1 00:00:00,080 --> 00:00:03,000 Speaker 1: Joining us now on the company's fourth quarter earnings is 2 00:00:03,080 --> 00:00:08,360 Speaker 1: Lift CEO David Risher and David a clerical error? What happened? 3 00:00:08,920 --> 00:00:10,880 Speaker 2: Well, look, first of all, it's on me. There are 4 00:00:10,880 --> 00:00:12,400 Speaker 2: a lot of eyes on this press release. But at 5 00:00:12,440 --> 00:00:14,640 Speaker 2: the end of the day, my bad. But look, I 6 00:00:14,680 --> 00:00:17,599 Speaker 2: don't want it to take anything away from the butt 7 00:00:17,880 --> 00:00:21,400 Speaker 2: kicking performance that the business did thanks to all of 8 00:00:21,400 --> 00:00:24,000 Speaker 2: our employees and thanks to millions of drivers. I mean, look, 9 00:00:24,000 --> 00:00:27,240 Speaker 2: we had our financially strongest quarter we have ever had, 10 00:00:27,960 --> 00:00:29,080 Speaker 2: and I'm super excited about. 11 00:00:30,560 --> 00:00:35,800 Speaker 1: To be clear, this was simply a mistake, human error. 12 00:00:36,720 --> 00:00:39,360 Speaker 1: The stock rose is not just sixty seven cent in 13 00:00:39,400 --> 00:00:42,880 Speaker 1: after hours, as Caroline pointed out, it's significantly high this morning, 14 00:00:43,040 --> 00:00:44,920 Speaker 1: and we can talk about the performance in the quarter 15 00:00:45,000 --> 00:00:48,120 Speaker 1: gone and the performance in the current period. This may 16 00:00:48,159 --> 00:00:50,320 Speaker 1: sound bizarre to you, but I think it's a real question. 17 00:00:50,880 --> 00:00:54,560 Speaker 1: Did you guys use AI to write that press release? Seriously? 18 00:00:55,000 --> 00:00:57,280 Speaker 1: Or is this as simple as you are calling it 19 00:00:57,280 --> 00:00:58,080 Speaker 1: a clerical error? 20 00:00:58,160 --> 00:01:00,240 Speaker 2: Now it was a clerical error. Yeah, we're at the 21 00:01:00,280 --> 00:01:02,680 Speaker 2: point where press releases can be written by AI, at 22 00:01:02,760 --> 00:01:04,399 Speaker 2: least not financial press releases. No way. 23 00:01:05,319 --> 00:01:09,960 Speaker 3: I hate to ask it because real people's jobs are 24 00:01:09,959 --> 00:01:11,920 Speaker 3: now on the line. I'm sure, David, And I want 25 00:01:11,959 --> 00:01:14,760 Speaker 3: to ask, is a cfo's role safe. Is this going 26 00:01:14,800 --> 00:01:18,920 Speaker 3: to have repercussions from across your membership and employee base. 27 00:01:19,959 --> 00:01:23,440 Speaker 2: The cfo's rule is one hundred percent save, one hundred 28 00:01:23,480 --> 00:01:25,520 Speaker 2: percent save. Look, she and the team are taking this 29 00:01:25,760 --> 00:01:28,800 Speaker 2: incredibly seriously, and you have to understand, I mean, we 30 00:01:28,880 --> 00:01:31,679 Speaker 2: go through hours and hours of checking and double checking 31 00:01:31,720 --> 00:01:35,280 Speaker 2: before something like this goes it's an unacceptable error. Again, ultimately, 32 00:01:35,280 --> 00:01:38,319 Speaker 2: it's on me. I'm the CEO. Buckstops with me. But 33 00:01:38,560 --> 00:01:40,280 Speaker 2: the team is taking it super seriously. 34 00:01:40,800 --> 00:01:43,720 Speaker 3: And I know that you want to be talking ultimately 35 00:01:43,760 --> 00:01:46,640 Speaker 3: about how you're seeing growth in the business. And I'm 36 00:01:46,680 --> 00:01:49,360 Speaker 3: sure that that's something that in a way, the salt 37 00:01:49,360 --> 00:01:51,000 Speaker 3: in the wound is even greater because you had a 38 00:01:51,000 --> 00:01:53,040 Speaker 3: great story to tell and it got marred by this 39 00:01:53,080 --> 00:01:55,200 Speaker 3: particular error. But people are going back and saying that 40 00:01:55,320 --> 00:01:58,040 Speaker 3: you've never seen anything like this in history. David, what 41 00:01:58,520 --> 00:02:01,360 Speaker 3: would you do differently in the next standings? How can 42 00:02:01,400 --> 00:02:04,400 Speaker 3: you make sure that investors feel confident in the statements 43 00:02:04,400 --> 00:02:07,320 Speaker 3: that you put out to them in the foreseeable future. 44 00:02:08,360 --> 00:02:10,320 Speaker 2: Yeah, I mean, look, I would look at our record 45 00:02:10,440 --> 00:02:12,639 Speaker 2: and look at the growth, look at the fundamentals of 46 00:02:12,680 --> 00:02:15,520 Speaker 2: the financials, and to be very clear, it was a 47 00:02:15,639 --> 00:02:18,120 Speaker 2: bad error, but it was one zero in a press 48 00:02:18,120 --> 00:02:21,360 Speaker 2: release and you know a lot of other pages, and 49 00:02:21,360 --> 00:02:23,640 Speaker 2: of course we corrected it within seconds of finding it. 50 00:02:23,720 --> 00:02:26,080 Speaker 2: So I think, you know, like with any mistake, I 51 00:02:26,080 --> 00:02:28,400 Speaker 2: think it's not so much about the mistake itself, it's 52 00:02:28,440 --> 00:02:30,640 Speaker 2: also about how you correct for it. And we've corrected 53 00:02:30,639 --> 00:02:33,079 Speaker 2: for it, obviously in the moment putting out new materials, 54 00:02:33,080 --> 00:02:36,280 Speaker 2: but also doing a really deep process type including having 55 00:02:36,320 --> 00:02:38,720 Speaker 2: our own internal ARTIT team, a separate team look and 56 00:02:38,760 --> 00:02:40,240 Speaker 2: figure out how we can make sure we never make 57 00:02:40,280 --> 00:02:41,239 Speaker 2: a mistake like this again. 58 00:02:41,360 --> 00:02:44,240 Speaker 1: Okay, if you're listening on Bloomberg television and radio worldwide, 59 00:02:44,280 --> 00:02:46,720 Speaker 1: we're joined by the CEO of LIFT, David Risher, and 60 00:02:47,000 --> 00:02:49,360 Speaker 1: I go back to the current stock performance. You are 61 00:02:49,360 --> 00:02:52,280 Speaker 1: still up thirty two percent in the session, and there 62 00:02:52,280 --> 00:02:54,680 Speaker 1: are so many stories within that, but I zero in 63 00:02:54,720 --> 00:02:59,000 Speaker 1: on the gross booking outlook strong. Yeah, what is the 64 00:02:59,120 --> 00:02:59,760 Speaker 1: story there? 65 00:03:00,440 --> 00:03:00,680 Speaker 3: For me? 66 00:03:00,880 --> 00:03:03,320 Speaker 1: I'm trying to make sense of the gig economy more broadly, 67 00:03:03,639 --> 00:03:06,360 Speaker 1: on both the demand and supply side. But if you 68 00:03:06,360 --> 00:03:08,720 Speaker 1: look at the consumer. You look at corporate spending, you 69 00:03:08,760 --> 00:03:11,640 Speaker 1: guys are adding to this narrative that things are quite 70 00:03:11,720 --> 00:03:15,000 Speaker 1: rosy out there. And when does that stop? How long 71 00:03:15,000 --> 00:03:15,680 Speaker 1: does it last? 72 00:03:16,280 --> 00:03:18,000 Speaker 2: Well, look, I don't know when it stops. That's the 73 00:03:18,000 --> 00:03:19,840 Speaker 2: stricky thing to predict. But here's what I can tell you. 74 00:03:20,360 --> 00:03:23,760 Speaker 2: We've had now four quarters of growth, increasing growth, and 75 00:03:23,800 --> 00:03:26,160 Speaker 2: we had our biggest growth here last year of our 76 00:03:26,200 --> 00:03:29,160 Speaker 2: company's history. And by the way, we're talking about billions 77 00:03:29,200 --> 00:03:31,160 Speaker 2: of dollars. By the way, billions of dollars that end 78 00:03:31,240 --> 00:03:33,640 Speaker 2: up going in drivers' pockets. So you can see this 79 00:03:33,680 --> 00:03:36,000 Speaker 2: is a really important part of the economy because it's 80 00:03:36,000 --> 00:03:38,640 Speaker 2: a really important part of people's lives. When people take 81 00:03:38,760 --> 00:03:41,520 Speaker 2: the seven hundred million trips they took last year on lift, 82 00:03:41,760 --> 00:03:43,960 Speaker 2: they're going to see their parents, they're going to a 83 00:03:43,960 --> 00:03:46,600 Speaker 2: tailor swift concert, they're going to work every day, they're 84 00:03:46,640 --> 00:03:48,720 Speaker 2: coming home from work, they're going to see their doctor. 85 00:03:49,000 --> 00:03:51,200 Speaker 2: This is an important part of people's lives. And then 86 00:03:51,200 --> 00:03:54,280 Speaker 2: when drivers are driving, they're earning to save for a house, 87 00:03:54,280 --> 00:03:56,920 Speaker 2: they're earned to save for tuition, they're earning because maybe 88 00:03:56,960 --> 00:03:59,440 Speaker 2: they lost a W two job and they're three weeks 89 00:03:59,440 --> 00:04:01,040 Speaker 2: away from pick up a new job and they need 90 00:04:01,080 --> 00:04:03,680 Speaker 2: something to bridge them. So it doesn't surprise me that 91 00:04:04,080 --> 00:04:07,080 Speaker 2: the gig economy is becoming increasing the essential part of 92 00:04:07,080 --> 00:04:09,360 Speaker 2: people's lives and people's economic lives. 93 00:04:09,760 --> 00:04:14,320 Speaker 1: Your bigger competitor, Uber succeeded by adding new products to 94 00:04:14,360 --> 00:04:19,159 Speaker 1: the app, diversifying even within ride hailing, and it proved 95 00:04:19,200 --> 00:04:23,000 Speaker 1: that its algorithm is working in matching riders with efficient 96 00:04:23,080 --> 00:04:26,240 Speaker 1: routes and drivers. Do you feel that you're going to 97 00:04:26,279 --> 00:04:28,159 Speaker 1: be competitive in those domains? 98 00:04:28,400 --> 00:04:30,880 Speaker 2: I do. I do. Look, our focus is a huge strength. 99 00:04:30,920 --> 00:04:33,279 Speaker 2: We are one hundred percent focused on ride share. You know, 100 00:04:33,560 --> 00:04:36,159 Speaker 2: just yesterday we launched women plus Connect that allows a 101 00:04:36,160 --> 00:04:39,080 Speaker 2: woman rider to pick a woman driver all across the 102 00:04:39,200 --> 00:04:41,479 Speaker 2: United States two hundred and seventy markets. It's been a 103 00:04:41,560 --> 00:04:43,680 Speaker 2: huge success over the first six months when we've been 104 00:04:43,920 --> 00:04:46,600 Speaker 2: kind of trialing it. We launched a new driver standard 105 00:04:46,680 --> 00:04:49,159 Speaker 2: that allows drivers to get a guarantee that they'll never 106 00:04:49,560 --> 00:04:52,599 Speaker 2: earn less than seventy percent of what rider pays them 107 00:04:52,760 --> 00:04:55,080 Speaker 2: after us some fees. So, you know, this is the 108 00:04:55,120 --> 00:04:57,279 Speaker 2: sort of innovation that we can do because we're focused 109 00:04:57,279 --> 00:04:59,520 Speaker 2: on ride share, and look, I expect Uber to do 110 00:04:59,560 --> 00:05:01,160 Speaker 2: pretty well. I think we'll do pretty well too. I 111 00:05:01,160 --> 00:05:02,560 Speaker 2: think this is a really strong sector. 112 00:05:03,279 --> 00:05:05,800 Speaker 3: I'm going to go back to the drivers, David, because 113 00:05:06,080 --> 00:05:08,440 Speaker 3: what's interesting on this day is there is strike action. 114 00:05:08,800 --> 00:05:11,760 Speaker 3: There is on Valentine's Day, whether you're going to be 115 00:05:11,839 --> 00:05:14,160 Speaker 3: flying to Miami, where they're going to be flying to Chicago, 116 00:05:14,200 --> 00:05:15,920 Speaker 3: there might well be issues trying to get a new 117 00:05:15,960 --> 00:05:18,000 Speaker 3: but or indeed a lift. And also in the UK 118 00:05:18,120 --> 00:05:22,039 Speaker 3: as well, I'm interested as to what's happening when you 119 00:05:22,120 --> 00:05:25,920 Speaker 3: are offering seventy percent guarantee, why still do they want 120 00:05:26,000 --> 00:05:28,839 Speaker 3: to demand more even if you say, look, i'm giving 121 00:05:28,839 --> 00:05:29,599 Speaker 3: you flexibility. 122 00:05:30,600 --> 00:05:33,880 Speaker 2: Yeah, I mean, first on the strike itself, Carolyn, It's 123 00:05:33,920 --> 00:05:36,159 Speaker 2: been in the works for weeks, you know, so it 124 00:05:36,200 --> 00:05:39,760 Speaker 2: predates the announcement of this new seventy percent guarantee. If 125 00:05:39,800 --> 00:05:42,159 Speaker 2: you look at what the drivers are asking for, and 126 00:05:42,200 --> 00:05:44,560 Speaker 2: I think these are reasonable things to bring up. They 127 00:05:44,560 --> 00:05:47,600 Speaker 2: want more transparency on their pay. We've given it to them. 128 00:05:47,680 --> 00:05:49,720 Speaker 2: We give them a very very clear weekly breakdown that 129 00:05:49,760 --> 00:05:51,760 Speaker 2: says this is how much riders paid you, this is 130 00:05:51,760 --> 00:05:53,479 Speaker 2: how much we took, this is how much you get. 131 00:05:53,640 --> 00:05:56,160 Speaker 2: They've asked for a guarantee, right so that they don't 132 00:05:56,279 --> 00:05:58,359 Speaker 2: you know, so that there's a floor to their earnings. 133 00:05:58,400 --> 00:06:02,400 Speaker 2: We've given them that too for better visibility into deactivations. 134 00:06:02,560 --> 00:06:04,560 Speaker 2: You know, if you, as a writer raise a complaint 135 00:06:04,560 --> 00:06:06,880 Speaker 2: about about a driver, we have a whole process we 136 00:06:07,000 --> 00:06:09,000 Speaker 2: go through, and drivers, of course don't want to be 137 00:06:09,000 --> 00:06:10,800 Speaker 2: off the platform, particularly if they think it was an 138 00:06:10,880 --> 00:06:14,200 Speaker 2: unfair accusation. And now we cover something like seventy percent 139 00:06:14,279 --> 00:06:16,400 Speaker 2: of those in less than twenty four hours, and there's 140 00:06:16,400 --> 00:06:18,520 Speaker 2: a new one click button that allows drivers to sort 141 00:06:18,560 --> 00:06:21,159 Speaker 2: of appeal the deactivation. So what we're doing is we're 142 00:06:21,200 --> 00:06:24,200 Speaker 2: focused on drivers because we're obsessed over customers. That's kind 143 00:06:24,200 --> 00:06:26,240 Speaker 2: of our thing, and by doing that, we think we 144 00:06:26,240 --> 00:06:28,760 Speaker 2: can address a lot of their issues that they're raising. 145 00:06:29,120 --> 00:06:31,359 Speaker 3: JP Morgan actually completely in line with some of the 146 00:06:31,360 --> 00:06:33,760 Speaker 3: words that you use there. The customer obsession is something 147 00:06:33,800 --> 00:06:36,400 Speaker 3: they point out, the marketplace health is something they see 148 00:06:36,440 --> 00:06:39,840 Speaker 3: to continuing to improve on supply tailwinds. So really, drivers 149 00:06:39,839 --> 00:06:42,279 Speaker 3: are not your issue in the moment, compared to Jping Morgan. 150 00:06:42,360 --> 00:06:47,320 Speaker 3: Another analyst overran Nathanson those saying, ultimately, at the mercy 151 00:06:47,320 --> 00:06:50,359 Speaker 3: of Uber when it comes to pricing power and take rates, 152 00:06:50,400 --> 00:06:52,760 Speaker 3: do you feel that way that you're the mercy of 153 00:06:52,839 --> 00:06:53,720 Speaker 3: Uber in some way. 154 00:06:54,680 --> 00:06:54,720 Speaker 1: No. 155 00:06:55,200 --> 00:06:58,120 Speaker 2: I mean, it's a competitive marketplace, so I think, you know, 156 00:06:58,200 --> 00:07:00,640 Speaker 2: to a certain extent, they're at our mercy like we're theirs, right, 157 00:07:00,800 --> 00:07:03,000 Speaker 2: we can't do things that are completely different and expect 158 00:07:03,000 --> 00:07:06,520 Speaker 2: to have, you know, kind of reasonable results. But at 159 00:07:06,520 --> 00:07:09,160 Speaker 2: the same time, you know, for example, let's again look 160 00:07:09,160 --> 00:07:11,920 Speaker 2: at this driver earns guarantee. That's a that's a commitment 161 00:07:11,960 --> 00:07:14,840 Speaker 2: we've made. It's a leadership move we've made. You know, 162 00:07:14,840 --> 00:07:17,320 Speaker 2: we'll see whether Uber followers or not. But that's an 163 00:07:17,360 --> 00:07:18,800 Speaker 2: area where I would say they're going to want to 164 00:07:18,800 --> 00:07:20,640 Speaker 2: look pretty closely at what we're doing and decide whether 165 00:07:20,640 --> 00:07:22,400 Speaker 2: they want to follow us. But I think it should 166 00:07:22,400 --> 00:07:24,680 Speaker 2: be honest. I think this is a healthy marketplace. It's 167 00:07:24,720 --> 00:07:27,640 Speaker 2: got two good players in a Huber and Left, and 168 00:07:27,720 --> 00:07:29,640 Speaker 2: we're both doing a good job. I like our strategy 169 00:07:29,640 --> 00:07:32,000 Speaker 2: better because I think we're more focused on writers and drivers, 170 00:07:32,000 --> 00:07:33,680 Speaker 2: and I think that's a real strength. But you know, 171 00:07:33,720 --> 00:07:35,520 Speaker 2: they're going at a versification thing. We'll see if that 172 00:07:35,560 --> 00:07:36,360 Speaker 2: works for them. 173 00:07:36,800 --> 00:07:39,200 Speaker 1: For our Bloomberg television and radio audience, we're speaking with 174 00:07:39,280 --> 00:07:41,960 Speaker 1: Lift CEO David Risher and David as you know, we 175 00:07:42,000 --> 00:07:44,040 Speaker 1: always go to our audience and ask what would you 176 00:07:44,120 --> 00:07:46,760 Speaker 1: want to know from from David Risher? And it's the 177 00:07:46,760 --> 00:07:50,640 Speaker 1: same question every time, is lift and acquisition target and 178 00:07:50,960 --> 00:07:54,600 Speaker 1: many put people put forward hypotheses about the type of 179 00:07:54,680 --> 00:07:59,240 Speaker 1: business you know, maybe an auto maker, maybe another convenience 180 00:07:59,320 --> 00:08:02,280 Speaker 1: app it where's your head at with that? You cooled 181 00:08:02,280 --> 00:08:06,600 Speaker 1: your your earnings performance? But kicking, Yeah, but there are 182 00:08:06,640 --> 00:08:09,760 Speaker 1: still free cash flow questions. There are still scale questions 183 00:08:09,800 --> 00:08:10,280 Speaker 1: with lift. 184 00:08:10,560 --> 00:08:13,000 Speaker 2: Yeah, well, let me talk about those and then get 185 00:08:13,040 --> 00:08:15,080 Speaker 2: to the core of the question. Look, we were free 186 00:08:15,080 --> 00:08:17,280 Speaker 2: cash flow positive for the second time in our company's 187 00:08:17,320 --> 00:08:19,880 Speaker 2: history this quarter, and we've committed to investors will be 188 00:08:19,920 --> 00:08:22,160 Speaker 2: free cashu positive for the year of twenty twenty four, 189 00:08:22,360 --> 00:08:24,760 Speaker 2: so you know, and we have one point seven billion dollars. 190 00:08:24,600 --> 00:08:24,960 Speaker 1: In the bank. 191 00:08:25,000 --> 00:08:27,480 Speaker 2: So from a cash perspective, from pretty good shape. From 192 00:08:27,480 --> 00:08:30,360 Speaker 2: a demand perspective, we're in good shape, highest demand ever. 193 00:08:30,520 --> 00:08:33,040 Speaker 2: From a supply perspective, we're in good shape, highest drivers 194 00:08:33,040 --> 00:08:35,480 Speaker 2: hours since we've had since twenty nineteen, So you know, 195 00:08:35,559 --> 00:08:37,920 Speaker 2: from a basic core and then again you think about it, 196 00:08:38,000 --> 00:08:40,559 Speaker 2: seven hundred million rides in a year, I mean, think 197 00:08:40,559 --> 00:08:43,360 Speaker 2: about a Delta air Lines that might do a couple thousand, 198 00:08:43,400 --> 00:08:45,640 Speaker 2: maybe three or four thousand takeoff and landings a day, 199 00:08:45,880 --> 00:08:48,000 Speaker 2: whereas we do let's get two million a day. So 200 00:08:48,080 --> 00:08:49,840 Speaker 2: our scale isn't really an issue for us. We've got 201 00:08:49,880 --> 00:08:52,680 Speaker 2: pretty good scale. Ask the acquisition thing, you know, just 202 00:08:52,720 --> 00:08:54,280 Speaker 2: like people ask the same question, I always give the 203 00:08:54,320 --> 00:08:56,880 Speaker 2: same answer. It's like, I mean, our phone, you know, 204 00:08:57,160 --> 00:08:58,920 Speaker 2: will pick up the phone if someone calls, because that's 205 00:08:58,920 --> 00:09:00,000 Speaker 2: the deal. But it's not our focus. 206 00:09:00,080 --> 00:09:04,320 Speaker 1: Our focus is customers, all right, lift CEO David Rischer 207 00:09:04,400 --> 00:09:07,040 Speaker 1: on set here in San Francisco, thank you so much 208 00:09:07,080 --> 00:09:07,520 Speaker 1: for your time. 209 00:09:07,720 --> 00:09:08,920 Speaker 2: For sure, thanks. I enjoyed it.