WEBVTT - Amazon Exclusive, Uber Demand, Putting Trust in Ark 0:00:02.240 --> 0:00:05.560 From the heart of where innovation, money and power collive 0:00:06.360 --> 0:00:10.879 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.960 --> 0:00:28.520 Emily Chang. Welcome to a special edition of Bloomberg Technology. 0:00:28.560 --> 0:00:31.320 I'm Emily Chang, and we are live from the City 0:00:31.360 --> 0:00:35.479 Club in San Francisco, where the Bloomberg Technology Summit is happening. 0:00:35.560 --> 0:00:39.000 Coming up over the next hour, a wide ranging, exclusive 0:00:39.040 --> 0:00:44.040 conversation with Amazon CEO Andy Jassy. His thoughts about the economy, unions, 0:00:44.159 --> 0:00:47.559 and regulation, plus how his relationship with Jeff Bezos has 0:00:47.560 --> 0:00:52.160 evolved since he got the top job, and is Uber 0:00:52.479 --> 0:00:55.960 recession resistant to Eodara Kasra Sha he seems to think, 0:00:56.000 --> 0:00:58.440 so what he's planning to do to keep it that 0:00:58.480 --> 0:01:03.080 way if the economy gets any worse and our invests 0:01:03.160 --> 0:01:06.800 Cathy Wood defending her flagship et S week performance, why 0:01:06.880 --> 0:01:10.600 she says investors to just trust him now. I did 0:01:10.600 --> 0:01:13.600 sit down for an exclusive and wide ranging interview with 0:01:13.720 --> 0:01:16.600 Amazon CEO Andy Jase. We spoke about everything from the 0:01:16.640 --> 0:01:19.360 economy to unions to the role of Jeff Bezos at 0:01:19.360 --> 0:01:22.800 the company today. But first I asked about Dave Clark, 0:01:22.840 --> 0:01:25.360 who spent more than two decades climbing the ranks at 0:01:25.400 --> 0:01:29.559 Amazon to become its consumer chief. He resigned abruptly last 0:01:29.560 --> 0:01:32.400 week and just announced he's joining the logistics software startup 0:01:32.600 --> 0:01:36.000 flex Port. Here's what Jesse had to say about his departure. 0:01:38.600 --> 0:01:42.800 Different people want to do different jobs with different responsibilities 0:01:42.800 --> 0:01:46.440 at different times, and it's incredibly personal. And I think 0:01:46.520 --> 0:01:48.520 Dave wanted a different gig at this point, and I 0:01:48.560 --> 0:01:51.440 don't begrudge him at all. I mean, Dave saided so 0:01:51.560 --> 0:01:54.960 much to Amazon or the last twenty three years, and 0:01:55.280 --> 0:01:57.280 particularly over the last two and a half years, which 0:01:57.280 --> 0:01:59.720 have been among the most crazy in the history of Amazon. 0:02:00.440 --> 0:02:03.080 And I think that if you want to build a 0:02:03.120 --> 0:02:06.520 business that lasts a hundred plus years and that lasts 0:02:06.520 --> 0:02:08.520 all of us, you have to get used to these 0:02:08.520 --> 0:02:10.640 sort of transitions and make sure that you're you know, 0:02:10.680 --> 0:02:12.799 you're doing the right succession planning and you've got the 0:02:12.919 --> 0:02:16.480 right talent to to keep building the business. And you know, 0:02:16.520 --> 0:02:18.720 we've done that historically and I expect we'll do it again. 0:02:19.200 --> 0:02:21.960 Um Elon Musk just came out saying he has a 0:02:22.000 --> 0:02:25.200 super bad feeling about the economy, Tesla laying off ten 0:02:25.200 --> 0:02:28.600 percent of his staff. Jamie Diamond says he's preparing for 0:02:28.639 --> 0:02:32.280 an economic hurricane. The World Bank just slashed its forecast 0:02:32.600 --> 0:02:37.240 for global growth. How do you feel about the economic climate. Well, 0:02:37.240 --> 0:02:42.200 I wasn't planning on giving any guidance today, please, but 0:02:42.760 --> 0:02:51.160 super bad or super super bad? I think, Uh, there's 0:02:51.200 --> 0:02:54.680 some things that it relates to Amazon that are useful 0:02:54.760 --> 0:02:58.760 to remember, you know. I think the first pieces, remember 0:02:58.760 --> 0:03:03.440 the scent of the of the worldwide retail market, segment 0:03:03.520 --> 0:03:07.640 share is offline. And if you believe that that equation 0:03:07.720 --> 0:03:09.440 is going to flip at some point, which we do, 0:03:09.520 --> 0:03:11.480 I think it will who will flip over a long 0:03:11.520 --> 0:03:15.280 period of time. But if you believe that the companies 0:03:15.320 --> 0:03:18.079 that have great customer experiences like we do, I think 0:03:18.080 --> 0:03:19.960 are gonna are gonna do all right. And you know, 0:03:19.960 --> 0:03:22.920 and that and great customer experiences mean you have really 0:03:22.960 --> 0:03:27.520 broad selection, low prices, and very fast delivery that's reliable 0:03:27.520 --> 0:03:30.280 to customers. You know. I also think that if you 0:03:30.560 --> 0:03:33.440 look at different down turns um you know, should we 0:03:33.520 --> 0:03:35.120 have one at some point and we've been through a 0:03:35.120 --> 0:03:37.120 few obviously in the twenty five years that I've been 0:03:37.120 --> 0:03:41.440 at Amazon. Customers change their habits, you know, they tend 0:03:41.440 --> 0:03:43.960 to be pickier about what they buy and when they 0:03:44.000 --> 0:03:46.680 buy and who they buy from, and they often pick 0:03:47.320 --> 0:03:50.040 the partners and the companies that they trust, you know, 0:03:50.040 --> 0:03:52.480 and they have great customer experiences like the dimensions I 0:03:52.520 --> 0:03:55.800 mentioned earlier. UM And so you know, I also think 0:03:55.840 --> 0:03:59.360 there's you know, those two reasons, those two factors give 0:03:59.440 --> 0:04:01.600 me some optism that even if we have a downturn, 0:04:01.680 --> 0:04:04.400 that we have the potential to still grow. I would 0:04:04.440 --> 0:04:08.480 say that regardless though, we have so many things that 0:04:08.560 --> 0:04:10.560 we believe we can do better for customers. We have 0:04:10.560 --> 0:04:13.760 a roadmap that's you know, probably three to five years long, 0:04:13.800 --> 0:04:15.440 and we're going to continue to invent. We're going to 0:04:15.520 --> 0:04:18.039 continue to be insurgent, and we have a lot of 0:04:18.040 --> 0:04:19.560 work to do to get to where we think we 0:04:19.640 --> 0:04:22.920 ultimately can get for customers. Everyone's very curious about Jeff's 0:04:23.000 --> 0:04:26.839 role these days. What kind of executive chair he really is. 0:04:27.000 --> 0:04:29.800 He said when he left that he'd focus his attention 0:04:29.839 --> 0:04:32.760 and energies on initiatives that he really cares about as 0:04:32.880 --> 0:04:34.760 at Amazon. But from the outside, it looks like he's 0:04:34.760 --> 0:04:38.440 really focusing on philanthropy, he's focusing on space. What kind 0:04:38.440 --> 0:04:41.520 of an executive chairman is he? Well, he you know, 0:04:41.680 --> 0:04:45.120 Jeff is always going to be involved and um he 0:04:45.160 --> 0:04:48.359 has you know, I'm I feel very lucky to have 0:04:48.360 --> 0:04:51.200 been in Amazon for twenty five years. I feel very 0:04:51.279 --> 0:04:54.039 lucky to have worked directly for Jeff for twenty of them. 0:04:54.120 --> 0:04:57.080 And we have a really close relationship and have for 0:04:57.120 --> 0:04:58.960 a long time, and I think we share a lot 0:04:59.000 --> 0:05:03.080 of the same value is about customers and um, how 0:05:03.120 --> 0:05:06.279 important is to optimize for customers and how high standards 0:05:06.360 --> 0:05:09.080 they need to be. Um, you know, given how easy 0:05:09.080 --> 0:05:11.600 it is for people to switch, and the importance of 0:05:11.640 --> 0:05:14.560 invention and speed, and so I know, I just feel 0:05:14.640 --> 0:05:16.360 very lucky to have had the chance to work so 0:05:16.400 --> 0:05:18.839 closely with him. We still talk all the time. It's 0:05:18.880 --> 0:05:21.000 it's very useful for me to be able to seek 0:05:21.000 --> 0:05:23.560 his counsel. He did the job for so long and 0:05:23.560 --> 0:05:26.800 and he's always made himself available. So is your relation 0:05:26.839 --> 0:05:29.719 I mean, he was your only boss for twenty five years, right, 0:05:29.880 --> 0:05:34.200 is your relationship fundamentally different than it was when you 0:05:34.240 --> 0:05:36.640 were the head of of course, you know, every every 0:05:36.680 --> 0:05:40.360 single job you have, the relationships different. You know. Remember 0:05:40.720 --> 0:05:43.000 the first couple of years I worked for Jeff, I 0:05:43.040 --> 0:05:45.120 worked is what we call his shadow then, which really 0:05:45.120 --> 0:05:47.840 like a chief of staff. And that was different than 0:05:47.880 --> 0:05:50.920 when I was starting AWS, which was different from when 0:05:50.920 --> 0:05:52.880 we got AWS going, and it was, you know, a 0:05:52.920 --> 0:05:55.240 business that was starting to do well. And and it's 0:05:55.279 --> 0:05:57.760 different when I'm in the CEO role. But you know, 0:05:57.800 --> 0:05:59.719 the constant has always been that we have a great 0:05:59.720 --> 0:06:02.560 relate ship, and we collaborate really well, and I think 0:06:02.560 --> 0:06:06.279 that we listen to one another. And um again, for 0:06:06.400 --> 0:06:08.680 me to have the ability to bounce different things off 0:06:08.760 --> 0:06:10.720 from and seek his council is very valuable. And he's 0:06:10.720 --> 0:06:14.640 still focused on Amazon. He still has focused on Amazon. Yea. Um. 0:06:14.680 --> 0:06:18.320 Amazon is poised to become the biggest private sector employer 0:06:18.960 --> 0:06:22.640 in the world, second only right now Walmart is in 0:06:22.640 --> 0:06:27.520 that spot, but Amazon will probably soon surpass it. First 0:06:27.600 --> 0:06:30.160 vote to unionize at an Amazon warehouse, I know you've 0:06:30.160 --> 0:06:32.919 been spending a lot of time at warehouses. When you 0:06:32.960 --> 0:06:35.240 look at someone like Chris Small's who I think some 0:06:35.279 --> 0:06:37.840 people look at as this modern day hero who got 0:06:37.839 --> 0:06:41.120 fired pulled off this union vote, what's your message to 0:06:41.200 --> 0:06:44.000 someone like him, Your message to the folks who think 0:06:44.200 --> 0:06:47.080 maybe we should join a union. Well, I know, I 0:06:47.160 --> 0:06:49.800 think that the first thing to be clear about is 0:06:49.800 --> 0:06:52.640 that employees get to make that choice whether they want 0:06:52.640 --> 0:06:54.320 to have a union or not. They always have had 0:06:54.360 --> 0:06:56.760 that choice and it continues to be their choice. And 0:06:57.440 --> 0:06:59.400 you know, we happen to think they're better off without 0:06:59.440 --> 0:07:03.159 a union or a number of reasons, including the fact 0:07:03.200 --> 0:07:06.640 that you know, it's it's much harder when you have 0:07:06.720 --> 0:07:09.440 a union to have a direct relationship with your manager 0:07:10.000 --> 0:07:12.120 and to get things done quickly. So if you see 0:07:12.160 --> 0:07:14.040 something on the line that you think could be better 0:07:14.120 --> 0:07:17.120 for your your team or you or you or customers, 0:07:17.960 --> 0:07:19.800 you can't just go to your manager and say let's 0:07:19.880 --> 0:07:22.840 change this. You know, there's a whole process in bureaucracy 0:07:22.880 --> 0:07:24.400 that you have to go through to be able to 0:07:24.440 --> 0:07:26.680 do that. You know, and and we get you know, 0:07:26.680 --> 0:07:29.440 when there's a union, we're going to get the feedback 0:07:29.560 --> 0:07:33.120 filtered by what the union decides is worth bringing up. 0:07:33.120 --> 0:07:36.400 And we'd much rather hear from every employee whatever is 0:07:36.440 --> 0:07:38.800 on their mind. And so, you know, I think if 0:07:38.840 --> 0:07:41.200 you want to continue to have the structure that we've 0:07:41.200 --> 0:07:44.040 had for all this time, you have to have really 0:07:44.080 --> 0:07:46.520 competitive benefits. And then I think if you look at 0:07:46.560 --> 0:07:50.240 Amazon's they're very unusual in this space. We champion the 0:07:50.280 --> 0:07:55.240 fifteen dollar minimum wage, several years ago. The starting salaries 0:07:55.280 --> 0:07:57.840 now over eighteen dollars an hour, which you know is 0:07:58.440 --> 0:08:01.520 more than double the federal minimum wage. You get full 0:08:02.000 --> 0:08:05.160 health insurance in four oh one k and twenty weeks 0:08:05.200 --> 0:08:07.760 up to twenty weeks of parental leave. And if you 0:08:07.760 --> 0:08:09.840 want to get a college education, you haven't had one. 0:08:09.840 --> 0:08:12.280 We have a career choice program that's our fulfillment Center 0:08:12.760 --> 0:08:15.160 associates to be able to do so. That is a 0:08:15.360 --> 0:08:18.560 very unusual and compelling set of benefits, and those were 0:08:18.600 --> 0:08:22.080 all accomplished without a union. So, you know, I think 0:08:22.120 --> 0:08:24.360 that we realized that we you know, we have to 0:08:24.400 --> 0:08:28.440 continue to work on the relationship with our our employees, 0:08:28.440 --> 0:08:31.080 and we need to continue to provide the right benefits, 0:08:31.080 --> 0:08:33.720 and you know, we need to continue to work on safety, 0:08:33.760 --> 0:08:38.559 and that's our intention. My exclusive interview there with Amazon 0:08:38.600 --> 0:08:41.120 CEO Andy Jasse, you can catch the full interview at 0:08:41.120 --> 0:08:43.319 Bloomberg dot com. We're gonna have much more from the 0:08:43.360 --> 0:08:48.120 Bloomberg Tech Summit coming up. Jet fuel price hikes, flight cancelations, 0:08:48.160 --> 0:08:50.840 what does it all mean for summer travel? Will exped 0:08:51.040 --> 0:08:55.400 CEO Peter Kern has traveled here. He will join me next. 0:08:55.720 --> 0:09:10.040 This is Bloomberg welcome, Welcome back to the Bloomberg Technology 0:09:10.080 --> 0:09:13.360 Summit in San Francisco, where we are live from the 0:09:13.360 --> 0:09:16.760 City Club. Summer is here, But well all of your 0:09:16.800 --> 0:09:18.960 travel plans come off without a hitch. I'm joined out 0:09:18.960 --> 0:09:21.360 by Expedia CEO Peter Kerrent, who can help us answer 0:09:21.400 --> 0:09:24.080 that question. Thank you for flying on down here to 0:09:24.200 --> 0:09:27.439 join us today from Seattle. So, look, there were a 0:09:27.440 --> 0:09:31.360 ton of flight cancelations over Memorial Day weekend, jet fuel prices, 0:09:31.559 --> 0:09:36.000 pilot shortages, hotels struggling to get enough staff. How is 0:09:36.040 --> 0:09:38.080 all of this going to affect our summer travel plans 0:09:38.080 --> 0:09:41.400 because we've been dying to travel. Yeah, well, clearly everyone's 0:09:41.440 --> 0:09:44.319 going to travel somehow. I think there will be disruptions. 0:09:44.320 --> 0:09:47.080 I mean, we're seeing in Europe, we're seeing in the US. Obviously, 0:09:47.120 --> 0:09:49.880 the shortages of staff create a problem, and we'd love 0:09:49.880 --> 0:09:51.640 to see more planes in the air. We'd love to 0:09:51.679 --> 0:09:55.400 see hotels open to full capacity. But in the meantime, 0:09:55.440 --> 0:09:57.960 I think people are finding options wherever they go, sometimes 0:09:58.000 --> 0:10:02.320 vacation rentals, sometimes hotels. Uh, they're finding flights domestically if 0:10:02.320 --> 0:10:04.839 they can't find them internationally, and uh, you know, and 0:10:05.200 --> 0:10:07.400 we're seeing just about everything filling up. So I think 0:10:07.440 --> 0:10:10.240 it's going to be a busy time either way. But 0:10:10.320 --> 0:10:13.120 there will always be issues when you're traveling. Well, Delta 0:10:13.200 --> 0:10:17.680 just cut capacity for example, for the foreseeable future. How 0:10:17.679 --> 0:10:20.120 long does this go on for? Yeah, I don't know. 0:10:20.160 --> 0:10:22.000 I mean, with the talk that we see on your 0:10:22.000 --> 0:10:25.199 shows and all the shows about the you know, potential recession, 0:10:25.440 --> 0:10:27.640 the inflation issues, what the Fed is doing, I think 0:10:28.160 --> 0:10:30.719 it's obviously going to make some companies be more conservative 0:10:30.760 --> 0:10:33.200 about letting the rope out and getting more aggressive. You know, 0:10:33.240 --> 0:10:37.160 we were expecting increases in capacity in late summer for 0:10:37.200 --> 0:10:40.640 international travel. We'll see what happens there. So you know, 0:10:40.679 --> 0:10:44.160 we're hopeful. We we'd like to see the airlines expand 0:10:44.200 --> 0:10:47.120 we'd like to see hotels again open to capacity. But 0:10:47.600 --> 0:10:49.480 you know, I think a lot of CEOs I talked 0:10:49.480 --> 0:10:51.760 to will probably watch and wait, and we'll tend on 0:10:51.800 --> 0:10:55.560 the careful side, which will continue to constrain supply keep 0:10:55.600 --> 0:10:58.240 prices up, which is not great for the consumer. But 0:10:58.360 --> 0:11:01.120 you've all seen the prices up um and that looks 0:11:01.120 --> 0:11:03.000 like it's going to sustain itself for a while. So 0:11:03.080 --> 0:11:05.880 if Elon Musk has a super bad feeling about the economy. 0:11:06.160 --> 0:11:09.000 What is Peter Kerrent think, Well, I'm no elon Musk 0:11:09.160 --> 0:11:12.040 but uh and I definitely don't tweet about anything. But 0:11:12.640 --> 0:11:14.640 I would say, you know, from what we can see 0:11:14.679 --> 0:11:18.640 of the of the US market and the Western markets 0:11:18.679 --> 0:11:20.760 where you know, there's still markets where people can't travel 0:11:20.760 --> 0:11:23.760 in a pack and that's still going on, but there's 0:11:24.320 --> 0:11:27.360 tons of pent up demand. We've seen people wanting to 0:11:27.440 --> 0:11:30.200 rebound and overspend into travel. They were buying lots of 0:11:30.240 --> 0:11:32.600 stuff you had Andy on today, you know, they were 0:11:32.640 --> 0:11:35.959 buying a lot of stuff through COVID. They underspent travel 0:11:36.440 --> 0:11:38.400 and they saved a lot of money and we're seeing 0:11:38.400 --> 0:11:41.959 that rebound and that savings probably come into spending on travel. 0:11:42.280 --> 0:11:45.800 So that looks pretty robust for us when that runs 0:11:45.840 --> 0:11:47.920 out of gas and what you know, the how the 0:11:47.960 --> 0:11:51.240 economy lands, who knows. But as we say at our 0:11:51.240 --> 0:11:53.640 company that you know, we're in a multi trillion dollar market, 0:11:53.960 --> 0:11:56.319 we're tiny fraction of it, still as big as we are, 0:11:56.360 --> 0:11:58.240 so we got plenty of room to continue to grow 0:11:58.280 --> 0:12:00.400 regardless of the company. You and I last spoke around 0:12:00.440 --> 0:12:02.560 earnings about a month ago, and you said, well, maybe 0:12:02.720 --> 0:12:05.880 we'll see some rerouting from Paris to San Diego. How 0:12:06.000 --> 0:12:09.040 much of that is happening, You know, we haven't seen it. Again. 0:12:09.400 --> 0:12:12.200 You go to Paris, all the luxury hotails are completely 0:12:12.240 --> 0:12:15.160 sold out for the summer um. So we're not seeing 0:12:15.200 --> 0:12:17.719 a lot of rewriting down. Again, I think people have 0:12:17.840 --> 0:12:20.760 been planning for this big summer and they're you know, 0:12:20.800 --> 0:12:23.599 they're all booked way ahead and everything's booked up. I 0:12:23.720 --> 0:12:26.880 think as that rolls off, we don't know, but we're 0:12:26.920 --> 0:12:29.560 not seeing a lot of rewriting down to people looking 0:12:29.600 --> 0:12:32.839 for cheaper alternative. But could this potentially be delayed to 0:12:32.920 --> 0:12:37.480 the fall or holiday travel? And yeah, again no signs yet. 0:12:37.559 --> 0:12:40.280 There's no like magic date out in November where everything 0:12:40.320 --> 0:12:42.760 falls off a cliff. We're not seeing it in terms 0:12:42.840 --> 0:12:46.040 of booking ahead. But you know, we're not making any 0:12:46.080 --> 0:12:48.760 predictions either. Obviously there's a lot of noise in the market. 0:12:48.840 --> 0:12:52.079 There's gas prices and home prices, and we're mindful of that. 0:12:52.280 --> 0:12:55.040 But again that's where I think we'll see maybe adjustments 0:12:55.360 --> 0:12:58.040 to the demand and perhaps a d R start to 0:12:58.400 --> 0:13:01.160 come down, you know, prices on air and and uh 0:13:01.240 --> 0:13:05.040 and hotels, etcetera. But um, so far, there's no sign 0:13:05.080 --> 0:13:07.719 of easing on price, and there's no real sign that 0:13:07.800 --> 0:13:10.920 demand is shrinking. Well, speaking of pricing, you just added 0:13:10.960 --> 0:13:14.120 some new technology that enables customers to track prices to 0:13:14.200 --> 0:13:15.920 figure out when the best time is to fly. This 0:13:16.080 --> 0:13:19.079 is something that Google has been offering for a while. Hopper, 0:13:19.200 --> 0:13:21.559 you can get it there as well. You know, why, 0:13:21.640 --> 0:13:24.120 why should folks choose expedient? And in some cases, are 0:13:24.160 --> 0:13:27.319 you even discouraging people from from buying now if they no? No, 0:13:27.480 --> 0:13:29.520 what we're really trying to do is give people confidence. 0:13:29.559 --> 0:13:31.960 One of the biggest issues that consumers face when picking 0:13:32.000 --> 0:13:34.200 airline tickets is fear that they're picking the wrong thing 0:13:34.320 --> 0:13:35.760 at the wrong time. They're going to buy it too 0:13:35.800 --> 0:13:37.640 early and pay too much, or too late and pay 0:13:37.679 --> 0:13:40.160 too much. So we're trying to give them predictions. So 0:13:40.240 --> 0:13:41.760 because we have a lot of data, so we can 0:13:41.920 --> 0:13:44.080 show you what might happen to the price, and we're 0:13:44.120 --> 0:13:46.000 trying to give you tracking so if you if you're 0:13:46.040 --> 0:13:48.360 not ready to purchase, you don't feel like, oh my god, 0:13:48.400 --> 0:13:49.920 I have to make a decision. You can wait and 0:13:50.000 --> 0:13:51.840 track it and when you feel like it's the right time, 0:13:51.880 --> 0:13:54.120 you can do it. So what we're doing is really 0:13:54.200 --> 0:13:57.360 more than just tracking a single fight and a single price. 0:13:57.440 --> 0:14:00.320 We're tracking a whole route system across all their lines 0:14:00.360 --> 0:14:02.480 and saying, Okay, if you want to NonStop from San 0:14:02.520 --> 0:14:04.679 Francisco to New York and you check the price and 0:14:04.720 --> 0:14:06.839 you're not ready to buy, you can watch it and 0:14:07.000 --> 0:14:09.000 maybe in a week it moves down or up you'll 0:14:09.040 --> 0:14:11.480 make a choice. So airlines see it as an opportunity 0:14:11.520 --> 0:14:14.600 for us to give customers confidence to book, and that's 0:14:14.640 --> 0:14:16.000 what they want. So what does this all mean for 0:14:16.120 --> 0:14:19.080 Expedia's business? Obviously we've talked about the share price. Um, 0:14:19.280 --> 0:14:22.480 there's it's not just Expedia. What the shares are down. 0:14:23.080 --> 0:14:25.560 And you've got this uncertainty around the travel season coming 0:14:25.640 --> 0:14:30.000 up ahead, you know what's your Yeah, we don't think 0:14:30.000 --> 0:14:31.680 about it in short term. We think about in the 0:14:31.720 --> 0:14:33.400 long term, and we're not spending a lot of time, 0:14:33.440 --> 0:14:35.960 and we're obviously thinking about a potential recession, but we're 0:14:36.000 --> 0:14:38.600 not we're not planning for it or or valuing our 0:14:38.640 --> 0:14:41.200 business that way. We're doing the work to really upgrade 0:14:41.240 --> 0:14:43.520 the technology. We've talked about it a lot. We've changed, 0:14:43.560 --> 0:14:47.400 we're changing the whole stack. We're really innovating around customer experience, 0:14:47.520 --> 0:14:50.359 like flight tracking and other tools to shop more confidently, 0:14:50.840 --> 0:14:53.960 discover better products, find the right fit and match for you, 0:14:54.360 --> 0:14:56.120 which we don't think has really been in the travel 0:14:56.240 --> 0:14:59.800 sector for decades. So we're focused on that work and 0:15:00.040 --> 0:15:03.000 you think that's gonna unleash a ton of business for 0:15:03.560 --> 0:15:06.200 our supply partners, and focused on how that will help 0:15:06.200 --> 0:15:07.760 our B two B business. So there's a lot of 0:15:07.800 --> 0:15:09.840 opportunity and a lot to work on, and we're not 0:15:09.920 --> 0:15:11.800 worried about the rest. What are your summer travel plans? 0:15:11.800 --> 0:15:13.800 Any plans to live on v r b O Verbo 0:15:13.960 --> 0:15:17.640 excuse me? Planning to send big part of July working 0:15:17.680 --> 0:15:20.040 in London with our teams there and staying in the Verbo. 0:15:20.160 --> 0:15:22.960 So that's that's my summer so far. All right, Well, 0:15:23.080 --> 0:15:25.320 thank you for making the trip. Take a trip. I've 0:15:25.560 --> 0:15:29.640 got some plans which I will not share television Peter Current, 0:15:29.760 --> 0:15:32.480 CEO of Expedia, thank you. Good to have you here 0:15:32.520 --> 0:15:43.400 in person. Welcome back to Bloomberg Technology Live from our 0:15:43.440 --> 0:15:47.200 big tech summit in San Francisco. In the world of 0:15:47.480 --> 0:15:50.880 E t F, there are few as influential as Kathy 0:15:50.920 --> 0:15:54.000 would However, our investment management is suffering a steeper drop 0:15:54.080 --> 0:15:56.440 in assets than almost any other u s E t 0:15:56.640 --> 0:15:58.280 F this year, and of course Tesla a big one 0:15:58.320 --> 0:16:00.680 of their bets. She spoke exchools we with our very 0:16:00.720 --> 0:16:08.080 own ad Ludlow about why if you look at our performance, 0:16:08.120 --> 0:16:11.760 our flagships performance from the low and COVID to the 0:16:12.040 --> 0:16:17.880 peak in February twenty one, that was increase Innovation solves problems. 0:16:18.200 --> 0:16:20.960 We had a lot of problems through the coronavirus. Innovation 0:16:21.040 --> 0:16:26.200 solves problems. We were rewarded accordingly since then peak to trough. 0:16:26.280 --> 0:16:28.880 When we hit our trough, thank goodness, we're pasted it down. 0:16:30.520 --> 0:16:34.480 Why inflation and interest rates? So there is this and 0:16:34.600 --> 0:16:39.600 it's really interesting to be here um Walmart territory because 0:16:39.760 --> 0:16:41.680 I think we're learning a lot from the retailers now 0:16:41.800 --> 0:16:44.640 and we're talking about what we learned about infet yes 0:16:45.000 --> 0:16:50.280 uh so uh. The fear of rising interest rates uh 0:16:50.400 --> 0:16:54.760 and inflation out of control has grouped the market and 0:16:54.880 --> 0:16:57.360 of course, and that's the equity market. If you look 0:16:57.400 --> 0:17:00.240 at the fixed income market, it does not agree with this. 0:17:00.880 --> 0:17:03.400 The three year, I mean the ten year treasury bond. 0:17:03.480 --> 0:17:07.600 Deald is three that that instrument should be one of 0:17:07.680 --> 0:17:12.400 the most responsive to inflation fears. Right, so three which 0:17:12.480 --> 0:17:15.440 suggests GDP growth three to four percent during the next 0:17:15.520 --> 0:17:18.800 ten years. So it's not being corroborated by the fixed 0:17:18.840 --> 0:17:22.320 income markets. And I don't think, I don't think that 0:17:22.480 --> 0:17:26.240 we are in a period where we can't extricate ourselves 0:17:26.320 --> 0:17:29.800 from this. In fact, the inventory stories are a very 0:17:29.880 --> 0:17:34.200 good example of why, of why inflation has become a problem. 0:17:34.640 --> 0:17:37.720 You know, the scrambling to bring more and more inventory 0:17:37.800 --> 0:17:42.000 to satisfy demand, stay at home demand went into overdrive. 0:17:42.280 --> 0:17:46.159 And I believe the narrative in the last year inflation 0:17:47.119 --> 0:17:51.080 gave purchasing managers this idea that, Okay, what's the worst 0:17:51.200 --> 0:17:54.920 that could happen if I build inventories. The worst that 0:17:55.040 --> 0:17:58.880 could happen is that I'm able to deliver inventory profits 0:17:59.080 --> 0:18:01.960 sell at a higher ice. Well, that's not going to happen. 0:18:02.280 --> 0:18:04.640 That's not going to happen when we see I've never 0:18:04.720 --> 0:18:09.600 seen inventory um surges like this in my career, and 0:18:09.680 --> 0:18:14.160 I've been around for a long time. So UH at Walmart, 0:18:15.880 --> 0:18:23.760 at at Target, uh at at coal, so very broad based. 0:18:24.480 --> 0:18:25.960 Uh And so I think we're going to see a 0:18:26.000 --> 0:18:28.560 lot of discounting and this and what's beginning to happen 0:18:28.640 --> 0:18:31.320 now just at the margin, and we're seeing it because 0:18:31.400 --> 0:18:35.639 our strategy is now starting to outperform the rest of 0:18:35.760 --> 0:18:38.520 the market. I've never been in a market where the 0:18:38.640 --> 0:18:42.200 market has gone to new highs and we are hitting loads. 0:18:42.600 --> 0:18:45.399 I've never been in a market so there's been and 0:18:45.520 --> 0:18:47.840 it hasn't been supported by the fixed income market. So 0:18:48.000 --> 0:18:52.719 we'll see what happened. Kathy Wood there with our at 0:18:52.800 --> 0:18:56.480 Ludlow's CEO of Park Investment Management at the UP Summit 0:18:57.359 --> 0:19:08.440 in Bentonville, Arkansas. Welcome back to a special edition of 0:19:08.440 --> 0:19:11.280 Bloomberg Technology. I'm emily changing at the City Club of 0:19:11.600 --> 0:19:14.760 San Francisco for our Bloomberg Technology Smit, where You've had 0:19:14.760 --> 0:19:18.240 a host of special guests, including Uber CEO dar Causmashat, 0:19:18.240 --> 0:19:21.880 who spoke exclusively to my colleague Bradstone about the current 0:19:21.960 --> 0:19:25.280 economic climate and how it could impact Uber's business. Take 0:19:25.320 --> 0:19:30.440 a listen. We don't see any signal of a recession 0:19:30.520 --> 0:19:34.320 coming now. What's different about us than most companies out 0:19:34.359 --> 0:19:37.320 there is that, just as you saw during the pandemic, 0:19:37.600 --> 0:19:42.639 a shift from spend on services to spend on retail, 0:19:43.320 --> 0:19:46.720 that shift is now going back to services and we 0:19:46.840 --> 0:19:50.360 are the definition of a service right moving around travels back, 0:19:50.440 --> 0:19:53.760 et cetera. So I do think that our service is 0:19:53.880 --> 0:19:57.760 benefiting from the shift back. Certainly the reopening helps our 0:19:57.800 --> 0:20:02.359 mobility business or mobility businesses growing at very very high rates, 0:20:02.760 --> 0:20:05.960 highly profitable. The delivery business, delivery of everything at home, 0:20:06.480 --> 0:20:10.720 continues to be strong. Uh So at this point we 0:20:10.760 --> 0:20:15.160 don't see any signal whatsoever. We have gone through recessions 0:20:15.320 --> 0:20:18.760 in South America, Mexico and Brazil in the past, and 0:20:18.840 --> 0:20:21.080 what you see doing those recessions is that as a 0:20:21.200 --> 0:20:24.639 labor pool eases up, and certainly we don't see signs 0:20:24.680 --> 0:20:28.640 of that yet here or in in Europe. Uh. More 0:20:28.760 --> 0:20:31.720 drivers come onto the platform. Uh And as more drivers 0:20:31.800 --> 0:20:34.440 come onto the platform, the platform continues to grow, service 0:20:34.520 --> 0:20:38.800 levels get better. So I think versus many other companies, 0:20:39.520 --> 0:20:43.640 we don't have large large asset base. Our cost base 0:20:43.800 --> 0:20:50.040 essentially adjusts. In stronger economy, cost base increases as earners 0:20:50.160 --> 0:20:53.400 and drivers earned much more money, and weaker economies, as 0:20:53.440 --> 0:20:56.960 you get more drivers into the marketplace, their earnings adjust 0:20:57.040 --> 0:21:01.080 as well. So I think we are relatively were session resistant. 0:21:01.280 --> 0:21:04.520 If it happens, I certainly hope it doesn't happen right now. 0:21:04.600 --> 0:21:07.919 The signal on the street is things are really strong 0:21:08.359 --> 0:21:11.160 and the spend on services continues to be quite robot Okay, 0:21:11.280 --> 0:21:14.040 you said you'll treat hiring as a privilege and be 0:21:14.119 --> 0:21:17.680 delivered up about the pace, but you didn't mention potential layoffs. 0:21:17.760 --> 0:21:20.119 And I wonder because other companies and some of your 0:21:20.119 --> 0:21:23.360 competitors are having to consider it. How you feel about 0:21:23.400 --> 0:21:27.320 layoffs at uber um, we don't think they're necessary at all. Right. 0:21:27.440 --> 0:21:31.280 The perspective at uber is that in Q one, for example, 0:21:31.400 --> 0:21:33.240 if you look at our girl spokings, they're up thirty 0:21:33.359 --> 0:21:36.639 nine percent on a constant currency basis. Uh. We are 0:21:36.800 --> 0:21:40.840 one of those companies. While our delivery business benefited from 0:21:40.880 --> 0:21:45.520 the pandemic, our mobility business is absolutely benefiting from the reopening. 0:21:46.359 --> 0:21:49.080 We talked about guidance of twenty eight and a half 0:21:49.119 --> 0:21:51.440 to twenty nine and a half billion and growth bookings 0:21:51.520 --> 0:21:56.040 in the next quarter, profitability increasing two forty million to 0:21:56.080 --> 0:21:59.399