Scott Galloway · 26:06
Firing on all cylinders right now.
Kara Swisher · 26:07
And it's not getting as scrutiny as it should. I think the I think the press should move their scrutiny to YouTube and Google. And I think I think the government certainly will. They haven't forgotten it. You you know, they just have a perfect villain in Mark Zuckerberg, and we we we fall prejudice.
Scott Galloway · 26:20
Exactly right.
Kara Swisher · 26:21
And Sundar's lovely, and it's kind of amorphous, and the founders are gone. You know? And I think it's interesting. And what was interesting is Shopify missed estimates. That was interesting.
Scott Galloway · 26:33
That's interesting. I didn't see that. Yeah. That's interesting. Shopify We'll
Kara Swisher · 26:35
talk is about that. We'll talk about that.
Scott Galloway · 26:37
Oh, by the way, you know who got public yesterday? I predicted they would not get public, and they
Kara Swisher · 26:40
did. Rent the runway.
Scott Galloway · 26:41
Rent the runway.
Kara Swisher · 26:42
There it is. We'll see how it goes. Yeah.
Scott Galloway · 26:44
Stock off 10%, so it's already one of the lesser performing IPOs, but congratulations to them. They got public. Mean, get this. A $1,600,000,000 market cap. They have 100,000 active users. That is, I think, about 60... Shit. What is that? I should know this. 100,000 times 1,000 is $100,000,000.16000. A lot of money per user is what you think is being valued at. Yeah. And I I just don't. Anyway, but I need to put put my anger Congratulations to Rent the Runway and the founders. They're both impressive women. Yeah. And they got out.
Kara Swisher · 27:19
You can't get them all right. Tesla, trillion. Shh. Don't say anything.
Scott Galloway · 27:23
You know something? I feel a heaviness
Kara Swisher · 27:25
I'm triggering you.
Scott Galloway · 27:26
Right now. I feel a darkness.
Speaker · 27:29
That's what you're
Kara Swisher · 27:30
in LA, and I'm here in DC. I'm not? I'm here
Scott Galloway · 27:32
in DC. My god. The dog is awesome in Los Angeles.
Kara Swisher · 27:34
I wish I was in Los Angeles right now. Wish I was. Wish I wasn't.
Scott Galloway · 27:37
Oh, wait. You were acting didn't work out, and now modeling isn't work? That's a great idea. You should write.
Kara Swisher · 27:42
Yeah. You should write.
Scott Galloway · 27:43
You should
Kara Swisher · 27:43
be a model, Scott. Alright. Let's pivot to a listener question and stop with the LA LA dreaming.
Scott Galloway · 27:50
You've got you've got I can't believe I'm gonna be a mailman. You've got mail.
Speaker · 27:55
Hi, Karen Scott. My name is Jim Guilfoyle. I'm a certified financial planner in Orange County, California. Hey. My question is regarding your concerns about the amount of information Big Tech has on us personally. What do you think would be the impact when Big Tech decides to aim their guns at retail financial services? Think about a Google and Amazon in particular, the amount of data and information they know. What do you think that would occur and what sort of disruptive impact do you think that would have? Lastly, do you think that even, is on their horizon? Hey, thanks. Love your show.
Kara Swisher · 28:32
So yes, Let let me just... It is, Jim. It's... It... They... You know, they can't buy anything right now. That's the one thing. And financial services companies are really, being very creative and doing really well now, as Scott has pointed out, dozens of times. I think that that these big companies aren't into as much. Although Facebook does have a guy who's very quiet, David Marcus, who's worked on their Libra or whatever you call it, and then, who's running all their f two. It's called Facebook financials, I guess, or financial. And so I think they're sort of moving in all kinds of things. They have a digital currency wallet, but they can't buy a lot. Right? I would think Amazon would be be the one that is... That would probably create products most effectively going forward. But at this point, they can't buy all the more interesting efforts going on. Scott?
Scott Galloway · 29:20
Yeah. This is really... I I would say if there's one... I don't... Big Tech never misses anything, but I'd say if there's one area they probably think we should have invested more is in fintech. Because I don't think anyone anticipated, just like Apple probably wishes it had continued with their car program, not recognizing the car market was about to become a trillion dollar market capitalization market. I think that, and I think they did not get into banking as aggressively as some of these startups for a couple reasons. One, they all know Jamie Dimon. And what I mean by that is they're all very close with the big banks because they use them for constant capital raises. They speak at their conferences. And and also the regulatory environment, I think that general consensus was, do we really wanna start competing with Jamie Dimon? It's a regulatory, you know, snake, whatever you call it. You know, it's a clusterfuck. We don't wanna go there. And so what happened? A bunch of players came in and started... It's the text case... The textbook case of disruption. The fintech guys came in and served the communities that banks were ignoring, the unbanked, remissions payments, the small retailers. And now they're bigger. And now these companies... You know, PayPal, $250,000,000,000. Square, 120,000,000,000. Stripe is supposedly going out at 200,000,000,000. And I think that big tech looks at it and thinks, we had the interface. We could have gotten into this. We should have we should have done it.
Kara Swisher · 30:45
We should have done it. We can't buy it?
Scott Galloway · 30:47
Well, that... That's exactly right. And that's the point. A lot of people make the point that antitrust isn't what actually changes behavior. It's the threat of antitrust that changes behavior.
Kara Swisher · 30:57
Right. That would that would put them right in... Right into the crosshairs. Or they're already in the crosshairs, but, you know, the the the Consumer Financial Protection Bureau is looking into how tech giants use consumers' financial data. They're really not in it. Amazon is the one you could see making things, and they haven't really been as active. Because I have a I have a financial relationship with Amazon in a way I don't with Google. I don't use Facebook at all. But I, you know, I don't have any financial issue with Twitter, and your idea that Square by it is really interesting. I wouldn't mind necessarily having a financial issue with Twitter, but I don't. But Amazon is the one I have the most, you know, and they're they're... They issue small business loans to its sellers, and they have those kind of programs.
Scott Galloway · 31:36
No industry drives on trust more than banking. I mean, it's not real estate. It's not personal. It's like you'd have to trust that when you press a button and wire money, you have to trust that when you deposit money somewhere.
Kara Swisher · 31:47
What would it take for you to move? I was just thinking your giant sums of money, Scott. What would it take for you to move it to a tech giant? Never. Never would be my answer. And Amazon, if I had to pick one, would be where I would.
Scott Galloway · 31:57
Well, that's exactly right because the most trusted brand in the world right now is Amazon. Yeah. And like like you said, they're kind of already in the business of giving you something in exchange for money. Whereas media companies, you give them your attention and they pelt you with opioid induced constipation ads, or convince you that you should check out this extreme dieting site because we've noticed you're five foot six, one hundred and five pounds and fifteen. So you're used to giving... You're used to an exchange of currency and value with Amazon, which puts them closer to the financial services realm and they're very... And they're incredibly trusted. They haven't been subject to any like enormous hack. Do you really wanna trust Mark Zuckerberg with your money and the economy? So...
Kara Swisher · 32:36
Although, you know, I have to say, I... Some of Amazon's stuff, you know, they they... They're accused of of of interest rates too high to the small business loans to its sellers. Mhmm. There's a great piece in the New York Times this week by Jodi Cantor and others about how they screwed up their HR system, and people got thrown out of work. We talked about that. So they're not... You know, they've got their their... They've been focused far too much on consumers, but I I still would be, like, not giving them my money, I'm not giving my health care stuff. I think I would be very like, just like with Facebook and dating. Are you fucking kidding me? Like, no. Not that I'm dating, but nonetheless.
Scott Galloway · 33:08
You know, I'd have you... I have Apple Pay because of you. Do you remember this?
Kara Swisher · 33:11
That's right. That's right. See, but I have a relationship with Apple. Apple, I would. Apple, I would. Yeah. I wouldn't necessarily have Bank of Apple.
Scott Galloway · 33:18
I don't think
Kara Swisher · 33:18
I would use Bank of Apple. I think that's
Scott Galloway · 33:20
the Apple Pay?
Kara Swisher · 33:21
Yes. All the time. Every day.
Scott Galloway · 33:23
It's great.
Kara Swisher · 33:24
Every single day. Every... I would use... If I had a Google one, I'd use that. Maybe I wouldn't. That's interesting. But right now, these financial service companies, that... These these, digital ones are doing great, like Square and Stripe and others, and they don't need they don't need no stinking bigger tech companies to help them. So send us more. If you got a question you're curious about, go to nymag.com/pivot and submit it for the show. Scott, we're gonna take one more quick break and we'll be back. This better be a good prediction. I would like a very good prediction from you.
Scott Galloway · 33:53
Okay. I'm on it.
[Ad break]
— Predictions segment begins —
Kara Swisher · 35:26
Okay, Scott. Give us a city of angels prediction. That means it's gotta be sunny, bright, and forward looking.
Scott Galloway · 35:33
I know who twenty twenty one's person of the year is, Kara.
Kara Swisher · 35:37
How?
Scott Galloway · 35:39
I I just know.
Kara Swisher · 35:41
Well, tell us.
Scott Galloway · 35:42
I also know who a future Nobel... It's the same person who's gonna win the Nobel Peace Prize.
Kara Swisher · 35:46
What? They already did.
Scott Galloway · 35:47
I'm talking about the future. Twenty twenty one's person of the year Yeah. And future Nobel Peace Prize winner.
Kara Swisher · 35:54
Who?
Scott Galloway · 35:56
Frances Haugen.
Kara Swisher · 35:57
Oh, really?
Scott Galloway · 35:59
Frances Haugen is absolutely going to be person of the year, and I think there's a chance she'll get the Peace Prize. If you think about what's happened the last ten years, Kara, Interesting. You both the people on this podcast
Kara Swisher · 36:09
I should get it then.
Scott Galloway · 36:11
House subcommittee chairs, co chairs, the media
Kara Swisher · 36:14
Shouldn't Kara Swisher get it?
Scott Galloway · 36:15
Investors, media people. We have all been railing against big tech, and we are a case study in contrast with miss Haugan on the difference between being right and being effective. She has put on a master class. Look at Facebook right now. Facebook, for their first time
Kara Swisher · 36:30
Yeah.
Scott Galloway · 36:31
Is flat footed and has no fucking idea what to do. Yeah. They're like, okay. She is out of central casting to do this. The... Let me get this. A woman from Iowa that's the daughter of professors with a computer science degree Mhmm. Who likes tech Yeah. She... It's it's as if we could recreate Edward Snowden and make him a lot more effective. And she didn't piece out to Beijing or Moscow. She went to DC and said, I'm gonna attack this problem head on.
Kara Swisher · 36:59
Alright. Okay. Alright.
Scott Galloway · 37:00
She has been fascinating.
Kara Swisher · 37:01
That's interesting. Yeah.
Scott Galloway · 37:03
The rollout here, 17 articles, branded the Facebook papers. Then on sixty minutes, she has a web website, and that was coordinating all of these media companies and dictating who gets to write what and when.
Kara Swisher · 37:16
Alright. I like this. It's interesting. It's creative. Okay. I like it. Okay.
Scott Galloway · 37:20
Alright. We have been fighting this company. We have been fighting their pants or tanks on horseback, and she showed up she showed up with a fucking neutron on.
Kara Swisher · 37:29
Fit in. I mean, Mark Mark Benioff has been a real critic of Facebook, so you could see. I don't know if he has a... How much influence he has even though he owns the thing on the selection, but that's interesting.
Scott Galloway · 37:38
No one. We have all we have all... We all showed up with squirt guns to a gunfight. She has shown up with a howitzer. She's gonna be Times person of the year in 2021, and she's got a pretty good shot for winning the Nobel Peace Prize.
Kara Swisher · 37:50
She is gonna That's a big one. Alright. I'm gonna go with it. I'm gonna let you go there. I don't think the second is true. I think the first is a is a distinct possibility.
Scott Galloway · 37:58
She she is gonna do for us and for society Mhmm. What all of us have been bitching and moaning about for ten years.
Kara Swisher · 38:04
Been moaning. Even doing the work, Scott? I'm sitting there with my little spoon digging away. Come on.
Scott Galloway · 38:09
What have we actually gotten accomplished?
Kara Swisher · 38:11
We have called it... You know what? Interviews, that interview where where, it it... It's a drip drip drip. I don't think... I think we have done... I feel like we've
Scott Galloway · 38:20
done the we have done is we've provided cloud cover for her.
Kara Swisher · 38:24
Well, I'm just saying we we have we identified the problem, so did Maria Reza early and often, and I think that's really, I think there's a whole bunch
Scott Galloway · 38:32
of people. We we pat ourselves enough on the back.
Kara Swisher · 38:35
I'm not patting
Scott Galloway · 38:35
myself on
Kara Swisher · 38:36
the back. I think in
Scott Galloway · 38:36
this this... Miss Haugen has come in and schooled, literally schooled congress, media
Kara Swisher · 38:43
Although, you know pundits. Can I just say there's a really interesting column that Casey Newton did about how some some insides say the reading of the comments by insiders are out of context? It's like looking at anybody's Slack. Like, what do they know? But is interesting. Yeah.
Scott Galloway · 38:58
This isn't research and documents presented to management. These are comments on their internal Slack over
Kara Swisher · 39:02
the call. Okay. Fine. But I think people inside do know a lot more than they often have a native idea of what's happening there. Anyway, I like this. Okay.
Scott Galloway · 39:10
Alright. Time's person of the year. Alright. Twenty twenty one person of the year. Francis Howard.
— Predictions segment ends —
Kara Swisher · 39:13
Scott, that's a big prediction, and that is the show. We'll be back on Tuesday for more, and we will discuss lots of things, including including, Tesla and Rent the Runway and some of these other things. We're gonna we're gonna circle back on those things. Scott, read us out.
Scott Galloway · 39:29
Today's show is produced by Lara Naaman, Evan Engel, and Taylor Griffin. Thanks also to Drew Burrows, and Anja Todd engineered this episode. Make sure you subscribe to the show on Apple Podcasts. Or if you're an Android user, check us out on Spotify or, frankly, wherever you listen to podcasts. Thanks for listening to Pivot from Vox Media. We'll be back Tuesday for another breakdown of all things tech and business. Come to the City Of Angels. See the dog in his Porsche. He's thinking about getting into modeling. He's thinking about acting, or he might write, all are good ideas. All are good ideas.
[Ad break]
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