Thank you. Moving on to our opening interview. Sometimes plan a does not work out. You have to be ready to improvise. That is one of the themes in our next story and conversation. I want to welcome the cofounder mates, aof post Delivery Service that is part of the race to remake the way beast shop and get our stuff. He has raised a quarter billion dollars. You know, average in cilic and ballet. Sharing how his company is facing the challenges and also introducing us to a new friends. Please welcome sebastian lehman. Ok, the Business Model is Pretty Simple. There are few other Delivery Companies out there that of gotten pretty big as well. But you guys have focused on innovating in certain areas can. Can you explain how you approach innovation . Bastion good morning first of all. Thank you for having me. Excited to be here. We like to complete not dollar per dollar but with innovation as you mentioned. And i think in many cases it is the smarter way to compete. Money is one angle and an important one. But if youre not the most well capitalized player in a space any space that youre operating in, you have to find alternatives to compete. That is what we do as a company at post mates. Postmates. One of the innovations we have i think we brought here today. We believe that there is up piece of the networks we are building that can be served with Autonomous Vehicles. And ours is called serve. We brought it here. If this was a cooking show, we would say we prepared it a bit it drives itself, hopefully not off the stage. It understands there is an object here, for example. So it moves around it. We call that socially aware navigation. It navigates on the sidewalk, so it needs to do things different differently than on the street. It is all built inhouse. The team is now 60 people. Sorry. Im so distracted. The second time she is on a stage. She . Yes. Allfemale rovers. We can move over. Is it socially aware of me . It worked . Very exciting. We got you something here from an ice bakery, apparently it is paradise bakery. Apparently it is a staple in , aspen. [laughter] bastion the baked goods are fine. This is that. It is our little ipod. Ok. While i sit down and eat dayold yogurt, im going to ask you some questions. Why bring it inhouse . There are a few companies doing this already. Youre not offended if i do not eat this are you . Why bring it no. Why bring it inhouse if that was not your competency two years earlier . Bastion we looked at the landscape to figure out if there were companies we can acquire to help us build serve. It turns out the way it sometimes is in Silicon Valley that the valuations of his companys works truly high. We said, you know what, we think we can do it inhouse, we do can do it faster. Because the only thing that we need to do inhouse is to be our own customer. We do millions of deliveries every month. We have all the data that every Company Needs in order to build the Autonomous Vehicles to perfection. We decided to bring it inhouse. What is the roadmap . Where is it launching . When is it launching . How difficult is it to roll it out into cities . Bastian the beautiful thing about service that because it operates on the sidewalk we do not have to wait until it has achieved, until we have permission to to play with autonomy. This means we can use it in the mode we call semiautonomous. We have an operator that can look at it and intervene in with it in situations where it cannot figure out itself what to do. Is the operator sitting in some war room . Bastian remote in San Francisco. Work with veterans organizations across the country and help them have better ends, find jobs when theyre back from serving this country. I think that is a bit of a part a part of it. But obviously, selfishly it helps us deploy it serve, and we are testing it now and l. A. Ok. We might get more questions on serve later and innovation. But lets get serious for a minute. Are you going public . Bastian ok. I think you know the official line is that i cannot comment on this in any way. But i would love to take postmates public. I think it i i have said it bef. I think it is one of the Great AmericanConsumer Brands we have in the millennial customer group. It is wellloved. And our plan is to take it public. Yes. The rumor, the reports that you are in talks with several other players, Companies Like uber for example. Where do those rumors come from . Are they can you substantiate them . No, im getting. Kidding. Bastian well, if i would know where they are coming from i would have addressed that already. Look, it is a small industry. Theres a finite amount of players. Postmates has to mend distraction this year. We are growing twice as fast as he reads, as grub hub. I think people noticed that. If you take the necessary steps to prepare your company to go public, you will get inbound. And we do with all inbound request, the same thing we have done always. We look at it and make the smart decision. That is what we do. Theres quite a bit of overlap with Customers Using multiple brands in the space. Does the in some cases at some locations at least, maybe not in los angeles, but at locations does the lack of brand loyalty does that naturally lead to in thensolidation space . Bastian youll see the least overlap is between postmates and any of the other brands. That is because i believe we are very focused on the millennial customer. 60 of our customers are female. We put a lot of effort into the brand and what the Company Stands for. We have a lot of exclusive merchants. We have carved out a Customer Base that we like and that is very unique. What is the reason for the popularity in los angeles . You seem to have large market market share there specifically. L. A. People think , postmates is cool. In Silicon Valley, nothing wiles wows us. You almost have this, four players with the old market share. We were the first in los angeles. A superpower. People that have very limited time, musicians, entertainers discovered the app. Now five or six years ago. They thought it does tremendous things. They started talking about it. Creative people started writing about it in movie scripts, and tv series, and movies. That helps. Im afraid to say that it was not me that made it cool. But it really has an iconic status in l. A. In l. A. , if you want to have something delivered, you will say to postmates it regardless of what service you use. You have become a verb. So i want to go to you guys for questions. Please be king of some. Thinking of some. Speaking of california, how many of you are familiar with the ab5 . That is coming up, bastian there is one. This would potentially reclassify independent contractors as employees. How many contractors do you have currently . Bastian i think it is around 400,000. What does that do for your Business Model . If that passes . Bastian i think the right way to look at this is to understand what it does to the people that do the deliveries on the postmates platform. You have, and this is true for most of the platforms in the delivery space, you have almost 90 of all the postmates we have on the platform they work on the platform less than five hours a week. It truly is supplemental income. It is 400, 500, 600 a month. Incrementally a month. It is the same amount of money that most americans cannot spare when it comes to medical expenses per year. We believe postmates fills a gap when it comes to income. It is an important gap. This is why we obviously believe that leaving these people as independent contractors, as matter fact not leaving them but making sure that in any bill it that passes that we solidify their status as an infinite independent contractors is the right thing to do. And you think you have a good chance of making the case that they remain independent contractors . Bastian postmates works with labor unions, the governors office. We have the fleet Advisory Board now for almost two years. It helps us do the fleet. And i think we have put forward a proposal that makes it very clear that we care deeply about the workers on the platform. We are willing to put a benefit fund. We are willing to have more worker voices on the platform. So yes, i think we are doing the right thing. Questions from the audience. Please raise your hand if you have a question for bastian. Need more coffee today. If you have a question, raise your hand. Bastian dont be shy. I know it seems like its a Pretty SimpleValue Proposition here. What other ways are you looking it is Pretty Simple. It is a Pretty SimpleValue Proposition here. What other ways are you looking at not only offering more to your customers, but also optimizing the way you operate . Bastian right. I will give you a few examples. When the company was two years old, we unveiled our api, delivery as a service. The first in the space. What that does is it basically allows us to act more like fedex. If you are one of our our customers, for example apple or walmart or 7eleven, you can have access to the postmates fleet and do things that were previously not possible. That means you can deliver your goods extremely fast in 3,400 something cities in the United States. It is a great product. It grows actually fast. Almost 200 yearoveryear on growth on the api side. We were the first to innovate with the subscription service, postmates unlimited. Over a third of our orders come from subscribers today. You pay a monthly or annual fee and you get free deliveries in return. We launched Postmates Party a just two months ago. It is the same age my daughter is now. It has done a lot more. There is a lot going on in her brain. You cannot see it. Bastian i am sure she will get there and it is fascinating to see that, but Postmates Party allows you to free delivery or Somebody Just placed an order with your location. When you open the app you can see great places you can tag onto. So you are trading a few minutes of your time for free delivery. , it helps tor end increase efficiency. Bastian we do the thing selfishly, but many, many times they have a great benefit to the customer as well. At allows us to be efficient and batch and bundle deliveries. We launched it two months ago. It is now 15 of total volume. Anyone here use Postmates Party . We had a question back here. I just wanted to ask about the delivery vehicle. You said you are testing it in l. A. Im curious what kind of interactions you see . If that is moving down the sidewalk and people randomly come upon it, how they react. Do they react . Do people stop and look at it . They kick it . Does she have programmed responses and countering people . For encountering people . Bastian it is a great question. We have a team focused on the interactions part. You have the eyes. Eyes. Have a few interactions on serve. You have an illumination around the ring. The display. People are very curious. They want to interact with it. To the extent that we will have a more sophisticated program as part of the launch that allows serve to get back. We are thinking about use cases where you could ask sir for help. Or serve could ask you for help. I will give you a better example. Theres a delivery robot in a hotel, i do not know which hotel, that delivery robot delivers food. Room service. The one thing it cannot do is press the button to move the elevator to a floor. So it will ask you to press the button for the robot. It is a great interaction because it actually shows how we can complement each other. We started testing this. What does it do if nobody is in the elevator . Bastian it just waits around. Serve does not do elevators yet. Ok. Bastian we actually started testing it in a community for elderly people. We wanted to do that in a gated community because we thought if we can figure out a way that it is nonthreatening to not just the millennials that are used to technology around them, but to a group of our society that is a little bit less used to it, we will achieve great learning. It was fascinating to see the interactions there. Basically, we wanted to make it as easy to use and interact with as possible. From adam. Thank you for being here. Two quick questions. Does she collect data also as she is going around . Because she has two pretty fearsome cameras. Im curious how you are approaching privacy of what she sees. Does postmates operate outside the United States . If so, where . If not, where do you want to . Bastian we do in mexico. We are live in mexico city. It is a great market for us. We may expand further. The data that it collects, we will do the same as everyone else, we will just sell it to t the highest bidder. [laughter] bastian we think it is unique with facial recognition so no one will be safe once these are fully deployed. [laughter] your person here is just like freaking out. Bastian given that i was born in germany, maybe that is just part of my evil plan. [laughter] you did make a joke. You did make a joke backstage about how at some point it could shoot lasers. Bastian there is always a little truth in everything. [laughter] of course, most of the questions are around the robot. But it is so interesting. I wonder if you could talk a little bit about also it is not the space inside is not huge. Bastian yes. How efficient is it and cost efficient in terms of replacing humans at some point . Bastian i think it is important to really understand when it comes to innovation that whatever you see in any moment in time it not how it needs to is not how it needs to be forever. The first imac was a slow computer but it looks great and it captivated people. It had a handle on it say so you could carry around with you which of course nobody does of the desktop computer. We wanted to take the same approach. To create some thing nonthreatening that has a medium formfactor about the size of a kid when it is around 10 years old. That is in our peripheral vision when we walk on the street, that is the area where we walk and look and communicate. This is the first version of it. It does only need to work for a few number of deliveries on the platform for us to make sense to operate it. It does not have to do one had a 100 of all deliveries. In fact, we do not think it should. But it can do very short deliveries. Could do deliveries that are not time sensitive. It could deliver prescriptions from walgreens. There a lot of use cases where we believe the formfactor we have today is very sufficient. And to be honest most deliveries we do on the postmates platform do not take up more space than what is inside of serve. Michal so they question about independent contractors versus employees. I know at some point this is a question for uber and lyft, and and others. Is it irrelevant what it does to deliveries . Does it get to that point . Bastian i think it is the same answer as with innovation. The idea that robots will replace everything is as true as computers have replaced all of us up to this point. I think it will help, it will augment, it will make things possible that have not been possible before. I think it is also important to see the other side. Can you imagine we have deployed a few thousand of these . They are here to help us fulfill the dream of having an infrastructure that can deliver goods locally at zero cost or close to zero cost. With that allows is it allows local businesses to distribute their goods an extremely low cost. It helps local businesses thrive. It helps hundreds of thousands of retailers in the United States compete with amazon because they will have a better and faster interceptor than amazon has. That is a Positive Side to things to look at. Michal you talked about how you dreamed of coming to Silicon Valley. Is that unattainable dream . An attainable dream . Has it become harder for you or others to come to Silicon Valley and scale in cilic and valley or San Francisco or elsewhere in the area . Bastian in my view there was a time when you could be a founder and entrepreneur and you had a year to tinker around. You know . In a weird way that was , enjoyable. Maybe your idea was very left field unimportant to the bigger , companies. It gave you time to figure things out. The huge challenge now is everyone is facing now is whatever you do, if it has the chance of success, it will get copied and it will get attacked from all sides immediately. It is a lot harder. Maybe that just means the ideas we need to work on or thing k about have to be more fundamental than just how can we can get you a pizza in 25 minutes. Michal all right. We will look forward to seeing what news unfolds with you in guys in the next few months. Thank you so much. Bastian thank you so much. Thank you. Michal i will see you out there. Baked goods for anybody. Before we move on, i want to give a huge thanks to our premier partners. Share well. I think we are going to see a logo. Yes. Herman miller. Intel. Kpmg. Oracle. And rbc capital markets. I also want to thank our partners, three pollute global, jen pack, ida ireland, new york stock exchange, and trip actions. Thank you. [applause] ok, last september, our next guest was appointed executive assistant director of the fbis criminal cyber and response and services branch. She is the fifth highest ranking official at the fbi and the top ranking woman on the agenda. She oversees all fbi criminal and cyber investigations worldwide and works to protect critical digital infrastructure, most of it controlled and run by private companies. Please welcome amy hess with fortunes andrew neska. Andrew good morning, everyone. Come on. Give me another one. Good morning. I think we all had a little too much fun last night. Amy, im so happy you are here with us. Amy thanks for the invitation. Andrew lets scare everyone, shall we. Recent poll say americans are more afraid of cyber activity of malicious cyber activity then an economic problems, nuclear weapons, and terrorism. Should we be afraid . Amy short answer, yes. Andrew ok, good. Bastianamy but i do not see the things as we usually exclusive