1 00:00:01,400 --> 00:00:05,720 Speaker 1: In August of Dorak kasro Shaw, he became the CEO 2 00:00:05,800 --> 00:00:10,680 Speaker 1: of Uber, succeeding founder Travis Kalenik kasros Shaw. He manages 3 00:00:10,680 --> 00:00:14,160 Speaker 1: a company's fast growing business in sixty three countries around 4 00:00:14,200 --> 00:00:16,560 Speaker 1: the world and leads a global team of more than 5 00:00:16,680 --> 00:00:21,400 Speaker 1: twenty two thousand employees. He was previously the CEO of Expedia, 6 00:00:21,480 --> 00:00:24,080 Speaker 1: which he grew into one of the world's largest online 7 00:00:24,079 --> 00:00:28,040 Speaker 1: travel companies. Kasro Shaw he spoke with David Rubinstein, co 8 00:00:28,160 --> 00:00:30,800 Speaker 1: founder of the Carlisle Group and host of the Bloomberg 9 00:00:30,800 --> 00:00:35,400 Speaker 1: television show Peter Peer Conversations. They discussed the company, the 10 00:00:35,479 --> 00:00:39,600 Speaker 1: future of transportation and self driving vehicles. You've been the 11 00:00:39,600 --> 00:00:44,920 Speaker 1: CEO of Uber for how long now y years? And 12 00:00:45,440 --> 00:00:48,720 Speaker 1: you enjoy it. I love it, Okay. So when you 13 00:00:48,920 --> 00:00:52,320 Speaker 1: came in, the company was not public company. You've taken 14 00:00:52,320 --> 00:00:56,000 Speaker 1: the public and you've received a lot of publicity about 15 00:00:56,040 --> 00:00:59,680 Speaker 1: the I p O. Obviously, you know that the company 16 00:00:59,680 --> 00:01:03,000 Speaker 1: now I was a higher market capitalization roughly seventy two 17 00:01:03,240 --> 00:01:06,959 Speaker 1: billion dollars something like that, higher market capitalization than any 18 00:01:06,959 --> 00:01:11,400 Speaker 1: company in American capitalism history except for Facebook. This short 19 00:01:11,640 --> 00:01:15,640 Speaker 1: time after um it's I P O. Why are you 20 00:01:16,000 --> 00:01:18,440 Speaker 1: are so many people criticizing you for having a seventy 21 00:01:18,440 --> 00:01:22,280 Speaker 1: two billion dollar market cap. Well, I think that there 22 00:01:22,319 --> 00:01:26,840 Speaker 1: are many critics out there, especially for the for large companies, 23 00:01:26,880 --> 00:01:29,200 Speaker 1: that that that's a fact of life. I do think 24 00:01:29,200 --> 00:01:33,760 Speaker 1: that what's different about UH some of the technology companies 25 00:01:33,800 --> 00:01:37,960 Speaker 1: of our generation that are coming public, the so called unicorns, 26 00:01:38,080 --> 00:01:42,399 Speaker 1: is that we've actually stayed private for longer UH and 27 00:01:42,760 --> 00:01:45,680 Speaker 1: we have raised more money over a long our perd 28 00:01:45,680 --> 00:01:47,880 Speaker 1: of time, and as a result, when we come public, 29 00:01:49,040 --> 00:01:52,680 Speaker 1: we generally have bigger scale than companies who went public, 30 00:01:52,760 --> 00:01:54,840 Speaker 1: let's say the last generation of companies that that went 31 00:01:54,840 --> 00:01:57,800 Speaker 1: public as well. But my view on this is we 32 00:01:57,840 --> 00:02:01,240 Speaker 1: wanted to go public. We needed to make sure that 33 00:02:01,280 --> 00:02:03,680 Speaker 1: we are well capitalized for the next five years for 34 00:02:03,720 --> 00:02:06,080 Speaker 1: the company, and we achieve that, and now the time 35 00:02:06,160 --> 00:02:07,440 Speaker 1: is to put your head down and get the real 36 00:02:07,480 --> 00:02:10,760 Speaker 1: work done. After the company did go public, while I 37 00:02:10,840 --> 00:02:12,720 Speaker 1: kind of pointed out that it is a very high 38 00:02:12,760 --> 00:02:16,840 Speaker 1: market capitalization, UH so soon after UH It's I p O, 39 00:02:17,360 --> 00:02:19,960 Speaker 1: it did go down by about eleven which is a 40 00:02:20,040 --> 00:02:23,360 Speaker 1: record decline after an I p O. So did you 41 00:02:23,400 --> 00:02:26,280 Speaker 1: think the investment bankers didn't price it correctly or what 42 00:02:26,320 --> 00:02:27,920 Speaker 1: do you think the problem was on the I p O. 43 00:02:28,200 --> 00:02:30,200 Speaker 1: You know, I love how this interview is starting. I 44 00:02:30,240 --> 00:02:36,960 Speaker 1: really appreciate that. Um. I think that's actually the the 45 00:02:37,000 --> 00:02:39,880 Speaker 1: timing of our I p O was very much aligned 46 00:02:39,960 --> 00:02:45,600 Speaker 1: with our president's tariff wars the same day. So I 47 00:02:45,600 --> 00:02:47,840 Speaker 1: think we got caught up in a bit of a 48 00:02:47,880 --> 00:02:50,480 Speaker 1: market swirl and there's nothing you can do about that. 49 00:02:50,800 --> 00:02:53,239 Speaker 1: And what I tell the team is it's a short 50 00:02:53,360 --> 00:02:55,799 Speaker 1: term the market can be a voting machine, but long 51 00:02:55,880 --> 00:02:58,960 Speaker 1: term it's a weighing machine, and we are focused on 52 00:02:59,000 --> 00:03:02,120 Speaker 1: the waging and I'm very confident that if we as 53 00:03:02,120 --> 00:03:04,840 Speaker 1: a team execute, the market will appreciate it. By the way, 54 00:03:04,840 --> 00:03:06,400 Speaker 1: how did you get here? You didn't take an Uber? 55 00:03:06,400 --> 00:03:09,880 Speaker 1: Did you? Unfortunately, when I come here, I need some 56 00:03:09,919 --> 00:03:12,760 Speaker 1: professional secure Do you take Uber time of time? Yeah? 57 00:03:12,760 --> 00:03:15,160 Speaker 1: This weekend with the family, we're taking Ubers all over 58 00:03:15,160 --> 00:03:18,360 Speaker 1: the place. Absolutely. So when you take an uber um, 59 00:03:18,639 --> 00:03:20,600 Speaker 1: that's just that's let's talk about the ride sharing part. 60 00:03:20,639 --> 00:03:22,919 Speaker 1: You take an uber um? Do they know who you are? 61 00:03:23,480 --> 00:03:27,200 Speaker 1: It's about fifty fifty and the ones that don't know you, 62 00:03:27,520 --> 00:03:30,080 Speaker 1: you just give them comments on how good they are 63 00:03:30,200 --> 00:03:31,960 Speaker 1: or not. How do you make sure They're are very 64 00:03:31,960 --> 00:03:34,399 Speaker 1: polite and make sure that I don't slam the door, 65 00:03:35,040 --> 00:03:37,080 Speaker 1: ask them how they're doing. If I get on the 66 00:03:37,200 --> 00:03:38,839 Speaker 1: phone call, I asked them, you know, is it okay 67 00:03:38,880 --> 00:03:41,000 Speaker 1: to make a phone call, etcetera. So I try to 68 00:03:41,000 --> 00:03:42,600 Speaker 1: be as nice as I can because I'm trying to 69 00:03:42,640 --> 00:03:46,960 Speaker 1: improve my Uber ratings. Actually not as good as I've noticed. 70 00:03:47,000 --> 00:03:49,560 Speaker 1: You have said before that people shouldn't slam the doors. 71 00:03:49,600 --> 00:03:53,240 Speaker 1: Is that a big problem. Uh, it's if you're driving 72 00:03:53,480 --> 00:03:57,480 Speaker 1: a car and you've got tens twenty passengers coming in 73 00:03:57,520 --> 00:03:59,960 Speaker 1: the car is really an asset of yours, your cup 74 00:04:00,000 --> 00:04:03,320 Speaker 1: and he has roughly employees. Yes, all right, but you 75 00:04:03,400 --> 00:04:06,960 Speaker 1: have three million more show drivers, almost four million drivers 76 00:04:06,960 --> 00:04:10,040 Speaker 1: and couriers now on a global basis, you're in sixty 77 00:04:10,080 --> 00:04:13,800 Speaker 1: three countries or and five cities or something like that. 78 00:04:13,960 --> 00:04:17,080 Speaker 1: You have been briefed very effectively. Okay, impressive, all right? 79 00:04:17,320 --> 00:04:20,520 Speaker 1: Today in the United States? Is it is it increasing 80 00:04:20,560 --> 00:04:22,840 Speaker 1: in terms of users or is it going to study 81 00:04:22,920 --> 00:04:25,080 Speaker 1: or is it going down? No, it's increasing in every 82 00:04:25,080 --> 00:04:28,240 Speaker 1: single market. So the growth rates are we as a 83 00:04:28,279 --> 00:04:31,560 Speaker 1: company of the last quarter that we announced as a 84 00:04:31,640 --> 00:04:35,680 Speaker 1: newly public company, we announced that on a foreign exchange 85 00:04:35,680 --> 00:04:39,039 Speaker 1: neutral basis. We grew our bookings forty year on the year, 86 00:04:39,680 --> 00:04:43,080 Speaker 1: and this is off of a pretty considerable base of 87 00:04:43,160 --> 00:04:46,240 Speaker 1: bookings almost fifteen billion kind of run rate on a 88 00:04:46,320 --> 00:04:50,760 Speaker 1: quarterly basis. So the business is growing at very big scale, 89 00:04:50,880 --> 00:04:54,080 Speaker 1: at pretty impressive rates. But last quarter when you had 90 00:04:54,080 --> 00:04:57,320 Speaker 1: your earnings announcement, you did lose a billion dollars during 91 00:04:57,360 --> 00:04:59,919 Speaker 1: the previous quarter. Yes, I'm sure you know this by 92 00:05:00,000 --> 00:05:03,720 Speaker 1: those are details that are important, but you know so, um, 93 00:05:03,839 --> 00:05:05,800 Speaker 1: how much longer can you lose a billion dollars a 94 00:05:05,880 --> 00:05:09,840 Speaker 1: quarter and keep going? We have a very significant amount 95 00:05:09,839 --> 00:05:11,760 Speaker 1: of cash in the bank. You've got eight billion dollars 96 00:05:11,800 --> 00:05:13,640 Speaker 1: from the I p O. And you already had some money. Yeah, 97 00:05:13,680 --> 00:05:15,880 Speaker 1: we we already had some money. So the company at 98 00:05:15,880 --> 00:05:21,200 Speaker 1: this point is incredibly well capitalized, uh to keep investing. 99 00:05:21,279 --> 00:05:25,440 Speaker 1: And the markets that were going after the transportation of people, 100 00:05:25,680 --> 00:05:30,320 Speaker 1: food trade, these are these markets represent sixteen trillion dollar 101 00:05:30,480 --> 00:05:32,400 Speaker 1: markets that were going after all, right, and if you 102 00:05:32,440 --> 00:05:36,320 Speaker 1: look at even Uber, the ride share business itself, when 103 00:05:36,320 --> 00:05:39,160 Speaker 1: you look at our audience of the countries in which 104 00:05:39,200 --> 00:05:43,720 Speaker 1: we operate, typically we are addressing no more than two 105 00:05:44,920 --> 00:05:47,800 Speaker 1: of the population of these countries. So we think it's 106 00:05:47,839 --> 00:05:52,320 Speaker 1: time to lean forward. The business itself can be quite profitable. 107 00:05:52,320 --> 00:05:55,440 Speaker 1: We're confident of that. But the next two three four 108 00:05:55,520 --> 00:05:57,600 Speaker 1: years are going to be about growth, and then we'll 109 00:05:57,600 --> 00:05:59,800 Speaker 1: flip it over as the market demands. So if I 110 00:06:00,000 --> 00:06:01,920 Speaker 1: to the have a ride share, let's say, ready after 111 00:06:01,960 --> 00:06:04,359 Speaker 1: this interview and go somewhere, why should I pick Uber 112 00:06:04,560 --> 00:06:08,040 Speaker 1: versus your competitors, let's say Lift or V. I think 113 00:06:08,040 --> 00:06:10,960 Speaker 1: we have lots of competitors who are very good at 114 00:06:11,000 --> 00:06:16,400 Speaker 1: what at what they do. I think we typically in 115 00:06:16,520 --> 00:06:18,840 Speaker 1: most markets and pretty much every market that we operate, 116 00:06:18,880 --> 00:06:21,440 Speaker 1: we have the greatest number of drivers out of the market, 117 00:06:21,760 --> 00:06:23,880 Speaker 1: so we've got the best liquidity, so you're probably going 118 00:06:23,920 --> 00:06:26,120 Speaker 1: to get the best e t A so you'll get 119 00:06:26,120 --> 00:06:29,920 Speaker 1: the quickest driver to to pick you up. The choices 120 00:06:30,000 --> 00:06:32,680 Speaker 1: that we have are pretty impressive. So for example, in 121 00:06:32,680 --> 00:06:36,000 Speaker 1: in d C, now we have transit schedules right on 122 00:06:36,040 --> 00:06:39,960 Speaker 1: the app, So we really want to move from a 123 00:06:40,120 --> 00:06:43,919 Speaker 1: ride hailing app to essentially your transportation partner, so that 124 00:06:43,960 --> 00:06:45,480 Speaker 1: if you're trying to get from A to B, we're 125 00:06:45,480 --> 00:06:47,880 Speaker 1: gonna give you all the information that you have, which 126 00:06:48,160 --> 00:06:50,640 Speaker 1: many of our competitors don't do. To be able to 127 00:06:50,640 --> 00:06:54,320 Speaker 1: get from A to B with a tradeoff of time, convenience, 128 00:06:54,400 --> 00:06:59,000 Speaker 1: and price as well. So right now you have many 129 00:06:59,040 --> 00:07:02,440 Speaker 1: different businesses. Ride sharing is the one that you're most 130 00:07:02,520 --> 00:07:05,360 Speaker 1: famous for, but actually it's more profitable I think for 131 00:07:05,400 --> 00:07:08,039 Speaker 1: you is Uber eats? Is that right? Uber Eats is 132 00:07:08,040 --> 00:07:11,600 Speaker 1: more profitable now. Ride sharing is is more profitable in 133 00:07:11,680 --> 00:07:14,800 Speaker 1: most markets. It's it's the more mature part of the business. 134 00:07:14,880 --> 00:07:17,280 Speaker 1: The Uber eats business is now about twenty percent of 135 00:07:17,320 --> 00:07:20,880 Speaker 1: our business. It's growing over a hundred percent on a year. 136 00:07:20,920 --> 00:07:23,480 Speaker 1: On your basis, the run rate is is enormous. We're 137 00:07:23,520 --> 00:07:28,320 Speaker 1: now the largest UH food delivery player ex China, and 138 00:07:28,440 --> 00:07:31,920 Speaker 1: we entered this business three years ago as a revenue percentage. 139 00:07:32,000 --> 00:07:35,120 Speaker 1: Right now it's what percentage of you it's about of 140 00:07:35,120 --> 00:07:38,920 Speaker 1: our booking. How many cities that in eats is now 141 00:07:39,040 --> 00:07:41,760 Speaker 1: in over five hundred cities. What's the most popular food 142 00:07:41,960 --> 00:07:46,200 Speaker 1: that on your Uber eats? Fried chicken is magic fried chicken? 143 00:07:46,800 --> 00:07:48,720 Speaker 1: And how do you keep the grease from kind of 144 00:07:49,720 --> 00:07:53,080 Speaker 1: going through? I mean they just David, I'm covering that 145 00:07:53,200 --> 00:07:56,160 Speaker 1: in my next next monthly business review. I haven't gone 146 00:07:56,200 --> 00:08:00,240 Speaker 1: to fried chicken grease? Okay, that's the most popular. Yeah, 147 00:08:01,640 --> 00:08:03,680 Speaker 1: let's talk about some of your other businesses over here. 148 00:08:03,760 --> 00:08:06,960 Speaker 1: You have, I guess, your scooter business and your electric 149 00:08:07,160 --> 00:08:10,720 Speaker 1: bike business. So the scooter business um is all over 150 00:08:10,720 --> 00:08:13,360 Speaker 1: the United States and around the world. Are Uh, it's 151 00:08:13,440 --> 00:08:17,400 Speaker 1: in about twenty five cities now and expanding mostly in 152 00:08:17,440 --> 00:08:19,960 Speaker 1: the US, but we're spending into Europe pretty quickly as well. 153 00:08:20,320 --> 00:08:22,720 Speaker 1: You have your scooter that's manufactured just for you, is it? 154 00:08:22,880 --> 00:08:25,320 Speaker 1: There's it different than the scooters and other companies use. 155 00:08:25,960 --> 00:08:29,040 Speaker 1: We are building a scooter that's manufactured just for us. 156 00:08:29,040 --> 00:08:31,400 Speaker 1: The bike is manufactured just by us, and it's designed 157 00:08:31,400 --> 00:08:35,439 Speaker 1: by us, totally proprietary. Now, some people say scooters are dangerous. 158 00:08:35,440 --> 00:08:39,240 Speaker 1: What do you say about that? I think that that 159 00:08:39,559 --> 00:08:43,200 Speaker 1: is It's something that we're watching pretty carefully. Uh, and 160 00:08:43,280 --> 00:08:46,400 Speaker 1: we are working on technologies to modulate those issues. So, 161 00:08:46,480 --> 00:08:50,880 Speaker 1: for example, when scooters get too very busy parts of town, 162 00:08:51,440 --> 00:08:54,480 Speaker 1: we will slow them down. Uh. Some of these scooters 163 00:08:54,520 --> 00:08:57,240 Speaker 1: early on, they went as as high as twenty miles 164 00:08:57,240 --> 00:08:59,560 Speaker 1: an hour. Now we're working with cities to say, hey, 165 00:08:59,559 --> 00:09:02,679 Speaker 1: how asked do you think is a responsible speed. We 166 00:09:02,800 --> 00:09:05,080 Speaker 1: encourage our writers to our helmets. Now you have a 167 00:09:05,080 --> 00:09:11,559 Speaker 1: new product which is helicopters. Yes, yes, Okay, now you've 168 00:09:11,679 --> 00:09:13,400 Speaker 1: launched that in a couple of cities, so from New 169 00:09:13,440 --> 00:09:16,040 Speaker 1: York City so far we have yes, and it's a 170 00:09:16,080 --> 00:09:20,600 Speaker 1: service from downtown New York to JFK. Are great demand 171 00:09:20,640 --> 00:09:24,400 Speaker 1: for that. What we'll see um as as you may know, 172 00:09:24,559 --> 00:09:26,959 Speaker 1: going to JFK during rush hour in New York City 173 00:09:27,040 --> 00:09:30,800 Speaker 1: is a mess. Uh And and really what we are 174 00:09:30,880 --> 00:09:33,280 Speaker 1: trying to what is that to do? If you want 175 00:09:33,280 --> 00:09:36,600 Speaker 1: to go from downtown Manhattan to JFK, what is that 176 00:09:36,840 --> 00:09:41,160 Speaker 1: an ubercopter? Yes, about two ducks, which is actually fairly 177 00:09:41,200 --> 00:09:44,080 Speaker 1: if you take if you're going from downtown New York 178 00:09:44,120 --> 00:09:47,760 Speaker 1: to JFK within uber black, it's going to cost close 179 00:09:47,800 --> 00:09:51,120 Speaker 1: to two dollars anyway. So the magic about being able 180 00:09:51,160 --> 00:09:53,760 Speaker 1: to do it in a helicopter is that we're bringing 181 00:09:53,800 --> 00:09:58,120 Speaker 1: in demand from thousands of users who are going to JFK, 182 00:09:58,720 --> 00:10:01,160 Speaker 1: and we're matching three or for users and we're putting 183 00:10:01,160 --> 00:10:03,240 Speaker 1: them in the same vehicle. So one of the keys 184 00:10:03,240 --> 00:10:06,520 Speaker 1: in terms of traffic is most people drive alone, and 185 00:10:06,559 --> 00:10:09,760 Speaker 1: that's a that's a huge waste of our roads, is 186 00:10:09,800 --> 00:10:12,680 Speaker 1: a huge waste of gas, etcetera. And we have a 187 00:10:12,720 --> 00:10:15,440 Speaker 1: protocol pool while we're matched two or three or four 188 00:10:15,920 --> 00:10:20,880 Speaker 1: different riders into one car. And essentially our ubercopter is 189 00:10:21,040 --> 00:10:24,400 Speaker 1: pool for the air. And what you'll see is that 190 00:10:24,480 --> 00:10:27,760 Speaker 1: these helicopters are going to be replaced by a generation 191 00:10:28,360 --> 00:10:32,360 Speaker 1: of electrically powered vertical takeoff and landing. Now will they 192 00:10:32,360 --> 00:10:37,679 Speaker 1: ever be driverless? They will eventually be driverless, but we 193 00:10:37,800 --> 00:10:40,520 Speaker 1: are absolutely going to start with pilots. I think it's 194 00:10:40,520 --> 00:10:42,560 Speaker 1: a safer way to go, but I think you you 195 00:10:42,600 --> 00:10:46,440 Speaker 1: can expect that in the aviation industry in general, UM 196 00:10:46,559 --> 00:10:51,080 Speaker 1: they are absolutely taking a look at either computers assisting 197 00:10:51,480 --> 00:10:53,679 Speaker 1: pilots more and more. There are some controversies with that 198 00:10:54,360 --> 00:10:57,720 Speaker 1: or over a long long period of time, uh, going 199 00:10:57,800 --> 00:11:03,439 Speaker 1: driverlesss or pilotless. Let's talk about your driverless or autonomous business. Yeah, 200 00:11:03,480 --> 00:11:06,199 Speaker 1: you took a lot of people from Carnegie Mellon. Yes 201 00:11:06,280 --> 00:11:08,800 Speaker 1: we didn't out of the robotics department. And you have 202 00:11:08,920 --> 00:11:11,240 Speaker 1: said recently that you think it's not going to happen 203 00:11:11,400 --> 00:11:15,360 Speaker 1: so quickly as people have previously said. How long will 204 00:11:15,400 --> 00:11:19,120 Speaker 1: it be before your UM ride ride program or your 205 00:11:19,200 --> 00:11:23,400 Speaker 1: driver program is one where there's no drivers, no drivers. 206 00:11:23,400 --> 00:11:26,120 Speaker 1: I think it'll be it'll be fifteen plus years. I 207 00:11:25,960 --> 00:11:28,240 Speaker 1: think it will take a long time. So I think 208 00:11:28,280 --> 00:11:32,680 Speaker 1: there's this drama around robots replacing humans, and I think 209 00:11:32,679 --> 00:11:35,840 Speaker 1: the reality of life is that the better thing that 210 00:11:35,920 --> 00:11:40,400 Speaker 1: humans alone and robots alone or robots and humans working together, okay, 211 00:11:40,440 --> 00:11:44,600 Speaker 1: And and and so robots are very well designed for 212 00:11:44,720 --> 00:11:50,720 Speaker 1: replacing repetitive um predictable behaviors. Most of driving is not 213 00:11:50,840 --> 00:11:54,400 Speaker 1: either repetitive or predictable, but there's a subset of routes 214 00:11:54,440 --> 00:11:57,280 Speaker 1: that are. So what you'll see with our driverless program 215 00:11:57,320 --> 00:11:59,320 Speaker 1: is at one, we're going to be incredibly careful and 216 00:11:59,320 --> 00:12:03,679 Speaker 1: we're gonna make sure safety absolutely comes first. But we 217 00:12:03,760 --> 00:12:06,040 Speaker 1: are building our driver list program, and by the way, 218 00:12:06,080 --> 00:12:09,120 Speaker 1: we're working with third parties as well, within a context 219 00:12:09,160 --> 00:12:12,160 Speaker 1: of a network where for example, in d C, we 220 00:12:12,200 --> 00:12:15,600 Speaker 1: are data scientists know what are the one percent easiest 221 00:12:15,600 --> 00:12:18,280 Speaker 1: trips in d C UH And an easy trip in 222 00:12:18,360 --> 00:12:21,480 Speaker 1: d C may may be avoid a round about, avoid 223 00:12:21,640 --> 00:12:24,920 Speaker 1: an unprotected left turn, stay away, let's say, from the airports, 224 00:12:25,120 --> 00:12:27,800 Speaker 1: stay on areas that are very very well mapped. There 225 00:12:27,840 --> 00:12:30,440 Speaker 1: are a set of routes that are incredibly easy to drive. 226 00:12:30,880 --> 00:12:32,400 Speaker 1: And what you'll see with us as far as our 227 00:12:32,480 --> 00:12:35,600 Speaker 1: driver list program is we will get the machines to 228 00:12:35,679 --> 00:12:38,240 Speaker 1: do the simple stuff, and then we will have the 229 00:12:38,320 --> 00:12:41,280 Speaker 1: humans do the difficult stuff, and the two are going 230 00:12:41,320 --> 00:12:45,440 Speaker 1: to coexist for ten fifteen years, for long period of time, 231 00:12:45,559 --> 00:12:48,160 Speaker 1: versus kind of the let's say the drama that the 232 00:12:48,280 --> 00:12:52,079 Speaker 1: that the press work. Your fifteen year answer was intended 233 00:12:52,120 --> 00:12:54,640 Speaker 1: to mean no drivers at all, but you expect to 234 00:12:54,640 --> 00:12:58,679 Speaker 1: have some driverless or autonomous vehicles uh in a year 235 00:12:58,720 --> 00:13:01,280 Speaker 1: or two or three or four. Within the next five years, 236 00:13:01,400 --> 00:13:04,680 Speaker 1: you can see some driver list vehicles out in the markets. 237 00:13:04,720 --> 00:13:06,120 Speaker 1: And again I think it's going to be in a 238 00:13:06,240 --> 00:13:09,319 Speaker 1: very very limited way. Now, you spun off your autonomous 239 00:13:09,400 --> 00:13:12,439 Speaker 1: or driver lists part of your company to a separate company. 240 00:13:12,600 --> 00:13:16,479 Speaker 1: Why did you do that? We created a separate company 241 00:13:16,520 --> 00:13:21,319 Speaker 1: that where we were able to bring in some investors 242 00:13:21,800 --> 00:13:26,000 Speaker 1: and some partners, UH Toyota, who is as you know, 243 00:13:26,080 --> 00:13:27,800 Speaker 1: a huge O E. M. And we have a terrific 244 00:13:27,800 --> 00:13:31,000 Speaker 1: partnership with Toyota Denso, which is a Toyota company as 245 00:13:31,040 --> 00:13:35,080 Speaker 1: well that is very strong in manufacturing kits and sensors 246 00:13:35,160 --> 00:13:37,960 Speaker 1: and other parts of the car. Um and really bringing 247 00:13:37,960 --> 00:13:42,640 Speaker 1: in Toyota and Denso was about building these autonomous vehicles 248 00:13:42,679 --> 00:13:47,080 Speaker 1: at scale. And then we also brought in um Masa 249 00:13:47,160 --> 00:13:50,640 Speaker 1: and soft Bank as a financial partner as well. SoftBank 250 00:13:50,720 --> 00:13:53,959 Speaker 1: is your biggest single investor still yes, And they went 251 00:13:53,960 --> 00:13:56,720 Speaker 1: in at evaluation that is above or right where you 252 00:13:56,760 --> 00:14:01,000 Speaker 1: currently are below. SoftBank got a decent and I think 253 00:14:01,000 --> 00:14:03,560 Speaker 1: it will get more decent with time. So when was 254 00:14:03,600 --> 00:14:06,640 Speaker 1: the company actually first started and who actually started the company? 255 00:14:06,960 --> 00:14:10,600 Speaker 1: The company was started about nine years ago and it 256 00:14:10,679 --> 00:14:14,800 Speaker 1: was started by Garrett Camp who is an entrepreneur. He's 257 00:14:14,840 --> 00:14:18,520 Speaker 1: still on a board. He's he's unbelievably smart guy. Uh 258 00:14:18,520 --> 00:14:22,240 Speaker 1: So he brought on Travis Kalenik, who is our former 259 00:14:22,320 --> 00:14:24,880 Speaker 1: CEO and one of the founders as well. And so 260 00:14:25,040 --> 00:14:27,320 Speaker 1: Garrett and Travis and then another one of our founds 261 00:14:27,480 --> 00:14:30,840 Speaker 1: Ryan really teamed up to build this thing. How many 262 00:14:30,880 --> 00:14:34,000 Speaker 1: of the people who were there at the beginning, And um, 263 00:14:34,200 --> 00:14:35,960 Speaker 1: I've on a lot of stock, in fact, a lot 264 00:14:35,960 --> 00:14:37,640 Speaker 1: of people in the company, oh more stock than you do. 265 00:14:37,880 --> 00:14:41,320 Speaker 1: You're the CEO. You think you're underpaid because you know 266 00:14:41,520 --> 00:14:43,360 Speaker 1: you're you've taken a public and you don't own as 267 00:14:43,440 --> 00:14:45,120 Speaker 1: much stock as some people working for you. Is that 268 00:14:45,160 --> 00:14:47,680 Speaker 1: a problem for you? Uh? It is? I would never 269 00:14:47,760 --> 00:14:53,080 Speaker 1: claim that I'm underpaid. You grew up not in the 270 00:14:53,160 --> 00:14:55,960 Speaker 1: United States. Where were you born? I was born in Iran, 271 00:14:56,000 --> 00:14:59,800 Speaker 1: actually okay, And uh, why did you leave Iran? I 272 00:15:00,000 --> 00:15:04,320 Speaker 1: after Iran in I was nine years old and this 273 00:15:04,480 --> 00:15:08,640 Speaker 1: was with when the Iranian Revolution happened. Uh. My family 274 00:15:08,960 --> 00:15:13,200 Speaker 1: was an industrial family while off and when the show 275 00:15:13,400 --> 00:15:17,040 Speaker 1: was overthrown. Uh, folks like my family were no longer 276 00:15:17,080 --> 00:15:19,680 Speaker 1: welcoming Iran. So we left Iran and we went to 277 00:15:19,760 --> 00:15:24,120 Speaker 1: France actually to wait until things calmed down. And things 278 00:15:24,160 --> 00:15:27,160 Speaker 1: never calmed down. Uh. And then we went from France 279 00:15:27,160 --> 00:15:31,200 Speaker 1: to Irvington, New York, where we stayed in my uncle's 280 00:15:31,240 --> 00:15:33,440 Speaker 1: house because we had no no other place to stay. 281 00:15:33,520 --> 00:15:36,800 Speaker 1: So you went to high school in in uh, in Terrytown, 282 00:15:36,800 --> 00:15:39,800 Speaker 1: New York. Happy school. And then you went to Brown. Yes, 283 00:15:39,960 --> 00:15:44,760 Speaker 1: I studied bioelectrical engineering and Brown and then threw it 284 00:15:44,760 --> 00:15:46,280 Speaker 1: all the way to be an investment banker in New 285 00:15:46,360 --> 00:15:48,600 Speaker 1: York City. So go figure. So you were at Alan 286 00:15:48,600 --> 00:15:51,560 Speaker 1: and Company for the years, and uh, you didn't want 287 00:15:51,560 --> 00:15:53,760 Speaker 1: to go into private equity. The higher calling of investment 288 00:15:53,760 --> 00:15:56,640 Speaker 1: banking was good enough. You know. It was a question 289 00:15:56,640 --> 00:15:58,840 Speaker 1: of just how evil I wanted to be, and I 290 00:15:58,880 --> 00:16:02,440 Speaker 1: wanted to be. It's a little less either, Okay, all right, Okay, 291 00:16:03,040 --> 00:16:06,400 Speaker 1: you could have gone to hedge funds everywhere, that's the ultimate. Okay, Well, 292 00:16:06,480 --> 00:16:09,240 Speaker 1: well that I would have had horns. Okay. So you're 293 00:16:09,240 --> 00:16:11,280 Speaker 1: minding your own business and alan company, and then all 294 00:16:11,280 --> 00:16:14,160 Speaker 1: of a sudden you've got to work for Barry Barry Diller. Yes, 295 00:16:14,200 --> 00:16:17,640 Speaker 1: how did he know of you? I was a grunt 296 00:16:17,720 --> 00:16:21,880 Speaker 1: analyst on a deal for Barry Dealer. Barry Dealer was 297 00:16:22,280 --> 00:16:26,120 Speaker 1: this was he was bidding against some of their red Stone. 298 00:16:26,120 --> 00:16:29,040 Speaker 1: It was a big battle in in Wall Street. He 299 00:16:29,080 --> 00:16:31,960 Speaker 1: was bidding against some of the rest for Paramount. It 300 00:16:32,040 --> 00:16:34,360 Speaker 1: was a back and forth, it was. It was an 301 00:16:34,440 --> 00:16:38,280 Speaker 1: unfriendly bid he was. He was not wanted, but we 302 00:16:38,360 --> 00:16:40,840 Speaker 1: put up a big fight. And I got to know 303 00:16:41,000 --> 00:16:43,240 Speaker 1: Barry over that period of time, and I thought to myself, 304 00:16:43,280 --> 00:16:45,280 Speaker 1: you know, if I ever had the chance to work 305 00:16:45,320 --> 00:16:47,800 Speaker 1: for that person, I want to work for that person. 306 00:16:47,840 --> 00:16:49,960 Speaker 1: And and I got the chance eventually. All right, So 307 00:16:50,040 --> 00:16:52,320 Speaker 1: you went to work for him? Yes? And then ultimately 308 00:16:52,560 --> 00:16:55,640 Speaker 1: um one of the companies he owned was Expedia, Yes, 309 00:16:56,200 --> 00:16:59,440 Speaker 1: and the own it before you joined or you I was, 310 00:16:59,560 --> 00:17:03,120 Speaker 1: So I went to work for him as the deal person. Uh. 311 00:17:03,160 --> 00:17:04,960 Speaker 1: And so we did a bunch of deals and brought 312 00:17:05,040 --> 00:17:08,040 Speaker 1: in companies in the travel space. We bought both Hotels 313 00:17:08,080 --> 00:17:10,840 Speaker 1: dot Com and Expedia. Uh. And they were part of 314 00:17:10,840 --> 00:17:12,600 Speaker 1: the family, and they were part of the family to 315 00:17:12,640 --> 00:17:14,320 Speaker 1: some sent because of the deals that we did when 316 00:17:14,320 --> 00:17:16,440 Speaker 1: I came in. All right, so you became the CEO 317 00:17:16,520 --> 00:17:19,320 Speaker 1: of Expedia. I did, yes. And did you have any 318 00:17:19,320 --> 00:17:20,880 Speaker 1: experience in being a c O? Why did he think 319 00:17:20,880 --> 00:17:22,719 Speaker 1: you'd be good at being a c O? Um? He 320 00:17:22,800 --> 00:17:26,280 Speaker 1: was desperate? Okay, so h we we were in a 321 00:17:26,320 --> 00:17:29,960 Speaker 1: situation where um, one of the founders of Expedia, who 322 00:17:30,000 --> 00:17:33,000 Speaker 1: was running speedy at the time, decided And this kind 323 00:17:33,000 --> 00:17:36,800 Speaker 1: of stuff happens very naturally, which is founding a company. 324 00:17:36,880 --> 00:17:39,679 Speaker 1: Building a company is different from managing it and moving 325 00:17:39,680 --> 00:17:43,399 Speaker 1: it into a mature state. Uh. And Uh, this person 326 00:17:43,480 --> 00:17:46,639 Speaker 1: decided that, Hey, I'm not up for the CEO gig anymore, Barry, 327 00:17:46,680 --> 00:17:49,760 Speaker 1: can you find a replacement? Um? And you were not 328 00:17:49,800 --> 00:17:52,400 Speaker 1: the first. Uh. You know, I have no idea. I've 329 00:17:52,400 --> 00:17:53,919 Speaker 1: never asked him, but I raised my hand and he 330 00:17:53,920 --> 00:17:56,720 Speaker 1: said yes. All right. And one point, the Expedia board 331 00:17:56,720 --> 00:17:59,160 Speaker 1: gave you, I guess some stock options that were worth 332 00:17:59,160 --> 00:18:02,960 Speaker 1: a hundred eighty million dollars. I guess they did based 333 00:18:02,960 --> 00:18:06,320 Speaker 1: on theoretical values. Okay, And then all of a sudden, 334 00:18:06,359 --> 00:18:08,000 Speaker 1: while you're doing a very good job running it and 335 00:18:08,040 --> 00:18:10,359 Speaker 1: maybe gonna get a hundred eighty million on theoretical value, 336 00:18:10,359 --> 00:18:13,639 Speaker 1: at some point, Um, somebody asked you to interview for 337 00:18:13,680 --> 00:18:16,800 Speaker 1: the job of being the CEO of Ubers. And did 338 00:18:16,840 --> 00:18:20,040 Speaker 1: you say I already have a job or yeah? At first, 339 00:18:20,080 --> 00:18:23,520 Speaker 1: when I got called that, I said no way. But 340 00:18:23,720 --> 00:18:26,600 Speaker 1: then I I talked to a couple of friends, and 341 00:18:26,600 --> 00:18:30,080 Speaker 1: and you know, you don't get too many chances as 342 00:18:30,080 --> 00:18:34,160 Speaker 1: a professional or otherwise too to work at and especially 343 00:18:34,280 --> 00:18:37,800 Speaker 1: lead a company that I think is a part of 344 00:18:37,840 --> 00:18:40,000 Speaker 1: how we live life. And I just saw it in 345 00:18:40,040 --> 00:18:42,159 Speaker 1: that in this case, this is a once in a 346 00:18:42,200 --> 00:18:44,840 Speaker 1: life opportunity. Did you tell Barry Dealer you were interviewing 347 00:18:44,880 --> 00:18:48,359 Speaker 1: for this? I did. I did very early. As you know, 348 00:18:48,560 --> 00:18:51,320 Speaker 1: the press was all over the place. You don't think 349 00:18:51,359 --> 00:18:56,760 Speaker 1: you could have kept a secret? I guess yeah, I couldn't. Barry. Um, 350 00:18:57,560 --> 00:19:00,040 Speaker 1: I have Barry to thank for pretty much everything in 351 00:19:00,119 --> 00:19:03,760 Speaker 1: my professional career. Uh, And I could not bear the 352 00:19:03,800 --> 00:19:07,360 Speaker 1: possibility of his hearing about this from some news report. 353 00:19:08,240 --> 00:19:12,520 Speaker 1: Uh so he was the first person that called UM. 354 00:19:12,520 --> 00:19:16,199 Speaker 1: He was pretty unhappy at the beginning, but then he 355 00:19:16,280 --> 00:19:17,960 Speaker 1: called me back. We had a series of conversation. He 356 00:19:18,080 --> 00:19:20,119 Speaker 1: called me back and he said, listen, I understand why 357 00:19:20,160 --> 00:19:22,520 Speaker 1: you're doing this. Let me know how I can be helpful. 358 00:19:23,040 --> 00:19:25,840 Speaker 1: And he was genuinely helpful as we went along this journey, 359 00:19:25,880 --> 00:19:28,119 Speaker 1: and and uh, you know, we are where we are now. 360 00:19:28,240 --> 00:19:30,160 Speaker 1: And he didn't remind you of the hundred eighty million 361 00:19:30,160 --> 00:19:33,639 Speaker 1: dollars in stockhoferce. He didn't PERMANI of that or um. 362 00:19:33,800 --> 00:19:36,159 Speaker 1: He understood that the reason why I would do this 363 00:19:36,280 --> 00:19:38,920 Speaker 1: was not necessarily monetary. So when you came in, you 364 00:19:38,960 --> 00:19:42,000 Speaker 1: were replacing Travis Kalenik, who was one of the founders 365 00:19:42,000 --> 00:19:44,159 Speaker 1: and a big careholder, one of the biggest shareholders, but 366 00:19:44,200 --> 00:19:46,680 Speaker 1: he still was on your board. Yes, So was that 367 00:19:46,760 --> 00:19:49,879 Speaker 1: awkward to be the CEO replacing somebody who's still on 368 00:19:49,920 --> 00:19:51,840 Speaker 1: the board a big shareholder. Was that easy to do 369 00:19:52,000 --> 00:19:56,240 Speaker 1: or not? Yeah, listen, I'm I'm the I feel the 370 00:19:56,280 --> 00:19:58,800 Speaker 1: same way. I'm on the board of Expedia and I'm 371 00:19:58,800 --> 00:20:01,920 Speaker 1: the former CEO and there's a new CEO who actually 372 00:20:01,960 --> 00:20:05,280 Speaker 1: I picked Marco Christram, Who's Who's who's the board CEO? 373 00:20:05,359 --> 00:20:08,199 Speaker 1: And I'll tell you being a former CEO, it's a 374 00:20:08,240 --> 00:20:13,639 Speaker 1: little weird sitting there and having someone else do something 375 00:20:13,720 --> 00:20:16,720 Speaker 1: differently with your baby, because I think Uber feels like 376 00:20:16,760 --> 00:20:20,800 Speaker 1: Travis's baby and Expedia felt like mine, And it's a 377 00:20:20,840 --> 00:20:23,240 Speaker 1: little weird. But you know what. You you're respectful, you 378 00:20:23,240 --> 00:20:25,240 Speaker 1: get out of the way, you give the CEO support, 379 00:20:25,600 --> 00:20:27,239 Speaker 1: and I think Travis has done the same for me. 380 00:20:27,560 --> 00:20:31,119 Speaker 1: So it's is it weird, yes? But are we in 381 00:20:31,119 --> 00:20:33,920 Speaker 1: a situation where we're respectful and comfortable and is he 382 00:20:34,040 --> 00:20:36,520 Speaker 1: there for me when I need his advice? Yes? And 383 00:20:36,640 --> 00:20:39,720 Speaker 1: what's the biggest challenge you currently see the company facing? 384 00:20:40,400 --> 00:20:42,960 Speaker 1: Maybe the biggest challenge that that we have is a 385 00:20:43,400 --> 00:20:45,600 Speaker 1: is a common challenge that you see with some of 386 00:20:45,640 --> 00:20:49,399 Speaker 1: the large technology companies out there, which is there is 387 00:20:49,440 --> 00:20:54,040 Speaker 1: an increasing regulatory burden uh that is coming on some 388 00:20:54,160 --> 00:20:57,120 Speaker 1: of the tech company some of it deserved. Let's suppose 389 00:20:57,160 --> 00:20:58,800 Speaker 1: I have some extra money and I wanted to buy 390 00:20:58,840 --> 00:21:01,760 Speaker 1: into a company like yours. Why should I buy you? 391 00:21:01,800 --> 00:21:04,040 Speaker 1: I think you have some extra money, don't you never 392 00:21:04,080 --> 00:21:07,080 Speaker 1: have enough? But well, why should I buy your stock? 393 00:21:07,800 --> 00:21:09,919 Speaker 1: Is it likely to go up from where it is, 394 00:21:10,000 --> 00:21:12,760 Speaker 1: and why is it likely to outperform some of your competitors. 395 00:21:13,560 --> 00:21:16,159 Speaker 1: I have no idea where it's going next week or 396 00:21:16,200 --> 00:21:20,080 Speaker 1: next month, but over a long period of time, we 397 00:21:20,200 --> 00:21:26,000 Speaker 1: are at the cusp of a transportation revolution. We are 398 00:21:26,080 --> 00:21:30,399 Speaker 1: we We are the player that's global. We're the player 399 00:21:30,480 --> 00:21:33,960 Speaker 1: that is multiproduct in terms of moving people, food, things 400 00:21:33,960 --> 00:21:36,280 Speaker 1: with our freight business as well. We have a much 401 00:21:36,359 --> 00:21:38,920 Speaker 1: larger scope than any of the other players out there. 402 00:21:39,280 --> 00:21:41,919 Speaker 1: And I tell you that ourselves and many of our 403 00:21:41,960 --> 00:21:45,200 Speaker 1: competitors are going to do great because this is about 404 00:21:45,880 --> 00:21:49,720 Speaker 1: replacing car ownership. This is about redefining how cities are shaped. 405 00:21:49,760 --> 00:21:53,360 Speaker 1: This is about shaping how people move in urban centers. 406 00:21:53,560 --> 00:21:56,440 Speaker 1: The summarize, what would you like the average person who's 407 00:21:56,480 --> 00:22:00,360 Speaker 1: listening to know about Uber and his future? I think 408 00:22:00,440 --> 00:22:02,840 Speaker 1: what what I want you to know is that we 409 00:22:03,280 --> 00:22:08,000 Speaker 1: essentially want to be your partner in terms of your 410 00:22:08,080 --> 00:22:11,000 Speaker 1: everyday life in a city. When you want to go 411 00:22:11,040 --> 00:22:12,880 Speaker 1: to work, we want to be there when you're coming 412 00:22:12,920 --> 00:22:15,360 Speaker 1: back to work, we want to be there. Uh. We 413 00:22:15,400 --> 00:22:18,200 Speaker 1: want to be there to feed you uh. And we 414 00:22:18,240 --> 00:22:22,120 Speaker 1: want to be your everyday utility uh in your use 415 00:22:22,600 --> 00:22:25,400 Speaker 1: and we will do so in a responsible way. Uh. 416 00:22:25,440 --> 00:22:28,119 Speaker 1: This is a company that wants to be great, but 417 00:22:28,240 --> 00:22:30,840 Speaker 1: wants to do good for the world as well. Uh, 418 00:22:30,840 --> 00:22:32,320 Speaker 1: and we know we had a lot of work ahead 419 00:22:32,320 --> 00:22:34,960 Speaker 1: of us. That was Uber CEO dar kasro Shah. He 420 00:22:35,040 --> 00:22:37,880 Speaker 1: speaking to Carlisle Group co founder David Rubenstein.