WEBVTT - Tech in Focus, A Conversation with Uber CEO Dara Khosrowshahi 

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>Welcome to the Daybreak Asia podcast. I'm Doug Chrisner. Tech

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<v Speaker 2>is once again dominating the conversation in markets, especially as

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<v Speaker 2>it relates to AI in Japan. Shares and soft banker

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<v Speaker 2>trading higher on where the company is studying potential acquisitions,

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<v Speaker 2>including the data center operator SWITCH. We are told SoftBank

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<v Speaker 2>has held discussions with leadership at Switch and the company's

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<v Speaker 2>been conducting some due diligence on Switch. Stateside, we had

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<v Speaker 2>some tech weakness that seemed to be the blemish on

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<v Speaker 2>an otherwise record setting session, with the S ANDP and

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<v Speaker 2>the Dow Industrial Average each closing at all time highs. However,

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<v Speaker 2>the Nasdaq comp was in retreat thanks to a drop

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<v Speaker 2>in Oracle. Those shares were down nearly eleven percent on

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<v Speaker 2>concern over Oracle's plans for vast capital outlays on infrastructure.

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<v Speaker 2>For a closer look at the price action, I'm joined

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<v Speaker 2>by Steven Schoenfeld. He is the CEO of Market Vector Indexes. Stephen,

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<v Speaker 2>thank you so much for making time to chat with me.

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<v Speaker 2>What did you make of the price action today?

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<v Speaker 3>It was encouraging despite Oracles drop and holding the nastac back.

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<v Speaker 3>I think, you know, there's definitely rotation. Value stocks are strong,

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<v Speaker 3>small cap is actually leading, and you know, we didn't

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<v Speaker 3>have a record in Nasdaq, but we didn't in the

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<v Speaker 3>Dow and S and P. Also, the transports are at

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<v Speaker 3>new highs they haven't been in almost two years, so

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<v Speaker 3>it feels like a healthy market. The jitters are mostly

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<v Speaker 3>in tech, just like you just said with Broadcom.

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<v Speaker 2>So are they justified though? I mean, if you look

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<v Speaker 2>at what Broadcom had to say, EPs for the quarter

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<v Speaker 2>was above estimates for the latest quarter. However, the outlook

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<v Speaker 2>for revenue where AI is concerned, maybe did not meet

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<v Speaker 2>the most lofty expectations. Do we need to discuss valuations here?

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<v Speaker 3>I think we can, because you know, tech is still

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<v Speaker 3>priced to perfection, and US and developed markets in general

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<v Speaker 3>are very very highly valued historically, right, So the talking

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<v Speaker 3>points I sent you, you know, tell the story. Even

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<v Speaker 3>though emerging markets have had a good year, they're still

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<v Speaker 3>dramatically cheaper than developed markets, and US is really the

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<v Speaker 3>tip of the sphere of developed market valuations.

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<v Speaker 2>So, Steven, if you're optimistic on the US equity market

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<v Speaker 2>going into the new year, I'm curious about how much

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<v Speaker 2>of that is predicated on much easier FED policy. Just

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<v Speaker 2>the other day we had the Fed maintaining its outlook

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<v Speaker 2>for just one rate cut in twenty twenty six. That

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<v Speaker 2>despite the fact that the swaps market is sticking to

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<v Speaker 2>the bet for two rate cuts in the new year.

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<v Speaker 2>What is your view on the outlook for rates?

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<v Speaker 3>You know, I think they'll be a new FED president,

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<v Speaker 3>and I think that will have some influence. The market

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<v Speaker 3>reacted well to the you know, it was like a

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<v Speaker 3>soft talkish kind of press conference by Powell. So I

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<v Speaker 3>think I do think the market will be okay with either.

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<v Speaker 3>I think the fundamentals of earnings and that the US

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<v Speaker 3>economy is not as weak as people feared, even as

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<v Speaker 3>recently as a month ago, is what's holding up the market.

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<v Speaker 3>You would not you would not see small cap and

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<v Speaker 3>value performing the way they are if that was the case.

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<v Speaker 3>If that wasn't the case.

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<v Speaker 2>So you mentioned emerging markets a moment ago. What's your

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<v Speaker 2>outlook for EM in twenty twenty six?

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<v Speaker 3>Broadly speaking, So, obviously emerging markets are heterogeneous. Different markets

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<v Speaker 3>show greater or less potential, but as a whole, the

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<v Speaker 3>valuations in emerging markets are really attractive. The forward pe

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<v Speaker 3>is about half of the US and developed markets. Cyclically

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<v Speaker 3>adjusted PE or CAPE is also in the twelve to

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<v Speaker 3>thirteen compared to twenty four to twenty five for developed markets.

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<v Speaker 3>And then you look at some specific markets. Brazil has

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<v Speaker 3>performed very well despite being hit with US tariffs. India

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<v Speaker 3>is one of the few large emerging markets that is flat,

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<v Speaker 3>and I believe it has huge potential. And Vietnam has

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<v Speaker 3>had a great year, almost up to fifty percent, but

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<v Speaker 3>it has a structural change coming up next year. The

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<v Speaker 3>potential to be graduate well, not the potential the reality

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<v Speaker 3>of being graduated to emerging market status by the Footsea benchmark.

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<v Speaker 2>Now, the direction of EM, as we know, often comes

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<v Speaker 2>down to the relative strength or weakness of the US dollar.

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<v Speaker 2>Today it was a story of dollar weakness, and the

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<v Speaker 2>Bloomberg Dollar Spot index right now is on pace for

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<v Speaker 2>its third weekly decline. If we can assume the dollar

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<v Speaker 2>remains on the back foot, does that necessarily create more

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<v Speaker 2>bullishness for you when it comes to EM.

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<v Speaker 3>Yeah, that is the case. Emerging market performance is generally

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<v Speaker 3>helped by a weaker dollar as well as Emerging market

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<v Speaker 3>currencies in general have been strong this year, and we've

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<v Speaker 3>had a role reversal the fiscally responsible countries around the world.

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<v Speaker 3>In general, it's more emerging markets than developed markets, so

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<v Speaker 3>it is the market speaking about the relative health of

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<v Speaker 3>emerging markets.

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<v Speaker 2>In my opinion, what's your biggest concern is we go

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<v Speaker 2>into twenty twenty six.

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<v Speaker 3>To start their geopolitical concerns are not only not diminish,

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<v Speaker 3>but they've increased. We now have the possibility of a

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<v Speaker 3>hot war in the Caribbean as well as continuation of

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<v Speaker 3>the Ukraine Russia War. I do expect the Middle East

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<v Speaker 3>to be somewhat attenuated compared to the last two years.

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<v Speaker 3>I believe the ceasefire will hold, but trade tensions will

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<v Speaker 3>continue to be a factor. The US and China are

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<v Speaker 3>seeming to signal mutual understanding and accommodation, so that could

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<v Speaker 3>be a positive. And it's a midterm election year, there's

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<v Speaker 3>a lot of unpredictability about that and what the White

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<v Speaker 3>House will do in order to try to maintain a

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<v Speaker 3>Republican control of the House and Senate.

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<v Speaker 2>So you've highlighted a few of the risk and given

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<v Speaker 2>those risks, maybe you could address some of the more

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<v Speaker 2>defensive or perhaps hedging strategies that you're using.

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<v Speaker 4>Right now.

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<v Speaker 3>Sure, well, as a global index provider.

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<v Speaker 5>We.

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<v Speaker 3>Encourage investors to use our indexes and make their own decisions,

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<v Speaker 3>But what we really strive to do is create asset

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<v Speaker 3>class choices for our investors. So, for example, gold and

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<v Speaker 3>gold mining stocks as well as silver and silver mining

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<v Speaker 3>stocks have been an excellent hedge this year. I do

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<v Speaker 3>think the trends in metals and now coppers coming up

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<v Speaker 3>are going to continue to be of value. In contrast,

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<v Speaker 3>crypto has not added value to anyone's portfolios this year.

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<v Speaker 3>It could be a good time to allocate just a

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<v Speaker 3>few percentage to diversified crypto. And then finally, emerging markets

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<v Speaker 3>broadly defined are definitely a hedge against debt and potential

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<v Speaker 3>overvaluation and develop market.

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<v Speaker 2>Steve will leave it there, Thank you so much. Steven

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<v Speaker 2>Schoenfeld is the CEO at Market Vectors in dex Is

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<v Speaker 2>joining us here on the Daybreak Asia podcast. Welcome back

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<v Speaker 2>to the Daybreak Asia Podcast. I'm Doug Krisner. Uber is

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<v Speaker 2>looking for some new avenues of growth in the Asia Pacific,

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<v Speaker 2>especially in Japan and Hong Kong, and the focus of

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<v Speaker 2>the strategy will involve self driving cars. Uber CEO Derek

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<v Speaker 2>Kasper Shahi is in the region. He spoke with Bloomberg's

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<v Speaker 2>Annabelle Droolers.

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<v Speaker 5>It's been a very busy week for you today if

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<v Speaker 5>you've been Japan, Korea, Taiwan, Hong Kong. What's doing this

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<v Speaker 5>sort of standout so far? The key takeaways, well, the.

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<v Speaker 1>Key takeaways for US is growth the Apak market and

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<v Speaker 1>in particular the North Asia markets as well. They are

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<v Speaker 1>huge growth markets for US. And if you look, for example,

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<v Speaker 1>in the rideshare business, over thirty percent of our global

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<v Speaker 1>first trips coming into the category come from the Apak region.

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<v Speaker 1>The area is growing very quickly, including taxi as well,

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<v Speaker 1>which is actually one of our newest products on the platform.

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<v Speaker 1>So for me coming here, seeing the teams, meeting with

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<v Speaker 1>local business people and regulators and talking about how we

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<v Speaker 1>can be part of the future growth of the region

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<v Speaker 1>is really what my agenda is.

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<v Speaker 5>Early this year you also put out a statement on

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<v Speaker 5>the robot taxi push as well, and so the Middle

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<v Speaker 5>East and Asia were the markets for twenty twenty five

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<v Speaker 5>to launch, and we've seen of course that initial deployment

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<v Speaker 5>in the Middle East already.

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<v Speaker 1>What's happening on the Asia side, well, lots of discussions.

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<v Speaker 1>On the Asia side, I think what's really important is

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<v Speaker 1>to set up a regulatory framework to go forward. For example,

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<v Speaker 1>Hong Kong has various trials and pilots going on, and

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<v Speaker 1>in many other markets, we're talking to regulators about how

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<v Speaker 1>we can be a part of shaping ride share and

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<v Speaker 1>autonomous ride shair going forward. The technol ology is absolutely

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<v Speaker 1>getting there. These are the robot driver. It doesn't get tired,

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<v Speaker 1>doesn't get distracted, and we very much look forward to

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<v Speaker 1>working with various authorities to introduce rod shair into the markets.

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<v Speaker 1>We're now live in four markets now as we speak,

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<v Speaker 1>in the US and in the Middle East, and I

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<v Speaker 1>expect to be in ten plus markets by next year,

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<v Speaker 1>and we want those markets to be in the Asia

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<v Speaker 1>Pacific region as well.

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<v Speaker 5>Where then, in Asia do you think is the most

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<v Speaker 5>likely place.

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<v Speaker 1>We'll see I think that certainly Japan has great potential,

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<v Speaker 1>you know, with.

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<v Speaker 5>They are behind on their regulation.

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<v Speaker 1>They are behind in their regulation, but I think that

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<v Speaker 1>they also understand that with an aging population, there's a

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<v Speaker 1>real need for transportation, not just in the large cities

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<v Speaker 1>but in.

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<v Speaker 4>The rural areas.

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<v Speaker 1>And for example, I experienced that personally going to Kaga

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<v Speaker 1>city and where we have communal rod share and kind

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<v Speaker 1>of took a ride share trip and understood what the

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<v Speaker 1>needs are there. So we're talking with various countries regulatory authorities.

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<v Speaker 1>I think Japan is going to be part of it.

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<v Speaker 1>I certainly hope that Hong Kong is going to be

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<v Speaker 1>a part of it. Australia, where we were just talking about,

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<v Speaker 1>is a huge market for us. So we're having those

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<v Speaker 1>dialogues and I think that the picture will shape up

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<v Speaker 1>over the next two years because the technology is definitely

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<v Speaker 1>getting there.

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<v Speaker 5>Speaking of Hong Kong, because we do see the trials

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<v Speaker 5>that are underweight and they're being conducted by Baydu's Apollogo program.

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<v Speaker 5>Would you be looking to work with them on that

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<v Speaker 5>or are you working with them on that?

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<v Speaker 1>By Do is a partner of ours, so we partner

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<v Speaker 1>with Baidun we ride for example in Abadhabi and expanding

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<v Speaker 1>their ponies another partner of ours. So we absolutely expect

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<v Speaker 1>to be on the road with all three of them.

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<v Speaker 1>When you look at Chinese autonomous technology and the development there,

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<v Speaker 1>they are one of the leaders on a global basis,

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<v Speaker 1>and for us, we want to partner with a whole

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<v Speaker 1>autonomous ecosystem to bring this technology to reality.

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<v Speaker 5>So, just to clarify, you're expecting to ramp up the

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<v Speaker 5>markets that you're into ten autonamous driving markets ten plus

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<v Speaker 5>yes by next year, and you anticipate that those could

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<v Speaker 5>also come from the Asia region.

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<v Speaker 1>They could come from the Asia region, and they could

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<v Speaker 1>also involve some of the partners that we talked about.

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<v Speaker 4>By do we ride a pony?

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<v Speaker 5>And if not Hong Kong, then where else? Do you

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<v Speaker 5>think in Japan? As I said, it's really is behind

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<v Speaker 5>on the regulatory.

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<v Speaker 1>Side, every major market in which we operate, we are

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<v Speaker 1>having discussions with autonomous partners and then most importantly regulators

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<v Speaker 1>as to how we can introduce autonomous either in a

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<v Speaker 1>pilot way or within some restricted operational domain. You know,

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<v Speaker 1>everyone wants this product. It's a product that's delightful in

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<v Speaker 1>markets for example, in Atlanta, in Austin and Abu Dhabi.

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<v Speaker 4>Our consumers love the product.

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<v Speaker 1>They feel safe, and this technology is hitting primetime now

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<v Speaker 1>in every major city in the world.

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<v Speaker 4>To be a part of that.

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<v Speaker 5>Revolution, I do find it interesting by in particular with

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<v Speaker 5>the Apollogo program, because they are conducting the trials here,

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<v Speaker 5>they're already starting to remove the human drivers across some

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<v Speaker 5>of their markets in mainland Shiner and the way that

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<v Speaker 5>you can get a buy to apologo ride in mainland

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<v Speaker 5>China is often through a buy do control platform. Do

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<v Speaker 5>you see that risk of them maybe pursuing that strategy

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<v Speaker 5>here instead of teaming up with you on it.

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<v Speaker 1>I don't think it's going to be black and white

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<v Speaker 1>in terms of the strategy. I think that there could

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<v Speaker 1>be many hybrid approaches, and you know, I compare it

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<v Speaker 1>to the food delivery business. For example, we work with

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<v Speaker 1>Starbucks or McDonald's that has a direct app and customers

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<v Speaker 1>go direct to get the food there. At the same

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<v Speaker 1>time they also participate in the marketplace. So I think

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<v Speaker 1>the autonomous ecosystem will be the same way. There will

0:13:53.120 --> 0:13:58.439
<v Speaker 1>be some direct kind of some customers going direct, and

0:13:58.600 --> 0:14:01.160
<v Speaker 1>we think that with the Uber market place, we can

0:14:01.200 --> 0:14:05.480
<v Speaker 1>bring the kind of demand that over two hundred million

0:14:05.600 --> 0:14:09.520
<v Speaker 1>monthly active platform customers can bring to autonomous, so that

0:14:09.640 --> 0:14:12.880
<v Speaker 1>we get those cars on the road and incredibly busy

0:14:12.920 --> 0:14:14.199
<v Speaker 1>with very high utilization.

0:14:14.920 --> 0:14:17.160
<v Speaker 5>Let's talk about the US as well, because you're partnering

0:14:17.240 --> 0:14:21.520
<v Speaker 5>there with Weimo as well in certain cities. Perfect partner, Yeah,

0:14:21.600 --> 0:14:24.240
<v Speaker 5>terrific partnering. Actually in the latest earnings, I think you

0:14:24.280 --> 0:14:27.720
<v Speaker 5>said excellent as well. But in some places, Weimo is

0:14:27.760 --> 0:14:30.840
<v Speaker 5>expanding into new cities without you and becoming a direct competitor.

0:14:30.880 --> 0:14:34.240
<v Speaker 5>And that's something that was highlighted even by Webbush earlier

0:14:34.240 --> 0:14:37.040
<v Speaker 5>this week as being a potential risk for your business

0:14:37.040 --> 0:14:38.600
<v Speaker 5>next year. How are you assessing that.

0:14:38.960 --> 0:14:41.720
<v Speaker 1>Well, I think it's the same example that I gave

0:14:41.720 --> 0:14:43.760
<v Speaker 1>you that in some ways the McDonald's app is a

0:14:43.760 --> 0:14:47.080
<v Speaker 1>competitor to Uber Eats and the two can coexist. And

0:14:47.120 --> 0:14:51.440
<v Speaker 1>it's very very early in the development of autonomous we

0:14:51.520 --> 0:14:53.720
<v Speaker 1>have to make sure that we have access to autonomus

0:14:53.720 --> 0:14:57.480
<v Speaker 1>technology in the major cities that have the right regulatory

0:14:57.720 --> 0:15:01.360
<v Speaker 1>framework to allow autonomous and we're very confident as we

0:15:01.400 --> 0:15:03.200
<v Speaker 1>look at our roadmap and we look at our partners.

0:15:03.200 --> 0:15:07.400
<v Speaker 1>We have over twenty partners autonomous partners globally that we

0:15:07.440 --> 0:15:12.000
<v Speaker 1>will have access to autonomous technologies in the large cities

0:15:12.080 --> 0:15:14.200
<v Speaker 1>and markets that really count.

0:15:14.800 --> 0:15:17.040
<v Speaker 5>When you say access to twenty different partners, do you

0:15:17.080 --> 0:15:19.080
<v Speaker 5>think that that is the way that the industry will

0:15:19.080 --> 0:15:23.160
<v Speaker 5>continue to evolve or do you expect consolidation on the

0:15:23.240 --> 0:15:26.720
<v Speaker 5>robotaxi side as well, or the autonomous driving software.

0:15:26.360 --> 0:15:28.840
<v Speaker 1>Side we're seeing is this is a trillion dollar plus

0:15:28.880 --> 0:15:33.840
<v Speaker 1>market in terms of autonomous mobility. I think delivery eventually

0:15:33.920 --> 0:15:36.520
<v Speaker 1>will be of a similar size. And when you have

0:15:36.600 --> 0:15:39.640
<v Speaker 1>markets that are that large, you usually don't have winner

0:15:39.640 --> 0:15:40.120
<v Speaker 1>take calls.

0:15:40.240 --> 0:15:43.680
<v Speaker 4>It's the same way with these LLM models.

0:15:43.680 --> 0:15:45.600
<v Speaker 1>There are many to choose from, whether it's an open

0:15:45.640 --> 0:15:48.400
<v Speaker 1>AI or a Gemini, and I think the same will

0:15:48.440 --> 0:15:51.720
<v Speaker 1>be true of autonomous It's an exciting technology, but there

0:15:51.760 --> 0:15:54.640
<v Speaker 1>are many players getting to the finish line. We just

0:15:54.720 --> 0:15:57.960
<v Speaker 1>have to make sure that the players that we work

0:15:58.000 --> 0:16:01.680
<v Speaker 1>with are safe and that again we're working with the

0:16:01.760 --> 0:16:03.320
<v Speaker 1>regulators in constructive manner.

0:16:04.280 --> 0:16:06.440
<v Speaker 5>Part of the strength of Uber, of course is your

0:16:06.520 --> 0:16:09.320
<v Speaker 5>data mode and just how much information you're collecting on

0:16:09.440 --> 0:16:12.080
<v Speaker 5>users and in the rise they're taking and their behavior patterns.

0:16:12.560 --> 0:16:15.200
<v Speaker 5>But other competitors in the market, like Way more like

0:16:15.240 --> 0:16:18.800
<v Speaker 5>Tests are still continuing to build up that infrastructure as well.

0:16:18.880 --> 0:16:22.480
<v Speaker 5>So how secure do you see that data mode being?

0:16:22.720 --> 0:16:27.080
<v Speaker 1>Well, there's nothing secure about the technology space. There's always innovation,

0:16:27.520 --> 0:16:30.440
<v Speaker 1>and so we just have to move fast and isay.

0:16:30.480 --> 0:16:34.760
<v Speaker 1>Actually the more important factor in Uber is our global coverage.

0:16:34.920 --> 0:16:37.760
<v Speaker 1>We are operating in seventy countries. The demand that we're

0:16:37.800 --> 0:16:41.800
<v Speaker 1>bringing every day, We've got millions of consumers opening our

0:16:41.880 --> 0:16:44.720
<v Speaker 1>app all over the world, and we can point that

0:16:44.760 --> 0:16:49.160
<v Speaker 1>demand not just to our current driver partners and delivery partners,

0:16:49.440 --> 0:16:52.040
<v Speaker 1>but as autonomous comes in to autonomous partners.

0:16:52.400 --> 0:16:53.320
<v Speaker 4>You know, these are.

0:16:53.320 --> 0:16:56.360
<v Speaker 1>Very expensive cars, it's a very expensive technology, and you

0:16:56.480 --> 0:17:01.520
<v Speaker 1>want to amortize the upfront, spend it as many transactions

0:17:01.560 --> 0:17:04.840
<v Speaker 1>as possible. And Uber certainly is the leader around the

0:17:04.880 --> 0:17:07.080
<v Speaker 1>world in terms of the demand that we can point

0:17:07.119 --> 0:17:08.280
<v Speaker 1>to our autonomous partners.

0:17:08.800 --> 0:17:11.280
<v Speaker 5>Yeah, when you talk about a capital and just general

0:17:11.400 --> 0:17:14.520
<v Speaker 5>capital raising plan, an interesting move that you made earlier

0:17:14.520 --> 0:17:17.280
<v Speaker 5>this year was raising one point two billion dollars by

0:17:17.680 --> 0:17:21.000
<v Speaker 5>selling those exchangeable senior bonds linked to your stake in

0:17:21.040 --> 0:17:24.560
<v Speaker 5>Aurora for a few details in that one, but do

0:17:24.640 --> 0:17:26.720
<v Speaker 5>you see yourself doing that again in twenty twenty six

0:17:26.760 --> 0:17:29.560
<v Speaker 5>something similar again just to it was really seen as

0:17:29.560 --> 0:17:32.240
<v Speaker 5>an innovative and creative way I guess to raise money.

0:17:32.280 --> 0:17:35.000
<v Speaker 1>Well, we have a very creative team. I think the

0:17:35.000 --> 0:17:38.480
<v Speaker 1>good news for us is we're now free cash flowing

0:17:39.040 --> 0:17:41.399
<v Speaker 1>close to ten billion dollars, and we expect that to

0:17:42.240 --> 0:17:45.359
<v Speaker 1>increase substantially over the next couple of years. So through

0:17:45.400 --> 0:17:48.600
<v Speaker 1>a combination of the substantial free cashroow that we have

0:17:48.760 --> 0:17:51.520
<v Speaker 1>and also monetizing some of the equity stakes that we

0:17:51.560 --> 0:17:54.040
<v Speaker 1>have in other companies. Now it's over ten billion dollars.

0:17:54.359 --> 0:17:56.639
<v Speaker 1>We think we have plenty of capital to be able

0:17:56.680 --> 0:18:01.000
<v Speaker 1>to continue to invest in our autonomous technology part or

0:18:01.880 --> 0:18:05.800
<v Speaker 1>building out a fleet presence and or vehicles across the

0:18:05.840 --> 0:18:09.199
<v Speaker 1>autonomous ecosystem so that we can continue to be a

0:18:09.280 --> 0:18:10.000
<v Speaker 1>leader in the space.

0:18:10.400 --> 0:18:13.199
<v Speaker 5>You're well capitalized. That's sort of taking away from that,

0:18:13.240 --> 0:18:15.760
<v Speaker 5>But would you look to do something similar with your

0:18:15.760 --> 0:18:19.280
<v Speaker 5>stakes in DD and GRAB in particular.

0:18:19.600 --> 0:18:20.800
<v Speaker 4>I think we'll be opportunistic.

0:18:20.960 --> 0:18:25.679
<v Speaker 1>Certainly, we love GRAB and it's a strategic partner of ours.

0:18:26.040 --> 0:18:28.400
<v Speaker 1>D D of course hasn't gone public yet, so to

0:18:28.440 --> 0:18:31.040
<v Speaker 1>the extent we have an opportunity, we will look to.

0:18:31.400 --> 0:18:34.399
<v Speaker 1>You know, we call it recycling the investments that we've made.

0:18:34.640 --> 0:18:36.480
<v Speaker 1>But at the same time, we don't need to do

0:18:36.520 --> 0:18:38.960
<v Speaker 1>that because the company continues.

0:18:38.520 --> 0:18:40.520
<v Speaker 4>To throw off cash flow. We have a lot of

0:18:40.560 --> 0:18:41.480
<v Speaker 4>options ahead of us.

0:18:42.600 --> 0:18:47.240
<v Speaker 5>I want to talk about also the sparsa geography's strategy

0:18:47.320 --> 0:18:49.800
<v Speaker 5>and the importance of that. Can you maybe spell it

0:18:49.840 --> 0:18:52.200
<v Speaker 5>out a little bit for people exactly what you mean

0:18:52.240 --> 0:18:54.520
<v Speaker 5>by that because it is interesting, as you make sort

0:18:54.520 --> 0:18:57.639
<v Speaker 5>of a push into lots of different centers, it actually

0:18:57.680 --> 0:19:01.520
<v Speaker 5>seems to be less the centers that are doing well

0:19:01.560 --> 0:19:02.440
<v Speaker 5>for you as a company.

0:19:02.520 --> 0:19:05.000
<v Speaker 1>Well, the urban centers continue to grow. But I do

0:19:05.040 --> 0:19:07.560
<v Speaker 1>think that we as I reflect on Uber's growth, we

0:19:07.680 --> 0:19:10.320
<v Speaker 1>used to be a big city company, and what we're

0:19:10.320 --> 0:19:15.280
<v Speaker 1>seeing is there's enormous demand for both mobility and delivery

0:19:15.320 --> 0:19:18.600
<v Speaker 1>outside of the large cities, in the more sparse markets,

0:19:18.960 --> 0:19:24.000
<v Speaker 1>the suburbs, et cetera. And our growth in the sparse

0:19:24.040 --> 0:19:29.119
<v Speaker 1>markets is anywhere from two to three times faster for

0:19:29.200 --> 0:19:31.840
<v Speaker 1>mobility and delivery than in the big urban markets, even

0:19:31.880 --> 0:19:34.560
<v Speaker 1>though the urban markets are growing at the same time.

0:19:35.240 --> 0:19:39.560
<v Speaker 1>Some governments actually need access to mobility. You know, there

0:19:39.640 --> 0:19:43.200
<v Speaker 1>isn't great taxi service in some of these rural destinations

0:19:43.240 --> 0:19:48.600
<v Speaker 1>in Japan, bus services is also not readily available, so

0:19:49.160 --> 0:19:52.199
<v Speaker 1>you know, as Uber, obviously we run a business, but

0:19:52.280 --> 0:19:55.000
<v Speaker 1>we want to be there for stakeholders and we want

0:19:55.040 --> 0:19:58.240
<v Speaker 1>to help address some of the needs of the government

0:19:59.040 --> 0:20:03.560
<v Speaker 1>in Japan. Particular, rural transportation is a real need, and

0:20:03.600 --> 0:20:06.200
<v Speaker 1>we wanted to step up and give back to Japanese

0:20:06.200 --> 0:20:08.359
<v Speaker 1>society because that market has been such a great market

0:20:08.359 --> 0:20:11.840
<v Speaker 1>for us, and that's what communal ride share in these

0:20:11.920 --> 0:20:15.120
<v Speaker 1>rural destinations like Carga City is all about. I experienced

0:20:15.160 --> 0:20:18.280
<v Speaker 1>it myself. The countryside is absolutely beautiful and you know,

0:20:18.920 --> 0:20:22.280
<v Speaker 1>our driver was so thankful. Assually runs a soba shop

0:20:22.320 --> 0:20:24.760
<v Speaker 1>that's on Uber Eats as well. He delivers for Uber Eats.

0:20:25.400 --> 0:20:27.600
<v Speaker 1>He's a part of our ecosystem and it's amazing to

0:20:27.600 --> 0:20:29.760
<v Speaker 1>see that happen not just in the big cities but

0:20:29.920 --> 0:20:32.359
<v Speaker 1>also in a lot of small cities and rural destinations.

0:20:32.400 --> 0:20:34.959
<v Speaker 5>What do you make then for India in particular, because

0:20:35.119 --> 0:20:37.840
<v Speaker 5>of course you big competitor there is rapid of and

0:20:37.880 --> 0:20:42.159
<v Speaker 5>then they've been very successful with a slightly different operating model,

0:20:42.160 --> 0:20:45.000
<v Speaker 5>but including going down into the lower tier or solar

0:20:45.040 --> 0:20:48.480
<v Speaker 5>tier cities, how do you also stay competitive there? And

0:20:48.520 --> 0:20:52.520
<v Speaker 5>does that sparse a geography strategy also fit for India?

0:20:52.680 --> 0:20:54.240
<v Speaker 4>Yeah, very much so so with India.

0:20:54.320 --> 0:20:57.439
<v Speaker 1>Really the fastest growing part of the Indian market is

0:20:57.800 --> 0:21:01.040
<v Speaker 1>two wheelers and three wheelers, and the business man is different.

0:21:01.080 --> 0:21:03.760
<v Speaker 1>Actually it's not a commission model, but it's actually a

0:21:03.760 --> 0:21:07.760
<v Speaker 1>subscription model as well. Rapido's a real upstart there, but

0:21:07.920 --> 0:21:10.480
<v Speaker 1>over the past months we've been pushing back against them,

0:21:11.000 --> 0:21:14.720
<v Speaker 1>and India continues to be a hugely promising market for us,

0:21:14.760 --> 0:21:17.159
<v Speaker 1>so we're very happy about the recent results that we're seeing.

0:21:17.200 --> 0:21:21.320
<v Speaker 2>That is Uber CEO Derek Koswershahi speaking with Bloomberg's Annabelle

0:21:21.359 --> 0:21:24.680
<v Speaker 2>Droolers in Hong Kong here on the Daybreak Asia Podcast.

0:21:28.080 --> 0:21:31.480
<v Speaker 2>Thanks for listening to today's episode of the Bloomberg Daybreak

0:21:31.640 --> 0:21:35.000
<v Speaker 2>Asia Edition podcast. Each weekday, we look at the story

0:21:35.080 --> 0:21:39.399
<v Speaker 2>shaping markets, finance, and geopolitics in the Asia Pacific. You

0:21:39.440 --> 0:21:43.560
<v Speaker 2>can find us on Apple, Spotify, the Bloomberg Podcast YouTube channel,

0:21:43.680 --> 0:21:46.679
<v Speaker 2>or anywhere else you listen. Join us again tomorrow for

0:21:46.800 --> 0:21:50.320
<v Speaker 2>insight on the market moves from Hong Kong to Singapore

0:21:50.720 --> 0:21:54.480
<v Speaker 2>and Australia. I'm Doug Chrisner, and this is Bloomberg