least 45 days. So, you know, there's definitely you know, depending on if you're a CD Jr, or a Ford or Toyota or Mazda dealer, you're dealing with different elements of this, but it's just to show that there are still things happening from an inventory perspective that you can be talking with your customers about.

Paul Daly  05:24

In his comments. Hollis also said that he doubts automakers will return to predict pandemic practices of over producing and discount or discounting because consumers are more comfortable with the online shopping process to that I say I disagree. Yeah, because because of this little thing called human nature. So we'll see what how that plays out. Yeah. Pressure from investors, right, all these things market. Just keep going down the list of like, okay, so he also talking about EVs had a few interesting comments about Jim Farley of the Ford CEO because he works with Farley on when Toyota launched the Scion brand. I didn't know Farley work with Scion, but I was a big sound fan. I own the very first XB I bought it right from the factory, my first new car, and he says my experience of over 31 years in the industry. When about EVs you said when the government starts telling consumers what to do and what they should have consumers push back like that and use that phrase, I think he's been paying attention.

Kyle Mountsier  06:32

He said that he's like, these people are in a soda, they got something.

Paul Daly  06:35

Let's just Let's just work it in there a little. It's like the you know, like the little Illuminati sign anyone says pushback, we're gonna immediately say because they're trying to promote a soda. And when it's talking about getting the EVC says we may not be the first. But we will move the best. We might not move first. But we'll move best. And he had a couple of comments about Jim Farley's comments. And he says he thinks he took a page out of Elon Musk's School of creating chatter was like that's, I'm gonna call that a very, very political way of shutting us. He says, he says the guy is brilliant, as I'm quoting. Now, the guy's brilliant. The guy's a great car guy, a great dude. But let me tell you some of the things he said, Well, we're still questioning that as well. So I think the point here is every expert in this industry has an equal and opposite expert. And so you're gonna have to make moves that you think are the best for your store in the time that you have to make them. Same as always. All right, let's move on. We got two new fun stories. So 10 minutes, so I can't I know, we're just giving you a firehose, I'm just gonna go then Uber and Lyft are diving deeper into the ad business, citing it as the potential next billion dollar revenue stream for the public companies. So with the announcement of Lyft media Lyft is looking to capitalize on its acquisition of another company that makes basically cartop screens, right. So you can see the ads as you go by. They also say they're going to sell ads on the screens, they're going to sell them on incar tablets that writers use digital displays by their bike docking stations, and through in app sponsorships for like, you know, eating and things like that. Okay, so

Kyle Mountsier  08:15

yeah, because literally, ad space is revenue generation. It's been this way, like, every time something new it's like, oh, we have websites, ad space. Oh, we have MySpace, ad space, oh, Facebook, ad space, oh, lift everywhere. They're at ad space. But what's really funny to me, is it's it's like they've got this whole new novel idea, like, Oh, my goodness, we got to, we got a company, I got this idea. And we're gonna put we're gonna put ads on top of cars, because taxis have never done that in their history. Which is not true. Have you ever been in New York City, you got like that little triangle thing on every on every single car. Now I get that it's like a digital display. So there's some difference. But you had to know this was coming. You had to knows. Yeah,

Paul Daly  09:02

Uber, Uber has already been doing this, you know, selling ads, especially through the Uber Eats app. So if you have Uber Eats, you realize that you're going to be served as as you're shopping through the platform. You know, they talked about a portion of revenue going to some of the drivers. So it's kind of cool. I think that the Uber and Lyft drivers will actually get some ad revenue, you know, to make it more attractive to drive on that platform. So I think that's a creative way to get more drivers. And I think all of this boils down to this. So Uber saying it'll be a billion dollar revenue stream for them by 2024. Lift is not commenting on what they think they're newer to the game. But the bottom line is this attention is the thing that can be you know, really leveraged against if something has someone's attention, then you can those eyeballs are worth something to an advertiser. So you know, I think they definitely have unique insights. Right? They know behaviors. They know where people are traveling, you know where they're going, they know what they're eating, right? They know what they like to eat you like Chinese food, we're showing you Chinese food that right while you're We're just getting off of the airport, I don't know, just put it together. So again, another interesting avenue of advertising with a different data set overlay that, you know, could present probably some good opportunities for any major industry that

Kyle Mountsier  10:12

advertises these a lot auto dealers massive opportunities, because you start to understand user behavior, what they like to do, where they go, and you can you can segment them based on their interests for the type of vehicle that we're looking at. So if you have a high level of ad creative associated with vehicle specifics that can market to a specific audience.

Paul Daly  10:31

They're gonna think as you know, exactly who's in the vehicle. It's unbelievable. You know, their name, their age, where they live, where they are, like, you know, a whole lot of specific about that was not like person. This is

Kyle Mountsier  10:43

not like the Facebook email that you use 33 emails ago that you still hang on just for your Facebook. Like you have to keep this updated, right? Yeah, that's

Paul Daly  10:51

it. So it's a really, yeah, imagine that, like, Hey, I just bought this wallet. And they're like, hey, the same company makes it belt, bro. And I'm like, scan the QR code. I got nothing else to do. buy it on Amazon

Kyle Mountsier  11:01

captive audience.

Paul Daly  11:04

Speaking of a captive audience, segue

Kyle Mountsier  11:10

like a captive audience or take captive kept

Paul Daly  11:15

emphasis on the word root captive. So So basically, the Brookings Institute released a new study saying it costs a middle income household over $300,000 to raise a child after a recent inflation adjustment with the number was a term that a married middle income couple with two children would spend 310,000 Actually, I'm just looking at this now. Two children, two children,


although that's 150 Well, that's 150,001 federalism. I didn't do it

Kyle Mountsier  11:48

around a year for 18 years.

Paul Daly  11:51

It's good to carry the one to two to do the pilot staggering in theory,

Kyle Mountsier  11:55

depends on triangle, whether you got a football player or a pianist, right? And when they tell you what they eat, you know,

Paul Daly  12:03

David, David long, I'll tell you this. That number probably quadruples the second they're like but I want to ride horses.

Kyle Mountsier  12:09

Right? Oh, without a doubt. Yeah. I want to ride horses or want

Paul Daly  12:13

to do ballet. I want to do a petition. I want to be on the travel cheesy

Kyle Mountsier  12:17

team. Yeah. Private School.

Paul Daly  12:20

It'd be a I want to be a pro streamer. I want estimate covers a wide range of expenses. They calculated housing, food, clothing, diapers, haircuts, sports equipment, dance lessons and other costs. Isabelle Sowell, a senior fellow at Brookings said a lot of people are going to think twice before they have their first child or subsequent job because everything is costing more. Well, look, I think Kyle and I are gonna say this to that last statement. You're never ready. You never have enough money ever have some kids have some kids, because kids are with children are just a blessing, if you choose to see him that way for generations in the past children and posterity, and legacy is the primary way we can derive meaning from our lives. So don't listen to the Brookings Institute and get all down about it. Have some kids and get on the grind and make some more money,

Kyle Mountsier  13:13

right? They there's plenty of money out there and he said get on the grind. It's Friday. Let's get going.

Paul Daly  13:20

All right. So we obviously have a lot to do. We're bouncing into the clubhouse room. We got to make some more because we have cumulatively a lot of kids. So 300 600 900 get out there, make a Friday happen, and we will see you sometime soon.

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