Fortune magazine summit in aspen colorado. This at two hours. Thank you. Moving on to our opening interview. This at one of our themes in our next story and conversation. I want to welcome the ceo to post mates. So far you appraise a court of billion dollars. Facing challenges in introducing us to a new friend. Please welcome bastion lehman. [applause]. Bastian hello. Welcome. Your Business Model at Pretty Simple. There are a few other business out there in the same area thats doing pretty well. Can you explain a little bit about how you approach innovation. Bastian good morning first of all thank you for having me i am excited for being here. We would like to compete not dollar for all dollar but at its innovation. I think in many cases at the smarter way to compete. Money at one angle and i think an important one but if they are not the most wellcapitalized player, i think you have to find alternatives. Thats what we do as a company at estimate. One of the innovations that we have here today, we believe that there at a piece called seraph. This would be a cooking show, we would tell you to prepare a little bit. Maybe we can show this. It drives itself and hopefully not off of the stage. [laughter] it understands that there are objects so it moves around it and we call it social aware navigation. It navigates on the sidewalk so it needs to a little bit differently than in the street. Its all built in house. Its distracting. [laughter] we can move over. We can have a look. It worked. We have a little bit here from paradise bakery. [laughter] so this at for your. Amy [laughter]. Bastian this at it. This at our little ipod. Amy lets sit down and while i eat dayold yogurt, im going to ask you some questions. Why bring it inhouse. There are a few companies doing this already. They are not offended if i dont eat this ru. Bastian no. Amy why bring it inhouse. Bastian so we looked at the landscape to have years ago. We tried to pick out Different Companies that we could acquire that would help us build. It turns out that sometimes in Silicon Valley as you move, the evaluation of these companies go extremely high. We think we can do it inhouse and do it faster because the only thing we need to do in house at to be our own customer. We do millions of deliveries every month. We have all of the date of the many other counties need in order to build the atomic mass vehicles to perfection. We decided to bring it inhouse. Amy what at a roadmap and what at this launching and where and how difficult at it to roll out in cities. Bastian the really beautiful thing about this at it operates on the sidewalk, we dont have to wait until it has achieved and until we have permission to deploy a ptolemy. It means we can use it in a multi vehicle semi autonomous. We have an operator can look at it and intervene its it. In situations where we try to figure out quite yet itself what to do. Amy at there an operator sitting in a war room. Bastian actual leave arc its veteran organizations across the company and help them veterans find jobs after they are back from certain countries. I think at the beautiful part of it. Obviously and selfishly it helps us deploy serve and we are testing it right now and la. Amy we might get two more questions but lets get serious for a minute. Are you going public. Bastian i think the official line at that i can comment on this that i would love to take this public and i have said it before and i think its actually one of the Great American consumer rounds that we have. In the millennial Customer Group it at well loved. Our plan at to take it public. Amy the rumor reports youve had your several other Players Companies like uber for example, where those rumors come from and are they or can you substantiate them. [laughter]. Bastian if i knew where they were coming from, i wouldve already addressed that. Its a small industry. Post mates have tremendous traction this year and we are going twice as fast as uber and others. People notice that. If you take the necessary steps to prepare your company to go public, you will get ml his and we do its him bounds request, the same thing we have always done. We look at it may make a smart decision. Thats what we do. Amy there at quite a bit of overlap its Customers Using multiple brands in the space. Does in some locations at least, at there a lack of brand loyalty. Does that kind of naturally lead into other factors. To more consolidation in the space. At that inevitable. Bastian there at a lot of overlap. You will see that the least overlap at in post mates and any other app. Thats because we are very focused on the millennial customer and 60 percent of our customers are female. We put a lot of effort into the brand and its the comedy stands. We a lot of exclusive merchants and we have cuffed out a Customer Base that we like and that is very unique. Amy what at the reason for the popularity and la. You seem to have a very large market share there specifically. Bastian people think post mates at cool. Its difficult to understand because in Silicon Valley nothing while this anymore. Im a friend who works for High Companies and i work for door dash and you almost have this kind of four players that have the Peoples Market fair share. We were the first and la. It gave people a superpower. People who have very limited time musicians and entertainers discover this almost five or six years ago. They started talking about it. Creative people started writing it in their music. I think thats what helped. Im afraid to say it wasnt me that made it cool but it really has an iconic status. If you want to have something delivered, usa regardless of what service you use. Bastian. Amy you become a verb. Speaking of california, how many of you are familiar its ab socket. The bill at coming up. There at one. This would reclassify independent and contractors as employees. How many contractors do you have currently. Bastian around 400 thoughts a and. Amy what at the do for your Business Model. Bastian i think the right way to look at this at to understand what it does to the people that you deliver on the post mate platform. I think this at true for many of the platforms in the delivery space, you have almost 90 percent of the post mates on the platform, they work in the platform less than five hours a week. It truly at about supplemental cut income. At four to five or 600 a month. Its funny that it at that number because at the same number that most americans can say they have for medical expenses. We believe the post mates fills a gap when it comes to income and it at an important gap and this is what we obviously believe that living these people as independent contractors and at matter of fact, not leaving them but making sure that any bill that passes, we solidified their status as a intimate contractor. Thats the right thing to do. Amy you think that you have a good chance of doing that that they can remain independent contractors. Bastian we work its labor unions and government offices and we have an Advisory Board for almost two years. It helps us do the right things for the people. I think we have put forward a proposal that makes it very clear that we care deep deeply about the workers in the platform. We are wheeling to put a benefit fund together. More voices on the platform. His we are doing the right thing. Amy questions from the audience. Placing her hand. Lets talk more about innovation. If you have a question, raise your hand. This at obviously very innovative. What are ways, its a Pretty SimpleValue Proposition here. One of the ways are you looking at not only offering more to your customers but also optimizing the way that you operate. Bastian a few examples. When the company was two years old, we unveiled our delivery as a service. The first in space. That does at it basically allows us to act more like fedex. If you are one of our customers, like walmart or 711, you can have access to the post mates. You can do things that were previously not possible. You can deliver the goods extremely fast in three thoughts and and 400 something cities in the United States. Almost 200 percent yearoveryear growth on the api side. Post mates unlimited in the hopes that we have some subscribers here. Over a third of our orders comes from subscribers today. You pay a monthly or annual fee. We launched a party last month. It at done a lot more already. Im sure my daughter will get there and be able to do as much stuff and its fascinating to see that. But mostly party allows to have free delivery because what were doing at we are missing a place where someone else just placed an order its your location so we do open the app and you see this, you can just take on two. You are trying a few minutes of your time for free delivery. Amy and from your and it at helping to increase efficiency. Bastian we do these things all very selfishly that many times they have a great event to the customer as well. It allows us to be be more efficient. If we launched it two months ago and at now 15 percent of total volume. Amy does anybody here use post mate party. [laughter] llama . Here. I just want to ask about the delivery vehicle. You said they are testing it in la. I am curious what kind of interactions you see that if its moving down the sidewalk and people randomly come upon it. How they react. Do you have a whole range of reactions like do they stop and look at it or kick it away bit or whatever. And that she have any programmed responses and when encountering people. Bastian that is a great question. We have a team that is focused on just the interactions part. In a few interaction elements. You have the eyes, elimination around the ring you have a display. People are very curious. People want to interact its it to the extent that we will have a more sophisticated program that allows her to give back. We are thinking about where you could ask her for help, or you can ask for help. There is a delivery robot in a hotel. Dont move which hotel but the delivery robot delivers food its room service. One thing it cant do at press the button to move the elevator to a floor. So it will ask you to press the button for the robot. Its a great interaction because actually shows how we can complement each other. We started testing this. Amy what if no one at in the elevator. Bastian we have got that far yet. We actually started testing in a community its elderly people. We thought if we could figure out a way that it at nonthreatening to not just the millennial his 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 when wanted to make it as easy to use and interact its as possible. Thank you for being here. Two quick questions. Does she collect data also she at going around. She has two pretty fearsome cameras there. I am curious how you are approaching privacy as to what she sees. Does post maids operate outside of the United States and if so, where and if not, do you want to. Bastian we do in mexico and we are in mexico city. We may expand further. That is for the medium future. The data that it collects and we will do the same thing, we will sell it to the highest bidder. [laughter] and we think it at really a unique data asset that based facial recognition. No one will be safe. [laughter] [laughter] given that i was born in germany, thats maybe part of my evil plan. [laughter]. Amy you did make a joke. About at how some. It could shoot lasers. [laughter]. Amy most of the questions are around the robot but it at so interesting. I wonder if you could talk a little bit about at not the actual space inside at huge. How efficient at it and cost efficient in terms of replacing humans at some. Bastian i think its important to really understand that when it comes to innovation that whatever you have seen in any moment in time at not how it really needs to be. Forever. First imac wasnt slow computer and i had a model minute but it looks great. It captivated people. It had a handle on it so you thought you could carry around. Which of course no one does. We wanted to take those same approach. Nonthreatening that has a medium wow factor that at about the size of a kidman about 1210 to 12 usual. We walk in the street, thats the area where we locate and where we communicate. This at the first version of it. A child of about ten or 12 years old. Thats where we look. It doesnt have to do hundred percent of all of the moves. It can do very short deliveries. Time sensitive. Prescriptions from walgreens. There at a lot of cases where we believe that the forum factor that we have today at very sufficient. To be honest, most of the deliveries we do dont take up more space than was inside of her. Amy the questions about intimate contractors versus employees, mike uber and others. At it irrelevant because this is what does the deliveries. Doesnt ever ever get to that. Bastian i think at the same answer as its innovation. The idea that it will replace everything at as true as computers have replaced all of us to this. I think it will help and augment and make things possible they have not been possible before. And these also important to see the other side. Imagine we have deployed a few thoughts and 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. When it allows local businesses to distribute their cost, extremely low cost. I believe thats important and it helps local economy. It helps the hundreds and thousands of retailers in the night as they compete its amazon because they will have a better and faster infrastructure than emma hunt amazon has. I think that is really the positive things to look at. Amy real quick you talk about the dream of coming to Silicon Valley and doing a start up and all of that. At that still attainable dream, has become harder for you or for others to come to Silicon Valley and to scale in San Francisco or elsewhere in the area. Bastian and my personal view what at happening at that there wasnt time we do could be a founder and entrepreneur and you had a year to tinker around. In a weird way that was very enjoyable because maybe your idea was very lift field. He was very unimportant to their companies. You challenge that everybody at facing now at that whatever you do, if it has the small chance of success, you will get copied and it will get attacked from all sides immediately. It at a lot harder. Maybe that just means the ideas that we need to work on and need to think about has to be more fundamental in general than just how can we get your pizza in 25 minutes. Amy we look forward to see what news unfolds its you in the next few months. Thank you so much. Bastian thank you. Amy before we move on, i want to give a huge thanks to our premier partners. Herman miller, intel, kc mg, oracle, Rbc Capital Markets are finance tracks sponsored. I also want to thank our other partners jen packs, ida garland, new york stock exchange, and trip actions. [applause] thank you last december our next guest was appointed as executive assistant director of criminal cyber service. Shes the fifth highest ranking at the fbi. Top ranking woman on the agenda. She oversees all in the eye criminal cyber investigations worldwide and works to protect critical digital infrastructure. Most of it controls and runs by private companies. Please welcome amy hess. Good morning everyone. I think we all had a little is it too much fun last night. Amy i am so happy they are here its us. Lets scare everyone shelley. Recent polls say americans are more afraid of malicious cyber activity than economic problems, nuclear weapons, and terrorism. Should we be afraid. Short answer. Yes. Amy i dont see those things as mutually exclusive. What, i mean, by that is cyber involves other things. All of those threats and stress over time, terrorism espionage, Mutual Properties crimes. Now it takes on a whole new path in the sense of the sub Cyber Capabilities and the exponential increase in technology be that we have seen. Before i ask you about anything else, tell me about your role and what it encompasses. For the upright fbi, we break ourselves down into the separate divisions. One of the divisions labors he at particularly overseas criminal investigations. Whitecollar Election Fraud in all of those things, Violent Crime as well as financial crimes, another division i ever see as our Cyber Division. Those are the folks who really are looking at the intrusions. What at out there, as far as what the box net or e skimming or at this email, my eyes. Does it manifest itself. Im also responsible for all of our Global Operations across the planet. So you have plenty of free time at what they are telling us. Pretty much. We learned a lot about china. People are very concerned about it in terms of Global Competitiveness for the United States. Tell me what they are staying what at actually coming out of china. Amy china at clearly dominant superpower in the world. To do that they are wheeling to steal information clearly, steal intellectual property and still military secrets government secrets academic secrets r d, and in the process of doing all of those things, they also are investing in companies in the us. Part of the supply chain and all of those things create for us a risk. We can see where they can get information that American Companies has developed and taken years they get it for free and get it quickly and positions them to achieve their goals. So what role do you play in pushing get it back against that. Amy for one thing the fbi meets its a whole bunch of other agencies. That would include public, Homeland Security and looking at how we defend our networks. Also, we work its the department of defense on how we may be able to see whats happening outside of the United States. How we might be able to take offensive actions potentially but the main fbi his main go