WEBVTT - Apple Co-Founder on AI and Uber CEO on Earnings 0:00:01.440 --> 0:00:06.720 From Bahard where Innovation, Money and power Collie in Silicon Valley, NBN. 0:00:07.080 --> 0:00:11.080 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:24.400 --> 0:00:26.960 I'm Caroline Hyde and Bloomberg's world headquarters in New York 0:00:27.320 --> 0:00:28.920 and our Meed Ludlow in San Francisco. 0:00:29.120 --> 0:00:31.320 This is Bloomberg Technology. 0:00:30.960 --> 0:00:35.560 Coming up the reality of artificial intelligence. It's disruption, hits hiring, 0:00:35.600 --> 0:00:37.800 it hits business models and more. We're going to discuss 0:00:37.840 --> 0:00:40.800 it all with Apple co founder Steve Wozniak later. 0:00:40.680 --> 0:00:43.760 This hour, and we'll sit down with the CEO of 0:00:43.920 --> 0:00:46.640 Uber as the right sharing company post solid earnings on 0:00:46.680 --> 0:00:48.800 strong demand for rides and deliveries. 0:00:48.920 --> 0:00:51.040 Plus we'll speak with the CEO of so Far I 0:00:51.120 --> 0:00:54.040 mean the banking system termil is the personal finance company 0:00:54.040 --> 0:00:57.320 partners with travel john Expedia to create a rewards program 0:00:57.360 --> 0:00:58.160 for its customers. 0:00:58.720 --> 0:01:01.080 The main earnings mover is certainly Uber. We're looking at 0:01:01.080 --> 0:01:04.039 the biggest jumps into around November. You look at asedy 0:01:04.120 --> 0:01:07.000 bit DAR outperforming in the quarter, gong strong outlook for 0:01:07.040 --> 0:01:10.720 adjusted ebit DAR in the second quarter, gross booking slightly 0:01:10.760 --> 0:01:14.280 below estimates, but their strength in riding and strength in delivery, 0:01:14.280 --> 0:01:16.840 and we will get into that Emily later in the show. 0:01:17.040 --> 0:01:20.080 Lift modesty higher had been lower on some of the 0:01:20.080 --> 0:01:22.800 outperformance by Uber because of course they're so closely linked 0:01:22.800 --> 0:01:23.880 as market competitors. 0:01:24.640 --> 0:01:27.120 Let's just for a moment, Ed, though, talk about one 0:01:27.160 --> 0:01:29.759 particular company that you didn't mention in the micro. We're 0:01:29.760 --> 0:01:32.080 going to talk about chat GPT. How is up ending 0:01:32.120 --> 0:01:35.080 the ed tech industry seems to be a concern in 0:01:35.120 --> 0:01:39.559 particular for Check, absolute extraordinary move for this online education company, 0:01:39.600 --> 0:01:42.039 down more than fifty percent at one point. It's following 0:01:42.040 --> 0:01:45.680 the company warning that chatbot tool is really threatening its 0:01:45.720 --> 0:01:49.080 homework health services. Check CEO says they've noticed a quote 0:01:49.120 --> 0:01:53.360 significant spike in student interest in chatchbt since March, which 0:01:53.400 --> 0:01:57.200 is impacting their new customer growth rate. So what does 0:01:57.320 --> 0:02:00.320 AI and education look like going forward? But how do 0:02:00.360 --> 0:02:03.040 they harness each other? How does upend each other? And 0:02:03.120 --> 0:02:05.440 stick into the impact of generative AI in particular on 0:02:05.760 --> 0:02:06.440 ed tech space. 0:02:06.520 --> 0:02:07.640 How do you putovies with us? 0:02:07.640 --> 0:02:09.960 His CEO of co dot August, an ed tech nonprofit 0:02:10.320 --> 0:02:13.840 which just launched teach ai along with karn Academy, the 0:02:13.840 --> 0:02:16.640 World Economic Forum and others. Teach ai is look an 0:02:16.720 --> 0:02:21.920 initiative dedicated to helping educators teach with AI about AI, 0:02:22.639 --> 0:02:26.280 but HARDI how much already is AI teaching kids instead 0:02:26.280 --> 0:02:26.840 of teachers? 0:02:27.560 --> 0:02:29.919 I don't know by the AI teaching kids instead of teachers. 0:02:29.919 --> 0:02:34.079 But what every parent, every school student, and teacher recognize 0:02:34.160 --> 0:02:36.760 is that since the moment that chat GBT in these 0:02:36.840 --> 0:02:39.880 chatbots came out, kids are wondering can I use this 0:02:39.919 --> 0:02:42.440 for homework? Teachers are wondering how do I need to 0:02:42.480 --> 0:02:45.640 adjust my classroom now that this technology is out there? 0:02:46.040 --> 0:02:47.840 And you know, one of the best questions when I 0:02:47.880 --> 0:02:49.959 show this to my kids, he also asked, am I 0:02:50.000 --> 0:02:52.079 allowed to use this for school? But then he also asked, 0:02:52.280 --> 0:02:54.160 what's the point of school if this can do all 0:02:54.200 --> 0:02:55.480 this stuff well perposely? 0:02:55.760 --> 0:02:56.000 Right? 0:02:56.320 --> 0:02:59.920 And so these are questions that nobody has firm answers to. 0:03:00.360 --> 0:03:03.519 And part of the issue is that the technology creators 0:03:03.960 --> 0:03:06.360 aren't saying how schools should be using it, and school 0:03:06.400 --> 0:03:09.360 leaders are just receiving this technology is coming out, wondering 0:03:09.400 --> 0:03:11.800 how do we react and it's moving so fast. The 0:03:11.840 --> 0:03:15.320 goal of teach AI is to bring together tech leaders 0:03:15.360 --> 0:03:19.760 such as OpenAI, Microsoft and Amazon who are creating these technologies, 0:03:20.160 --> 0:03:24.120 together with education leaders such as code dot Org, con Academy, 0:03:24.200 --> 0:03:27.720 the College Board, and then global education leaders all across 0:03:27.840 --> 0:03:31.120 this country and all six continents to answer these questions 0:03:31.120 --> 0:03:34.000 about how should education evolve for an age of AI? 0:03:35.120 --> 0:03:38.120 I mean, will this erode many a business model you're 0:03:38.280 --> 0:03:42.240 currently looking at incorporating AI curriculum, you say, and tools 0:03:42.280 --> 0:03:44.160 into your platform to reach one hundred and fifty million 0:03:44.200 --> 0:03:48.320 students by twenty thirty. But what is education prophesied for us? 0:03:48.360 --> 0:03:50.960 What is education going to look like by twenty thirty? 0:03:51.000 --> 0:03:52.920 Will they really be using online tools? 0:03:53.760 --> 0:03:56.200 Well, one thing I could say is the current education 0:03:56.320 --> 0:03:59.280 system we use, where students spend most of their time 0:03:59.360 --> 0:04:01.320 reading in books and sort of filling their heads with 0:04:01.400 --> 0:04:05.000 knowledge from books, was designed based on the invention the 0:04:05.040 --> 0:04:08.280 printing press six hundred years ago, and so we need 0:04:08.320 --> 0:04:10.640 to rethink how we do education in a time when 0:04:10.680 --> 0:04:14.560 information is available at your fingertips and AI can synthesize 0:04:15.280 --> 0:04:19.039 and create for you. And so our goal isn't just 0:04:19.080 --> 0:04:21.200 to get students who know how to memorize a lot 0:04:21.200 --> 0:04:25.479 of information and practice repetitive road tasks, but helping students 0:04:25.520 --> 0:04:29.960 become creators and problem solvers using AI as a superpower. 0:04:30.080 --> 0:04:33.960 Yeah, are you on the side that AI augments rather 0:04:34.000 --> 0:04:37.000 than competes again or are you already thinking, wow, education 0:04:37.080 --> 0:04:38.800 is going to have to so pivot because the job 0:04:38.839 --> 0:04:40.560 market is going to so have to pivot. 0:04:41.200 --> 0:04:45.040 I think both of those are true. AI absolutely augments, 0:04:45.360 --> 0:04:47.480 but we need to teach students not just the skills 0:04:47.480 --> 0:04:49.360 of the past, but also the skills of the future. 0:04:49.680 --> 0:04:53.560 Every workplace is asking its workers figure out how this 0:04:53.600 --> 0:04:56.960 can make you more productive, whereas today many schools are 0:04:56.960 --> 0:05:00.800 banning AI because it's considered cheating. The heating that people 0:05:00.839 --> 0:05:03.800 are trying to stop in schools is what employers want 0:05:03.800 --> 0:05:05.960 their employees to do. They're like, oh, if this makes 0:05:05.960 --> 0:05:09.200 you work faster, please do it. If it reduces the 0:05:09.200 --> 0:05:11.040 time spent on any kind of task. 0:05:12.160 --> 0:05:14.520 Howdey does code to org Good morning. By the way, 0:05:14.560 --> 0:05:18.880 have any sort of granular insight into how students, either 0:05:18.920 --> 0:05:21.679 at the high school level or college level are actually 0:05:21.800 --> 0:05:23.760 using generatord AI tools. 0:05:25.400 --> 0:05:28.039 How they're using it. It's much broader than what code 0:05:28.080 --> 0:05:30.920 dot org sees. And honestly, the best way to see 0:05:30.920 --> 0:05:34.280 that is what is listening to parents, students, and teachers, 0:05:35.080 --> 0:05:38.400 and it's much more anecdotal. You know, as one example, 0:05:38.920 --> 0:05:41.360 my neighbor's daughter just got an f on a homework 0:05:41.400 --> 0:05:44.200 assignment because the teacher accused her of using chat GPT, 0:05:44.720 --> 0:05:47.320 and she's insisting I didn't use it, I wrote it myself. 0:05:47.800 --> 0:05:50.200 And that's a kind of story that's happening all around 0:05:50.200 --> 0:05:53.479 the world. It's not easy to keep track of because, 0:05:54.200 --> 0:05:56.080 first of all, students when they use these tools, they 0:05:56.160 --> 0:05:58.440 use them at home, and they also know to change 0:05:58.520 --> 0:06:01.599 up the writing and to personalize it as well. But 0:06:01.680 --> 0:06:03.640 the real issue we need to talk about is not 0:06:03.680 --> 0:06:06.880 to view using of new technology as cheating, but to 0:06:06.880 --> 0:06:09.279 figure out how do we move the goalposts of education. 0:06:09.760 --> 0:06:14.240 How do we teach creativity, communication skills, problem solving skills, 0:06:14.279 --> 0:06:18.279 and technological fluency so students learn the stuff that we 0:06:18.320 --> 0:06:20.760 want them to learn, including how to use these tools 0:06:20.960 --> 0:06:22.000 to be more productive. 0:06:22.920 --> 0:06:26.680 So, in Cheke's case, their shares are plunging because they 0:06:26.760 --> 0:06:31.600 gave evidence that their offering is being displaced by chat GBT. 0:06:31.720 --> 0:06:35.039 It's a free service principally that anyone can access as 0:06:35.080 --> 0:06:38.040 long as they get past the wait list. Is that 0:06:38.080 --> 0:06:42.480 what you're seeing that generative AI tools are displacing traditional 0:06:42.560 --> 0:06:44.440 online education tools. 0:06:45.120 --> 0:06:48.920 What's definitely true is that tools like chat GPT can 0:06:48.920 --> 0:06:51.279 help a students do almost all of what their current 0:06:51.640 --> 0:06:55.680 homework looks like today. And so once that's out there, 0:06:56.160 --> 0:06:58.760 students wonder, can I use this for my homework? And 0:06:58.880 --> 0:07:02.080 of course teachers classroom schools wonder, how do we change 0:07:02.080 --> 0:07:04.839 what homework is? Because what's the point if a student 0:07:04.920 --> 0:07:07.000 just plugs it in and gets an answer and doesn't 0:07:07.000 --> 0:07:09.840 actually use their heads and their brains very much. And 0:07:09.880 --> 0:07:13.560 so there's going to be great disruption within education technology 0:07:13.880 --> 0:07:17.000 and also in classrooms as we rethink not only the 0:07:17.000 --> 0:07:20.040 tools for education, but even how teaching has done and 0:07:20.080 --> 0:07:21.320 even the purpose of education. 0:07:21.760 --> 0:07:24.280 You've been in the for profit side, studying your career 0:07:24.280 --> 0:07:26.800 at Microsoft and other tech giants, and then when you're 0:07:26.840 --> 0:07:29.880 now in a nonprofit focus, how much are you talking 0:07:29.920 --> 0:07:30.560 with government? 0:07:30.760 --> 0:07:33.600 How much are you thinking about the ethical. 0:07:33.160 --> 0:07:36.960 Repercussions of where artificial intelligence is leading us, whether it 0:07:37.000 --> 0:07:40.080 be from children, whether it be more broadly about the 0:07:40.080 --> 0:07:42.720 way in which we use it as humankind and what 0:07:42.800 --> 0:07:44.200 it ultimately means. 0:07:43.920 --> 0:07:45.200 For all of us in our productivity. 0:07:45.400 --> 0:07:47.800 That is a fantastic question. It's the purpose of what 0:07:47.840 --> 0:07:51.120 we're announcing today with Teachai, which is to bring together 0:07:51.960 --> 0:07:56.560 for profit and private corporate leaders basically the technology creators 0:07:56.920 --> 0:07:59.720 with the education leaders, many of which are basically governments, 0:08:00.120 --> 0:08:02.840 to have this dialogue to figure out how to safely 0:08:02.880 --> 0:08:05.160 and ethically and equitably into rad AI And I'm not 0:08:05.160 --> 0:08:05.440 put it. 0:08:05.400 --> 0:08:07.520 Back in its boxing. You don't think we should slow down? 0:08:07.640 --> 0:08:10.920 Yeah, there's two extremes, which is just release the technology, 0:08:10.960 --> 0:08:13.440 see what happens, and the other extremes ban it, slow 0:08:13.440 --> 0:08:15.640 it down, stop it. The middle ground is to figure 0:08:15.640 --> 0:08:17.320 out how do we use it and harness it, but 0:08:17.520 --> 0:08:21.240 with safety and ethics as part of that conversation. And 0:08:21.280 --> 0:08:23.880 that's why we're bringing together not only tech leaders and 0:08:23.960 --> 0:08:27.960 education leaders, but government leaders. There's numerous ministries from around 0:08:28.000 --> 0:08:30.960 the world, ministries of education that are participating in this 0:08:31.040 --> 0:08:33.680 work because they want to basically be at the forefront 0:08:33.720 --> 0:08:35.479 of how we change education. 0:08:36.280 --> 0:08:39.360 For good hopefully. Co dot com, quote dot org. In fact, 0:08:39.440 --> 0:08:42.120 CEO Hardiputovi, we thank you so much for being with us. 0:08:42.160 --> 0:08:44.640 Meanwhile, and more on the global sphere. 0:08:44.400 --> 0:08:47.840 Right now, Yeah, Infinian Technology is breaking ground on a 0:08:47.880 --> 0:08:51.800 five billion euros new chip factory in Dresden, Germany, as 0:08:51.840 --> 0:08:55.080 part of its largest investment in chips. The German company's 0:08:55.120 --> 0:08:57.560 aiming to get another billion euros worth of funding from 0:08:57.559 --> 0:09:00.880 the European Union as the block seeks to double European 0:09:00.920 --> 0:09:04.360 chip output by twenty thirty. CEO Yoch and Hannabak also 0:09:04.440 --> 0:09:06.560 spoke about the Chips Act and self reliance in the 0:09:06.559 --> 0:09:08.559 semiconductor industry. Have a listen. 0:09:09.000 --> 0:09:13.000 I would appreciate some alignment in the liberal democratic world 0:09:13.080 --> 0:09:18.360 on the Chips Act. I think no country will achieve 0:09:18.440 --> 0:09:23.120 self sufficiency. It's all about reducing one sided dependencies, and 0:09:23.480 --> 0:09:27.000 therefore some alignment would be for the better good of 0:09:27.440 --> 0:09:29.800 the whole industry and the economy. 0:09:30.760 --> 0:09:33.520 Coming up, Uber out with earnings at the top testaments. 0:09:33.559 --> 0:09:36.680 We sit down with Uber's CEO Dara Kota Shahi next. 0:09:36.920 --> 0:09:56.960 This is thing, though, on a. 0:09:56.960 --> 0:09:59.000 Day where tech stops are on the downside, there's a 0:09:59.000 --> 0:10:01.720 significant apperform. We've got to turn our attention to Uber 0:10:02.280 --> 0:10:05.360 out with earnings and absolutely rocketing in terms of its 0:10:05.360 --> 0:10:08.880 share price, best day since November, revenue beat record profitability 0:10:08.880 --> 0:10:11.000 for the company, free cash flow as well, and even 0:10:11.000 --> 0:10:13.559 promise that they're going to be expanding profitability ed into 0:10:13.559 --> 0:10:16.160 this second quarter. All of this, though, as monthly active 0:10:16.240 --> 0:10:18.240 users are actually perhaps a little less than expected but 0:10:18.640 --> 0:10:22.760 those users, they are active, they're riding more, we're ordering 0:10:22.800 --> 0:10:24.760 more freight. A little bit of weakness, but look, I 0:10:24.840 --> 0:10:28.439 took a drive from the airport yesterday and when I 0:10:28.559 --> 0:10:31.160 checked out Lift versus Uber, Uber still has a lower 0:10:31.200 --> 0:10:33.400 price point. But that's the interesting thing, isn't it. As 0:10:33.480 --> 0:10:35.880 the moment ends to how much the competition, the focus 0:10:35.920 --> 0:10:39.480 on prices that coming down, whether that will ultimately impact 0:10:39.480 --> 0:10:42.160 some of the business models out there. For now, Uber 0:10:42.200 --> 0:10:45.720 really managing to show its pos post its earnings ed. 0:10:46.200 --> 0:10:48.960 Yeah, Look, we're judging Uber on an adjusted ebit DAR 0:10:49.120 --> 0:10:52.560 basis strong in the quarter, gong strong outlook going into 0:10:52.559 --> 0:10:55.080 the second quarter, eight hundred to eight hundred and fifty 0:10:55.120 --> 0:10:57.560 million dollars above what the street was looking for. They 0:10:57.559 --> 0:11:00.319 had that twenty twenty four goal when it comes to 0:11:00.440 --> 0:11:05.640 adjusted ebit DA coming up. We welcome our bloombag TV 0:11:05.720 --> 0:11:09.400 and radio audiences worldwide joining us now the CEO of Uber, 0:11:09.520 --> 0:11:12.760 Dara Kostrashahi, and of course Emily Chang of Bloomberg News 0:11:12.880 --> 0:11:14.160 here with me and take it away. 0:11:14.440 --> 0:11:16.319 Thank you so much, and Dara, thank you so much 0:11:16.360 --> 0:11:19.200 as always for joining us. Obviously, we're seeing strong reaction 0:11:19.280 --> 0:11:22.239 in the stock today, strong on mobility, strong on delivery. 0:11:22.400 --> 0:11:25.239 I want to focus on delivery first because that's more discretionary, 0:11:25.240 --> 0:11:27.880 and obviously times are tough right now, people are being 0:11:27.920 --> 0:11:30.480 more picky about what they spend on. Are you expecting 0:11:30.480 --> 0:11:32.959 any pullback in delivery in particular? 0:11:33.040 --> 0:11:33.640 Why or why not? 0:11:34.400 --> 0:11:37.000 Well, first of all, thank you for having me. It's 0:11:37.040 --> 0:11:38.679 great to be here, and obviously it's great to be 0:11:38.760 --> 0:11:42.880 here within the context of super strong results overall for Uber. 0:11:43.320 --> 0:11:46.040 As it relates to our delivery growth, we saw a 0:11:46.080 --> 0:11:51.000 really solid growth this last quarter in terms of constant currency, 0:11:51.120 --> 0:11:53.600 growing about twelve percent. Are gross bookings on a year 0:11:53.640 --> 0:11:58.080 on your basis, and we're seeing the habit of frequency. 0:11:58.080 --> 0:12:01.880 For example, frequency for a delivery consumers was up on 0:12:01.960 --> 0:12:05.840 a you're on your basis, Basket size continues to be higher, 0:12:06.320 --> 0:12:10.040 and we actually saw our growth bookings growth accelerate from 0:12:10.160 --> 0:12:13.440 Jen to feb to March. So we expect Q two 0:12:13.960 --> 0:12:16.760 delivery growth to be higher than what it was in 0:12:16.880 --> 0:12:19.560 Q one. So we're not seeing any kind of a 0:12:19.600 --> 0:12:22.719 signal at this point of a slowdown. And while there 0:12:22.720 --> 0:12:25.000 may be a slowdown going on in terms of the economy, 0:12:25.040 --> 0:12:28.640 I think generally the consumer remains strong. Generally the consumer 0:12:28.800 --> 0:12:31.840 spending more money on experiences, and I think food is 0:12:32.280 --> 0:12:35.640 a part of that experience set. And we as a company, 0:12:35.760 --> 0:12:38.480 because of our global scale and size and our brand 0:12:38.960 --> 0:12:42.200 and our tech prowess so to speak, are generally going 0:12:42.360 --> 0:12:45.760 faster than the delivery category. I think if you put 0:12:45.760 --> 0:12:49.040 that all together, along with profitable growth, you get to 0:12:49.200 --> 0:12:51.079 good outcomes regardless of the environment. 0:12:52.160 --> 0:12:55.120 All Right, Lift has a new CEO. They've made it 0:12:55.160 --> 0:12:57.400 clear they're going to lean into lower prices to compete. 0:12:57.440 --> 0:12:59.840 They want to call back market share. What's the risk 0:12:59.880 --> 0:13:00.840 of a price. 0:13:00.559 --> 0:13:05.160 For well, you never know, and you can't predict the future, 0:13:05.480 --> 0:13:07.840 but from what we have seen in terms of the 0:13:07.840 --> 0:13:10.240 statements coming out from Lyft is that they want to 0:13:10.400 --> 0:13:14.040 compete based on competitive pricing and what we're seeing in 0:13:14.040 --> 0:13:17.079 the marketplace. You know you mentioned at the beginning, which 0:13:17.120 --> 0:13:21.280 is Uber pricing is quite competitive in the in the marketplace. 0:13:21.679 --> 0:13:23.400 And I think if you have Uber. 0:13:23.200 --> 0:13:26.600 And Lyft competing not on who can have the lowest price, 0:13:26.640 --> 0:13:29.160 but who's got the best experience, who's got the best brand, 0:13:29.160 --> 0:13:32.880 who's got the better reliability or breadth of products out there, 0:13:33.360 --> 0:13:36.120 I think that you know, we can both do fine 0:13:36.320 --> 0:13:39.840 in this marketplace. The fact is that the mobility marketplace 0:13:39.920 --> 0:13:43.559 is growing. People are going out more, They're going to restaurants, 0:13:43.559 --> 0:13:46.559 they're returning to work, they're returning to the office. We 0:13:46.640 --> 0:13:50.560 are definitely seeing those tailwinds and I wouldn't be surprised 0:13:50.600 --> 0:13:51.920 if left us two going forward. 0:13:52.800 --> 0:13:56.360 Welcome to our Bloomberg radio and television audiences worldwide. We're 0:13:56.360 --> 0:13:59.880 with the CEO of Uber, Dara Kshrashahi Dara on that 0:14:01.000 --> 0:14:03.839 outlook on consumer strength. How long does it last? I mean, 0:14:03.880 --> 0:14:07.320 are you seeing any price pressure on the consumer or 0:14:07.360 --> 0:14:10.240 any sort of granular data you can give about how 0:14:10.240 --> 0:14:11.480 you see the rest of the year. 0:14:13.000 --> 0:14:17.000 We're not seeing any kind of pressure as it relates 0:14:17.000 --> 0:14:20.720 to consumer spend at this point, and I think part 0:14:20.760 --> 0:14:24.880 of it is because of our supply situation and generally 0:14:24.920 --> 0:14:28.480 supplying the marketplace getting better. We are seeing drivers talk 0:14:28.520 --> 0:14:31.760 about inflation more and about seventy percent of drivers who 0:14:31.840 --> 0:14:36.320 are coming onto the platform have said that inflation, the 0:14:36.320 --> 0:14:39.640 affordability of groceries, et cetera, has played a part in 0:14:39.680 --> 0:14:43.040 their decision to come onto the platform and to join 0:14:43.160 --> 0:14:46.320 Uber in order to augment their earnings or just bring 0:14:46.360 --> 0:14:50.680 in a healthy earning set. As it relates to the marketplace. 0:14:50.760 --> 0:14:54.600 Right now, we are seeing some signs on the enterprise 0:14:54.640 --> 0:14:59.440 side of weakness in terms of pickup, for example of 0:14:59.560 --> 0:15:01.680 Uber for Business. So when we look at Uber for 0:15:01.800 --> 0:15:05.640 Business new client signings, they're a bit slower than what 0:15:05.680 --> 0:15:08.320 they were pacing before. So I think you're seeing in 0:15:08.360 --> 0:15:12.640 the environment companies are being more careful, they are cutting 0:15:12.760 --> 0:15:16.920 cost often they're kind of cutting personnel. But that weakness 0:15:16.920 --> 0:15:20.440 has definitely not translated into the consumer, and the consumer 0:15:20.520 --> 0:15:23.080 we see being very strong and we don't see any 0:15:23.120 --> 0:15:24.600 signal of weakness there at all. 0:15:25.400 --> 0:15:29.840 The other enterprise facing business is freight, which you fund separately. 0:15:30.320 --> 0:15:34.960 But what metrics would guide a timeline to sell or 0:15:35.000 --> 0:15:37.800 spin off Uber Freight Darra Well. 0:15:37.640 --> 0:15:40.560 At this point, the focus for freight is to really 0:15:40.640 --> 0:15:44.960 operate the business in an optimal way. Right now, the 0:15:45.000 --> 0:15:50.440 freight brokerage business and the transportation business is readjusting pricing significantly. 0:15:50.800 --> 0:15:53.560 Prices were sky high two years ago. They have come 0:15:53.600 --> 0:15:57.720 down significantly for two years now, and I think what 0:15:57.760 --> 0:16:02.840 we're going to see is essentially pricing bottoming out sometime 0:16:03.240 --> 0:16:05.880 in the next couple of months. As we see that 0:16:05.920 --> 0:16:08.440 pricing bondoming out, then we can get in a position 0:16:08.480 --> 0:16:12.760 to grow our freight business use or digital acumen and 0:16:12.840 --> 0:16:16.080 the data advantage that we have in order to provide 0:16:16.120 --> 0:16:19.120 a better service for shippers and to be the best 0:16:19.240 --> 0:16:22.480 best platform for truckers out there. That's really the focus 0:16:22.480 --> 0:16:26.320 of freight right now. Ultimately, we will look to optimize, 0:16:26.360 --> 0:16:29.040 whether freight's inside of Uber or outside of Ubert, et cetera, 0:16:29.400 --> 0:16:31.040 to maximize shareholder value. 0:16:31.120 --> 0:16:32.200 That's what we're here for. 0:16:32.680 --> 0:16:36.080 But today the focus is on building the best digital 0:16:36.120 --> 0:16:37.120 freight business that we can. 0:16:38.840 --> 0:16:41.360 Tens of thousands of folks have been laid off across 0:16:41.400 --> 0:16:44.280 the tech industry, Dara. You've continued to say no company 0:16:44.280 --> 0:16:47.400 wide layoffs, but you have done some more targeted layoffs. 0:16:47.440 --> 0:16:51.040 You've done some performance related cuts. How are you thinking 0:16:51.080 --> 0:16:55.960 about headcount right now and are you considering potentially a 0:16:56.040 --> 0:16:59.720 broader riff if things continue to get worse, you know, 0:17:00.320 --> 0:17:02.000 looking across the broader landscape. 0:17:03.040 --> 0:17:05.960 Well, I just don't think that companies should all of 0:17:05.960 --> 0:17:09.240 a sudden get discipline about headcount because they have to. 0:17:09.800 --> 0:17:12.080 I think that you've got to have discipline on heackcount 0:17:12.080 --> 0:17:18.400 and cost as a continuing way that you operate going forward, daily, weekly, monthly, yearly, 0:17:18.800 --> 0:17:20.520 and you've seen that discipline for us. So if you 0:17:20.600 --> 0:17:24.000 look at our heaccaunt growth from call it twenty nineteen 0:17:24.080 --> 0:17:27.240 to where we are now for the base business, for 0:17:27.480 --> 0:17:32.080 our mobility and delivery business, total heacaut growth over that 0:17:32.119 --> 0:17:37.200 period is up about ten percent versus a bookings growth 0:17:37.560 --> 0:17:41.400 that is approaching seventy percent. So we have always been 0:17:42.160 --> 0:17:45.720 very disciplined in terms of how we manage costs. We 0:17:45.840 --> 0:17:49.520 talked about this year, even though we're showing huge top 0:17:49.560 --> 0:17:52.679 line growth and huge profitability growth, we're not letting go 0:17:52.720 --> 0:17:54.520 of that discipline, and we're saying that headcount is going 0:17:54.560 --> 0:17:56.879 to be flatted down. And I think that kind of 0:17:56.880 --> 0:18:00.120 discipline in the rhythm allows the company to focus on executing, 0:18:00.160 --> 0:18:03.080 on innovating, and not looking around, you know, over your 0:18:03.080 --> 0:18:05.159 shoulder as to whether you're going to be one of 0:18:05.200 --> 0:18:07.159 those people who's fired or not. So right now, the 0:18:07.200 --> 0:18:10.600 business is executing well. If we keep executing well, we're 0:18:10.600 --> 0:18:12.960 not going to have a riff. If we don't, then 0:18:13.000 --> 0:18:15.800 we're going to adjust, and we've always adjusted at Uber 0:18:16.280 --> 0:18:18.000 in a very timely way. 0:18:18.640 --> 0:18:21.240 All Right, you're listening to Uber CEO Dara kosra Shahi. 0:18:22.320 --> 0:18:24.879 You've seen so many economic cycles. Dara, you ran a 0:18:24.920 --> 0:18:27.800 travel company through nine to eleven, through the financial crisis. 0:18:28.320 --> 0:18:30.680 But look, you know, we just saw First Republic sell 0:18:30.800 --> 0:18:33.639 in a fire sale to JP Morgan. How are you 0:18:33.760 --> 0:18:38.040 thinking about what's ahead? What's your outlook and how long 0:18:38.119 --> 0:18:39.040 does this last? 0:18:40.040 --> 0:18:42.600 Yeah, I could not tell you how long this lasts, 0:18:43.240 --> 0:18:45.680 but I think as a company you've got to be prepared. 0:18:46.240 --> 0:18:48.800 I do think that the cost of capital for the 0:18:48.840 --> 0:18:51.280 banking system that tends to be a higher leverage, but 0:18:51.760 --> 0:18:55.199 for the startup ecosystem is getting much more dear. I 0:18:55.240 --> 0:18:57.480 don't think we are close to the end of that road. 0:18:57.520 --> 0:18:59.679 I think that rates are going to stay higher for 0:18:59.680 --> 0:19:03.600 long because despite people predicting recession and predicting recession, it's 0:19:03.640 --> 0:19:07.359 not there yet. So I think that companies across the board, 0:19:07.400 --> 0:19:11.080 whether you're a bank or you're technology company, you've got 0:19:11.119 --> 0:19:14.119 to be super conservative as it relates to your balance sheet. 0:19:14.359 --> 0:19:18.080 You've got to be incredibly disciplined in terms of capital allocation. 0:19:18.720 --> 0:19:21.480 And I think that environment is going to help the 0:19:21.640 --> 0:19:26.159 larger global players who are more diversified, and we are 0:19:26.240 --> 0:19:30.480 exactly that, and that's why we're showing higher than category 0:19:30.560 --> 0:19:34.880 growth and much stronger than category margin expansion and now 0:19:35.000 --> 0:19:39.159 significant pre cash flows as well. We think that's a 0:19:39.160 --> 0:19:43.280 great combination and we're prepared to deliver on that promise 0:19:43.720 --> 0:19:46.840 whether the environment's strong, medium or weak. 0:19:48.000 --> 0:19:50.320 Dara I went through the earnings transcript with a fine 0:19:50.320 --> 0:19:53.399 tooth comb no mention in the prepared remarks, But the 0:19:53.440 --> 0:19:56.879 first question was about AI. Are you going to accelerate 0:19:56.880 --> 0:19:59.600 your investments in AI? And are you an AI company? 0:20:01.160 --> 0:20:04.920 We have been in AI since I've been here the company. 0:20:05.400 --> 0:20:10.400 You think about our pricing algorithms, routing algorithms when we 0:20:10.480 --> 0:20:13.840 decide to let's say batch a delivery order or not. 0:20:15.200 --> 0:20:21.200 Even technologies such as recognition of your license or your 0:20:22.280 --> 0:20:27.840 insurance card, etc. All of these are AI driven and 0:20:27.880 --> 0:20:29.960 they have been a part of how we operate as 0:20:29.960 --> 0:20:33.800 a company. What we're seeing now is that as these 0:20:34.520 --> 0:20:37.760 models get more capable and larger, you can train them 0:20:37.800 --> 0:20:40.760 over much larger data sets. So we would have let's say, 0:20:40.800 --> 0:20:43.760 an AI algorithm that is pricing for city by city 0:20:43.800 --> 0:20:48.800 by city. Now our AI algorithms current priced globally and 0:20:49.359 --> 0:20:53.240 the efficacy in terms of pricing and matching is incredibly powerful. 0:20:53.520 --> 0:20:56.400 And because we have more data than anyone else across 0:20:56.400 --> 0:20:59.199 a multitude of businesses. We think AI is going to 0:20:59.200 --> 0:21:01.040 be a very very powerful tale one for. 0:21:01.040 --> 0:21:04.000 Us Derek Quick, yes or no? Are you a chat 0:21:04.000 --> 0:21:04.960 GPT user? 0:21:06.160 --> 0:21:08.840 I am a chat GPT users. I'm trying to get 0:21:08.880 --> 0:21:12.439 better at it. There's a I've got my skills as 0:21:12.480 --> 0:21:14.639 a prompt engineer or not what I want them to be? 0:21:16.040 --> 0:21:16.360 All right? 0:21:16.359 --> 0:21:18.720 Oh, thanks to the CEO Dara Koshra Shah and of 0:21:18.720 --> 0:21:20.880 course our own Emily chang back to you. 0:21:20.880 --> 0:21:24.480 Care what a great question to ask, like to leave 0:21:24.480 --> 0:21:26.600 it on ED. We thank you so much. It's time 0:21:26.640 --> 0:21:28.679 now for some talking tech. I'm going to stick with 0:21:28.720 --> 0:21:31.800 the theme of artificial intelligence. IBM, CEO of Vin Krishna 0:21:32.000 --> 0:21:35.119 says that technology is prompting Big Blue to stop or 0:21:35.160 --> 0:21:38.160 slow hiring for jobs it believes will be replaced. 0:21:37.800 --> 0:21:38.880