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Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside

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Speaker 1: my co host Matt Miller. Every business day, we bring

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Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along

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Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast

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Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and

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Speaker 1: at Bloomberg dot com slash podcast. We're kind of getting

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Speaker 1: through the meat of the tech earnings, um and you

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Speaker 1: know the stocks. I used to follow the big social

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Speaker 1: media companies and Google's and facebooks in the world, so

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Speaker 1: I always continue to keep an interest in that Pinterest.

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Speaker 1: What was the biggest deal By the way, what was

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Speaker 1: the biggest deal you did as an investment banker? A

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Speaker 1: well buying time warner? We represented a well Okay, so

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Speaker 1: that's the same wheelhouse. And I always think about the

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Speaker 1: radio I did all the radio. Those were fun. Those

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Speaker 1: were fun. That's why I love being in the radio business.

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Speaker 1: But I look at Pinterest. I'm not a user, um,

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Speaker 1: but it's a thing. I get it. They put up

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Speaker 1: some good numbers, stock up twelve percent, but I look

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Speaker 1: it around the digital advertising space and I saw some

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Speaker 1: serious hiccups here. So I want to get a sense

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Speaker 1: of what's going on out there. So fortunately we have

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Speaker 1: Mark Douglas live in our Bloomberg Interactive Broker studio, not

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Speaker 1: phoning it in like a certain interest rate analyst time.

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Speaker 1: I know, Marcus the CEO and Mountain um Mark. We've

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Speaker 1: had Google, We've had Facebook. I'm not going to use

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Speaker 1: the medicine. This is a meta free yes, so but

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Speaker 1: you know, but I see snap, I see Pinterest. Is

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Speaker 1: these is the I guess secular growth of digital advertising

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Speaker 1: because that story kind of playing out or do we

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Speaker 1: still have room to grow? Um, it's not playing out.

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Speaker 1: I think the way to think about it. And this

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Speaker 1: goes for your personal finances. This goes for investing. Is

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Speaker 1: everything that's closest to the consumer. The consumer making a

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Speaker 1: purchase is going to do very well in tough times,

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Speaker 1: and everything furthest Away is going to struggle. So like

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Speaker 1: in in digital advertising, Roku is furthest Away brand ads,

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Speaker 1: you know, not really at the point of purchase. Google

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Speaker 1: is close, Pinterest is actually very close to the radio

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Speaker 1: radio is closed. And so it goes also for other

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Speaker 1: categories streaming television. You know that that the first three

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Speaker 1: streaming services you like, you're gonna keep paying. If you're

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Speaker 1: number five on that list, as a consumer, you're gonna

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Speaker 1: be like, I'm cutting something right, and so you're gonna

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Speaker 1: cut that off. It goes for everything, and so digital

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Speaker 1: advertising is fine. You just have to focus on the

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Speaker 1: companies that are closest to the point of purchase and

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Speaker 1: what are you seeing in terms of the clients that

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Speaker 1: you work with, what are they doing to increase their

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Speaker 1: reach to the consumer at closer Yes, so they're generally

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Speaker 1: reevaluating where they're spending, and then the things that are

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Speaker 1: doing well for them, they actually increasing spend. So those

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Speaker 1: are those categories we all know, paid search, paid social, um,

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Speaker 1: the and then those things again there furthest away they're

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Speaker 1: they're taking spend away from that and be us they

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Speaker 1: just literally can't afford it, or at least can't afford

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Speaker 1: the risk if the economy struggles a bit more. Right,

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Speaker 1: So that's a that's a cyclical issue. It sounds to

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Speaker 1: me the secular story of just growth and digital advertising.

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Speaker 1: Are those days kind of behind us here? Or do

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Speaker 1: we Because I've got Google, I've got Facebook, and I

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Speaker 1: guess I've got Amazon as my big three digital advertisers,

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Speaker 1: can they combined continue to drive this market on Yeah,

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Speaker 1: I mean, well Google and Meta uh we agree with

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Speaker 1: a gun call of Facebook already fell off that chair.

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Speaker 1: And we also don't say alphabet, so you know, alright,

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Speaker 1: I'm on that train. Um no pun intended as in

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Speaker 1: New York. But no, they they obviously just have incredible scales.

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Speaker 1: So at that scale, at ten percent growth, those are

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Speaker 1: still really really big growth numbers. Amazon is on fire

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Speaker 1: in terms of their business, both the advertising business and

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Speaker 1: AWS which essentially almost funding that a retail business at

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Speaker 1: least from a profitability perspective, and so I think those

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Speaker 1: are good. But the you know, the the area men

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Speaker 1: streaming television continuing to grow obviously fake um Netflix, I

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Speaker 1: should say obviously Netflix is you know, they have like

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Speaker 1: consumer market share in the US and it's just kind

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Speaker 1: of hard to grow from that. But I think the

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Speaker 1: overall streaming market, this transition from old school linear television

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Speaker 1: cable to streaming, that's not slowing down, that's continuing. How

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Speaker 1: many how many of streamers do you think will be

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Speaker 1: I don't know left standing at the end of this.

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Speaker 1: I mean, is it is it three, is it five?

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Speaker 1: Is it the fifty we had on cable TV or well,

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Speaker 1: there's a consolidation going on right now. When you look

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Speaker 1: at the television industry, the biggest companies are like half

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Speaker 1: the market. So I'm talking like Disney, which people forget

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Speaker 1: also owns ABC on ESPN on like, has all these properties.

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Speaker 1: And then you look at Discovering Networks and they have

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Speaker 1: merged with Time Warner I believe, right, And so the

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Speaker 1: the your have a consolidation underway. It's just kind of

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Speaker 1: happening under a bit below the surface because people are

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Speaker 1: not paying attention to it. So I think you're gonna

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Speaker 1: wind up with just a relatively small number very large players,

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Speaker 1: you know, kind of focused on that market, but in

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Speaker 1: a new way because consumers are watching TV. On the subway,

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Speaker 1: they're watching it and back at taxis they obviously still

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Speaker 1: watching it at home everywhere with the sound up. By

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Speaker 1: the way, but by the way, um, okay, you can

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Speaker 1: be honest with me. Here as we watch Nancy Pelosi

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Speaker 1: get off of her plane, Greg Jarrett says, it looks

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Speaker 1: like a seven two A I'm a pilot, by the way,

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Speaker 1: Oh yeah, I'll try to call that way. I would

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Speaker 1: agree with the seven seven from from the shot. I'm

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Speaker 1: thing right now as we watch that, and I'm not

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Speaker 1: really necessarily I don't have anything to say about this

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Speaker 1: because we already saw her land. It looks like she's safe,

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Speaker 1: everything's cool, and the markets have breathed a side of relief.

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Speaker 1: But does news? Howse news doing? In terms of television? Obviously,

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Speaker 1: streaming news is kind of a silly thing because you

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Speaker 1: want it right away, live, right But I don't. For example,

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Speaker 1: I don't even have cable TV at all at my

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Speaker 1: house television. I mean, I watched Bloomberg on the Apple TV,

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Speaker 1: but I don't watch other kinds of news. Are peeple,

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Speaker 1: do people watch CNN, MSNBC, Fox, Bloomberg? Are they? Are

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Speaker 1: they paying for that? Are we? Are we losing money

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Speaker 1: as a loss leader for for Mike over there? Ye? Also,

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Speaker 1: I think most people are watching the news via their

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Speaker 1: um Instagram account and their TikTok accounts. Scary, that's really scary.

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Speaker 1: So I think that's most people's number one news source.

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Speaker 1: You know. Obviously I think you're trying to give me

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Speaker 1: in trouble here. No, no, But you make a good point,

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Speaker 1: you know. I remember I was talking to a barista

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Speaker 1: a couple of months ago and she hadn't gotten her vaccine.

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Speaker 1: I asked her why and she said, because she saw

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Speaker 1: on the news that it can paralyze you get the vaccine.

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Speaker 1: I said, what news were you watching? She said, oh,

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Speaker 1: I saw it on TikTok. That was her news, the

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Speaker 1: vaccine paralyzed. Yeah. By the way, that isn't true, right,

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Speaker 1: but but but yeah, I mean obviously CNN has is

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Speaker 1: struggling right now. I think Fox knows who their audience is,

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Speaker 1: and they have a very engaged audience and and also

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Speaker 1: an audience the weird news is part. Yeah. I I

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Speaker 1: actually owned some land in Kentucky, so I know the

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Speaker 1: middle of America, and all they want to know about

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Speaker 1: is Hunter Biden and see like California man fights off

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Speaker 1: store roberts Um twenty four hours of Fox coverage. Well,

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Speaker 1: news is also entertainment these days, so let's leave it

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Speaker 1: all right back to entertainment. Then. I have noticed lately

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Speaker 1: Amazon Prime is knocking it out of the park. I mean,

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Speaker 1: they had the terminal List, which is hard for me

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Speaker 1: to try and watch Chris Pratt in a serious role.

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Speaker 1: But anyway, they had Jack Reacher that was killer. They

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Speaker 1: had outer range, which I love with I think Josh Brolin. Um,

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Speaker 1: they're just they're just taking it over. Yeah, so they're

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Speaker 1: they're obviously. You know the interesting thing, I actually talked

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Speaker 1: to someone at Amazon, very senior executive. Their biggest issue

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Speaker 1: with Prime is a lot of the people at Prime

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Speaker 1: subscriptions don't realize and includes television, includes video and so

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Speaker 1: they so first they have to they need their Handmad's Tail.

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Speaker 1: They need that show that everyone wants to watch, and

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Speaker 1: they're investing heavily in getting that. And then they have

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Speaker 1: to remind everyone that, hey, by the way, you have

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Speaker 1: access to this as part of getting your packages delivered

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Speaker 1: same day. So they're they're really in it. Um. I

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Speaker 1: my company used to be based in l A since

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Speaker 1: the pandemic were fully remote right now, and when we're

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Speaker 1: in l A. Amazon built a huge movie studio in

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Speaker 1: Culver City, and I mean a million square feet of

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Speaker 1: space to produce shows, to to manage all that. So

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Speaker 1: they're they're heavily investing along with all the other big

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Speaker 1: They don't have the Adam Project though, no they don't.

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Speaker 1: Ryan Ryan Reynolds continues, did you get a cameo in that? Um?

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Speaker 1: I have have no cameos in Ryan's movie I haven't

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Speaker 1: I have a cameo in his actual life right now,

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Speaker 1: just for the listeners, h Mark and Mountain. Ryan Reynolds

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Speaker 1: is their chief creative officer. So is that the right title. Yeah,

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Speaker 1: it's been an incredible partnership. Mark, you mentioned your folks

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Speaker 1: are remote. Is that permanent? How's that working? I mean

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Speaker 1: you look around here. Mike has like this phenomenal office

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Speaker 1: for us. Nobody's here. Yeah. So we we at the

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Speaker 1: relatively early in the pandemic. We decided when everyone scattered,

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Speaker 1: including me, I went to I left l A and

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Speaker 1: actually went all over the I went tot Loo, Mexico

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Speaker 1: and spent nine months there. Had it very nice. I

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Speaker 1: thought you gonna say back to the Bronx, but it

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Speaker 1: pretty cool. France is good too, and so we just

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Speaker 1: decided we're going fully remote. We decided in May of um,

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Speaker 1: maybe June, we're going fully remote, and um we do

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Speaker 1: four off sites a year to bring the team together.

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Speaker 1: It's been fantastic. That's good stuff. Interesting. Every everybody's adapting.

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Speaker 1: Everybody has adapted is adapting. Mark Douglas, President CEO of Mountain,

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Speaker 1: joining us live in our Bloomberg Interactive Broker studio that

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Speaker 1: is very cool. We appreciate them taking the effort to

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Speaker 1: come in here. Right now, let's check in with James

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Speaker 1: McCann's deputy chief economists Aberdeen Standard Investments. James, thanks so

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Speaker 1: much for joining us here. Boy, tremendous amounts of news flow.

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Speaker 1: We've got central bankers making statements all over the place

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Speaker 1: raising interest rate, We've got earnings, we've got g DP prints,

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Speaker 1: we've got geopolitical issues obviously in Europe. Uh and today

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Speaker 1: there a lot of focus on Taiwan. When you step

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Speaker 1: back and think about where the US economy is going,

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Speaker 1: I wonder how you kind of put all those pieces together.

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Speaker 1: How do you think about the US economy and maybe

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Speaker 1: even you know, the global economy really over the next

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Speaker 1: six or twelve months. Yeah, I mean, you're absolutely right.

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Speaker 1: It's just a huge amount to unpack here. I think

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Speaker 1: what's very clear from the U S data is that

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Speaker 1: we're going into a very pronounced soft patch. I think

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Speaker 1: the fact that we've had a huge energy price drive

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Speaker 1: and commodity price drate and price shock has had a

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Speaker 1: larger effect of many had expected on on consumer sentiments,

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Speaker 1: on consumer spending, etcetera. So you know, definitely we see

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Speaker 1: in strong signs in the data of a soft spot,

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Speaker 1: of a soft patch. We're not convinced this as a recession.

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Speaker 1: I know, last week after the two quarters of negative

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Speaker 1: growth has been a lot of speculation and concern that

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Speaker 1: we're already in recession. We're not convinced that we yet,

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Speaker 1: but look, the risks are definitely increasing. And then when

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Speaker 1: we look on a longer term horizon, we do think

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Speaker 1: as the Fed titans policy, as financial conditions have already

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Speaker 1: adjusted very very significantly, stressing markets has increased that we

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Speaker 1: think the outlook as we go forward is for a

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Speaker 1: further deterior ration in growth. And what we know, as

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Speaker 1: I said, we don't think crim recession at the moment.

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Speaker 1: We do think prospects over that sort of twelve month

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Speaker 1: horizon are pretty dim. So we have a lot of

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Speaker 1: concerns about where the U. S. Economy is going, and

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Speaker 1: we know when where the U. S. Economy glows, that

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Speaker 1: the global economy tends to follow. I mean, it's pretty

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Speaker 1: hard to obviously um the technical definition normally are the

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Speaker 1: rule of thumb is to quarters of contraction. But if

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Speaker 1: you look at this economy with three and a half

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Speaker 1: percent unemployment, and you know six or seven percent nominal growth, Um,

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Speaker 1: it's difficult to see it, or more it's difficult to

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Speaker 1: see it as a recession. Now. On the other hand,

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Speaker 1: we had an interesting note by his old ten poser

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Speaker 1: opposed are Overnight Um and our colleague are a Jersey

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Speaker 1: from Bloomberg Intelligence also has said that this is a

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Speaker 1: FED that wants to fight inflation and is sort of determined,

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Speaker 1: um to turn this inflation around at the risk of

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Speaker 1: pushing the economy into a recession or as posed our

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Speaker 1: even the depression. Do you think we're gonna go to

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Speaker 1: five percent? Do you think we're gonna go to six

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Speaker 1: percent as the outliers are saying, or um, do you

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Speaker 1: believe the market that the Fed is going to get

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Speaker 1: to three and a half or four and then turn

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Speaker 1: tail and run back down? By that team means sorry

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Speaker 1: un employment rates, No, No, I mean the terminal rate

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Speaker 1: the FED right now at the top range at two fifty, right,

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Speaker 1: And even if they do seventy five again, that's only

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Speaker 1: three and a quarter. And and if you look at futures,

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Speaker 1: the market thinks they're gonna go to four maybe a

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Speaker 1: little more, and then come back down already next year.

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Speaker 1: But does that mean we're gonna already have met our

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Speaker 1: two percent inflation goal by next year or are they

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Speaker 1: going to go early? What do you think, um the

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Speaker 1: time it's going to be? I told them, I think

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Speaker 1: that the difficulty for the Fed at the moment is

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Speaker 1: it's seeing signs of weakness in the growth, but it's

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Speaker 1: just not comfortable and I don't think will be comfortable

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Speaker 1: for a while in pivoting. And that's because it's just

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Speaker 1: going to take a while to an inflation under control

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Speaker 1: even if growth slow, as the economy looks just enormously

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Speaker 1: in balanced stills. So I think today's jolt states were

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Speaker 1: really interesting. They showed openings fell pretty significantly, but they're

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Speaker 1: still from a historical style and just extraordinarily high. And

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Speaker 1: it just tells me the seat has more work to

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Speaker 1: do in taking some of the heat tells of this economy.

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Speaker 1: So we certainly think the set has a ways to

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Speaker 1: go in terms of its tightening. But we probably agree

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Speaker 1: that the you know, the terminal rate looks most likely

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Speaker 1: to be around we're not a half per cent, so

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Speaker 1: there are still a fat dunk of tightening to come.

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Speaker 1: It's not impossible that the FED has to go to

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Speaker 1: go higher certainly if that inflation proves you know, more

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Speaker 1: difficult to to to to do you think with that

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Speaker 1: kind of terminal rate they could get down to two.

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Speaker 1: We were at nine point one. I know they don't

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Speaker 1: go by headline cp I, but uh, what's core PC

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Speaker 1: right now? Like five? Um? Can they get back to

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Speaker 1: two with a terminal rate of only four? Yeah? Sorry,

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Speaker 1: the connection is a little bit poor here, but I

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Speaker 1: think they can. I think they can definitely create and

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Speaker 1: I think they can do so potentially quite quickly. I

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Speaker 1: think that has to happen sort of late next year

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Speaker 1: into twenty four potentially. But really what you need to

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Speaker 1: see as an inflation for when it falls, it could

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Speaker 1: for quite quite quickly. You know. Certainly the energy price

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Speaker 1: dynamic I think is already going to be disinflation ry

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Speaker 1: through the summer, and it growth sloans could provide further

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Speaker 1: disinflation reimpetus. I think global goods prices could moderate quite

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Speaker 1: quite rapidly given weakening demand and improving supply chain conditions.

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Speaker 1: So it's not impossible that some aspects of their inflation

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Speaker 1: picture improved quite quite rapidly. I think what they really

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Speaker 1: need to see is that course services inflation moderate, and

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Speaker 1: for that they need to see labor market sees and

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Speaker 1: wages start to come down, and then I think they'll

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Speaker 1: be more confident that the run rate, perhaps not the

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Speaker 1: year on year rate, but the run rate of monthly

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Speaker 1: inflation is coming in more in line with where their

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Speaker 1: inflation target is. And actually, I don't think they're going

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Speaker 1: to put the economy into a depression to achieve that,

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Speaker 1: because I don't think inflation would be that stubborn, you know,

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Speaker 1: but certainly we think that, you know, consecutively a period

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Speaker 1: of very weak growth of recession will be enough to

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Speaker 1: sort of shake that inflation geanie back into the bottle

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Speaker 1: maybe as as a way of putting it, and that

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Speaker 1: will allow them to cut as we sort of move

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Speaker 1: into late twenty three and twenty twenty four. But that's

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Speaker 1: a we have to get the tightening in first. I

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Speaker 1: guess James about the consumer, the consumer is kind of

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Speaker 1: hanging in there pretty well, and Matt mentioned the relatively strong,

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Speaker 1: very strong employment position, but there are some concerns about

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Speaker 1: savings rates coming down, credit card rate balance is going up.

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Speaker 1: How do you view the consumer? Look, I think the

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Speaker 1: consumer in aggregilities is in really good shape when we

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Speaker 1: look at the balance. So if we think about debts

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Speaker 1: the ratio of the to income, then that's a multi

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Speaker 1: year lows. We know there's a lot of accruede saving.

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Speaker 1: Even if the flow of saving, the monthly thing that

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Speaker 1: they're doing sort of back to pre crisis normals, they've

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Speaker 1: built up a big stock pile of saving. I guess

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Speaker 1: the key question for the consumer is, you know, what

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Speaker 1: do they do with that? Well? Are they happy to

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Speaker 1: keep on spending it, especially as the economic outlook starts

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Speaker 1: to starts to darken, especially as the labor market starts

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Speaker 1: to weaken, do they switch to perhaps some more precautionary stance.

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Speaker 1: I think that's what we're already seeing signs of of

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Speaker 1: coming out, is that consumers, at first we're looking to

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Speaker 1: spend through this inflation of the impulse. Now they seem

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Speaker 1: a little bit less convinced. So, you know, I don't

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Speaker 1: think the consumers in terrible shape, but I do think

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Speaker 1: they'll become increasingly cautious about how they spend their money.

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Speaker 1: I think that's going to be felt most acutely endurable

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Speaker 1: good sector, just because they've spent so much in that

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Speaker 1: in that part of the economy over the last two years.

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Speaker 1: Maybe services still has a bit of insulations. People are

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Speaker 1: getting back to normal to you're going back to their

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Speaker 1: lives pre pre pandemic spending on holidays and and anything else,

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Speaker 1: et cetera. But yeah, I do think they look to Edinburgh. Yeah, exactly,

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Speaker 1: it's my next holiday, all right, James, what do they

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Speaker 1: do that log throwing thing? When do they do that

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Speaker 1: big Scottish Thailand Highland Games? That would that's later this

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Speaker 1: year is so you should definitely get to tell. Tell well,

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Speaker 1: hopefully it cools down. Tell Luke Hickmore. I'm on my way,

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Speaker 1: all right, James mcinn, Deputy Chief Economist, Aberdeen Standard Investments,

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Speaker 1: Thanks so much for joining. Alright, all eyes on Taiwan today,

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Speaker 1: Uh speaker Ploss playing did land moments ago in Taiwan.

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Speaker 1: Now there's a red headline across the Bloomberg terminal China

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Speaker 1: to carry out military drills encircling Taiwan. So here we go.

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Speaker 1: Let's get the latest on all things Taiwan and from

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Speaker 1: the speaker. Emily Wilkins, Washington reporter with Bloomberg Government, joins

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Speaker 1: us here. So Emily, here we go. The speakers in

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Speaker 1: Taiwan what is the expectation in Washington, hopeful or not

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Speaker 1: about how this will play out? I mean, I think

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Speaker 1: the expectation in Washington. Number one, this is an absolutely

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Speaker 1: historic day. It is a historic trip. This is um

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Speaker 1: the first time in a quarter of a century that

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Speaker 1: one of the top lawmakers in America that the third

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Speaker 1: in line from the presidency is in Taiwan. We saw

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Speaker 1: that Taiwan even projected um onto a building near the

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Speaker 1: airfield a message welcoming Speaker Pelosi and and saying that

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Speaker 1: the Taiwan and that that Taiwan loves the US. And

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Speaker 1: so it is a huge trip for those reasons. But

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Speaker 1: when you look at exactly what is going to be

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Speaker 1: accomplished here, Pelosi already put out a statement saying that

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Speaker 1: you know that this is not change how the US

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Speaker 1: sees Taiwan. It does not change US and Taiwan relationships.

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Speaker 1: The US is sticking with the status quo. But she

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Speaker 1: also notes that at this point that the US Taiwan

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Speaker 1: relationship is more important today than ever as the world

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Speaker 1: faces a choice between autocracy and democracy. Those were words

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Speaker 1: that the Speaker are released in a statement shortly after

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Speaker 1: she landed. So she's seen a larger historical context here.

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Speaker 1: I think after Russia invaded Ukraine, a lot of folks

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Speaker 1: started asking could we see similar with China and Taiwan.

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Speaker 1: And so even though this trip does not involved a

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Speaker 1: policy shift, it is sort of a signal about where

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Speaker 1: the US sees Taiwan and the allegiance that that both

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Speaker 1: have with each other. Eamily, you spend a lot of

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Speaker 1: time um in the halls of Congress. Is this something

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Speaker 1: that you know, one of those rare issues that has

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Speaker 1: support on both sides of the aisle? It does? It

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Speaker 1: really does. I mean, we saw Senate Minority Leader Mitch McConnell, certainly,

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Speaker 1: someone who's never been afraid to criticize Pelosi in the past,

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Speaker 1: basically encouraging her to go on this trip, saying that

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Speaker 1: if she didn't, she would be handing China a win.

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Speaker 1: We heard very similar rhetoric from the House Republican Leader

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Speaker 1: Kevin McCarthy. You've heard the same from em Pelosi's own party. Certainly,

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Speaker 1: there have been security concerns that we I've heard from

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Speaker 1: the Department of Defense, from the Pentagon. There's a recognition

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Speaker 1: that this is a sensitive time within the relationship between

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Speaker 1: Washington and Beijing. At the same point, I can't think

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Speaker 1: of a single House member who has really come out

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Speaker 1: and said we don't want Speaker Pelosi to be going

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Speaker 1: on this trip at this time. Certainly there this is

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Speaker 1: going to have to be a trip where the Speaker

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Speaker 1: needs to be cautious. She needs to be careful in

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Speaker 1: what words she uses in the actions that she has.

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Speaker 1: At the same point, though this is not Pelosi's first rodeo.

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Speaker 1: I mean, she went to Taneman Square and and protested

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Speaker 1: um the killings there the previous two years, and so

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Speaker 1: she understands the region, she understands the aspect, she understands

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Speaker 1: the dynamics, and certainly she's been in a position of

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Speaker 1: power long enough to to really understand what would and

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Speaker 1: would not be considered uh in line with the current

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Speaker 1: status quo. Emily, Matt and I are looking at the

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Speaker 1: live go when we see a view here appears to

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Speaker 1: be of a hotel in Taiwan. Looks like the press

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Speaker 1: corps maybe assembling here. Do we know or what do

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Speaker 1: we know of Speaker Pelosi's schedule for tomorrow in in

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Speaker 1: terms of events, in terms of press availability, that type

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Speaker 1: of thing, So we haven't gotten a ton of details

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Speaker 1: about this trip. I mean the Speaker's office. I don't

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Speaker 1: think they ever even confirmed that she was actually going

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Speaker 1: to Taiwan until the plane touched down. In this statement

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Speaker 1: came out, we didn't know that she has planning on

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Speaker 1: meeting with officials within Taiwan, within the legislature, with Taiwan's president. UM.

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Speaker 1: That those are all things on the agenda. Remember too,

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Speaker 1: this is a part of a larger trip. She was

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Speaker 1: in Singapore, she is still planning on going to Japan

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Speaker 1: and to South Korea. UM. And so it will definitely

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Speaker 1: be a very closely watched trip for Speaker Pelosi. UM.

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Speaker 1: But in the in the same at the same time, UM,

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Speaker 1: I think there are there's a sense that the most

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Speaker 1: historic thing that she's done is today simply landing here,

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Speaker 1: stepping off the plane and becoming the first Speaker in

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Speaker 1: twenty five years to do So. What kind of legislation

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Speaker 1: is um circulating in Washington and support of Taiwan because

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Speaker 1: we used to have a mutual defense treaty until we

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Speaker 1: basically quit out of it in ninety nine, Is there

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Speaker 1: anything like that on the books? So at this point

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Speaker 1: that hasn't been a giant focus. UM. The things that

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Speaker 1: you've seen Washington be really consumed with right now. Are

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Speaker 1: mostly domestic things that that reconciliation package that uh kind

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Speaker 1: of rose out of the dust the other week, UH

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Speaker 1: stuff for veterans are are very much on lawmakers minds

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Speaker 1: at this point. But you have seen really that bipartisan

430
00:23:36,320 --> 00:23:40,880
Speaker 1: willingness in Congress to pass legislation UM that would sort

431
00:23:40,880 --> 00:23:42,800
Speaker 1: of you know, slap China on the risk for human

432
00:23:42,920 --> 00:23:46,320
Speaker 1: rights abuses, UM, that would kind of continue to establish

433
00:23:46,440 --> 00:23:50,600
Speaker 1: US dominance in the markets over China. You recently saw

434
00:23:50,720 --> 00:23:54,800
Speaker 1: lawmakers take up that fifty two billion dollar deal in

435
00:23:54,920 --> 00:23:58,159
Speaker 1: semiconductors with the idea that more of them now need

436
00:23:58,280 --> 00:24:00,360
Speaker 1: to be made in the US so that the US

437
00:24:00,440 --> 00:24:03,680
Speaker 1: does not rely as much on China and partly Taiwan,

438
00:24:03,840 --> 00:24:06,879
Speaker 1: should China make some sort of move to change the

439
00:24:06,920 --> 00:24:10,280
Speaker 1: status quo there. And you know, these are the things

440
00:24:10,320 --> 00:24:12,199
Speaker 1: that I think lawmakers are are more focused on at

441
00:24:12,240 --> 00:24:14,560
Speaker 1: this time. Emily, great stuff, Thank you very much for

442
00:24:14,640 --> 00:24:17,840
Speaker 1: your reporting. Really appreciate getting the update there. Emily Wilkins,

443
00:24:18,400 --> 00:24:22,440
Speaker 1: congressional reporter for Bloomberg Government based in Washington, d C.

444
00:24:22,600 --> 00:24:25,960
Speaker 1: Giving us the latest, UH. Speaker Pelosi in Taiwan or

445
00:24:26,040 --> 00:24:32,000
Speaker 1: playing landed just moments ago. Kind you want to bring

446
00:24:32,040 --> 00:24:35,000
Speaker 1: you this interview with Uber CEO Dara kosh Roshah. He

447
00:24:35,119 --> 00:24:38,640
Speaker 1: talking about the company's recent earnings with Bloomberg's Guy Johnson

448
00:24:38,840 --> 00:24:42,600
Speaker 1: and Emily Chang. Certainly some very good numbers coming out

449
00:24:42,640 --> 00:24:45,800
Speaker 1: of there. Let's bring you that interview right now with

450
00:24:45,960 --> 00:24:48,280
Speaker 1: the CEO of Uber, Dara. Thank you so much for

451
00:24:48,400 --> 00:24:51,080
Speaker 1: joining us. A happy day, I know, when the stock

452
00:24:51,160 --> 00:24:53,200
Speaker 1: is that much in the green, you hit a record

453
00:24:53,240 --> 00:24:56,600
Speaker 1: on Booking's revenue more than doubled. Dig into some of

454
00:24:56,640 --> 00:24:58,960
Speaker 1: the trends here. What was so different about this quarter

455
00:24:59,080 --> 00:25:01,520
Speaker 1: than the last few quarters when it came to supply

456
00:25:01,880 --> 00:25:05,720
Speaker 1: and demand. Well, to some extent, it's a continuation of

457
00:25:06,160 --> 00:25:09,840
Speaker 1: the last few quarters, but we're really hitting a scale

458
00:25:09,920 --> 00:25:13,560
Speaker 1: point here, Like you said, twenty nine billion dollars in

459
00:25:13,840 --> 00:25:16,359
Speaker 1: growth bookings of thirty six percent on a year on

460
00:25:16,440 --> 00:25:19,879
Speaker 1: year basis. Uh as it relates on a constant currency

461
00:25:19,920 --> 00:25:23,720
Speaker 1: basis are ebada three hundred sixty two million, well above

462
00:25:23,760 --> 00:25:26,600
Speaker 1: our guidance range, and the guidance that we gave forward

463
00:25:26,800 --> 00:25:30,840
Speaker 1: was well above street estimates, etcetera. So an indication of

464
00:25:30,960 --> 00:25:34,200
Speaker 1: anticipated strength coming. And then a really important factor for

465
00:25:34,280 --> 00:25:37,040
Speaker 1: US is we're a free cash flow positive three two

466
00:25:37,080 --> 00:25:41,120
Speaker 1: million dollars in free cash flow, which is a big

467
00:25:41,280 --> 00:25:44,480
Speaker 1: positive factor in our being self sustaining and a profitable

468
00:25:44,560 --> 00:25:48,000
Speaker 1: going forward. And when we look at the environment, the

469
00:25:48,160 --> 00:25:51,240
Speaker 1: marketplace is more balanced. The number of new drivers that

470
00:25:51,280 --> 00:25:53,760
Speaker 1: we're adding in the US is up over seventy on

471
00:25:53,840 --> 00:25:57,359
Speaker 1: a year. On your basis surges down e t A

472
00:25:57,480 --> 00:26:00,640
Speaker 1: s or down. Uh So the business is really hitting

473
00:26:00,680 --> 00:26:02,880
Speaker 1: on all cylinders and it's reflected in the stock price,

474
00:26:02,920 --> 00:26:06,560
Speaker 1: which is great. Dara, thank you. We're looking at live

475
00:26:06,600 --> 00:26:10,199
Speaker 1: pictures from Taipei where how speaker Nancy Pelosi's motorcade has

476
00:26:10,280 --> 00:26:13,400
Speaker 1: just arrived at a Taiwan hotel. We're gonna keep monitoring,

477
00:26:13,960 --> 00:26:16,600
Speaker 1: of course, her big visit to Taiwan. I do want

478
00:26:16,600 --> 00:26:18,840
Speaker 1: to ask you a little bit about the broader environment, Dara.

479
00:26:18,960 --> 00:26:22,440
Speaker 1: I still hear people say Uber is expensive, and we're

480
00:26:22,440 --> 00:26:25,440
Speaker 1: seeing Uber benefiting from this. When you look at your

481
00:26:25,440 --> 00:26:27,920
Speaker 1: earnings and the bottom line, how do you think about

482
00:26:27,920 --> 00:26:30,480
Speaker 1: this dynamic longer term? Do you worry at all about

483
00:26:30,880 --> 00:26:33,920
Speaker 1: alienating customers when they're already getting squeezed, Given that this

484
00:26:34,080 --> 00:26:39,040
Speaker 1: is the worst inflationary environment in Uber's history, yeah, I

485
00:26:39,080 --> 00:26:41,920
Speaker 1: think inflation is hitting all of us, whether it's grocery

486
00:26:42,000 --> 00:26:45,680
Speaker 1: prices or fuel prices. And remember, uh, fuel is a

487
00:26:45,720 --> 00:26:50,040
Speaker 1: big component of our driver costs, so that affects Uber

488
00:26:50,080 --> 00:26:52,879
Speaker 1: prices as well, and you do see it in a result.

489
00:26:53,080 --> 00:26:58,840
Speaker 1: While trips were up, which is really really healthy growth growth,

490
00:26:58,920 --> 00:27:03,000
Speaker 1: bookings were up fast than that, which indicates some inflationary

491
00:27:03,119 --> 00:27:05,760
Speaker 1: effect on our results. I think the good news for

492
00:27:05,920 --> 00:27:08,639
Speaker 1: us is that surge levels are actually coming down, E

493
00:27:08,760 --> 00:27:11,399
Speaker 1: t A s are coming down, so as the marketplace

494
00:27:11,480 --> 00:27:15,080
Speaker 1: becomes more balanced, we actually see strength in terms of

495
00:27:15,200 --> 00:27:18,040
Speaker 1: trip growth going forward. And we're hoping if we do

496
00:27:18,359 --> 00:27:21,159
Speaker 1: our jobs and so far, so good onboarding more and

497
00:27:21,200 --> 00:27:25,080
Speaker 1: word drivers that prices on Uber will ease going forward.

498
00:27:25,560 --> 00:27:29,280
Speaker 1: At the same time drivers will make really strong earnings

499
00:27:29,320 --> 00:27:31,879
Speaker 1: as well. At the same time, we've heard so many

500
00:27:31,960 --> 00:27:34,640
Speaker 1: dire warnings about the economy. Jamie Diamond has said he's

501
00:27:34,640 --> 00:27:37,720
Speaker 1: preparing for an economic hurricane. I just spoke to Apple

502
00:27:37,800 --> 00:27:40,119
Speaker 1: CEO Tim Cook, who said, you know, he plans to

503
00:27:40,200 --> 00:27:43,400
Speaker 1: be deliberate in Apple spending. You said in the past

504
00:27:43,440 --> 00:27:46,080
Speaker 1: that you think Uber is recession resistant. Do you still

505
00:27:46,480 --> 00:27:50,280
Speaker 1: believe that if we continue to see these down downward trends,

506
00:27:50,440 --> 00:27:55,640
Speaker 1: and what is uber strategy to navigate continuing downward trends. Well,

507
00:27:55,680 --> 00:27:58,840
Speaker 1: I think you're certainly seeing in earn results, which is uh,

508
00:27:59,000 --> 00:28:01,200
Speaker 1: There's been a bunch of earnings results out there, and

509
00:28:01,520 --> 00:28:04,440
Speaker 1: sometimes they've been less than great. I think Uber's earnings

510
00:28:04,880 --> 00:28:09,400
Speaker 1: have been terrific in every way, top line growth, profitability

511
00:28:10,000 --> 00:28:13,240
Speaker 1: growth as well. Um at the same time, we are

512
00:28:13,400 --> 00:28:17,119
Speaker 1: being disciplined in terms of how we grow going forward.

513
00:28:17,200 --> 00:28:19,159
Speaker 1: This is why our margins are improving so much on

514
00:28:19,240 --> 00:28:22,159
Speaker 1: a year on your basis, free cash flow is now

515
00:28:22,280 --> 00:28:25,200
Speaker 1: positive as well. Because of the scale that we have

516
00:28:25,880 --> 00:28:29,359
Speaker 1: because we're in multiple businesses, both in mobility and delivery.

517
00:28:29,880 --> 00:28:32,320
Speaker 1: I think we have a kind of business that can

518
00:28:32,400 --> 00:28:35,520
Speaker 1: perform in all weather. But at the same time, we

519
00:28:35,680 --> 00:28:38,520
Speaker 1: are being disciplined in terms of costs to make sure

520
00:28:38,680 --> 00:28:42,640
Speaker 1: that as the environment, if it gets tougher, we are prepared.

521
00:28:43,080 --> 00:28:44,920
Speaker 1: The other factor that I point out to is that

522
00:28:45,560 --> 00:28:49,200
Speaker 1: you have seen, you know, during the pandemic, huge amount

523
00:28:49,200 --> 00:28:52,440
Speaker 1: of spend went into retail and out of services. Now

524
00:28:52,520 --> 00:28:55,240
Speaker 1: we're seeing the reversal of that money coming out of

525
00:28:55,280 --> 00:28:58,960
Speaker 1: retail and into services. And Uber is an ultimate service

526
00:28:59,080 --> 00:29:02,640
Speaker 1: company and we're benefiting from that, so you can expect

527
00:29:02,760 --> 00:29:06,280
Speaker 1: us to perform better than the overall environment, certainly this year.

528
00:29:06,520 --> 00:29:08,480
Speaker 1: When we look at next year, we have to be

529
00:29:08,520 --> 00:29:11,200
Speaker 1: careful because those comps can go against us, which is

530
00:29:11,520 --> 00:29:14,840
Speaker 1: why we are bringing real cost discipline into the business,

531
00:29:15,120 --> 00:29:18,160
Speaker 1: growing top line and the bottom line. So tell me

532
00:29:18,200 --> 00:29:20,840
Speaker 1: a little bit more about what you mean by discipline.

533
00:29:21,080 --> 00:29:24,000
Speaker 1: Does that could that impact hiring? You know, any plans

534
00:29:24,480 --> 00:29:27,760
Speaker 1: for layoffs or cutbacks on staff as we're seeing at

535
00:29:27,880 --> 00:29:30,840
Speaker 1: other tech companies. I think the good news for us

536
00:29:30,960 --> 00:29:34,360
Speaker 1: is with top line growth of thirty certainly no plans

537
00:29:34,400 --> 00:29:37,400
Speaker 1: for layoffs, but we are being more disciplined in terms

538
00:29:37,440 --> 00:29:41,200
Speaker 1: of headcoun growth. So we're adding headcount to key areas

539
00:29:41,280 --> 00:29:44,320
Speaker 1: Let's say Uber for business salespeople that part of our

540
00:29:44,400 --> 00:29:49,480
Speaker 1: business is growing very very quickly, or advertising business, which

541
00:29:49,560 --> 00:29:52,160
Speaker 1: is a very very high margin business and growing as well.

542
00:29:52,600 --> 00:29:56,640
Speaker 1: So we're adding heads selectively to parts of the portfolio

543
00:29:57,160 --> 00:30:00,440
Speaker 1: that are growing in really strong and power a ways.

544
00:30:00,880 --> 00:30:05,280
Speaker 1: Otherwise words scale already, we are going to leverage costs,

545
00:30:05,640 --> 00:30:08,680
Speaker 1: both variable costs and fixed costs going forward, and I

546
00:30:08,760 --> 00:30:13,440
Speaker 1: think this environment that is demanding more discipline, it's the

547
00:30:13,760 --> 00:30:19,280
Speaker 1: perfect environment for Luber competitively. Dary, Good morning, it's Guy

548
00:30:19,560 --> 00:30:23,200
Speaker 1: Um picking up on that point. How much of current

549
00:30:23,280 --> 00:30:28,000
Speaker 1: spend do you think is discretionary? You know, we do

550
00:30:28,200 --> 00:30:31,320
Speaker 1: have a fair amount of discretionary spend in terms of

551
00:30:31,440 --> 00:30:36,120
Speaker 1: marketing spend or incentive spend. We continue to have drivers

552
00:30:36,160 --> 00:30:42,200
Speaker 1: sign on bonuses or guarantees as as earnings are elevated, UH,

553
00:30:42,400 --> 00:30:45,880
Speaker 1: to make sure that drivers feel safe on boarding onto

554
00:30:45,960 --> 00:30:48,520
Speaker 1: the platform and then see their earnings the great earnings

555
00:30:49,200 --> 00:30:52,880
Speaker 1: for themselves. So there's certainly some discretionary spend and you're

556
00:30:53,000 --> 00:30:56,560
Speaker 1: seeing that in terms of the margin efficiency of the company.

557
00:30:56,880 --> 00:31:00,120
Speaker 1: Are gross profit margins, for example, are up your on

558
00:31:00,280 --> 00:31:04,200
Speaker 1: year and we are our fixed costs are growing at

559
00:31:04,320 --> 00:31:07,520
Speaker 1: much slower rates than that thirty six percent gross bookings

560
00:31:07,880 --> 00:31:13,040
Speaker 1: growth rates. We are speaking with Uber CEO Darrik Costra

561
00:31:13,160 --> 00:31:17,200
Speaker 1: Shah He I'm joined by Bluemberg's Emily Chang on Bluemberg

562
00:31:17,280 --> 00:31:19,800
Speaker 1: Television and Radio. Dar Are you talked a moment ago

563
00:31:20,160 --> 00:31:23,520
Speaker 1: about growth markets. Let's talk about markets where maybe you

564
00:31:23,600 --> 00:31:27,160
Speaker 1: are not seeing that growth. Where are you reevaluating right now?

565
00:31:27,440 --> 00:31:30,640
Speaker 1: There's been some conversations, certainly I've heard talking about the

566
00:31:30,760 --> 00:31:34,760
Speaker 1: idea that maybe you could withdraw from India. Oh, those

567
00:31:35,120 --> 00:31:37,960
Speaker 1: conversations are entirely false. We've said it a bunch of

568
00:31:38,040 --> 00:31:40,800
Speaker 1: times and I'll say it again. Our India business in

569
00:31:40,920 --> 00:31:45,640
Speaker 1: terms of mobility is at performing at excellent excellent rates.

570
00:31:45,640 --> 00:31:49,920
Speaker 1: Were very happy with that business. We did exit uh

571
00:31:50,040 --> 00:31:52,200
Speaker 1: India delivery business. We didn't think we could be a

572
00:31:52,320 --> 00:31:55,040
Speaker 1: top one or two player and there are certain markets

573
00:31:55,120 --> 00:31:58,800
Speaker 1: Brazil for example, and delivery where we decided to get out. Essentially,

574
00:31:58,880 --> 00:32:00,560
Speaker 1: if we don't think we have a chance to get

575
00:32:00,640 --> 00:32:05,160
Speaker 1: to number one within a reasonable cost, UH, we will

576
00:32:05,280 --> 00:32:08,400
Speaker 1: look to be disciplined in terms of our portfolio. But

577
00:32:08,480 --> 00:32:11,600
Speaker 1: when you look at her portfolio, both mobility and delivery

578
00:32:11,960 --> 00:32:14,760
Speaker 1: both are growing at healthy rates. Were either number one

579
00:32:14,840 --> 00:32:16,640
Speaker 1: or number two in the markets that we compete in

580
00:32:17,040 --> 00:32:20,440
Speaker 1: and we're very very confident going forward. And to be clear,

581
00:32:20,840 --> 00:32:24,120
Speaker 1: we are staying in mobility in India. We love the market.

582
00:32:25,280 --> 00:32:28,040
Speaker 1: So Dar, are you confirming there that you're selling your

583
00:32:28,080 --> 00:32:30,320
Speaker 1: steak in to motto? I mean we've heard that a

584
00:32:30,360 --> 00:32:33,360
Speaker 1: big shareholder is selling. This is the big food delivery

585
00:32:33,400 --> 00:32:37,400
Speaker 1: company in India, and there are reports that Uber is

586
00:32:37,480 --> 00:32:40,840
Speaker 1: selling at steak. Yeah, no comment on those reports. One

587
00:32:40,960 --> 00:32:44,160
Speaker 1: or the other. Okay, UM, so let's talk about the

588
00:32:44,240 --> 00:32:47,000
Speaker 1: markets to guys point about where Uber might not be

589
00:32:47,120 --> 00:32:49,920
Speaker 1: growing as much. You mentioned on the call that West

590
00:32:49,960 --> 00:32:52,760
Speaker 1: coast markets are taking a little bit longer to come back,

591
00:32:53,000 --> 00:32:56,840
Speaker 1: and I'm I'm thinking about San Francisco and how it's

592
00:32:56,840 --> 00:32:58,719
Speaker 1: been a struggle to get workers back to the office.

593
00:32:59,120 --> 00:33:01,800
Speaker 1: How are you thinking about this and Uber's, for example,

594
00:33:01,880 --> 00:33:05,600
Speaker 1: Uber's own flexible work policies. Do you see the flexibility

595
00:33:05,680 --> 00:33:09,080
Speaker 1: that you're giving workers holding up into next year for example?

596
00:33:09,600 --> 00:33:11,840
Speaker 1: Does it does feel like the tail of two coasts?

597
00:33:11,960 --> 00:33:15,400
Speaker 1: You know, when we look at the East coast New York, Miami,

598
00:33:15,640 --> 00:33:22,200
Speaker 1: even UH cities Atlanta, Austin, Dallas. Our business is coming back,

599
00:33:22,320 --> 00:33:25,440
Speaker 1: is roaring back, uh at this point, and we feel

600
00:33:25,480 --> 00:33:29,920
Speaker 1: great about that business. Now. The San Francisco markets, Los Angeles, Seattle,

601
00:33:30,280 --> 00:33:33,040
Speaker 1: they're certainly coming back. But when you look at the

602
00:33:33,120 --> 00:33:37,360
Speaker 1: absolute levels versus pre pandemic levels, UH, it's a very

603
00:33:37,640 --> 00:33:41,479
Speaker 1: very different story. UM. And you know, we'll keep pushing

604
00:33:41,680 --> 00:33:43,120
Speaker 1: and we will do our part to make sure that

605
00:33:43,160 --> 00:33:46,800
Speaker 1: we've got ample supply in those markets. UH. And the

606
00:33:46,920 --> 00:33:50,640
Speaker 1: service works very well as it relates to Uber. UH.

607
00:33:50,720 --> 00:33:52,360
Speaker 1: You know, we believe in two things. One is we

608
00:33:52,440 --> 00:33:54,480
Speaker 1: want people to get out and getting out means going

609
00:33:54,600 --> 00:33:56,720
Speaker 1: back to the office as well. And at the same time,

610
00:33:56,760 --> 00:33:59,800
Speaker 1: we believe in flexibility, so we are going with a

611
00:34:00,040 --> 00:34:03,560
Speaker 1: hybrid model. We're encouraging employees who don't want to be

612
00:34:03,640 --> 00:34:05,960
Speaker 1: remote only to come in fifty percent of the time.

613
00:34:06,320 --> 00:34:09,600
Speaker 1: And I will tell you, when you get together with

614
00:34:09,800 --> 00:34:13,120
Speaker 1: your workmates, especially in a world and an area where

615
00:34:13,160 --> 00:34:15,160
Speaker 1: you're working as hard as you are, as it relates

616
00:34:15,200 --> 00:34:17,840
Speaker 1: to Uber, especially as you care so much about your impact,

617
00:34:18,120 --> 00:34:20,880
Speaker 1: getting together in person is a great jolt of energy.

618
00:34:21,280 --> 00:34:23,799
Speaker 1: I very much believe in it. But ultimately we want

619
00:34:23,840 --> 00:34:26,600
Speaker 1: we want the best of both worlds. It's gonna get

620
00:34:26,640 --> 00:34:29,600
Speaker 1: more competitive out there. Um, you've got Amazon interesting in

621
00:34:29,640 --> 00:34:33,439
Speaker 1: grub Hub. What do you think that means for you? Well,

622
00:34:33,600 --> 00:34:37,920
Speaker 1: we're very confident of our delivery business group twelve percent

623
00:34:38,040 --> 00:34:40,920
Speaker 1: on a year on year basis constant currency, and our

624
00:34:41,000 --> 00:34:43,880
Speaker 1: share in the US has been very, very consistent. The

625
00:34:44,040 --> 00:34:47,960
Speaker 1: focus for us is to drive profitability of our delivery business.

626
00:34:48,000 --> 00:34:50,440
Speaker 1: So we had a record quarter in terms of profitability

627
00:34:50,800 --> 00:34:54,680
Speaker 1: nine million in iba DA and we expect that profitability

628
00:34:54,760 --> 00:34:58,080
Speaker 1: to increase going forward. In terms of Amazon and grub Hub,

629
00:34:58,239 --> 00:35:02,000
Speaker 1: we've seen zero material effect on us. We work with

630
00:35:02,120 --> 00:35:05,839
Speaker 1: Amazon for example in Japan, uh, and because of our

631
00:35:05,880 --> 00:35:08,320
Speaker 1: global scope and scale, we have a lot of chances

632
00:35:08,400 --> 00:35:10,960
Speaker 1: to work with different players. Amazon is a great company,

633
00:35:11,520 --> 00:35:13,839
Speaker 1: and we'll work We'll look to work with them. However,

634
00:35:13,920 --> 00:35:17,799
Speaker 1: we can now if there was an area of weakness. Uh.

635
00:35:18,320 --> 00:35:20,640
Speaker 1: You could say in the report, I'm looking at delivery.

636
00:35:21,000 --> 00:35:25,360
Speaker 1: Delivery bookings mixed, missed expectations by about a billion, and

637
00:35:25,600 --> 00:35:28,120
Speaker 1: you're forecasting it will be flat for the current quarter.

638
00:35:28,680 --> 00:35:30,960
Speaker 1: Given just how big a part of the business this

639
00:35:31,080 --> 00:35:34,759
Speaker 1: has become post pandemic, do you think a slowdown in

640
00:35:35,160 --> 00:35:39,480
Speaker 1: delivery could potentially drag down the rest? Well, I think

641
00:35:39,520 --> 00:35:42,440
Speaker 1: that the slowdown that we're seeing in delivery is is

642
00:35:42,600 --> 00:35:45,320
Speaker 1: really a measure of the comps right last year, the

643
00:35:45,400 --> 00:35:49,440
Speaker 1: delivery business of growing unbelievably quickly. If you look at

644
00:35:49,520 --> 00:35:53,600
Speaker 1: delivery growth in the U S Uber eat crew year

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00:35:53,680 --> 00:35:59,080
Speaker 1: on year, our overall US delivery business crew year on year, uh,

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00:35:59,200 --> 00:36:02,239
Speaker 1: the growth rate there we're seeing internationally is affected by

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00:36:02,360 --> 00:36:05,480
Speaker 1: comps the year before, and if you compare delivery to

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00:36:05,600 --> 00:36:08,400
Speaker 1: two years ago, both of the US and international or

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00:36:08,520 --> 00:36:11,640
Speaker 1: growing an annual rate of forty plus percent, which is

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00:36:11,760 --> 00:36:15,480
Speaker 1: super super healthy. So we're big believers in delivery. The

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Speaker 1: focus this year is really to draw profitability. We are

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00:36:19,840 --> 00:36:22,439
Speaker 1: at scale where the number one or number two player

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00:36:22,480 --> 00:36:24,640
Speaker 1: and the vast majority of markets that we compete in,

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Speaker 1: and it's time for delivery to get profitable and we

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00:36:27,880 --> 00:36:31,920
Speaker 1: are going to lead in that aspect. Wrap it up

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00:36:31,960 --> 00:36:35,759
Speaker 1: that guys, stokes up fifteen point full percent. Pretty good

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00:36:35,800 --> 00:36:37,880
Speaker 1: day at the office. That are great to catch up.

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Speaker 1: Thank you very much. Indeed, lebe dark here of course,

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Speaker 1: Blue Bugs Emily Chang, This is Blue Bug. Thanks for

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00:36:49,960 --> 00:36:53,400
Speaker 1: listening to the Bloomberg Markets podcast. You can subscribe and

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00:36:53,520 --> 00:36:57,560
Speaker 1: listen to interviews an Apple Podcasts or whatever podcast platform

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00:36:57,640 --> 00:37:00,919
Speaker 1: you prefer. I'm Matt Miller. I'm on Twitter at Matt

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Speaker 1: Miller seventy three and on Fall Sweeney I'm on Twitter

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Speaker 1: at pt sweeney. Before the podcast. You can always catch

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Speaker 1: us worldwide at Bloomberg Radio