“I love the idea of stopping in for a checkup before buying Hot Pockets at a Walgreens.” – Jeff
Hey there carnivores,
Markets were up on Wednesday, even though COVID numbers were too.
And today we’re talking about Walgreens taking things in-house.
Jeff & Jason
Walgreens is bringing things in house, closing a deal with VillageMD to host doctors’ offices right in its stores. Wow, where else can you buy an Arizona Iced Tea and get a rectal exam. Talk about a one-stop shop.
Doctors and cents
Within the next five years, VillageMD will open 500 to 700 clinics at Walgreens’ locations across the US, and it will get paid handsomely for it. VillageMD will get $1B in equity and debt over the next three years in return for a 30% stake in the company by the end of the deal.
Not to be outdone…
In addition to recently installing healthcare facilities inside two of its stores (so, like Subway), Walmart is also dipping its toes in the insurance waters, moving to provide supplemental health insurance to Medicare recipients. This must have been at the behest of its greeters.
How serious is Walmart? Serious enough to file last year with the Arkansas Secretary of State to sell insurance. It’s also got jobs listed on its website for insurance agents in the Dallas area. Will Jake from State Farm sell out?
COVID is really forcing companies to get creative, huh? Neither move was entirely unexpected by the Wal’s, though. For Walgreens, it was really only a matter of time before they cut out the middleman and brought MDs into stores. This should help bolster prescription and retail sales.
In the meantime, Walmart has been making moves to compete with Amazon, and you know what Big Body Bezos doesn’t sell? That’s right. Health insurance.
☑️ Allstate is going National.
“Eat sh*t, Jake from StateFarm.” – the “safe drivers save 40% guy”
Allstate will acquire insurance company National General for roughly $4B in straight cash, homie. This deal will add 42k agents to Allstates family, and expand the insurance company’s portfolio into the personal property-liability business. Sounds sexy.
Car insurance companies, unlike virtually every other business, have actually benefited during the pandemic. Millions of people, following stay at home orders, have driven less, and accidents have dropped significantly.
Twitter rose 7.37% on reports that it will be launching a subscription platform. Internet sleuths figured out @Jack’s master plan after Twitter posted a job opening. According to Twitter’s job board, the social media giant is looking for an employee to help build out the platform, with the code name ‘Gryphon’… which everyone knows is Latin for “HR f*cked up the job posting.”
Twitter later changed the posting, removing any mention about the internal teams that the new hire would work with, namely, Payments and Twitter.com.
A subscription model would give Twitter an additional revenue stream, which could definitely help as 80% of the company’s income comes from advertising.
☑️ A one-way flight to the unemployment office.
United Airlines sent a memo to front line employees on Wednesday that it will likely lay off roughly one third (36k) employees due to weak demand in the airline industry. Thanks ‘rona.
Since United (and other airlines) graciously accepted $25B via a federal bailout, it’s required to give potentially laid-off employees a 60-day heads up. Additionally, it can’t cut anyone until October 1. This follows American Airlines announcement last week that it will likely furlough 20k employees this fall.
☑️ We live in a society.
Daily trading volume of the cryptocurrency Dogecoin rose 683% Wednesday compared to the same day last year, as a TikTok user challenged his followers to buy the coin to push up the price. Somebody aced Finance 101.
The goal was to get the price up to $1 per coin, but even with the 71% price gain, it stands at $0.0043, so just a bit outside… for now.
Between Kanye announcing his presidency, and now this, I’m scared for what today may bring.