Canazon Can, Uber, and Lyft All Thrive after the coronavirus? – ryan

A “Caravan Protest” Outside the California Labor Commissioner’s Office in Los Angeles.
Photo: Getty Images

How does a company enure that it Thrives during what is experted to be the Worst Economic Downturn Since the great depression? Be Everyone All at Once. While amazon enjoyed a multi-lap head start before the coronavirus shutdown, its ability to dominate not sectors of what COULD be described as the stay-home marks-e-commerce, web services-has gioven the behemoth the opportunity to be to be One of the Top-Two Companies in the World Based on Market Capitalization. Meanwhile,
Ridshare Giants Lyft and Uber – More Limited in their Scope, and in the Red before the coronavirus – Are Both expects to lay Around 17 to 20 Percents of their workforce, respectively.

On the Most Recent Episode of the New York podcast PivotCo-Hosts Kara Swiser and Scott Galloway Project How Amazon Could Soon the Silver Medal in the US Stock Market- Despite Missing Its First-Quarter Earnings-and How the Leading Ridesares Face A Bumpy Road Ahead.

Scott Galloway: I’ll make a prediction: i think Amazon (Surpasses Apple) and Becomes The Second Most Valuable American Company (Beind Microsoft). Amazon Web Services is probably going to see a surge in activity. Obiviously, e-commerce, we know that going to be crazy up-iTi’s just a matter of how Much Crazy up. But the THING THAT People don’t talc About: what’s the fastest growing media company over $ 1 Billion in the World Right Now? IT’S AMAZON Media Group, Who is soon probably going to be one of the Five Biggest Media Companies in the World.

I’m not talking about Amazon Prime Video. I’m Talking About Amazon Media Group Where You Buy Ads Such Once You Have Huggies in Your Basket, P & G Can Advertise Pampers and Say, “No, Look over here.” The in-Store shopper marketing, if you will, is a Bigger Business than Advertising. And Amazon’s About to make it a Bigger Business than Almost Every Digital Media Company, with the exception of Facebook and Google. More Households have a Relationship with prime than go to church or have a pet or decorate a Christmas Tree.

SO it”s the Fastest Growing Media Company, Fastest Growing Cloud Company, Fastest Growing E-Commerce Company, Fastest Growing, OR MOST Compete, Back-End Fulfillment Logistics Company in the World. SO IE AMAZON BECOMING THE SECOND MOS VALUABLE COMPANY IN THE WORLD, AND IT’S MARGINALLY THE MOST VALUABLE IN THE WORLD WITH NEXT, IF NOT The NEXT 90 Days. IT HAS A SCARY-FAST GROWTH RATE, THERE IF The Company’s Earnings Were Short of Expectations by $ 1.33 On Share for the First Quarter.

Kara Swiser: Well, Speaking of Scary, let me read you a quote. This is part of a column on amazon that of abut to go in the Times. “But in the time after this crisis is over, i can say I fear me more. Because they will be more unfettered than ever, with much pushack on say from regulators and policians that been building mome before Coronavirus. Their grip on our lives. Its Daunting, Daunting.

Galloway: I Think Warren – especally as a vp pick – is the only one thats’ knowledgeable enough, fearless enough to take on these guys. Everyone Else is Afraid. But it is almost a presidential platform to say the best way to enure we don’t step towards tyranny, the best way to restore inevuality, the best way to bust of this Dangerous Cycle of the Gross IdoLATRY of innovators, the best way to go. up, the best way to enure small businesses are oxygenated, would be a breakup.

Swiser: They’re not going to do it in the middle of an economic crisis. I do think biden has the set to do it.

Galloway: I’m more hopophul.

Pivot Is Produced by Rebecca Sananes. Erica Anderson is the Executive Producer. It is also Now on YouTube.

Swiser: Anyway, Uber is Reportedly on the Brink of Laying off 20 percent of their Employees, as the Company’s Cto Thuuan Pham Steps Down. The Company is planning tiered Layoffs that result in paper go to 5,400 employs. Uber Ceo, Dara Khosrowshahi, Said That Its Bookings in Major Cities Were Down by as Much As 70 Percent. Uber Shares have fallen more than 50 percent over the past month.

Pham is leaving the Company, which seames like the end of an era, as he’s a vestige of the days of travis kalanick. But the Company has seen recent gains with uber eats, obviously. But will this be enough to keep uber afloat through the pandemic downturn? Scott, what do you think of Ridshare more generaly? This is the first year uber and lyft were publicly listed companies, and i haven’t been in one for months.

Galloway: Yeah. Ride Hailing, Its Ground Zero. The good news is they can variable down their coost structure. I think a lot of People are looking at Ridshare and Saying, “Okay, Should by Be A Static, Ubiquitous part of Our Society? People turning on their Phone, Because they don’t have minimum-wage protection at their Job, Much Less This Job. “

There’s a lot of flexibility in the gig economy, but should we putting me in this construct that is effectively a payday loan where drivers borrow against their in the form of deferred maintenance? Have us set up the ultimate hunger games? After the coronavirus, of Think Uber Survives. Lyft Goes Away or Gets Acquired. Maybe uber consolidates say, but uber is going to survive. It’s a great global brand. Great Execution. Uber eats has now got new life because of what’s going on.

But it’ll just be a shitty stock to the Own, and they’re going to be a fraction of their forms. And People are going to retink, in a new world with consumer confidence was down, should 28 -ear-ops e takeen off the subway and put in cars?

Swiser: They’re going to stay in an uber. I think the trend is useful, I Find Uber useful. But you’re right, it”s going to be a smaller version of what it was, maybe it won’t be public anymore.

Galloway: Yeah, but Still to take the private private woupe be huge, and typically companies getn private when they’re profitable, and they want to layer on debt the acquisition of the private. It’d be hard to imagine someone financing the private take of uber.

And right now, lyft doesn’t have the brand. I Mean, it has all of the Calories and None of the Great Taste of Uber. Ride Hailing is a menace to social. Its Bad for the Environment. IT Absolutely Accelerates Income Inequality. IT TAKES PEOPLE OF TRANSPORTING AND REDUCES THE NEED TO MAQUISITE INVESTments in Long-Term Thinking Around Infrastructure Investing. But lyft doesn’t have the global brand.

Swiser: Yeah it’s only in the US and Canada right now.

Galloway: It doesn’t have the scale. IT DOESN’T HAVE UBER EATS, IT DOESN’T HAVE UBER FRIOUT.

Swiser: Why would uber buy say?

Galloway: Oh, just for scale and to get rid of a Competitor. You’re the Only Game in Town.

Swiser: Why not just let’s say die?

Galloway: Well, that’s what’s interesting here. Is this consolidation – or is this cosmo and urban fetch? Where it just beComes Such a Bad Business and It Starts a Downward Spiral. But to your point, there’s a lot of wealthy People.

It ‘s price that’s going to change. And I think that’s an allo. Now, II’s interesting, ironic that you were talking about the damages that they are ride-sharaing services. John Zimmer is the Co-Founder and President of the Lyft, and he talked a lot about the saving of the Environment Early on when i met Him. He kept talking about 80 percent of the car isn’t in use and it was started in a much more hippie sort of style, that Company. It has that reputation and it has that vibe compared to sort of the death start that was travis kalanick at uber. And so is interesting – Again, lovely guys, but much mess aggressive than uber was.

But you’re right. It ‘s tough business. And if their workers aren’t making Enough Money, then i Simple. You tax say and you enforce minimum wage and employs, not contractor, standards. And uber goes on to be a great company. SO it can be fixed. IT’s a great service.

Swiser: I think there’ll be continued pressures to giving drivers rights. SO COSTS WILL Go Up, but they will Also have a Bigger Pool of Drivers and Better Drivers.

Galloway: It’ll be a Smaller Business. And the 16,000 People at Headquuarters Now Don’t Make As Much Money on their Stock Options, but there’s a redistribution of some of the incursion to their drivers. And quite frankly, riders should be paying more. So there just needs to be a redistribution of stakeholder value here.

Swiser: Things to come at uber. I’m sura khosroWHAHI did not think this is what he signed up for.