{ "docId": "019dd923-622c-750b-8b99-b032f87a30cd", "docSlug": "d09125f46e4d", "documentTitle": "Clear Secure, Inc. (YOU)", "authorId": "54_Spruce_Point_Capital", "authorName": "Spruce Point Capital Management", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2025-04-30 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 41, "pageCount": 85, "prevPage": 40, "nextPage": 42, "slideType": "testimonial", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a testimonial to undermine the company's business model by highlighting competitive threats from Apple, PayPal, and MasterCard.", "elementsJson": [ "headline_text", "callout_box", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-b032f87a30cd/41", "deckHref": "/decks/019dd923-622c-750b-8b99-b032f87a30cd", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-b032f87a30cd.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-b032f87a30cd#slide-41", "components": [ { "bbox": { "h": 0.04, "w": 0.96, "x": 0.02, "y": 0.31 }, "kind": "callout", "text": "Spruce Point Interview With A Former CLEAR Employee", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "270ac6ff-1568-4fce-8671-98a8715e3455", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "We believe the Digital ID model would not be economically viable for CLEAR given it would potentially be on a per transaction basis vs. the annual membership fee.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-70f3-714d-84b8-18658e092e21", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.55, "w": 0.96, "x": 0.02, "y": 0.36 }, "kind": "paragraph", "text": "So the airlines are not going to be married to one solution, right? Airlines want digital identity to operate like credit card POS type of settlement processes. Airlines don't want to run a Digital ID program. They don't want to own the identity, they don't want to manage the reputational risk, etc. There's a negative relationship between TSA pre-check and people who check bags. People who pay for pre-check tend to be people who only check bags when they're traveling internationally or checking golf clubs. So the airlines are still going to need for the larger portion of their travelers who are checking bags, they're going to need, if they really want to push this automated checkpoint bag check, they're going to need other sources for digital identity beyond TSA digital identity. That could be CLEAR. A free membership of CLEAR, not a paid membership. And CLEAR does free memberships in healthcare, sports and other type, I don't know what they call them now. They've differentiated the branding. One is CLEAR Plus and the other one, I can't remember what it's called, but it's basically this free membership that gives you the ability to validate your identity and LinkedIn, Home Depot and a few of these products. So CLEAR could do that. So can Apple, so can potentially PayPal, so can MasterCard, all these companies that are trying to bring digital identity into the wallet, the phone wallet potentially can do the same thing as they start rolling this out. So the airlines want to maintain their ability to interoperate with as many digital identity providers as the TSA approves and CLEAR could be one of them, but not an exclusive one. The airline is more than happy to pay them cents on passenger because it has labor savings and CLEAR gets the benefit of some degree of revenue. We can talk about the quality of that revenue in a minute, some degree of revenue per transaction for those users. And I think that the economics are relatively easily sorted out there.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "cbfe08ed-5a7b-4969-acda-7d12b1da2e91", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.96, "x": 0.02, "y": 0.17 }, "kind": "paragraph", "text": "We believe the Digital ID model would not be economically viable for CLEAR given it would potentially be on a per transaction basis vs. the annual membership fee. One last pain point for the airlines is checked bags. They are currently in the process of working on a solution to eliminate the airline employee that verifies your ID prior to placing the checked bag on the conveyor belt. CLEAR could be a solution for the Digital ID but we believe it would be on a per transaction basis.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ea61fb22-406e-4d2c-a7ed-5380e23375f5", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "So the airlines are not going to be married to one solution, right? Airlines want digital identity to operate like credit card POS type of settlement processes. Airlines don't want to run a Digital ID program. They don't want to own the identity, they don't want to manage the reputational risk, etc. — Former CLEAR Employee", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-70f3-714d-84b8-1dd89aee2287", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.2, "x": 0.02, "y": 0.97 }, "kind": "source-note", "text": "Source: Spruce Point research interview", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "35fe2cfe-badc-4668-8ef0-7c5a79bbd83c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.65, "x": 0.33, "y": 0.03 }, "kind": "title", "text": "Former Employee Commentary On Digital ID Model For CLEAR", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "864299a5-9c0e-4c2a-b65f-83b55f0b7747", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 50, "from": 21, "beatId": "94649fab-d8a2-4e54-9ab1-325a074f74f9", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Spruce Point presents its thesis and evidence", "beatSlug": "overcoming-monster-the-struggle", "evidence": "The document presents Spruce Point's thesis and evidence supporting its short position.", "position": 2, "confidence": 0.8, "parentBeatName": "Development", "parentBeatSlug": "development" } ], "loops": [ { "to": 50, "from": 40, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "1d1cc5a9-6cd7-496f-807c-c1fec88c64e3", "evidence": "The document highlights the potential risks and consequences of not addressing CLEAR's challenges.", "position": 1, "objective": "Emphasizing the risks of not addressing CLEAR's challenges", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.6, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }