tv Mad Money CNBC September 23, 2015 6:00pm-7:01pm EDT
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>> it is forming. >> whether we start with this show let's see your retention and that is how we're ending it. watch nike, because i don't think they will disappoint. >> the harp music. i'm melissa back. "mad money" with jim cramer starts right now. my mission is simple, to make you money. i'm here to level the playing field or all investors. there is always a bull market somewhere. i promise to help you find it. "mad money" starts now! hey, i'm cramer. welcome to "mad money." welcome to cray-america. ajob is to educate, teach and coach you. call me at 1800743 cnbc or tweet me @jim cramer. you know what clueless is? it's when you only take into the account the twifactivities and
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actions of public companies. if you look at the companies with stocks that currently trade, you might not see the oncoming train of a private company coming right at you. that's why we travelled out west to sit down with all sorts of privately-held companies to hear what they were up to and how they're going to disrupt industries. it's why we check in with cu's of fledgling companies. when don't want you to be surprised. i have been dragged kicking and screaming into the new era but not necessarily how you think. half dozen years ago a group of us from summit, new jersey, decided to buy an in down the block from my house. i have been known to whip up pretty mean scrambled eggs there. i am working on poached ones. we didn't know anything about the lodging business. the building seemed nice. i thought we'd have needs like
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around the clock coverage to check people in, get them out, get them to pay. i thought there was no way anyone would hear about us unless we spent time and money on advertising. i thought we were nuts to go against established places around town because we couldn't charge what they were able to and we'd always end up empty-handed. i was wrong about everything. i didn't realize there has been a wholesale change in the way people book travel. lon go these days people from to trip v advisor for reviews. everything is paid in advance. hotel tonight will help you fill your hotel with people with declining prices. why not fill your room at a reduced race as the evening proceeds at pace. if i wasn't involved with the inn i wouldn't know about these innovations taking the world by
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storm. if i wait too long and you don't find out about them until they are go to go public, you have to compete against huge funds that have gotten their orders in early. so they're going to get top priority over you. plus, you won't understand the new dynamics of whatever particular industry is being disrupted by these innovators. we're not sure if or when they're going to come public. i am skeptical of some of the gigantic valuations some of these companies are sporting in the private markets given how difficult the public markets have become and how unforgiving the market can be to young compans that hope to come public someday. i think many of the private multi-billion dollar companies might not get through the ipo window. let's say they price the deal at levels that are much less attractive than many people. that said, when we were in san francisco last week the enthusiasm for these companies was palpable and our skepticism was southerly tested when we
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heard about the growth these companies have and the prospects that await them. tonight we'll look at the standouts in the field and give you the insight you need to make up your minds about them ahead of when they might come public. maybe you want to try them out, use their product. get the hang of what they do like people have done with uber or air b & b which is beginning to give hotels a run for their money. let me give you the bottom line. no matter what, i want you to see the future before it happens so you can be a better investor. time to catch a glimpse of the revolution before it gets televised, at least by someone else. how about sumner in new york. sumner! >> hello. jim, i know you like the hospitality industry. i think the last time i spoke to you you were on the starward hotel company? do you favor them? >> the hotel industry has become
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challenged. a lot of companies have disappointed like la quinta. the air b & b is making inroads. travel trust owns it. reluctant to buy more until it falls lower. patrick in new jersey. patrick. >> jim, how are you? >> i'm all right. how about you? >> good. i'm a young investor. i want to add a few high-growth biotechs for the long term. how about intrexon and biodeliv biodelivery. >> i'm not a fan of biodelivery. if you want to get an immunotherapy company or that asell jeanne has a stake in. kelly in montana. kelly. >> how are you doing? >> all right. how about you, kelly? >> i want to know about ford motor company for a long-term stock. >> i don't like the auto companies. i think there's too many things to keep track of. too international.
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it's really, really hard to get a bead on how the earnings are. we focus on how the united states is doing and leave out a lot of the markets that are determining the ultimate earnings. say china, europe or, worse, latin america. a good investor is always looking outside the box which includes examining disrupters and companies revolutionizing their industries. i am here tonight to help you spot them. on "mad money" we know the struggles of putting together ikea furniture. i have companies willing to take on the task for you! plus, does the number of emails in your inbox deem daunting like mean? we can save your workplace sanity. she is the youngest self-made female billionaire in the world, being compared to steve jobs, revolutionizing health care. just ahead. have a question, tweet cramer, #mad tweets. send jim an email to mad money
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i've had the chance to feature on the show. the start-ups revolutionizing entire industries and unseating more large public companies competitors. enter task rabbit. this company connects you with friends and neighbors to outsource any number of tasks from household chores to standing in line at the apple store. we spoke with the founder to hear more about how this company is disrupting how people get things done and also the future of work. >> leah, for people who haven't used task rabbit, why do we need it and why do we find that we ought to go to task rabbit and not some other company that hasn't figured it out yet. >> task rabbit is the only mobile markplace that gives you a breadth of services. a one-stop shop for all your task and errand needs. handyman, personal cleaner, you can find a tasker rating in a local community, vetted by our
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system and connect with them instantly. >> why would anyone want to be a tasker? are we redefining work here? >> this is the future of work, jim. this is an age-old challenge of people thinking about how they redefine the 9:00 to 5:00 and get more flexible with the work force. we did a survey of our 30,000 taskers across the u.s. and the uk. we asked them what was important to them. their number one answer was flexibility. flexibility over income, actually. and so being able to provide a platform where our taskers can set their own schedules and hourly rates per category, which is really important, and accept and decline work on the fly, it is really the future of work. >> this is important because the other day janet yellen was talking about the idea that people who are part-time workers are really -- really want to be full-time workers. you're kind of giving me a different approach to that. >> i heard the comment.
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i cringed because i thought, that's not what i hear from 30,000 people every single day. we have stay-at-home moms doing these tasks and errands on the side and saving that money to take their family on vacation. retirees with all these skills and services they want to offer in a non-traditional way. >> would these people be normally -- have full-time jobs and just want to be more of a free-lancer? >> so, it's interesting because 34% of americans today consider themselves free-lancers. this number is only growing. so there is this trend of about a flexible work force, about the free-lance economy and task rabbit is a platform where people can really set their own destiny. >> what kind of health care and retirement package do they get? >> we partner with a lot of different companies. one is stride health. we're offering discounts on benefits, on health care, we're offering discounts on transportation services, telephone services. we really are trying to piece
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together a sustainable in the long term life-style for these individuals. >> when i look at you -- go to your website which is terrific and people should understand it. there are things that i don't know why -- what wants to mount a tv? who in their lifetime wants to build ikea furniture? that's one of the toughest tasks yet you put it on your site. >> maybe for you. >> someone knows how to do it with the terrible little thing? the funny named stuff? >> we have ikea furniture experts. that's all they do. they've built an entire business on building the furniture. they'll cash out upwards of $8,000 every month. >> who wants to wait in line for me? >> maybe you're a student in between classes, maybe you're looking for a few extra bucks on the side. there is always an opportunity between supply and demand. >> why can't i buy the domain errand.com and start up against
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you immediately and get some of your people and do terrifically. >> the first is our vetting process. so we take pride in how we vet 100% of our tasker community. this is something we started way back in 2008 before people were even doing this before. 100% of our taskers go through a background check, screening process, in-person orientation to learn how to utilize the app and interact with customers. so quality is very high. if you bought errands.com today, started a site, the quality might be really, really bad. so just managing the experiences between clients and taskers is incredibly important. >> another place we've seen huge changes is communication collaboration. can you imagine life without your smartphone in your pocket anymore? with emails, texts and instant messages it's becoming difficult to keep up. slack is a company trying to fix that. it provides realtime group chatting across devices and totally in sync. i spoke with the ceo to hear more about his plan to
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revolutionize modern communication. >> i hate my email, stewart. i get too many. how can you fix it for me? >> we can take a stab towards fixing it. slack is for internal communications. so the extent to which a lot of your email is external, can't help with that yet. on the other hand, for a lot of people, the bulk of their communication is internal and that can be in the hundreds -- in the extreme cases like yours maybe 1,000-plus emails a day. those we can almost completely eliminate. >> slack is creating a new world. they're not as excited about it if they haven't used it yet. you have made your technology something people love, not hate. >> yeah. that's -- i mean, first of all, that's the entrepreneurial dream. you build something, people like it enough that they're compelled to tell their friends and some of their friends are -- they like it enough to tell other people. and that's the situation that we found ourselves in. >> wait a second.
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i don't know any other technology i want to tell anybody about. >> yeah. that's it. i mean, that's the secret. it rarely happens. but we have a twitter account called slack love tweets where we retweet people saying stuff, i transformed my organization. i'm glad we got it. love this thing. using that as a lever to get into new companies and to get new teams transformed is a beautiful thing. >> it seems to be easier to search than my current iteration that i use? >> yeah. that was one of the big things for me. when i switched to gmail from outlook and i was at yahoo. like many companies, there was a tiny limit on the size of our outlook mailboxes. one thing i noticed about gmail was if i knew i could search for it, i didn't have to spend a lot of energy filing it. remember the decision about which folder should i put this in so i have a hope of finding it again. the cognitive cost of processing
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the messages was higher than realized. suddenly that dropped through the floor. that's what we're trying to do in the context of internal communication is make is so you don't have to file it. you get it in one big stream and make it searchable. >> people are talking about $2.8 billion unicorn. you didn't start out to start this thing. >> we started to build a web-based multi-player game. it was a neat idea. it had a hard-core fan base but couldn't justify at the time which was a $17.5 million capital investment. we developed a system tofor internal communication while we were developing it. we weren't trying to design the system. whenever a problem became so hard that we couldn't deal with it anymore we did the minimum amount of work to fix it. over the course of several years we did enough tiny fixes that we realized that this is actually good.
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we would never work without a system like this. we want to be able to find efficient ways to advertise. we did podcast ads. a couple print ads in magazines. it's been entirely viral. one of the cases is people like enough to tweet about it, tell their friends. the second one is someone leaves their job and arrive at the new company and they say, oh, my god. >> pros they tiesers. >> we have to get switched over. we see that with acquisitions. nordstrom called a couple companies and both of those are slack-using teams. blue bottle coffee bought a company that was a slack using company. >> you're famous for saying that a giant crash could be a boon. i don't want to necessarily use that headline but it sounds like you think a lot of other companies are overvalued. you have a lot of money. you could make a move. but nothing out there represents any value at these prices?
quote
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>> you're talking to someone who is a shareholder in lehman brothers over that weekend. >> never mind. >> i'm not super great at predicting that stuff. the fact that we have a quarter billion dollars of cash in a checking account effectively means we would be in a good position if this insane real estate market became cheaper. if it was easier to hire engineers. if companies became cheaper to acquire. i don't know that it's going to happen. if it happens we'll be in a great position. >> your failed business has become a god send for many people. i'm jealous. i'm going to be a prost le tieser. it's very clear that it's a happy team medium. well done. >> thank you very much. >> that's stuart butterfield, the ceo and founder of slack, a technology that actually people like. stay with cramer. (vo) what does the world run on?
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looking back at some of the mows innovative start-ups i've interviewed on "mad money." thirteen oez is trying to dem ok ra ties your data and empower you to make decisions. the company's breakthrough advances enable them to clean an incredible amount of data from a few drops of your blood. we caught up with the inspiring founder and ceo elizabeth holmes in april of 2015. take a look. >> welcome to "mad money." >> thank you. great to be here. >> elizabeth, you're doing something that's so profound that i -- you are giving
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transparency. you're also making it easier and better for the consumer. there is a little device you have that i think is a good metaphor to start with. can you show us. >> this is what we call the nano tainer. a very tube designed to replace the big vials that you take out of your arm when you draw blood traditionally with a tiny drop that can come from a finger. >> what does this mean for the traditional way we do diagnosis? how would it upend the paradigm? because i know you don't want to think small. >> the goal is to empower the individual. we believe strongly that the future of health care is in enabling the individual to have the information that they need to take ownership of their health. and making lab information, which drives 80% of clinical decisions more accessible, by making it as painless as possible, making it incredibly inexpensive and providing transparency around pricing so that people know before they buy
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a health care service how much it's going to cost them, we can begin to make it possible to enfranchise the individual. >> this is not pie in the sky. great board of directors. walgreens. that's the largest. they've decided that your way is the way to go. >> they have. we are in 41 wellness centers in arizona. we have been able to serve a huge number of people over the course of the last year. and it has been phenomenal to see what it means for people to begin being able to afford the ability to do a test when they haven't been able to do that before and being able to do it in a location that's convenient. for example, being able to come in on a weekend to get tested as opposed to having to go to an emergency room, which was the alternative before. >> now, if people know that they have to get stuck, it's something -- you've described it as like spiders.
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there are certain phobias. having a needle in your arm is something that's kept people from taking care of themselves, right? >> absolutely. myself included. i am absolutely terrified of it. i mean, i've always said, if you were to sort of think of torture experimen experiments, it would be a phenomenal one. you sit there and watch as your blood is sucked out of you. and it's incredibly painful for cancer patients who go through hell with all the blood that they have to get drawn. or little kids. we have had a phenomenal experience working with mothers of autistic children who resonate so strongly with this because otherwise, when they take a child to get their blood drawn, they literally have to strap the child into a chair. >> there is an entrenched interest to big companies, laboratory health and quest diagnostics. $11 billion in revenues. they obviously need to stop you or else a major part of their business goes away. aren't you just a small company that they can crush? >> you know, we have a belief
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system, which is that this is not about us or our technology, it's about giving people a basic right that they have lost, which is the ability to get access to their health information. and our belief is that the cost of testing should be lower across the board. we've been billing medicare and medicaid at 50% to 90% off of their reimbursement rates and working with them now to lower their rates. in the past medicare has paid the most, which you don't normally hear government services paying more than commercial entities. but if we can drop those rates, if we can make it possible for every person, irrespective of where they go to do a lab test, to be able to afford it, we'll begin to help them engage with the information they need before they're sick which is the essence of what we think needs to happen in reshaping our company. >> this is not just an united states issue. emerging markets, this would be a fabulous thing.
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>> it is so important to us. we think about it a lot, especially in environments where there is not good, traditional infrastructure and there is a phenomenal opportunity to leap-frog over the lack of effective conventional infrastructure in the same way that cellphones did to land lines to make it possible to begin to build something that can serve people in a decentralized context. >> one last question. to me, it's reasonable to compare you -- i usually don't do this -- to steve jobs and what he did for computing. i regard you as a visionary, next-generation person. is this the kind of ridiculous pressure that nobody needs? >> you know, steve jobs was -- i don't think there is another steve jobs. he was a phenomenal entrepreneur. we've got an incredible opportunity to try to uphold a legacy in silicon valley of changing the world. >> disrupting the world! >> we're working 24/7 to do it. >> that's how of work. elizabeth holmes, the ceo and
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founder of they aranos. in a world of amazon prime and google express can start-ups still make their name in the delivery game? two companies are proving they can. they're coming in hot across the country. cramer is getting the details hand-delivered on how post mates and insta carts are calling the shots in the delivery service space, next.
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we've been talking tonight about the innovative start-ups and the mission to make your life easier. insta cart wants to do it by eliminating your trips to the store. they partner are retailers and sign up their own shoppers to do your trips for you. it's a cool idea but an increasingly competitive space. we spoke with the company's ceo about that and a whole lot more when we were back in san francisco in april. >> welcome to "mad money." >> thank you. >> a whole foods wants to be able to get people to shop, but they don't have time. and the customer doesn't have time to go to whole foods. that's where you fit in. >> absolutely. we found that there is customers who have always wanted grocery delivered to their door and they wanted it in one hour, two hour,
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same day. the fact is that's never been able to be done before. and now, because of the fact that smartphones have been existing and the smartphone penetration is so high, we have the huge pool of crowd-sourced labor available and enabled to be able to pick and deliver the groceries. so that's why this is now possible. >> okay. so what do i do? i go on my app. whole foods, i saw an ad on the subway in new york that said, do you want this piece of tilapia. insta cart. what do i do to get it? >> you open the app or go to insta cart.com. choose a store, choose the items, add them to your cart and they arrive at your door. >> how much more does it cost me? >> at most stores $3.99 for delivery in under two hours. >> wow! that's terrific. how about if i am at my hotel last night and there is no room service at a certain hour? >> insta cart is a better mini bar. >> they'll bring it to me in an
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hour? >> absolutely. all the groceries you want from any of your favorite stores in the city to your door within an hour. >> you worked with amazon. i think they're trying to do something like that. they can't compete with a local guy with carters here. >> amazon has a fundamental disadvantage in the space. the reason is because we deliver it within one hour, two hour or same day from your favorite stores. amazon delivers the next day with their amazon fresh program and deliver it from their warehouses. customers want the groceries from whole foods. they want the groceries from costco. they can get that from instacart. not from amazon. >> does my shopper know what a good avo caudo is from a bad one. >> we train our shoppers. they actually pack the bread in a way so it doesn't get squished. we make sure the eggs do not break at the point of delivery. these are minor details but are very important for us to
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perfect. >> i have two dogs. i hate going to the place. eight blocks out of my way. eight blocks back. i know i want the stuff delivered. like ligaments. how do i specify that i want ligaments and petco? >> you open your insta cart app, choose the petco store. choose and find the ligaments your dogs like and add them to your cart and there you go. we do groceries well. >> okay. so is there any reason, when you hear an uber wants to be in it, you would think that uber knows how to do it? >> i think it's a fantastic idea from uber's perspective. they already deliver passengers. why not deliver packages. but what does that mean for insta cart? not much. when you think about grocery shopping, you have to think about all the intricate details that go into picking the right groceries. how do you make sure you're working with the retailers
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really well. how do you make sure that you're delivering to the customers and the perishable groceries have not spoiled when you deliver them. those things are extremely intricate and we've perfected them over the three years. i think uber should do package delivery, but i don't think it will include groceries. >> why did walter rob and john macken pick you? >> walter and john are fantastic. both have built a fantastic brand with whole foods. when we met them, we were able to show them some of the innovation that we had done in the grocery world. they loved it. and i think that they -- they knew that we were aligned with their culture as well as we thought they were aligned with ours. >> i know you've helped their bottom line. you certainly helped them on valentine's day too, you delivered the roses. >> absolutely. i think that we -- we have -- focus ourselves as the retailer's best friend.
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i think that helping grocers like whole foods is a win-win for us. >> you heard me say earlier this space was competitive. i wasn't kidding. the same day we were in san francisco we spoke with another player in the on-demand delivery front. post mates. they signed big deals with companies like mcdonald's, starbucks, seven 11 to pilot same-day delivery programs. listen to what they decided to do differently to separate themselves from the pack. >> i saw you last time before starbucks and chipotle. the two biggest accounts anybody could partner with. describe how you got them. >> i think the chipotle deal happened because of starbucks. the fact that we got starbucks i think i mentioned before is because the companies work similar. we're both people companies that care a lot about the people.
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we are operating the largest on-demand delivery fleet in the united states. over 10,000 people doing deliveries. we care a lot about them. we created insurance. we created packages that nobody else offers. i think starbucks realized that. >> my understanding it was a very competitive situation. >> it was, it was. they are all. exactly what's happening over the last six months. the market that post mates help create. the large players take note and look at all the players in the market and every single one of them decides to go with post mate. >> you've talked off camera about how ridiculous it was that there wasn't a post mates. >> yeah. >> it didn't make sense that i couldn't get something, that i had to go to amazon and get it shipped. i thought that analysis of it was so good. share it with us. >> the idea is what if you can use the city as a warehouse. >> the city as a warehouse. >> imagine how beautiful that is. imagine you can search for a hat like this or for a tie in san
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francisco. you find the stores that deliver the hot, press a button and have it delivered in a few minutes. short ways. rather than shipping out of arizona. i think that's what post mates likes to be. >> i think this is also a small business dream. they cannot compete against amazon until post mates gets involved. >> huge part of the mission was to give retailers in cities better weapons to fight against amazon. they've been bullied around. our friends that work in retail spaces, they find employment difficult, people come and look at products and then shop at amazon. but i believe that the real reason they're doing that is because it is cumbersome to shop in the retail space unless you're in it. the retail is locked. i want to unlock it. >> talk about what it's like to be a driver. i think a lot of people watch our show who would actually think about working for you in their spare time. you get a background check. you do a lot for -- to be sure it's the right person. >> yep. >> then the people know where
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this person is. describe the process. people at home might want to do this. >> if someone is interested go to post mates.com/apply. sign up. within 24 hours we get back to you. we put you in an orientation session on a car, scooter, a bike, and you can be out there. i describe it as america's best part-time job. that's what it is. it's very complementary income to another job you're doing. perfect for students. we have a lot of artists. some of these people are truly amazing, inspiring people that can use post mates as a source of income at the times when it suits best for them. >> chi potle. you were doing stuff with them before. even they though saw starbucks fall in line, they already liked you. >> when we launched post mates three years ago we did deliveries from chipotle's restaurant and got a cease and desist from them. >> what? >> they said, guys, we're concerned about the food quality.
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>> right. >> but, you know, what did we have to lose? so we decided to ignore it and just continued to go on with the deliveries. i think what happened is over time that they warmed up to the idea. first of all, that there is a very persistent start-up run by a stubborn, persistent german founder and an equally stubborn american co-founder. on top of that, we showed them that we can deliver the quality that they want. in q 1 we delivered this year over half a million dollars in burritos. i think it was at some point the right moment for them to say, hey, why don't we make this more official and start working together. >> on their end i have understood you boost -- their comparable store numbers go up because of you. >> i don't know the details on their side. i 100% agree, that's what we see in a lot of spaces that we're working with. 76% of all the places that we deliver from have not done deliveries before. >> wow! one last question. you talk about the notion of the
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insurance. i mention this because some people are saying uber does not insure. what are you doing for these people that's special enough that someone else might not? some people feel that curiers don't have a good life. >> we're offering uber and lyft. $1 million whether you're in a motorized vehicle or not. we also offer a 50 thoufdz occupational accident insurance. if you just want to try it over the weekend, if you are in an accident, your medical expenses up to $50,000 are covered by post mates regardless if the fact that you have health insurance or not. we think it's an important thing to offer. >> it was my understanding that that was the clincher for why you got these contracts, because you care. sebastian lehman, the post mates co-founder and ceo. two big ones since i saw you last. >> thanks a bunch. >> stay with cramer.
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all right. time for a little r and r. as mobile technology has spread more companies are taking advantage of the appetite for the best deal at the best time. hotel tonight. travel deals on the go. the company has tailored your experience to your smartphone and your smart watch to make booking a breeze. look at our interview with ceo and founder sam shank. >> i am trying to explain people what we do and why we need them. not how big the year is going to be. why do i need hotel tonight as a consumer, and why do i need it as a hotelier? >> we are a market place. two customers. for the consumer side wemake a mobile app making it easy to snag a room at the last minute. tonight but also up to a week in advance.
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we save you money, we save you time. we get you in a great hotel at a great price. for the hotels, on the other side, they have empty rooms. 40% of all hotel rooms in the country, in the world, are empty right now. we help them fill the rooms. it's a great deal. hotels get incremental revenue. >> phone rings. it's someone who wants a room. i book the room, i leave the key on the table. why do i need hotel tonight and why do they need it? they got the phone. i book the room. >> the state-of-the-art we replaced. remember back when you had to call each hotel individually? you didn't know if jim was giving you a good deal or if he was saying, i'm going to jack up the price on this guy. you can shop across all the hotels. it's a market place for the hotels are competing against each other. it drives down the rates and makes sure the hotels are being honest and pricing according to the market. gets you a really good room.
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>> ease of purpose. i understand that i have got the apple watch. >> all right! >> how quickly can i get my -- oh. >> there we go. yep. we were one of the first apps that enabled hotel booking on the apple watch. and what you can do is open the app. it shows you the five closest hotels to you. two more apps. so five seconds, you can book the room. you don't have to take your phone out of your pocket you can keep going on with the night. if you're at a place where ease inconvenient or impolite to take out your phone, you can do it on your watch. >> true. yelp reported this weekend, they didn't report a great quarter, frankly. they need more revenue sources. why wouldn't they, a, either buy your company or, b, decide, i see he has a good business. i'm going to open my business against him? >> i don't know if we would be interested in selling to them. that's the first answer. i think that what people underestimate in this type of business. we have seen a lot of people try
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to do what we have tried to do. start-ups across the world and also the big guys. this is a difficult business. you are dealing with last-minute inventory, dealing with finding somebody a place to stay, dealing with finding the best hotels for them. it's hard to launch and even harder to scale. and do this at the scale of thousands and thousands of hotel rooms every day. >> so you line up enough partners, you think, to be able to block anyone? >> we don't do exclusive relationships. we're very hotel friendly. there is actually an app that the hotels can use where they can say i want to stop selling my rooms right now and it closes out instantly. you can load inventory in and out quickly. this is the sales pitch for you and your hotel. >> i like it. variable pricing. 8:00 i step -- if i'm running a hotel, still got a chance people will come in. 9:00, getting tough. at 10:00 i know i'm going to lose the rate. can i lower my rate. >> yep. >> in your app? >> you have full control over that as a hotel. you can lower your rate in realtime, you can add inventory. we see hotels do in some of our
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most mature markets like new york city hotels will adjust their inventory up to 15 times a day. so they're going to be adjusting the rates up and down, playing with the markets dynamics. filling the rooms at the best possible rates. generally rates decline and late at night you find the best deals. >> you are from this hospitality industry. i know you know kayak and priceline. do you want to partner with them or defeat them? >> they're our competitors. no question about it. we are stealing share from them. they've tried to replicate us. we invented this category. we're the largest in what we do and do it absolutely the best. >> the largest and fastest tends to win out here. i have learned that much in my time at san francisco. sam shank. co-founder and ceo. private company. be on the lookout for it and stay with cramer. cramer, you are super, you are awesome! >> i am a first-time investor. >> thank you for inspiring me to get in the game. >> your show is the best.
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jersey. what have you got for me? >> hi. my husband and i are huge fans of the show. >> thank you. >> even actually checked out the belmont tavern on your recommendation. >> nice. >> i'm a young investor and i'm interested in companies whose products i use regularly. the five stocks i wanted to tell you about is starbucks, chipotle, under armour, google as a media play and facebook as a tech play. >> let's look this over. normally -- i am glad you prefaced it by saying you are a young investor. i would say chipotle and starbucks have overlap because they're both restaurants and google and facebook have overlap because they're competitors in many different things. we're going to bless it because you are a young investor. under armour, starbucks, coffee. google a search company and facebook is all things internet. i say it's okay. an older person, candidly because i think age matters, i would not bless that portfolio.
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steven in florida, please. >> hang loose on st. georgia island. >> nice. i love it there. what's up? >> man, i'm waiting for this market to turn around. looking for under armour, apple, jetblue, nove yo. i couldn't resist tetra faze when it tanked. >> too much biotech here. at thetraphase. keep that but get rid of the inovio. he should be in general electric. i want yield. jetblue, aero space, apple. under armour. tech, apparel, airplane, a biotech company. i put you in a great industrial, general electric for yield. that is the conclusion of am i diversified?
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