Its a significant step forward for us. From the kick starter edition. Its six times faster, its got double the memory, twice the usb ports, and its filled with these wonderful new creative projects. Theres make arts, which is a digital easel to learn code by painting characters and fractels. Its immediate, and the game mechanic is step by step. You learn how to type simple commands, magic spells we call them. And you see beautiful washes of color and shapes appear before your eyes. Weve also creative a narrative adventure called terminal quest, which i think some people in this audience who came up on the commodore 64 may enjoy. Terminal quest is a mystery, a narrative mystery told step by step, where you use linux command spells to unlock new powers, save your town and borrow into basically a new world. You go down the rabbit hole, you try to solve the mystery, you dont realize it, but youre learning about the linux command line spells that make a lot of the modern world work. Another area is with counter blocks. Drag and drop these visual blocks, create real code, change games, change music, it can change software. Were added some really cool new features, you can bring in new types of blocks into the mine craft world, much requested ones like diamond. You can make sounds and characters appear before your eyes in the classic game pong. To put it briefly, the new cano is more than anyone can make. More speed, more creativity, it allows you to make real magic. I think we are going to have to leave it there. Thank you so much, alex. Thank you. A lot of cleanup to do up here. Were about to go for a quick break. Id like to remind everyone, follow me on twitter twitter, jordanrcrook. See you soon. More now from the tech crunch disrupt new york conference. The annual conference examining the latest technology startups. Entrepreneurs, investors and media heard from heads of companies involving on demand Delivery Services, electronics, cosmetics and an Online Service providing designer dress and rentals. Tom wheeler and bill de blasio also spoke. People are still filing back in, we have an amazing speaker coming up next. Please hurry back if youre not already in your seats. Here in new york, were obsessed with the on demand economy, were all really lazy or working a lot harder than the folks in San Francisco, and we dont have time to get things. Ive been used to get eggs, coffee, milk, chipotle on demand, ive decided to take it to a new level and start asking for impossible stuff like a sunny day or like a better attitude. Something like that and i think our next guest is thinking along those lines too. Please welcome to the stage our moderator. You all want a good panel, and we will hopefully deliver. Lets do it. This is huge. I guess we should start off with, whats new . Whats been going on . Busy signing up partnerships. Chipotle, starbucks, a few others in the pipeline. I think whats interesting is that after weve been like doing this for three years. In the last six months, what happened is a lot of the larger players in the market, they got out and they started to talking to firms like post mates. They believe there is no market for on demand or same day delivery, and they are trying to close partnerships and were in a fortunate situation to win a few of them. Now, lets for the traditional use case, or for sort of the Main Business of delivering food from restaurants, you have 1 1 2 million deliveries youve done. Youre up to 1 1 2 million deliveries, right . Since last week, were at 2 million deliveries. Wow remember, it took us 10 weeks to get to 1. 5 million. It took us 7 1 2 weeks to get to 2. Its still going faster. There you go. Is a lot of that growth being driven by these partnerships . How much of that is predicated on these new deals you have with fogs at starbucks or chipotle . Those deals are still getting implemented. Starbucks will roll out in june in seattle. The great thing about that is that were fully integrated into their mobil order and pay system. And chipotle was Just Announced last week, most of the growth you see is excluding any of the large partnerships. When you started the business, it didnt start out in food delivery, right . No, it started out as more of a getting someone to run an errant for you, basically . When did you transition into the delivery model and what was what drove that sort of shift . Zero traction. The very first was a service that merchants could use to deliver items that they have in stock. Now, three years ago. We went to San Francisco and signed up 60 or 70 merchants all retail. In furniture stores, electronics stores, in and you know we went in there and said, heres an app you can push a button and sell something to a customer, have that thing delivered in San Francisco. This is the greatest thing in the world. I wanted this forever. Were like, cool, we built it for you. And then nothing happened. There were 1 or 2 deliveries a day, very few deliveries and we called these merchants and are like, whats going on . I dont know, didnt come up, couldnt use it. Person took this stuff. So but what happened at the same time, and this is how this is a great way so think about products sometimes and why its important to listen to what happens with your products. Customers use the app as consumers, like you and i would download it, and try to get post mates to purchase something, they would say things like, go to safeway and get this for me. We had no means of payment. I would get angry as i do, because im german. Youre not allowed to do that. After a while there were so many of these requests, we decided to do a test on the weekend, and on that weekend my cofounder and i clipped our fleet at that point like 25 people in San Francisco with visa gift cards. These visa gift cards were used to make purchases. I dont remember the exact number. We said hey, if you include the hash tag include it now. Were going to go out and purchase that thing for you and on the first weekend, we saw Something Like 10,000 worth of stuff. If you were to launch post mates from now, would it look like digit, would it look like these on demand tech services. Do you like the interface that these guys have . Where do you see yourselves falling . Im a big fan of it, again, the first version of post mates and still today, the custom order field is a super popular thing you have. It allows you to say things like, get me gauacamole from a chipotle. I think post mates was one of these companies that really pioneered the name get it now i think its a great idea creating Something Like creating a human cloud. Looking back, do you think that was you could have spent that time narrowing in on the food category, it seems like when these businesses are successful, theyre successful because they attack a niche market. They go after Something Like organic food or prepared food or food from the burrito place down the street. Thats what we did. For the public we left post mates open for your imagination a little bit. The idea of anything from anywhere helped us, its very sexy. What we did internally, we had a strategy that is based around the principle of food is like books, if you look at food, its a category that has universal demand at a universal pass point. We did the same with food. Today were the Largest Online delivery company, we focused on prepared food. It allowed us to scale the fleet very fast, high competitive usage opinion. Whats next for you in terms of markets that you all might look to enter. Where else can you expand within this notion of food delivery. Would you like to compete or go after someone like inis a car or someone doing deliveries . Yeah, were thinking about having a better grocery product on the road map. Theres a notion were already competing with inis a car. The reality is, its a really small portion of our delivery little time in that category. But for q3, there are a few items on the road map that will make it a lot more attractive, with or without partnerships, well see how that works. There is a lot of interest in that category. Personal hygiene is another category. We think about corner store, thats another category were very interested in. For you all what do margins of this business look like. And how are you doing in terms of revenue. When do you think you might hit profitability. So again we try to build a company that can generate a profit with every delivery. And that is what were doing. I think we actually have a quite healthy gross margin and were very proud of that and were trying to keep that. And were also operating on a path to profitability, in 2016, we want to be profitable or can be profitable as a company if we decide to do that. I think its something thats very attractive, i think it shows that we are able to carefully model a complex business with a lot of moving parts. That were able to drive improvements, and that the product really is a product that customers understand that they pay for the value that it provides. So i started writing about tech here in new york in 1999, 2000. And i remember when i first started writing, there was this Amazing Company that had a cool logo, and a really great delivery service. Huge one of the bigger busts of like that first dot comair rah. How are you not what lessons did you learn from them. You brought up instacard, might you all be cosmo, and how do you avoid that . It was a super interesting company, i believe that they were way ahead of their time, and i mean that they were way ahead of their time that the project that they offered, they werent able to modernize in a way you need to do it in order to have a profitable business. So cosmo was free for a long time, when it wasnt free, it was a ridiculously low delivery fee. They could monetize what they would selanne a take a cut of these things. They had Warehouse Space in manhattan. Crazy expensive at the time, there is an old version of the Balance Sheet available somewhere on the web, and you find some of these things. I know that, because when we started post mates, there was nothing single. A single mention of same day delivery. Which is nuts, if you look at google today. We want to use the city as a warehouse, were relying on an existing infrastructure. Those are two key differentiators. I dont know how many messengers they had. Lets say it was around a couple hundred in new york. They routed them. Most of the it was two way radios, imagine how good of a person, regardless of how efficient you are as an operator that tries to rally your four or five guys, theres a limit to the efficiencies you can derive from that system. In post mates land, very similar to uber and liftland, you have these very big teams of engineers working on trying to make the logistic side more and more efficient. You mentioned sort of the number of the provision of on demand Delivery Services that are now available. You google it and get all sorts of responses. According to crunch based data, theres 1. 28 billion raised this year, for delivery startups of one stripe or another. Thats a lot of money many how do you deal with all of that is it does the industry have to consolidate . I think this is a space where the first mover advantage is there. It may not be a winner takes all market, its a winner takes most market. You look at the 24 markets that were operating in, some of them, San Francisco, obviously l. A. Is our largest city, chicago is large, so is new york. We see that were really able to lock in supply that were able to grow even though were live over a year in some of these markets at a fast pace. Getting into these markets early paid off for us, and locking in the supply side is what comes with that. So again i said it before, i dont want to sound like im repeating the point, but within three years, we were able to build the largest undemand delivery fleet. 10,000 people doing deliveries, twice as much as the closest competitor. If amazon decides theyre going to take this more seriously, when do they acquire you . Would you accept a couple someone earlier said, any offer with a b, ill take a look at everybody would of course you would consider it. Are you talking to them now . No. The job as a co is to do that. And at the same time make sure the reason that this company was created can be fulfilled in either of these scenarios. What does it mean . It means if there is an opportuni opportunity. In return it would mean that we could fulfill this vision a lot faster, that is something that is very entertaining to think about. An acquisition that would look like, yeah, great heres a ton of money now talk about brand x and go in the basement and work on it, is way less compelling. All of the three founders, we come from backgrounds, very middle class, very driven by the idea that post mates can really help i want to shift gears a little bit i want to talk about the collaborative consumption. You have these contractors where youre working for delivery. What does that mean what are the ramifications of that for the broader american economy. Are we creating a class of people who have to do these sort of menial jobs while tech entrepreneurs. You have a malfunction here. They sort of get to chill out and make more work i think its probably americas best Part Time Job. I would love for this to be a full time job in the future. There is around 15 to 20 of our post mates that look at it as a full time job. Its probably a really good Part Time Job. It pays a lot more than other Part Time Jobs. If we look at immediate compensation in San Francisco during peak times. Maybe around 19. Around 17 per hour. Again, median. Thats 40, 50 more than a barrise ta makes. I think its has a lot to do with the approach and how you want to position the company and i think were not running around and claiming that this is the greatest full time job in the world. This is a really solid job our platform reflects that. What is a typical post mates delivery guy, employee. Do you have a sense of their demographics . People that have another job or maybe another Part Time Job. We do these surveys to the fleet, and we obviously talk to them, and we have we get together in all these markets. The flexibility is what people like is the number one reason. Is the income, the income at the times when they want it. And thats a huge thing. Who they are i mean, theyre just amazing. I really believe that which is something i think Corporate America should think about a little bit. There is a movement that is a lot against the 9 to 5 clock job. There are people out there that are writers, artists, that probably in the past have to have specific jobs in order to provide an income that provide incomes like post mates where they can be active in a much more flexible setup. You dont think that in some ways. Youre not worried at all about the labor pool that is post mates bread and butter. Theyre not going to go away as sort of the economy improves and you get further out from the financial crisis, which was part of a motivator for people to take on these Part Time Jobs. I dont think so. I give you an example. Hes doing it more for fun. He posted about his earnings, i think he worked for three hours on duty, during peak times. He made 98 doing a bunch of deliveries. That is substantial income. I believe theres going to be room for that. I think its the company has to adjust along these changes, but for now, i think this being a Part Time Job is attractive for a lot of people. What is the weirdest thing that youve ever seen anyone have to deliver through most makes. I get this question asked all the time. Im glad to know im so basic. Im such an idiot, that i really never ever think before it. I tell the same story every time. There must be something beran he can totally, at night, people get whippets delivered. We have the weed startup earlier today. The delivery that i reference to a lot was a bottle of champagne and a pregnancy test. What libertarian you are and which side you are on. Those are kind of people are having things dropped off on one side of town . They do it, but most of it is purchases. I think with that, im going to say thank you so much for the time, sir, its a pleasure. You all have a good one. Enjoy the rest of the show. Who here has heard of a term called Net Neutrality . Were going to learn something today then. What would happen if he did the one elevator stopped on every lane, this is a fast lane, you just have to pay extra for that. Fcc chairman please give him a huge round of applause as well as our moderator. I like your jacket. Thank you. Welcome to the yearly gathering of the nerds. Its only the new york ners. S some fly in on this, actually. Nerds on the train. Before we get to Net Neutrality, were going to do a lot on that. Recent news, the proposed comcast Time Warner Cable deal. 45 billion is done. Correct. And today in its earnings comcast reported a 99 million charge related to the transaction that failed. I want to ask, were you surprised when comcast zoided to drop the ball on this and walk away from it . No, i think it was a responsible decision by brian roberts. And i what he said when he said its time to move on. I think perfectly encapsulates the reality, why why go and fight this through the courts or whatever the case may be, lets keep looking toward the future. I think thats one of the things. Would it have worked . Would they have pulled the deal off . Or were they doomed and it was not going to work . I dont know what they thought. What i think is it was a good decision. It was a good decision because it would be a long drawn out process to challenge our decision. And two, because of the whole attitude of its time to move on. Lets look for the next thing, this is an industry that is going like this, why do you want to keep fighting that fight. Do you think this is going to be a poison pill for future large combinations of this sort. I think we will look at each of them on the merits. One of the things is that it was incredibly data driven. La. An awful lot of economic data, a lot of market data a lot of data inside how the industry operates. Do you think the define the Public Interest in this case. Theres a broad definition of the Public Interest<