WEBVTT - Airbnb Hosts and Abortion, and Sun Valley 0:00:02.480 --> 0:00:05.760 From the heart of where innovation, money and power. CALLI 0:00:06.600 --> 0:00:11.119 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:11.200 --> 0:00:27.560 Emily Jay. I'm Caroline Hyde in New York. In Family 0:00:27.640 --> 0:00:30.040 Chang this is bring Bag Technology. Coming up in the 0:00:30.080 --> 0:00:34.040 next hour. Airbnb hosts attempt to navigate tricky legal maze 0:00:34.320 --> 0:00:37.400 amid state abortion bands while hosting women seeking to get 0:00:37.400 --> 0:00:41.040 abortions may not be all that easy. Plus, as the 0:00:41.040 --> 0:00:43.560 biggest names in tech and media gather at some valley, 0:00:43.800 --> 0:00:47.080 we'll hear from Amajiki twenty three and me about the 0:00:47.080 --> 0:00:50.960 company's new study on well long COVID, in the current 0:00:51.000 --> 0:00:54.320 state of biotech stocks, and door Dash and uber sink. 0:00:54.360 --> 0:00:57.400 After Amazon agrees to take a stake in grub Hub's business, 0:00:57.600 --> 0:00:59.760 details of the deal and why prime members might start 0:00:59.800 --> 0:01:03.160 to favorite grub as in every service. Let's talk about 0:01:03.200 --> 0:01:05.520 the U. S. Supreme Court ruling, of course, to end 0:01:05.560 --> 0:01:09.520 federal protection for abortions happened last month. Already, many people 0:01:09.600 --> 0:01:11.600 wanted to try and find a way to help. Some 0:01:11.760 --> 0:01:14.479 hosts on Airbnb offered to open their homes to guests 0:01:14.480 --> 0:01:16.920 who needed to travel to states that will still allow 0:01:17.000 --> 0:01:20.680 the procedure. However, some of those hosts, well, I'm realizing 0:01:20.680 --> 0:01:22.559 it isn't as easy a solution as it might seem. 0:01:22.600 --> 0:01:25.959 Bloomberg's Michael Tobin wrote all about this. Joins US now 0:01:26.480 --> 0:01:29.280 talk to us about how hosts were looking to potentially 0:01:29.319 --> 0:01:33.160 step in and allow travel to states that allowed abortions 0:01:33.240 --> 0:01:36.400 right after the Supreme Court decision came out. Hosts immediately 0:01:36.600 --> 0:01:38.920 we're changing some of their listings to say, if you're 0:01:38.920 --> 0:01:40.959 a woman and needed to travel across state lines to 0:01:41.080 --> 0:01:43.440 get an abortion, you're welcome to stay at my place 0:01:43.480 --> 0:01:46.280 for free. And this is host really stepping up at 0:01:46.319 --> 0:01:50.480 a time where abortion access is being limited in almost 0:01:50.520 --> 0:01:53.559 you know, half of US states. And quickly host learned 0:01:53.560 --> 0:01:55.200 that it was not as easy to do this as 0:01:55.240 --> 0:01:57.760 they thought. There are very restrictive laws in states like 0:01:57.800 --> 0:02:01.280 Oklahoma and Texas that will actually put out bounties on 0:02:01.320 --> 0:02:03.760 people who aid in a bet abortions. And this was 0:02:03.800 --> 0:02:06.600 an issue that came up last year and companies like 0:02:06.720 --> 0:02:08.880 Uber were saying that we're going to defend our drivers 0:02:08.960 --> 0:02:12.760 if they are implicated um in these lawsuits. And quickly 0:02:12.800 --> 0:02:15.160 what we've seen happen is some of these hosts takedown 0:02:15.320 --> 0:02:18.240 these listings and then partner with local nonprofits who are 0:02:18.280 --> 0:02:22.000 able to provide housing, so perhaps be a little less obvious, 0:02:22.080 --> 0:02:24.639 a little less implicating to anyone who's looking to use 0:02:24.680 --> 0:02:27.600 that home. I'm also interested in whether Abb said how 0:02:27.680 --> 0:02:30.679 Uber came to try and help an offer to pay 0:02:30.680 --> 0:02:32.799 the legal fees of its drivers. What have I been 0:02:32.840 --> 0:02:36.000 be done for their hosts? Right? So Airbnb has said 0:02:36.040 --> 0:02:38.200 that if any of its hosts are implicating these laws, 0:02:38.240 --> 0:02:40.560 they will defend them, and they said that last September. 0:02:40.800 --> 0:02:43.400 And they also said if any other states pass laws 0:02:43.440 --> 0:02:45.200 that are similar to the one in Texas, will step 0:02:45.280 --> 0:02:47.399 up and do the same. The company has also made 0:02:47.440 --> 0:02:50.200 an unspecified donation of Planned Parenthood last year, but they 0:02:50.200 --> 0:02:53.680 haven't said anything else aside from you know, what's happened 0:02:53.680 --> 0:02:55.840 after the Supreme Court ruling. And this is a company 0:02:55.880 --> 0:02:59.359 that's really stepped up to provide housing to Ukrainian Afghanistan 0:02:59.400 --> 0:03:02.280 refugees when those crisis were happening, But we haven't heard 0:03:02.320 --> 0:03:05.600 about any of their plans or partnerships domestically. I mean, 0:03:06.000 --> 0:03:08.640 it has to be said in many ways, the Ukrainian 0:03:08.680 --> 0:03:11.800 refugee crisis is in no way politically divisive. We still 0:03:11.840 --> 0:03:14.880 know that one third of the US population, at least 0:03:14.880 --> 0:03:18.960 on a Pew survey, agreed that abortions should be illegal. 0:03:19.080 --> 0:03:20.919 So we have to realize that this is a very 0:03:20.919 --> 0:03:25.960 politically charged conversation, and indeed not everyone agrees. I'm interested in, therefore, 0:03:26.200 --> 0:03:29.320 whether we expect the companies to stand to make comments 0:03:29.320 --> 0:03:31.920 about how they support their employees as well, because this 0:03:32.000 --> 0:03:34.600 is something we've seen many businesses say that's correct, and 0:03:34.720 --> 0:03:37.200 Airbnb has said that they will pay for employees who 0:03:37.240 --> 0:03:39.640 need to go across state lines to get an abortion, 0:03:39.960 --> 0:03:42.720 but we haven't seen that extended to hosts yet or 0:03:42.800 --> 0:03:45.880 to guess, so at that point, it's still re meant 0:03:45.880 --> 0:03:48.680 to be seen what the company plans to do. What 0:03:48.760 --> 0:03:52.840 about therefore, solutions that some of the actual hosts have 0:03:52.880 --> 0:03:54.640 been coming up with. You say that they've been working 0:03:54.640 --> 0:03:56.520 with not for profits? Is that largely in the way 0:03:56.520 --> 0:03:58.320 in which that they If you're looking to be able 0:03:58.360 --> 0:04:00.560 to offer your home for free to those who want 0:04:00.560 --> 0:04:03.080 to travel, is that the way to partner with nonprofits charities? 0:04:03.240 --> 0:04:04.880 That's what I've seen so far. One host that I 0:04:04.960 --> 0:04:07.240 spoke to, who is in Virginia, said that they're going 0:04:07.240 --> 0:04:09.800 to be partnering with a local nonprofit and they actually 0:04:09.800 --> 0:04:12.520 have two women who are coming to stay at their homes. 0:04:12.560 --> 0:04:14.520 So this is somebody who's been able to partner with 0:04:14.600 --> 0:04:17.560 a local nonprofit and make it successful. They've taken down 0:04:17.560 --> 0:04:19.720 the language from their listing on Airbnb, but they're still 0:04:19.720 --> 0:04:22.960 making it available through their nonprofit. Another host that I 0:04:23.000 --> 0:04:25.480 spoke to in New Mexico said that they had to 0:04:25.520 --> 0:04:27.280 take down the listing because of a threat that they 0:04:27.320 --> 0:04:29.880 got against their family. So it really does show how 0:04:29.920 --> 0:04:33.000 serious this can be, and they really hope that the 0:04:33.120 --> 0:04:36.680 organization's um They hope that Airbnb will partner with the 0:04:36.760 --> 0:04:41.360 organizations to make this safe for all parties involved. And lastly, 0:04:41.800 --> 0:04:45.000 what about sort of the next step of of investigative 0:04:45.080 --> 0:04:48.200 reporting for yourself, Like when you're looking at the ways 0:04:48.200 --> 0:04:50.960 in which this conversation continues to happen, are there other 0:04:51.000 --> 0:04:52.920 companies that you're discussing this with. Is there are other 0:04:52.920 --> 0:04:54.839 ways in which you think a BB and the likes 0:04:54.880 --> 0:04:57.080 will have to eventually become more clear in some of 0:04:57.120 --> 0:04:59.599 their advice. I think what we're going to see is 0:04:59.640 --> 0:05:01.599 he's come news. You're just going to be continued to be, 0:05:02.279 --> 0:05:04.760 you know, put under public pressure, in the public spotlight 0:05:05.080 --> 0:05:07.240 to what they're going to do to support employees and hosts. 0:05:07.360 --> 0:05:10.080 And this kind of is similar to you know, the 0:05:10.120 --> 0:05:12.960 conversation about who's an employee and who's a contractor, right, 0:05:13.040 --> 0:05:15.520 and that's very clear with what you see with Uber 0:05:15.680 --> 0:05:17.800 and Uber is stepped up to say, and the Airbnb 0:05:17.920 --> 0:05:19.880 two to their credit if you're implicated in any of 0:05:19.920 --> 0:05:22.279 these lawsuits will defend you. So we'll see if that 0:05:22.320 --> 0:05:24.800 actually happens. Michael Tobin, it's a great story. Thank you 0:05:24.839 --> 0:05:27.400 so much for coming on to talk about it. Meanwhile, 0:05:27.520 --> 0:05:29.880 another story that we continue to watch, the crypto crash 0:05:29.920 --> 0:05:32.120 has claimed another victim, this time broke A. Voyage and 0:05:32.240 --> 0:05:35.479 Digital has filed for Chapter eleven bankruptcy protection. Now the 0:05:35.520 --> 0:05:38.159 firm sites market volatility and of course the collapse of 0:05:38.160 --> 0:05:40.599 the all important hedge fund, and had lent money to 0:05:41.120 --> 0:05:44.600 Three Arrows Capital. Last month, Voyager had secured a five 0:05:44.640 --> 0:05:48.000 million dollar credit line from the cryptomogul and White Knight himself, 0:05:48.000 --> 0:05:51.560 Sam mag Munfreeze. I'll meet a research Interestingly, they'll meet 0:05:51.560 --> 0:06:02.880 a research too. Let's get out live to Sun Valley 0:06:02.920 --> 0:06:06.320 for Alan and Co's conference Media Mobile Zeo business tycoons. 0:06:06.400 --> 0:06:08.840 They gather there are annually rope Place to say, also 0:06:08.920 --> 0:06:13.880 gathering with them and Lovelow, you've got a very special guest. Yeah, 0:06:13.960 --> 0:06:17.240 let's go from billionaires and deals to health and data. 0:06:17.400 --> 0:06:19.719 Bring in the CEO of twenty three and me and 0:06:19.720 --> 0:06:22.280 would you hi? How are you? I'm good? How are you? 0:06:22.680 --> 0:06:25.280 The weather is beautiful, but it's been busy. You've been 0:06:26.000 --> 0:06:27.920 coming to this conference for a long time, but you're 0:06:28.000 --> 0:06:32.320 very busy generally speaking. Correct twenty three and you're coming 0:06:32.360 --> 0:06:35.280 out of the pandemic. The consumer around the world is 0:06:35.320 --> 0:06:39.479 thinking a lot about their health. How's that helped you people? 0:06:39.560 --> 0:06:42.080 You know, it's interesting with COVID, it was the first 0:06:42.080 --> 0:06:44.520 time when we would publish articles that that would actually 0:06:44.600 --> 0:06:48.440 drive sales. So COVID definitely spurred people to be hyper 0:06:48.480 --> 0:06:52.880 aware of health, definitely interested in what's going on. And 0:06:53.480 --> 0:06:55.680 three me definitely saw a bump that people were interested 0:06:55.720 --> 0:06:57.520 in the research that we were doing. And people are 0:06:57.560 --> 0:07:01.839 definitely interested in health. And as we enter this second 0:07:01.880 --> 0:07:06.919 half and economies are opening and many people are double 0:07:07.000 --> 0:07:10.640 vaccinated boosted, are they still coming to you? What is 0:07:10.640 --> 0:07:14.400 their consciousness about health data? I think people come to 0:07:14.440 --> 0:07:16.880 twenty three and me there's there's you know, clearly half 0:07:16.880 --> 0:07:20.160 of our customers come for ancestry and then another half 0:07:20.200 --> 0:07:23.120 definitely are very interested in the idea that they're empowered 0:07:23.600 --> 0:07:26.240 to take care of themselves and they're empowered with information 0:07:26.280 --> 0:07:29.520 about prevention. And I think people have learned with the pandemic. 0:07:29.560 --> 0:07:31.440 There's like obviously like we think about mass when we 0:07:31.480 --> 0:07:33.480 think about vaccines, like all of that ties in with 0:07:33.520 --> 0:07:36.200 the world of prevention. So suddenly being able to tie 0:07:36.200 --> 0:07:39.000 that as well with saying type two diabetes, are there 0:07:39.000 --> 0:07:41.040 things that you can actually do to prevent it? Are 0:07:41.040 --> 0:07:44.200 there actions that you can take? So lifestyle environment, I 0:07:44.200 --> 0:07:46.480 think it all wraps in. People definitely start to think 0:07:46.520 --> 0:07:48.640 about that more and more. What can they do to 0:07:48.800 --> 0:07:51.840 just be healthier in general. There's about Spasics twenty three 0:07:51.840 --> 0:07:53.720 and me just run through what it is you offer 0:07:53.760 --> 0:07:57.000 and how it works three me. It's it's incredibly simple. 0:07:57.040 --> 0:08:00.720 You spin in a tube, we collect your DNA, and 0:08:00.920 --> 0:08:03.480 we help you interpret your DNA. And we're different than 0:08:03.520 --> 0:08:05.360 all the other companies out there, and that we never 0:08:05.400 --> 0:08:08.960 said we're just ancestry, we're just health We really wanted 0:08:09.000 --> 0:08:11.080 to have this holistic vision of like we're about you 0:08:11.760 --> 0:08:15.840 and understanding your DNA and DNA is fascinating, like you 0:08:15.880 --> 0:08:18.280 share it with all this life around us. You and 0:08:18.320 --> 0:08:21.040 I are ninety nine point you know, five percent the same. 0:08:21.640 --> 0:08:23.560 So how is it can we understand the DNA to 0:08:23.640 --> 0:08:26.760 understand why we're different? Some people, you know are introvert, 0:08:26.840 --> 0:08:28.920 Some people are extroverts. Some people love you know, our 0:08:29.000 --> 0:08:31.880 high risk for type you diabetes, some people are not. 0:08:32.360 --> 0:08:35.200 Um how can we actually understand how the DNA influences 0:08:35.240 --> 0:08:37.560 all of that? So we return near ances to results 0:08:37.559 --> 0:08:40.200 to people, and we return health results to people, and 0:08:40.240 --> 0:08:44.640 we engage them with their own personal DNA. How many 0:08:44.640 --> 0:08:47.120 of these kits are you selling and where are they 0:08:47.360 --> 0:08:49.520 doing best? Is it here in the United States? Is 0:08:49.520 --> 0:08:52.120 it in other markets? Where is their most engagement? We're 0:08:52.160 --> 0:08:55.400 focused mostly on the US right now. UM. We also 0:08:55.440 --> 0:08:57.680 sell in the UK, we sell in Canada, we sell 0:08:57.720 --> 0:09:00.560 in sixty six countries, but we don't sell health everywhere. 0:09:00.800 --> 0:09:03.280 Health is still highly regulated and most of the world, 0:09:03.640 --> 0:09:07.360 so it's mostly in the US. UM we have you know, 0:09:07.400 --> 0:09:10.080 we still see we see good update from our customers 0:09:10.080 --> 0:09:13.720 that are really interested in again both understanding ancestry and 0:09:13.840 --> 0:09:16.480 understanding health. And what's interesting is that there's a real 0:09:16.559 --> 0:09:19.600 tie in of like most people can relate and say like, Okay, 0:09:19.600 --> 0:09:22.080 if you're of Jewish descent or if you're of African descent, 0:09:22.520 --> 0:09:25.520 you're potentially at higher risk for certain conditions. So there's 0:09:25.559 --> 0:09:28.280 a real tie in between the ancestry and what your 0:09:28.280 --> 0:09:33.719 health predispositions are. You made an interesting acquisition Lemonade telehealth. 0:09:33.760 --> 0:09:37.839 It was another kind of big pandemic era ticket. Yeah, 0:09:37.880 --> 0:09:40.480 how has that gone for you? The reason why we 0:09:40.520 --> 0:09:43.760 bought Lemonade is very different than why other groups got into, 0:09:44.600 --> 0:09:46.920 you know, telehealth. It's not because we wanted to get 0:09:46.920 --> 0:09:49.360 into urgent care and you know strep throats in the 0:09:49.360 --> 0:09:53.520 whole telemedicine craze. But rather, we saw suddenly this opportunity 0:09:53.559 --> 0:09:57.760 that people are comfortable talking to their clinicians online and 0:09:57.800 --> 0:10:02.720 that frankly, most clinicians are not trained on genomic medicine, 0:10:03.160 --> 0:10:05.079 meaning that if you go and you get your genetic 0:10:05.120 --> 0:10:10.240 results for Alzheimer's or chronic kidney disease or other conditions, 0:10:10.679 --> 0:10:13.840 most physicians today are not trained on what to do 0:10:13.920 --> 0:10:16.840 with that. And so twenty three and me, by acquiring Lemonade, 0:10:17.120 --> 0:10:20.480 now has the opportunity to offer the full stack, meaning 0:10:20.520 --> 0:10:23.280 that I can give you access to a direct to 0:10:23.360 --> 0:10:27.160 consumer approved FDA cleared test. I can get you your 0:10:27.200 --> 0:10:30.920 genetic information, and now I can actually provide clinicians who 0:10:30.960 --> 0:10:35.120 are trained on genetic information and a pharmacy that is 0:10:35.160 --> 0:10:39.120 also trained on how your genetics interplay with medications. So 0:10:39.160 --> 0:10:42.280 I can offer now that full service too of our customers. 0:10:42.920 --> 0:10:46.480 That was a successful acquisition, it's been missing. I mean, 0:10:47.000 --> 0:10:50.840 you out there looking for similar opportunities to build out 0:10:50.960 --> 0:10:53.360 the twenty three and me offering well. Acquisitions take a 0:10:53.400 --> 0:10:55.040 lot of time to integrate, so I would say the 0:10:55.080 --> 0:10:57.880 first step is like is the integration, but then really 0:10:57.920 --> 0:11:01.640 be able to start to train missions um and provide 0:11:01.679 --> 0:11:04.320 those to our customers and provide that full package. Like 0:11:04.559 --> 0:11:07.840 people today still don't necessarily know what to do with 0:11:07.880 --> 0:11:10.640 all their genetic information. So there's a whole process for 0:11:10.720 --> 0:11:14.280 us of educating our customers like we're gonna we're gonna 0:11:14.280 --> 0:11:16.959 give you healthcare providers now who can help you actually 0:11:17.280 --> 0:11:20.440 understand how do you actually potentially translate that into your life, 0:11:20.600 --> 0:11:22.640 and lots of ways that we can actually leverage the 0:11:22.720 --> 0:11:26.640 service to help you encourage behavior change. You're the CEO 0:11:27.160 --> 0:11:31.640 of a publicly traded company. Now healthcare is important for 0:11:31.679 --> 0:11:36.680 consumers that we're in a challenging inflationary environment, and we've 0:11:36.679 --> 0:11:38.319 been having a lot of discussions in the last twenty 0:11:38.360 --> 0:11:42.320 four hours about where does the consumer stop spending. Do 0:11:42.360 --> 0:11:46.640 you think that the consumer will continue to assign importance 0:11:46.679 --> 0:11:51.240 to spending on healthcare data monitoring metrics or is that 0:11:51.360 --> 0:11:54.600 something that there's a risk that consumer spending slows down. 0:11:55.400 --> 0:11:57.520 I think I think there's a couple of interesting trends. 0:11:57.559 --> 0:12:00.000 So I think first off is people are really frustrated 0:12:00.000 --> 0:12:03.880 aided with a lack of transparency and healthcare, the surprise bills, 0:12:04.440 --> 0:12:07.040 and I think that there's definitely an encouragement people want 0:12:07.080 --> 0:12:09.160 to have more control. And I think one thing that 0:12:09.200 --> 0:12:11.600 twenty three and ME has really led on is being 0:12:11.640 --> 0:12:15.040 a low cost provider of information and making it really 0:12:15.080 --> 0:12:18.480 affordable and accessible. So I think more and more there's 0:12:18.480 --> 0:12:20.480 going to be a trend where people want to be 0:12:20.559 --> 0:12:23.600 in control, they want to know exactly what they're paying for, 0:12:23.920 --> 0:12:25.240 and they want to be able to know that they're 0:12:25.280 --> 0:12:29.199 actually getting a reasonably priced service. So I think that 0:12:29.280 --> 0:12:32.400 twenty three ME, at our current price for a health 0:12:32.440 --> 0:12:35.720 and answerstree kit, it's in that range of reasonable for people. 0:12:36.360 --> 0:12:40.880 What is the energy. He big picture outlook for the 0:12:40.880 --> 0:12:43.320 rest of this year and beyond, well for this year 0:12:43.360 --> 0:12:45.280 and beyond. I mean I look at I focus on beyond. 0:12:45.320 --> 0:12:47.240 So for me, I've always been very much focused on 0:12:47.280 --> 0:12:49.160 the long term vision. And the long term vision is 0:12:49.200 --> 0:12:52.200 a totally different type of healthcare system that is frankly 0:12:52.800 --> 0:12:56.719 about your best interest. Today's healthcare system makes money when 0:12:56.760 --> 0:12:59.240 you are sick and you go into the system, and 0:12:59.280 --> 0:13:02.160 so I've all has been focused on a self pay, 0:13:02.280 --> 0:13:05.600 direct a consumer model because my relationship is directly with you. 0:13:06.160 --> 0:13:08.440 How is it that I can win as a company 0:13:08.440 --> 0:13:10.440 and you can win as an individual if I can 0:13:10.559 --> 0:13:13.080 keep you healthier? So I really look at a world 0:13:13.240 --> 0:13:16.320 how do I actually empower you to be healthy? At 0:13:16.320 --> 0:13:18.000 a hundred? How do I empower you to be as 0:13:18.040 --> 0:13:20.960 healthy as you possibly can and not actually get sick? 0:13:21.000 --> 0:13:23.920 To begin with final question very quickly, do you think 0:13:23.960 --> 0:13:26.640 twenty three and me is seen as a potential partner 0:13:26.679 --> 0:13:28.840 from a big for a bigger health care system or 0:13:28.880 --> 0:13:32.160 even a potential acquisition that have you ever thought about 0:13:32.640 --> 0:13:36.360 doing that? I think now that we've acquired lemonade Um 0:13:36.400 --> 0:13:38.600 and the focus that we have on genomic medicine and 0:13:38.640 --> 0:13:41.199 the delivery delivery of medicine. I think that twenty three 0:13:41.200 --> 0:13:43.680 and Me could play a really important role in helping 0:13:43.760 --> 0:13:47.160 bridge consumers who actually have their genetic information with the 0:13:47.160 --> 0:13:50.280 rest of the medical world and how they're operating, and 0:13:50.320 --> 0:13:53.400 start to bridge that genomic divide, like help people actually 0:13:53.520 --> 0:13:56.280 understand what is this information, how to use it in 0:13:56.360 --> 0:13:58.320 a clinical setting as well as how to use it 0:13:58.320 --> 0:14:01.319 in a lifestyle setting. Right, three and C and mujiki, 0:14:01.520 --> 0:14:04.560 It's not just billionaires and deals, it's health and data 0:14:04.880 --> 0:14:07.920 as well. Caroline back to you in New York. She 0:14:08.000 --> 0:14:10.640 might well be a million billionaire. We'll have to check 0:14:10.679 --> 0:14:13.319 the Blombo billionaire's list. But what a wonderful interview, what 0:14:13.440 --> 0:14:16.120 a fascinating CEO and majiki they're trying through me and 0:14:16.160 --> 0:14:18.160 our own ed Ludlow. We'll be back in Some Valley 0:14:18.160 --> 0:14:21.520 on Thursday live with event Right CEO Kevin Hart's Don Gavern, 0:14:22.000 --> 0:14:24.840 Major League Soccer Commissioner. Make sure you tune in at 0:14:24.880 --> 0:14:28.360 five pm Eastern two pm Pacific. Coming out door dash 0:14:28.560 --> 0:14:31.560 shares draw up after competitor grub hub struck a deal 0:14:31.600 --> 0:14:35.200 with Amazon. Our grub Hub will have easy access to 0:14:35.240 --> 0:14:57.520 Amazon's broad consumer base. That's next as a Broomberg. Apple's 0:14:57.560 --> 0:15:00.600 latest mapchips have shaken up the personal computer or industry, 0:15:00.960 --> 0:15:03.880 driving sales of Apple's map books and imax and pushing 0:15:03.960 --> 0:15:07.040 rivals to search for new solutions. In just the last 0:15:07.120 --> 0:15:09.440 year and a half, Apple has output the M one 0:15:09.680 --> 0:15:11.800 to the M one Ultra, to the M two and 0:15:11.920 --> 0:15:14.640 over the next year, I expect new M two Pro 0:15:14.760 --> 0:15:17.960 and Max chips, as well as the first M three chips. 0:15:17.960 --> 0:15:20.520 But all of this has taken a toll on Apple's 0:15:20.600 --> 0:15:24.080 chip efforts for its other products. Case in point two, 0:15:24.120 --> 0:15:27.360 of Apple's most popular devices, the iPhone and the Apple Watch, 0:15:27.520 --> 0:15:30.320 will not be getting their typical big chip upgrades this year. 0:15:31.040 --> 0:15:33.760 For the first time since Apple began designing its own 0:15:33.800 --> 0:15:37.480 iPhone processors, the base iPhone four team models won't be 0:15:37.520 --> 0:15:40.200 getting an all new chip. Those phones will stick to 0:15:40.240 --> 0:15:44.080 the eight fifteen from the iPhone thirteen instead. Only the 0:15:44.080 --> 0:15:47.120 more expensive iPhone fourteen Pro line will get a faster 0:15:47.280 --> 0:15:50.440 A sixteen processor. Similarly, for the first time in its 0:15:50.480 --> 0:15:53.000 own history, the Apple Watch will be sticking to the 0:15:53.000 --> 0:15:56.240 same processor technology for the third year in a row. Well, 0:15:56.240 --> 0:15:58.360 the Series eight will get an ESS eight chip. The 0:15:58.400 --> 0:16:00.960 processor will be on par with the S six chip 0:16:01.120 --> 0:16:05.600 from the Series six. Apple has also been facing hurdles 0:16:05.720 --> 0:16:08.480 with the development of its first cellular modem, with test 0:16:08.600 --> 0:16:12.320 versions of the component facing overheating issues. I don't expect 0:16:12.320 --> 0:16:16.680 an Apple modem to arrive until at the earliest. I 0:16:16.720 --> 0:16:19.440 believe all of these issues are in part the result 0:16:19.520 --> 0:16:22.600 of Apple's chip department being spread too thin, as well 0:16:22.640 --> 0:16:25.520 as a new focus on the Mac. It's also, of course, 0:16:25.600 --> 0:16:28.640 due to industry wide battlenecks like the chip shortage, which 0:16:28.680 --> 0:16:31.320 is leading to higher prices, as well as rising shipment 0:16:31.400 --> 0:16:35.720 costs and t SMC. Apple's manufacturing partner is also not 0:16:35.800 --> 0:16:39.120 without blame due to its somewhat rocky transition to new 0:16:39.160 --> 0:16:43.600 three nimeter processor technology. I'm Mark German. This is power 0:16:43.680 --> 0:16:50.160 on thanks to putting gum and then don't forget sign 0:16:50.240 --> 0:16:54.240 up from max weekly power on news dot com. Now 0:16:54.280 --> 0:16:55.920 I'm still got Amazon because it's stuck a deal to 0:16:55.960 --> 0:16:59.040 take up of grub hub and it will say will 0:16:59.080 --> 0:17:01.440 offer it's primary is in the US in one year 0:17:01.480 --> 0:17:03.840 membership to the feed delivery service. Now. Clubhub is owned 0:17:03.840 --> 0:17:06.800 by the Dutch company Just Eat Takeaway, which announced plans 0:17:06.800 --> 0:17:09.080 to find an investor or bitter for the US business 0:17:09.080 --> 0:17:11.680 in April and he's saying new meg intelligence some place 0:17:11.720 --> 0:17:15.520 to say it's here to tell us why why did 0:17:15.560 --> 0:17:18.840 Amazon want to get into the delivery service? Well, the 0:17:18.920 --> 0:17:22.280 lines are clearly blurring between what Amazon is doing in 0:17:22.400 --> 0:17:25.360 terms of last smile delivery versus what these companies are 0:17:25.359 --> 0:17:28.280 doing in terms of food delivery and grocery delivery. And 0:17:28.320 --> 0:17:31.400 I think Amazon used them as a threat. And for Amazon, 0:17:31.600 --> 0:17:34.520 it's an easy way for them to you know, partner 0:17:34.600 --> 0:17:37.840 with grubhub, which has been losing share, but it does 0:17:37.920 --> 0:17:41.159 have a good, you know, customer base in cities and 0:17:41.400 --> 0:17:44.120 urban areas, so it is also a way for them 0:17:44.160 --> 0:17:46.840 to segment the market. They did a similar partnership at 0:17:46.920 --> 0:17:50.200 Delivery in the UK, so they're really targeting that high 0:17:50.320 --> 0:17:54.440 end users that grubbub has, albeit its losing share, but 0:17:54.600 --> 0:17:57.240 I think that's the play here. And then over time 0:17:57.280 --> 0:18:00.159 they want to bundle everything. You know, they already have 0:18:00.320 --> 0:18:03.359 music video, well at one more service and their prime 0:18:03.400 --> 0:18:08.280 subscription becomes something that customers can do with that. Why 0:18:08.320 --> 0:18:11.640 go to the high end is certainly for me delivery 0:18:11.800 --> 0:18:14.719 it started by really doing the top end restaurants, then 0:18:14.720 --> 0:18:16.720 went a little bit lower but it is the high 0:18:16.840 --> 0:18:18.720 end by more recession proof in the moment, is that 0:18:18.760 --> 0:18:23.080 the idea, yes, And and also they have higher repeat purchases, 0:18:23.160 --> 0:18:25.800 so you know, when when you talk about subscriptions in 0:18:25.800 --> 0:18:29.000 this business, it's all about frequency and how can you 0:18:29.280 --> 0:18:32.640 have the customer you know, order more kind of more 0:18:32.720 --> 0:18:36.000 times than they would have done otherwise. So in this case, 0:18:36.080 --> 0:18:38.920 I think the other problem that I see for door 0:18:39.000 --> 0:18:41.760 Dash and Uber is they charge a take rate based 0:18:41.760 --> 0:18:46.080 on the basket size or you know, Amazon can say, okay, 0:18:46.119 --> 0:18:48.879 we'll give you a flat fee. Yes, it doesn't matter 0:18:48.920 --> 0:18:51.440 in terms of you know, how many times you order, 0:18:51.800 --> 0:18:54.679 and that could be very disruptive to the business model 0:18:54.840 --> 0:18:57.800 of Uber and door Dash. I mean they're already struggling 0:18:57.800 --> 0:19:01.280 with profitability. If this was to come, I think that 0:19:01.359 --> 0:19:03.800 would be a big pressure on on their take rates. 0:19:03.920 --> 0:19:05.399 Talked to us about the structure of the deal and 0:19:05.440 --> 0:19:08.080 about their option basically to eventually own the full assets 0:19:08.119 --> 0:19:11.280 that they wish. I think Amazon in this environment can't 0:19:11.440 --> 0:19:14.400 make a big acquisition. They already bought MGM, they bought 0:19:14.440 --> 0:19:17.520 Whole Foods, but now I think the regulatory environment is 0:19:17.520 --> 0:19:21.080 more challenging. Even the delivery partnership went through intense deal 0:19:21.119 --> 0:19:24.879 scrutiny and so my hunches. You know, even though they 0:19:24.920 --> 0:19:28.480 would have gotten this asset very cheap. I mean, just 0:19:28.640 --> 0:19:31.560 he paid seven point five billion for groub Hub. It 0:19:31.880 --> 0:19:35.159 will be substantially marked down in this environment. But I 0:19:35.200 --> 0:19:38.920 think for Amazon, they really think partnership is one way 0:19:38.960 --> 0:19:41.880 for them to gain you know, access to grow hub 0:19:41.920 --> 0:19:44.200 customer base, and they can do everything that they would 0:19:44.200 --> 0:19:46.960 have done if they had acquired the asset, So makes sense. 0:19:47.119 --> 0:19:49.320 In general, we can see more consolidation in the space. 0:19:49.359 --> 0:19:51.240 I think when you're talking about the pricing structure as 0:19:51.280 --> 0:19:54.480 thinking of my instacat bills and how much I'm assessing 0:19:54.640 --> 0:19:57.000 how much you know, I get added on from me 0:19:57.080 --> 0:20:00.520 just walking into a store. Are we seeing more insolidation 0:20:00.560 --> 0:20:02.399 likely in the space in general, Well, there will be 0:20:02.440 --> 0:20:04.720 a lot of pressure, right So if you're getting into 0:20:04.760 --> 0:20:08.399 a slow economic environment where customers are pulling back on spending, 0:20:08.480 --> 0:20:10.760 there are just too many subscriptions out there that a 0:20:10.840 --> 0:20:14.040 customer has and they have to pay back on what 0:20:14.240 --> 0:20:17.040 is a discretionary versus what is not, and that will 0:20:17.080 --> 0:20:21.119 be a catalyst for you know, consolidation because order growth 0:20:21.320 --> 0:20:25.520 will slow down substantially. Remember they're up against COVID comps 0:20:25.840 --> 0:20:28.719 georda Ash and Uber grew triple digit order volume growth 0:20:29.040 --> 0:20:31.199 and and so those comps are very tough, and that 0:20:31.240 --> 0:20:34.160 would be a catalyst for install Card and the smaller 0:20:34.200 --> 0:20:36.080 guys to give in and say, okay, we need to 0:20:36.119 --> 0:20:38.639 partner with a Walmart or a Target or you know 0:20:38.680 --> 0:20:42.320 one of the big retailers out there. Man saying always 0:20:42.320 --> 0:20:52.760 say small, bling back intelligence, great analysis. As always, this 0:20:53.080 --> 0:20:55.480 is bag technology. I'm Caroline Hide in New York. She 0:20:55.560 --> 0:20:58.800 has a ribban surging. On Wednesday, the electric vehicle maker, 0:20:58.840 --> 0:21:02.320 reaffirming it's in port auction. Target revealed the production accelerated, 0:21:02.320 --> 0:21:04.960 in fact in the second quarter. Riven still on track 0:21:05.040 --> 0:21:08.480 to produce twenty five tho units this year. Bloomberg's and Ludlow, well, 0:21:08.520 --> 0:21:10.280 we're never going to let him relax over there in 0:21:10.400 --> 0:21:12.040