Scott Galloway · 45:23
FilmA used to be 6% of their cost, but now it's a service they offer to their third party marketplaces. What was 5% of their cost in technology and content? Their own web services. So what do they do? They build their own, and and now they have the most valuable company in the world trapped within
Kara Swisher · 45:37
This is an opportunity for
Scott Galloway · 45:39
marketing. And then they spin out Amazon Prime. They have their own payments platform that used to cost them 2% of revenues. Instead, what do they do? They take that 2% cost, and they turn it into an r and d expense and launch Amazon payments. No company in the world has taken a cost base and turned it into Bring
Kara Swisher · 45:56
it back. Land it back to Uber Uber could do this.
Scott Galloway · 45:58
Uber's taking their back end cost, their infrastructure, their technology, and their platform, and they're saying, let's turn it into a business all Amazon. Yeah. And this is this is such a genius move, and it's such an interesting thing to think about this. Take the infrastructure and the cost of your business and say, could we... Is this so good? Could we spin it out and perhaps offer it as a separate business to other third parties? And it typically companies
Speaker · 46:22
have It's a not
Kara Swisher · 46:23
feel about you. I feel like I'm trying to figure that... Spin you out in some way and make some money off of you. Sell you out. Sell you out as they
Speaker · 46:29
say. Nice.
Kara Swisher · 46:30
Rent you out. Rent to Scott. That's right. You're right.
Speaker · 46:33
I think this back in summer Isn't it?
Kara Swisher · 46:35
I did something like that. Fledgling, these public transit systems are going to be in trouble. They're gonna need help. And even though you've seen some of it in New York, I don't know if you... I haven't been in the subway in several months, but they were they were rolling out their pay by phone kind of thing where you just waived your phone. I think things like... They need to deploy them in these in these kiosks and everything else. So that that has to happen from a technological point of view. But it seems like Uber would be one of the ones because everybody has Uber on their phones. It's a utility really on their phone, and it's an app that's... You don't do anything but open it up to get a ride or do something useful. So I think they have a big opportunity here, I do think, in public transit. And not just moving people necessarily taking over bus routes, that's way down the line. And that's a more difficult proposition because a lot of people feel this transit should be a public good and not a money making operation. But you you... They are positioned more than most people in this area, I think. I would agree. I think it's smart. And by the way, we're having Dara to school, so we can ask him about
Scott Galloway · 47:34
But it's it's gonna shape up. Everything is redacting to the same battle, and that is Yeah. This, what I'll call back end transportation services logistics. There are only there are only so many big pools of capital left to go after, and one of them is government, and that's probably the biggest pool of capital available And out the iOS will be Uber and the Android of this. And actually, I think who is probably even better positioned to do this than Uber is Google Maps.
Kara Swisher · 48:02
Google. You're right. That's what I was saying. Google. Absolutely. 100%. It's interesting. They had they had dabbled in talking about that many years ago, and we'll see if they move back there. They've got they've got so many irons in the fire, but excellent talk, Jack, from Edinburgh. We really appreciate it. Scott, we're gonna take one more quick break. We'll be back for your predictions.
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Kara Swisher · 49:08
Hi, everyone. This is Kara Swisher.
Scott Galloway · 49:10
And I'm Scott Galloway.
Kara Swisher · 49:11
And we wanna tell you about Pivot, our twice weekly podcast.
Scott Galloway · 49:14
That's right, Kara. What a thrill. It's a chance for us to break down all the big things happening in tech, business, and politics.
Kara Swisher · 49:20
Yes. And I keep you in check so people can make it through each episode, whether it's digging into constant changes in the world of AI and social media or trying to keep up with whatever the fuck Elon is doing. We're here to give you our take on all of that.
Scott Galloway · 49:32
Every Tuesday and Friday morning, we drop a new episode about some of the major stories of the moment.
Kara Swisher · 49:38
And Scott is a prediction machine gazing into his crystal ball to tell you about where it's all heading.
Scott Galloway · 49:42
That's right.
— Predictions segment begins —
Kara Swisher · 49:43
So if that sounds like a good time for you, especially mister that's right, you can follow us on your favorite podcast app to get new episodes every week. Boom. Okay, Scott. We talked a lot about what, what will happen at the antitrust hearings on Monday. Do you have any predictions about their stocks, or do you have another prediction perhaps?
Scott Galloway · 50:07
So a boring prediction, Kara. Monday is a big day for representative Val Butler, Demings, Florida's 10th District. She's being considered, as you know, as a potential Veep, and this is kinda... This is probably gonna be the first time that America is sort of introduced to her. So I would imagine that they are spending a lot of time thinking about, what she's gonna say, what she's gonna ask. This is sort of her moment, if you will. This is her... This is this is where, you know, this is where careers are made, on Monday for for representative Demings.
Kara Swisher · 50:38
Yeah. Absolutely. I think she's a star and will be, on this, subcommittee questioning.
Scott Galloway · 50:42
The other thing is the other thing is there's just gonna be so many... I think Tesla is probably over the next twelve months, even they realize if Tesla sells every car in the world for the next ten years, it's still difficult to justify their market capitalization. They've blown past 300,000,000,000. When Apple blew past 300,000,000,000, it was dramatically larger with dramatically larger profits. It's just if you look at any company that hit 300,000,000,000, it looked entirely different than Tesla. And I can't imagine that Tesla wouldn't be firing up every investment bank and corporate development executive and say, let's go buy some interesting companies. If we're really gonna... If we really wanna be a power company, let's go buy. They just announced, obviously, that deal in Austin. But I think you're gonna see, some very interesting m and a activity over the next six to twelve months from Tesla as an acquirer.
Kara Swisher · 51:31
You're not you're not getting near the stock, are you? You're not saying a word.
Scott Galloway · 51:34
I have been... You you mean the guy who said at $300 it was going below 100? Yeah. Yeah. No. It's
Kara Swisher · 51:42
You're saying
Scott Galloway · 51:43
But this is... This one just makes too much sense. If you have this kind of what I I won't even say... I won't even say it's overvalued because I get burned every time I say that. But this fully valued currency called Tesla stock, that makes almost any acquisition of any company accretive. Because so they should be out there looking at everything, you know, knock knock, hi, how are you? Do you want do you want to sell? So this is... We're gonna see a lot
Kara Swisher · 52:06
of them in the activity from customers. That's really good. I'm gonna get back to you on the house... The antitrust commercial and administrative law subcommittee. David Cicillini is obviously the chair.
Scott Galloway · 52:16
Belbutler Downey, she's on it.
Kara Swisher · 52:18
She is on it. She is on it. And so is Jamie Raskin who... From Maryland who I think is He looks like
Scott Galloway · 52:22
a nice man, doesn't he? Jamie Raskin.
Kara Swisher · 52:24
Was a teacher when I was a kid, when I was in school. I knew him a long, long time ago, then he became a congressman. But he's super smart on these issues. I think he'll be a big player here, a big talker, Val Demings. James, Sensenbrenner is the ranking man from Wisconsin who doesn't look like he knows a whole lot about tech, but we never know. But guess who's on that?
Speaker · 52:42
Oh my god. I'm triggered. Why? Because he's older and white? Why would you say that?
Scott Galloway · 52:47
Why would you say that?
Kara Swisher · 52:48
I'm saying. But I'll tell you someone who I definitely know is gonna, like, wade in. I think possibly Jim Jordan can appear here.
Scott Galloway · 52:55
He's Jaya Powell. She's a gangster.
Kara Swisher · 52:56
He's the head of the of the... He... He's the head of the judiciary committee, for the minority. But Matt Getz, his his, I don't know what you would call Matt Getz to Jim Jordan, but he he is his his his proxy, I think. Matt Getz, who is, I think, is, as you know, call the fatuous chucklehead, will be there to talk about, conservative bias, and he
Scott Galloway · 53:15
he He might actually might keep a low profile because of this ethics investigation. Are
Kara Swisher · 53:20
you kidding? He never does. He never... Literally. You know what's interesting about a Washington Post piece on him? It's like he's a minor player in actual legislation, but he's a loud one otherwise. I think he will be loud as can be in this hearing.
Scott Galloway · 53:31
All the Republican members are... Look like the Augusta National Membership Committee. Yeah. Yeah. The and the Democrats look like America.
Kara Swisher · 53:38
Five white guys. Yeah. And it's interesting. It's five white guys on this committee and then, an Indian woman, a white guy, African American woman, white woman. I'm not sure. I'm not gonna just guess what Lucy McBath... Who's... What's her...
Speaker · 53:53
I looked at it. So interesting.
Scott Galloway · 53:54
The difference between you and me. I don't even see color. I don't
Kara Swisher · 53:57
even see You know what? I hate when people say that. That's not true. It's not fair. Alright. Any case, we'll see how that turns out in terms of where it goes. I don't think there... I think it'll be an interesting questioning. I think the Republicans, this is my predictions, will stick to the market will take care of this. We should keep our mitts off of this. It's the most successful industry. I think there will be much more on the tech side and then they will, of course, then say, but we'd like you to not, censor us because that's what you're actually doing even though they're not. That'll be their thing. And I think the Democrats will focus on the the the money and the power, especially the money, how rich they've gotten, how much they've. And both of them will talk about how well these companies have done in the pandemic. And I
Speaker · 54:35
think Oh, these are the words you're gonna hear.
Kara Swisher · 54:36
Tucker Carlson talked about this the other so I think that's where you're gonna
Scott Galloway · 54:41
see what over and over from Jeff Bezos are the following. Yeah. $15 an hour. We're pleased to announce we've raised... We didn't wait for the federal government. We've raised our minimum wage to $15 an hour. We are hiring more people than any firm in history through this period. He'll position himself as the great jobs creator.
Kara Swisher · 54:59
He's very likable.
Scott Galloway · 55:00
He's very he'll laugh two or three times, and that'll that'll be the moment. And then the two words you are gonna hear out of Mark Zuckerberg's mouth over and over and over
Kara Swisher · 55:10
I'll get back to you. I'll get back to you, congressman.
Scott Galloway · 55:12
Well, that's a bit... No. The first word will be tick, and the second word will be talk. And he's just gonna Yeah. Say
Kara Swisher · 55:18
China
Scott Galloway · 55:18
China wrap China. Himself in the American flag and say those those those dangerous AI weaponized Chinese are coming for us, and we're your national champion to defend you.
Kara Swisher · 55:28
And Tim Cook, I... Is probably gonna be like, why am I sitting
Speaker · 55:30
next to March on their head?
Scott Galloway · 55:31
Out of this.
Kara Swisher · 55:32
Stay out of it.
Scott Galloway · 55:32
He'll just stay out of the way. I'm a likable guy that likes Auburn football. Yeah. He'll... He
Kara Swisher · 55:37
Same with Sundar. They're over there in the in the in the... We're just regular guys gonna
Scott Galloway · 55:42
define these four individuals. For Bezos, if bay... For for for Zuckerberg, Bezos, and then what I'll call the other two, it'll be fire, fellatio, stay the fuck out of the way. It'll be... They'll go after they'll go after Zuckerberg. They'll get their knee pads out for Bezos, and the other two guys will say, just just don't say anything. Let those guys go at it. We're just here to look nice.
Kara Swisher · 56:07
Yeah. And they are very likable, I I... As people and very very... They'll... You know, for very, very powerful positions, Sundar Pichai is extraordinary. And he is also coming to school. He is he is wading into school even up.
Speaker · 56:21
That's right.
Kara Swisher · 56:21
He's showing up. He always shows up. He's... I like talking to him. He's really
Scott Galloway · 56:25
He seems very
Kara Swisher · 56:25
like people. You know what? He came
Speaker · 56:27
up from products.
Scott Galloway · 56:28
Came here on a student visa.
Kara Swisher · 56:29
He did.
Speaker · 56:30
Came here on
Scott Galloway · 56:30
a student visa.
Kara Swisher · 56:32
Why I like him is he's a product guy, and he was always the best product guy that I used to deal at Google or whatever it was. He was always, he worked on a whole bunch of different Google initiatives and important ones including Chrome and I think I just really, I like a product person, I do, I do like a product, that's why I like him in any case. In any case, we will see what happens. I I'm gonna... I can't believe you just said that word. Fire? Blow jump. Blow jump. Okay. Anyway, of course, why can't I believe it? What am I talking about? This is like... God. Why am I even surprised? Anyway, Scott.
— Predictions segment ends —
Scott Galloway · 57:07
I don't even remember what that is. Anyways, I'm sorry. Go ahead.
Kara Swisher · 57:09
What are you doing for the weekend? We have to go. I'm
Scott Galloway · 57:12
headed out east to the beach. New York feels a little bit muted for lack of a better word. By the way, tourism in New York is way off. Not that you would think any different, but the city feels... One thing that's really strange about the city, there are absolutely no children here. Anyone with kids has gotten out of the city. Anyways, I'm headed out to Montauk. I'm gonna have dinner at my favorite restaurant in the world, Crow's Nest.
Kara Swisher · 57:37
Is it outside? More information than you
Scott Galloway · 57:38
want, but that's what I'm doing this weekend. What are you doing?
Kara Swisher · 57:41
I am, my son is going... My kids are away except for the baby, and so I'm just gonna hang out and do stuff because I'm gonna go away the next weekend to write an outline for a book I am writing.
Scott Galloway · 57:52
Where are you going and what are you what are you writing a book on?
Kara Swisher · 57:55
About you and our
Speaker · 57:56
relationship. On?
Kara Swisher · 57:57
Yeah. I'm gonna... A tell all. It's be great.
Speaker · 57:59
Right.
Kara Swisher · 58:00
Yeah. I'm gonna take you down, Scott Galloway.
Scott Galloway · 58:01
Right.
Kara Swisher · 58:02
I'm gonna take you down. No.
Speaker · 58:03
50 Shades of 50 Shades of a
Kara Swisher · 58:08
There is no 50 Shades with us. Listen. I'm writing a book of my memoirs. I'm I'm do... I'm doing two books. I... It will be announced soon. It will be announced.
Speaker · 58:15
I just announced it. Hot for daddy. Hot for daddy. No.
Kara Swisher · 58:19
No. That is so not the title. In any case
Scott Galloway · 58:22
What are you writing about? What
Kara Swisher · 58:23
I'm writing my memoir of Silicon Valley. They really want it. I don't... I I I have... Yes. And then I have another book I'm working on.
Scott Galloway · 58:29
Hard to sell that. It was compelling, You remember what?
Kara Swisher · 58:32
I'm just telling you, they... I did and... At quite a sum. So there you have it. In any case, I'm gonna be working on that. And then, of course, the new podcast.
Scott Galloway · 58:39
I said to Carly Fiorina, your acquisition makes no sense. And then she said, well, that's a page
Speaker · 58:46
turner. That's a page turner. And then when I was done writing my first book on AOL Yeah. Oh my god.
Kara Swisher · 58:56
Algebra of whatever. Then Calculus of Epidaurus.
Scott Galloway · 59:00
Me on the steps to my second of eighth wives. Oh, I could write that book. Seriously.
[Ad break]
Kara Swisher · 59:08
You could be my god. Writer. It is... When it's a bestseller... By the way, my friend Amina Toso, we've had on the show. She's a bestseller.
[Ad break]
Kara Swisher · 59:17
all the bestsellers, friendship book. I'll make a list. She's gonna be a guest host on... When you're gone away in August. Even though we're doing school together, so how can I miss you if you won't go away? Yeah. I have four guest hosts that are coming on because you've apparently need some free time, and I don't. Yeah. So August
Scott Galloway · 59:31
August is when the dog the dog takes a run on the beach, chases involved.
Kara Swisher · 59:34
Cara does... Never takes vacations.
Scott Galloway · 59:36
Focuses on an edge. Crazier.
Kara Swisher · 59:38
Alright. Okay. Scott. We need to go. Don't forget if there's story in the news that you're curious about and wanna hear our opinion on, email us at pivot@voxmedia.com to be featured on the show. Scott, you may read us out
Scott Galloway · 59:50
this week. Today's episode was produced by Rebecca Sinanis. Our executive producer is Erica Anderson. Today's sound engineer is Fernando Finete, and special thanks to Drew Burrows. If you like what you heard, please download, the podcast. Word-of-mouth, we appreciate your support. We're doing, really well, and we look forward to seeing you hopefully at Pivot School. Please sign up. Seats are running out. That's a lie. The seats can't run out. But, anyways, Kara, have a great weekend, and we'll speak to everyone next week.
