Scott Galloway · 13:39
Airbnb has to have global demand. Because if you're coming in from Austin, it means you're not there.
Kara Swisher · 13:44
So if you're
Scott Galloway · 13:45
from Copenhagen, you need to have no other Airbnb in Copenhagen. Whereas Uber can have regional competitors everywhere. Right. And we're starting to see that with Didi in China. Yep. So the moats are, you
Kara Swisher · 13:55
know, No moats. The moats think the brand is a moat and the app Yeah. Is a
Scott Galloway · 13:59
But it's probably...
Kara Swisher · 14:00
Credit card?
Scott Galloway · 14:01
$1,020,000,000,000, 50,000,000,000 maybe?
Kara Swisher · 14:03
Right. Exactly. Having the credit card is good. Yeah. What if they start like you you go into the subway and then you use your Uber app to pay for it?
Scott Galloway · 14:09
Well this is what and I want to hear what you think but I think Uber needs to become Expedia before Expedia becomes Uber. Uber should be I'm headed to Paris next week, I type in Paris, they know my weight class economically, I put in the date, and I press a button, and it says here is the entire recommended travel itinerary, everything from flights to hotel. But go upstream and downstream, right? Sort of what Google Maps does, tells you how to get there subway walking.
Kara Swisher · 14:35
I've taken advantage of how much I use Google Maps. Have to say I only use it for they don't ever they do offer me restaurants and things but I don't avail my it's not in my face.
Scott Galloway · 14:43
You don't use it for directions?
Kara Swisher · 14:44
I use it for directions but I don't use it for anything else. Like I see them offering me things but it's not in my face enough.
Scott Galloway · 14:49
So back to Uber. They are awash in Saudi money? I did not know that.
Kara Swisher · 14:53
Oh, $14,000,000,000 of their... They own a ton of it. They fur... They put in a 3.5 just recently, and before that, they put a bunch in through either PIF or through the SoftBank Fund. The SoftBank Fund was the latest one with 9,300,000,000 and the Saudis represent half of that.
Scott Galloway · 15:08
And so my question is the following. What would we have them do about that?
Kara Swisher · 15:12
I don't know. But here's what I would not want them to... So Dara pulled out of the thing, calls and says I'm pulling out of thing, which is fine. He obviously had to. But, you know, here's what I didn't appreciate when Travis went over there, he's like, hey, Kara. They're letting... Like, he didn't say that directly, but, like, Uber did this. Like, hey, Kara. They're letting women drive now. And I was like And they have movie theaters. And they have movie theaters. I was like, fuck you. It's not a favor that women can... Oh, thank you so much, sir, for letting women drive. Yeah. And then they jailed the woman activist who got that... Made that happen. They jailed her for that. So she's been in jail for years. It's just the the... I just... I'm sorry. I don't know how they sleep at night taking that money. I just don't.
Scott Galloway · 15:50
But here's the thing. It... Should companies...
Kara Swisher · 15:52
You know? They can't give it back.
Scott Galloway · 15:53
And it... Yeah. There's no way
Kara Swisher · 15:54
you can. And by the way, the Saudis boy... Saudis own a lot of Snapchat. They own a lot of Twitter. They did or through Kingdom Holdings, whoever. Then the high net worth individuals there, of which there are many. These print... There's like a 150 princes or whatever, how many there are. They're gonna buy this stuff, they can buy it on the public markets. I'm not good with that, but they can buy treasuries. They can buy anything else. But this... Taking this... Anyone who takes money right now from these people going forward to me is just...
Scott Galloway · 16:19
Hear you. Here's the here's the problem. As an entrepreneur, I'm I'm actually... I've I've raised a ton of money, I'm sure I'll raise more in the future. You're willing to disarm, but you're not willing to disarm unilaterally. And the question is, I pay 23¢ on the dollar to the government for them to think long term, and I'm fine not taking their money as long as my competitors can't. So I think this is really to the government to step in and say
Kara Swisher · 16:40
It's gonna be hard. Oh, yes. Can't talking about?
Scott Galloway · 16:42
You can't have money from from Saudi into into this country. These are asset sanctions. Otherwise It's
Kara Swisher · 16:49
not gonna happen. They literally killed a journal and Donald Trump is talking about, like, the the media's fault that the pipe bombs show up at their...
Scott Galloway · 16:55
At CNN. Love the most recent excuse. We drugged him, and we were gonna ask him if he would go back to Saudi Arabia.
Kara Swisher · 17:00
If he said, we're gonna let him go. Now it's premeditated. It's ridiculous. It's like a Bill Cosby deal... This is not gonna come from our government. Literally, the head of our government right now is saying it's the media's fault for the pipe bombs that were mailed to it, so I just don't even... I'm in a very angry mode today about that.
Scott Galloway · 17:14
But again, I'll press back on you. What do you do? You're an entrepreneur. It's competitive. You need low cost of capital.
Kara Swisher · 17:20
You don't take the money.
Scott Galloway · 17:21
And you let your competitors take it.
Kara Swisher · 17:23
You do.
Scott Galloway · 17:23
And you hope that your consumers
Kara Swisher · 17:25
No, if you want a soul, you don't take it. If you don't want a soul, you take it.
Scott Galloway · 17:28
So you're soulful and unemployed.
Kara Swisher · 17:31
Look, all the money is dirty in some fashion, but that's particularly dirty money right now. It's particularly good. I'm sorry. I just... Listen. I'm sorry. I have a soul. I'm gonna have to go. Anyway, we're gonna take a quick ad break. When we get back, we'll be talking wins and fails of the week. But first, I wanna talk about QuickBooks. In the next advertiser segment brought to you by QuickBooks, we'll hear from a business owner who turned their side hustle into a full time career.
[Ad break]
Kara Swisher · 19:32
Thanks to the sponsor of our show, QuickBooks, for Nat's story. Learn more at quickbooks.com. That's quickbooks.com. Now back to our show. Okay. Now back with wins and fails. Scott, wins? Wins this week?
Scott Galloway · 19:48
So I had terrible wins. My first one was Invisalign because I don't know if you noticed, but I have these trays in my mouth. I get the sense I'm gonna be gorgeous.
Kara Swisher · 19:54
You're gonna be gorgeous. I do.
Scott Galloway · 19:55
My dentist, Craig Spodak, is, like,
Kara Swisher · 19:58
the best of you're you're doing an ad for Invisalign.
Scott Galloway · 20:01
They're not paying us either, what's the deal? I can't speak or eat and both those things got me into trouble, so there's a lot of benefits to Invisalign. Real win of the week and just everyone must know we don't rehearse because you're always like I gotta get out of here, I'm having tea with Buchros, Buchros Galle So or anyways my win of the week
Kara Swisher · 20:17
think he died.
Scott Galloway · 20:17
I'm But saying other than that, he's doing really well. Okay. Other than that, he's just fine. So my win of the week is I've been thinking about this probably too much. Mhmm. I'm gonna get you out of the Fiesta. You and I are going car shopping.
Kara Swisher · 20:30
What?
Scott Galloway · 20:30
I figured out the car for you. What? I've... Okay.
Kara Swisher · 20:33
The scooter. Skip scooter. No. No. I'm not... I'm going to scooter.
Scott Galloway · 20:36
It's 2,000... We're going to the we're going the
Kara Swisher · 20:38
dealership. Car.
Scott Galloway · 20:39
It's a 2011 matte black Porsche nine eleven. No. Oh my god. Okay. Hold on. Hold on. You fit all the criteria for a Porsche.
Kara Swisher · 20:46
Can I just tell you just because you think I'm a lesbian, you think I like a like a man car? No. Oh, no.
Scott Galloway · 20:51
Lesbian wasn't gonna come into it. You fit all the criteria. Alright. Here are criteria for driving a Porsche.
Kara Swisher · 20:55
Okay.
Scott Galloway · 20:56
The first is you're shorter than five'ten.
Kara Swisher · 20:58
You have
Scott Galloway · 20:58
to be short to drive or shorter or short ish to drive. I get into a Porsche I look like a Q tip behind a German automobile. You have great hair. Anyone in a Porsche should have great hair. Have great hair. You bought in on that one, right? You have money. Yeah. Right? Most people who drive Porsches have really little penises, so having no penis qualifies.
Kara Swisher · 21:19
Alright, alright. You know Scott,
Scott Galloway · 21:20
Some glasses, stop great hair, rich, short, boom! Porsche, there is no substance.
Kara Swisher · 21:25
Alright Scott, we're gonna get to other issues. I'm stopping I'm stopping you. No. No. End to the O. I'm never buying another car again.
Scott Galloway · 21:34
Come
Kara Swisher · 21:34
on. I'm never buying another car again in There my is no That is my promise. Nobody... I've... I'm never buying another car in my life. Ever.
Scott Galloway · 21:41
You know what? I
Kara Swisher · 21:43
bought my last car.
Scott Galloway · 21:44
It's great to enjoy your youth once you're old enough to really enjoy it. Bought my
Kara Swisher · 21:47
last car. I'm making that... That is my fail of the week car people, because I'm never buying a car. Let me... Let's get to one failed idea. Facebook losing its Oculus founder.
Scott Galloway · 21:56
Well, Oculus. The whole thing's stupid.
Kara Swisher · 21:58
No. It's not.
Scott Galloway · 21:59
Virtual reality?
Kara Swisher · 22:00
No. Not. I'm not... No. It is not. VR? No. I love VR.
Scott Galloway · 22:03
Oh my god.
Kara Swisher · 22:04
Oh, no. That's gonna be another... That's sweet.
Scott Galloway · 22:05
We're right up there with three d printing.
Kara Swisher · 22:06
No. VR is gonna be a big thing. Two things. I ran applications for VR. I did a VR. I put a VR when I was riding a roller coaster in Hong Kong. I know that's a lot.
Scott Galloway · 22:17
There's a lot of commercial applications for that.
Kara Swisher · 22:18
I'm just telling you, it was so much... No. It was great. It was an amazingly And fun then I did something in the mall, these things, I can't remember what they're called, strapped on the computer on my back. My kids and I had the best time, hours of fun with VR, in a VR environment, playing with each other, doing different things. Amazing.
Scott Galloway · 22:34
Okay. Video games and fun stuff in malls.
Kara Swisher · 22:36
Yeah. Exactly. So what? That's $5,000,000 industry. No. It's not. It's much bigger
Scott Galloway · 22:40
than This is the biggest
Kara Swisher · 22:41
No, fail in you're wrong, empathy things. I think it has not Empathy. Been empathy, things that you wanna experience. I think it's gonna be big. I'm gonna go I'm gonna go out on one.
Scott Galloway · 22:50
Well, in five years, it's been an enormous stud. Why?
Kara Swisher · 22:53
So what?
Scott Galloway · 22:53
Because our... Of our new Jesus Christ, Mark Zuckerberg said it would unlock new worlds. It doesn't unlock anything.
Kara Swisher · 22:59
It could. It has... I think it will.
Scott Galloway · 23:00
AR. I'm with you on AR.
Kara Swisher · 23:02
Okay. AR.
Scott Galloway · 23:02
Alright. Holding up a phone to an apartment building.
Kara Swisher · 23:04
So he left. You don't think the Oculus founder? But what I'm thinking more is that all these leaders are leaving Facebook. That's what I was talking about.
— Predictions segment begins —
Scott Galloway · 23:10
Yeah. But I think on Oculus, it basically said the jig is up. They realize virtual reality is stupid. Oculus will probably be closed down in the next twenty
Kara Swisher · 23:16
four months. Okay. We're gonna move on to predictions in a second. Okay. And then let's move to predictions. Oculus is gonna move... This is your predictions, Next our next
Scott Galloway · 23:24
twenty four months. It's too bad because
Kara Swisher · 23:26
What about Magic Leap?
Scott Galloway · 23:27
Well, I wanna promote Magic Leap because I live in Florida, we only have two real unicorns down there, Chewy and Magic Leap.
Kara Swisher · 23:33
Chewy.
Scott Galloway · 23:34
I think VR think it's is ridiculous. Mhmm. Right up there with three d printing, Internet of Things, all these overhyped
Kara Swisher · 23:40
stupid things. Wait. Why is that... What are you talking about? You only
Scott Galloway · 23:42
have one Internet of Thing, your iPhone. You don't need to connect your blender to the Internet.
Kara Swisher · 23:46
No. You don't. But I have Nest. You have these regulating your house, locks, things like that. Sure.
Scott Galloway · 23:51
Yay. It's
Kara Swisher · 23:52
not a small thing. Right. Okay.
Scott Galloway · 23:54
It's not working. Anyways, I think VR is an enormous set. Think it's already dead on arrival.
Kara Swisher · 23:59
All right. Okay. Any other predictions? My prediction? I don't think I think Uber is going to go public, but it's not at that number. I think there's...
Scott Galloway · 24:05
Think it's lower valuation?
Kara Swisher · 24:06
I do. I do.
Scott Galloway · 24:07
And then what would they do? I think they would use the stock to go buy a bunch of hotel and transportation companies?
Kara Swisher · 24:12
Yes. Yes. I think if they have... They've gotta they've gotta get while the getting's good, just the way Apple did. If they if they go out at that number, they better start buying things that actually fill in the blanks. There's a lot of blanks there.
Scott Galloway · 24:23
What do you think happens before then? Do think the labor force rallies?
Kara Swisher · 24:27
No, don't think they're wildly disorganized, and that's an advantage I to wish they would. I wish there was some great, like, I don't know, Cesar Chavez of the people of Uber, or something that will organize them that would be great.
Scott Galloway · 24:39
So 12,000 employees, 120,000,000, that's literally $10,000,000 in equity value for every employee. We've never seen that in the history of corporate. I
— Predictions segment ends —
Kara Swisher · 24:47
think they need to be part of it. I think in the Airbnb thing, he's trying to figure out a way to give the renters of the places equity.
Scott Galloway · 24:54
He's trying to do that. Facebook is close.
Kara Swisher · 24:56
That's because he's a thoughtful, interesting man.
Scott Galloway · 24:58
You like him. I love him. You develop crushes.
Kara Swisher · 25:01
No, don't. I think he's he just like he's at least thinking about it, like at least like you don't hear it from them until you like hit them over the head with a hammer.
Scott Galloway · 25:07
So envision this: you're rolling down the what's that the 280 that highway out there in Portola or that connects San Francisco. You get in there, Portia, and in the back is Evan Spiegel rubbing your shoulder. Portia.
Kara Swisher · 25:20
No. I like Evan.
Scott Galloway · 25:21
Portia.
Kara Swisher · 25:21
I like Evan. I'm sorry that he's got some troubles, but I like him. Alright. Scott. I have to get out of here. Got to go have know.
Scott Galloway · 25:28
Hillary Clinton, blah blah blah.
Kara Swisher · 25:29
I know. I have to interview her, and I have a little pre interview thing. I'm going
Scott Galloway · 25:32
go And what's the most important question
Kara Swisher · 25:33
you're asking? Changed this week because of the pipe bombs and stuff like that. I, you know, I was going talk to her about the midterms, obviously. Russia, because she was right in my last interview about what the Russians had done. So I'm gonna let her take a little victory up on I think the elections, the impact of the Clintons, whether they should be around. I think I have to ask her about her comments about Monica Lewinsky.
Scott Galloway · 25:54
Just order the 21 year old giving her president a blowjob, not
Kara Swisher · 26:01
a piece of
Scott Galloway · 26:01
power lunch special.
Kara Swisher · 26:03
Am going to... We have to talk about it. We have to talk about that. But I think this thing is today, these these attacks on Democratic, it's it's sort of moved everything aside. It's it's a really disturbing are issue. Your views on that? Do think
Scott Galloway · 26:13
it's part of the coarseness of our discussion? What...
Kara Swisher · 26:16
No. It's it's what happens from the coarseness of our discussion. Yeah. It's what happens, and it's dangerous, and it's scary, and this is and the fact that the president The United States gets up and says what he says is appalling. And he... It's... I I I don't I don't even understand how someone could do that. I don't I don't understand how people could work for people that do that. So I think
Scott Galloway · 26:34
And back to the Clintons. Let me ask you this. If you if Clintons are our problem. Do they do they keep doing what they're doing, or do they take a victory lap and exit stage left?
Kara Swisher · 26:43
I have two minds. I think they should be able to do so. Think she should. I think John John Kerry gets to talk. John McCain got to talk. He ran a very unsuccessful election campaign. And men get to talk after they lose. Women have to skulk away and put on the sackcloths and ashes I and shut do get the issues around him, her husband, and everything else. But I want her... The thing she did was say women's rights are human rights and human rights are women's Yeah. That took a lot of guts to do that in China back then. I want that Hillary Clinton.
Scott Galloway · 27:11
Well, bottom line is she she... We probably picked the wrong Clinton for president. Right? She probably should have been president. Well... She's this uber competent, hardworking person.
Kara Swisher · 27:18
What a shock. The men got to go first. There you go. Right? Thanks.
Scott Galloway · 27:22
And a lasting prediction for the election.
Kara Swisher · 27:24
I interviewed Rebecca Traister this morning, so I'm in a in a... She wrote a book about women and rage and anger, and I'm in a Yeah.
Scott Galloway · 27:29
Angry mood today. You're all of those things.
Kara Swisher · 27:30
I'm today. Today. Yes. Am. Anyway, I'm gonna stay angry too. Thanks. Looking forward to talk to you next week. And by the way, if you have questions for us on the podcast, shoot us an email at pivot@voxmedia.com.
Scott Galloway · 27:40
Our show is produced by Rebecca Sinanes. Nishat Kurwa is Vox Media's executive producer of audio. Thanks also to Eric Johnson, and thanks for listening to Pivot from Vox Media. Join us next week for more breakdown on all things tech and business. If you like what you heard, please subscribe on Apple Podcasts or wherever you're listening.
Kara Swisher · 28:00
Alright, Scott. See you next week.
Scott Galloway · 28:15
This is Scott Galloway. I founded nine businesses. And eight of those nine businesses, a key partner has been QuickBooks, which enables the management team to focus on the levers of really driving value and also provides a dashboard to gain insight into the key operations and finances of the company. QuickBooks has been a pillar of my entrepreneurial efforts. Check out quickbooks.com.
