1 big thing: The UAW's "righteous" cause

Illustration of a hand holding a "UAW" protest sign in the shape of a Christian cross

2. Charted: Instacart's down-round IPO

3. What's happening

4. Disney attacking by land and sea

A cruise ship with fireworks exploding and crowds cheering.

5. Settling for a field goal

6. What they're saying 

Tuesday. 🤑 Sadly, we here at Closer missed out on the FanDuel bet below.

Today's newsletter is 699 words, a 2½-minute read.

🔔 The dashboard: The S&P 500 closed down 0.2%.

Biggest gainer? Enphase Energy (+4.2%), the energy technology company, bounced back after falling in yesterday's session following a Citi stock downgrade.

Biggest decliner? Intel Corp. (-4.3%), the chipmaker's CFO warned analysts of excess data center chip inventories.

🔥 Join Axios for our next News Shapers event tomorrow in Washington, D.C.

Hope and Sophia Cai will interview Sen. J.D. Vance (R-Ohio) and White House deputy national security adviser for international economics Mike Pyle on the road ahead for the 2024 election, takeaways from the G20 summit, international economic policy and other big news stories of the day.

Register to join in person or virtually here.

Today's newsletter was edited by Pete Gannon and copy edited by Sheryl Miller.

Closer

Picture of a golden bell on a white background.

green

Catch up on the day's biggest business stories and look ahead to important trends. Led by Hope King and Nathan Bomey.

Axios Closer

Standard

1 big thing: About that rate cut...

Photo illustration of two Jerome Powell's facing each other

2. Bonus chart: Yield spike

4. Amazon enters consumer AI race

5. Culture exchange

6. What they're saying

Today's newsletter is 608 words, a 2½-minute read.

🔔 The dashboard: The S&P 500 closed down 0.9%.

Biggest gainer? Textron (+4.9%), the aircraft maker and defense company, announced a new deal between Textron Aviation and NetJets.

Biggest decliner? Zebra Technologies (-6.5%), the automation equipment company, received a downgrade from Morgan Stanley analysts.

💻 Axios Pro is out with a new AI policy whitepaper — the legislation, lawmakers and companies to watch right now. Download it here.

1 big thing: Succession 

Rupert and Lachlan Murdoch talking to each other in casual clothing while walking.

2. Charted: Less chewing

4. FTC targets a PE roll-up

Illustration of a gavel hovering over a block with an image of a red cross.

5. Opportunity TikToked

Today's newsletter is 698 words, a 2½-minute read.

🔔 The dashboard: The S&P 500 closed down 1.6%.

Biggest gainer? FedEx (+4.5%), a day after beating expectations on earnings in its latest quarter.

Biggest decliner? Alexandria Real Estate Equities (-8.3%), the REIT, as real estate stocks fell across the board following yesterday's Fed rates decision.

🔥 Reid Hoffman will be part of the Axios BFD event in New York on Oct. 12 to join our discussion of AI investments. Request your invitation.

1 big thing: Strike two

Illustration of a license plate that reads "strike!" as a protest sign

2. Bonus chart: Strike liquidity

4. An inconvenient profit for Lyft

A hand holding a phone showing the Lyft app with a dollar sign

5. By the numbers: $35.88

Today's newsletter is 687 words, a 2.5-minute read.

Biggest gainer? ON Semiconductor (+3.2%). ¯\_(ツ)_/¯

Biggest decliner? Norwegian Cruise Line (-7.4%), for the third straight session, along with other cruise stocks.

Today's newsletter was edited by Pete Gannon and copy edited by Egan Millard.

✏️ Was this email forwarded to you? Sign up here to get Axios Closer in your inbox.

1 big thing: Government shutdown risks

iillustration of the Capitol building with a red smock draped over it that has a name tag - "Pop"

2. Charted: Length of shutdowns

4. What's next for Hollywood writers

illustration of an awards trophy holding a picket sign

5. Shakira plans for 2024 tour

5. Shakira plans 2024 tour

Today's newsletter is 668 words, a 2.5-minute read.

🔔 The dashboard: The S&P 500 closed up 0.4%.

Biggest gainer? Sealed Air Corp. (+3.6%), after the packaging company got a stock upgrade from Citi.

Biggest decliner? Warner Bros. Discovery (-4.0%), as media company stocks saw mixed movement following news of a tentative agreement with Hollywood writers.

National

Whats Next

Axios What's Next

The United Auto Workers union is expanding its strike against General Motors and Stellantis after failing to reach a deal one week into the work stoppage.

Why it matters: The additional work stoppages — including all 38 parts distribution centers at GM and Stellantis but not additional Ford factories — turns up the heat on the Detroit automakers as the union pushes for new labor deals.

The UAW wants wage increases and better benefits for the nearly 150,000 unionized workers at the Detroit Three, while the automakers want a contract that allows them to maintain profits and sell electric vehicles at an affordable price.

Driving the news: UAW President Shawn Fain said the company had made "serious" progress at Ford, where it won't expand the strike, but said Stellantis and GM "are going to need some serious pushing."

"We will shut down parts distribution until those two companies come to their senses and come to the table with a serious offer," Fain said.

He also specifically invited President Biden to join the picket line as the strike continues.

Catch up quick: The union last week launched an unprecedented strike against all three automakers, threatening to expand it without serious progress in negotiations. About 13,000 UAW workers — less than 1 in 10 — had been part of the initial strike, which included three plants that make small pickups and SUVs:

The impact: The expanded strike includes an additional 5,600 workers. All strikers get $500 weekly from the UAW's strike fund after they've been out of work for a week.

The first week of the strike — which also caused GM and Stellantis to lay off workers at plants that relied on components from the shuttered factories — cost the economy $1.6 billion, Anderson Economic Group estimated Friday.

What they want: The UAW has asked for a 36% wage increase, traditional pensions, retiree health care and a 32-hour work week, among other things.

The automakers — which have called the union's demands untenable — have offered wage increases of about 20% to 21%, a restoration of cost-of-living adjustments (COLA) and some improved benefits.

What they're saying: "We're not going to wait around forever for a fair contract at the Big Three," Fain said Friday. "The companies know how to make this right. The public is on our side and the members of the UAW are ready to stand up."

GM president Mark Reuss, in an op-ed in the Detroit Free Press this week, clapped back at what he called UAW "misinformation," saying the company has made a record offer and that "often in these situations, the clouds of rhetoric can obscure reality."

Ford said Friday in a statement that the company "is working diligently with the UAW to reach a deal" but there are "significant gaps to close on the key economic issues."

GM and Stellantis had no immediate comment Friday.

The bottom line: The stakes are escalating.

Go deeper: UAW strike plays out like slow-motion car wreck for Detroit automakers

Editor's note: This story has been updated with additional details about the strike and comment from Ford.

invited President Biden to join the picket line

UAW strike plays out like slow-motion car wreck for Detroit automakers

UAW expands strike against GM and Stellantis

The UAW and automakers are at odds over what demands can be met.

United Auto Workers members and supporters rally at the Stellantis North America headquarters on September 20, 2023 in Auburn Hills, Michigan.

United Auto Workers members and supporters rally at the Stellantis North America headquarters on September 20, 2023 in Auburn Hills, Michigan. Photo: Bill Pugliano via Getty

United Automobile Workers

Economy & Business

Lyft's new CEO recoils at surge pricing — but he tells Axios that he's learning to live with it.

Why it matters: Temporarily higher pricing is a staple of the rideshare business, fueling a revenue boost for Uber and Lyft when demand rises and nearby drivers are in short supply.

Zoom in: Addressing surge pricing, which Lyft calls "prime time," CEO David Risher told investors on an earnings call last month that "we're trying to really get rid of it," noting that "riders hate it with a fiery passion."

But Risher tells Axios in an interview that the company can't do that after all.

"I don't like it, that's true," Risher said. But, he added, "there are times when it is important to allow prices to go up."

Between the lines: Drivers and the company benefit from surge pricing at busy times.

"So I will never be able to get rid of it," Risher says. "It will sometimes rain. ... Or there will be a Taylor Swift concert. When these things happen, it's true, it's going to be more expensive."

What others are saying: Maximizing revenue is "something that Lyft should continue to do and be focused on," CFRA Research analyst Angelo Zino tells Axios, calling it a crucial element of the company's business.

 "I don't necessarily think that surge pricing is an issue they should even be worried about at this point."

Yes, but: Risher, who joined Lyft's board in 2021, says he's developing a culture that's "obsessed" with customer satisfaction, and that he's still working to minimize surge pricing as much as possible.

Due in part to a higher supply of drivers, rides with "prime time" pricing as a share of total Lyft rides fell by 35% in the second quarter, compared with the first, according to Lyft.

Among the company's other efforts to please customers is a new feature called Women+ Connect that matches women and nonbinary drivers and riders, and the other way around, depending on availability.

The bottom line: When he became CEO of Lyft in April, Risher's marching orders were to help the company regain the ground it's lost to Uber in recent years.

If you're annoyed by surge pricing, you've got company — but don't expect it to go away.

Go deeper: Uber aims to put more butts in fewer cars with shared rides

Uber aims to put more butts in fewer cars with shared rides

Lyft CEO: Surge pricing isn't going away

Temporarily higher pricing is a staple of the rideshare business, fueling a revenue boost for Uber and Lyft when demand rises and nearby drivers are in short supply.

Vehicles await passengers at an airport curb

People wait for cars in the Lyft pick-up area at JFK Airport on April 28 in New York City. Photo: Michael M. Santiago/Getty Images

Lyft

Lyft&#x27;s <a class="gtmContentClick" data-vars-link-text="new CEO" data-vars-click-url="https://www.axios.com/2023/03/27/lyft-shakes-up-leadership-amid-tough-battle-with-uber" data-vars-content-id="26e2bd30-5a03-4eba-bdd1-8335f1ea43b4" data-vars-headline="Lyft CEO: Surge pricing isn&#x27;t going away" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/03/27/lyft-shakes-up-leadership-amid-tough-battle-with-uber" target="_self">new CEO</a> recoils at surge pricing — but he tells Axios that he&#x27;s learning to live with it.Why it matters: Temporarily higher pricing is a staple of the <a class="gtmContentClick" data-vars-link-text="rideshare business" data-vars-click-url="https://www.axios.com/2022/06/27/new-mobility-services-growth-transportation" data-vars-content-id="26e2bd30-5a03-4eba-bdd1-8335f1ea43b4" data-vars-headline="Lyft CEO: Surge pricing isn&#x27;t going away" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2022/06/27/new-mobility-services-growth-transportation" target="_self">rideshare business</a>, fueling a revenue boost for Uber and Lyft when demand rises and nearby drivers are in short supply.

From the Valley to D.C., Big Tech players like Facebook, Google and Amazon are under more scrutiny than ever as new technology develops and privacy and antitrust concerns grow in lockstep with companies’ ambitions.

Technology

With fervent anti-corporate rhetoric and aggressive bargaining strategies, Shawn Fain is surging into the national spotlight as he leads a historic auto strike.

Why it matters: As president of the United Auto Workers union, Fain is pursuing "record contracts" from General Motors, Ford and Stellantis while pledging to restore stability to a union fresh off recent scandals.

The automakers must "come to their senses," Fain says, and pay workers what they deserve, calling for a 36% wage increase, a return to traditional pensions, retiree health care and a 32-hour workweek.

Fain, whose family was also involved with UAW, joined the union in 1994 as an electrician for Chrysler at Kokomo Casting Plant in Kokomo, Ind., his hometown, according to a UAW biography.

The big picture: Fain was elected earlier this year as the president of the UAW by a razor-thin margin — 50.2% to 49.8% — by only 14% of the UAW's about 1 million active and retired members.

Fain must show the members who didn't vote for him — or didn't vote at all — that he's fighting for them, says Harry Katz, a collective bargaining professor at Cornell University.

The election came after a tumultuous period for the union. Fain's opponent was incumbent Ray Curry, who was part of the caucus that had been reigning for decades. Curry conceded his loss after initially filing a protest alleging election irregularities and campaign finance violations, according to NPR.  

Fain has promised to restore integrity to the office after a devastating scandal in which two previous presidents went to prison for embezzling member dues and the union ended up with federal oversight.

"No more corruption, no more coverups," Fain's campaign website said.

Flashback: Fain's union roots are familial, dating back to when Chrysler workers joined the union in 1937.

Two of his grandparents were UAW retirees. He regularly carries one of his grandfather's paystubs with him as a reminder of his roots.

The intrigue: In 2007, Fain was a local UAW leader who opposed a two-tier pay system agreed to by Chrysler and the union — which the UAW now wants to undo.

Fain's defiance was rare, Politico reports, and it became an inflection point in his career. 

Worth noting: In the 2023 labor dispute, Fain has been negotiating in public — deviating from traditional, behind-closed-doors tactics — and using strikingly religious rhetoric along the way. President Biden will join the picket line with auto workers on Tuesday, following an invitation from Fain. 

Fain's fervent Christianity is evident in his public remarks, calling on the world to embrace the UAW's "righteous" cause, quoting the Bible and referencing biblical heroes like Moses and Peter. He's also drawn inspiration from Malcolm X, a one-time member of the Nation of Islam.

His repeated bashing of the automakers inspires "members screaming 'I LOVE YOU' to our folksy gen x class struggle christian white dude from Indiana who quotes Malcolm X," UAW communications director Jonah Furman said in a recent batch of leaked messages. 

Catch up quick: In an unprecedented move, the UAW shut down certain plants at all three Detroit automakers — General Motors, Ford and Stellantis — after its labor deals expired Sept. 14, calling for "record contracts" to match the companies' "record profits."

Nearly 19,000 UAW workers were on strike as of Sept. 22, idling plants that make vehicles such as the Jeep Wrangler, Ford Ranger and Chevrolet Colorado — as well as the 38 parts distribution facilities at GM and Stellantis.

Fain has threatened to further expand the strike to include all unionized facilities at the three companies if they don't deliver concessions.

The bottom line: Shawn Fain is leading with deeply rooted passion and rhetoric.

Go deeper: UAW boss Shawn Fain's union tactics, explained

UAW boss Shawn Fain's union tactics, explained

What to know about UAW president Shawn Fain

Fain, a UAW member since 1994 was elected president by a thin margin earlier this year.

United Auto Workers President Shawn Fain speaks at  a Labor Day Rally on Sept. 4 in Detroit. Photo: Bill Pugliano/Getty Images

Jobs

With fervent anti-corporate rhetoric and aggressive bargaining strategies, <a class="gtmContentClick" data-vars-link-text="Shawn Fain" data-vars-click-url="https://www.axios.com/2023/09/22/uaw-strike-shawn-fein-unions-leaked-messages" data-vars-content-id="5dca31f6-1f2a-446c-abd9-e858dc573cd1" data-vars-headline="What to know about UAW president Shawn Fain" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/09/22/uaw-strike-shawn-fein-unions-leaked-messages" target="_self">Shawn Fain</a> is surging into the national spotlight as he leads a historic auto strike.Why it matters: As president of the United Auto Workers union, Fain is pursuing &quot;record contracts&quot; from General Motors, Ford and Stellantis while pledging to restore stability to a union fresh off recent scandals.

President Biden said he'll picket alongside the United Auto Workers in Michigan next week — in a rare act of a president visibly joining a labor movement. 

Why it matters: Nearly 19,000 workers are on strike as the UAW demands higher wages and benefits in its expanded strike against the Detroit Three automakers: General Motors, Ford and Stellantis.

Driving the news: "Tuesday, I'll go to Michigan to join the picket line and stand in solidarity with the men and women of UAW as they fight for a fair share of the value they helped create," Biden said Friday on X, formerly known as Twitter.

"It's time for a win-win agreement that keeps American auto manufacturing thriving with well-paid UAW jobs," he said. 

The announcement came hours after UAW President Shawn Fain invited Biden to join the picket line as the union campaigns for "record contracts."

The UAW also Friday expanded the strike after failing to reach a deal one week into the work stoppage.

Fain said the union had made "real" progress at Ford, where it won't expand the strike, but said Stellantis and GM "are going to need some serious pushing."

Between the lines: Biden, who has previously called himself the "most pro-union president ever," had urged U.S. automakers last week to share more of their "record profits" with the workers on strike.

Biden's visit is set for the day before former President Trump is expected to appear in Michigan instead of attending the second GOP primary debate. 

Zoom out: Given the historic nature of Biden's upcoming trip, there is "little to no precedent" for this type of event, per the New York Times.

"This president takes seriously his role as the most pro-union president in history," former top labor policy adviser Seth Harris told the Times. 

"Sometimes that means breaking precedent," he added.

Editor's note: This story has been updated with additional details.

Biden to join UAW strike and picket with auto workers

Nearly 19,000 workers are on strike as the UAW demands higher wages and benefits from the Detroit Three automakers.

Elijah Escudero, 17, left, and his brother Ethan, 15, hold picket signs in front of the Stellantis Plant where their father "walked off" the job Friday morning in solidarity with the United Auto Workers (UAW) strike in Ontario, California. Photo: Gina Ferazzi / Los Angeles Times via Getty Images

Automakers

<a class="gtmContentClick" data-vars-link-text="President Biden" data-vars-click-url="https://www.axios.com/politics-policy/joe-biden" data-vars-content-id="629dbb81-884b-46a5-8f78-afa6c9b50787" data-vars-headline="Biden to join UAW strike and picket with auto workers" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/politics-policy/joe-biden" target="_self">President Biden</a> said he&#x27;ll picket alongside the United Auto Workers in Michigan next week — in a rare act of a president visibly joining a labor movement. Why it matters: Nearly 19,000 workers are on strike as the UAW <a class="gtmContentClick" data-vars-link-text="demands higher wages and benefits" data-vars-click-url="https://www.axios.com/2023/09/22/uaw-strike-update-gm-ford-stellantis-shawn-fain" data-vars-content-id="629dbb81-884b-46a5-8f78-afa6c9b50787" data-vars-headline="Biden to join UAW strike and picket with auto workers" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/09/22/uaw-strike-update-gm-ford-stellantis-shawn-fain" target="_self">demands higher wages and benefits</a> in its expanded strike against the Detroit Three automakers: General Motors, Ford and Stellantis.

After United Auto Workers on Friday invited President Biden to join the picket line in the union's strike against the Detroit Three automakers, and put the White House on the spot in the escalating dispute, Biden said he would go next week. 

Driving the news: "We invite and encourage everyone who supports our cause to join us on the picket line from our friends and families all the way up to the president of the United States," UAW President Shawn Fain said on a Facebook Live broadcast. "We invite you to join us in our fight."

President Biden said Friday he'll picket alongside the United Auto Workers in Michigan next week. 

Thousands of UAW employees continue to strike against General Motors, Ford and Stellantis.

What he's saying: "Tuesday, I'll go to Michigan to join the picket line and stand in solidarity with the men and women of UAW as they fight for a fair share of the value they helped create," Biden said Friday on X, formerly known as Twitter. 

Catch up quick: The UAW on Friday expanded its strike to include all 38 parts distribution facilities at General Motors and Stellantis — but not additional plants at Ford, where negotiators have made progress.

The work stoppage began a week ago when the union shut down a GM plant in Missouri, a Ford factory in Michigan and a Stellantis site in Toledo. Those plants will continue on strike.

The big picture: Biden has called on the automakers to deliver "record contracts" after earning "record profits" in recent years, but he also said after the strike began that the automakers had made "significant offers."

The union responded by saying "the White House is afraid" of its movement.

Biden wants the automakers to produce more electric vehicles to bolster his fight against climate change. The union says it wants more EVs, too, but that it's concerned it could lead to fewer unionized jobs.

Go deeper... Fetterman joins striking UAW workers in Michigan

Editor's note: This story has been updated with additional developments.

the union's strike against the Detroit Three automakers

UAW to President Biden: "Join us on the picket line" as strike expands

The White House did not immediately respond on Friday when asked about the union's invitation.

UAW members and supporters rally at the Stellantis North America headquarters on Wednesday in Auburn Hills, Michigan. Photo: Bill Pugliano/Getty Images

After United Auto Workers on Friday invited President Biden to join the picket line in <a class="gtmContentClick" data-vars-link-text="the union&#x27;s strike against the Detroit Three automakers" data-vars-click-url="https://www.axios.com/2023/09/22/uaw-strike-update-gm-ford-stellantis-shawn-fain" data-vars-content-id="ad6cdc7d-dc3a-4d34-9c13-e0613128bb21" data-vars-headline="UAW to President Biden: &quot;Join us on the picket line&quot; as strike expands" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/09/22/uaw-strike-update-gm-ford-stellantis-shawn-fain" target="_self">the union&#x27;s strike against the Detroit Three automakers</a>, and put the White House on the spot in the escalating dispute, Biden <a class="gtmContentClick" data-vars-link-text="said" data-vars-click-url="https://www.axios.com/2023/09/22/biden-uaw-strike-michigan-picket" data-vars-content-id="ad6cdc7d-dc3a-4d34-9c13-e0613128bb21" data-vars-headline="UAW to President Biden: &quot;Join us on the picket line&quot; as strike expands" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/09/22/biden-uaw-strike-michigan-picket" target="_self">said</a> he would go next week. Driving the news: &quot;We invite and encourage everyone who supports our cause to join us on the picket line from our friends and families all the way up to the president of the United States,&quot; UAW President Shawn Fain said on a Facebook Live broadcast. &quot;We invite you to join us in our fight.&quot;

Nathan Bomey

Stories

What to know about UAW president Shawn Fain

Biden to join UAW strike and picket with auto workers

UAW to President Biden: "Join us on the picket line" as strike expands

Lyft CEO: Surge pricing isn't going away

UAW expands strike against GM and Stellantis

Newsletter editions

🏛️ Gov shutdown fears

🪧 UAW strike expands

📺 Succession at Fox

🔧 The Fed's not done

🙏 UAW's "righteous" cause