Get our stuff. He has raised a quarter billion dollars. You know, average in cilic and sharing how his company is facing the challenges and also introducing us to a new friends. Please welcome sebastian lehman. The Business Model is Pretty Simple. You guys have focused on innovating in certain areas. Can you explain about how you approach innovation . Good morning. Thank you for having me. Excited to be here. We like to compete, not dollar to dollar, but with innovation. In many cases, it is the smarter way to compete. Money is one angle, and an important one. If you are not the most wellcapitalized, you need to find alternatives to compete. One of the innovations that we have, we bright here today. Is a piecethat there of the network that we are building. Ours is called serve. We brought it here. Maybe we can show it. Drives itself. Hopefully not off the stage. It understands that there is an object, so it moves around it. And navigates on the sidewalk. It is built inhouse. The second time she is on the stage. We can have a look. Socially aware of me . Yes. Then you go. It worked. We have something here from paradise bakery. This is for you. There is more in here. That is it. Lets sit down as i eat dayold yogurt. Why bring it inhouse . There are a few companies doing this. You are not offended if i do not eat this right . Why bring it inhouse . We tried to figure out if there were companies that we could acquire. , how it sometimes is in Silicon Valley, the were extremely high. Dosaid, we think that we can it inhouse and faster. Need to thing that we do inhouse is be our own customer. We do millions of deliveries every month. We have data that many other Companies Need to build it to perfection. We decided to bring it inhouse. How difficult is it to roll out into cities . The beautiful thing about it is because it operates on the sidewalk, we do not have to wait until it has achieved and we have permission to deploy. We have an operator that can look at it and intervene with it in situations that we cannot figure out what to do. The operator is sitting in a war room . Remote in San Francisco. And help veterans find jobs after they are back from irving this country. That is a beautiful part of it, but it helps us deploy serve. We might get more questions later, but lets get serious for a minute. Are you going public . Official line is that i cannot host i cannot comment on this. I would love to take it globally. It is well loved. Our plan is to take it public. The rumors. There are reports that you are in talks with several other players, Companies Like uber for example. Where did those rumors come from . Can you substantiate them . If i knew where they were coming from, i would have addressed that already, but it is a small industry with a finite amount of players. Asare growing twice as fast debris and grub hub. If you take the necessary steps to prepare your company to go , we deal with it the same way we have done always. Make the smart decision. That is what we do. There is quite a bit of overlap with Customers Using multiple brands in the space. Location,ses, in some the lack of brand loyalty, does that naturally lead to other factors, to more consolidation in the space . Is that inevitable . Youhere is an overlap, but will see that the overlap is between post mates and any of the other apps because we are very focused on the millennial customer. 60 of customers are female. We put a lot of effort into what the Company Stands for. Wehad a Customer Base that like and that is very unique. What is the reason for the popularity and l. A. . You had a large market share there specifically. They think it is cool. In Silicon Valley, nothing wows us anymore. At door l. A. Andhe first and it gave people a superpower. People have a limited time and they discovered the application five or six years ago. They started talking about it. Creative people started writing it into script. I think that is what helped. I am afraid to say that it was not me who made it will. It really has an iconic status. If you want to have something delivered, you will say to post make it. I want to go to you guys for questions. Speaking of california, how many of you are familiar with the bill that is coming up . There is one. This would reclassify independent contractors as employees. How many contractors dean have currently . Around 400,000. What does that do for your Business Model . I think the right way to look at this is to understand what it does to the people. Is true for most of the platforms in the delivery stage. You have almost 90 on the platform. They work less than five hours a week. Is 4, 5, 6 million it is the same number that most it comes toy when medical expenses per year. Believethe gap why we that leaving these people at contractors not leaving them but making sure that in a bill t passes, we solidify that. You think you we solidify that. A fleet Advisory Board for almost two years that helps us do the right thing. I think we have put forward a proposal that makes it very clear that we care deeply about the workers on the platform. Willing to have more voices on the platform. I think we are doing the right thing. Questions from the audience . People need more coffee today. Lets talk about coffee lets talk about novation. What are other ways . It seems like a Pretty Simple value proposition. What other ways are you looking at, not only offering more to your customers, but also optimizing the way that you operate . I will give you an example. The company was two years old, we unveiled delivery as a service. What that does is it allows us. O act more like fedex you can have access to the post meet fleet. You can deliver goods extremely fast in 3400 something cities in the u. S. The first to innovate with a subscription service. Post mates unlimited. I hope we have some subscribers here. Fee. Ay a monthly annual we launched post make party. It has done a lot more. Post mates party allows you to have free delivery. Where matching a place someone has placed an order with your location. You are trading a few minutes of your time for free delivery. And it is helping to increase efficiency. We do these things very selfishly, but many times it has a great benefit to the customer as well. And allows us to be more efficient. We launched it two months ago. Anybody here use post meet party . We had a question back here. Just want to ask about the delivery vehicle. What kind of interaction do you see . How did they react . It,hey stop and look at kick it and wave at it . Programmedve any responses been encountering people . Have 18 that is focused on the interaction part. You have elimination. You have a display. People will not interact with it. There is a more sophisticated program that allows them to give yet, i will give you an example. Robot delivers food. The one thing it can do is press the button of the elevator. It will ask you to press the button. It is a great interaction because it shows how we can complement each other. What does it do if nobody is in the elevator . Around. St waits it does not do elevators yet. We started testing it in a community and we wanted to do that in a gated community because we thought, if we can figure out a way that is nonthreatening, to not just the millennials that are used to technology around them, but to a group of our society who is a little less used to it, we will achieve rate things. Itically, we wanted to make easy to use. Thank you for being here. Does she collect data . She has some pretty fearsome cameras there. How are you approaching privacy of what she sees . Does post mates operate outside the u. S. . We do in mexico. Us. S a great market for that is for the medium future. Collects, we it will sell it to the highest bidder. Uniquek it is really a data asset. No one will be safe once these are deployed. Your person here is like freaking out. Given that i was born in germany, maybe that is part of my evil plan. You did make a joke backstage about how it could shoot lasers. There is always a little truth in everything. Most questions are around the robot. I wonder if you could talk about the actual space inside is not huge. Terms ofient is it in replacing humans at some point . Is important to understand when it comes to innovation that whatever you see in any moment in time is not how it needs to be forever. It looked great and it captivated people. He thought he could carry it around, which nobody does with a desktop computer. We wanted to create something nonthreatening with a medium formfactor. We walk on the street and that is the area that look and communicate. It does only need to work for a few number of deliveries on the platform. It does not have to do 100 . We do not think it should do. It can do short deliveries. Deliveries that are not time sensitive. There are a lot of cases where we believe that the factor that we have today is very sufficient. Upt deliveries do not take more space. The question about independent contractors. I know this is a question with uber and lift. This is what does the deliveries. Does it ever get to that point . Same answer as with innovation. The idea that it will replace everything is as true as computers have replaced all of us up to this point. And makeelp, augment things possible that have not been possible before. It is important to see the other side. Here to help us fulfill the dream of having an infrastructure that can deliver goods locally. What it allows his businesses to distribute the cost and goods for an extremely low cost. It helps local economies drive and it helps retailers in the u. S. Compete with amazon because they will have a better and faster infrastructure than amazon does. That is the Positive Side of things to look at. We talked about how you grew up in munich and dreamed of coming to the Silicon Valley. Still an attainable dream . Has it become harder for you or others to come to Silicon Valley . In my personal view, what has happened is there was a time when you could be an entrepreneur and you had a year to tinker around. Because maybeable your idea was very left field. It gave you enough time to figure things out. Do, you would have the small chance of success. Harder, but maybe that just means that the ideas that we need to think about the need to be more fundamental in general. We look forward to seeing what news unfolds in the next few months. I all right. I want to give a huge thanks to my premier partner. I think we are going to see a logo. Intel. Miller, markets. D rbc capital ourso want to thank partners. Thank you. Last september, our next guest was appointed as executive director of the criminal Cyber Response and services branch. She is the fifth highest Ranking Member of the fbi and top ranking woman on the agenda. She oversees all cyber investigations worldwide and works to protect digital infrastructure, most of it controlled and run by private companies. [applause] good morning, everyone. Good morning. Bitink we all had a little too much fun last night. Amy, i am so glad right here with us. Say that americans are more afraid of malicious cyber activity than economic problems, Nuclear Weapons and terrorism. Should we be afraid . Short answer, yes. I do not see those things as mutually exclusive. Cyber involves all of those things. Threatshose traditional , terrorism, espionage, intellectual property theft, it takes on a new path in the sense of Cyber Capabilities and the exponential increase to enable those things to be a lot scarier. You about thek specifics, tell me about your role and what it encompasses. Fbi, we break ourselves down into separate divisions. One of the divisions i oversee is the focus on criminal investigation. Everything from whitecollar election fraud. Oversee isision i the cyber division. Those are the people that are really looking at the intrusion. Hesis out there as far as giving orifices health compromise and how it manifests itself. You have plenty of you have plenty of free time. China. Aboo has been people are very concerned about it in terms of global competitiveness. Tell me what usc that is coming out of china what you are seeing that is coming out of china. Willing to steal information, steal intellectual and steal military secrets, academic secret. Thehe process of doing all things, they are investing in companies. Risk. Ose things create a. Hey can get information they get it for free, they get it quickly and it positions them to keep their goals. What role do you play . With a bunchinate of other agencies. Looking at how we defend our networks. Also, we work with the department of how we may be able to see what is happening and how we might be able to take defensive actions. The fbis main role is accountability, trying to figure out who is responsible for this thing and how do we hold them accountable, whether through indictments or criminal charges or for sanctions, that is our role to make that happen, figure out who did it and then hold them accountable. Lets look to the other bugaboo, russia. Is it any different than china . It is different. They are interested in stealing our military secrets, our government secrets. But what you have seen publicly over the past several years is what we call maligned foreign influence. , beingcing campaigns able to use and take advantage of our dependence. Question makes people whether or not what they are seeing, but they are reading and hearing is real because we have seen instance over us. Andrew lets talk about a specific incident that happened fairly it hit the headlines fairly recently, which is the florida Voter Registration incident. Tell me a little bit about what happened there. Amy we at the department of justice charged several russian nationals who worked for the main intelligence directorate, the gru, a while ago with intrusions, with basically stealing information. When we saw that in the runup to the president ial election in 2016, we realized we got to bring all the resources that we have in the f. B. I. Together to identify that type of activity when that is happening. And other agencies needed to do the same thing. So what we did is form a Foreign Influence Task force in the f. B. I. Comprised of our summer division, criminal investigative , counterintelligence division, even our counterterrorism division. Identifystopped to after those charges, to see where we see more about actively happening. We did that into the midterm elections in 2018. And we are continuing to look for that type of activity into the 2020 campaign. We saw attempts to try to infiltrate these election networks that were being used. We have no evidence that there was any indication of whereabouts or changed or anything like that, but there were certainly instances where trying to gain access to information that surrounds the electoral process should be concerning to us. Andrew yes, i would say so. The fbi received a lot of criticism for that incident and it was really round transparency. Which is kind of part and parcel with cybersecurity. The criticism was that the f. B. I. Wasnt transparent enough for wasnt sharing enough information, as you can imagine, a whole host of folks were involved in the Voter Registration process. How do you feel about that because transparency is an asset and a risk in this line of work. Amy it gets us into a good discussion, i think. See activity that looks off, that they know is maybe not something but maybe is , we are highly encouraging them to contact us. The problem is that first off, of course, we recognize the competitive advantage the companies have or dont have when they acknowledge they may have been attacked. Right . That is number one. That outreach to the government. The problem is if you do not do that, youre potentially not only enabling us to come in and help you but you are also potentially not being able to share that information with other people, or even to prevent the next one from happening to yourself. In certain instances we are talking about here, when the Victim Company does contact us, we take that very seriously. We have no obligation if you will to tell the world if a Victim Company says hey, i really dont want the world to know about this, i want to work through it, just make sure i understand what we have. What we see. Then lets talk about that. Bring us in so we can look at it together. And see if there is actually some thing to it. Andrew yes. And i will come back to that. I want to ask about the current administration. Trump pushed through a National Cyber strategy, right . He put that out there and sign the bill to train local Law Enforcement in Cyber Security tactics, i guess is the broadest way to put it. Do you feel like we are doing enough from a u. S. Governmental standpoint, that wed executive that could be the executive ranch or legislative branch, however you want to break it down . Amy no. I think we could always do better at this. This is the future. If you think about our dependence on technology today. I view this as a wholesale change in the way that we function as a government, as a people, and as a society to get the proliferation technology has meant that we need people who understand it, who can really and 1s but wes also need people who understand policy, who understand how to conduct an investigation, we need to bring those together. I think that is where we tend to fall short is figuring out how those things can work in symphony, and encourage that type of collaboration and coronation. We are doing a lot in that area, but we can do more. Andrew sewing need more collaboration and more people, it sounds like. More need more money, laws, what do you think . Amy technology is expensive. The people who understand technology, we are in extreme demand across the board. The government will never be able to compete with the private sector when it comes to salary. What we hope we can compete based on his the mission. You are never going to be able to do some of the things you get to do in the government that you would do in the private sector, and we need each other to share information. I think personally, if i had the ideal space here, i would like to see an ability to move backandforth between private sector and government more easily. Would furtherat develop all of our understanding and our capabilities