1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:07,720 --> 00:00:10,760 Speaker 2: Okay, shares of lifted down around fifteen percent, on track 3 00:00:10,800 --> 00:00:13,560 Speaker 2: for the biggest drop since August of twenty twenty four. 4 00:00:13,640 --> 00:00:16,479 Speaker 2: This stock's under pressure, but in the company's earnings, the 5 00:00:16,480 --> 00:00:19,080 Speaker 2: company kind of set out on working on a global 6 00:00:19,160 --> 00:00:21,240 Speaker 2: expansion and new product offerings. 7 00:00:21,280 --> 00:00:21,520 Speaker 1: Lift. 8 00:00:21,560 --> 00:00:24,279 Speaker 2: CEO David Risher is here with us in San Francisco. 9 00:00:24,920 --> 00:00:26,400 Speaker 2: I want to go to the core business because you know, 10 00:00:26,440 --> 00:00:29,200 Speaker 2: I'm going to get to Roba Taxi shortly. But you know, 11 00:00:29,240 --> 00:00:31,360 Speaker 2: like the things that are good for you are black 12 00:00:31,640 --> 00:00:34,920 Speaker 2: Chaufford rides, airports, those are higher value and so like 13 00:00:35,000 --> 00:00:38,120 Speaker 2: my interpretation of reading all the analyst response at least 14 00:00:38,159 --> 00:00:40,360 Speaker 2: is that they looked at the kind of profit outlook 15 00:00:40,600 --> 00:00:43,879 Speaker 2: and said, that's a bit below what we expected. What 16 00:00:43,920 --> 00:00:46,159 Speaker 2: were the factors behind that? If those kind of high 17 00:00:46,240 --> 00:00:48,320 Speaker 2: value segments are doing great. 18 00:00:48,240 --> 00:00:50,479 Speaker 3: I mean, it's such a good question, right, Look, we 19 00:00:50,560 --> 00:00:55,720 Speaker 3: had a blowout quarter, so record bookings, accelerating, record profits, 20 00:00:55,840 --> 00:00:59,280 Speaker 3: never been higher, record cash flow, record customers. Okay, So 21 00:00:59,320 --> 00:01:01,120 Speaker 3: all that is really good, and what it shows is 22 00:01:01,160 --> 00:01:03,800 Speaker 3: the customer obsession is what drives profitable growth. 23 00:01:03,960 --> 00:01:06,200 Speaker 1: Now there's no question it sounds. 24 00:01:06,000 --> 00:01:08,119 Speaker 3: Like analysts are looking at things like margin, But as 25 00:01:08,120 --> 00:01:10,000 Speaker 3: you just pointed out, a lot of our biggest growth 26 00:01:10,040 --> 00:01:12,280 Speaker 3: is actually in the highest value mode, it's highest margin modes. 27 00:01:12,480 --> 00:01:14,320 Speaker 3: So we've got a lot of conviction that we're in 28 00:01:14,360 --> 00:01:16,080 Speaker 3: a good place and only getting better. 29 00:01:16,480 --> 00:01:18,319 Speaker 2: You and I spent some time together at the end 30 00:01:18,319 --> 00:01:20,240 Speaker 2: of last year and we went kind of a bit 31 00:01:20,280 --> 00:01:24,280 Speaker 2: deeper on the robotape plan. Yeah, it's through partnerships and 32 00:01:24,520 --> 00:01:27,480 Speaker 2: it's leveraging what you believe is a strength in fleet management. 33 00:01:27,560 --> 00:01:31,600 Speaker 2: That's right, succinctly update us on everything that's due to happen. 34 00:01:31,640 --> 00:01:32,440 Speaker 1: Then please, oh my good. 35 00:01:32,480 --> 00:01:33,600 Speaker 3: I mean, this is gonna be a big year for 36 00:01:33,680 --> 00:01:35,959 Speaker 3: self driving cars, right, and let's start with sort of 37 00:01:35,959 --> 00:01:38,280 Speaker 3: the big picture. When self driving cars come on to 38 00:01:38,360 --> 00:01:40,680 Speaker 3: a network like cars, it tends to expand the market. 39 00:01:40,720 --> 00:01:42,880 Speaker 3: And you would expect that because it's a cool new product. 40 00:01:42,920 --> 00:01:45,240 Speaker 3: It's reliable. You know, you can kind of space out, 41 00:01:45,240 --> 00:01:47,240 Speaker 3: you can text and not worry about a driver or 42 00:01:47,440 --> 00:01:48,880 Speaker 3: over hearing a phone call something like that. 43 00:01:49,000 --> 00:01:49,960 Speaker 1: So that's really good. 44 00:01:50,040 --> 00:01:52,200 Speaker 3: Okay, So then what happens is you've got to make 45 00:01:52,240 --> 00:01:54,160 Speaker 3: sure that you're well positioned with all the best players 46 00:01:54,160 --> 00:01:56,480 Speaker 3: in the market if you're on in our in our business, 47 00:01:56,760 --> 00:01:58,840 Speaker 3: we are. We've got way more partnership as you know. 48 00:01:59,040 --> 00:02:01,200 Speaker 3: We've got a buy Do partner that we've just announced 49 00:02:01,720 --> 00:02:03,360 Speaker 3: is going to be live in London later this year. 50 00:02:03,720 --> 00:02:05,400 Speaker 3: We just worked out an agreement with the city of 51 00:02:05,400 --> 00:02:08,160 Speaker 3: Hamburg in Germany to be the first robotaxi provider there. 52 00:02:08,200 --> 00:02:10,160 Speaker 3: So that's wonderful. So you've got the partnerships, you've got 53 00:02:10,160 --> 00:02:12,040 Speaker 3: the cities lined up, and now you've got to be 54 00:02:12,080 --> 00:02:14,120 Speaker 3: able to manage this fleet. And as you just said, 55 00:02:14,120 --> 00:02:16,239 Speaker 3: this is not the sexy part, but it's so important. 56 00:02:16,360 --> 00:02:17,679 Speaker 3: You've got to be able to make sure these cars 57 00:02:17,680 --> 00:02:20,080 Speaker 3: are charged, clean and ready to go. We have a 58 00:02:20,080 --> 00:02:22,160 Speaker 3: flex Drive subsidiary that's been doing that for years. 59 00:02:22,200 --> 00:02:22,720 Speaker 1: We think we're the. 60 00:02:22,720 --> 00:02:25,239 Speaker 3: Best in class, and our goal is to be maybe 61 00:02:25,280 --> 00:02:28,320 Speaker 3: five percent cheaper than any other place with higher quality, 62 00:02:28,560 --> 00:02:30,000 Speaker 3: to put robo taxes on the network. 63 00:02:31,000 --> 00:02:35,840 Speaker 4: Cheaper that doesn't immediately make me think profit driving David 64 00:02:35,880 --> 00:02:38,639 Speaker 4: in that way, And so like talk about your targets. 65 00:02:38,680 --> 00:02:41,120 Speaker 4: You've got this one billion EMIT deal by twenty twenty seven, 66 00:02:41,520 --> 00:02:42,880 Speaker 4: and Lumberg Intelligence is warring. 67 00:02:42,960 --> 00:02:44,960 Speaker 1: That looks pretty ambitious at this stage. 68 00:02:45,960 --> 00:02:48,400 Speaker 3: Well, so when I say cheaper, I mean the lowest 69 00:02:48,440 --> 00:02:50,480 Speaker 3: cost way right. And that's the thing is, I want 70 00:02:50,480 --> 00:02:53,160 Speaker 3: our cost position to be really good. To your point, 71 00:02:53,200 --> 00:02:54,919 Speaker 3: like our goals which we set out a couple of 72 00:02:55,000 --> 00:02:57,640 Speaker 3: years ago. Our top line growth of twenty of fifteen 73 00:02:57,680 --> 00:03:00,880 Speaker 3: percent mid teens year on year, much on track for that, 74 00:03:01,200 --> 00:03:04,200 Speaker 3: and bottom line growth getting to a billion dollars of 75 00:03:04,600 --> 00:03:06,480 Speaker 3: adjusted EBITDAT which will be four percent margin. 76 00:03:06,720 --> 00:03:07,720 Speaker 1: Very much on track for that. 77 00:03:07,960 --> 00:03:09,600 Speaker 3: But what it means is you've got to be really 78 00:03:09,600 --> 00:03:12,320 Speaker 3: smart about managing your costs. You've got really good about 79 00:03:12,400 --> 00:03:14,600 Speaker 3: kind of managing your quality, and we're doing really well 80 00:03:14,600 --> 00:03:16,680 Speaker 3: on both. We've just made progress. As I say, we've 81 00:03:16,680 --> 00:03:18,959 Speaker 3: got our best profitable, highest profitable quarter. 82 00:03:19,160 --> 00:03:21,720 Speaker 4: Just this pass you for I think, therefore, go back 83 00:03:21,760 --> 00:03:24,600 Speaker 4: to the av world because there is this ongoing anxiety 84 00:03:24,639 --> 00:03:26,680 Speaker 4: that the competition is just going to get so fierce. 85 00:03:27,760 --> 00:03:29,359 Speaker 1: Are you set up to win? 86 00:03:29,560 --> 00:03:32,200 Speaker 4: What are you saying to convince the investor base they 87 00:03:32,240 --> 00:03:33,760 Speaker 4: shouldn't be setting off your shares like this? 88 00:03:34,600 --> 00:03:37,200 Speaker 3: Yeah, I think that the way to think about avs 89 00:03:37,280 --> 00:03:39,920 Speaker 3: is they're going to be good for the whole industry, 90 00:03:40,000 --> 00:03:41,760 Speaker 3: the ride share industry, because as they say, it's a 91 00:03:41,800 --> 00:03:44,240 Speaker 3: good new product at a lower cost. And I think 92 00:03:44,280 --> 00:03:47,520 Speaker 3: why we are particularly well positioned is we have demand 93 00:03:47,640 --> 00:03:50,080 Speaker 3: that runs to the two three four million people a 94 00:03:50,160 --> 00:03:52,120 Speaker 3: day level, So we have lots of demand for this, 95 00:03:52,240 --> 00:03:54,000 Speaker 3: and you know what they want. They want a fast, 96 00:03:54,080 --> 00:03:55,680 Speaker 3: reliable pick up. It's going to get them where they 97 00:03:55,720 --> 00:03:57,640 Speaker 3: want to go. Sometimes they'll want to be driven by 98 00:03:57,640 --> 00:04:00,000 Speaker 3: a human, sometimes by a robot. Just kind of depends. 99 00:04:00,080 --> 00:04:02,000 Speaker 3: And so this idea of a hybrid network, I think 100 00:04:02,160 --> 00:04:04,520 Speaker 3: it's a real strength, particularly when you sort of marry 101 00:04:04,520 --> 00:04:04,880 Speaker 3: it with fleet. 102 00:04:05,240 --> 00:04:06,760 Speaker 2: Is there a case study for you to reflect on 103 00:04:06,800 --> 00:04:07,360 Speaker 2: in real terms? 104 00:04:07,400 --> 00:04:07,520 Speaker 1: Then? 105 00:04:07,560 --> 00:04:10,560 Speaker 2: Like Atlanta, mame mobility? What are you learning there? 106 00:04:10,680 --> 00:04:10,880 Speaker 1: Yeah? 107 00:04:10,920 --> 00:04:12,520 Speaker 2: And by the way, what's the status of it in 108 00:04:12,600 --> 00:04:14,400 Speaker 2: terms of like fully driver lists, et cetera. 109 00:04:14,520 --> 00:04:15,040 Speaker 1: Yeah, for sure. 110 00:04:15,080 --> 00:04:18,000 Speaker 3: So we're in Atlanta, have we still have safety drivers 111 00:04:18,000 --> 00:04:19,880 Speaker 3: in the car just to make sure everything is going well, 112 00:04:19,920 --> 00:04:21,280 Speaker 3: and you know, because we want this to be an 113 00:04:21,279 --> 00:04:23,400 Speaker 3: incredibly high quality, incredibly safe experience. 114 00:04:23,600 --> 00:04:25,280 Speaker 1: What we're learning is people love it. I mean, this 115 00:04:25,320 --> 00:04:26,040 Speaker 1: is the interesting thing. 116 00:04:26,160 --> 00:04:28,560 Speaker 3: People before they when they hear about av's are often 117 00:04:28,600 --> 00:04:30,400 Speaker 3: a little skeptical. They sound like, I'm not sure I'm 118 00:04:30,400 --> 00:04:32,160 Speaker 3: going to be excited about taking a car that's driven 119 00:04:32,160 --> 00:04:35,040 Speaker 3: by a robot. You know, five minutes later they've kind 120 00:04:35,080 --> 00:04:35,839 Speaker 3: of fallen in love. 121 00:04:35,720 --> 00:04:38,760 Speaker 1: And that cialization is highlight. What's the metric? Yeah, super high, 122 00:04:38,800 --> 00:04:39,200 Speaker 1: super high. 123 00:04:39,240 --> 00:04:41,839 Speaker 3: Basically, I mean as much supply as we can get 124 00:04:41,920 --> 00:04:43,440 Speaker 3: we can put on the road, because there's plenty of 125 00:04:43,480 --> 00:04:45,360 Speaker 3: demand for these things. I think if you want to 126 00:04:45,400 --> 00:04:48,000 Speaker 3: look at a case study for broadly speaking, maybe look 127 00:04:48,040 --> 00:04:51,640 Speaker 3: at the transition from DVDs to streaming. Right, it's a 128 00:04:51,680 --> 00:04:54,000 Speaker 3: similar sort of technology shift. And look how big streaming 129 00:04:54,040 --> 00:04:55,640 Speaker 3: is today compared to DVDs in the past. 130 00:04:55,760 --> 00:04:58,440 Speaker 1: It's going to be that kind of wave, Stevin. You 131 00:04:58,440 --> 00:04:58,960 Speaker 1: know what else? 132 00:04:59,480 --> 00:05:02,719 Speaker 4: I love a lot of New Yorkers love the bikes, 133 00:05:03,360 --> 00:05:06,800 Speaker 4: and boy has this snow made things really difficult. Hate 134 00:05:06,800 --> 00:05:08,839 Speaker 4: to get personal hit, but I mean, look at these pictures. 135 00:05:09,279 --> 00:05:11,120 Speaker 4: I am really struggling to get my bike out. I'm 136 00:05:11,120 --> 00:05:13,160 Speaker 4: really struggling to get it back in. How much of 137 00:05:13,200 --> 00:05:15,880 Speaker 4: a hit is this to have to refund customers? How 138 00:05:15,920 --> 00:05:18,279 Speaker 4: much are you thinking about what the city and you 139 00:05:18,360 --> 00:05:20,840 Speaker 4: can work together with to make this a really costly 140 00:05:20,880 --> 00:05:22,600 Speaker 4: business for you in these sorts of temperatures. 141 00:05:23,400 --> 00:05:25,200 Speaker 3: Yeah, I mean, look, this has been a big big 142 00:05:25,279 --> 00:05:27,719 Speaker 3: learning for us. Obviously there's a huge snowstorm. I'm told 143 00:05:27,760 --> 00:05:30,159 Speaker 3: that we're about seventy five percent dugout right now, which 144 00:05:30,200 --> 00:05:32,320 Speaker 3: is amazing, but that takes a lot of work, a 145 00:05:32,360 --> 00:05:34,279 Speaker 3: lot of just physical labor to make sure that the 146 00:05:34,279 --> 00:05:36,840 Speaker 3: bag stations are available. I think people have taken something 147 00:05:36,880 --> 00:05:38,800 Speaker 3: like half a million rides in the last couple of days, 148 00:05:38,800 --> 00:05:41,720 Speaker 3: which is pretty amazing considering the cold and the snow. Anyway, 149 00:05:41,920 --> 00:05:44,159 Speaker 3: working super closely with the city on it, really making 150 00:05:44,200 --> 00:05:46,440 Speaker 3: sure that the availability of these bikes, which, as you say, 151 00:05:46,600 --> 00:05:48,880 Speaker 3: we run behind the scenes asig as we can get it. 152 00:05:49,040 --> 00:05:51,480 Speaker 2: I asked Bloomberg Tech producer Justin Now to pop his 153 00:05:51,480 --> 00:05:53,560 Speaker 2: head out the window and check, because like here in 154 00:05:53,680 --> 00:05:57,720 Speaker 2: the bay, obviously we don't get confronted by snow. But 155 00:05:57,839 --> 00:05:59,360 Speaker 2: you know, I went back and read my history about 156 00:05:59,400 --> 00:06:02,400 Speaker 2: the kind of micro mobility part of the business. It 157 00:06:02,440 --> 00:06:05,160 Speaker 2: is a smaller part on revenue spasis, but clearly it's 158 00:06:05,200 --> 00:06:06,159 Speaker 2: still important to you. 159 00:06:06,440 --> 00:06:07,440 Speaker 1: It is how important? 160 00:06:07,560 --> 00:06:10,520 Speaker 3: Yeah, I mean, look, as you say, financially it's relatively small, 161 00:06:10,600 --> 00:06:11,520 Speaker 3: but this is the future. 162 00:06:11,560 --> 00:06:13,479 Speaker 1: Look, when you talk about avs, that's part of the future. 163 00:06:13,480 --> 00:06:15,080 Speaker 1: When you talk about micromobility, people. 164 00:06:15,080 --> 00:06:17,240 Speaker 3: Once people get on an e bikes, I say this 165 00:06:17,279 --> 00:06:18,960 Speaker 3: sometimes it's kind of like meeting a person who's just 166 00:06:18,960 --> 00:06:21,080 Speaker 3: started pickleball, Like they have to tell you about it, 167 00:06:21,120 --> 00:06:23,080 Speaker 3: how amazing this thing is. Same with e bikes, you 168 00:06:23,080 --> 00:06:24,760 Speaker 3: know what I mean. So it's like, so this is 169 00:06:24,760 --> 00:06:26,760 Speaker 3: sometimes you can see the future and if you look 170 00:06:26,800 --> 00:06:28,520 Speaker 3: out three, five, ten years, you're going to see more 171 00:06:28,560 --> 00:06:30,120 Speaker 3: people on e bikes. You're going to see more people 172 00:06:30,120 --> 00:06:32,200 Speaker 3: in self driving cars, and you know, and of course 173 00:06:32,240 --> 00:06:34,000 Speaker 3: you're also going to see people in human driven cars, 174 00:06:34,040 --> 00:06:34,880 Speaker 3: and that's what we're building.