1 00:00:02,240 --> 00:00:05,520 Speaker 1: From the heart of where innovation, money and power Colli 2 00:00:06,360 --> 00:00:10,879 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:10,960 --> 00:00:27,520 Speaker 1: Emily Jay. I'm Emily Check in San Francisco, and this 4 00:00:27,520 --> 00:00:29,800 Speaker 1: is Bloomberg Technology. Coming up. In the next hour, the 5 00:00:29,880 --> 00:00:34,199 Speaker 1: Fed unleashes its most aggressive policy in decades to combat 6 00:00:34,240 --> 00:00:37,160 Speaker 1: soaring inflation. Will talk with Liz Young of Sophi about 7 00:00:37,159 --> 00:00:41,400 Speaker 1: what it means for the economy, consumers and tech plus 8 00:00:41,400 --> 00:00:44,599 Speaker 1: substantial demand for travel that is the message from airbnbco 9 00:00:44,640 --> 00:00:47,839 Speaker 1: Brian Chesky after a much better than expected earnings report. 10 00:00:48,040 --> 00:00:50,400 Speaker 1: They'll join me live to talk about how tourism is 11 00:00:50,600 --> 00:00:54,960 Speaker 1: rebounding and that provocative tweet about big changes to Airbnb 12 00:00:55,240 --> 00:00:59,920 Speaker 1: coming and one third of list market cap wipe out 13 00:01:00,080 --> 00:01:03,160 Speaker 1: in a single session. Uber releasing its results early to 14 00:01:03,200 --> 00:01:06,600 Speaker 1: prevent investor dragging them down to still Uber shares taking 15 00:01:06,640 --> 00:01:10,039 Speaker 1: a smaller lugdown even after beating estimates. We're gonna speak 16 00:01:10,040 --> 00:01:13,280 Speaker 1: with Lift president John Zimmer about the market reaction and 17 00:01:13,319 --> 00:01:15,960 Speaker 1: what's next. All of that in a moment, but first 18 00:01:16,000 --> 00:01:17,360 Speaker 1: I want to get a look at the markets and 19 00:01:17,440 --> 00:01:20,400 Speaker 1: a big day for the US economy. The Federal Reserve 20 00:01:20,480 --> 00:01:24,119 Speaker 1: has voted unanimously to raise a benchmark interest rate by 21 00:01:24,120 --> 00:01:28,600 Speaker 1: half a percentage point, stock soaring, bonds rising during FED 22 00:01:28,600 --> 00:01:31,640 Speaker 1: share j Pal's press conference. Bloomberg's Ed Ludlow is here 23 00:01:31,840 --> 00:01:34,119 Speaker 1: with the reaction. I take it away. Yeah, the SMP 24 00:01:34,240 --> 00:01:37,360 Speaker 1: five hundred, the main gauge of US equities rising by 25 00:01:37,400 --> 00:01:41,000 Speaker 1: three percent. It's biggest jump since May really accelerating those 26 00:01:41,040 --> 00:01:43,520 Speaker 1: gains throughout that press conference, as we discussed, and that's 27 00:01:43,560 --> 00:01:46,560 Speaker 1: that one by more than three percent. We saw yields 28 00:01:46,560 --> 00:01:49,920 Speaker 1: pull back, especially the benchmark ten year treasury yield, off 29 00:01:50,000 --> 00:01:52,440 Speaker 1: five pound four basis points to two point nine four percent, 30 00:01:52,480 --> 00:01:55,080 Speaker 1: and it was interesting to see bitcoin also get caught 31 00:01:55,160 --> 00:01:56,960 Speaker 1: up in this kind of risk on sentiment. We saw 32 00:01:56,960 --> 00:02:00,400 Speaker 1: in markets back above thirty nine thousand, pushing towards forty 33 00:02:00,760 --> 00:02:04,200 Speaker 1: dollars per token, caught up as eguties are rising. Now 34 00:02:04,280 --> 00:02:07,000 Speaker 1: come means by Bloombog terminal producer Marguerite points out to 35 00:02:07,040 --> 00:02:09,880 Speaker 1: me that this is the biggest jump in interest rates 36 00:02:09,919 --> 00:02:12,799 Speaker 1: since two thousand. But here's the thing, the focus is 37 00:02:12,919 --> 00:02:16,000 Speaker 1: very much on inflation. The increase the f o m 38 00:02:16,040 --> 00:02:18,720 Speaker 1: c's target federal funds rate takes us to a range 39 00:02:18,720 --> 00:02:21,560 Speaker 1: of zero point five to one. You remember we got 40 00:02:21,560 --> 00:02:25,200 Speaker 1: that quarter percentage point hike in March, but for much 41 00:02:25,240 --> 00:02:27,760 Speaker 1: of the last two years, rates have been near zero 42 00:02:27,760 --> 00:02:30,400 Speaker 1: because the FED was trying to prop up the U 43 00:02:30,440 --> 00:02:33,400 Speaker 1: S economy cushion U S economy from the immediate impacts 44 00:02:33,440 --> 00:02:37,320 Speaker 1: of the COVID nineteen pandemic globally, but the gap between 45 00:02:37,440 --> 00:02:39,360 Speaker 1: rates and where we see inflation, which is at its 46 00:02:39,440 --> 00:02:42,320 Speaker 1: highest level since the eighties, is the most on record, 47 00:02:42,480 --> 00:02:45,360 Speaker 1: the spread between those two measures that we track in 48 00:02:45,400 --> 00:02:47,800 Speaker 1: the US economy and FED power was saying that he 49 00:02:47,919 --> 00:02:51,000 Speaker 1: envisages fifty basis point hikes. At the next couple of meetings, 50 00:02:51,000 --> 00:02:52,919 Speaker 1: he got asked, well, could we see a seventy five 51 00:02:52,919 --> 00:02:55,480 Speaker 1: basis point hike. He said that that was not currently 52 00:02:55,520 --> 00:02:58,160 Speaker 1: being considered by the f O m C. Not the 53 00:02:58,200 --> 00:03:00,720 Speaker 1: only story of the day. M Of course, Lift and 54 00:03:01,000 --> 00:03:06,160 Speaker 1: Uber two very different stories, but similar market reaction. Lift 55 00:03:06,240 --> 00:03:09,359 Speaker 1: off by thirty biggest drop on record, a huge chunk 56 00:03:09,400 --> 00:03:11,720 Speaker 1: of its market cap lost after he gave a pretty 57 00:03:11,720 --> 00:03:13,960 Speaker 1: weak outlook, and there are concerns that it's gonna have 58 00:03:13,960 --> 00:03:16,840 Speaker 1: to spend heavy on driver incentives, which is going to 59 00:03:16,880 --> 00:03:20,480 Speaker 1: weigh on profit. Uber actually showed some strength interesting ebit 60 00:03:20,560 --> 00:03:23,800 Speaker 1: DAR forecast, but again the stock suffering in conjunction with 61 00:03:23,880 --> 00:03:27,280 Speaker 1: its industry peer lift. Big questions now about how these 62 00:03:27,320 --> 00:03:29,760 Speaker 1: two companies and bride Sharing stand on their own two 63 00:03:29,760 --> 00:03:32,880 Speaker 1: feet in this post pandemic world. Then all right, add 64 00:03:32,919 --> 00:03:35,800 Speaker 1: thank you lots to digest today. The Federal Reserve, as 65 00:03:35,840 --> 00:03:39,080 Speaker 1: i'd saying, giving a much needed boost to tech stocks 66 00:03:39,120 --> 00:03:41,720 Speaker 1: by ruling out a more aggressive rate hype path and 67 00:03:41,760 --> 00:03:45,400 Speaker 1: reassuring the US economy will stay strong. As you mentioned, 68 00:03:45,520 --> 00:03:49,800 Speaker 1: NASDAC nearly three biggest one day jump in a week. 69 00:03:50,160 --> 00:03:52,600 Speaker 1: Liz Young, head of investment Strategy, it's so far joined 70 00:03:52,760 --> 00:03:55,720 Speaker 1: us now, So look, lot's going on here. What do 71 00:03:55,760 --> 00:03:57,760 Speaker 1: you think the ripple effects of this are really going 72 00:03:57,800 --> 00:04:00,000 Speaker 1: to be on the macro environment over the next few 73 00:04:00,040 --> 00:04:04,440 Speaker 1: months and the next couple of years. Well, the reality 74 00:04:04,480 --> 00:04:07,240 Speaker 1: of it is that this is the first of probably 75 00:04:07,280 --> 00:04:10,200 Speaker 1: a few larger hikes that we're going to see. It 76 00:04:10,240 --> 00:04:13,080 Speaker 1: was important to get this first big fifty basis point 77 00:04:13,200 --> 00:04:16,359 Speaker 1: hike behind us, because I think the anticipation was really 78 00:04:16,760 --> 00:04:20,320 Speaker 1: killing us as far as investor sentiment goes. But we're 79 00:04:20,440 --> 00:04:22,680 Speaker 1: probably still going to see another fifty in June. We 80 00:04:22,800 --> 00:04:26,320 Speaker 1: may see again another fifty in July. The ripple effects 81 00:04:26,400 --> 00:04:31,919 Speaker 1: of those together should hopefully damp in demand to a 82 00:04:31,960 --> 00:04:35,040 Speaker 1: point that some of this supply demand stuff becomes more 83 00:04:35,080 --> 00:04:39,400 Speaker 1: imbalanced and we see concurrently a rollover in inflation. The 84 00:04:39,520 --> 00:04:42,200 Speaker 1: issue here, and I heard you guys just talking about 85 00:04:42,240 --> 00:04:45,520 Speaker 1: the spread between the tenure Treasury UH and CPI and 86 00:04:45,760 --> 00:04:48,080 Speaker 1: the spread between CPI and where the Fed Funds rate is. 87 00:04:48,520 --> 00:04:50,839 Speaker 1: It's not that we're trying to get the Fed funds 88 00:04:50,920 --> 00:04:54,560 Speaker 1: rate and the CPI rate to meet anytime soon. It's 89 00:04:54,600 --> 00:04:56,920 Speaker 1: that as the Fed funds rate moves up, we want 90 00:04:56,920 --> 00:04:58,960 Speaker 1: CPI to move down, and we want to see that 91 00:04:59,000 --> 00:05:02,080 Speaker 1: move down, hope fully with a quick pace, because that's 92 00:05:02,080 --> 00:05:04,560 Speaker 1: what's biting into the consumer. But the issue that we're 93 00:05:04,560 --> 00:05:06,600 Speaker 1: probably going to face through summer is that we're sitting 94 00:05:06,640 --> 00:05:08,680 Speaker 1: at an eight and a half percent c p I number. 95 00:05:08,960 --> 00:05:10,960 Speaker 1: Even if this is the peak, it's not as if 96 00:05:11,000 --> 00:05:12,640 Speaker 1: it's going to fall from eight and a half percent 97 00:05:12,720 --> 00:05:15,280 Speaker 1: down to three percent overnight, So there's going to be 98 00:05:15,400 --> 00:05:20,280 Speaker 1: a gradual reduction. We're just hopeful that as we raise rates, 99 00:05:20,279 --> 00:05:22,600 Speaker 1: hopefully for fifty basis points, and we go at it 100 00:05:22,640 --> 00:05:25,279 Speaker 1: with a heavy enough hammer, that CPI comes back a 101 00:05:25,279 --> 00:05:28,520 Speaker 1: little faster than the Fed funds rate has to go up. 102 00:05:29,279 --> 00:05:31,599 Speaker 1: So look, tech equities are among many stocks that have 103 00:05:31,680 --> 00:05:35,440 Speaker 1: taken a giant hit this year. What does this mean 104 00:05:35,520 --> 00:05:39,880 Speaker 1: for tech stocks in particular? So tech stocks, if we 105 00:05:40,000 --> 00:05:42,680 Speaker 1: just use the nasdack to represent tech stocks, the Nasdaq 106 00:05:42,800 --> 00:05:45,920 Speaker 1: is in bear market territory. Maybe after today it's narrowly 107 00:05:46,040 --> 00:05:50,520 Speaker 1: out of bear market territory, but it probably should have been. 108 00:05:50,600 --> 00:05:54,240 Speaker 1: And given where evaluations were before we started to really 109 00:05:54,240 --> 00:05:57,599 Speaker 1: worry about Fed rate hikes and monetary policy tightening, some 110 00:05:57,760 --> 00:06:00,240 Speaker 1: of that needed to come out of the system. Some 111 00:06:00,320 --> 00:06:02,960 Speaker 1: of that bloat needed to come out of the system. 112 00:06:03,200 --> 00:06:05,160 Speaker 1: So the correction that tech stocks have seen to this 113 00:06:05,279 --> 00:06:08,919 Speaker 1: point I think makes sense given the inflated valuations that 114 00:06:08,960 --> 00:06:11,960 Speaker 1: we're at. Also, when you look though at some of 115 00:06:12,000 --> 00:06:15,480 Speaker 1: those tech stocks, they're still at pretty high valuation. So 116 00:06:15,839 --> 00:06:17,680 Speaker 1: I wouldn't sit here and say that they're not going 117 00:06:17,720 --> 00:06:19,840 Speaker 1: to go down further and that there isn't more risk 118 00:06:19,920 --> 00:06:23,280 Speaker 1: in the system. But long term, if we look back 119 00:06:23,320 --> 00:06:25,840 Speaker 1: on this time period, let's say five years from now, 120 00:06:26,080 --> 00:06:27,880 Speaker 1: we're probably gonna look at it and say, you know what, 121 00:06:28,040 --> 00:06:31,359 Speaker 1: some of those names were really good bargains at those levels. 122 00:06:31,640 --> 00:06:34,640 Speaker 1: So this isn't okay. Time to be looking at tech 123 00:06:34,839 --> 00:06:37,640 Speaker 1: as a longer term holding, and longer term here I'm 124 00:06:37,680 --> 00:06:40,920 Speaker 1: talking about two years, three years, five years, looking at 125 00:06:40,920 --> 00:06:43,359 Speaker 1: it as a long term holding, and looking for the 126 00:06:43,360 --> 00:06:46,240 Speaker 1: companies that are high quality, that are still offering you 127 00:06:46,360 --> 00:06:50,200 Speaker 1: growth prospects, and that aren't over levered or aren't trading 128 00:06:50,240 --> 00:06:53,279 Speaker 1: at unreasonable valuations given where we are in the cycle. 129 00:06:53,520 --> 00:06:56,400 Speaker 1: So I think it's okay, just come towing back in. Okay, 130 00:06:56,440 --> 00:06:58,039 Speaker 1: how do you look at a company like Lift though 131 00:06:58,120 --> 00:07:02,760 Speaker 1: losing of its value, Ubers earnings, We're a different story, 132 00:07:02,800 --> 00:07:06,000 Speaker 1: but we're also seeing them take a slight leg down today. 133 00:07:06,120 --> 00:07:08,640 Speaker 1: Investors are looking at you know, both of these companies 134 00:07:08,680 --> 00:07:13,160 Speaker 1: as a gauge of the health of the consumer, right well, 135 00:07:13,320 --> 00:07:14,760 Speaker 1: and I think there's a lot of different ways to 136 00:07:14,760 --> 00:07:17,080 Speaker 1: look at the gauge of the health of the consumer. 137 00:07:17,120 --> 00:07:19,560 Speaker 1: I think what we're seeing is that, because as I mentioned, 138 00:07:19,560 --> 00:07:21,720 Speaker 1: a lot of that bloat came out of the system. 139 00:07:21,760 --> 00:07:25,000 Speaker 1: Now you're seeing companies actually react in the stock market 140 00:07:25,160 --> 00:07:29,040 Speaker 1: based on fundamentals. So we've gotten not as much of 141 00:07:29,040 --> 00:07:32,200 Speaker 1: a tail wind from low rates, and you see earnings 142 00:07:32,200 --> 00:07:35,160 Speaker 1: come out and companies are reacting to that. Generally speaking, 143 00:07:35,200 --> 00:07:37,960 Speaker 1: the market overreacts in the short term. I also happened 144 00:07:38,000 --> 00:07:40,120 Speaker 1: to think that this big rally we saw after the 145 00:07:40,120 --> 00:07:43,000 Speaker 1: FED meeting today was a slight overreaction and we probably 146 00:07:43,040 --> 00:07:45,760 Speaker 1: end up giving some of that back. So it's possible 147 00:07:45,800 --> 00:07:48,160 Speaker 1: that we just need the dusk to settle on some 148 00:07:48,240 --> 00:07:50,160 Speaker 1: of these companies that have drawn down quite a bit 149 00:07:50,200 --> 00:07:53,320 Speaker 1: more after earnings reports. But frankly, I want to see 150 00:07:53,360 --> 00:07:55,520 Speaker 1: the market react to earnings. I want to see the 151 00:07:55,560 --> 00:07:59,440 Speaker 1: market actually paying attention to fundamentals and wanting to get 152 00:07:59,480 --> 00:08:02,320 Speaker 1: what it paid is for and holding companies more accountable 153 00:08:02,320 --> 00:08:05,360 Speaker 1: from a fundamental perspective instead of just relying on the 154 00:08:05,360 --> 00:08:08,400 Speaker 1: macro backdrop to drive prices. On the other hand, I'm 155 00:08:08,440 --> 00:08:12,360 Speaker 1: about to talk to Airbnb CEO Brian Chesky. Airbnb seeing 156 00:08:12,440 --> 00:08:15,920 Speaker 1: substantial demand through the rest of the year. They say, 157 00:08:16,280 --> 00:08:17,920 Speaker 1: you know, are you at all concerned that some of 158 00:08:17,960 --> 00:08:20,840 Speaker 1: the demand companies are seeing is pent up demand coming 159 00:08:20,920 --> 00:08:23,000 Speaker 1: out of the pandemic and that we're going to see 160 00:08:23,040 --> 00:08:29,320 Speaker 1: another reordering as we move into next year. Well, depending 161 00:08:29,400 --> 00:08:31,760 Speaker 1: on the sector that we're talking about, I think the 162 00:08:31,800 --> 00:08:34,480 Speaker 1: travel sector is still seeing some of that pent up 163 00:08:34,640 --> 00:08:38,680 Speaker 1: demand that people had been waiting to unleash once they could. 164 00:08:39,160 --> 00:08:41,200 Speaker 1: The problem that the travel sector is going to face 165 00:08:41,280 --> 00:08:44,160 Speaker 1: in this inflationary environment is that prices are going up. 166 00:08:44,280 --> 00:08:47,400 Speaker 1: Flights are more expensive, hotels are more expensive. All of 167 00:08:47,400 --> 00:08:50,040 Speaker 1: the experiences that we were hoping to have are more 168 00:08:50,080 --> 00:08:51,959 Speaker 1: expensive than they were a year ago. So I think 169 00:08:51,960 --> 00:08:54,560 Speaker 1: people are going to start to make different decisions on 170 00:08:54,640 --> 00:08:57,840 Speaker 1: that front. As far as pent up demand, as like 171 00:08:57,880 --> 00:09:00,800 Speaker 1: if we're looking at goods companies, looking at consumers actually 172 00:09:00,800 --> 00:09:04,360 Speaker 1: buying things in stores or things online, I think a 173 00:09:04,360 --> 00:09:07,119 Speaker 1: lot of that pent up demand has already been unleashed, 174 00:09:07,360 --> 00:09:09,440 Speaker 1: and now we're in a place where we can see 175 00:09:09,480 --> 00:09:11,559 Speaker 1: steady demand. But I don't know that we're going to 176 00:09:11,640 --> 00:09:15,640 Speaker 1: see again that huge surgeon demand that we saw when 177 00:09:15,679 --> 00:09:17,640 Speaker 1: things started to open back up for the first time. 178 00:09:18,360 --> 00:09:21,800 Speaker 1: All right, Liz Young sopha ahead of Investment Strategy. Great 179 00:09:21,800 --> 00:09:33,880 Speaker 1: to have you back here on the show. Thank you everyone, 180 00:09:34,120 --> 00:09:37,120 Speaker 1: it seems wants to get away. Travel experts expect this 181 00:09:37,160 --> 00:09:39,760 Speaker 1: summer to be one of the best the industry has 182 00:09:39,800 --> 00:09:44,240 Speaker 1: seen after two years of pandemic lockdown. If Airbnb's earnings 183 00:09:44,320 --> 00:09:46,920 Speaker 1: or any indication it will be a busy summer indeed, 184 00:09:46,960 --> 00:09:51,240 Speaker 1: with CEO Brian Chesky seeing quote higher than historical demand, 185 00:09:51,320 --> 00:09:53,880 Speaker 1: joining us now to talk about that more. Airbnb CEO 186 00:09:53,960 --> 00:09:56,400 Speaker 1: and co founder Brian Chesky himself Grime. Great to have 187 00:09:56,520 --> 00:09:59,800 Speaker 1: you back on the show as always. I know some 188 00:10:00,040 --> 00:10:04,040 Speaker 1: of the trends you're seeing surpassed even your internal expectations. 189 00:10:04,120 --> 00:10:08,280 Speaker 1: What surprised you most about the demand you're seeing? Well, 190 00:10:08,320 --> 00:10:10,480 Speaker 1: I think what surprised me maybe the most, was that 191 00:10:10,520 --> 00:10:13,440 Speaker 1: I was expecting last year to be the biggest traveler 192 00:10:13,520 --> 00:10:15,920 Speaker 1: rebound that we had probably ever seen in a century. 193 00:10:15,960 --> 00:10:18,880 Speaker 1: You've never seen so much pent up demand, and I 194 00:10:18,920 --> 00:10:21,600 Speaker 1: think that that surprised me is we're seeing potentially even 195 00:10:21,640 --> 00:10:24,760 Speaker 1: more pent up demand this year, and maybe that's not surprising. 196 00:10:24,760 --> 00:10:27,360 Speaker 1: I think people weren't quite comfortable crossing borders, and yet 197 00:10:27,400 --> 00:10:29,880 Speaker 1: the delta strained, and I think you're gonna see this 198 00:10:30,000 --> 00:10:33,520 Speaker 1: summer travel season unlike we've ever seen before. And the 199 00:10:33,520 --> 00:10:35,920 Speaker 1: thing about travel is there are some things when they're 200 00:10:35,960 --> 00:10:37,959 Speaker 1: taken away from you, you kind of don't want to 201 00:10:38,000 --> 00:10:39,880 Speaker 1: do them again. I don't think that's travel. I think 202 00:10:39,920 --> 00:10:41,920 Speaker 1: the longer people can't travel, the more they want to travel. 203 00:10:41,920 --> 00:10:44,840 Speaker 1: The morning bushes they get, so you use the words 204 00:10:44,920 --> 00:10:47,360 Speaker 1: pent up demand there. And I'm curious how you think 205 00:10:47,440 --> 00:10:50,720 Speaker 1: this summer might compare to next summer. For example, are 206 00:10:50,760 --> 00:10:53,280 Speaker 1: you expecting the growth rate to slow down after people 207 00:10:53,520 --> 00:10:57,320 Speaker 1: get this out of their system a little bit? Um No, 208 00:10:57,440 --> 00:10:59,960 Speaker 1: I don't think so. I mean, number one, Asia probably 209 00:11:00,040 --> 00:11:02,800 Speaker 1: won't recover right away. It's going to take some time. 210 00:11:02,920 --> 00:11:05,120 Speaker 1: And you know that's where the large percent of the 211 00:11:05,120 --> 00:11:07,880 Speaker 1: world population lives. So I think that next year you're 212 00:11:07,880 --> 00:11:10,000 Speaker 1: going to see a huge amount of growth coming from Asia. 213 00:11:10,040 --> 00:11:11,920 Speaker 1: It's gonna be a little slower this year. We have 214 00:11:11,960 --> 00:11:14,240 Speaker 1: a lot of pent up demand for Europe and North America. 215 00:11:14,559 --> 00:11:17,240 Speaker 1: The thing Emily that would just say is this, there 216 00:11:17,280 --> 00:11:20,679 Speaker 1: are new use cases that are here to stay. People 217 00:11:20,720 --> 00:11:23,920 Speaker 1: traveling to rural areas, people staying longer, people staying at 218 00:11:24,000 --> 00:11:26,680 Speaker 1: me for a month or longer. But then our bread 219 00:11:26,679 --> 00:11:29,280 Speaker 1: and butter historically has been cross border and urban and 220 00:11:29,320 --> 00:11:32,480 Speaker 1: that is now back at or above two thou levels. 221 00:11:32,520 --> 00:11:35,240 Speaker 1: So we're seeing a combination of the old trends coming 222 00:11:35,280 --> 00:11:38,560 Speaker 1: back plus new trends sustaining. That's going to continue, and 223 00:11:38,559 --> 00:11:40,960 Speaker 1: then eventually you're gonna have other geographies like Asia comes 224 00:11:41,000 --> 00:11:43,800 Speaker 1: So I'm pretty bullish the next couple years. How strong 225 00:11:43,880 --> 00:11:46,839 Speaker 1: is the consumer in your opinion, because obviously, with inflation, 226 00:11:47,600 --> 00:11:49,720 Speaker 1: the cost of flights are going up, the cost of 227 00:11:49,720 --> 00:11:52,319 Speaker 1: travel more broadly is going up, And I wonder if 228 00:11:52,320 --> 00:11:55,160 Speaker 1: you think is there a point where inflation catches up 229 00:11:55,440 --> 00:11:59,720 Speaker 1: with the consumer and overwhelmed that pent up demand. I 230 00:11:59,760 --> 00:12:03,080 Speaker 1: think that it could affect travel more broadly, but I 231 00:12:03,080 --> 00:12:06,000 Speaker 1: think it's very important for me to distinguish our business. 232 00:12:06,480 --> 00:12:09,640 Speaker 1: You know, during the pandemic, we recovered faster than any 233 00:12:09,640 --> 00:12:12,960 Speaker 1: travel company. That's clear. I don't think that's a controversial statement. 234 00:12:12,960 --> 00:12:15,880 Speaker 1: And why is that. It's because we have nearly every 235 00:12:15,880 --> 00:12:18,400 Speaker 1: type of space and nearly every community at nearly every 236 00:12:18,400 --> 00:12:21,520 Speaker 1: price point. So when people feel like they can't fly 237 00:12:21,840 --> 00:12:23,959 Speaker 1: they can't afford to fly, they can still get in 238 00:12:24,000 --> 00:12:25,960 Speaker 1: a car and book an air nearby. And I do 239 00:12:26,000 --> 00:12:27,320 Speaker 1: think a lot of people still want to go to 240 00:12:27,360 --> 00:12:30,240 Speaker 1: the house. Airbing b's are typically still cheaper than a hotel, 241 00:12:30,600 --> 00:12:33,200 Speaker 1: and so we're pretty resilient no matter how changing travel 242 00:12:33,280 --> 00:12:37,880 Speaker 1: the man occurs. Lift meantime is getting pummeled today investors 243 00:12:37,920 --> 00:12:42,160 Speaker 1: not excited about their outlook. Obviously a different company, but 244 00:12:42,280 --> 00:12:45,880 Speaker 1: another sort of measure of consumer sentiment, and I wonder 245 00:12:46,000 --> 00:12:48,839 Speaker 1: how you read that, you know, given that people need 246 00:12:48,920 --> 00:12:51,600 Speaker 1: this kind of transportation to get from place to place airbing, 247 00:12:51,640 --> 00:12:55,920 Speaker 1: b or not. I think that every company is different, 248 00:12:56,000 --> 00:12:58,480 Speaker 1: and so I think that, Um, I think that the 249 00:12:58,600 --> 00:13:01,880 Speaker 1: phenomenon of how people we're moving within cities is pretty 250 00:13:01,960 --> 00:13:06,080 Speaker 1: distinct from the phenomenon of people traveling. And yes, people 251 00:13:06,120 --> 00:13:09,000 Speaker 1: do need uh you know, transportation within markets. But the 252 00:13:09,040 --> 00:13:11,240 Speaker 1: thing I would just know is about half our business 253 00:13:11,320 --> 00:13:13,600 Speaker 1: are for stays outside of cities, right, so we have 254 00:13:13,600 --> 00:13:16,720 Speaker 1: a lot of vacation rentals rural areas where ridesharing would 255 00:13:16,760 --> 00:13:20,160 Speaker 1: not be very prolific. Well, on that note, you are 256 00:13:20,160 --> 00:13:22,680 Speaker 1: saying huge demand for homes, and I wonder how that's 257 00:13:22,679 --> 00:13:25,680 Speaker 1: translating into demand for urban travel. When do you think 258 00:13:26,000 --> 00:13:30,440 Speaker 1: tourism in cities will fully rebound. Well, it's already fully 259 00:13:30,520 --> 00:13:33,920 Speaker 1: I mean it's already above at this very moment with Airbnb. 260 00:13:34,400 --> 00:13:36,680 Speaker 1: I can't say it's above for everyone. I don't know 261 00:13:36,679 --> 00:13:39,200 Speaker 1: if hotels are back to twenteen levels, but we are, 262 00:13:39,280 --> 00:13:41,720 Speaker 1: so I think it's already back. I think the summer 263 00:13:41,760 --> 00:13:44,640 Speaker 1: it will be back. But Emily, here's the difference. Before 264 00:13:44,679 --> 00:13:48,360 Speaker 1: the pandemic really our business was dominated by urban areas 265 00:13:48,480 --> 00:13:50,600 Speaker 1: and the way people travel. They would go to Vegas 266 00:13:50,720 --> 00:13:54,360 Speaker 1: or Los Angeles, or Rome or Paris. Now they're consideration 267 00:13:54,440 --> 00:13:57,800 Speaker 1: set involves hundreds thousand places all over the world. They're 268 00:13:57,840 --> 00:14:00,120 Speaker 1: open to national parks, They're going to rural area to 269 00:14:00,160 --> 00:14:02,480 Speaker 1: go into small towns, so there's just a lot wider 270 00:14:02,480 --> 00:14:06,559 Speaker 1: options now. Asking about the Apack region, the Apack region 271 00:14:06,880 --> 00:14:10,119 Speaker 1: still struggling with COVID, what steps are you taking their 272 00:14:10,200 --> 00:14:13,160 Speaker 1: to use your financial resources widely in that region where 273 00:14:13,160 --> 00:14:16,560 Speaker 1: there isn't much demand. Do you see things improving there? 274 00:14:17,280 --> 00:14:21,400 Speaker 1: But they are gradually improving. But money can't fix the problem. 275 00:14:21,560 --> 00:14:23,480 Speaker 1: People just need to get comfortable traveling and you need 276 00:14:23,520 --> 00:14:27,160 Speaker 1: to start crossing borders again. That is inevitable. People will 277 00:14:27,200 --> 00:14:30,360 Speaker 1: eventually cross borders and travel in Asia more than they 278 00:14:30,400 --> 00:14:33,360 Speaker 1: ever have before. But until they're comfortable, that's not something 279 00:14:33,400 --> 00:14:35,360 Speaker 1: we can fix with money. The best thing we can 280 00:14:35,400 --> 00:14:37,560 Speaker 1: do is wait for that market to be ready. It 281 00:14:37,600 --> 00:14:39,920 Speaker 1: will certainly start coming back this year. I think you're 282 00:14:39,920 --> 00:14:43,640 Speaker 1: gonna see a much bigger rebound for Asia probably next year. 283 00:14:43,680 --> 00:14:46,360 Speaker 1: But again that those questions are kind of beyond me. 284 00:14:46,400 --> 00:14:49,080 Speaker 1: This is really more a matter of where the recovery 285 00:14:49,120 --> 00:14:51,720 Speaker 1: is for the pandemic in those countries. Okay, So let's 286 00:14:51,720 --> 00:14:54,040 Speaker 1: talk about something that's not beyond you, and that is 287 00:14:54,120 --> 00:14:58,800 Speaker 1: your work from Anywhere policy. You've announced that Airbnb employees 288 00:14:58,840 --> 00:15:02,520 Speaker 1: can work from anywhere, and I'm curious how you think 289 00:15:02,600 --> 00:15:07,200 Speaker 1: that will impact recruiting and impact hiring. Well, I can. 290 00:15:07,560 --> 00:15:11,920 Speaker 1: I'll give you one stat So we announced last thursday, 291 00:15:12,200 --> 00:15:16,280 Speaker 1: um it was April that you know, employees of Airbnb 292 00:15:16,400 --> 00:15:19,360 Speaker 1: can now work, live and work anywhere in the world. 293 00:15:19,760 --> 00:15:22,120 Speaker 1: If you move within the country you work, We're not 294 00:15:22,120 --> 00:15:24,120 Speaker 1: going to reduce your pay. A lot of companies do 295 00:15:24,240 --> 00:15:26,880 Speaker 1: location based pay. We don't do that. Within the country. 296 00:15:27,080 --> 00:15:28,920 Speaker 1: You can go to a hundred and seventy different countries, 297 00:15:28,960 --> 00:15:31,840 Speaker 1: live for nine days at a time. Since that announcement, 298 00:15:32,280 --> 00:15:35,200 Speaker 1: more than a hundred thousand visits have come to our 299 00:15:35,320 --> 00:15:38,000 Speaker 1: Jobs and Careers page. A hundred thousand. So I think 300 00:15:38,080 --> 00:15:40,400 Speaker 1: that gives you a sense. What it tells me is 301 00:15:40,440 --> 00:15:44,400 Speaker 1: that flexibility is the future. After compensation, Flexibly will be 302 00:15:44,440 --> 00:15:48,480 Speaker 1: the most important benefit employers can offer. The best people 303 00:15:48,480 --> 00:15:50,600 Speaker 1: aren't just in Silken Valley. They're not just in New York. 304 00:15:50,640 --> 00:15:53,400 Speaker 1: The best people are now everywhere in any company that 305 00:15:53,480 --> 00:15:56,080 Speaker 1: limits their talent pool to a commuting radius around their 306 00:15:56,120 --> 00:16:00,640 Speaker 1: office will be at a disadvantage. You justin now an 307 00:16:00,680 --> 00:16:05,480 Speaker 1: anti party crackdown, tightening up restrictions around Memorial Day and 308 00:16:05,600 --> 00:16:09,440 Speaker 1: July fourth. You know, still given despite the moves that 309 00:16:09,480 --> 00:16:12,400 Speaker 1: AIRBNBA has been making, we've seen people evade the rules. 310 00:16:12,440 --> 00:16:14,680 Speaker 1: We saw what happened in Pittsburgh and is shooting at 311 00:16:14,720 --> 00:16:19,200 Speaker 1: an Airbnb that's sadly uh, you know, killed two teenagers. Um, 312 00:16:19,200 --> 00:16:22,560 Speaker 1: what more steps do you think Airbnb could take in 313 00:16:22,600 --> 00:16:26,280 Speaker 1: this arena to make sure that people are always safe 314 00:16:26,400 --> 00:16:29,640 Speaker 1: when they're staying at an Airbnb. Yeah, well number one, Emily, 315 00:16:29,960 --> 00:16:31,680 Speaker 1: you just said it. We want to make sure that 316 00:16:31,720 --> 00:16:34,480 Speaker 1: people always feel safe when they're an Airbnb. And the 317 00:16:34,560 --> 00:16:36,280 Speaker 1: name of the game is we can always do more, 318 00:16:36,320 --> 00:16:38,400 Speaker 1: and we're always trying to do more than we've done before. 319 00:16:38,760 --> 00:16:42,520 Speaker 1: So what we've done is we background check everyone United States, 320 00:16:42,560 --> 00:16:46,760 Speaker 1: every guest and host. We have a risky reservation system 321 00:16:46,800 --> 00:16:50,720 Speaker 1: where where we put reservations on high alert during certain holidays. 322 00:16:50,760 --> 00:16:53,080 Speaker 1: So this Memorial Day and this July we're going to 323 00:16:53,160 --> 00:16:56,000 Speaker 1: be very much on high alert about parties. We've banned 324 00:16:56,040 --> 00:16:59,200 Speaker 1: party houses, meaning you can't get an Airbnb for more 325 00:16:59,240 --> 00:17:01,680 Speaker 1: than sixteen people in a house that's deemed a party. 326 00:17:01,920 --> 00:17:03,920 Speaker 1: And so we're doing a lot of things. We're gonna 327 00:17:03,960 --> 00:17:06,720 Speaker 1: continue to get more and more aggressive. Um. The good 328 00:17:06,720 --> 00:17:09,600 Speaker 1: news is the incident rate has steadily been going down 329 00:17:09,720 --> 00:17:13,080 Speaker 1: over time. The bad news is one incident is always 330 00:17:13,080 --> 00:17:15,040 Speaker 1: one too many, so we have to continue to work 331 00:17:15,040 --> 00:17:18,480 Speaker 1: really hard. So you tweeted that you will be announcing 332 00:17:18,480 --> 00:17:22,280 Speaker 1: the biggest change to Airbnb in a decade next week. 333 00:17:22,320 --> 00:17:24,320 Speaker 1: We're all on the edge of our seats. What more 334 00:17:24,320 --> 00:17:27,240 Speaker 1: can you tell us? Yeah, you want me to say 335 00:17:27,280 --> 00:17:30,879 Speaker 1: it right now, I'll just I'll just yeah, I'll just 336 00:17:30,920 --> 00:17:33,840 Speaker 1: say this. Number One, I'm really excited because we have 337 00:17:34,000 --> 00:17:36,720 Speaker 1: the biggest updates to our product in ten years. We've 338 00:17:36,760 --> 00:17:38,840 Speaker 1: been thinking about this for a very long period of time. 339 00:17:39,240 --> 00:17:40,560 Speaker 1: I can't say a lot, but I'll just give a 340 00:17:40,640 --> 00:17:42,760 Speaker 1: couple of clues. Number One, there will be a whole 341 00:17:42,760 --> 00:17:44,960 Speaker 1: new way to search on Airbnb, and this new way 342 00:17:45,000 --> 00:17:46,280 Speaker 1: to search, it's going to be a new way to 343 00:17:46,320 --> 00:17:49,359 Speaker 1: find really interesting homes. And then the second thing is 344 00:17:49,400 --> 00:17:52,200 Speaker 1: we're gonna have a big step change to our service 345 00:17:52,280 --> 00:17:54,760 Speaker 1: level and the kind of customer service we offer. You'll 346 00:17:54,800 --> 00:17:57,240 Speaker 1: see a number of updates next week. I'm really excited 347 00:17:57,280 --> 00:18:00,359 Speaker 1: about it. It's May eleven, nine A M. E. Stern 348 00:18:00,520 --> 00:18:02,680 Speaker 1: Right on our homepage. There will be a small video, 349 00:18:02,720 --> 00:18:04,399 Speaker 1: a short video, and you can get all the updates. 350 00:18:04,400 --> 00:18:07,159 Speaker 1: Then we will be watching. I got to ask you 351 00:18:07,160 --> 00:18:10,120 Speaker 1: about crypto payments. I know that was a top suggestion 352 00:18:10,680 --> 00:18:13,200 Speaker 1: from your users. What progress have you made on that? 353 00:18:14,240 --> 00:18:17,800 Speaker 1: We've We've We've been steadily making progress, um in so 354 00:18:17,960 --> 00:18:20,480 Speaker 1: far that we've certainly researched it. We've looked at a 355 00:18:20,560 --> 00:18:23,960 Speaker 1: number of ways that crypto could be used. Obviously, it's 356 00:18:24,000 --> 00:18:26,960 Speaker 1: a popular request for people to all pay with crypto 357 00:18:27,119 --> 00:18:29,840 Speaker 1: or be receiving money with crypto. But that's all about 358 00:18:29,880 --> 00:18:32,560 Speaker 1: all I can say right now. So look, you know, 359 00:18:32,600 --> 00:18:35,200 Speaker 1: I know you've also been tweeting about web three and 360 00:18:35,320 --> 00:18:38,440 Speaker 1: you know, curious about what it does and does not mean. 361 00:18:38,880 --> 00:18:41,280 Speaker 1: How do you see, you know, web three or crypto 362 00:18:41,400 --> 00:18:44,399 Speaker 1: opening up new possibilities for innovation or are some of 363 00:18:44,440 --> 00:18:50,119 Speaker 1: these technologies potentially overhyped? Well? I think both are very possible, right. 364 00:18:50,160 --> 00:18:53,880 Speaker 1: I mean, I was not around during the dot com days. 365 00:18:53,920 --> 00:18:57,000 Speaker 1: I was in design school at the time, but um, 366 00:18:57,160 --> 00:18:59,520 Speaker 1: most of the companies during the dot Com era aren't around. 367 00:18:59,720 --> 00:19:02,480 Speaker 1: That being said, almost all the ideas from dot Com 368 00:19:02,480 --> 00:19:06,639 Speaker 1: that didn't work now work in some later incarnation, So 369 00:19:06,840 --> 00:19:09,520 Speaker 1: I think that's the technology is really exciting. I think 370 00:19:09,560 --> 00:19:12,000 Speaker 1: the idea of empowering people over the world is really 371 00:19:12,000 --> 00:19:14,720 Speaker 1: exciting as well. But I also do think that, like 372 00:19:14,880 --> 00:19:17,560 Speaker 1: any new emerging technology, the vast majority companies will probably 373 00:19:17,600 --> 00:19:19,600 Speaker 1: not be around the future, but the ones that will 374 00:19:19,640 --> 00:19:21,560 Speaker 1: be around could be really really large. Look at the 375 00:19:21,600 --> 00:19:24,240 Speaker 1: dot com bubble, Amazon emerged from that. It was a 376 00:19:24,320 --> 00:19:26,440 Speaker 1: huge company. So I do think there will be really 377 00:19:26,520 --> 00:19:29,440 Speaker 1: large companies emerging. But just like you know, there's a 378 00:19:29,440 --> 00:19:33,960 Speaker 1: lot of speculation. All right, Well, looking forward to next week. 379 00:19:34,240 --> 00:19:37,879 Speaker 1: Brian open to speak with you again then May eleven. 380 00:19:37,920 --> 00:19:41,280 Speaker 1: Brian Chesky, CEO of air VnB. As always, thank you 381 00:19:41,400 --> 00:19:46,159 Speaker 1: for taking the time today. Coming up, why father? That 382 00:19:46,280 --> 00:19:49,480 Speaker 1: is a question being asked inside Twitter right now ahead 383 00:19:49,520 --> 00:19:51,560 Speaker 1: of an impending sale that Elon Musk. More on what 384 00:19:51,560 --> 00:19:56,639 Speaker 1: the company is doing to motivate staffers next, This is Bloomberg. 385 00:20:14,680 --> 00:20:17,240 Speaker 1: A few other stories were continuing to watch Twitter doing 386 00:20:17,280 --> 00:20:20,679 Speaker 1: its best to quell concerns employees ahead of the Elon 387 00:20:20,760 --> 00:20:24,800 Speaker 1: Musk pending acquisition. At an internal meeting, Twitter's VP of 388 00:20:24,840 --> 00:20:28,000 Speaker 1: product tried to appeal to worker sense of community, saying 389 00:20:28,040 --> 00:20:31,119 Speaker 1: they have a responsibility to each other. This according to 390 00:20:31,160 --> 00:20:35,320 Speaker 1: people familiar with the matter. Twitter, which employs more than people, 391 00:20:35,520 --> 00:20:39,000 Speaker 1: warned about a possible staff exodus and a regulatory filing 392 00:20:39,040 --> 00:20:43,159 Speaker 1: this week. Musk has suggested cutting costs, including layoffs, as 393 00:20:43,200 --> 00:20:46,440 Speaker 1: part of his plan to grow Twitter. The Securities and 394 00:20:46,480 --> 00:20:52,040 Speaker 1: Exchange Commission is investigating Deity's chaotic debut in New York. 395 00:20:52,280 --> 00:20:55,600 Speaker 1: That is, when the ridehailing giant raised four point four 396 00:20:55,840 --> 00:21:00,480 Speaker 1: billion dollars days before revelations of China's probe into data 397 00:21:00,560 --> 00:21:05,960 Speaker 1: security tank The stock before today DEDE had fallen since 398 00:21:06,040 --> 00:21:10,119 Speaker 1: last summer's I P O, and the White House is 399 00:21:10,160 --> 00:21:13,320 Speaker 1: boosting support for quantum computing is trying to pours billions 400 00:21:13,320 --> 00:21:16,640 Speaker 1: into the next generation technology. President Biden signing a couple 401 00:21:16,680 --> 00:21:21,040 Speaker 1: of tech focused directives Wednesday. One would require the country's 402 00:21:21,080 --> 00:21:24,080 Speaker 1: most vulnerable I T systems to adopt new standards against 403 00:21:24,160 --> 00:21:37,080 Speaker 1: the threat of code cracking from quantum computers. Welcome back 404 00:21:37,119 --> 00:21:39,520 Speaker 1: to bloomer technology. I'm emily changing in San Francisco. Let's 405 00:21:39,520 --> 00:21:43,280 Speaker 1: get back to earnings with lift shares. Tumbling after providing 406 00:21:43,320 --> 00:21:46,480 Speaker 1: a disappointing second quarter outlook, even as revenue in the 407 00:21:46,480 --> 00:21:49,600 Speaker 1: first quarter beat estimates. The right sharing company planning to 408 00:21:49,640 --> 00:21:52,439 Speaker 1: spend more to attract drivers on the road ahead the 409 00:21:52,520 --> 00:21:57,439 Speaker 1: stock following as much as its steepest ever drop in 410 00:21:57,560 --> 00:21:59,520 Speaker 1: a single session. I want to bring in LIFT president 411 00:21:59,520 --> 00:22:01,920 Speaker 1: and co found or John Zimmer for his take on 412 00:22:02,000 --> 00:22:05,080 Speaker 1: all of this. So, John, clearly investors are spooked here. 413 00:22:05,160 --> 00:22:09,399 Speaker 1: What is your response to their response? Okay, it matters 414 00:22:09,440 --> 00:22:12,320 Speaker 1: to us the response. We don't like it. Um, we 415 00:22:12,359 --> 00:22:14,720 Speaker 1: take it seriously. Uh, and we believe we're doing the 416 00:22:14,800 --> 00:22:18,760 Speaker 1: right thing for the long term shareholder value. Uh. You know, first, 417 00:22:18,760 --> 00:22:21,200 Speaker 1: reflecting on Q one, Q one was a good quarter. 418 00:22:21,760 --> 00:22:25,000 Speaker 1: It was a new COVID high for rides. We had 419 00:22:25,040 --> 00:22:28,000 Speaker 1: improvements on both the driver and rider's side. And and 420 00:22:28,000 --> 00:22:30,480 Speaker 1: obviously with the market reacted to was us saying in 421 00:22:30,600 --> 00:22:33,000 Speaker 1: Q two, coming out of Q one, where we have 422 00:22:33,080 --> 00:22:36,680 Speaker 1: the largest spike in COVID cases with Almer Khan, we 423 00:22:36,720 --> 00:22:40,400 Speaker 1: want to make some additional investments in the market where 424 00:22:40,440 --> 00:22:42,840 Speaker 1: we see a lot of upside opportunity for return on 425 00:22:42,880 --> 00:22:46,119 Speaker 1: those investments. Um, and I think you know what the 426 00:22:46,160 --> 00:22:49,240 Speaker 1: market wants to hear is more guidance on what they're 427 00:22:49,240 --> 00:22:51,439 Speaker 1: gonna get for that, and so we'll certainly do that 428 00:22:51,480 --> 00:22:53,680 Speaker 1: in the quarters to come. Uh. And it's on us 429 00:22:53,720 --> 00:22:56,320 Speaker 1: to to prove it as we put up numbers in 430 00:22:56,320 --> 00:22:59,200 Speaker 1: in twe Q two, three and four. Dan, i'ves of 431 00:22:59,240 --> 00:23:01,600 Speaker 1: wed Bush. We're for to your spending guidance as in 432 00:23:01,720 --> 00:23:05,720 Speaker 1: nineteen eighties rock Star like disaster. You know, part of 433 00:23:05,720 --> 00:23:08,960 Speaker 1: what you're spending on is driver incentives. You know what 434 00:23:09,040 --> 00:23:12,000 Speaker 1: about concerns that lists this could lead to a race 435 00:23:12,040 --> 00:23:15,680 Speaker 1: to the bottom, a subsidy war with Uber. Yeah, well, 436 00:23:15,720 --> 00:23:18,320 Speaker 1: I think I think that prior statement is extreme and 437 00:23:18,400 --> 00:23:21,160 Speaker 1: not not really tied to what we're doing here. Uh. 438 00:23:21,240 --> 00:23:24,480 Speaker 1: And and I'm not concerned about a subsidy battle there. 439 00:23:24,480 --> 00:23:27,800 Speaker 1: There are some fundamental investments were making. The one that 440 00:23:27,840 --> 00:23:30,159 Speaker 1: we talked about and they got the most attention is 441 00:23:30,200 --> 00:23:32,880 Speaker 1: on the driver's side. You had a lot of inorganic 442 00:23:33,920 --> 00:23:37,720 Speaker 1: things happening when you have spike in COVID, whether that's 443 00:23:38,480 --> 00:23:42,680 Speaker 1: a quick reduction in demand, a quick increase in demand, uh, 444 00:23:42,680 --> 00:23:45,120 Speaker 1: and the need to add a drivers quickly. We are 445 00:23:45,160 --> 00:23:48,720 Speaker 1: seeing drivers come back organically. In fact, you every year 446 00:23:48,720 --> 00:23:52,280 Speaker 1: we had sev new driver activations. But based on data 447 00:23:52,320 --> 00:23:55,320 Speaker 1: we're seeing now, there's a lot more demand on the horizon, 448 00:23:55,600 --> 00:23:57,360 Speaker 1: and we want to prepare for that in the most 449 00:23:57,400 --> 00:24:00,000 Speaker 1: responsible way. To have low E T A s UH 450 00:24:00,119 --> 00:24:03,760 Speaker 1: and investing in drivers and investing in our marketplace technology 451 00:24:04,320 --> 00:24:07,800 Speaker 1: to us, is a prudent way of doing that. You've 452 00:24:07,840 --> 00:24:10,000 Speaker 1: said the cost of incentives will be passed down in 453 00:24:10,119 --> 00:24:17,439 Speaker 1: part to customers. Do you have any concerns about alienating writers. Um? Well, 454 00:24:17,560 --> 00:24:19,840 Speaker 1: we we always think about the price. I mean, that's 455 00:24:19,840 --> 00:24:22,760 Speaker 1: actually a big part of this investment is to make 456 00:24:22,800 --> 00:24:26,280 Speaker 1: sure we have the best E T A s uh 457 00:24:26,280 --> 00:24:29,879 Speaker 1: and the best prices in the marketplace. Um. And so 458 00:24:30,800 --> 00:24:33,800 Speaker 1: I think we're tying a few separate things. When you 459 00:24:33,880 --> 00:24:37,080 Speaker 1: have dynamic pricing and prices go up, uh, those go 460 00:24:37,200 --> 00:24:40,360 Speaker 1: down uh and are paid for by the writer. Um. 461 00:24:40,359 --> 00:24:43,440 Speaker 1: But we're making a few investments here, that being only 462 00:24:43,440 --> 00:24:46,680 Speaker 1: one of them. So investors are also wondering if they've 463 00:24:46,800 --> 00:24:50,800 Speaker 1: overestimated the opportunity in ride sharing our higher prices here 464 00:24:50,840 --> 00:24:53,840 Speaker 1: to stay. Is ride sharing a utility for the masses 465 00:24:53,920 --> 00:24:56,560 Speaker 1: or a luxury good? And how much growth is there 466 00:24:56,600 --> 00:25:01,359 Speaker 1: really to be had in the rider base? Yeah, I 467 00:25:01,359 --> 00:25:05,639 Speaker 1: mean we're reporting on QUE one again Q one, we 468 00:25:05,680 --> 00:25:09,920 Speaker 1: had growth year over year. Uh, you had four point 469 00:25:09,960 --> 00:25:14,160 Speaker 1: three million more active riders than in a year ago. 470 00:25:14,520 --> 00:25:17,240 Speaker 1: And so UH we're we're seeing that growth. I think 471 00:25:17,280 --> 00:25:19,919 Speaker 1: what's not being given credit anymore is the fact that 472 00:25:19,960 --> 00:25:22,919 Speaker 1: we're coming out of a pandemic uh and and we 473 00:25:23,000 --> 00:25:25,359 Speaker 1: need to in our business. Demand turns on a dime 474 00:25:25,640 --> 00:25:29,359 Speaker 1: and supply takes a few additional months or quarters uh 475 00:25:29,400 --> 00:25:30,920 Speaker 1: to catch up, and we want to get ahead of that. 476 00:25:31,800 --> 00:25:34,919 Speaker 1: But do you see right sharing as as a utility 477 00:25:34,960 --> 00:25:37,560 Speaker 1: for the masses or with higher prices? Is this something 478 00:25:37,600 --> 00:25:40,000 Speaker 1: that a smaller group of people, only a smaller group 479 00:25:40,040 --> 00:25:41,960 Speaker 1: of people can afford. Know, a growing number of people, 480 00:25:41,960 --> 00:25:44,720 Speaker 1: as I just said, with the four million new active writers, 481 00:25:45,000 --> 00:25:47,120 Speaker 1: are going to be turning into it. We just had 482 00:25:47,200 --> 00:25:49,439 Speaker 1: two years where people were asked to wear masks and 483 00:25:49,480 --> 00:25:52,840 Speaker 1: not be around each other. We're coming out of that. UM. 484 00:25:52,920 --> 00:25:56,879 Speaker 1: We we have continually seen historically and then now coming 485 00:25:56,880 --> 00:25:59,359 Speaker 1: out of the pandemic, more and more people turn to 486 00:25:59,400 --> 00:26:01,840 Speaker 1: this use case. We're gonna be bringing back shared rides, 487 00:26:02,119 --> 00:26:05,320 Speaker 1: which has been missing for for the pandemic, which is 488 00:26:05,359 --> 00:26:08,359 Speaker 1: a lower price product. UM we bring in other lower 489 00:26:08,359 --> 00:26:11,359 Speaker 1: price products with weight and save. So I'm not concerned. 490 00:26:11,720 --> 00:26:13,879 Speaker 1: And in fact, the message we're saying is that we 491 00:26:14,000 --> 00:26:16,840 Speaker 1: see the demand coming back and therefore we want to 492 00:26:16,880 --> 00:26:21,080 Speaker 1: invest in supply. Now, Uber says they're not going to 493 00:26:21,160 --> 00:26:25,159 Speaker 1: be spending significantly to maintain or increase supply. You know, 494 00:26:25,200 --> 00:26:28,240 Speaker 1: they're talking about tweaking their algorithms to make things more 495 00:26:28,280 --> 00:26:31,560 Speaker 1: transparent for drivers. For example. Is this something that lift 496 00:26:31,640 --> 00:26:34,760 Speaker 1: would consider other incentives to pull those levers to get 497 00:26:34,840 --> 00:26:38,199 Speaker 1: drivers to come over. Yeah, this is not pure incentive. 498 00:26:38,320 --> 00:26:41,560 Speaker 1: So we're we're investing across the board in the experience 499 00:26:41,640 --> 00:26:43,960 Speaker 1: for drivers. Uh, and so a lot of that is 500 00:26:44,000 --> 00:26:47,480 Speaker 1: in our marketplace technology, whether that's maps that improve the 501 00:26:47,520 --> 00:26:50,439 Speaker 1: experience and allow drivers to to earn more and have 502 00:26:50,520 --> 00:26:54,919 Speaker 1: higher utilization, whether that's our pricing algorithm to fine tune 503 00:26:54,960 --> 00:26:58,960 Speaker 1: specific things that happen at say an airport when multiple 504 00:26:59,119 --> 00:27:02,120 Speaker 1: planes on load at the same time, and all those 505 00:27:02,160 --> 00:27:05,880 Speaker 1: improvements payoff as as rides continue to rebound, and we 506 00:27:05,880 --> 00:27:08,439 Speaker 1: we feel strongly that these are the right investments to 507 00:27:08,560 --> 00:27:12,560 Speaker 1: drive the most growth in both the short and long term. 508 00:27:12,600 --> 00:27:17,439 Speaker 1: How much overlap do you see in drivers versus you know, 509 00:27:17,720 --> 00:27:20,400 Speaker 1: there's Uber drivers that you're competing with for for for 510 00:27:20,440 --> 00:27:22,639 Speaker 1: people and for food. But are you also competing with 511 00:27:22,680 --> 00:27:25,600 Speaker 1: instat cart and grub hub and door diash and Amazon 512 00:27:26,040 --> 00:27:30,640 Speaker 1: and you know Domino's Pizza. They need drivers too. Sure 513 00:27:30,680 --> 00:27:35,560 Speaker 1: with within the category of drivers, there's the highest earnings historically, 514 00:27:35,880 --> 00:27:39,399 Speaker 1: on average have been found within the rides here segments. Also, 515 00:27:39,720 --> 00:27:44,160 Speaker 1: we typically require uh newer vehicles UH and and background 516 00:27:44,240 --> 00:27:47,160 Speaker 1: checks and driving record checks are always required on our platform. 517 00:27:47,400 --> 00:27:50,480 Speaker 1: That is not something on UH in these other industries 518 00:27:50,520 --> 00:27:52,720 Speaker 1: that you name. That is always the case. UH. And 519 00:27:52,800 --> 00:27:54,919 Speaker 1: so there are segments of the population that want to 520 00:27:54,960 --> 00:27:57,480 Speaker 1: earn more uh and that have access to two newer 521 00:27:57,560 --> 00:28:01,320 Speaker 1: vehicles and are willing to go those background checks. Now, 522 00:28:01,359 --> 00:28:04,000 Speaker 1: I want to move to another story, huge shore that 523 00:28:04,040 --> 00:28:06,680 Speaker 1: we're watching. I know you're watching the lead draft opinion 524 00:28:07,119 --> 00:28:10,280 Speaker 1: from the Supreme Court that signals that Roe versus. Wade 525 00:28:10,520 --> 00:28:14,360 Speaker 1: could be overturned and soon. LIFT has already come out 526 00:28:14,359 --> 00:28:17,200 Speaker 1: in support of women's reproductive rights. Uh. You said you're 527 00:28:17,200 --> 00:28:21,280 Speaker 1: going to defend drivers facing legal action in states like 528 00:28:21,320 --> 00:28:25,359 Speaker 1: Texas and Oklahoma, where we've seen anti abortion laws make progress. 529 00:28:25,760 --> 00:28:28,760 Speaker 1: What's your reaction to this draft opinion and what more 530 00:28:28,920 --> 00:28:33,120 Speaker 1: is LIFT prepared to do. It's very concerning. As you said, 531 00:28:33,119 --> 00:28:36,479 Speaker 1: we've been very clear on our viewpoint on women's right 532 00:28:36,520 --> 00:28:39,840 Speaker 1: to choose their and have their reproductive uh, you know, 533 00:28:39,880 --> 00:28:44,360 Speaker 1: health access. UM. And we've made a donation to Play 534 00:28:44,360 --> 00:28:48,480 Speaker 1: in Parenthood, a significant donation to support their work on that. Uh. 535 00:28:48,680 --> 00:28:51,280 Speaker 1: We were the first to speak out on the laws 536 00:28:51,320 --> 00:28:54,680 Speaker 1: in Texas and then more recently in Oklahoma speaking out 537 00:28:54,720 --> 00:28:57,680 Speaker 1: as important as are the actions we take. And so 538 00:28:57,920 --> 00:29:00,840 Speaker 1: we're working to to make sure women who are coming 539 00:29:00,840 --> 00:29:03,960 Speaker 1: to a different state have access to transportation to make 540 00:29:04,000 --> 00:29:08,720 Speaker 1: that traumatic experience uh a bit less stressful. Uh. And 541 00:29:08,720 --> 00:29:11,280 Speaker 1: and will continue to speak out when we think the 542 00:29:11,360 --> 00:29:14,520 Speaker 1: rights of our our community are at odds with with 543 00:29:15,000 --> 00:29:18,080 Speaker 1: what's happening in the world. If this issue is turned 544 00:29:18,120 --> 00:29:22,040 Speaker 1: over to the states, potentially half of states could enact 545 00:29:22,240 --> 00:29:24,360 Speaker 1: laws like this and some of those laws would be 546 00:29:24,400 --> 00:29:28,480 Speaker 1: triggered immediately. Is LIFT prepared to defend drivers on a 547 00:29:28,600 --> 00:29:33,959 Speaker 1: national level? Yeah, I mean the specific laws that we 548 00:29:34,040 --> 00:29:37,720 Speaker 1: reacted to in in Texas and Oklahoma. In addition to 549 00:29:37,720 --> 00:29:40,880 Speaker 1: to disagreeing with the overall viewpoint and and believing that 550 00:29:40,920 --> 00:29:44,080 Speaker 1: women should have the right to choose, uh, there were 551 00:29:44,160 --> 00:29:47,440 Speaker 1: laws that said that a driver without them even knowing 552 00:29:47,440 --> 00:29:51,440 Speaker 1: where they're taking. Someone could be found criminally liable for 553 00:29:51,520 --> 00:29:53,960 Speaker 1: taking someone to an appointment that they had no idea 554 00:29:54,480 --> 00:29:57,880 Speaker 1: where they were going. That that is wrong on many levels, 555 00:29:58,320 --> 00:30:00,719 Speaker 1: and that is something we will continue to defend. Our 556 00:30:00,800 --> 00:30:05,000 Speaker 1: drivers from two have any concerns about alienating riders and 557 00:30:05,080 --> 00:30:07,880 Speaker 1: drivers by taking this stand, I mean, obviously, you know 558 00:30:08,040 --> 00:30:10,240 Speaker 1: you are running a business. Why speak out on this. 559 00:30:11,720 --> 00:30:15,960 Speaker 1: It's important for UH companies and individuals to speak out 560 00:30:17,000 --> 00:30:20,200 Speaker 1: when when they disagree with something. We've We've shown that 561 00:30:20,240 --> 00:30:23,320 Speaker 1: throughout our history. We're not afraid to speak up. We 562 00:30:23,400 --> 00:30:27,280 Speaker 1: think ultimately doing the right thing for society and speaking 563 00:30:27,320 --> 00:30:30,480 Speaker 1: to that UH can also be beneficial for the business. 564 00:30:30,880 --> 00:30:33,680 Speaker 1: But we care deeply about our impact UH and our 565 00:30:33,720 --> 00:30:37,800 Speaker 1: ability to impact the world around us. All right, John Zimmer, 566 00:30:37,960 --> 00:30:42,800 Speaker 1: Lift President and co founder, thank you for stopping by. 567 00:30:43,680 --> 00:30:45,920 Speaker 1: I want to stick with Lift and Uber. Now take 568 00:30:45,960 --> 00:30:48,400 Speaker 1: a culture look at the stock moves obviously that big 569 00:30:48,440 --> 00:30:51,360 Speaker 1: move from Lift and talk to us about the size 570 00:30:51,360 --> 00:30:54,080 Speaker 1: and scope of these moves. Obviously we heard John Zimmer's 571 00:30:54,120 --> 00:30:56,760 Speaker 1: response there. He said he doesn't like it, but he disagrees. Yeah, 572 00:30:56,800 --> 00:31:00,440 Speaker 1: and you know, investors clearly concerned right dropping the stock 573 00:31:00,560 --> 00:31:03,840 Speaker 1: is significant, biggest drop on record. As you said, the 574 00:31:04,200 --> 00:31:05,600 Speaker 1: other way looking at it is you know, it's more 575 00:31:05,640 --> 00:31:07,680 Speaker 1: than three and a half billion dollars of market cap 576 00:31:07,720 --> 00:31:10,480 Speaker 1: loss in a single session. Coming me, it's my Bloomberg terminel. 577 00:31:10,520 --> 00:31:11,880 Speaker 1: Look at this chart. This is the way I've been 578 00:31:11,880 --> 00:31:15,400 Speaker 1: thinking about this throughout the day that these two stocks, 579 00:31:15,440 --> 00:31:18,120 Speaker 1: in particular since their I p o s, both of 580 00:31:18,120 --> 00:31:20,760 Speaker 1: which took place in two thousand nineteen, of course, have 581 00:31:20,960 --> 00:31:24,320 Speaker 1: not performed well. Right. You see that as we emerged 582 00:31:24,360 --> 00:31:27,400 Speaker 1: through the the initial phase of the pandemic and things improved, 583 00:31:27,440 --> 00:31:30,520 Speaker 1: we saw a rebound, but actually as part of the 584 00:31:30,560 --> 00:31:34,840 Speaker 1: kind of conversation around economic reopening one through the present day, 585 00:31:35,040 --> 00:31:37,640 Speaker 1: these stocks have seen declines and even Uber down as 586 00:31:37,680 --> 00:31:40,680 Speaker 1: much as sent one point on Wednesday, ended up dropping 587 00:31:40,680 --> 00:31:42,920 Speaker 1: by the most in five weeks. There are a lot 588 00:31:42,920 --> 00:31:45,040 Speaker 1: of questions here about whether these two companies can stand 589 00:31:45,040 --> 00:31:47,000 Speaker 1: on their own two ft. There were two quick charts 590 00:31:47,000 --> 00:31:49,480 Speaker 1: I wanted to show you. The first lift. There are 591 00:31:49,640 --> 00:31:53,240 Speaker 1: some bright spots. One of them is revenue per rider, 592 00:31:54,240 --> 00:31:56,960 Speaker 1: pretty high, around forty nine dollars in revenue per rider, 593 00:31:57,040 --> 00:31:59,480 Speaker 1: right now, way above where we were in two thousand nineteen. 594 00:31:59,720 --> 00:32:02,640 Speaker 1: But if they're going to spend on incentives growing the 595 00:32:02,680 --> 00:32:07,160 Speaker 1: top line through raising prices, that's not really satisfying for investors. 596 00:32:07,160 --> 00:32:08,840 Speaker 1: Although a lot of Wall Street and this said this 597 00:32:08,960 --> 00:32:12,400 Speaker 1: was overdone because by investing in the drivers, and you 598 00:32:12,520 --> 00:32:14,560 Speaker 1: just heard it from John Timmer, that is a bullish 599 00:32:14,560 --> 00:32:17,240 Speaker 1: sign that lifts sees demand coming in the future. And 600 00:32:17,240 --> 00:32:19,720 Speaker 1: then finally on Uber, you know, they didn't farewell on 601 00:32:19,760 --> 00:32:22,960 Speaker 1: the ext markets Wednesday, but lots of people pointing to 602 00:32:23,000 --> 00:32:26,520 Speaker 1: their different business model. Right orange part of the chart 603 00:32:26,640 --> 00:32:30,360 Speaker 1: is mobility rides, but delivery increasingly important. They have a 604 00:32:30,400 --> 00:32:33,000 Speaker 1: diversified business. And you heard Dorak Kostrasha here and I 605 00:32:33,000 --> 00:32:35,600 Speaker 1: hope you asked him about this at some point. Well 606 00:32:35,640 --> 00:32:37,360 Speaker 1: what are they doing to win over drivers? They're saying, 607 00:32:37,400 --> 00:32:39,840 Speaker 1: come to our platform, don't just drive people, you can 608 00:32:39,840 --> 00:32:42,400 Speaker 1: also do delivery. You have the choice and maximize the 609 00:32:42,400 --> 00:32:44,840 Speaker 1: money that you can earn. It's a really interesting differentiation. 610 00:32:45,200 --> 00:32:50,000 Speaker 1: All right, Buddla. Thanks. Coming up, they're all NASDAC plays 611 00:32:50,200 --> 00:32:53,120 Speaker 1: in crypto markets and how that could grow with more 612 00:32:53,320 --> 00:33:30,360 Speaker 1: regulatory clarity. Talk about that coming up next time now 613 00:33:30,440 --> 00:33:33,000 Speaker 1: for our Crypto report. And even with falling equities and 614 00:33:33,040 --> 00:33:34,960 Speaker 1: delayed i p O, some companies are still looking to 615 00:33:35,000 --> 00:33:38,479 Speaker 1: make their stock market debuts, according to NASDACS Ceodina Freedman. 616 00:33:38,760 --> 00:33:41,600 Speaker 1: But what insights does the NASTAC have and what role 617 00:33:41,640 --> 00:33:44,960 Speaker 1: will it play in crypto markets? Freeman spoke with bloom Brigs, 618 00:33:45,000 --> 00:33:47,720 Speaker 1: Kaylee Lines and Guy Johnson earlier today. Take a listen. 619 00:33:50,000 --> 00:33:53,280 Speaker 1: NASAC today is actually a scale technology company that serves 620 00:33:53,320 --> 00:33:56,480 Speaker 1: the broader capital markets and the broader financial system. So 621 00:33:56,840 --> 00:33:59,280 Speaker 1: we in fact have a big role to play in 622 00:33:59,400 --> 00:34:02,840 Speaker 1: facility and helping crypto markets as well as you know, 623 00:34:02,920 --> 00:34:06,760 Speaker 1: banks and brokers managed new digital assets. So we provide 624 00:34:06,760 --> 00:34:09,160 Speaker 1: our technology to a hundred and thirty other markets around 625 00:34:09,200 --> 00:34:12,080 Speaker 1: the world, including UM. Actually, I think we're up to 626 00:34:12,320 --> 00:34:15,360 Speaker 1: potentially tend crypto markets now that are leveraging our technology 627 00:34:15,520 --> 00:34:18,879 Speaker 1: for trading, for surveillance, and for other means that they 628 00:34:18,920 --> 00:34:21,160 Speaker 1: have to make sure that they can grow and expand 629 00:34:21,160 --> 00:34:24,320 Speaker 1: their business. We also have a very scaled anti financial 630 00:34:24,320 --> 00:34:27,879 Speaker 1: crime technology solution where we are We've created a new 631 00:34:27,920 --> 00:34:30,719 Speaker 1: module specific to digital markets to make it so that 632 00:34:30,760 --> 00:34:34,160 Speaker 1: banks can UM evaluate a mL risk as well as 633 00:34:34,200 --> 00:34:36,880 Speaker 1: fraud risk in their digital wallets as well as in 634 00:34:36,920 --> 00:34:39,520 Speaker 1: their their more traditional accounts, so we have and we 635 00:34:39,560 --> 00:34:42,640 Speaker 1: also one third thing is we have a crypto index 636 00:34:42,680 --> 00:34:44,960 Speaker 1: that we've launched outside the United States. Index products we 637 00:34:45,000 --> 00:34:47,239 Speaker 1: launched outside the United States, so we have a role 638 00:34:47,280 --> 00:34:49,240 Speaker 1: to play there. But as a as a market operator, 639 00:34:49,560 --> 00:34:51,800 Speaker 1: I think that we were still trying to understand the 640 00:34:51,840 --> 00:34:54,960 Speaker 1: regulatory landscape as well as you know, the overall maturing 641 00:34:55,000 --> 00:34:58,520 Speaker 1: of it for the institutional use of crypto before we 642 00:34:58,560 --> 00:35:04,480 Speaker 1: make bigger decisions a market operator. NASA dack CEO aDNA 643 00:35:04,560 --> 00:35:08,720 Speaker 1: Freedman there, and it seems California's governor has heard aDNA 644 00:35:08,800 --> 00:35:13,480 Speaker 1: Freedman's calls for more regulation. Governor Gavin Newsome just signed 645 00:35:13,520 --> 00:35:17,120 Speaker 1: an executive order to spur blotching innovation, making California the 646 00:35:17,160 --> 00:35:19,680 Speaker 1: first state in the US to start creating a regulatory 647 00:35:19,719 --> 00:35:22,960 Speaker 1: framework for Web three companies. Set in a statement, too 648 00:35:22,960 --> 00:35:27,640 Speaker 1: often government lags behind technological advancement, so we're getting ahead 649 00:35:27,640 --> 00:35:29,840 Speaker 1: of the curve on this, laying the foundation to allow 650 00:35:29,920 --> 00:35:42,319 Speaker 1: for consumers and business to thrive. I want to get 651 00:35:42,360 --> 00:35:44,160 Speaker 1: back now to the biggest story of the day, and 652 00:35:44,160 --> 00:35:46,719 Speaker 1: that is the Fed's rate hike, the biggest since two 653 00:35:46,760 --> 00:35:49,080 Speaker 1: thousand and the FED signaling more to come. All to 654 00:35:49,160 --> 00:35:52,040 Speaker 1: Tampa inflation. I'm joined now by Mark Goldberg, a partner 655 00:35:52,080 --> 00:35:55,239 Speaker 1: at Index Ventures, to give us some thoughts from the 656 00:35:55,320 --> 00:35:58,320 Speaker 1: VC world, and he's also got some insights on fintech. 657 00:35:58,400 --> 00:36:00,920 Speaker 1: Mark Goldberg of Index, you so much for joining, Thank 658 00:36:00,920 --> 00:36:02,200 Speaker 1: you for having only It's a pleasure to be here. 659 00:36:02,239 --> 00:36:05,840 Speaker 1: So look, big macro economic changes of foot What is 660 00:36:05,840 --> 00:36:08,279 Speaker 1: your advice to founders right now in this moment? My 661 00:36:08,280 --> 00:36:10,319 Speaker 1: advice is to build. I mean we're coming off a 662 00:36:10,360 --> 00:36:13,120 Speaker 1: year that was the most exciting, exuberant year in not 663 00:36:13,200 --> 00:36:16,359 Speaker 1: just fintech but in the tech venture capital market in 664 00:36:16,560 --> 00:36:20,320 Speaker 1: a decade, and where money was was you know, available 665 00:36:20,360 --> 00:36:22,200 Speaker 1: in spades, and now we're at a time where the 666 00:36:22,200 --> 00:36:24,480 Speaker 1: market has changed, and what we're telling our companies is 667 00:36:24,480 --> 00:36:26,520 Speaker 1: a focus on building, not fundraising. So how do you 668 00:36:26,560 --> 00:36:29,160 Speaker 1: build without funding? Well, the nice thing is because so 669 00:36:29,200 --> 00:36:32,600 Speaker 1: many of these great companies raised huge balance sheets last year. Um, 670 00:36:32,640 --> 00:36:34,200 Speaker 1: they have the luxury of not having to go back 671 00:36:34,200 --> 00:36:37,480 Speaker 1: to market and so the distraction of you know, constantly 672 00:36:37,480 --> 00:36:40,600 Speaker 1: funding every six months twelve months has gone away. How 673 00:36:40,719 --> 00:36:43,040 Speaker 1: is this impacting VC sentiment? I mean, I know the 674 00:36:43,040 --> 00:36:45,680 Speaker 1: private market valuations are going down. Can we expect that 675 00:36:45,719 --> 00:36:49,400 Speaker 1: to continue? The way it's impacting sentiment is the sentiment 676 00:36:49,480 --> 00:36:51,359 Speaker 1: is about as negatives. If you seen you know, if 677 00:36:51,360 --> 00:36:53,880 Speaker 1: you saw Bill Girls tweet and just the broader sentiment 678 00:36:53,880 --> 00:36:57,000 Speaker 1: in south Park today it's negative. I think that's oversteered. 679 00:36:57,120 --> 00:36:59,080 Speaker 1: I think what we're seeing as an opportunity and if 680 00:36:59,120 --> 00:37:02,000 Speaker 1: you look at indext other VC funds, the best investments 681 00:37:02,000 --> 00:37:04,480 Speaker 1: are made at times of um you know, on the 682 00:37:04,480 --> 00:37:06,320 Speaker 1: other side of a cycle. And that's the opportunity we 683 00:37:06,360 --> 00:37:07,880 Speaker 1: have in front of it. So how is that impacting 684 00:37:07,920 --> 00:37:10,600 Speaker 1: your strategy at Index? Well, we're focused on what we 685 00:37:10,640 --> 00:37:12,480 Speaker 1: always focus on, which is can we find the best 686 00:37:12,480 --> 00:37:15,080 Speaker 1: founders and can we get behind generational companies. I think 687 00:37:15,080 --> 00:37:17,560 Speaker 1: if that north star holds true today through cycles, we're 688 00:37:17,560 --> 00:37:21,160 Speaker 1: gonna be just fine. You're predicting a tsunami of fintech 689 00:37:21,440 --> 00:37:24,239 Speaker 1: m and a this year where specifically, I think what 690 00:37:24,239 --> 00:37:26,759 Speaker 1: we're going to see is a massive wave of consolidation. Again, 691 00:37:26,880 --> 00:37:29,280 Speaker 1: last year was the party. This year is the hangover. 692 00:37:29,360 --> 00:37:31,879 Speaker 1: We saw a lot of excitement, and what's gonna happen 693 00:37:31,920 --> 00:37:34,400 Speaker 1: now is that consolidation. The exciting thing though, is the 694 00:37:34,480 --> 00:37:37,000 Speaker 1: number of consolidators in the fintech space. You and I 695 00:37:37,000 --> 00:37:39,040 Speaker 1: had had this conversation five years ago, we would have 696 00:37:39,040 --> 00:37:41,040 Speaker 1: thought about fintech as a vertical. What it's done is 697 00:37:41,040 --> 00:37:43,640 Speaker 1: it has become totally horizontal. The acquires are not just 698 00:37:43,880 --> 00:37:46,680 Speaker 1: Bank of America JP Morgan, Goldman Sack. Now, it could 699 00:37:46,680 --> 00:37:50,320 Speaker 1: be Apple, it could be Google, it could be Striped. 700 00:37:50,600 --> 00:37:53,359 Speaker 1: So the number of acquires has grown significantly. It's going 701 00:37:53,400 --> 00:37:55,480 Speaker 1: to be a really exciting year. Well, we see crypto 702 00:37:55,640 --> 00:37:58,520 Speaker 1: joining forces with traditional finances. That going to be part 703 00:37:58,560 --> 00:38:00,080 Speaker 1: of the M and A. I think it might be. 704 00:38:00,280 --> 00:38:02,640 Speaker 1: I think, you know, the crypto yng to the web 705 00:38:02,680 --> 00:38:05,560 Speaker 1: to yang is absolutely possibility, and I think we'll start 706 00:38:05,560 --> 00:38:07,440 Speaker 1: to see those combinations in this year. You've made a 707 00:38:07,520 --> 00:38:10,560 Speaker 1: number of predictions before the start of this year. You said, 708 00:38:10,560 --> 00:38:13,279 Speaker 1: fintech in the metaverse, gen Z on the rise, gen 709 00:38:13,360 --> 00:38:15,640 Speaker 1: Z Traders on the rise, Stripe buying, open Sea, they 710 00:38:15,640 --> 00:38:18,600 Speaker 1: are rolling out some more crypto features. You know, which 711 00:38:18,600 --> 00:38:20,719 Speaker 1: of these things do you think is still going to happen? Well, 712 00:38:20,760 --> 00:38:22,399 Speaker 1: I think we still have seven months of the year, 713 00:38:22,440 --> 00:38:23,840 Speaker 1: so I'm gonna wait on on a value in of 714 00:38:23,840 --> 00:38:25,360 Speaker 1: my prediction still then, But I think one of the 715 00:38:25,360 --> 00:38:27,840 Speaker 1: more exciting trends from last year is this fusion of 716 00:38:27,920 --> 00:38:30,239 Speaker 1: fintech and culture. And you know, we talked about the 717 00:38:30,480 --> 00:38:32,520 Speaker 1: you know, meme socks of last year in robin Hood, 718 00:38:32,560 --> 00:38:34,520 Speaker 1: and I think what we're starting to see is that 719 00:38:34,640 --> 00:38:38,759 Speaker 1: fusion of uh fintech entering the pop culture mainstream. The 720 00:38:38,800 --> 00:38:41,160 Speaker 1: way that cash app has a clothing store. Who would 721 00:38:41,160 --> 00:38:43,440 Speaker 1: have thought that a bank would be people would be 722 00:38:43,440 --> 00:38:45,319 Speaker 1: wearing the clothes from a bank. I think that is 723 00:38:45,320 --> 00:38:47,080 Speaker 1: one of the durable trends that's going to propel us 724 00:38:47,080 --> 00:38:49,640 Speaker 1: in the next few years. Robin Hood is way down 725 00:38:50,200 --> 00:38:53,120 Speaker 1: from last year, and the gen Z traders are on 726 00:38:53,239 --> 00:38:55,960 Speaker 1: robin Hood, so what's going on there? You know? I 727 00:38:55,960 --> 00:38:59,720 Speaker 1: think robin Hood's genius was the ability to democratize access 728 00:38:59,760 --> 00:39:02,359 Speaker 1: to the stock market. And if you step back from 729 00:39:02,440 --> 00:39:04,200 Speaker 1: robin Hood, that has been one of our biggest themes 730 00:39:04,200 --> 00:39:06,200 Speaker 1: at Index, which is how do you think about serving 731 00:39:06,400 --> 00:39:09,319 Speaker 1: the eighty million underserved Americans. Actually, one of my most 732 00:39:09,400 --> 00:39:12,839 Speaker 1: recent investments is called Nova Credit h They actually are 733 00:39:12,880 --> 00:39:15,680 Speaker 1: able to offer immigrants without credit score an ability to 734 00:39:15,680 --> 00:39:18,600 Speaker 1: get a mortgage or a car loan. And we think 735 00:39:18,640 --> 00:39:20,880 Speaker 1: expanding access is really one of the big themes we're 736 00:39:20,880 --> 00:39:23,360 Speaker 1: gonna be working on this year. Now, you are investors 737 00:39:23,400 --> 00:39:25,640 Speaker 1: in a company or were investors in a company called 738 00:39:25,680 --> 00:39:29,719 Speaker 1: Fast this you know one click checkout area which just 739 00:39:29,880 --> 00:39:33,440 Speaker 1: recently disappeared completely, just went under, said they ran out 740 00:39:33,440 --> 00:39:36,000 Speaker 1: of money. What happened there? Well, our investment in Fast 741 00:39:36,040 --> 00:39:38,040 Speaker 1: was around this concept, like you said, of one click out, 742 00:39:38,080 --> 00:39:41,120 Speaker 1: one check clickout, And what I think you saw with 743 00:39:41,239 --> 00:39:44,200 Speaker 1: anyone who's been through an Amazon checkout experience or Shopify 744 00:39:44,480 --> 00:39:47,399 Speaker 1: is there's an opportunity for streamline checkout. That was our 745 00:39:47,440 --> 00:39:50,440 Speaker 1: thesis behind Fast. Obviously it didn't work out. That's venture 746 00:39:50,520 --> 00:39:53,200 Speaker 1: capital m but we're still really excited about thesis and 747 00:39:53,440 --> 00:39:56,040 Speaker 1: getting behind grave founders. Now, let's talk a little bit 748 00:39:56,080 --> 00:39:58,279 Speaker 1: about spacks. Some are saying that SPACs are a four 749 00:39:58,360 --> 00:40:00,120 Speaker 1: letter word, and you know, there are many good four 750 00:40:00,200 --> 00:40:02,480 Speaker 1: letter words, but there are a few not good for 751 00:40:02,719 --> 00:40:05,080 Speaker 1: letter words. What do you think about that? You know, 752 00:40:05,160 --> 00:40:07,400 Speaker 1: I think spots was an interesting innovation. But as with 753 00:40:07,440 --> 00:40:09,600 Speaker 1: the broader market, um, you know, we're gonna see what's 754 00:40:09,680 --> 00:40:12,320 Speaker 1: durable and what was more of a you know, maybe 755 00:40:12,360 --> 00:40:14,640 Speaker 1: something that that didn't last as long. So where are 756 00:40:14,640 --> 00:40:19,680 Speaker 1: you placing your bets within fintech? Yeah and beyond for me? 757 00:40:20,040 --> 00:40:22,480 Speaker 1: Right now, what we're focused on is finding opportunities in 758 00:40:22,480 --> 00:40:25,839 Speaker 1: the fintech space consumer finance. I think there's this tremendous 759 00:40:25,880 --> 00:40:28,560 Speaker 1: generational shift. You mean, people that want to do banking 760 00:40:28,560 --> 00:40:31,280 Speaker 1: from their phone a lot, driven by the pandemic, versus 761 00:40:31,320 --> 00:40:33,440 Speaker 1: doing it at a branch, so that you know, today 762 00:40:33,520 --> 00:40:36,439 Speaker 1: less than ten percent of consumers use a digitally native bank. 763 00:40:36,800 --> 00:40:38,680 Speaker 1: That's going to change in the future. The secondary is 764 00:40:38,680 --> 00:40:40,480 Speaker 1: gonna be payments. So I think those are the opportunities 765 00:40:40,480 --> 00:40:42,800 Speaker 1: were most excited about today. Now, you were an investment 766 00:40:42,800 --> 00:40:46,040 Speaker 1: banker during the Tesla I p O. What was it 767 00:40:46,120 --> 00:40:49,000 Speaker 1: like to work with Elon Musk back then? That was 768 00:40:49,040 --> 00:40:51,520 Speaker 1: of what do you think of him taking over Twitter? 769 00:40:52,120 --> 00:40:54,400 Speaker 1: Back then? It was quite the formative experience for a 770 00:40:54,440 --> 00:40:56,480 Speaker 1: twenty three year old straight out of college to get 771 00:40:56,480 --> 00:40:59,719 Speaker 1: thrown into that. I mean he was the same iconic 772 00:40:59,719 --> 00:41:01,680 Speaker 1: class to figure he was then as he is now. 773 00:41:01,920 --> 00:41:04,040 Speaker 1: I think he had a few fewer zeros on his 774 00:41:04,040 --> 00:41:07,359 Speaker 1: balance sheet at that point, but the same attitude. Do 775 00:41:07,400 --> 00:41:09,160 Speaker 1: you like the idea of him only Twitter where we're 776 00:41:09,160 --> 00:41:11,279 Speaker 1: looking at some of your tweets right now, so you're 777 00:41:11,320 --> 00:41:13,120 Speaker 1: on there. What I'm excited about is Twitter as a 778 00:41:13,160 --> 00:41:15,600 Speaker 1: private company, what they can do if they optimize for 779 00:41:15,760 --> 00:41:18,520 Speaker 1: the long run as opposed to quarterly earnings. So we'll see. 780 00:41:18,560 --> 00:41:21,239 Speaker 1: There's so much uncertainty in the direction that he'll take 781 00:41:21,280 --> 00:41:23,240 Speaker 1: the company. But I like the idea of being private 782 00:41:23,239 --> 00:41:24,560 Speaker 1: and seeing what they can build from there. I think 783 00:41:24,560 --> 00:41:26,640 Speaker 1: they should open source the algorithm. Is that going to 784 00:41:26,760 --> 00:41:28,840 Speaker 1: change things? You know? I can't speak to that, but 785 00:41:28,880 --> 00:41:30,120 Speaker 1: I think it is going to be exciting what they 786 00:41:30,120 --> 00:41:32,319 Speaker 1: can focus on if they don't have the same short 787 00:41:32,360 --> 00:41:36,239 Speaker 1: term horizon. What about employees who want to leave a 788 00:41:36,239 --> 00:41:37,799 Speaker 1: lot of people there right now? They don't know if 789 00:41:37,800 --> 00:41:40,000 Speaker 1: they we have literally have a story called why Bother? 790 00:41:40,160 --> 00:41:42,480 Speaker 1: That's what employees are thinking. We're going to have to see. 791 00:41:42,680 --> 00:41:44,560 Speaker 1: You know, there's obviously been a lot of negative sentiment, 792 00:41:44,680 --> 00:41:46,600 Speaker 1: but you know, if they can make the right long 793 00:41:46,680 --> 00:41:48,560 Speaker 1: term bets, it's going to be an exciting platform for 794 00:41:48,640 --> 00:41:51,439 Speaker 1: years to come. All Right, Mark, Goldberg Index Ventures, thanks 795 00:41:51,480 --> 00:41:53,400 Speaker 1: so much for joining us. Thank you coming into the studio. 796 00:41:53,440 --> 00:41:56,160 Speaker 1: I appreciate it. Thank you. That does it for this 797 00:41:56,320 --> 00:41:59,520 Speaker 1: edition of Bloomberg Technology. We'll be back tomorrow. I'm talking 798 00:41:59,520 --> 00:42:02,480 Speaker 1: to Uber CEO Dara Kasra Shay. He'll be joining us 799 00:42:02,520 --> 00:42:05,960 Speaker 1: live thirty a m. Eastern time. Tune in for that 800 00:42:06,360 --> 00:42:07,880 Speaker 1: you don't want to miss it. We've also got an 801 00:42:07,880 --> 00:42:11,000 Speaker 1: action packed show Lisa Sue of a m D, and 802 00:42:11,160 --> 00:42:13,920 Speaker 1: much more coming up tomorrow. This is Bloomberg