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Kara Swisher · 31:50
Alright. We're back. Wins and fails, Scott. So many fails. Like, what? Here's a win. I'll do my win. Am... You know, last week, I had that FedEx breakdown because they messed up my thing, and it cost me hundreds of dollars to get something that they just... Anyway, Amazon is barring third party sellers from using FedEx Ground for prime deliveries because they said we have seen a drop in delivery performance of FedEx Ground and FedEx Home ship methods for seller fulfilled prime shipments. I... Listen. Amazon's... It's like backing, like, Darth Vader over Palpatine, but I'm going with it.
Scott Galloway · 32:25
I'm going with with Anakin Skywalker?
Kara Swisher · 32:29
Yeah. Whatever.
Scott Galloway · 32:30
That's that's a really... I mean, that's a great example. And you... My blog post today is on is on FedEx.
Kara Swisher · 32:38
Yeah.
Scott Galloway · 32:38
You brought this up or or inspired me to start looking into this. Mhmm. FedEx in Yeah. A word and this is an academic term is just fucked. Because effectively, if you look at... There's this interesting dynamic in technology where... And it's mostly... It started in software where every software startup, and I'm on the board of a few of them, worries that someday they're gonna wake up and they're gonna find that Oracle or Adobe has turned their product and made it into a feature and bundle it. Similar, make it free, and basically put them out of business overnight. But they just turned it into a feature of their own suite of offerings, similar to what kind of Microsoft did where it said Internet Explorer is free and bundled with Office, and basically put Netscape, the fastest growing company in history to that point out of business within effectively like twelve to eighteen months. But it's now starting to happen, and I don't know what the term is, featured. You've been featured across some incredibly large impressive companies. And essentially FedEx is being featured by Amazon. And that is shipping and fulfillment and logistics are now becoming breakeven businesses for Amazon that they feature as part of Prime. And FedEx had... They literally threw up on themselves in their most recent earnings report. And they tried to employ this crazy delay or obfuscation to say it had something to do with air freight. No. It has everything to do with the fact that I I cannot get over this holiday season. I've been running around my neighborhood taking pictures. There are Amazon vans everywhere. Everywhere. Everywhere. Everywhere. And they're coming after Kara Swisher who's fed up with FedEx. They're coming after Kara Swisher with delivery that can run at breakeven or a loss that FedEx investors will not tolerate. And they're coming after... I mean, there's...
Kara Swisher · 34:28
I think this is FedEx's fault. They haven't kept up. They haven't... Fred Smith just just... You know, he was an innovator, and now he's gonna let himself get
Scott Galloway · 34:36
He's 76. That's... I know that's ageist. I'm not sure 76 year olds were running around.
Kara Swisher · 34:41
It's like, if you wanna be aggressive, like, bring bring the bring the juice, my friend. That's what I say.
Scott Galloway · 34:46
Yeah.
Kara Swisher · 34:47
They... You know, their corporate office had called me, and I haven't called them back. I'm not calling
Scott Galloway · 34:50
them back. That'll show them.
Kara Swisher · 34:52
I'm not. I'm not being like you. You know how you don't call people back when they're mad at you? I'm not calling
Scott Galloway · 34:55
them back. I'm sick of old white guys. I'm investing in the young and the possible instead of the old and the powerful. I've had it. I'm done.
Kara Swisher · 35:01
Oh, have you? Yeah. You're a man of the people, Scott Gallery.
Scott Galloway · 35:04
We go.
Kara Swisher · 35:05
Alright. That is that is my win. I'm going with Darth Vader over Palpatine. Alright. What what is your... Speaking of Palpatine, I think the fail seems to be the star... My fail is the Star Wars movie. Have not seen it. I may see it tonight. My ex rented an entire theater and is taking people to see it. So I will find
Scott Galloway · 35:22
women out are the people. That means they're seeing it early. Doesn't it come out the twenty sixth?
Kara Swisher · 35:27
I have no idea what she's up to. She's she's
Scott Galloway · 35:29
got contests. It doesn't matter if it's good or bad. It's just awesome. It's just gonna be awesome. That's a franchise.
Kara Swisher · 35:35
I read all the spoilers. I know exactly what's gonna happen.
Scott Galloway · 35:37
Really?
Kara Swisher · 35:38
I did. Yeah.
Scott Galloway · 35:39
Say anything.
Kara Swisher · 35:40
I don't wanna be surprised. Don't say I'm not gonna say them, but I did. And and by the way, I'm going to see cats. That's the other thing. That's a win to me. It got pretty... Someone... My favorite tweet was that it... This person was like, I went to see it. I don't even know what just happened to me, but I feel good about it. So I wanna see... I think Cats looks great. I'm gonna go see Cats. That's my win. That's my other... That's my fail win. So what is yours? What are yours?
Scott Galloway · 36:04
Well, my fail my fail was FedEx, but my win is Adam Schiff. I think Adam Schiff Mhmm. I know this is gonna surprise you, Kara, but in high school, I wasn't what you would call enormously cool, which I know comes as a surprise to everybody. And I think I think Adam Schiff or representative of Schiff is sort of an inspiration to young men and women who who won intellect and perseverance. And, you know, Trump has baited him so many times with these insults about his looks and his... And the guy has just decided, do you know how I'm I'm gonna win? With perseverance and intellect, and the guy does his homework. And I feel like
Kara Swisher · 36:39
He does.
Scott Galloway · 36:39
There are a ton of 16 and 17 year old people in math club and that that that, you know, are six foot one, a hundred and twenty eight pounds with bad acne as as as with Scott Galloway at 17. And, yeah, I think he's a great role model, whereas I think the president is a terrible role model for for young men. I think Adam Schiff is a great role model for young for young young men and young women. Anyways, my win is
Kara Swisher · 37:04
for the honor of Adam podcast I did with him recently. It was a great... I'm gonna do another one. We're gonna return after this is all over. He promised a second one. But he's great. He's really great. He's super smart. My brother actually went to college with him and said he was super smart then. I didn't even what
Scott Galloway · 37:17
a shocker. Shocker. Really? He didn't have one year riding a skateboard and smoking crack?
Kara Swisher · 37:21
No. It was Stanford. They were at Stanford, which I didn't get into. And then you did see that... I don't know if it's a win or a fail that a federal judge ruled that proceeds from Edward's... You'd be happy about this. Edward Snowden's memoir, Permanent Record, which we talked about, which I did a podcast with him. So a federal judge ruled that proceeds from Edward Snowden's memoir, Permanent Record, were to be paid to the US government because he violated the terms of his employment contract with the US government in publishing the book.
Scott Galloway · 37:47
Well, you clearly don't follow me on Twitter. You're gonna love this. I wrote real quickly on Twitter. There's so many... It's... Someone summarized Twitter perfectly that as you
Kara Swisher · 37:55
Espionage does not pay. I know what
Scott Galloway · 37:57
you wrote espionage is a bitch. And I know you don't like it when I use that word. And so many people weighed in against me, and it's inspired me and as have you to learn more about Edward Stone because a lot of people who... Unless they're bots, and as far as I know, the Russian troll is trying to gain my trust, but who seems thoughtful have weighed in and said, you you got this wrong. Edward Snowden is a patriot. It's... There's much more gray listen
Kara Swisher · 38:20
to my podcast. You could read the book. I'm sending you the book. I am sending you the book.
Scott Galloway · 38:24
Anyways, I'm gonna learn more about Edward Snowden because...
Kara Swisher · 38:27
That's your Christmas present, the free book I got from Edward.
Scott Galloway · 38:29
Here we go again. Here we go again. And you're gonna give it to me at intermission at Katz. Right? Anyway, so
Kara Swisher · 38:35
You know what? I am gonna... We're going out
Scott Galloway · 38:37
with Randy
Kara Swisher · 38:38
Zuckerberg. Gonna go to can't handle it.
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Scott Galloway · 38:41
I literally can't handle
Kara Swisher · 38:42
Randy, who might know, we're coming to your show. Alright. So Edward Snowden, he... You think he should not be paid for the... For he should... That the money should go to US government because he violated the terms of his employment contract. That's what you think?
Scott Galloway · 38:53
Well, I'm gonna be I'm gonna be more measured here. I need to learn more about Edward Snowden because a lot of people that I respect He did violate the said you've
Kara Swisher · 39:01
got it
Scott Galloway · 39:01
wrong on this one. So I'm gonna try and learn more about how a guy decides to take state secrets, shove a thumb drive up his ass, and move to China and rush as a hero. So I'm gonna try and understand how that makes him a hero. But anyways. Anyways, and I'm sure he didn't give the rush into anything
Kara Swisher · 39:15
because there were such nice people. Cube. There was no ass shoving with the thumb drive. I'm sorry. There was a Rubik's cube that he took in and out. So there you have
Scott Galloway · 39:24
it. Yeah.
— Predictions segment begins —
Kara Swisher · 39:25
Alright. We're gonna finish up this episode with predictions. Predictions.
Scott Galloway · 39:29
Okay. Okay.
Kara Swisher · 39:30
Do have any?
Scott Galloway · 39:30
Yeah. I do. So my prediction is that FedEx is acquired in two thousand and twenty or twenty one, that effectively you have an incredible company with incredible assets that's now been featured and is becoming part of the stack. And I think an interesting acquire would be Walmart. But if Walmart... I think... So first off, FedEx is gonna... Its value is gonna get cut in half. It's about to get worse for FedEx. And it was trading at a multiple that what I call the innovator's multiple and that is FedEx has always been an innovator. If you look at e commerce they've benefited from the surge in e commerce and logistics. But it's about to not only see its EBIT to drop, it's gonna get incredible or endure incredible multiple contraction as people realize it's the next victim of Amazon.
Kara Swisher · 40:17
It's the post office. It's the new post office.
Scott Galloway · 40:19
And it's got a 76 year old CEO, so they need a succession strategy. And I think Doug McMillan offering full stack fulfillment front end commerce is a really compelling... Somebody's gotta be the yang to Amazon's ying.
Kara Swisher · 40:35
Yes. I Shopify, think as we've discussed. Maybe Shopify's buys.
Scott Galloway · 40:39
Yeah. Shopify has no Walmart. And Shopify doesn't have,
Kara Swisher · 40:42
you know, 5,500 distribution You so said to sell the Roku was gonna get bought by Netflix. So I'm gonna... Or I'm gonna I'm gonna hold you to these. This is really interesting.
Scott Galloway · 40:52
I don't know who Roku will be acquired by, but actually my prediction is Roku, if their value keeps growing, is gonna is gonna be a man bites dog and acquire an old economy or an old media company because they're becoming so valuable or they'll be acquired. But something is gonna happen with FedEx in the next twelve months. First thing is its value is gonna decline, and they're either gonna need to go out and make a Bet the Ranch acquisition, or they will be acquired. And I think the interesting one would be would be Walmart.
— Predictions segment ends —
Kara Swisher · 41:16
Walmart. I gotta talk to Doug McMillan. I'm gonna call him after this. He's gonna come to... I'm making him come to Code. I've got another big name for Code. I can't announce it yet. Really? He announced Sundar this week. We have another one. Anyway, but before we go, Scott, that's a great prediction. That's a really smart one. Before we go, let's shout out to some of our listener mail we got this week. Joe writes, there can never be too much pivot. You are a shining light in the media sewage I constantly have to shift through. Thank light in the sewage.
Scott Galloway · 41:41
Thank you for that. We are a light. By the way, do you know we hit number one in a country? We are the number one podcast this week Where? This week
Kara Swisher · 41:49
What country?
Scott Galloway · 41:50
In Argentina.
Kara Swisher · 41:52
That's right.
Scott Galloway · 41:53
Oh, talk about an awesome country. Any... The tango, beef, and fly fishing in the Bariloche?
Kara Swisher · 41:58
We should go there.
Scott Galloway · 41:58
Is awesome.
Kara Swisher · 41:59
Let's promise to go there and then let people down. Alright. For... Next from a self identified 54 year old fully degreed woman in flyover country. She says, love it. Gotta have it two times a week.
Scott Galloway · 42:10
That's right.
Kara Swisher · 42:10
That's right.
Scott Galloway · 42:11
That's right.
Kara Swisher · 42:13
That's flyover country. We like you too. We may come there. Probably not, but we will. No. We like flyover country. Do we like flyover country?
Scott Galloway · 42:19
Of course we do.
Kara Swisher · 42:19
We flyover.
Scott Galloway · 42:20
We're women of the people. You see cats, and I'm
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Scott Galloway · 42:25
We're about the least
Kara Swisher · 42:26
with me
Scott Galloway · 42:26
to see. We literally... We're about the least flyover people you have ever met. You were gonna run for mayor of San Francisco, and I'm literally in Soho teaching at NYU.
Kara Swisher · 42:35
I'm running my mouth. Listen. This is the last one, and then you have to read the negative ones. From a Londoner, you asked what it's like having pivot twice a week. It's like having those guilty pleasures you shouldn't do twice in a row. It's overwhelming and awesome all at once. Scott, read the negative ones.
Scott Galloway · 42:49
We have to
Kara Swisher · 42:49
do that.
Scott Galloway · 42:50
But but here are the negative ones. Mike writes, with two episodes, I can't believe that I'm saying this, but it's too much. Well, you know what? Okay, Mike. You know what too much of a good thing is? It's cocaine, Mike. You're insulting cocaine. Anyways
Kara Swisher · 43:05
We we wanna hear from you if you think there's too... If it's too much. I don't... We don't think it's too much. We're enjoying ourselves. And we... One of the things that I loved is someone Michael Kreider wrote today. I'll read this one too. The problem with that I have two shows a week is now they crowd out other podcasts I'd like to listen to goodbye at how I built this.
Scott Galloway · 43:22
Oh my god. By speaking of two minute too, like, crowding out other podcasts, you know what has jumped the shark? Did you listen to The Daily today about impeachment? Jesus Christ was that boring. Michael Barbera, start doing drugs. Do something. There's... The daily is getting so boring. I know you work for them. Oh my god. That was... I'm getting... I'm literally... The daily, you better step it up. You better you
Kara Swisher · 43:44
Step it up. Step it up. For you. We're coming for everybody. That's what we're doing. We become a megalomaniacal pair. Anyway, it's time for us to go. Wait by the door for your Peloton to come. I... I'm sure it'll get there from me. I'm sure that'll happen.
Scott Galloway · 43:58
Wig and a bottle of Cialis. Is that a hint? Is that a hint?
Kara Swisher · 44:01
We're going to be back next Friday for the decade in review show. We'll be hearing a lot of special guests.
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Kara Swisher · 44:07
special guests. Meanwhile, you can reach us at hashtag pivot podcast or emailing us at pivot@voxmedia.com. Scott, let's get on to the decade show. We'll have that next week, and then and then have a beautiful, beautiful holiday season.
Scott Galloway · 44:23
It is gonna be nice. Alright, Keira. I'm excited. I'm excited to end the decade with my Pivot cohost.
Kara Swisher · 44:30
Cohost. Yeah. You do. I I can't wait to see what you get me for Christmas. Anyway, today's show was produced by Rebecca Sinanis. Eric Anderson is Pivot's executive producer. Thanks also to Rebecca Castro and Drew Burrows. Make sure you subscribe to the show on Apple Podcast. And if you're an Android user, check us out on Spotify or, frankly, wherever you listen to podcasts. If you liked our show, please recommend it to a friend. Thanks for listening to Pivot from Vox Media. We'll be back next week for another breakdown of all things tech and business.
