Speaker 1: From the heart of where innovation, money and power colli
Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with
Speaker 1: Emily Jay. I'm Emily check in Las Vegas for the
Speaker 1: retail event of the year Shop Talk, where brands from
Speaker 1: around the world have gathered to talk about the future
Speaker 1: of commerce. This is Bloomberg Technology. Coming up in the
Speaker 1: next hour. Uber wants to outdo Amazon for local commerce delivery.
Speaker 1: My exclusive with CEO Dara Kaswa Shay plus Rihanna Savage
Speaker 1: x Fency Lingerie company could be valued at three billion
Speaker 1: dollars amidst reports of an I p o are sit
Speaker 1: down with the retailer's president about the future of a
Speaker 1: R technology in store, online and more. And apples were
Speaker 1: under three trillion the iPhone maker on an eleven day
Speaker 1: hot streak. We will dial into the company's best performance
Speaker 1: since two thousand three. We will get to all of
Speaker 1: that in a moment, but first I want to take
Speaker 1: a quick look at the market at Ludlow here with
Speaker 1: the latest ad walkers through the day. Yeah. Well, the
Speaker 1: prospects for a resolution or at least scaling back the
Speaker 1: conflicts in Ukraine was the big driver's sentiment. Technology the
Speaker 1: best performing sector and equity markets. And it was interesting
Speaker 1: to see commodity futures fall in New York, the Bloomberg
Speaker 1: Commodity Index softer by two percentage points, the idea being
Speaker 1: that if we move towards a peaceful resolution in Ukraine,
Speaker 1: then the supply of oil soft commodities like wheat, industrial
Speaker 1: metals could improve. Of course, yields retreating the tenure US
Speaker 1: treasury yield down by six basis points two point four percent,
Speaker 1: and we've got some inversion right where the yield on
Speaker 1: the two year US Treasury higher than the US tenure yield,
Speaker 1: or in other words, the yield on short duration bonds
Speaker 1: higher than long term duration bonds. Of course, for many
Speaker 1: that's a signal of Rachelle show and in broad risk
Speaker 1: con sentiment, Bitcoin drop below forty eight thousand dollars per token.
Speaker 1: Of course, we're also in earning season. Micron, the semiconducted company,
Speaker 1: of course reporting and look at it stock after ours,
Speaker 1: and we're higher. Really bullish outlook. Essentially, this is a
Speaker 1: maker of memory chips, right d ram, but they're saying
Speaker 1: that a main driver of demand in their outlook is
Speaker 1: continued investment in data centers. That stock hired by four
Speaker 1: point four percent and after ours and in terms of
Speaker 1: some of the movies I've been watching throughout the day,
Speaker 1: We're going to talk about this one a lot in
Speaker 1: the show. Apple up for an eleventh straight day, its
Speaker 1: longest streak of gains since two thousand three. We're really
Speaker 1: going to dig into this one. Is a lot to
Speaker 1: talk about, but also tied to the confidence in Ukraine,
Speaker 1: this idea that will see more supply of industrial metals,
Speaker 1: more supply of battery metals. It was interesting to see
Speaker 1: gains in e v makers riving up seventm it's biggest
Speaker 1: jump since it's I p O and November eleven from
Speaker 1: Lucid getting up in the act as well and up
Speaker 1: eight percent. All right, thanks, We'll be back with you
Speaker 1: on Apple later. In this we are live here at
Speaker 1: Shoptalk in Las Vegas, where the retail industries power players
Speaker 1: are talking about the future of commerce and e commerce.
Speaker 1: I caught up with Uber CEO Dara Kazra Shah earlier
Speaker 1: to talk about everything from their vision to create a
Speaker 1: super app to Ukraine and inflation. Had to start though,
Speaker 1: by asking about how drivers feel about the pressure at
Speaker 1: the pump and those rising gas prices. Here's what he
Speaker 1: had to say. I'm hoping that with the early signal
Speaker 1: of there being some kind of a light at the
Speaker 1: end of tunnel as it relates to the situation, the
Speaker 1: terrible situation in Ukraine, uh, we'll have some relief or
Speaker 1: at least things won't get worse. I think the good
Speaker 1: news for us is that earnings for our earners are
Speaker 1: at significant highs. For example, in the US and Canada,
Speaker 1: our earners are earning an average this is an average
Speaker 1: of thirty one bucks an hour. Those are pretty robust earnings.
Speaker 1: But the pain of the pump is hitting everybody, and
Speaker 1: especially our drivers. And I know you've added the fuel searcharge,
Speaker 1: but drivers say, some of them, it's not enough. You
Speaker 1: have drivers protesting at your New York offices today. Will
Speaker 1: this searcharge go up with gas prices? And will it
Speaker 1: continue beyond May eleventh? If if gas prices are still high, well,
Speaker 1: we were the first and the industry to move on
Speaker 1: the searcharge, and we moved on the searcharge because we
Speaker 1: thought it was the right thing to do, and it
Speaker 1: helped cover the majority of the increase in fuel prices. Admittaly,
Speaker 1: not all of the increase in fuel prices in May,
Speaker 1: no one compartict where the world is. We're going to
Speaker 1: look at the situation and if the situation doesn't change,
Speaker 1: will certainly consider continuing the fuel charge or whether it's
Speaker 1: an increase or dree crease, who knows. We are going
Speaker 1: to We want to be there side by side whether
Speaker 1: earners and help them make a great, flexible living. Would
Speaker 1: you consider lowering your take rate or increasing there's generally
Speaker 1: our take rate is lower now than it has been historically,
Speaker 1: and over the long term, we essentially want to earn
Speaker 1: a fair profit, and we're doing everything that we can
Speaker 1: to drive automation and efficiency of our own system so
Speaker 1: that we can put as much of the dollar that
Speaker 1: let's say a rider spends on an uber to put
Speaker 1: it in our earner's pockets. The more money we make,
Speaker 1: the more money they make. So you've got gas prices
Speaker 1: at highs, inflation at forty year highs, a new variant
Speaker 1: that's potentially more can changeous. How is this impacting supply
Speaker 1: and demands? We're not seeing any kinds of impacts on
Speaker 1: supply demand demand. We continue to hit records as it
Speaker 1: relates to mobility and delivery and our commerce business that
Speaker 1: we're talking about here, So he really isn't showing up
Speaker 1: in the business earners growth continues to be very significant.
Speaker 1: More earners are feeling safe, they're coming back to the platform.
Speaker 1: Everybody wants to get out of the house. Uh. And
Speaker 1: so we're not seeing any kind of a signal at
Speaker 1: this point that would indicate something is going the wrong way.
Speaker 1: But we have to be hyper vigilant. And I think
Speaker 1: for us, we're benefiting from the secular trend on demand transportation,
Speaker 1: on demand delivery of anything, and as a result, I
Speaker 1: think we will be relatively resistant to whatever happens. You
Speaker 1: know in the broader economy. You mentioned we're close to
Speaker 1: we're at post pandemic his for rides. When do we
Speaker 1: get to pre pandemic hies. It's going to happen sooner
Speaker 1: than you think. This year is still definitely okay. Now
Speaker 1: I want to talk about the war in Ukraine. I
Speaker 1: know you work to pull a number of employees out
Speaker 1: of Ukraine. You're you've been offering free rides, especially at
Speaker 1: the border. What is the status of your service and
Speaker 1: your employees in Ukraine right now? So we are our
Speaker 1: employees who want to relocation have gone relocation. We're tracking
Speaker 1: them and their families. That comes first. Uh. Second, we
Speaker 1: are running our systems in the towns that the government
Speaker 1: wants us to run them, and we're actually not plugging
Speaker 1: in our our Uber direct which is our logistics uh
Speaker 1: technolo oology to be able to power the u n
Speaker 1: to carry food around. And at the same time what
Speaker 1: we're doing is we're raising money for Ukraine. We've raised
Speaker 1: over two million dollars through kind of donate buttons. It's
Speaker 1: incredibly easy to use and the donations have poured in
Speaker 1: in a way that we never expected. Now, you do
Speaker 1: still have a stake in your joint venture with yandex
Speaker 1: and I know you've had Uber Exact resign from the board.
Speaker 1: You said you're working to accelerate the divestment of that asset.
Speaker 1: But when you open the Uber app in Russia you
Speaker 1: can still call a car. Why is that? That is
Speaker 1: essentially a skin So it's only branding of our technology.
Speaker 1: There's no Uber technology being used at all. It was
Speaker 1: part of the original transaction. Uber is a very big
Speaker 1: brand globally, including in Russia as well, but we don't
Speaker 1: directly touch that in any way, shape or form. So
Speaker 1: what's the progress on selling off this asset? You know,
Speaker 1: how far are you willing to go? Because who's going
Speaker 1: to buy a Russian rides sharing service right now? I
Speaker 1: think right now everything's on hold. So we have stated
Speaker 1: the intent to sell. We will sell as soon as reasonable.
Speaker 1: I think right now, the fact is people are much
Speaker 1: more focused on humanitarian aid, resolving this terrible situation in
Speaker 1: Ukraine and hopefully then moving forward with some semblance of normalcy.
Speaker 1: Then we'll look up and see what we can do.
Speaker 1: We already divested about a billion dollars out of that business,
Speaker 1: so this is something that we have thought about earlier.
Speaker 1: It's not something all of a sudden that we thought
Speaker 1: about in this context, and we'll look to conclude the
Speaker 1: divestiture as soon as reasonable. Goober shares are down, Door
Speaker 1: Too shares are down. Instant Cart just lowered its valuation.
Speaker 1: By how long do you expect this market downturn to last?
Speaker 1: And what are you bracing for? I don't think you
Speaker 1: can predict the market. That's certainly not my job. Right
Speaker 1: My job is to run a business. And I think
Speaker 1: that we as a company have made the Pivots profitability.
Speaker 1: Remember we promised even profitability last year, we hit it earlier,
Speaker 1: uh than than our promises. We said we're going to
Speaker 1: be free cashual profitable this year. The mainline Uber mobility business,
Speaker 1: the delivery business ubernats and the freight business, all of
Speaker 1: them are going to be profitable. As it relates the Ibadah.
Speaker 1: So I think relative to a competition, we made the
Speaker 1: pivots of profitability sooner and at a scale, and I
Speaker 1: think the reopening for us is going to be a
Speaker 1: much bigger tailwind then let's say some of the other
Speaker 1: delivery players that were competing against Big Milestone. In London.
Speaker 1: You signed a new agreement with TfL two and half
Speaker 1: year extension, which is a big deal because they rejected
Speaker 1: your last two requests. I believe, also committing to full electrification.
Speaker 1: How are you going to do that? Well, we have.
Speaker 1: We committed to full electrifications quite early, uh and every
Speaker 1: single ride in London essentially uh we take some amount
Speaker 1: of that rod put it into a pool to help
Speaker 1: drivers in London moved from gasoline power cars to electric cars.
Speaker 1: So this has been it's part of Mayor City cons vision.
Speaker 1: We love that vision, so we have been working on
Speaker 1: electrying our fleet and we're going to get it done.
Speaker 1: You just got New York City cabs on board. I
Speaker 1: don't think anybody thought that would ever happen. Who's next?
Speaker 1: Is it San Francisco? It's we're certainly talking to many
Speaker 1: cap companies out there. This is actually a product that
Speaker 1: we built outside of the US. We've been at it
Speaker 1: for years. We have over a hundred thousand taxi cabs
Speaker 1: on our platform, benefiting from the demand that the Uber
Speaker 1: platform and the services and the earnings that Uber brings,
Speaker 1: and we're just this is just an extension of that
Speaker 1: same technology that we're building. Super excited about New York
Speaker 1: UH and it will be followed up, hopefully with many
Speaker 1: new announcements in many new cities. Labor Secretary Marty Walsh
Speaker 1: said last year that you think some gig workers could
Speaker 1: be or should be classified as employees. It's been reported
Speaker 1: that you've had conversations with him that have been productive.
Speaker 1: When's the last time you spoke with the Secretary of
Speaker 1: Labor or the Labor Department, and what progress have you made?
Speaker 1: What is his view workers? It was you'd have to
Speaker 1: ask him his particular vote view. My conversation with him
Speaker 1: was midst last year, and the Secretary really listened. I
Speaker 1: think he really wants to learn about the benefits of
Speaker 1: gig work. Uh and you know some of the issues
Speaker 1: with gig work. We don't think this world of having
Speaker 1: to make a choice between flexibility of earnings, which is
Speaker 1: the number one reason why driver's current years engage on
Speaker 1: our platform. They do not want to be employees. We
Speaker 1: don't think there's this kind of false choice between flexibility
Speaker 1: and benefits and earnings. We can have both. And so
Speaker 1: the dialogue that we're having, you saw it in Prop
Speaker 1: twenty two in California. It is and it was an
Speaker 1: outsize winner with voters all of our earners wanted. I
Speaker 1: think that the Department Labor is listening, and we're hoping
Speaker 1: we can get to this win win, which is flexibility
Speaker 1: and benefits. Couber CEO dar Causra Shahi. There. You can
Speaker 1: catch that full interview at Bloomberg dot com. Coming up
Speaker 1: much more from shop Talk, we're gonna be going to
Speaker 1: be joined by Christian Pendarvis, president of Savage x fenty
Speaker 1: yes that is Rihanna's lingerie brand, to talk about the
Speaker 1: future of shopping on an offline in the role of
Speaker 1: a r technology that's next. This is Bloomberg. We're back
Speaker 1: live at Shop Dock in Las Vegas, where the power
Speaker 1: players of the retail industry are talking about the future
Speaker 1: of retail and e commerce. One of those up and
Speaker 1: coming retail stars is Savage x fenty, a lingerie company
Speaker 1: of singer turned fashion entrepreneur Rihanna who's been expanding its
Speaker 1: brick and mortar stores and mulling a public offering. Let's
Speaker 1: talk about all this and more with the company's co president,
Speaker 1: Christian and Pendarvis with me here live in person. And
Speaker 1: you worked at The Gap, you worked at Victoria's Secret.
Speaker 1: What's different about Savage x Fenti and what Rihanna brings
Speaker 1: to the team. Savage x fenty is an amazing brand,
Speaker 1: and I've had the good fortune, as you mentioned, for
Speaker 1: working for some of the great mainstay brands in this industry.
Speaker 1: But what I think honestly makes us special is we've
Speaker 1: been built from a place of authenticity, really driven by
Speaker 1: our founder Rihanna Um and we're embracing fashion in a
Speaker 1: different way. We're celebrating acknowledging customers that haven't been seen
Speaker 1: and acknowledged in the context of this industry. In the
Speaker 1: been a very very powerful brand to be a part
Speaker 1: of Victoria's secret for so long was run I met.
Speaker 1: Do you think being run by a woman has made
Speaker 1: a difference. Yeah, oh absolutely, There's no question. Everything that
Speaker 1: we do comes from a place of authenticity. We couldn't
Speaker 1: be anything but inclusive. We couldn't be anything but about
Speaker 1: female empowerment. That's what Rihanna stands for, and she's brought
Speaker 1: that to bear in our business, and I think you
Speaker 1: see it across everything that we do, from our product
Speaker 1: assortment to how we show up in external marketing. If
Speaker 1: you look at our website and our social media channels,
Speaker 1: we show up very differently than how other people have
Speaker 1: in the industry. It started out as a pure e
Speaker 1: commerce play, but you've been opening brick and mortar stores,
Speaker 1: including here in Las Vegas. What's the strategy there. It's
Speaker 1: a really important strategy for us. We want to meet
Speaker 1: our customers where they are, and physical retail is not dying,
Speaker 1: much to the sagren of many direct to consumer brands.
Speaker 1: It's an important part of how customers want to shop.
Speaker 1: I think the thing that we're doing very different. It's
Speaker 1: not just transactional. It can't just be transactional. It's got
Speaker 1: to be about an experience, an inviting place that customers
Speaker 1: really want to take time out of their day to
Speaker 1: go into the stores. What's the vission for augmented reality
Speaker 1: in addressing room or as part of the online shopping experience.
Speaker 1: We've heard about this for years, but I still haven't
Speaker 1: really seen it come to fruition. Yeah, and we're one
Speaker 1: of the things we're super excited about is how we
Speaker 1: are leveraging technology. So for us, for example, fit bra
Speaker 1: fit is critical as an intimate apparel retailer, and it
Speaker 1: hasn't changed in decades for how a woman determines what's
Speaker 1: the right size. So we're leveraging technology in a different way,
Speaker 1: leveraging three D body scans that can take a scan
Speaker 1: of your body, get your exact measurements, and map that
Speaker 1: back to our product assortment to say, here's the exact
Speaker 1: best fitting braw for you in the right size. So
Speaker 1: it's it's important to bring technology to bear in physical
Speaker 1: retail in a way that actually adds value for the customer.
Speaker 1: Out Lingerie could be seen as a luxury good. We
Speaker 1: are facing record inflation, the highest inflation in forty years.
Speaker 1: How is that impacting customer choices and how much they're
Speaker 1: willing to spend. Absolutely, and it's nice to have right well,
Speaker 1: and we're very sensitive to that. I think because our
Speaker 1: customer is very value conscious, they are feeling the pinch
Speaker 1: of inflation in their pocketbooks. So we're very very sensitive
Speaker 1: to that. We're looking really at our product. Our product
Speaker 1: as replenishable. People always have to wear underwear and at
Speaker 1: some point in time that product wears out. So we're
Speaker 1: making sure that we're creating product that's going to be
Speaker 1: functional for our customer, add value for them, and really
Speaker 1: deliver it in a way that really entice entices them
Speaker 1: to come into our brand. Have you seen any pullback
Speaker 1: in online sales or sales in general as a result
Speaker 1: of the pressure that consumers are feeling. Yeah, absolutely, we
Speaker 1: are definitely seeing that within our business, and that's why
Speaker 1: we're really looking for where can we do product that
Speaker 1: is a nice luxury to have that is not breaking
Speaker 1: baking her Procket book, that's something that she actually wants
Speaker 1: to spend her money on. What are the trends, what
Speaker 1: was hot in the pandemic? You know that that's sticking around.
Speaker 1: How our tastes in lingerie changing. Yeah. Absolutely. One of
Speaker 1: the big things that we saw during the pandemic. Everyone
Speaker 1: was at home. People were wearing leggings and braw less.
Speaker 1: They were really looking for very comfortable, cozy clothing. We
Speaker 1: have this amazing onesie out of fleece that literally people
Speaker 1: were living in at home, and so we really embrace
Speaker 1: that as a trend. Now that people are starting to
Speaker 1: go back into the real world, they need more structured undergarments,
Speaker 1: so we're seeing a shift back to some of the
Speaker 1: more traditional categories within intimate apparel. How involved is Rihanna?
Speaker 1: Incredibly incredibly involved in everything that we do, whether it's
Speaker 1: on the product side and the assortment that we have
Speaker 1: in stores, or whether it's on our marketing side, our
Speaker 1: creative campaigns, the models and influences that we're working with.
Speaker 1: She really has her fingerprint on everything that we're doing
Speaker 1: as a branch. What what is it like working with
Speaker 1: her as someone who's who's worked at these established fashion
Speaker 1: brands which were run by mostly male ceo s. Yeah,
Speaker 1: it's a It's a wonderful breath of fresh air. I
Speaker 1: tease to people in my network. I know Rihanna is
Speaker 1: a global pop star. I see her as a business partner,
Speaker 1: because that's the context on which I personally know her.
Speaker 1: She understands the customer, She understands people's bodies, she understands
Speaker 1: people's pain points when it comes to their bodies, and
Speaker 1: she always makes sure that we're developing product that's addressing
Speaker 1: and acknowledging that. So she thinks very much about the customer.
Speaker 1: There are reports that you she are considering a public offering.
Speaker 1: What's the status of that. Well, we can't publicly comment
Speaker 1: on anything related to an I p O. We're just
Speaker 1: so singularly focused on growing this business and capitalizing on
Speaker 1: the opportunity to exist. So I think if an I
Speaker 1: p O at some point in the future makes sense
Speaker 1: for us, we'll definitely evaluate that. How are you thinking
Speaker 1: about the macro environment? You know, obviously we're seeing inflation,
Speaker 1: there's a lot of economic uncertainty. Don't know necessarily what's next. Yeah, absolutely,
Speaker 1: And I think that's one of the things that's super
Speaker 1: important about being a leader is being able to be
Speaker 1: agile and whether change. So for us, it constantly comes
Speaker 1: back to the customer. Where can we add value for
Speaker 1: the customer? What is it that they want and need,
Speaker 1: and how can we position ourselves as a nice little treat,
Speaker 1: a surprise and delight for her that gives her a
Speaker 1: little bit of joy and him a little bit joy
Speaker 1: within their lives right now? So we're doing some future
Speaker 1: casting here. Take me five years out. How is the
Speaker 1: company different? How is the retail industry different, specifically the
Speaker 1: Laing Dree segment. Yeah. I think one of the big
Speaker 1: things is you're going to continue to see this merge
Speaker 1: of physical and digital in ways that complement each other
Speaker 1: and then take advantage of the strengths that each channel
Speaker 1: has to offer. So we've had a lot of conversation
Speaker 1: I'm sure you've heard it this week about the metaverse
Speaker 1: and how that's going to come to bear. You're going
Speaker 1: to see that come to bear, I think in a
Speaker 1: real way that we're gonna dramatically expand how people shop, UM,
Speaker 1: and what that proposition looks like for the see shopping
Speaker 1: and the matter verse. Absolutely, I see shopping in the
Speaker 1: metamor and what does that look like? I don't know yet.
Speaker 1: We all want to know. When you come tell us,
Speaker 1: but you do have a great choice of colors. UM.
Speaker 1: Thank you for coming to join us today, and we'll
Speaker 1: keep our out. Thank you, thanks for having see Christiane Pendarvis,
Speaker 1: co President, thank you for stopping by a few stories.
Speaker 1: We continue to watch. Will Smith has apologized for slapping
Speaker 1: Chris Rock on stage at the Academy Awards. In an
Speaker 1: Instagram post, Smith said he was out of line. Meantime,
Speaker 1: the Academy of Motion Picture Arts and Scientists has opened
Speaker 1: a review of Smith's behavior, saying they'll explore possible consequences
Speaker 1: for his actions. Nielsen, the TV rating stalwart, has agreed
Speaker 1: to be bought by a group of private equity firms
Speaker 1: for about sixteen billion dollars, including debt. The consortium is
Speaker 1: being led by Brookfield Asset Management and an affiliate of
Speaker 1: Ellie Management. Nielsen provides audience data services to many of
Speaker 1: the media's premier networks, and the FTC has had enough
Speaker 1: of those Turbo tax commercials about being quote free government agency,
Speaker 1: suing to stop into it from telling perspective customers that
Speaker 1: its tax prep services on turbo tax come at no cost.
Speaker 1: In fact, that offer applies only to those with simple returns.
Speaker 1: Everyone else has to pay. The FTC says customers spend
Speaker 1: a lot of time and effort on Turbo tax, only
Speaker 1: to find out they've got to upgrade to a paid
Speaker 1: service to complete the returns into it, says the FTC
Speaker 1: claims aren't credible. Coming up, Apple's hottest run since two
Speaker 1: thousand three. How soon before we hit three t yes trillion.
Speaker 1: We'll talk about that next. This is Bloomberg. Welcome back
Speaker 1: to Bloomer Technology. I'm Emily checking in San Francisco. Let's
Speaker 1: get to the story of the day. That is Apple,
Speaker 1: the tech giants. Stock has been on its hottest streak
Speaker 1: since two thousand and three. Bringing in Dan, i'ves of
Speaker 1: web Bush. Dan, you heard adds analysis there. I assume
Speaker 1: you think this is a question of not if, but
Speaker 1: when when do we get to three tea and what's
Speaker 1: it gonna take to get there? Okay, I think what's
Speaker 1: really happened. The street is just better appreciating what's really
Speaker 1: happening in terms of the demand story. iPhone thirteen demands
Speaker 1: our trip and supplied by and we're seeing more higher
Speaker 1: a sps in China services as rocks out. Of course,
Speaker 1: a historic win for the oscars. That was an Amazon
Speaker 1: on Netflix winning. It was Apple and the first streamer
Speaker 1: to ever win. I think we put it together in
Speaker 1: my opinion, this is the stock that's going to go
Speaker 1: well north to three trillion. I think we got strong
Speaker 1: earnings coming around the corner. I think this is just
Speaker 1: a start of the short the next leg of the
Speaker 1: story playing out in Cupertino. Do some of the macro
Speaker 1: economic headwinds concern you. I mean, we're looking at a
Speaker 1: down market across the board and investors pulling back on
Speaker 1: some of these huge tech multiples. How long does this
Speaker 1: down market continue? Well, I think, well, this is and
Speaker 1: we've talked about the most oversold tech market that we've
Speaker 1: seen the last five six years. But if you go
Speaker 1: back over the last few months, the haters will hate
Speaker 1: on on Apple. But just like many thought Caroline and
Speaker 1: Duke could louse in the first round, now they're playing
Speaker 1: the final four. So the point is, when I look
Speaker 1: at what's happened with Apple, I think they're just hitting
Speaker 1: their next leg of growth, going into iPhone fourteen and
Speaker 1: a services business. I still thinks undervalued by the street.
Speaker 1: It's a rock of Gibraltar tech name, and now with
Speaker 1: that green light to own tech, this is a name
Speaker 1: in our opinion that we'll have a too in front
Speaker 1: of it in the coming months and Dan, what sets
Speaker 1: Apple apart to you? You say, rock a Gibraltar compared
Speaker 1: to some of these other big tech names that have
Speaker 1: commanded such high multiples but seem to be struggling more now,
Speaker 1: whether it is Meta or Amazon for example. I think
Speaker 1: which unique with Apple is the services business continues to
Speaker 1: go into next gear of growth, will be looking at
Speaker 1: mid team growth. This would be eight billion or anual revenue.
Speaker 1: There's a reading that's happening on the services business. Underlying
Speaker 1: demand on iPhone thirteen premium continues to be unreally unlike
Speaker 1: anything that I've ever seen from Apple in the last
Speaker 1: five or six years. You're compared to Meta. I mean
Speaker 1: that's one because of Apple, because of Cooked that business
Speaker 1: model right now is is a different business model because
Speaker 1: of the iOS changes. So I think when you really
Speaker 1: start to see with Apple, it's a defensive name, it's
Speaker 1: also an offensive tech name. And that's why I like
Speaker 1: many that we saw sell this name over the last
Speaker 1: few months, I think you're starting to reevaluate it going
Speaker 1: into what I believe the street numbers still conservative. Do
Speaker 1: the production cutbacks concern you? Yeah, Look, I think this
Speaker 1: this overall continues to be just in terms of the
Speaker 1: overall regular toy environment, whether it's US or Europe. I mean,
Speaker 1: that's going to be an overhang on broader tech, and
Speaker 1: it's gonna be an overhang on the Apple. But it
Speaker 1: goes back that there's a better chance to me playing
Speaker 1: in the Masters next month than this impacting their business
Speaker 1: model the next few years. All right, I'd like to
Speaker 1: see it, Dan, you and the Masters. I'll be rooting
Speaker 1: for that. Dan Ives of Wedbush Security is always good
Speaker 1: to have you here on the show. Thank you well.
Speaker 1: Door Dash is entering wholesale delivery, announcing a new partnership
Speaker 1: with b JS. I caught up with door Dash president
Speaker 1: Christopher Payne earlier here in Vegas to talk about that
Speaker 1: and much more. Take a listen. There's two twenty six stores,
Speaker 1: mainly on the East coast. BJ's wholesales seventeen states, and
Speaker 1: now consumers that are on door Dash can access the
Speaker 1: b J Wholesales Club. Additionally, we have a product called
Speaker 1: door Dash Drive which powers delivery for third parties, so
Speaker 1: we'll also fulfill deliveries for b JS. This is our
Speaker 1: first wholesale club on the platform and we're thrilled. It's
Speaker 1: a lot of retailers have joined the platform. Grocers have
Speaker 1: joined the platform over the last eighteen months, and it's
Speaker 1: wonderful to see that trend continue. How different are the
Speaker 1: unit economics of grocery versus restaurant delivery because you're picking
Speaker 1: and packing the items, You're not just picking them up
Speaker 1: and dropping them off. There are differences there. Certainly there's
Speaker 1: more costs in the case that you're picking them, but
Speaker 1: you could They're also larger. They tend to be larger
Speaker 1: than a typical meal order, and so there are different
Speaker 1: characteristics to make the economics work. But we've got a
Speaker 1: lot of experience. We're partnered with safe Way, Albertson's hi
Speaker 1: V Myers UH and grocery is one of our fastest
Speaker 1: growing businesses and we're very confident in the long term
Speaker 1: profitability of the category. Now Uber is here talking about
Speaker 1: themselves as the future of retail, so not just to
Speaker 1: food delivery, but grocery and potentially everything else. How does
Speaker 1: that differ from what door dash is trying to do well?
Speaker 1: I think a lot of people. I think consumer expectations
Speaker 1: are rising. Consumers are looking to get more and more
Speaker 1: things delivered to their door in minutes, not hours or days.
Speaker 1: And there are a lot of companies that are going
Speaker 1: to try to go after that. It's been true over
Speaker 1: the last six years that I've been at at door Dash,
Speaker 1: and I'm sure you know many companies will continue to
Speaker 1: go after it. We think Doortash is uniquely situated to
Speaker 1: do this right because well, today we have twenty five
Speaker 1: million monthly actors. We have over share in the restaurant space,
Speaker 1: but now we're going beyond restaurants, convenience, grocery. We got J. C. Penney,
Speaker 1: Office Depot and many other companies on the platform, and
Speaker 1: consumer expectations only go in one direction. Additionally, we have
Speaker 1: dash Pass, which is a subscription product of ten million subscribers,
Speaker 1: and we're layering in Now you can get your restaurant delivery,
Speaker 1: your grocery delivery, and we think that will be a
Speaker 1: wonderful compliment because we don't think there's just restaurant consumers.
Speaker 1: We think there's bring it to me now consumers, and
Speaker 1: we think door Dash is the leader in local commerce.
Speaker 1: So that's that's what we're focused on to differentiate. Gas crisis,
Speaker 1: are high inflation at forty year highs, How is this
Speaker 1: impacting the business? How is it impacting dasher supply. How
Speaker 1: is it impacting orders because the cost of an average
Speaker 1: order is going on. Yeah, the inflation touches every aspect
Speaker 1: of the system, and it's something we've spent a lot
Speaker 1: of attention to. One thing to note about door dash
Speaker 1: in general is that most dashers do it as a
Speaker 1: side gig. It's four hours a week is the typical dasher.
Speaker 1: It was a million monthly active dashers on the platform
Speaker 1: and so we haven't seen much impact today to the
Speaker 1: number of dashers that are showing up and their dashing activity,
Speaker 1: but it's something we will keep an eye on. We
Speaker 1: have recently announced a program for dashers to help them
Speaker 1: as the price of gasoline has shot up in recent weeks.
Speaker 1: We have a card that can give them a ten
Speaker 1: percent discount. It's not just on their door dash deliveries,
Speaker 1: but on driving in general. And then for those dashers
Speaker 1: that do the most deliveries, top dashers, we give them
Speaker 1: a driving bonus for the number of miles they've driven
Speaker 1: on the platform. We think that will help, uh, you know,
Speaker 1: allay some of the hopefully temporary changes. Now some dashers
Speaker 1: are saying that's not enough for example, Uber is adding
Speaker 1: a fuel searcharge to every ride, and you know, with
Speaker 1: a Dasher UH benefit that you're adding, I believe you
Speaker 1: have to drive a certain amount of miles to access it.
Speaker 1: You know, why are you doing it this way? And
Speaker 1: is there anything more you can do? Yeah? I think
Speaker 1: I think our approach it. One of the things that
Speaker 1: we did I think that was really beneficial to us
Speaker 1: is we have a Dasher Advisory Council that is made
Speaker 1: up of key dashers that advise us on which approach
Speaker 1: is to take, and they actually helped create the system
Speaker 1: that we launched. Very important to note we did not
Speaker 1: add a consumer searcharge, and so one of the dangers
Speaker 1: of adding a consumer charge charges you decrease demand and
Speaker 1: therefore you decrease the economic opportunity for dashers. We chose
Speaker 1: not to do that. UM. We believe we've got the largest,
Speaker 1: most efficient system, and so we're trying to not put
Speaker 1: inflationary further inflationary pressure on the consumer side of the equation. Also,
Speaker 1: by focusing the economic advantage on the gas prices, we
Speaker 1: believe we're actually focusing on the problem UH and in
Speaker 1: helping dashers with longer distance deliveries, and so we we
Speaker 1: we think that that our model is actually best to
Speaker 1: tune for where the inflation is impacting the system. Today,
Speaker 1: Geordas President Christopher Payne there at shop Talk in Las Vegas.
Speaker 1: Coming up my conversation with Bolt CEO Madu cru Villa
Speaker 1: about their vision for shaking up the checkout experience and
Speaker 1: the controversy about the former CEOs storemy tweets. This is Bloomberg. Bolt,
Speaker 1: the e commerce company known for its one click checkout
Speaker 1: as big plans to take on Amazon, PayPal, and even
Speaker 1: Google in payments. The company is still a much smaller
Speaker 1: player in a larger market, but is making a lot
Speaker 1: of noise and trying to raise money at a fourteen
Speaker 1: billion dollar valuation. I spoke with Bolt CEO Majuku Villa
Speaker 1: earlier about how the company hopes to stand out from
Speaker 1: the competition. It's exciting that Bolt is able to get
Speaker 1: a lot of traction both with our investors, our partners,
Speaker 1: and customers. One of the big problems we are going
Speaker 1: after is conversion at checkout. For retailers. Seventy of shoppers
Speaker 1: drop out right at check out. That's eight if you're
Speaker 1: on mobile, that's almost a threllion dollar problem for US
Speaker 1: just in one year. So Bold is really going after
Speaker 1: solving that problem, helping retailers to convert those shoppers. They
Speaker 1: spend a lot of money on bringing on board. Now
Speaker 1: as I understand, it's mostly a tool though for small businesses.
Speaker 1: Right now, do you need Amazon and Walmart and Target
Speaker 1: and giant retailers to really compete right? So, right now,
Speaker 1: most of the businesses have to make a choice. Right
Speaker 1: if they want to give them a really convenient one
Speaker 1: click checkout experience, they either have to go to an
Speaker 1: ecosystem like Amazon, but if they want to give that
Speaker 1: experience by themselves, that doesn't exist today. So what Bolts
Speaker 1: is building is a shared shopper accounts network that can
Speaker 1: share all the shopper information across all different merchants. That's
Speaker 1: using Bolts. And do you see some of these bigger
Speaker 1: retailers coming on board and signing onto your vision. Absolutely recently,
Speaker 1: Fanatics pick Bolt as the solution for their one click
Speaker 1: needs for them to engage with the shoppers. And we
Speaker 1: are seeing several other customers like Forward twenty one already
Speaker 1: use Ball for um a long time now Badly Michka,
Speaker 1: there are several verticals we have like Solo stuff. Um
Speaker 1: so a lot of customers are using Bolts right now.
Speaker 1: We're successful. Now, Bolts, as I understand, has been trying
Speaker 1: to raise some money at a fourteen billion dollar valuation.
Speaker 1: We're going into a down market. What are the dynamics
Speaker 1: of that? Are you going to have to lower your expectations?
Speaker 1: The Bolt has been in a great place. We just
Speaker 1: raise money at eleven billion dollars on we call our
Speaker 1: series around and we are continuing to see more and
Speaker 1: more traction with the big customers signing up right now,
Speaker 1: we are also seeing all the partners signing up with Bolts.
Speaker 1: We signed the commerce we send, Magento Send, Prester Shop
Speaker 1: and Lord more partners are e commerce partners are signing
Speaker 1: up with Bolts because they want to provide a one
Speaker 1: click checkout experience and they are looking to board. So
Speaker 1: what are your fundraising conversations like now? I mean, are
Speaker 1: you having trouble raising money at a fourteen billion dollars
Speaker 1: Not at all. So what we are seeing right now
Speaker 1: is because of all the big customers, we are able
Speaker 1: to close and we have a very solid pipeline and
Speaker 1: the interest we are seeing from partners and UH you
Speaker 1: know everyone around us. What we are seeing is a
Speaker 1: higher interest for us and most of the in the
Speaker 1: fund market, people are looking for differentiated products. Like you know,
Speaker 1: there are so many players kind of doing the same
Speaker 1: product in slightly different form. Bolt is very unique. We
Speaker 1: are the only one that do what we do and
Speaker 1: what it is is the shared shopper accounts network and
Speaker 1: the difference what we provide is unlike having a separate
Speaker 1: button or creating an extra workflow on a merchant side.
Speaker 1: We integrate our product natively into the existing workflow of
Speaker 1: the shoppers. Now, you recently took over as CEO after
Speaker 1: being CTO and running operations for a period of time,
Speaker 1: not without some controversy. The CEO, former CEO and founder
Speaker 1: of Whole and Breslow gained some degree of infamy. Infamy
Speaker 1: with a series of tweets where he called out companies
Speaker 1: like Stripe, why Combinator, the quote unquote mob bosses of
Speaker 1: Silicon Valley? Do you agree with his point of view?
Speaker 1: Ryan is a great leader and a phenomenal visionary, like
Speaker 1: he can see things ahead of anybody else, and that
Speaker 1: he's one of the main reasons I came to Bold,
Speaker 1: and he and I have such a partnership, and that's
Speaker 1: the reason why he even asked me to take on
Speaker 1: to see or roll. He has a strong vision for
Speaker 1: not just Bold, but for the e commerce and all
Speaker 1: the founders. So he will continue to advance the path
Speaker 1: for Bolds, the founders, e commerce and everything, and I'm
Speaker 1: very aligned with him on all the pretty passionate defense
Speaker 1: they're boalto madu Villa here at chop Talk in Las Vegas.
Speaker 1: The full interview at Bloomberg dot com. We talked about
Speaker 1: the future of retail and fashion earlier with Savage x Fanci,
Speaker 1: but here's a different angle on that is resale. Thread
Speaker 1: Up is one of the largest online thrift stores and
Speaker 1: it is on a mission to make fashion more sustainable.
Speaker 1: Let's talk about all that and more with thread Up
Speaker 1: CEO and co founder James Ryan Hird. James, good to
Speaker 1: see you here, ex great to be here to talk
Speaker 1: to us about how the pandemic impacted the resale market.
Speaker 1: Did you see a shift away from fast fashion to
Speaker 1: second hand items and how quickly did that move. I
Speaker 1: think we were already seeing these trends before the pandemic.
Speaker 1: You really saw resale accelerating and then I think once
Speaker 1: we were all stuck at home and had nothing to do,
Speaker 1: you saw resale really catalyze in that moment. And so
Speaker 1: but I think it's actually something that happened in the pandemic,
Speaker 1: and I think it's something that's now sticking. So how
Speaker 1: fast then does it grow? I mean, we project the
Speaker 1: business is the industry will got a year uh for
Speaker 1: the next four or five years and um ultimately be
Speaker 1: about fifty billion dollars. How well is the fashion industry
Speaker 1: itself doing to help this transformation. I think they're getting started.
Speaker 1: You know, we're doing a lot of work with brands
Speaker 1: on how they can build take back programs and sustainability
Speaker 1: and circularity into their businesses. But I think it's early, um,
Speaker 1: and so I think ultimately we have to figure out
Speaker 1: how how brands can scale this because at the end
Speaker 1: of the day, they need to build big, sizeable opportunities.
Speaker 1: So you're partnering with retail brands like made Well, like Macy's.
Speaker 1: How are these how do these partnership work? Yeah, so
Speaker 1: we do two things for them. One, we power take
Speaker 1: back program, So if you're a made Well customer, we
Speaker 1: can take back all of your denim and all those
Speaker 1: products um and then we're also powering resell shops for them.
Speaker 1: So in a fully white labeled way, we now power
Speaker 1: a resell shop form made well, where you can shop
Speaker 1: all second hand product right from made well dot com.
Speaker 1: So what's the goal on board? Yeah? Yeah, I mean, look,
Speaker 1: we think we can ultimately power a thousand different brands
Speaker 1: resell experiences big and small, and we have some big
Speaker 1: brands launching in the next few months, so exciting to them.
Speaker 1: I think for brands and reseal, how key our consumers here?
Speaker 1: You know, I believe consumers are savier than they have
Speaker 1: ever been about sort of understanding their responsibility. But but
Speaker 1: what do you need for consumers to be more on
Speaker 1: board more a part of this? Yeah, I think what
Speaker 1: we're seeing in the data is consumers are really showing
Speaker 1: that if a brand is offering resale as part of
Speaker 1: their broader strategy so really thinking about circularity, they actually
Speaker 1: think that the brand is healthier, uh, and they're more
Speaker 1: excited to work with that brand. And so I think
Speaker 1: consumers really can help push brands to be more sustainable
Speaker 1: with you know, shopping. How much is gen z powering
Speaker 1: this transformation versus older consumers like maybe myself, who maybe
Speaker 1: gen z It seems like it's powering everything these days. Um,
Speaker 1: but look, I mean you know gen xers, I mean
Speaker 1: all of us, we are definitely part of this solution.
Speaker 1: We also have bigger, bigger wallets. And so the one
Speaker 1: thing to keep in mind is gen x and boomers
Speaker 1: have more more dollars to spend. But really the momentum
Speaker 1: and awareness is happening among the young people. There's also
Speaker 1: a competition in the fashion resale market. There's Posh Mark,
Speaker 1: there's the Real Real where what do you see us
Speaker 1: threat ups real differentiation here? Yeah, well it's a big market,
Speaker 1: so there's room from multiple, multiple winners. Um. The big
Speaker 1: thing for us is we take every brand. We take
Speaker 1: thirty five thousand brands versus a a real Real which
Speaker 1: takes maybe a hundred um and we do all the
Speaker 1: work for you. So unlike posh Mark, where you have
Speaker 1: to list all your items and do your fulfillment and everything,
Speaker 1: we take all the friction out of the experience. And
Speaker 1: so I think the differentiator is it's the easiest place
Speaker 1: to do resell. What are the global trends you see
Speaker 1: in this space? Were we just uh, we're just doing
Speaker 1: some data now on our resell report. We're seeing the
Speaker 1: European market be massive. Um, you're seeing trends in Japan.
Speaker 1: Japan has always had a very robust secondhand market. Germany
Speaker 1: in the same way. So it's a global opportunity. I think.
Speaker 1: I always tell people it's not a it's not a
Speaker 1: U S thing, it's a first world thing, um. And
Speaker 1: I think it's an aerial watch. So paint the picture
Speaker 1: for me five years out future casting how and how
Speaker 1: different does the industry loan. I think people will be
Speaker 1: shocked that every store, every brand that they work with
Speaker 1: has secondhand, has resale as part of what they do.
Speaker 1: And I think this is going to accelerate over the
Speaker 1: next few years and it'll just be part of what
Speaker 1: we do. And what are going to be the biggest
Speaker 1: challenges to getting there, Uh, the supply chain and logistics
Speaker 1: and just the infrastructure to bring resale to the masses.
Speaker 1: It's hard, um, and I think that's worth threatened. Will
Speaker 1: be the pioneer. So what needs to change? Oh, all
Speaker 1: the processes and technowlogy to process the volume of goods. Right,
Speaker 1: we estimate there's about seventeen billion pieces of clothing out
Speaker 1: there every year, So that's a lot of supply chain
Speaker 1: UH infrastructure to build. All right, well, we'll be watching
Speaker 1: how you navigate this transformation and help usher us all along.
Speaker 1: Threat up CEO James Ryan Heart, good to have you
Speaker 1: back here, Thanks for having Michelle. And that does it
Speaker 1: for this edition of Bloomberg Technology Live from Shop Talk.
Speaker 1: Don't forget to check out our new podcast. You can
Speaker 1: find it on the terminal and of course Apple, Spotify,
Speaker 1: I Heeart, wherever you get your podcast. That's all for
Speaker 1: today from me in Las Vegas. Check out more interviews
Speaker 1: at Bloomberg dot com. I'm Emily Chang. This is Bloomberg
Speaker 1: as unbent aarti Nasality