Transcripts For KNTV Press Here 20160501 : vimarsana.com

KNTV Press Here May 1, 2016

Zbla good morning, everyone, im scott mcgrew. On tuesday amazon announced it would join the countless numbers of services delivering lunch to San Francisco. As amazon really means business, offering free delivery of your health smoothy or greasy burger with no upcharge. And amazon joins Services Like uber eats and door dash in the food delivery business. Door dash Just Announced a deal with carls jr. And 127 million in new funding. Tony chu and troy wol verton of the mercury news. I want to talk about that funding in a second. There is one bit of business, our set looks different and thats because were actually borrowing the set from our friends at telemundo to do the show while we build a brandnew studio. Might switch to spanish. Lets hope not because i can get by with a Little French and thats it. Lets talk about amazon. This is brandnew news since you and i arranged to have you on the show. Amazon swooping into your business. How is that going to go . Were very excited that folks like amazon are valid dating the thesis that we started the business three years ago for door dash, to empower local economies and serve tens and thousands and hundreds and thousands of restaurants in every city. Weve been doing that now in 24 major metro areas and were very excited about the momentum weve built. I think of it like an airline. New Airline Comes in and starts offering lower fares and youve got they are going to offer free for a while. You dont offer free. Theres a little upcharge for the food which i totally understand why. You have to pay your drivers, right, got to make a profit. They are taking a loss on every burger that gets delivered. Not to mention they come with millions and millions of builtin subscribers, right, to amazon prime, not yet, just in San Francisco and other cities but eventually. How do you compete . One of the beauties of Silicon Valley, theres never been a company that does everything. Thats the premise upon which many startups have been founded. Some have become Large Companies like facebook or google. The same could be said for door dash, built with a focus how to you build very sophisticated and complicated technology and logistics and offer it in a very simple way in something as accessible and convenient like food delivery. We plan to do this not only in food but other types of businesses as well. Businesses like what . Food is certainly one major part of the consumption process for all of us at the table. But in your house theres other types of things you purchase as well. Door dash was created with the mission to create Delivery Networks for local businesses. Thats why we started the company. In fact, part of the story is very personal to me. My mom has been a Small Business owner her entire life and its by working through her businesses that i understand all of the different types of things she has to deal with. One is to figure out how to get more p business into the store give me a for instance. Food is an obvious one. But what might else would you get into . Take about what you purchase in a week and what occupies your home. Door dash starts a very High Frequency and intimate relationship with all of the families, individuals and professionals that we work with. And obviously those people buy other types of things on a weekly, monthly basis as well. A lot of this really fantastic experiment of offering selection into a marketplace that never offered delivery before. 85 of restaurants in america dont deliver. When weve introduced that selection, i mean the results have been phenomenal. We dont expect anything different when we do that and bring other types of selection into the marketplace. Are you talking about groceries and things that are going to compete with Google Express too at some point . Well, its much less about focusing on our economy tigs and much more about focusing on our customer. What is it that our young professional wants . What is it that our families want . And if we can do that and best serve those customers, it matters less what selection actually we bring into the marketplace and more what service were able to offer. Theres i know four or five Major Players in this area, well funded players, do you see all of those continuing in the business . Do you think theres going to be consolidation and if so, why would door dash be one of the winners . I think a couple of comments here. First, its a very large market but i think sometimes misunderstood. 85 of business of restaurants and 99 deliver so all of these companies youre seeing come into the marketplace are part of this enabling this large experiment to see what will happen. And the big thing that changed now versus 15 years ago when some of these ideas were tried before, is that people were a lot busier. The percentage of dual Household Incomes in the United States have grown many orders of magnitude. If you look at many studied. I do things now that i would be embarrassed if my parents knew i was doing it but it is a cultural change. Whats 4 bucks to save the time that i would have there are a couple of restaurants that dont want you to deliver their stuff. Do you understand where they are coming from . In and out was one of them, stop saying youll deliver in and out . First of all, theres tens and thousands of merchants who love the fact i want to talk about the ones who dont like. Lets talk about this one time. But do you understand where they are coming from and saying, we want to control the process entirely . I do think you have the absolute god given right to deliver it. If somebody is going to buy it, they can do with it as they please. Running a three sided marketplace is very complicated. And one of the ways that we have to achieve success, we have to find Product Market fit with each audience and that includes merchants, with the merchants, one of the first things we want to do, make sure theres success and high quality for all parties involved. Sometimes People Choose to par take and continue that relationship with us and other times they dont. The fact theres tens and thousands of these businesses who are doing it with us and seen not only sales increases but additional job creation for their staff. Theres a local barbecue place here called annies barbecue. Have you been to it . Its three miles from here. Annies barbecue after working in two months with door dash has decided to give everyone in their store a raise. Its those stories along the tens and thousands and hundreds and thousands of other stories that have allowed us to serve the communities that we have impacted. Given the dispute youre having with in and out and some other places, do you think that it would be wise to get permission from these restaurants before regardless what the legalalty is, do you think it would be wise to get permission before you advertise you can deliver for them . We always notify merchants that were testing the relationship in the beginning. At the end of the day if theres not a winwin relationship for all parties involved, whats the point . No one wants to continue that in a healthy eco system. For us again, its about the fact that when were able to create fantastic experiences, which is 99. 9 of the time, were able to achieve the mission that we set out to build, which is to empower local economies. What about the employees . Thats been controversial too and weve seen lawsuits, right, with uber and other companies. How do you think about it . Are you looking at all into transferring your employees from contractors to actual employees . Our dashers are very important part of the marketplace. And to us again, finding Product Market fit with each audience with dashers in this case, in particular is reelgly about offering them the most amount of flexibility that they want and in fact they are seeking flexible parttime work. And thats really part of the reason why theyve come to Services Like door dash. As long as we can provide that opportunity as well as receive their input into the marketplace, thats how we find Product Market fit with our dashers. I do genuinely believe lots of door dashers and things doentd want to be employed. Im sure there are some that do. Let me ask about the funding. The socalled down route, youre latest amount of funding got the press of it wasnt as successful as you wanted. Was a fair coverage of the funding, 175 million or something. We raised 127 million, very excited about that milestone but to be candid with any financing its just one item on a to do list. Its not really an ending point of in many ways its a starting point to continue to build the business. And for us, we thought how do we raise the money we need to build the business and how do we do it on terms that set us up for success for the long term . We think of door dash as on a multidecade journey and were two and a half years old. Theres a long ways to go. At the end of the day the score will take care of itself of who can best serve our customers and dashers. One more question for you, you mentioned the barbecue place and mention it again. Annies . Andys barbecue in the south bay. Fantastic. Tony xu, thank you for being with us. Thank you for having me. San franciscos Favorite Airline will be no more. Welcome back, many Young Companies in Silicon Valley are eager to ipo because theres lots of money to be made. With public trading comes great responsibility. This past week we saw both apple and twitter punished by investors for their missteps. We saw yahoo forced to add itsz arch enemies to its own board of directors. Problems that are at root because they are public companies. Riverbed technology was a publicly traded company until this time last year when it sort of did the opposite, it went private. Pulled out of the nasdaq and into private hands. Jared has been in charge of that company all the time, to now private company, glass door says hes one of the best ceos to work for in all of high tech. Congratulations on that. Thank you. What is the advantage . It wasnt necessarily your choice but what is the advantage now that you are the ceo of a private company as opposed to a Public Company . Its been a year now and my quality of life is up and stress level is down. Why . You start out being private and your goal is to build longterm value in the business and develop technology. Youre public and youre in this world of 90day sprints where you have a bunch of wall street people who are like mad high yeen nas on your ankles i like the imagery. It changes the way you spend each day and you can drive the value of the company. Being private we have certain transitions we needed to make. We needed to be agil to get ready for the cloud world. Weve been an enterprise Infrastructure Company and the ability to make the changes much easier, much quicker. More fleet afoot. Absolutely. This wasnt totally by choice, right . No, like everyone we had a growth slowdown and everyone in the category is growing between 0 and 10 and wall street likes short term revenue growth. That put pressure on our stock price. We got an activist and friends into the stock and they wanted to make a profit. So my job was to decide whats the best outcome for our shareholders, go it alone as a Public Company or seek a good price for shareholders now. One of the private owners is the ontario teachers retirement plan. They must know a lot about networking. We have 70 new owners. Its a leveraged buyout, the employees and manager put in 30 million of their own pockets. We had a private equity sponsor that brought together investors but we have such people as the state of new york Teachers Pension Fund and tube workers union. Thats option. I would have picked that one if my research had been better. Theres good returns for these funds going private. Its been good for us. Weve had its been a year, weve had four exceptional quarters in a row as a private company. By being private i was able to do the things that enable us to focus on the core product of our business. What are the down sides, have you having a harder time attracting employees . Are there other things, more trouble being private . Thats an excellent question. Ive done everything, three ipos, secondariries, acquisitions, never done an lbo and gone private. I was curious and ive been able to recruit the best people you can imagine in the industry. I got a new chief Strategy Officer who had been sisco 20 years and new chief marketing head of world wld marketing the emc. They are having the chance to build value and work in a great company. Is part of the reason for the attraction is that there is another exit down the road . Whats next . Typically when you go private, you stay private for a three to fiveyear window. We were a little unusual in that we actually gave new fresh stock in the company, every single employee 100 , which is not the norm but that was important to me as a Silicon Valley head quarter to keep that part of the culture going. Were in a year and we may be as close as 24 months from the next ipo already. And youve nailed pretty good quarters already. Yeah. Made the place look attractive, put on a fresh coat of paint. We pivoted and sold the division to pbroe cade. Consolidated some product lines. I bought new business, new company in germany where i was yesterday that does Software Defined networking, were going to enter the main market of networking directly in the face of sysco with the most i dont want to get into the technology, its a little geeky but you can be much more fleet afoot. You can identify something maybe as quickly as sysco does but you may be able to fewer meetings and get the product out there . Were not facing a Large Installed base of Older Technology that we have to protect with big Profit Margins from the past. Were able to go forward in the cloud world, deal with the world as it is with fresh Business Models and sell by subscription and license and not have to worry about imploding if its so advantageous to be private and given all of the headaches you said about being public, is there anything you get out of being public besides the big payoff . So, being public theres liquidity, which is important to investor and employees and easier to get press when youre public. Last year the one challenge we had, we put out press releases where do they go . They used to be on Yahoo Finance and now they are on business wire. Thank you for the press today. Were very happy of this. Speaking of yahoo ive got to reserve time for my next guest. With the attack on business wire, i need to leave it there. I want to give you credit, you were the founder of the company, ceo when it was private and ceo and ipo and ceo all the way through its public and even when the stock fell, youre ceo now. And so your employees what they say must be true. Thank you very much. Thank you for being here. Its a pleasure. San franciscos Hometown Airline has been sold. Travel expert Chris Mcguiness coaches us on first class options when press here continues. Welcome back. Every spring the travel magazine conde nast names the best airline in the United States and every spring that award goes to Virgin America airlines. It did this year, did last year and did in 2014, the same in 2013. Frequent flyers will tell you Virgin Americas upscale experience reminds them much the golden age of flying, the days of panam. So it was with heavy hearts that we learned last month Virgin America will be no more. Its sold to Alaska Airlines. Now in times of grief, we turn to friends and in this case we turn to chris mcginn he is, a travel expert blogger and consultant at cnn and bbc. Why cant we have nice things . Well, unfortunately, in this case nice things didnt really make that much money. Virgin america didnt make money until the price of oil took a nose dive a couple of years ago. They just started to show profit so back in 2013 they were still wondering whether or not virgin was going to be had a viable future. Because we wouldnt pay extra for those wonderful things . Thats right. That drives me crazy. Pays 30 extra and they treat you nicely. That was the problem is that they had to compete on price with other airlines and people were not willing to pay 30 or 40 or 50 more for mood lighting. Does alaska need them or does virgin need alaska . Sfl i think alaska needed virgin in order to grow out of where its been stuck in seattle for all of these years. If it really wanted to compete toe to toe and get under the nose of delta and see eightle and start competing, they had to expand. They saw Virgin America down in california, one of the the largest air travel market in the country when you look at both l. A. And San Francisco. Its giving them a Good Opportunity to get a foothold in the market, go after business travelers and really try to expand. More importantly, will we still have mood lighting . Do we have any sense how alaska will run virgin . Is this about getting the routes or getting the airlines. I think its more about getting the routes and getting in terminal 2 at sfo and good market in los angeles. They are not going to keep two distinct brands, right . I dont think so. The important thing you have to remember, this is going to take a while. I met with Alaska Airlines folks here in San Francisco earl

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