These jigsaw blocks. They have real code, by the way. That python gets pumped in. Instead of playing by the rules kids are remaking the rules. They are warping into existence a sky jail, a waterslide. They are teleporting around the map. We want to make its feel like neo in the matrix. They think it is an artificial world, then see that it is more human than they think. Gaming, by the way, is a beautiful metaphor for this. Natasha you have some additional product today. What are you doing what is the new kano . Alex it is a significant step forward for us. It is six times faster, has double the memory. It still is these wonderful creative projects that make art. It is a digital easel to make characters. It is very immediate. The Game Mechanics are stepbystep. You learn how to type simple commands, we call the magic spells. You see colors, and shapes appear before your eyes. That is a narrative adventure called terminal quest. It is a mystery. It is a narrative mystery told stepbystep, where you use command line spells to unlock new powers, and borrow into a new world. You go down the rabbit hole and try to solve the mystery. You dont realize it, but you are learning about the command lines that make a lot of the modern world work. Another area is with kano bloc ks, which is our coding arena. You can change games, change music, it should chain software. You can bring a new types of blocks into the minecraft world. You can maklee sounds appear before your eyes. To put it briefly, it is still the computer anyone can make, but with more speed, more creativity, and more of a sense of play. It allows you at the same price, to make real magic. Natasha thank you so much alex. Alex thank you. [applause] jordan we are about to go for a quick break. Would like to remind everyone to follow me on twitter. See you soon. More from new york tomorrow night on cspan. Radio personalities discuss the future of the industry and the changing landscape of political talk shows. Here is some of the talkshow with my friends has a mike francesca. You have to, whether you are in management, or sales, you have to marry what is the live, local base of radio. That is where everything starts. And married a digital part of this. That is not going away. It will continue. Now everyone carries a transistor radio. We all have one. Everybody has one. Everybody has a radio in your pocket. It cant get any better than that. That is an advancement from where we were 20 years ago. Radio was just in a car, drive time, dont worry about the house. We took care of that with simulcast. Now, you can touch people wherever they are anytime anywhere. That is some of the conference we will have tomorrow on cspan. Our coverage of the annual conference looking at Tech Startups continues. They heard from the heads of companies with electronics, cosmetics, to Online Services providing designer dresses. Jordan ok, people are still filing back in. We have an amazing speaker, so please had back. Here in new york, we are obsessed with the ondemand economy. We are all either lazy, or working harder than the people in separatist go. San francisco. I had decided to take on demand to a new level and start asking for ridiculous stuff like a sunny day, or a better attitude. I think i would next guest is thinking along those lines. Please welcome him along with john sheave or our moderator. You wanted a good panel, and hopefully we will deliver. Lets start off with what is new at post makes . What is going on . Is he signing on partnerships chipotle, starbucks, a few others in the pipeline. What is interesting is that doing this for three years, in the last six months what happened was a lot of the players in the market got out and started talking to firms like post makes mates. They are trying to close partnerships. For the traditional, or the Main Business of delivering food from restaurants youre up to 1. 5 million deliveries since last week, were up to two million deliveries. To the seven and a half weeks to get to 2 million. It is going faster. Is a lot of that being driven by partnerships . Those deals are still getting and lamented implemented. Starbucks will be in june, in seattle. Chipotle was Just Announced last week. Jonathan when you started the business, it did not start out in food delivery. It started to get someone to run an errand for you. What did you transition to the delivery model . What drove that shift . Zero traction. The first version was a service that merchants could use to deliver items that they had in stock. We went to San Francisco, and furniture stores, electronic stores, we said here is an apt that you can app where you can push a button and have it delivered. The merchants thought it was the greatest thing in the world. We thought cool, we will build it for you. Then nothing happened. We had one or two deliveries a day. We call these merchants to ask what is going on . They said i dont know something came up, we couldnt use it. But what happened at the same time this is a great way to think about products sometimes customers used the app as consumers, and they would try to get into purchase something. It was a go to safeway and get this for me. I would get angry, like i do, because i am german. You arent allowed to do that. After a while, there were so many of these requests, we decided to do a test on a weekend. We had 25 people at that point. These are gift cards. There used to make purchases. We set up a little newsletter to our user base, and said if you include the useitnow, we will purchase that for you. On the first weekend, we sold 10,000 worth of stuff. Most of that was prepared food. Jonathan if you look at where the business is today, if you were to launch it right now would it look like one of these ondemand Tech Services . Do you like the interface those guys have . Where do you see yourselves falling . I am a big fan of it. Even today, the custom order field is a super popular thing that you have. It allows you to say things like get the extra kwok a moly guacamole. Even when we dont have inventory, i think we were one of those companies that really pioneered it. I think it is a great idea. Jonathan do you wish, looking back do you think you couldve spent that time to narrow in on the food category . It seems like when these businesses are successful, they are successful because they attack a niche market, and go after Something Like organic food, or prepared food. That is exactly what we did. For the public, we opened for your imagination the idea of anything, from anywhere. What we did internally was have a strategy that is based around the idea that food is like books. It is a category that has universal demand, at a relatively low price. There is unlimited inventory in prepared food. Just like amazon used books to scale very fast, we did the same thing. Now we are the largest ondemand Delivery Company because we focused on prepared food. It allowed us to scale the fleet very fast. We had a high repetitive usage. Jonathan what is next for you in terms of market . Where else can you expand within this notion of food delivery . Would you like to compete with Grocery Delivery Services . Were thinking about having a better grocery product on the roadmap. There is a funny notion that we are already competing with them because you can get whole foods or trader joes, delivered. We have invested very little time in that category. Four for q3 there are items that will make it much more attractive. That is a lot of interest in that category. Personal hygiene is another category. To give a corner store that is another category we are interested in. Jonathan for you, what do margins at this business look like . How are you doing in terms of revenue . So, again we try to build a company that can generate a profit with every delivery. That is what we are doing. I think we have a quite healthy growth margin, and we are very proud of that. We are trying to keep that. We are incorporating more paths to profitability. We want to be profitable as a company if we decide to do that. I think it is something that is very attractive. I think it shows that we are able to carefully handle complex businesses. We have been able to drive improvements. The product is a product that customers understand that they pay for the valley that it provides. Jonathan i started writing about tech in 1999, or 2000. When i first started, there was an Amazing Company that had a cool logo and a delivery service. One of the bigger of the first dotcom era. What lessons did you learn from them . Could you all be cosmo . How can you avoid that . It was a super interesting company. I believe they were way ahead of their time. I mean that they were way ahead of their time with the product that they offered. They were not able to monetize in the way that you need to do have a profitable business. Cosmo was free for a long time. When it wasnt free, it was a low delivery fee. They at the idea they can monetize exclusively on what they would sell, and they would take a cut of these things. They also ran warehouses. They had Warehouse Space in manhattan. Very expensive at the time. There was an old version of the Balance Sheet on the web, and you find some of these things. When we started, the was not a single mention of single same delivery except cosmo. We want to use the city as a warehouse. Those are two key differentiators. Jonathan i dont know how many messages they had, lets say it is around a couple hundred in new york. They routed them manually. It was two way radio. Imagine how good of a person regardless of how efficient you were, it is a limit to the efficiency you can derive from that system. This race similar to huber uber. Yeah these very big teams of engineers trying to make the logistic side more efficient. Jonathan you mentioned the number or profusion of ondemand delivery services. According to crunchbased data, the was 1. 2 billion raised for delivery startups. Holy shit, that is a lot of money. How do you deal with all the competition . Does the industry have to consolidate . It will happen at some point. What is, in my opinion crucial as of the first advantage is there. Admin update that the winner takes all markets, but certainly most it may not be that the winner takes all markets, and certainly most. L. A. Is our largest city. Chicago is also large, and new york. We were able to grow at a very fastpaced. Getting into these markets early paid off for us. Looking at the supplyside is what comes with that. I have said it before, i dont want to repeat the point it was over 10,000 people doing deliveries. That is twice as the closest competitor. Jonathan for now. But if amazon decides they want to take this seriously, with a just acquired would you accept some of it any offer with a b i will take a look at. If you got a billiondollar offer, would you be like of course. Of course you would consider it. Jonathan are you talking to them now . No. Jonathan are you sure . Yes. Your job is to make sure that the reason his company has been created can be fulfilled in either of these scenarios. What does that mean . It means that if there is an opportunity to continue to work as part of something bigger, and return it would mean we could fulfill this vision faster, that is something that its very entertaining to think about. An acquisition would be great, here is a bunch of money, now talk about brand x, i think that is way less compelling. All of the three founders, we come from backgrounds that are very middleclass. Theyre very driven by the idea that we can really help local businesses and i think seeing that through is very important for us. Jonathan when this book and the phone i want to shift years and talk about this notion of the ondemand economy. You are acting as a Service Provider where you have contractors working for you. What does that mean, looking out, what are the ramifications of that for the broader American Economy . Are we creating a class of people who let the do these medial shitty jobs the of a malfunction here. Jonathan i never good at this. While tech malfunction ors get to chill out and make orders of magnitude more . I dont think so. I think it is different markets that get created. I think it is probably the best parttime job. I would love to be a fulltime job in the future. That are around 15 or 20 that look at it as a fulltime job. But it is probably a parttime job. We pay better than other parttime jobs. If you look at median compensation in peak times, that is 70 per hour 17 dollars per hour. That changes the approach and how you want to position the company. We are not running around in claiming this is the greatest fulltime job in the world. We believe in a more honest approach. We think this is a really solid parttime job. I think our platform reflects that. Jonathan what is a typical delivery guy employee . What they look like . What do with a look like . It is people that have another job, or another parttime job. We do tjhese these surveys to the fleet. We get them altogether. The flexibility is what people like as the number one reason. The second is the income, especially at times when they want it. Who they are they are amazing. I really believe, which is something Corporate America should think about theres a movement that is against the 95 00 jobs clock jobs. You can now the platforms like uber where they can be active in a much more fluid set up. Jonathan you were not worried about the labor pool, the guys providing the service they wont go away as the economy improves, as the financial crisis gets better . I dont think so. I will give you an example, the founder of scribe was it was made for a few days. He posted about his earnings. He worked for three hours on duty during peak hours. He made 98 doing a bunch of deliveries. That is substantial additional income. I believe there is always going to be room for that. Even if things are changing, i think a company has to adjust with these changes. For now, this being a parttime job is very attractive for a lot of people. Jonathan what is the weirdest thing youve have ever seen anyone have to deliver . What was the craziest order . Ims this question i am asked this question all the time. Im such an idiot, i dont think about it thoroughly. I tell the same story every time. There must be something better. Anecdotally, at night, people get whippits delivered. Jonathan we had the weed startup earlier today, now this. We had a bottle of champagne and a pregnancy test i reference that a lot. You can figure out which side of the ball that those are things like that. Jonathan people are still doing that right . Having things dropped off from one set of town to another . Most of it is purchases. Jonathan with that, i will say thank you for the time. Have a good one, enjoy the rest of the show. [applause] jordan ok. Who here has heard of Net Neutrality . Okay, we will learn something today, then. I was just talking backstage with our next guest. He was talking about an elevator that had to stop at every lane. Scc chairman tom wheeler is joining us. Please give a warm welcome, as long as along with alex wi lhelm our moderator. It matches your code. Coat. Alex thank you for coming. Welcome to the yearly gathering. Tom is this the new york nerds . Alex some of them fly in actually. Before we get to Net Neutrality, we will do a lot on that. Recently, the proposed comcasttime warner cable the old is done deal is done. I want to ask, were you surprised when congress dropped the ball on this . Tom no, i think it was a responsible decision by brian roberts. What he said, when he said it is time to move on, i think it perfectly encapsulates the reality. Why go and fight this through the courts . Lets keep looking towards the future. Alex do you think it wouldve pulled the deal off . Tom i dont know what they thought. What i think is that it was a really good decision. It was a good decision because it will be a long, drawn out process. And two, because of the whole attitude about it is time to move on. Go to the next thing. Why do you want to keep fighting that fight . Alex do you think this will be a poison pill for large accommodations . Tom i think we will look at each of them on the merits. One of the things that was really key about the comcast review was that it was incredibly datadriven. 14 months this lasted. There were a lot of economic data, and awful lot of market data, and awful lot of data inside how the industry operated. I think that is why how you want to make decisions. Alex do you think the average consumer would of been harmed if visit been allowed to happen . Tom i was concerned it was not in the Public Interest. Alex define that, in this case. Tom there is a broad definition. Will the market continued to operate . What is the impact of the future of video, and video competition . What is the future on cable rates . Are there offsetting Public Benefits . We can to the conclusion, no. Alex it would reduce competitive environment for the average consumer. Tom that was what we said. It is interesting. Competition is a key component of what is in the Public Interest. The justice department, and we, were going on parallel paths. They have very strict competition rules and decisions that they have to make. Ours is fuzzier in terms of the general Public Interest. Alex ok. Now, tom that was a warmup . Alex that was the opening bit. During the Net Neutrality saga the massive outpouring of Public Comment was interesting. Were you surprised at the amount of comments that came in . What was the early point where you thought wow this is bigger than we thought . Tom there was a day early on when we had 150,000 comments being filed, and you go woah. That is why this debate, this decision, was so important. Because those 4 Million People who were filing with us, and not all of them were pro. It was about 3 4 were pro. Alex that still means that with the there were a Million People that didnt like the deal. Tom this proved the power of an open internet to free expression. It happened that that issue being decided, and that ability to communicate using that technology, happened to coincide. Alex when you read these comments, how do they affect your rulemaking process . How do you measure that . Tom obviously the total impact , the total number of comments is something you have to take notice about. This is not something where you make a decision base