WEBVTT - Adam Neumann's Flow and Peloton's Amazon Partnership 0:00:02.279 --> 0:00:05.560 From the heart of where innovation, money and power Colli 0:00:06.400 --> 0:00:10.920 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.960 --> 0:00:26.960 Emily Jay. I'm Emily Check in San Francisco and this 0:00:26.960 --> 0:00:29.120 is Bloomberg Technology. Coming up in the next hour, a 0:00:29.240 --> 0:00:32.440 concierge startup that is shaking up city living. We'll talk 0:00:32.479 --> 0:00:35.479 to the women behind the company, Alfred about why they 0:00:35.520 --> 0:00:38.720 see big opportunity and what they think about their early 0:00:38.760 --> 0:00:42.840 investor Adam Newman starting a different company that maybe trying 0:00:42.880 --> 0:00:47.080 to get in on that too. Plus Peloton on Amazon, 0:00:47.080 --> 0:00:49.240 the struggling bike maker puts its bikes on the world's 0:00:49.320 --> 0:00:52.360 largest e commerce site for the first time ever. Could 0:00:52.360 --> 0:00:55.000 it be the key to ending the slump? Will discuss 0:00:56.440 --> 0:00:58.480 and how did one of the biggest deals of the 0:00:58.520 --> 0:01:01.800 year come together. We will go inside the seventy billion 0:01:01.840 --> 0:01:06.080 dollar Microsoft Activision deal with Microsoft Gaming CEO Bill Spencer 0:01:07.400 --> 0:01:10.040 here to talk more about Peloton's partnership with Amazon. Is 0:01:10.080 --> 0:01:12.800 what wish Managing director Dan I s Dan, what do 0:01:12.800 --> 0:01:14.800 you make of this? I mean until now you could 0:01:14.880 --> 0:01:18.560 only get these bikes directly from Peloton. Now you can 0:01:18.600 --> 0:01:22.840 get them on Amazon. Is it going to open the floodgates? OK. 0:01:22.920 --> 0:01:25.400 I think it's a starter in the right direction. I mean, 0:01:25.440 --> 0:01:28.959 the director consumer model. Clearly, it's been an upbuild battle 0:01:29.440 --> 0:01:32.759 for Peloton, especially coming out of the pandemic. They had 0:01:32.800 --> 0:01:34.800 to do something, and if you're gonna bet on someone, 0:01:34.840 --> 0:01:37.240 I think Amazon was the right move. But now it's 0:01:37.240 --> 0:01:40.199 an execution story going forward. I think the street really 0:01:40.200 --> 0:01:44.320 needs to see that. So, you know, obviously Peloton has 0:01:44.360 --> 0:01:47.720 to work through you know, multiple other issues there, you 0:01:47.720 --> 0:01:50.480 know working on this. You know, send the bike, you 0:01:50.520 --> 0:01:53.400 put it together yourself, someone maybe can help you put 0:01:53.440 --> 0:01:56.720 that bike together. Does that make it all a little complicated? 0:01:57.960 --> 0:01:59.760 I think it does, And that's part of the problem. 0:02:00.040 --> 0:02:03.440 They're a typical Peloton buyer. They don't want complexity, they 0:02:03.440 --> 0:02:08.359 want simplicity. And obviously they've had some significant misses from 0:02:08.400 --> 0:02:12.760 product perspective on treadmill and some mothers. Strategically, now they're 0:02:12.800 --> 0:02:15.040 cutting costs. Look, and I think that's part of the 0:02:15.080 --> 0:02:17.519 issue too, is that you're in growth mode cut and 0:02:17.600 --> 0:02:21.080 costs especial the competition come from all angles, gyms and 0:02:21.120 --> 0:02:23.800 other sort of fitness. I mean, this is clearly going 0:02:23.880 --> 0:02:26.000 to be a very very bumpy path. I think this 0:02:26.160 --> 0:02:29.360 is a step, but Obviously it's really baby steps in 0:02:29.440 --> 0:02:32.880 terms of what they need to do. How many people 0:02:32.880 --> 0:02:35.680 are going to buy a Peloton on Amazon that didn't 0:02:35.680 --> 0:02:40.200 go to Peloton directly, Well, I think it's probably low 0:02:40.320 --> 0:02:43.320 single digits. And I think it's really more about accessories 0:02:43.680 --> 0:02:47.239 or maybe part of the ultimate flywheel or ecosystem they're 0:02:47.280 --> 0:02:50.080 trying to build. It just comes down to that director 0:02:50.080 --> 0:02:52.400 consumer model. I think writing was in the wall they 0:02:52.440 --> 0:02:54.720 need to change. Look, I think it's the first step. 0:02:54.840 --> 0:02:57.560 I could definitely see some more partnerships down the road, 0:02:57.600 --> 0:03:00.120 but right now, I mean they're on the white were 0:03:00.200 --> 0:03:03.160 trying to figure out what could ultimately move growth, and 0:03:03.200 --> 0:03:05.320 I think when it comes to Amazon, especially, they had 0:03:05.320 --> 0:03:08.920 their ears open. It made a ton of sent strategically 0:03:09.040 --> 0:03:13.000 thing for both. What do you make of a speculation 0:03:13.000 --> 0:03:17.720 about Amazon as a potential buyer here? I think that's 0:03:17.760 --> 0:03:21.280 just more speculum. I mean, I would be just flabber 0:03:21.320 --> 0:03:24.320 gas that if they went after they wouldn't strategically just 0:03:24.400 --> 0:03:27.040 does not make sense in terms of them going down 0:03:27.040 --> 0:03:29.160 that route, you know. I think that's why this is 0:03:29.240 --> 0:03:31.560 more of a partnership. And I think the problem with 0:03:31.600 --> 0:03:34.680 Peloton now is that the M and A chatter is obviously, 0:03:35.080 --> 0:03:37.080 you know, falling, and I think it really comes down 0:03:37.120 --> 0:03:40.200 to strategically what they're gonna do. I I continue to 0:03:40.200 --> 0:03:42.920 think when it comes to Amazon, it's more partnership and 0:03:43.320 --> 0:03:46.320 it really stops there. All right, let's talk a little 0:03:46.320 --> 0:03:49.320 bit about Tesla shares rising ahead of that three for 0:03:49.400 --> 0:03:52.120 one stock split. You know, how much of a difference 0:03:52.160 --> 0:03:55.760 is this really going to make. Obviously to the retail community, 0:03:55.760 --> 0:03:58.839 they're going to look back August two thousand twenty five 0:03:58.920 --> 0:04:01.400 for one with the stock since then, you know, but 0:04:01.760 --> 0:04:04.360 clearly a different market. But but no doubt. I mean 0:04:04.760 --> 0:04:07.160 they're doing it at a time that you're really starting 0:04:07.160 --> 0:04:10.400 to see demand continue to be firm despite oversee in 0:04:10.440 --> 0:04:14.040 terms of storm clouds, it's really production production story in China. 0:04:14.440 --> 0:04:16.280 That's the key of the test of story. They do 0:04:16.360 --> 0:04:20.080 not have never had demand issue. They have a supply issue, 0:04:20.520 --> 0:04:22.400 and I think that's starting to get rectified. But I 0:04:22.440 --> 0:04:25.159 do believe the stock split, you know, it really feeds 0:04:25.200 --> 0:04:29.160 the appetite or red town. It was a smart move. Meantime, 0:04:29.400 --> 0:04:33.080 you know, another little Twitter kerfossil between Elon Musk and 0:04:33.560 --> 0:04:38.000 a customer replying to a customer that was critical of 0:04:38.040 --> 0:04:43.880 this beta driver assistance feature, Musk basically saying I don't 0:04:43.880 --> 0:04:46.159 want to hear about it. In so many words, what 0:04:46.240 --> 0:04:48.800 do you make of this? That's not what you want 0:04:48.839 --> 0:04:50.880 to see? I mean, I think Twitter, as we know 0:04:51.080 --> 0:04:53.520 there has been positive but obviously on degas when there 0:04:53.520 --> 0:04:56.360 comes to Musk, and especially with more and more scrutiny, 0:04:56.760 --> 0:04:58.920 you know, from FSD to some of the other areas 0:04:58.960 --> 0:05:00.680 that we're seeing on test, So you don't want to 0:05:00.720 --> 0:05:03.719 see this type back and forth. The street just wants 0:05:03.720 --> 0:05:07.320 the execution production ramp and obviously much more of the 0:05:07.400 --> 0:05:10.960 software model take hold. And I think that's why things 0:05:11.000 --> 0:05:13.919 like this becomes sad shaws. But again it's you know, 0:05:14.000 --> 0:05:15.960 must goes to be a different drum. That's not going 0:05:16.000 --> 0:05:21.120 to change, allright, Webbish managing director Dan ives Dan, thank you. 0:05:30.600 --> 0:05:32.520 The venture capital scene is still in the midst of 0:05:32.560 --> 0:05:35.920 a big debate about funding and second chances. This after 0:05:36.000 --> 0:05:39.479 Andreas and Horowitz wrote its biggest check ever to We 0:05:39.480 --> 0:05:42.280 Were co founder Adam Newman for his new real estate 0:05:42.360 --> 0:05:45.839 venture Flow, a company portrayed in a recent Forbes article 0:05:45.880 --> 0:05:49.400 as being awfully close to another company he invested in 0:05:49.560 --> 0:05:53.240 two years ago. It's called Alfred, and it's a residential 0:05:53.279 --> 0:05:57.080 services company that aims to build community by fostering experiences 0:05:57.279 --> 0:06:01.560 within residential properties. Alfred's co founders join us now, Marcella's 0:06:01.720 --> 0:06:05.200 Pony and Jessica Beeck Ladies, thank you so much for 0:06:05.279 --> 0:06:08.919 joining us, as well as Bloomberg's own at Hammond. So 0:06:09.320 --> 0:06:14.720 let's start here. Marcella, tell us why you founded, Hello Alfred, 0:06:15.120 --> 0:06:18.880 Why you founded Alfred and the mission of the company today. 0:06:19.440 --> 0:06:22.720 That's an easy one. So when jess and I were 0:06:22.800 --> 0:06:26.240 working long hours and building our careers, one thing we 0:06:26.320 --> 0:06:29.000 thought about was how do we make the places that 0:06:29.040 --> 0:06:32.640 we live in anticipate and support us and that ultimately 0:06:32.680 --> 0:06:35.000 that was a way to keep more women in the workforce. 0:06:35.240 --> 0:06:38.040 And that vision has evolved a lot to really think 0:06:38.080 --> 0:06:41.279 about housing as a whole, and for us, Alfred is 0:06:41.320 --> 0:06:44.880 really about making housing focus on the consumer, putting the 0:06:44.960 --> 0:06:48.560 resident at the center of the value chain. And today 0:06:48.760 --> 0:06:51.320 housing is the largest asset class in the world and 0:06:51.360 --> 0:06:54.480 therefore should be the largest consumer product, but it's really 0:06:54.560 --> 0:06:58.200 lacking in terms of the branded experience, real technology, and 0:06:58.240 --> 0:07:01.120 a focus on the consumer as the end user. So 0:07:01.120 --> 0:07:04.160 we're excited to disrupt and evolve the industry with industry 0:07:04.160 --> 0:07:08.279 players and to give renters more for their renting. Now, 0:07:08.320 --> 0:07:10.960 the idea of tech enabled property management is getting a 0:07:10.960 --> 0:07:13.559 lot of attention because, of course Adam Newman just got 0:07:13.840 --> 0:07:16.560 this big check before we go there. Why do you 0:07:16.560 --> 0:07:22.160 think this is such a big opportunity, Jessica, So, I 0:07:22.240 --> 0:07:26.600 think that housing is one of the largest opportunities we have, 0:07:26.800 --> 0:07:29.320 both because of the lives that it hits. Right, all 0:07:29.320 --> 0:07:31.560 of us consume housing, and no one's ever looked at 0:07:31.600 --> 0:07:34.239 it as a consumer product. And at the same time, 0:07:34.280 --> 0:07:37.120 I think housing is in crisis. If we look at 0:07:37.280 --> 0:07:40.320 the asking rents in most markets right now, there's seventy 0:07:40.400 --> 0:07:44.080 pc higher than they were for what's being paid. And 0:07:44.160 --> 0:07:46.440 we also have a housing supply problem. We need to 0:07:46.480 --> 0:07:50.240 build five million more apartments to meet the demand for housing. So, 0:07:50.480 --> 0:07:53.680 given the impact that it can have on people's lives 0:07:54.000 --> 0:07:57.000 and the challenges facing it, I think it is right 0:07:57.120 --> 0:07:59.760 for a lot of attention and a lot of investment 0:08:00.000 --> 0:08:03.720 and a vision for what it can be, Jessica. Emily 0:08:03.760 --> 0:08:06.560 just alluded to the was or rather a sorry, a 0:08:06.560 --> 0:08:08.840 lot of noise around this space that partly because of 0:08:08.840 --> 0:08:11.840 what Mr Newman has just announced with his new venture Flow. 0:08:12.240 --> 0:08:15.320 He had a relationship that previously existed or maybe still 0:08:15.360 --> 0:08:18.160 exists with al Freedom with you guys. Has founders talked 0:08:18.200 --> 0:08:19.960 to us a little bit about that, how you got 0:08:20.000 --> 0:08:21.760 to know him in his family office, and how that 0:08:21.800 --> 0:08:27.080 relationship really came to be in the first place. So 0:08:27.720 --> 0:08:31.280 at Alfred, we've always taken a very collaborative approach for 0:08:31.480 --> 0:08:35.360 building our business and that started, you know, eight years 0:08:35.360 --> 0:08:38.920 ago when we started working with our initial landlords and partners. 0:08:39.040 --> 0:08:41.600 And among our partners, you know, we don't only count Adam, 0:08:41.640 --> 0:08:45.480 but we count Grace Star and invest Go, and you 0:08:45.480 --> 0:08:48.120 know our venture capital partners any A and and Spark 0:08:48.559 --> 0:08:50.640 And I think the key from our perspective has been 0:08:50.920 --> 0:08:53.520 to build a business by working with the best in 0:08:53.600 --> 0:08:57.480 the industry and doing that bottoms up, and that means 0:08:57.520 --> 0:09:00.000 being part of a broad ecosystem and seeking out people 0:09:00.040 --> 0:09:02.360 on that ecosystem that sees something that is similar to 0:09:02.360 --> 0:09:05.040 you and want to have a hand in building that future. 0:09:05.200 --> 0:09:07.080 So that's the approach we've taken for the history of 0:09:07.080 --> 0:09:09.520 how we've built the company, and you know, it's very 0:09:09.600 --> 0:09:14.559 much for how we met Adam, and obviously Alfred has 0:09:14.600 --> 0:09:18.360 its own product, unique product. We've just talked about the 0:09:18.440 --> 0:09:20.920 sort of this idea of owning the future of living. 0:09:21.440 --> 0:09:23.760 What is it that Alfred does. It is sort of 0:09:23.840 --> 0:09:27.080 unique and gives it some protection against new competitors potentially 0:09:27.120 --> 0:09:30.000 coming into the space and looking to disrupt residential real 0:09:30.080 --> 0:09:33.080 estate in a similar way. So ed if you look 0:09:33.120 --> 0:09:36.600 at the apartment space in particular, which is where most 0:09:36.679 --> 0:09:40.280 of us are actually living, and renters in fact are 0:09:40.280 --> 0:09:44.040 going to be the majority of home dwellers and future 0:09:44.080 --> 0:09:48.040 instead of homeowners. So multi family really hasn't evolved since 0:09:48.080 --> 0:09:51.440 the invention of the elevator. That is like the biggest 0:09:51.480 --> 0:09:54.640 innovation that's had the opportunity to disrupt the space. And 0:09:54.679 --> 0:09:58.400 the reason why we believe that real estate, specificly residential 0:09:58.440 --> 0:10:01.520 has been so resistant to disruption today it takes only 0:10:01.600 --> 0:10:04.599 one percent of its budget and applies that towards technology, 0:10:05.000 --> 0:10:07.960 is because it's incredibly fractured. So to make a change, 0:10:08.200 --> 0:10:10.160 you can't just attack one part of the problem. You 0:10:10.200 --> 0:10:12.000 have to look at the entire value chain and you 0:10:12.040 --> 0:10:15.080 have the aligned stakeholders in new ways that create value 0:10:15.080 --> 0:10:18.480 for everyone. So for us, what Alphred does that's so unique. 0:10:18.520 --> 0:10:21.280 We are the only prop tech company that's ever first 0:10:21.520 --> 0:10:24.439 really focused on the resident. We started with home management. 0:10:24.480 --> 0:10:26.760 We earned the right and the trust of consumers to 0:10:27.160 --> 0:10:30.480 provide services into the home. We then acquired a company 0:10:30.559 --> 0:10:33.439 that allowed us to build technology and automate the management 0:10:33.440 --> 0:10:36.240 of a full building. We then acquired a property manager 0:10:36.280 --> 0:10:38.839 that gives us full understanding what it takes to drive 0:10:38.880 --> 0:10:41.240 an asset and so what we're able to do when 0:10:41.280 --> 0:10:44.160 we put those three things together, which are very different businesses, 0:10:44.160 --> 0:10:46.320 but we create a fly will and we treat the 0:10:46.360 --> 0:10:49.520 consumer like they're the king. We add efficiencies with technology. 0:10:49.600 --> 0:10:52.600 We automate the entire resident experience from signing your least, 0:10:52.640 --> 0:10:56.360 paying your rent, booking an amenity, booking a peloton um 0:10:56.400 --> 0:10:58.640 and it doesn't hurt that we make the owner more money, 0:10:58.840 --> 0:11:03.480 but we also make the neighborhood around the building more vibrant. 0:11:03.480 --> 0:11:06.079 We bring services into buildings, and we really think about 0:11:06.080 --> 0:11:08.920 real estate as it's not just about the rent check. 0:11:09.040 --> 0:11:12.680 It's about looking at retail and looking at the building 0:11:12.679 --> 0:11:16.520 itself as a retail center for lifestyle and gaining access 0:11:16.559 --> 0:11:19.760 to the consumer wallet. So we're expanding the pie for everyone. 0:11:19.880 --> 0:11:22.199 We're changing the value chain, and we're doing that because 0:11:22.240 --> 0:11:24.720 we have these different core competencies that have taken us 0:11:24.800 --> 0:11:28.640 eight years of really hard work and evolution, building by building, 0:11:28.640 --> 0:11:31.200 shareholder by Sharyld's holds are building like we have a 0:11:31.280 --> 0:11:34.200 hundred and fifty thousand units on our platform in fifty 0:11:34.200 --> 0:11:37.320 two cities across North America and US and Canada, and 0:11:37.360 --> 0:11:39.880 we're really proud of the resilience we've had to be 0:11:39.920 --> 0:11:43.960 able to build well. We believe will be a generation 0:11:44.000 --> 0:11:48.000 defining company. So Forbes has done some reporting on your 0:11:48.000 --> 0:11:52.239 experience with Adam Newman and how you know his relationship 0:11:52.240 --> 0:11:54.600 with the company changed over the last couple of years. 0:11:54.600 --> 0:11:58.959 His representatives say he believes that the article is inaccurate 0:11:59.080 --> 0:12:03.679 and that in his family office still support the company. 0:12:03.880 --> 0:12:08.920 What's your response to that and your assessment of this reporting. 0:12:12.080 --> 0:12:14.720 So it's a great question, and I think a lot 0:12:14.760 --> 0:12:17.719 of people are asking probably similar questions. But the thing 0:12:17.760 --> 0:12:22.000 that I think is important is not necessarily what's accurate 0:12:22.200 --> 0:12:24.760 from a reporting perspective, it's what are we really focused 0:12:24.760 --> 0:12:28.160 on building and what have we done already to get 0:12:28.240 --> 0:12:30.520 us to this place. I think that this is a 0:12:30.600 --> 0:12:33.800 huge market and a lot of people see the opportunity 0:12:33.840 --> 0:12:37.400 here and that is something worth investing behind and investing 0:12:37.440 --> 0:12:40.200 in and as Marcella said, the thing that we're really 0:12:40.200 --> 0:12:42.880 focused on and alphad just what we've built today and 0:12:42.920 --> 0:12:45.000 where we want to take this in the future. We've 0:12:45.000 --> 0:12:48.160 only scratched the surface of what's possible in this market. 0:12:48.520 --> 0:12:50.800 We have a hundred and fifty thou units, but that 0:12:50.960 --> 0:12:53.560 is small compared to the overall market size, not just 0:12:53.600 --> 0:12:56.240 in the US but globally. And I think that's really 0:12:56.240 --> 0:13:00.640 where we should focus the conversation and bring the res versus, 0:13:00.920 --> 0:13:03.360 whether they are part of our company, are part of 0:13:03.400 --> 0:13:06.080 other companies, to bear in solving what housing can be 0:13:06.160 --> 0:13:09.480 in the future. That said, Mark Andreason wrote in a 0:13:09.480 --> 0:13:13.040 blog post that Flow aims to build quote the future 0:13:13.120 --> 0:13:15.720 of living. And if you look at your website on 0:13:15.760 --> 0:13:18.760 the home page, it says welcome to the future of living. 0:13:18.800 --> 0:13:21.559 I know that that can mean a lot of things. 0:13:21.600 --> 0:13:24.640 But how do you feel about that? And and and 0:13:24.679 --> 0:13:30.160 do you believe there's a conflict of interest here? Well, 0:13:30.160 --> 0:13:32.839 we know for sure. I think the future. Go ahead? No, 0:13:33.160 --> 0:13:37.199 go ahead, day, Marcella, Why don't you take I think 0:13:37.240 --> 0:13:45.360 the future? Yeah, go ahead. Um, what I was gonna 0:13:45.400 --> 0:13:48.959 say is that Andreason is a storied firm and fantastic 0:13:48.960 --> 0:13:51.880 investor and we're excited about the attention that they're bringing 0:13:51.920 --> 0:13:54.800 to the space. Obviously with the largest check they've ever written, 0:13:55.200 --> 0:13:58.200 we have raised ourselves a hundred million dollars over eight 0:13:58.280 --> 0:14:00.959 years UM, and there is a prints between those two 0:14:01.040 --> 0:14:07.520 numbers UM and we UH do see the opportunity to 0:14:08.000 --> 0:14:12.400 continue to expand UM to our investor set. But I 0:14:12.640 --> 0:14:15.160 don't want to comment on our on other businesses as 0:14:15.200 --> 0:14:19.320 much as I really want to focus a conversation on ours, Marcella, 0:14:19.440 --> 0:14:21.680 just on the on the question of funding. And look, 0:14:21.680 --> 0:14:24.480 obviously and Reeson has put in a very large amount 0:14:24.480 --> 0:14:26.240 of money now into this space, which should just say 0:14:26.240 --> 0:14:29.760 have serious appetite here have you guys as Outfred had 0:14:29.760 --> 0:14:32.840 a conversation with them about getting backing. Is it something 0:14:32.840 --> 0:14:35.360 you would now look to do? Clearly, as I say, 0:14:35.400 --> 0:14:39.920 they are very interested in this space. Yeah, so um, 0:14:39.920 --> 0:14:41.960 you know, we have lots of investors, We're talking to 0:14:42.440 --> 0:14:44.280 lots of investors. But one thing I would note is 0:14:44.280 --> 0:14:46.840 that the company is on a path of profitability and 0:14:46.880 --> 0:14:49.120 we are a self sustaining company that's been doing we're 0:14:49.240 --> 0:14:52.280 CRE eight years. This is not an idea that is 0:14:52.280 --> 0:14:54.840 on a whiteboard. We really feel like we have the 0:14:54.840 --> 0:14:58.480 horse by the main and there's something really big here. UM. 0:14:58.520 --> 0:15:02.360 In terms of talking to other investors, especially E s 0:15:02.440 --> 0:15:06.160 G investors, we have a ton of appetite. UM. I 0:15:06.200 --> 0:15:09.480 would say that one thing that I hope UM a 0:15:09.520 --> 0:15:11.840 positive silver lining that comes out of this is the 0:15:11.880 --> 0:15:15.960 way we think about venture, especially for female lead companies. 0:15:16.000 --> 0:15:18.400 Only two percent of venture dollars in the past year 0:15:18.400 --> 0:15:21.440 have gone to female lead companies, and that's strunk year 0:15:21.480 --> 0:15:25.120 over year. And I really want to put um some 0:15:25.160 --> 0:15:28.400 emphasis here and saying that female lead companies are no 0:15:28.840 --> 0:15:32.280 less um, the ideas are no smaller, and our ability 0:15:32.320 --> 0:15:35.120 to execute is no less And I think that there's 0:15:35.120 --> 0:15:39.560 a huge arbitrage opportunity for backing female founders and especially 0:15:39.560 --> 0:15:42.120 in the space. And I believe that the future of 0:15:42.200 --> 0:15:45.680 living will require lots of collaboration across many different companies, 0:15:46.200 --> 0:15:49.400 and that that's the new form of disruption, especially where 0:15:49.480 --> 0:15:52.800 we require so much change across so many stakeholders in 0:15:52.840 --> 0:15:56.040 a very complicated value chain. Jess, I'd love to give 0:15:56.040 --> 0:15:58.160 you a chance to weigh in on this question as well. 0:15:58.320 --> 0:16:02.440 Obviously we know that you know women are historically underfunded, 0:16:02.840 --> 0:16:05.760 UH in Silicon Valley have a much harder time raising money, 0:16:05.760 --> 0:16:09.120 and here we have idea aside, you know, a controversial 0:16:09.160 --> 0:16:12.160 mail founder getting a very big check. Uh. You know 0:16:12.200 --> 0:16:15.840 what sort of feelings? Uh what was your reaction to 0:16:16.000 --> 0:16:20.480 that number? Yeah, I think that. I mean, it's a 0:16:20.480 --> 0:16:23.040 great point and it's certainly not lost on us. I 0:16:23.080 --> 0:16:26.640 think the positive space sort of view of it is 0:16:27.000 --> 0:16:29.640 it's time for a lot of investment to go into 0:16:29.640 --> 0:16:32.360 this space, and this is raising the awareness and the 0:16:33.000 --> 0:16:37.560 visibility of housing and the rented rental residential real estate 0:16:37.560 --> 0:16:40.520 market as an opportunity. And I think that size of check, 0:16:40.640 --> 0:16:44.040 particularly from and Resent hardwhich which is a terrific company, 0:16:44.320 --> 0:16:47.840 really validates that market and puts a spotlight on what 0:16:48.080 --> 0:16:51.200 UM you know, I think hasn't been as visible previously. 0:16:51.680 --> 0:16:54.520 So you know, I think Marcella spoke to some of 0:16:54.600 --> 0:16:58.440 the um other elements of it. But if we kind 0:16:58.440 --> 0:17:00.600 of look into the future, we we and take that 0:17:00.680 --> 0:17:04.159 as a benefit for sure. Obviously both of you have 0:17:04.280 --> 0:17:07.800 worked very closely with miss Newman in this company and 0:17:07.920 --> 0:17:09.840 sort of over that period of time and the relationship 0:17:09.920 --> 0:17:12.960 now looking at him starting his own business in this space, 0:17:12.960 --> 0:17:15.920 whether or not it competes directly with what you guys do. 0:17:16.440 --> 0:17:18.359 What is it going to take for Flow to be 0:17:18.400 --> 0:17:21.080 successful in this market as it comes in as a 0:17:21.119 --> 0:17:27.720 sort of as a new entrant. Yeah, I think as 0:17:27.760 --> 0:17:31.000 with any business entering a market, it really comes down 0:17:31.040 --> 0:17:34.199 to understanding the customer. And when we started OFFRED, we 0:17:34.320 --> 0:17:37.679 started by focusing on the resident and focusing on the 0:17:37.720 --> 0:17:39.720 way that we could impact their life and give back 0:17:39.760 --> 0:17:42.640 time past the front door of their home. And that's 0:17:42.640 --> 0:17:45.520 how we really built the company by listening to what 0:17:45.600 --> 0:17:48.119 does a resident need, what does a consumer need in 0:17:48.320 --> 0:17:51.400 the housing market, and how can we begin to deliver that? 0:17:51.720 --> 0:17:53.439 And I think that is going to be true of 0:17:53.480 --> 0:17:57.000 all businesses entering this space UM, and probably not only 0:17:57.080 --> 0:17:59.359 just for the resident, but how can we make the 0:18:00.119 --> 0:18:04.160 UM operators, the folks that work in these buildings lives easier? 0:18:04.280 --> 0:18:07.199 How can we elevate all of the attention in this 0:18:07.240 --> 0:18:10.080 space just for the benefit of everyone. And listening and 0:18:10.119 --> 0:18:13.200 really thinking from the consumer perspective and the customer perspective 0:18:13.480 --> 0:18:17.200 I think is critical for that. So bigger picture, obviously, 0:18:17.440 --> 0:18:20.560 we are battling inflation. You've got consumers under pressure. We 0:18:20.600 --> 0:18:24.520 are potentially going into a recession. You know, how do 0:18:24.680 --> 0:18:26.920 uss how many people are going to want to pay 0:18:27.000 --> 0:18:30.320 more for the kind of services you provide. Do you 0:18:30.400 --> 0:18:34.879 see this as a luxury or necessity? Marcelo I let ye, 0:18:35.600 --> 0:18:37.920 So I think the really important thing that we are 0:18:37.960 --> 0:18:41.720 doing is it's not about increasing rent prices. It's about 0:18:41.760 --> 0:18:44.280 how do we do things more efficiently, how do we 0:18:44.359 --> 0:18:48.439 use technology to automate processes, to anticipate needs, to deliver 0:18:48.560 --> 0:18:52.080 services that allow revenue to come into the building and 0:18:52.240 --> 0:18:56.360 effectively increasing the size of the pie, not just by 0:18:56.560 --> 0:18:59.000 asking a resident to pay more. And we really think 0:18:59.040 --> 0:19:01.720 that as you see in the rental prices and increases 0:19:01.800 --> 0:19:04.520 to the rental housing market have been so extreme and 0:19:04.520 --> 0:19:08.040 there has not been a subsequent increase in the value proposition, 0:19:08.400 --> 0:19:10.480 you're still getting those four walls. And what we believe 0:19:10.600 --> 0:19:13.119 is fundamentally people want to rent a lifestyle and rent 0:19:13.359 --> 0:19:16.520 a home, and that we can provide that with putting 0:19:16.560 --> 0:19:19.520 our technology and staffing these buildings a little bit differently, 0:19:19.760 --> 0:19:23.200 training people to hotel standards, moving property management from a 0:19:23.280 --> 0:19:26.600 focus on maintenance and rent collection and trash collection to 0:19:26.680 --> 0:19:29.119 really how do we make a residence life fantastic? How 0:19:29.119 --> 0:19:31.280 do we build a community, how do we make people 0:19:31.280 --> 0:19:33.040 feel a sense of place and a sense of home. 0:19:33.400 --> 0:19:36.119 So it's not just about how do we jack up 0:19:36.160 --> 0:19:38.160 the rent prices, it's how do we serve with consumer 0:19:38.400 --> 0:19:41.639 in a in a better way? All right? The co 0:19:41.800 --> 0:19:45.199 founders of Alfred Marcellas Opone and Jessica Beck, thank you 0:19:45.240 --> 0:19:47.199 both so a lot much for joining us. Along with 0:19:47.200 --> 0:19:59.960 our very own at Hammond. Regulators are taking a cool 0:20:00.040 --> 0:20:02.400 us look at how Twitter calculates the number of spam 0:20:02.480 --> 0:20:05.800 and bought accounts on its platform. In June, the SEC 0:20:05.960 --> 0:20:09.000 wrote a letter to Twitter CEO asking to disclose the 0:20:09.040 --> 0:20:13.800 methodology used in calculating the bot situation. In response, Twitter's 0:20:13.840 --> 0:20:17.639 laws told the SEC that it already adequately discloses the 0:20:17.720 --> 0:20:20.800 methodology that it uses towards estimate. Has become a central 0:20:20.800 --> 0:20:24.240 sticking point between the company and Elon Musk, who's looking 0:20:24.240 --> 0:20:26.760 to walk away from a forty four billion dollar buyout 0:20:27.119 --> 0:20:30.080 of the platform. Here discuss s Bloomberg's Kurt Wagner. So 0:20:30.160 --> 0:20:33.080 Kirt brings us up to speed. Obviously, you know there 0:20:33.119 --> 0:20:37.480 was another hearing today the whistleblower allegations we learned about yesterday. 0:20:37.680 --> 0:20:43.120 Now potentially the SEC is involved. How so, yeah, Well, 0:20:43.440 --> 0:20:46.239 the allegations from the whistle blower kind of hit on 0:20:46.400 --> 0:20:49.000 two important things. One, as you pointed out what the 0:20:49.080 --> 0:20:51.760 sec is that, you know, he claims that Twitter has 0:20:51.800 --> 0:20:55.200 been lining to shareholders. Right. If the company is indeed 0:20:55.400 --> 0:20:57.600 hiding the number of bots that make up you know, 0:20:57.640 --> 0:20:59.800 part of its user base or something like that, that 0:21:00.080 --> 0:21:03.159 be a securities violation and that could be a huge 0:21:03.440 --> 0:21:06.160 reason for the SEC to investigate. Now, on the privacy side, 0:21:06.160 --> 0:21:07.919 a lot of these allegations were also that the company 0:21:07.960 --> 0:21:11.640 wasn't doing enough around privacy. Twitter and the FTC gone 0:21:11.640 --> 0:21:13.760 into a consent to Caree back in two thousand eleven 0:21:13.760 --> 0:21:15.600 that the company would make all kinds of changes to 0:21:15.640 --> 0:21:18.440 its privacy practices, and uh, you know, this whistle blower 0:21:18.480 --> 0:21:21.040 says the company hasn't done that. So now both regulatory 0:21:21.080 --> 0:21:23.520 agencies essentially have a good reason to it the very 0:21:23.640 --> 0:21:26.720 least ask Twitter what's going on and see clarification about 0:21:26.760 --> 0:21:30.679 what this whistle blower claims, what happened at the latest hearing, 0:21:30.800 --> 0:21:34.160 and how does it potentially move the ball forward? Well, 0:21:34.200 --> 0:21:36.880 the two sides have been fighting for a while as 0:21:36.920 --> 0:21:39.760 to you know, who should be bringing the information about 0:21:39.800 --> 0:21:42.960 bots forward? Right. Elon Musk and his camp basically say 0:21:42.960 --> 0:21:45.359 that Twitter has not been forthcoming. Not only have they 0:21:45.400 --> 0:21:47.520 not shared the information with him directly, but they're not 0:21:47.720 --> 0:21:51.080 being willing to put forward employees who do have access 0:21:51.080 --> 0:21:53.640 to that information or expertise, right, And Twitter, of course 0:21:53.720 --> 0:21:56.159 is arguing the opposite, Hey, we put everyone forward that 0:21:56.200 --> 0:21:58.159 needs to be so right now, they're trying to settle 0:21:58.200 --> 0:22:01.080 that in court. One of the issues is that Musk's lawyers, 0:22:01.200 --> 0:22:04.040 you know, they want access to this whistleblower, right They 0:22:04.040 --> 0:22:07.679