Kara Swisher · 20:50
Allowed people to think that's the way it is. You can do anything you want, you know, anywhere at time. And so it's like giving your children sugar, sugar, sugar, and then saying, oh, you know what? You can't eat donuts, and they go crazy. Yeah. Like, that's why they're getting all this crazy, which I think is the problem. But what do you think is gonna happen to the FTC? Well, maybe we'll talk about that predictions.
Scott Galloway · 21:07
I don't know. I...
Kara Swisher · 21:08
Alright.
Scott Galloway · 21:08
Yeah. I'm not sure.
Kara Swisher · 21:09
You don't know? We'll see if our FTC has any juice. I I... You think they will. I don't think they do. After the break, wins and fails.
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Kara Swisher · 23:09
Alright, Scott. Wins and fails. Wins and fails.
Scott Galloway · 23:12
Do you have any... I've been doing all the talking here. Do you have any wins and fails?
Kara Swisher · 23:15
I think the win... No. That's okay. You do that all the time.
Scott Galloway · 23:18
It's okay. I like it
Kara Swisher · 23:19
because you're very smart.
Scott Galloway · 23:20
That's called pivot.
Kara Swisher · 23:20
I'm used to it. That's called pivot. I think... I know. I know. I know. So, I think, the Slack IPO, I think that'll be interesting. I think I think, it's a great product. I wonder... You know, looking at the the finances, I'm a little worried about them losing so much money, but... And I do still think they should get bought. That's always been my thought. But I think that was a great win for Stuart Butterfield. It started off as a company. I visited him in Vancouver. He had a gaming company, and I'm actually blank on the name every time. And it was a gaming company that failed, and they had made Slack as a communication system for the gaming company, and they turned that into a business, and and it was good that their VCs, and actually it was Entrees and Horowitz, just let them keep the 5... The remaining $5,000,000 they had left and built Slack, and now, obviously, everybody's getting a payoff. So I think that is a win in my opinion.
Scott Galloway · 24:06
I agree with... So hold on. Stuart Butterfield. I'm gonna go out on a limb and assume this is a white male.
Kara Swisher · 24:11
Okay.
Scott Galloway · 24:12
Stuart Butterfield?
Kara Swisher · 24:13
Mhmm.
Scott Galloway · 24:14
Isn't that the Butler from a family affair? Isn't that the Von Trapp family? What is that? Stewart Butterfield? Oh, my God. I think we've met the whitest man in the world.
Kara Swisher · 24:25
Butler from Family Affair, which you're dating yourself as Mr. French. But go ahead.
Scott Galloway · 24:29
Let me guess. He likes to speak at Ted and he wears cardigans. Okay. So, my win is Chewy. Chewy.com went public, dollars 14,000,000,000 market cap up, I think 80% on the first day of trading. He connotes something really interesting and that is, is there a strategy or that there may be a strategy for carving out space in the world of e commerce as a distribution platform for other companies and specifically going after aspirational distribution. Now what do I mean by that? Amazon is algorithmically
Kara Swisher · 25:01
distribution. Okay. All right. Okay.
Scott Galloway · 25:02
Well, okay. So Rolex Put
Kara Swisher · 25:05
a parenthesis over here.
Scott Galloway · 25:06
There you go. Rolex won't distribute through Target. And they spent a ton of money trying to figure out at LVMH and they built out 700 stores. Apple, the gangster business strategy the last twenty years, let's invest in distribution that matches their foots to the quality of our brand. And I was with AB InBev earlier this morning and they asked, well, what would you do if you're AB InBev? I said, full stop, you have amazing brands, have amazing product, But where's the Sephora of drinks and alcohol? I said, and I use these exact words. I said, where I buy beer, I'm half expecting to get shot. These are it's terrible distribution. It's gas stations, it's liquor stores, it feels really sketchy. Where is the Sephora? Where is the restoration hardware or the drinks industry? So distribution matters. And because of their algorithmically driven merchandising model, essentially Amazon is terrible distribution. It's kind of low end, lowest price convenience. Okay, we get it. It's sort of the target in the Walmart times 10 of the internet. In the pet food industry, mean, you and I can both relate to this. Every year people spend more money on their pets. It's been the category that keeps on But if you look at the distribution, it largely bifurcates into these large big box Petco and PetSmart that aren't that aspirational or to family run pet stores that smell funny. There's no Williams Sonoma of pet stores. And so they saw an opportunity, all these high end organic brands where they like love the lamb to death before they chop it into parts for Muffy or whatever. All these high end
Kara Swisher · 26:36
Like Blue Buffalo. Exactly. Blue Buffalo. That's my
Scott Galloway · 26:40
All these high end products need better distribution. And Chewy said, we're going to massively over invest in consumer service. We're going to pull a play out of Amazon. The CEO there is from Amazon. Going to lose money like a bandit, but we're going to have incredible service, but we're going to cater to high end brands. And so the learning here is that probably the best way to try and combat Amazon or carve out a space is to go after, say, we're the aspirational point of distribution online. Zalando did it in Europe pretty successfully. But good for them to have a $14,000,000,000 market cap. And I fail to see how they're going to grow into that as the three key components, Kara, of the real gangster stock appreciation, I believe are one explosive growth, two recurring revenue, and then three network effects. And they really only have one, although they do have a membership model that works potentially pretty well. So two of the three, but it's hard to see how they go into that market cap. But bottom line, it's great to see an e commerce company doing well. It's also great to see
Kara Swisher · 27:36
May I just say, is this pets.com? May I just ask, is this pets.com reborn?
Scott Galloway · 27:41
Oh gosh, that hurts. Is this pets.com? I don't think so. These guys have billions of dollars in revenue, huge customer loyalty, and they're losing money. But
Kara Swisher · 27:49
pets.com might have been right. It might have been right. Correct?
Scott Galloway · 27:53
One of my first companies got bought by Potopia, their competitor. I don't know that
Kara Swisher · 27:57
Potopia, remember?
Scott Galloway · 27:58
Yeah, do. Well, trust me. I remember Potopia. I still have a lot of shares in Patopia if you want to buy them. I don't think, yeah, I think this is a better business model. It's a better run company, more top line revenue growing faster. This is a real business. And it's worth something I just don't know if it's worth $14,000,000,000 but only the one of two sole unicorns in my home state Florida. Quick trivia question, can you name the other one? Chewy.com is one. Miami, there's one other think about it, Third largest economy or third largest state in the union, we only have two unicorns. Do you know the second?
Kara Swisher · 28:33
Hangingchads.com. Hangingchads. Stealingelections.com.
Scott Galloway · 28:36
There you go. That's us. Disney.com. No, it's Magic Leap, the VR company, which, you know, I think is going Yeah.
Kara Swisher · 28:45
Magic Leap.
Scott Galloway · 28:46
Going going nowhere fast.
Kara Swisher · 28:47
The truth. Right down there. We'll see about that. We'll see about that. Alright. A a fail? Do have a fail
Scott Galloway · 28:53
Well, my fail is gonna be sender's fear mongering about, you know, unintended consequences, but I've got a new one. Yesterday, Sheryl Sandberg was in was in Cannes talking about
Kara Swisher · 29:04
She was in Cannes. What do you call it? It's Cannes. What are you calling it over there?
Scott Galloway · 29:08
No. It's not even... I thought it was Cannes.
Kara Swisher · 29:10
Cans. Okay.
Scott Galloway · 29:11
Good. And I've... I found out from my driver's notes. It's gone. Gone. Like, you're angry at someone.
Kara Swisher · 29:16
Gone.
Scott Galloway · 29:16
Gone.
Kara Swisher · 29:17
Okay. Anyway... It's con... Whatever. Con is fine.
Scott Galloway · 29:20
So so my loser is Shell Sandberg who went.
Kara Swisher · 29:23
As in Chaka.
Scott Galloway · 29:24
Chaka? Chaka Khan. No. No. No. Not even close.
Kara Swisher · 29:27
Chaka Khan. I feel for you, Karen.
Scott Galloway · 29:28
Go ahead.
Kara Swisher · 29:29
Sheryl Sandberg. She's in Khan. Flew all the way over there.
Scott Galloway · 29:32
You should see my moves when Chaka Khan comes on. Oh my god. It's time to spread a little sky.
Kara Swisher · 29:37
Go back to your dancing. That's awesome.
Scott Galloway · 29:40
I look like... I literally...
Kara Swisher · 29:42
That is something I hope never to happen. Just That I'm anywhere near your dancing.
Scott Galloway · 29:46
Just imagine
Kara Swisher · 29:46
That is my goal.
Scott Galloway · 29:47
Just imagine Ichabod Crane having a grand mal epileptic seizure. That is what it's like to watch the big dog bust a moo. Okay. So Kjell Sandberg getting one of her softball interviews. And like, how has the last year been for you? And she paused and she looked at the audience thoughtfully and said, it's been hard. It's been hard. So anyways, Sheryl Sandberg is my loss, my fail for figuring out a way to retool gross negligence on a cosmic scale into executive stress. Has it been hard on you, Sheryl? Has it been really hard on you?
Kara Swisher · 30:19
Who was the interviewer? Who's the interviewer?
Scott Galloway · 30:21
I don't know. Some some attractive woman in a sleeveless dress known as a journalist from every business news network in the world. Anyways, who probably went to McGill or or Kellogg and is a very thoughtful person who's like an airline pilot in the 70s and had her best days of glory are behind her like every other business news anchor. Anyways, it's been very It's been
Kara Swisher · 30:43
She very thought she was not as as... She got it... She got not good reviews for it. I'll tell you that.
Scott Galloway · 30:48
Well, I mean, it's been hard on her. It's been hard on her. Really? It's been hard on you? Well, what? It's been hard. How about all of the women who are slowly but surely losing their reproductive rights at the hands of an illegitimate president that you helped elect because of your gross negligence. It's been pretty hard on them, Cheryl.
Kara Swisher · 31:05
Alright. Okay.
Scott Galloway · 31:07
I'm angry. Fail. Where's the rose? Where's the rose?
Kara Swisher · 31:11
Where's the Come on. You need to have gallops.
Scott Galloway · 31:14
I have no excuse to be angry right now. It is beautiful hair.
Kara Swisher · 31:17
I like that people are coming up to you wondering where I am. We're like
Scott Galloway · 31:19
They're literally still always. We're like conjoined twins that have been recently separated. They see me and they smile and they go, where's Kara? Like, we hang out together all the time. They literally think that you and I just roll around all the time and find a mic and start complaining about Big Tech. That's how we live our lives according to everybody here.
— Predictions segment begins —
Kara Swisher · 31:36
That's right. That's exactly right. Well, I hope you enjoy yourself. So, Scott, before I leave you to have Rose with Sheryl Sandberg, I would like a prediction from you. What's your prediction? That that that'll never happen. That's my prediction.
Scott Galloway · 31:47
Yeah. So I think that the two best performing IPOs of or new issuances of 'nineteen, And again, I think there's three critical criteria here. Explosive growth, recurring revenue, and network effects. I think Zoom and the company that did their direct listing this week, Slack, have all of those three things. And I have trouble finding all of those three things in any of the other. All the other IPOs or direct listings have two of the three, maybe with the exception of Spotify, but I got that wrong. So I'm very bullish. People always say I'm so negative. I'm very bullish on both Slack and Zoom. So look to them to perform well over the next twelve months.
Kara Swisher · 32:27
Even though Slack has those those revenue issues. I mean, there was slowing revenue growth even though it's quite spectacular. It's slowing. And also they're losing money. You're worried about that. You don't think investors will be concerned.
Scott Galloway · 32:39
I can't tell you the the kind of informal Net Promoter Score that I've registered across small companies I work with around Slack is that it's almost like this virus that takes over the organization and people love it and can't live without So it to me seems like a great product.
Kara Swisher · 32:54
Great product. All right. And then where are you with Uber still? Where are you with Uber?
Scott Galloway · 32:58
Oh, Uber and Lyft are... Yeah. Uber and Lyft are still waiting for their massive, implosion. We're gonna lose the value of Ford Motor between, the the value destruction we're gonna see at Uber and Lyft over the next twelve months.
— Predictions segment ends —
Kara Swisher · 33:11
Alright. That's right. That's exactly right. Well, I hope you enjoy yourself. So next week, we're gonna have a guest host stepping in for you. Casey Newton of The Verge has written an amazing piece speaking on Facebook on the moderators and their terrible lives that... Of moderating all the the the dreck and toxicity that flows over the Facebook platform. He's got... He's gonna talk about that and more. Where are you gonna be? Where where is your where is your destination?
Scott Galloway · 33:33
You know I don't like it, and it makes me feel insecure when you bring in people more credible and more talented than me.
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Kara Swisher · 33:41
That article was great. That a hell of an article.
Scott Galloway · 33:43
It was good. Good stuff. And
Kara Swisher · 33:45
Where are you gonna be, Scott? Where are you... Where... Are you traveling more?
Scott Galloway · 33:48
I'm gonna be in Greece. I head to Greece on Saturday morning.
Kara Swisher · 33:50
How interesting because I'm coming to France tomorrow.
Scott Galloway · 33:53
What are you doing in France, Kara?
Kara Swisher · 33:55
I'll just miss you. I'm taking my lovely girlfriend on a vacation.
Scott Galloway · 33:58
Go on.
Kara Swisher · 33:59
For a short time. And then I'm
Scott Galloway · 34:01
Same oar.
Kara Swisher · 34:02
I know. And then I'm going to Brussels to talk to the Brussels regulators. I'm going to London to do podcasts with all kinds of powerful people there, possibly some
Scott Galloway · 34:10
Oh my
Kara Swisher · 34:10
god. Mothers, Carol Cadwalader. I'm gonna be doing a lot of work too besides my sajourd in Paris.
Scott Galloway · 34:15
Oh my god. Bringing... Impressing your new girlfriend with France and then heading to Brussels to do some high end... You're a saucy little minx. You're trying to show off. You're you're throwing your feathers out there. You're like, I'm a peacock. Check out mommy. Check out mommy. Oh, this is good. This is good.
Kara Swisher · 34:34
I think I'm just gonna add some oysters. You know, my husband speaks French for lonely, so that's gonna be fun.
Scott Galloway · 34:38
Of course. She knows how
Kara Swisher · 34:39
to say con, and I will ask her how to say it properly. Alright. Neither of us should be should be in Paris in any way, but but she can go. It'll be nice. I'll just be quiet next to her and eat crepes quietly in the corner. Anyway, thank you, Scott. I'll miss you for the week. You're gone, and then... But I'll be back.
Scott Galloway · 34:53
Do you mean that? That's the nicest thing you've ever said to me. Do you mean that? Do you really mean that?
Kara Swisher · 34:58
Yes. I do. I hope
Scott Galloway · 34:59
you do. That makes me feel nice.
Kara Swisher · 35:01
It's like
Scott Galloway · 35:01
I feel warm all over.
Kara Swisher · 35:02
No. I'm just trying to lull you. No. No. Just go get some Rose and hang out with Sheryl Sander.
Scott Galloway · 35:07
You missed me.
Kara Swisher · 35:08
Had a hard year.
Scott Galloway · 35:09
Yeah. Me me and Sheryl.
Kara Swisher · 35:11
Sheryl. And share share a Rose with Sheryl Sander.
Scott Galloway · 35:14
You know, Karen?
Kara Swisher · 35:15
Really nice movie.
Scott Galloway · 35:15
You know, it's been hard. What? It's been hard. It's been hard on me.
Kara Swisher · 35:19
You can pay for it with Libra.
Scott Galloway · 35:20
There you
Kara Swisher · 35:21
go. For it with Libra. It's all gonna be good. It's all good. Anyway, Scott, have a good time.
Scott Galloway · 35:25
Thank you.
Kara Swisher · 35:25
Thank you so much. Camila Salazar produced our show today. Nishad Kerwa is Pivot's executive producer. Thanks also to Eric Johnson. Thanks for listening to Pivot from Vox Media. We'll be back next week for another breakdown of all things tech and business. Make sure you subscribe to the show on Apple Podcasts. And if you like this week's episode, leave us a review. Hi.
