Invest Like the Best with Patrick O'Shaughnessy
00:33:53 · Dara Khosrowshahi
[00:33:53] S2: It's happening as we speak. Any of the OEMs, the traditional OEMs that we're talking to are now seeing that L4 driving is absolutely a reality that is much closer than they think. And in seeing the services and how popular they are with consumers, they are investing in L4 ready systems. So I think you'll see the traditional players get there over the next two to four years. Right now, the cars are being manufactured in the hundreds and the thousands. It'll get to the tens of thousands. It'll get to the hundreds of thousands. Each of these vehicles probably drives three to four times what a human does. The efficiency and efficacy of one AV vehicle is substantially higher than a human based on how much humans drive as well. And then we are seeing newer generation companies coming in, the Foxcons. Now, the Foxcons exist in China. The Chinese players in terms of their capabilities and bill of materials is incredibly, incredibly impressive, and we need that kind of a low cost player in the Western Hemisphere. It's being worked on, but we're not there yet. The Chinese capabilities in terms of manufacturing, both in terms of quality and cost at this point is unrivaled.
00:35:07 · Patrick O'Shaughnessy, Dara Khosrowshahi
[00:35:07] S0: Can you teach me about drones? I'll never forget that Amazon video from ten years ago where it feels like, oh my god. The future's happening. It's coming. My drone's gonna be my sandwich in five minutes or whatever, and no drone has yet to show up at my house. What's the story with the technology? I've watched ZipLine very closely. I think that's a really interesting company. It seems obvious, and yet it hasn't happened. And I'm curious if you could teach us why [00:35:30] S2: that is. The biggest issue is battery density and the ability of essentially battery to lift itself and then lift the payload and what that payload looks like, and then the requisite range and recharging needs of those drones as well. Jobia is building drones for people. That's happening. And I think drones for food and other grocery are going to start hitting real scale over the next two to five years. It is going to cost more than a human delivery to start with. But the ramp of the technology in terms of payloads being larger, in terms of being able to operate in whatever weather there is and then being able to very, very accurately get you a payload right in front of your house, all of it is moving in the right direction. So is it going to be a big part of our lives two years from now? No, But five to ten years from now, it's going to become more and more normal.
00:35:30 · Dara Khosrowshahi, Patrick O'Shaughnessy
[00:35:30] S2: that is. The biggest issue is battery density and the ability of essentially battery to lift itself and then lift the payload and what that payload looks like, and then the requisite range and recharging needs of those drones as well. Jobia is building drones for people. That's happening. And I think drones for food and other grocery are going to start hitting real scale over the next two to five years. It is going to cost more than a human delivery to start with. But the ramp of the technology in terms of payloads being larger, in terms of being able to operate in whatever weather there is and then being able to very, very accurately get you a payload right in front of your house, all of it is moving in the right direction. So is it going to be a big part of our lives two years from now? No, But five to ten years from now, it's going to become more and more normal. [00:36:26] S0: I'm always really interested in the regional differences as well. I'm curious what you've learned watching AV start to happen in The US versus Europe versus The Mideast and anywhere else that you've had the experience. What is regional differences teaching you?
00:36:26 · Patrick O'Shaughnessy, Dara Khosrowshahi
[00:36:26] S0: I'm always really interested in the regional differences as well. I'm curious what you've learned watching AV start to happen in The US versus Europe versus The Mideast and anywhere else that you've had the experience. What is regional differences teaching you? [00:36:37] S2: Middle East is going fast. So The Middle East, especially if you look at Abu Dhabi, Dubai, Saudi Arabia, they are on it. The regulators are very entrepreneurial. They want to lean into new technology. So you're going to see those services. They are happening today. No vehicle operators in Abu Dhabi, Dubai. The US is certainly happening. The Californians of the world, Texas of the world, but we want to make sure kind of the right discussions are happening at a regulatory level. It's going to take longer in New York. It's going to take longer in Boston, for example. And Europe is starting to happen. We are starting commercial robotaxi in Europe and I think we will have pilots, for example, in London before the end of the year. So Europe is starting to recognize that they can't be left behind. European OEMs certainly are a huge player in terms of manufacturing capability and employment in Europe as well. So Europe is catching up. Another interesting US versus international story with Uber has been, [00:37:38] S0: as you've gone international with Uber Eats specifically, you've actually won or gotten to the number one position more often. I'm curious what The US experience in that category has taught you that's impacted how you approach strategy when going to an international market.
00:37:53 · Dara Khosrowshahi
[00:37:53] S2: The basics are the same. You've got to get selection right, you've got to sign up your merchants and when I look at the serviceable addressable market in the cities in which we operate, probably signed up around 40 to 50% of the restaurants and or merchants that can be on our platform. So it's about getting a selection and then making sure that you've got the right reliability. Every time when you order something, we get it right. We don't make mistakes. We deliver it to you within thirty minutes. And for us, our magic sauce is cross platform. We started with mobility and we are now able to increasingly upsell the mobility customer the delivery product, whether or not they want to use it on Uber Eats or they actually, when you open your mobility app now on Uber, you're going to see Eats right there. About 13% of Eats bookings are actually coming from the mobility business. In larger international markets and The US, you've got to get the basics right, but the platform for us is a structural advantage we have versus other model line players. We get a bunch of free customers from our mobility business. And then we have our Uber One membership program, 50,000,000 members now growing 50% year on year. Every company has a membership program. But the way I look at it is we're kind of like Netflix. For the same price, you get more content than anyone else. You get discounts on mobility, you get surge protection, you get free delivery, you get no fees on groceries, 60 more. Now you're getting 10% back on your hotel. So if we can build this loyalty program that is just bigger than anyone else's, and we have this cross platform magic, we think we can get to the number one position and at the same time have higher margins than our competitors and we're proving it out in market after market after market.
00:39:39 · Patrick O'Shaughnessy
[00:39:39] S0: So much of the story is being good at getting the supply. What does excellence look like there? What makes the best parts of Uber that do this the best? What makes them stand out? What is the key to being great aggregating supply?