WEBVTT - Snap Shares Plunge and Tesla Layoffs Loom 0:00:01.400 --> 0:00:06.240 From Marhart where Innovation, Money and Power Collie in Silicon. 0:00:05.840 --> 0:00:06.720 Valley, NBN. 0:00:07.040 --> 0:00:11.080 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:24.800 --> 0:00:27.800 I'm Caroline Hyde at Bloomberg's world headquarters in New York, and. 0:00:27.680 --> 0:00:31.520 I'm Ed Ludlow in San Francisco. This is Bloomberg Technology. 0:00:31.080 --> 0:00:34.360 Coming up Snap plunges and fat by the most in 0:00:34.360 --> 0:00:37.000 the year after earning's disappointed in the company sites a 0:00:37.159 --> 0:00:40.479 challenging operating environment for the full year. We've got all 0:00:40.560 --> 0:00:41.720 the coverage ahead. 0:00:42.280 --> 0:00:45.720 Plus Tesla staff bracing for layoffs as managers are asked 0:00:45.960 --> 0:00:49.800 binary questions on whether their employees' roles are critical. 0:00:50.159 --> 0:00:51.239 Details ahead and. 0:00:51.360 --> 0:00:54.000 Uber earnings, well, that's showing robust demand for rides and 0:00:54.080 --> 0:00:56.760 delivery as gross bookings and pass estimates. I'm going to 0:00:56.800 --> 0:00:59.800 be sitting down with the Uber CEO, Darakos or Shaheb. 0:00:59.600 --> 0:01:02.280 A story are reported this morning with Bloomberg's DNA hole. 0:01:02.360 --> 0:01:07.319 Tesla has canceled or postponed performance reviews this week, and 0:01:07.360 --> 0:01:09.759 it's said to managers, look at everyone that works under 0:01:09.800 --> 0:01:11.800 you and tell us who is critical. 0:01:12.240 --> 0:01:13.399 And now there's a big worry. 0:01:13.440 --> 0:01:16.880 I'm told from sources internally that big layoffs are coming, 0:01:16.880 --> 0:01:18.280 and when we broke the story, there was a. 0:01:18.240 --> 0:01:20.080 Big spike hire in pre market. 0:01:20.280 --> 0:01:22.959 You can see we've kind of traded choppy throughout the session, 0:01:23.160 --> 0:01:26.720 but broadly that's positive to investors. Write Tesla's talked about 0:01:26.720 --> 0:01:30.200 looking at costs. They've done this before, using performance reviews 0:01:30.360 --> 0:01:32.400 as a way of pulling back in certain areas. We'll 0:01:32.400 --> 0:01:34.760 bring you the full data and details with done a 0:01:34.760 --> 0:01:36.880 hole later in the show. Back to the earning side 0:01:36.880 --> 0:01:40.400 of this story and their mixed fortunes depending on who 0:01:40.440 --> 0:01:42.560 you are. Uber's like slightly hired two ten to one 0:01:42.600 --> 0:01:46.560 percent strong earnings, strong outlook. It's a story about an 0:01:46.560 --> 0:01:49.800 app that is more diverse than its peers. New products 0:01:49.800 --> 0:01:52.320 are helping on the mobility side, and as you know, 0:01:52.360 --> 0:01:54.960 we're going to talk to the CEO, Dara Kostrashahi later 0:01:55.000 --> 0:01:57.960 in the program. Snap is the opposite, down thirty four percent, 0:01:57.960 --> 0:02:01.120 biggest drop since October twenty twenty two. Top line growth 0:02:01.160 --> 0:02:04.160 of five percent missed estimates. But on the bottom line, 0:02:04.280 --> 0:02:06.760 what was with all those job cuts and cost savings. 0:02:06.840 --> 0:02:09.280 If you're still on an adjusted EBIT. 0:02:08.960 --> 0:02:12.640 Basis saying you're losing fifty five to ninety five million dollars. 0:02:12.800 --> 0:02:16.160 There was growth in core Western markets, but those emerging 0:02:16.200 --> 0:02:18.920 markets that Snap's been so focused on, the growth is 0:02:18.919 --> 0:02:21.480 nowhere to be seen. So let's dive in deeper into 0:02:21.480 --> 0:02:25.440 Snap's earnings with Jasminemberg, Principal analysts and Insider Intelligence, where 0:02:25.480 --> 0:02:28.639 she leads coverage of social media and the creator economy. 0:02:28.840 --> 0:02:30.280 Your reaction to this Snap. 0:02:30.040 --> 0:02:37.119 Print look, investors are obviously unhappy, They're frustrated, they're losing confidence, 0:02:37.240 --> 0:02:40.760 and that makes sense, especially in the context of Metas 0:02:40.840 --> 0:02:42.200 blowout earnings. 0:02:41.840 --> 0:02:42.640 Just last week. 0:02:42.800 --> 0:02:45.600 But if you take out that context, it really wasn't 0:02:45.639 --> 0:02:49.119 all that terrible of a quarter for Snap by its standards. 0:02:49.440 --> 0:02:51.840 It's Q four revenue growth did come in at the 0:02:51.880 --> 0:02:55.200 higher end of its internal guidance, and its revenue growth 0:02:55.280 --> 0:02:58.040 for the full year was just about flat and what 0:02:58.080 --> 0:03:01.680 we were pretty much expecting here at Insider Intelligence. The 0:03:01.720 --> 0:03:04.800 problem for Snap, though, is that context is key, and 0:03:05.000 --> 0:03:08.760 investors are inevitably going to compare it to Meta, and 0:03:08.840 --> 0:03:11.360 what Snap is showing is that it just can't keep 0:03:11.480 --> 0:03:14.239 up pace with the big tech titans. 0:03:14.280 --> 0:03:19.040 Meta, Amazon as well showing such ad improvements. Is enough 0:03:19.120 --> 0:03:22.720 being done by Evanspiegel to turn around the ads in 0:03:22.760 --> 0:03:25.000 particular and basically prove themselves. 0:03:26.280 --> 0:03:29.160 Look, one of the things that's really working against Snap 0:03:29.200 --> 0:03:31.840 and all of this is its lack of scale in 0:03:31.880 --> 0:03:35.839 comparison to its rivals. Now, of course, Evan Spiegel said 0:03:35.880 --> 0:03:38.400 he is going to continue to try and grow the 0:03:38.480 --> 0:03:41.720 user base, but because of its small size, it is 0:03:41.960 --> 0:03:45.760 currently a less essential player for advertisers, which of course 0:03:45.800 --> 0:03:49.080 impacts ad demand, but it also makes it more challenging 0:03:49.160 --> 0:03:51.520 for it to be able to revamp its systems. It 0:03:51.560 --> 0:03:55.280 has less data and less signal to be able to 0:03:55.600 --> 0:03:57.120 work with in order to do this. 0:03:58.160 --> 0:04:01.880 When you basically have daily active users of four hundred 0:04:01.920 --> 0:04:06.040 and fourteen million, monthly active eight hundred million, do you 0:04:06.120 --> 0:04:09.520 just have to recategorize what Snap is and just be like, 0:04:09.680 --> 0:04:11.360 this is a nice, healthy company that's going to be 0:04:11.360 --> 0:04:14.760 boosting overall. It's its earnings and its revenue, but just 0:04:14.800 --> 0:04:16.960 not at a pace in any way comparison with the 0:04:17.000 --> 0:04:17.760 major players. 0:04:18.839 --> 0:04:19.039 Yeah. 0:04:19.120 --> 0:04:21.560 Look, we're in this environment where we're seeing the bigger 0:04:21.560 --> 0:04:25.039 players get bigger and the smaller players like Snap continue 0:04:25.040 --> 0:04:28.120 to struggle. Snap is never going to be a Facebook, 0:04:28.160 --> 0:04:30.400 it's never going to be an Instagram. But with that 0:04:30.480 --> 0:04:33.039 many users, there are a lot of people who really 0:04:33.080 --> 0:04:35.560 love the platform. I think one of the big problems, 0:04:35.560 --> 0:04:37.719 and we've talked about it here on the show before, 0:04:38.000 --> 0:04:41.120 is that its primary use case is still messaging. Now 0:04:41.160 --> 0:04:44.120 we heard again, of course that there is growth and 0:04:44.160 --> 0:04:47.640 more of its public facing social media like features, but 0:04:47.760 --> 0:04:50.000 really most people who are using it on a regular 0:04:50.040 --> 0:04:53.479 basis are doing so to message. One of the things 0:04:53.520 --> 0:04:56.520 that you know is really interesting is that all of 0:04:56.520 --> 0:04:58.719 this is also coming at a time where Snap is 0:04:58.760 --> 0:05:03.520 repositioning itself as this anti social media platform. And that 0:05:03.640 --> 0:05:05.839 makes sense in terms of all of the problems with 0:05:05.920 --> 0:05:10.640 social media, especially considering the testimony in Congress last week. 0:05:11.200 --> 0:05:13.400 But it's not really going to help its business. 0:05:14.800 --> 0:05:18.000 But like everyone else, Jasmine Real Quick, they're saying that 0:05:18.040 --> 0:05:20.719 the conflict in the Middle East is impacting their ad business. 0:05:20.800 --> 0:05:21.520 What do you make of that? 0:05:22.760 --> 0:05:25.680 It certainly was a headwind for Snap's ad business. I 0:05:25.760 --> 0:05:29.280 do think though, that that's emblematic of some of the large, larger, 0:05:29.400 --> 0:05:33.760 long standing fundamental challenges that Snap has. Its direct response 0:05:33.839 --> 0:05:36.960 ad platform, of course, is not as sophisticated. It's still 0:05:37.000 --> 0:05:40.960 making improvements on that, and brand advertisers that are spending 0:05:41.000 --> 0:05:44.440 really heavily, especially in Q four on Snap brands, of 0:05:44.440 --> 0:05:46.960 course are more risk averse. They're more likely to pull 0:05:47.080 --> 0:05:50.880 or pause their spend spending in times of conflict or crises, 0:05:51.200 --> 0:05:55.279 and without that direct response ad advertising platform and AD 0:05:55.320 --> 0:05:58.520 dollars to make up for that, it's probably more noticeable 0:05:58.640 --> 0:06:02.080 in snaps earnings. And then again there's the small size 0:06:02.320 --> 0:06:06.000 when advertisers are thinking about where to you know, cut spending, 0:06:06.200 --> 0:06:08.440 it's the smaller players that are going to go to first, 0:06:09.120 --> 0:06:09.880 Jasmine and Berg. 0:06:09.880 --> 0:06:11.960 It's always great to have your analysis across the show. 0:06:11.960 --> 0:06:14.800 Principal analyst and insider intelligence. 0:06:14.400 --> 0:06:17.720 Uber out with the results, reporting gross bookings that beat estimates, 0:06:17.920 --> 0:06:21.480 showing strong global demand for rides and food delivery during 0:06:21.520 --> 0:06:22.400 the holiday period. 0:06:22.480 --> 0:06:24.960 Joining us now Bloomberg's Emily. 0:06:24.760 --> 0:06:27.680 Chang and ubercio Dara Kasha Shahi for more on the 0:06:27.680 --> 0:06:28.279 strong numbers. 0:06:28.400 --> 0:06:31.080 M Ed, thank you, Dara, thank you as always for 0:06:31.200 --> 0:06:33.040 joining us. Look, it was a beat across the board, 0:06:33.080 --> 0:06:36.080 but the stock is down this morning, you know. Now 0:06:36.120 --> 0:06:38.920 the times are good. We saw trip growth really accelerated. 0:06:39.080 --> 0:06:40.360 Will that keep up? 0:06:40.400 --> 0:06:43.920 And how well? Our trip growth was super strong? Right? 0:06:43.960 --> 0:06:47.680 We grew trips twenty four percent on a year. On 0:06:47.760 --> 0:06:51.000 your basis on a base of two point six billion trips, 0:06:51.000 --> 0:06:55.480 so you know, as you get larger, it gets tougher 0:06:55.480 --> 0:06:57.360 to have that kind of growth. But if you look 0:06:57.440 --> 0:07:02.040 at our gross bookings guidance going forward, it's between eighteen 0:07:02.080 --> 0:07:05.040 and twenty three percent. So we do expect to continue 0:07:05.520 --> 0:07:09.360 to grow at very very strong rates while at the 0:07:09.400 --> 0:07:13.640 same time continuing to increase profitability and margins, which is 0:07:13.960 --> 0:07:16.360 the best of both worlds, which is what investors expect 0:07:16.360 --> 0:07:18.920 of us, and frankly it's what we know Uber can 0:07:18.920 --> 0:07:20.320 deliver well. 0:07:20.360 --> 0:07:23.200 Shares just turn positive, so investors are liking what you're saying. 0:07:23.240 --> 0:07:25.120 Let's talk about the other half of the business, and 0:07:25.120 --> 0:07:27.720 that is delivery. You had to raise some fees in 0:07:27.760 --> 0:07:30.840 some markets, you added multi store ordering. What more can 0:07:30.880 --> 0:07:33.440 you do in delivery to keep this up? 0:07:34.040 --> 0:07:37.240 Well, there's a ton going on in delivery. There's obviously 0:07:37.400 --> 0:07:42.360 the core online food delivery business. Overall, delivery grew seventeen 0:07:42.400 --> 0:07:44.880 percent on a year on your basis, and it's actually 0:07:44.920 --> 0:07:50.200 accelerating emily, right, So it's accelerating versus Q two versus 0:07:50.280 --> 0:07:53.640 Q three, and it is about getting the basics right. 0:07:53.680 --> 0:07:56.120 The first thing is customers want choice. 0:07:56.160 --> 0:08:00.320 We now have almost a million restaurants on our site 0:08:00.320 --> 0:08:02.800 on a global basis, up about ten percent. 0:08:03.200 --> 0:08:04.680 But they also want reliability. 0:08:04.760 --> 0:08:07.920 So when we measure the number of orders that we 0:08:08.000 --> 0:08:10.520 get wrong, the number of orders we get wrong are 0:08:10.600 --> 0:08:14.200 down twenty five percent on a year on your basis, 0:08:14.240 --> 0:08:17.679 So the business is reliable. You get what you expect 0:08:17.680 --> 0:08:22.120 as well. And what that's resulting in is our audience 0:08:22.320 --> 0:08:26.000 is growing. Frequency is growing as well, and then as 0:08:27.160 --> 0:08:30.320 eaters order more and more in a basket, actually basket 0:08:30.400 --> 0:08:33.360 size is growing. So the growth that we see in 0:08:33.440 --> 0:08:34.199 eats is. 0:08:34.520 --> 0:08:35.680 Very, very broad. 0:08:36.200 --> 0:08:38.880 We're adding to it grocery, which is a segment that 0:08:38.920 --> 0:08:42.040 we're very excited about. You know, the grocery business is 0:08:42.040 --> 0:08:44.320 actually bigger than the online food business than the food 0:08:44.360 --> 0:08:50.640 business in terms of total size. Our grocery business is 0:08:50.679 --> 0:08:53.960 still pretty young. It's about seven billion dollars now run 0:08:54.040 --> 0:08:57.400 rate growing over forty percent, and we're very excited to 0:08:57.559 --> 0:09:00.880 introduce the grocery experience to all of our eaters out there. 0:09:01.880 --> 0:09:04.120 Caroline just pointed out your stock just hit a new 0:09:04.120 --> 0:09:07.719 record high. I got to talk about the Super Bowl commercials. 0:09:07.880 --> 0:09:12.360 I'm obsessed. You've got Ross and Rachel, You've got the Beckhams. 0:09:13.240 --> 0:09:15.000 These big stars cost money. 0:09:14.760 --> 0:09:16.920 Though, and you had a lot of celebrities last year too, 0:09:17.000 --> 0:09:20.760 So is this marketing spend paying off? And are you 0:09:20.840 --> 0:09:23.040 sure because next year I'm expecting Taylor Swift. 0:09:24.240 --> 0:09:26.679 Well, you see it by the results. 0:09:26.679 --> 0:09:29.640 You know, these big stars they cost a lot, but 0:09:29.720 --> 0:09:32.559 they deliver a lot, right, And who's better than the 0:09:32.600 --> 0:09:38.000 Beckhams and Jennifer Aniston as well. You know, the amazing 0:09:38.000 --> 0:09:41.240 thing about these stars is you know, they're not afraid 0:09:41.280 --> 0:09:43.400 of making a little fun of themselves and having a 0:09:43.440 --> 0:09:46.880 sense of humor, but they also use their own social 0:09:46.920 --> 0:09:50.720 platforms to amplify the message out there. So it's not 0:09:51.000 --> 0:09:54.520 just about the commercial. It's about people talking about the commercials. 0:09:54.600 --> 0:09:58.120 It's about the stars using their Instagram accounts to amplify 0:09:58.520 --> 0:10:01.680 the platform, et cetera. That's why it's working out for us, 0:10:02.559 --> 0:10:05.200 and we think it's worth investment and then. 0:10:05.120 --> 0:10:09.199 More and Dara, many times, these are global celebrities you 0:10:09.320 --> 0:10:11.719 and a global company, even if the super Bowl is 0:10:11.720 --> 0:10:14.079 a little bit more US focused. How much you see 0:10:14.080 --> 0:10:17.400 in growth, particularly Latin America Asia standout. Are there any 0:10:17.400 --> 0:10:18.640 areas that you're worried about? 0:10:19.920 --> 0:10:24.560 Well, right now, fortunately, we're seeing growth across the globe 0:10:25.040 --> 0:10:29.160 for US in mobility, Latin America and Asia Pacific have 0:10:29.320 --> 0:10:34.480 really been standouts. The Latin business is growing, the base 0:10:34.559 --> 0:10:36.719 business is growing, but now a lat of time, what 0:10:36.800 --> 0:10:39.760 you're seeing is more two wheelers. Actually, it's a product 0:10:39.800 --> 0:10:43.280 we call Ubermoto. It's lower costs than much more affordable 0:10:43.520 --> 0:10:46.000 and so if you want a low cost ride in 0:10:46.240 --> 0:10:49.960 Brazil or Mexico, we're seeing more and more users take 0:10:50.000 --> 0:10:54.040 two wheelers. And in Asia, we're very, very excited about 0:10:54.080 --> 0:10:56.800 the Indian market. The Indian market has been one that 0:10:58.440 --> 0:11:02.160 has always held a lot of promise, but we're seeing 0:11:02.200 --> 0:11:05.160 that promise come to fruition now there it's not just 0:11:05.200 --> 0:11:08.280 four wheelers, but it's three wheelers. And the growth rates 0:11:08.520 --> 0:11:11.800 that we're seeing in India are substantial and we think 0:11:11.840 --> 0:11:15.120 that you know that business can continue to grow over 0:11:15.160 --> 0:11:15.760 the next. 0:11:15.520 --> 0:11:16.400 Five to ten years. 0:11:16.400 --> 0:11:19.559 So there's a lot of growth and excitement ahead in 0:11:19.600 --> 0:11:20.800 many of the markets out there. 0:11:20.880 --> 0:11:24.120 A global conversation with our global TV and radio audience, 0:11:24.200 --> 0:11:26.880 we are of course speaking with Uber CEO Dara Kosashahi 0:11:26.960 --> 0:11:29.080 and Dara I hate to be the Debbie downer that 0:11:29.120 --> 0:11:32.520 focuses on the one area of perhaps lackluss and performance, 0:11:32.559 --> 0:11:34.719 but freight tell us a little bit about it was 0:11:34.760 --> 0:11:36.600 in line with where the market wanted to see it, 0:11:36.720 --> 0:11:38.439 but it is still a bit of a drag. When'd 0:11:38.440 --> 0:11:39.360 you see the turnaround? 0:11:40.280 --> 0:11:44.040 Well, the freight business is a cyclical business, and what 0:11:44.120 --> 0:11:48.400 we are seeing is at least a stabilization of the 0:11:48.440 --> 0:11:51.360 overall freight industry. There was too much supply out there, 0:11:51.440 --> 0:11:55.040 demand wasn't growing. We're seeing a stabilization and rates. We're 0:11:55.040 --> 0:11:57.600 seeing spot rates improve as well, so I think that's 0:11:57.640 --> 0:12:00.760 an early signal that the freight marketplace is going to improve. 0:12:01.240 --> 0:12:03.839 And what's really cool about Uber Freight is that we 0:12:03.880 --> 0:12:09.280 are using our marketplace technology, matching, pricing, etc. And bringing 0:12:09.320 --> 0:12:12.240 it to the freight industry. So we're very confident that 0:12:12.280 --> 0:12:14.520 a turn is coming. We don't know what when, but 0:12:14.559 --> 0:12:17.960 we're definitely seeing signal of that turn, and we can 0:12:18.040 --> 0:12:24.800 bring our technology, prowess and the service levels that other 0:12:24.920 --> 0:12:28.000 players who are just offline really we believe can't match. 0:12:28.040 --> 0:12:30.640 So we're quite optimistic about freight, but it's a little 0:12:30.640 --> 0:12:33.280 bit of a waiting game to see that cycle turn, 0:12:33.600 --> 0:12:36.880 and we're hoping to see that cycle turn this year. 0:12:37.960 --> 0:12:40.319 Dara, good morning, I think we kind of learned a 0:12:40.360 --> 0:12:43.520 lot about Uber the technology company in the court have 0:12:43.640 --> 0:12:48.080 just gone new products and just more diverse offering on mobility. 0:12:48.920 --> 0:12:50.840 But there are lots of questions about, well, what is 0:12:50.840 --> 0:12:54.040 the new product pipeline going forward? You know, how can 0:12:54.080 --> 0:12:58.000 you keep adding functionality to the platform that is new, 0:12:58.160 --> 0:13:01.880 opens new addressable markets. Car rental is interesting, right, because 0:13:01.920 --> 0:13:04.839 that's an Industryalen's suffering some pain. 0:13:04.960 --> 0:13:09.760 Yeah, well, I think it's car rentals is one area 0:13:09.800 --> 0:13:11.840 that we're pretty excited about. And what we try to 0:13:11.880 --> 0:13:15.280 do with Uber is we don't want to just build 0:13:15.280 --> 0:13:17.839 the same thing that others have built, but let's say 0:13:17.960 --> 0:13:21.600 a little bit better. We really try to reinvent how 0:13:21.640 --> 0:13:24.480 you think about a particular product. So one product that 0:13:24.480 --> 0:13:26.920 we're pretty excited about with car rentals is actually what 0:13:26.960 --> 0:13:30.800 we call Uber Valet. And with this product, you know, 0:13:30.840 --> 0:13:33.120 you push a button, you get to pick your car, 0:13:33.559 --> 0:13:35.000 but then an Uber. 0:13:34.840 --> 0:13:37.679 Driver will come and drop off. 0:13:37.480 --> 0:13:40.360 That car for you in front of your house or 0:13:40.360 --> 0:13:42.880 wherever you want that car dropped off. So we want 0:13:42.880 --> 0:13:47.480 to bring that little Uber delight in whatever experiences that 0:13:47.520 --> 0:13:51.320 we build so that we're heads and shoulders above our competition. 0:13:51.440 --> 0:13:52.040 So to speak. 0:13:52.240 --> 0:13:54.520 Now we do it in partnership with car rental companies, 0:13:54.559 --> 0:13:57.480 so it's good business for them. But it's the magic 0:13:57.520 --> 0:13:59.720 of Uber that we want to introduce in every single 0:14:00.400 --> 0:14:03.200 out there, and we think there's plenty of innovation ahead 0:14:03.200 --> 0:14:03.520 for us. 0:14:04.480 --> 0:14:07.240 Yeah, I'm somebody that takes right share. There are other 0:14:07.280 --> 0:14:10.880 right share platforms available to work every morning. But there 0:14:10.880 --> 0:14:13.280 seems to be some evidence that that corporate ridership is 0:14:13.320 --> 0:14:15.880 coming back. Where do you see that most. 0:14:16.320 --> 0:14:20.040 Yeah, corporate has actually been a great signal for us 0:14:20.400 --> 0:14:23.120 early this year, last year if you looked at corporate 0:14:23.200 --> 0:14:26.440 and we have a very significant corporate presence and what 0:14:26.520 --> 0:14:29.520 we call Uber for business and it allows companies instead 0:14:29.520 --> 0:14:32.240 of you know, black cars, et cetera, they can use Uber. 0:14:32.440 --> 0:14:37.520 It's connected into the corporate expense systems, et cetera. There's 0:14:37.560 --> 0:14:39.480 an area of safety, which is you know exactly where 0:14:39.520 --> 0:14:40.280 your employees are. 0:14:40.280 --> 0:14:43.000 So it's been a very very popular offering for us. 0:14:43.440 --> 0:14:46.920 And last year, you know, as corporates were more careful 0:14:46.960 --> 0:14:50.440 in terms of their spending travel, et cetera, the spending 0:14:50.600 --> 0:14:54.480 with you for B was muted. We are now seeing, 0:14:54.760 --> 0:14:57.920 especially in Q four and so far in the first 0:14:58.000 --> 0:15:02.160 quarter companies are starting to leaning in again. They're starting 0:15:02.200 --> 0:15:05.880 to invest, they're getting their employees out to go out 0:15:05.880 --> 0:15:09.320 to meet customers face to face, and that absolutely is 0:15:09.360 --> 0:15:12.800 helping our you for B business that's starting to accelerate. 0:15:13.440 --> 0:15:16.320 It's high margin business. Usually with you for B you. 0:15:16.280 --> 0:15:19.320 Know, you take a comfort car or black car, so 0:15:19.400 --> 0:15:22.120 it's high margin businesses as well. And we're very very 0:15:22.160 --> 0:15:24.440 happy with the signal that we're seeing, and that signal 0:15:24.520 --> 0:15:28.760 is pretty broad. It's not just the US phenomenon. We're 0:15:28.760 --> 0:15:32.240 seeing companies around the globe starting to invest again, which 0:15:32.240 --> 0:15:33.280 we think is a great sign. 0:15:34.920 --> 0:15:35.640 I want to talk. 0:15:35.520 --> 0:15:39.080 About evs because there's you know, reports, consumer demand is following. 0:15:39.120 --> 0:15:42.240 You're seeing big automakers pulling back, your own rental partner 0:15:42.720 --> 0:15:45.520 hurts also putting back, pulling back. How much is this 0:15:45.600 --> 0:15:49.320 hurting your partnership. You're pushed to zero emissions and everything 0:15:49.360 --> 0:15:53.040 you're doing to try to incentivize drivers to switch over. 0:15:54.200 --> 0:15:57.040 Well, Emily, we're continuing to push on the EV space. 0:15:57.640 --> 0:15:59.960 No one said this was going to be easy. And listen, 0:16:00.040 --> 0:16:03.680 with every technology, there's this initial excitement and everyone gets 0:16:03.680 --> 0:16:07.560 on board and maybe maybe people overestimate the potential of 0:16:07.560 --> 0:16:10.040 a business or how it is going to be. You know, 0:16:10.600 --> 0:16:12.600 we've been around a uber for a while and we 0:16:12.760 --> 0:16:17.120 actually love solving tough problems, so we continue to lean 0:16:17.160 --> 0:16:20.200 in with evs. We now have over one hundred and 0:16:20.240 --> 0:16:25.560 twenty thousand drivers driving evs all over the world. Over 0:16:25.560 --> 0:16:28.840 the past years, we completed more than three hundred million 0:16:28.880 --> 0:16:33.640 trips in terms of evs, So we continue to lean in. 0:16:34.120 --> 0:16:39.160 I think a real concern is with charging infrastructure and 0:16:39.240 --> 0:16:42.960 making sure that that charging infrastructure is available and ready, 0:16:43.400 --> 0:16:46.400 especially where our drivers need. It may not be in 0:16:46.400 --> 0:16:47.880 the center of the city, but it may be in 0:16:47.920 --> 0:16:48.520 the towns that. 0:16:48.480 --> 0:16:50.120 They live, et cetera. 0:16:50.440 --> 0:16:54.160 So if the charging infrastructure comes comes in, we think 0:16:54.200 --> 0:16:57.240 we have the partnerships in place. We're putting real money 0:16:57.320 --> 0:17:02.000 nine hundred million dollars behind our push to evs, including 0:17:02.760 --> 0:17:06.880 subsidizing rides so drivers actually make more on an EV trip. 0:17:06.920 --> 0:17:09.959 So we're determined and we think we're going to keep 0:17:10.000 --> 0:17:11.399 pushing the momentum in this space. 0:17:12.960 --> 0:17:15.359 You're shutting down Drizzly, you're laying off one hundred and 0:17:15.400 --> 0:17:16.200 fifty people. 0:17:16.560 --> 0:17:17.600 What happened there? 0:17:17.920 --> 0:17:20.440 Did alcohol sales just decline post pandemic? 0:17:20.440 --> 0:17:20.919 Don't you know? 0:17:20.960 --> 0:17:22.280 There's a super Bowl coming. 0:17:22.119 --> 0:17:25.359 Up, so it's you know, listen. 0:17:25.400 --> 0:17:27.960 It was a tough decision there, and what we have 0:17:28.160 --> 0:17:31.080 observed is that the Uber Eats platform. 0:17:31.200 --> 0:17:33.480 We talk about the power of the platform, which is, you. 0:17:33.400 --> 0:17:35.919 Know, you ride on Uber, you eat on Uber, you 0:17:35.960 --> 0:17:40.000 get growceries on Uber, you order your alcohol on Uber eats. 0:17:40.560 --> 0:17:44.040 The power of that platform is really significant. And you know, 0:17:44.160 --> 0:17:47.800 things have changed where companies have to be more disciplined 0:17:47.800 --> 0:17:50.600 in their investments. And when we look at a marketing investment, 0:17:50.640 --> 0:17:53.840 should we put the next marketing dollar behind Uber eats 0:17:53.920 --> 0:17:56.600 ie a super Bowl commercial, or should we put that 0:17:56.640 --> 0:18:01.320 next marketing dollar to introduce the Drizzly brand and to consumers, 0:18:01.800 --> 0:18:04.840 it didn't make sense to keep investing in Drizzly, So 0:18:05.160 --> 0:18:08.480 we've taken a lot of what we've learned from Drizzly, 0:18:09.040 --> 0:18:14.240 many of the merchant relationships, et cetera. But essentially that 0:18:14.359 --> 0:18:18.640 business is shutting down in terms of that organic Drizzly business, 0:18:19.040 --> 0:18:22.919 and we are building on alcohol within Uber eats. We 0:18:22.960 --> 0:18:25.960 think that's the next best investment going forward for. 0:18:26.000 --> 0:18:28.200 Us as a company cost discipline. 0:18:28.520 --> 0:18:31.240 Uber CEO Darakrososhahi, I joyed to have you on the show. 0:18:31.280 --> 0:18:33.879 Thank you, and of course are thanks to you. Emily 0:18:33.960 --> 0:18:38.720 Chang now coming up. The head of Byte dances China 0:18:38.800 --> 0:18:40.040 operations stepping down. 0:18:40.680 --> 0:18:41.960 More news coming out of China. 0:18:41.960 --> 0:18:52.640 More broadly, this is a blue meg technology time now 0:18:52.760 --> 0:18:55.520 for talking tech. First up t SMC, the world's biggest 0:18:55.600 --> 0:18:58.680 chip contract manufacturer and supplier to the likes of Apple 0:18:58.720 --> 0:19:02.000 and Nvidio. Just January, sales rise after strong demand for 0:19:02.040 --> 0:19:04.760 AI chips, and it helped off set the continued weakness 0:19:04.760 --> 0:19:07.960 and consumer electronics products. Now revenue rose almost eight percent 0:19:08.040 --> 0:19:10.399 last month six point nine billion dollars. The growth is 0:19:10.440 --> 0:19:12.919 the later sign that a sector rebound could be on 0:19:12.960 --> 0:19:17.280 the horizon. Meanwhile, the head of Byte Dancer's China operations 0:19:17.359 --> 0:19:19.960 is stepping down, just a week after the CEO, Liang 0:19:20.040 --> 0:19:23.960 Rubo said that the company needs to avoid complacency and 0:19:24.000 --> 0:19:26.879 make up lost ground in the AI race. According to sources, 0:19:26.880 --> 0:19:29.720 Byte Dance will not seek to appoint a successor and 0:19:29.880 --> 0:19:33.080 Zang will shift her focus to the video editing app 0:19:33.280 --> 0:19:37.040 cap cut and then Ali Baba reported lower than expected 0:19:37.040 --> 0:19:39.920 sales wellied down by a weaker performance and its core 0:19:40.000 --> 0:19:43.560 domestic e commerce business from the company also approved, though 0:19:43.600 --> 0:19:46.520 an increase of twenty five billion dollars to its share 0:19:46.640 --> 0:19:49.879 re purchase program, and of course this is desperately trying 0:19:49.880 --> 0:19:53.080 to add sort of build up investor confidence when they 0:19:53.119 --> 0:19:54.480 can't do it with the proof of the pudding of 0:19:54.520 --> 0:19:57.320 revenue increases that the market wanted to see. They therefore 0:19:57.359 --> 0:19:59.840 have some of the big executive's buying shares and also 0:19:59.880 --> 0:20:01.160 a being buy back to announce. 0:20:01.880 --> 0:20:02.080 Yeah. 0:20:02.160 --> 0:20:04.880 I always think about Ali Barber as the nearest thing 0:20:04.920 --> 0:20:06.160 to Amazon in China. 0:20:06.280 --> 0:20:06.440 Right. 0:20:06.560 --> 0:20:09.800 It has a similar story e commerce and cloud. The 0:20:09.840 --> 0:20:12.280 cloud's not growing, and they're doing all they can to 0:20:12.359 --> 0:20:16.080 kind of sweeten things for investors the divvy or whatever, buybacks, whatever, 0:20:16.240 --> 0:20:19.359 and the prospect of spinning off other units. But it 0:20:19.480 --> 0:20:21.920 just comes back to the core business in China's economy. 0:20:22.040 --> 0:20:24.119 And isn't it just what you're hearing from byte Edance 0:20:24.160 --> 0:20:27.560 trying to not have complacency focusing in on particularly AI 0:20:27.680 --> 0:20:30.159 as well. That's exactly where Ali Barba perhaps has been 0:20:30.160 --> 0:20:32.800 falling behind. They've had issues, of course getting in video 0:20:32.840 --> 0:20:33.800 products as well. 0:20:34.040 --> 0:20:35.280 And this while they're also. 0:20:35.080 --> 0:20:38.520 Trying to fend off deep competition abroad and internally of 0:20:38.600 --> 0:20:40.600 e commerce. I mean, they don't look like they're going 0:20:40.640 --> 0:20:43.360 to sackfice profitability though, that's one key analyst takeaway. 0:20:43.680 --> 0:20:45.600 Yeah, and one of the cool things about ADRs or 0:20:45.720 --> 0:20:49.080 US listed shares is it gives different market exposures to 0:20:49.080 --> 0:20:51.399