Average in Silicon Valley. Sharing house committees facing the challenges and introducing us to a new friend please welcome bastian. [applause] hello. Hello. Welcome. Thank you. The Business Model is Pretty Simple. There are a few other Delivery Companies out there that have gotten pretty big as well but you guys focused on innovating in certain areas and can you explain a little about how your approach innovation . Good morning, first of all. Thank you for having me. Excited to be here. Look, we simply like to compete not dollar for dollar but with innovation as you mentioned and i think, in many cases, the smarter way to compete. Money is one angle and its an important one but if you are not the most wellcapitalized player in any space that are operating and you have to find alternatives to compete. That is what we do as a company at post mates. One of the innovations that we have, i think, we brought it for today. We believe that there is a piece of the network that we are building can be served and ours is called [inaudible] and we brought a tear and it would be a cooking show will tell you how we prepare a little bit but this is served and maybe we can show it and it drives itself. Hopefully, not off the stage. It understands that there is an object here emma for example but it was around that we call it socially aware and navigates on the sidewalk so needs to do things that relate that on the streets but its all built inhouse and the team is now 60 people im sorry, im so distracted. [laughter] so, am i paid. This is the second time she is on the statement all our robots are female. We can move over and have a look. It should be aware of me right now . It works. Magic. This is for you back there is more in their . You, it may be been in there since yesterday. That will be awkward. This is it. Its our little, you know, its our little ipod. Lets sit down and while i eat dale old dayold yogurt ill ask you questions. Why bring it inhouse . There are a few companies doing this already. The most beautiful thing is because it operates on the sidewalk, we dont have to wait until it has achieved and until we have the position we can use it semiautonomous, so we have an operator that can look at it and intervene with it and in situations they cant figure out quite itself what to do. There are operators sitting in a room. To help the veterans find jobs after they are back from serving this country i think that is a beautiful part of it, but obviously selfishly it helps us to deploy and we are testing it right now. We might get to more questions later, but lets get serious for a minute. Are you going public . The official line i would love to take them public in the millennial custom approved our plan is to take it public. The rumor reports that you are in talks with other players and Companies Like google are for example, where do those come from a does quite a bit of overlap with Customers Using multiple brands and space. In some cases and locations at least maybe not in la but it is their lack of loyalty does that kind of naturally lead to other factors to more consolidation in the space . There is a lot of overlap between many of them but if you look at the data you will see the least overlap is with the other apps and that is i believe because we put a lot of effort into the brand and what the Company Stands for we have a lot of exclusive merchants and we have a Customer Base that we like and that is very unique. What is the reason for the popularity in la you seem to have statistically . And i think that is what helps im afraid to say that it wasnt me but made it cool but it really has an iconic status if you want to have something delivered regardless of the service that you use. I want to go to you for questions. How many of you are familiar with 85 a bill that is coming up. This would be classified as employees. How many contractors do you have currently . Around 400,000. What did that do for your Business Model area to to those that do deliveries on this front, you have. 90 of those that we have on the platform, they were on the platform less than five hours a week to. It is four, five, 600 a month, and its funny that its the number because it is the same number that most americans cant spare when it comes to medical expenses, so we believe that when it comes to income its an important gap they work with labor unions and the governors office. We have the fleet Advisory Board to do the right things for the fleet and i think weve put forward a proposal that makes it very clear that we care deeply about the workers on the platform. We are going to benefit from and have more workers voices on the platform. Questions from the audience if you have a question in the back. If you have a question please raise your hand at any point. This is very innovative and i know other companies also. What other way is again it seems a Pretty SimpleValue Proposition here. What other ways are you looking at not only offering more to your customers, but also optimizing the way that you operate . They will give you a few examples when the company was 2yearsold, we unveiled the delivery service, the first in this space and what that does is it basically allows us to act more like fedex. You can have access and do things that were previously not possible so that means you can deliver new goods extremely fa fast. Year over year on the api side and we were the first to innovate with a Subscription Service and we hope we have some subscribers here over a third come from subscribers so you pay among the annual fee and get these in return. It has done a lot more already. Theres a lot going on you just cant see it. It allows you to have free delivery because we are mentioning a place where someone else placed an order with your locations or when you open up the app you see the great places you can tab onto. From your end is hoping to increase efficiency. We do this very selfishly and they have a great benefit that allows us to be more efficient. We have a question back here. I am curious what kind of interactions you see if it is moving down the sidewalk and people randomly come upon it how do they react. It is a great question. We have 18 that is focused on just the interactions part. You have a few interaction elements and in elimination around the range and a full display. People are really curious and want to interact to the extent we have a more sophisticated program as part of the launch that allows them to give back. We are thinking and i give you an example there is a delivery room in a hotel i dont know which hotel it is that the delivery robot delivers food and room service and the one thing it cant do is press the button to move the elevator so people will ask you to press the button for the robot and it is a great interaction because it actually shows how we can complement each other. We started testing this what if nobody is in the elevator . We started testing it in a community for elderly people, and we wanted to do that in a gated community because we thought if we could figure out a way that is nonthreatening not just those with technology around them, but a group of our society that is less used to it we will achieve great learnings. And its fascinating to see the interactions. We wanted to make it easy to use and to access as possible. Thank you for being here. Two quick questions. Does she collect data because she has fierce cameras there so im wondering how you purchase privacy and what she sees you forgive me if you already said this, do they operate outside of the United States and if not, if so, where do you want to . We do in mexico. In mexico city it is a great market for us. We may spend a further for the median future. The data they collect will do Everything Else, just to sell it to the highest bidder. We think its a unique data aspects because facial recognition, no one will be sa safe. You did make a joke backstage about how at some point it could shoot lasers. Most of the questions are around the robot and its interesting, i wondered if you could talk a little bit about also its not like the actual space inside how efficient is it and cost efficient in terms of humans at some point . I think its important to understand when it comes to innovation whatever you see in any moment in time is not how it needs to be forever. First it had a slow modem but it looked great and captivated people and they have a handle on it so your body could carry it around. Its where we communicate so this is the first version of it. It does only need to work for a few number of deliveries on the platform has to make sense to operate. It doesnt have to be 100 . As a matter of fact we dont think it should but it can do short of deliveries that are more time sensitive and deliver prescriptions from walgreens. So there are cases where we believe what we have today is very sufficient and to be honest most dont take up more space than what is inside of it. So, the question about independent contractors versus employees come at some point i know this is a question with others but at some point is it irrelevant because this is what does the delivery, does it ever gets to that point . I think that it is the same answer as with innovation. It will make things possible but have not been possible before and its impossible to see the other side. Imagine that we have a few thousand of these and they are here to help us fulfill the dream of having an infrastructure that can deliver the goods at zero cost or close to zero cost and it allows the local businesses to distribute that for an extremely lowcost and i believe that it is that is important and helps local economies fly and hundreds of thousands of retailers in the United States compete because they would have a better and faster infrastructure van amazon has. A totally separate question that you talked about how you grew up coming to Silicon Valley. Has it become possible to scale in the San Francisco or the other areas . To be a founder, entrepreneur that was enjoyable because it is very leftfield and unimportant tleft field and unimportantto to give you a debt of time to figure things out. Whatever you do if it has a small chance of success it will get copied and attacked from all sides immediately. Maybe it means the idea we need to think about has to be more fundamental than just how we can get your pizza in 25 minutes. We will look forward to seeing what unfolds in the next few months. [applause] before we move on, i wan wand to say thanks to the premier partners. Intel, oracle and capital markets. I also want to thank our partn partner, New York Stock Exchange last september our guest was appointed as executive assistant director of the criminal Cyber Response services branch. The first highest ranking official at the fbi and top ranking woman on the agenda. She works to protect critical goods, Digital Infrastructure most of th it controlled and ruy private companies. Please welcome amy and andrew nasca. [applause] good morning, everyone. [applause] i think we all had a little too much fun tonight. I am so happy that you are here with us. Economic problems, weapons and terrorism. Should we be afraid to ask. I dont see those things as mutually exclusive and what i mean by that is all those threats that we have seen over time, terrorism, espionage on intellectual property theft, crime now takes on a whole new path in the Cyber Capabilities and the exponential increase in technology that we have seen to enable those things to be a lot scarier. Before i ask about the specifics tell me about your role and what it encompasses. For the fbi, we break ourselves down into separate divisions but one of them that i oversee specifically is focused on the criminal investigations come everything from public corruption, fraud, Violent Crime as well as financial crime. Those are the folks that are looking at the intrusion, without their as well as skimming and business compromise and how it manifests itself and im also responsible for the global predations across the planet. That you have plenty of free time is what you are telling us. One thing this does is in china and weve heard about it in yesterdays town hall people are very concerned about it in terms of Global Competitiveness in the United States. China is clearly their goal is to become the worlds superpower and to do that they are willing to steal information, clearly, steal intellectual property, also to steal military secrets, academic secrets and in the process of doing all those things, they also are investing in part of the supplychain and all those create for us a risk that we see into the positions for them to achieve their goal. What role do you play in pushing back against . They coordinate with a whole bunch of other agencies and that would include the department of Homeland Security and looking at how we defend our networks but also we work with the department of defense on how we may see what is happening outside of the United States and how we might be able to take these actions, but the main goal is accountability, trying to figure out who is responsible for this and how we pulled them accountable so that whether its through indictments were criminal charges or sanction the rule to make that happen. Its different and they are still interested in stealing our government and military secrets but what you have seen publicly of course over the past several years is what we call this maligned foreign influence being able to use and take advantage of our social media, and i hope it makes people question what they are seeing, but they are hearing, what they are reading these real because we have seen instance after instance where they are using those platforms to try to divide us. Lets talk about a specific incident that happened. Several individuals work for the director back a while ago with intrusions basically stealing information. What we did at that time in the runup to the president ial election in 2016 as we realized we forgot to bring al got to bre resources that we have in the fbi together to identify that type of activity and when that is happening. Other agencies need to do the same thing. So, what we did is formed a task force is comprised of what i was talking about earlier if they were division, counterintelligence division, even the Counterterrorism Division and looking at the problem, so we never stopped after those charges to identify whercouldidentify where we see t activity 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 and the election. What we see and we saw scanning activity, and we saw attempts to try to infiltrate these networks that were being used we never saw at least we have no evidence and indication. Theres a host of folks involved in the voter process. How do you feel about that because transparency is an asset and a risk in this line of work when they have activity that looks off and they know is maybe not something that maybe is we are encouraging them to contact us and then the problem is first off we recognize the competitive advantage that the companies have or dont have the problem is we dont do that and potentially not only enabling us to help, but you are also potentially not being able to share that information with other people wer or even to pret the next one from happening. I will say in certain instances when a victim accompanied us contact us, we take that very seriously. We have no obligation if you will to tell the world. I want to understand what we have and what we see. Then lets talk about that and brinbring us in so we can look t together and see if theres actually something to it. I will come back to that in a minute. I want to ask you about the current administration. Trump pushed through the National Cyber strategy, he signed a bill and trained local Law Enforcement in kind of Cyber Security tacticcybersecurity tae broadway to put it. Do you think we are doing enough from the standpoint that could be the executive branch and legislative branch. They function as a government and a society. Then we have people that understand it and really cant get into the zeros and ones, but we also need people who understand policy. We need people who understand how to conduct an investigation. We need those people to bring them together so they can complement each other, and i think that is where we tend to fall short of those can work in symphony. We need collaboration and more people that sounds like you do d we need more money, more laws . I always like to Say Technology is expensive, and so in the people who understand the technology, we are earning support the extreme demands across the board. The government will never be able to compete with the private sector when it comes to salary. We will never do the things you get to giving the government. I would like to see an ability to move back and forth between private sector and government more easily, and i think that that would further develop all of our understanding and capabilities across the board. Lets bring this down but should we be afraid of . First the number one thing we continue to see in the fbi the lowest common denominator where the attacks come from. What we typically see is we dont get the patches because of his inconvenient and we put it off but the perpetual clicking of things you dont know where they lead to its amazing we have the Internet Crime complaint center. Since its existence its taken n about 350,000 complaints and the vast majority of those are the nonpayment, nondelivery but also extortion and four the data breaches when we peel back the way inevitably much of the time it comes down to a person i trusted or from someone i thought was a legitimate sender and that is what led us to today. What share of your work would you say you are concerned about nationstates and highlevel stuff we are obviously concerned about those because there are sophisticated people out there