Vox - Code Conference, Day 2https://cdn.vox-cdn.com/community_logos/52517/voxv.png2018-06-11T23:17:18-04:00http://www.vox.com/rss/stream/171490672018-06-11T23:17:18-04:002018-06-11T23:17:18-04:00Full video and transcript: U.S. Senator Mark Warner at Code 2018
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<img alt="U.S. Senator Mark Warner" src="https://cdn.vox-cdn.com/thumbor/eluEmMWQAvb8dvg1gGpo1pfBDts=/124x0:1261x853/1310x983/cdn.vox-cdn.com/uploads/chorus_image/image/59903009/REC_ASA_CODE18_20180530_090813_1124_preview.0.jpeg" />
<figcaption>Asa Mathat</figcaption>
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<p>On Mark Zuckerberg’s Congressional hearings: “I thought, ‘Oh God, they’re going to leap to it.’ Then I was saying, ‘Oh my God. This is an embarrassment.’”</p> <div id="r2w1DN"><iframe src="https://player.megaphone.fm/VMP8035265157" style="border: 0; width: 100%; height: 200px;" allowfullscreen="" scrolling="no" allow="autoplay; encrypted-media"></iframe></div>
<p id="LCLcIz"><strong>Peter Kafka: We don’t need a warm-up for Senator Warner, right? </strong></p>
<p id="TeAgT9"><strong>Kara Swisher: We don’t need a warm</strong><strong>-</strong><strong>up.</strong></p>
<p id="p6VVJe"><strong>Peter Kafka: Let’s bring him up onstage.</strong></p>
<p id="HUbUce"><strong>Kara Swisher: This is Senator Mark Warner, he is the Vice-Chairman of the Senate Select Committee on Intelligence, and he’s been busy this year. So, let’s bring him out.</strong></p>
<p id="8B75AW"><strong>Peter Kafka: Thank you sir, over here.</strong></p>
<p id="JKNSGI"><strong>Kara Swisher: Can I call you Mark and not Senator Warner? Because I knew you</strong><strong> ...</strong></p>
<p id="b0BuKc"><strong>Mark Warner</strong>: You can call me whatever you like.</p>
<p id="VjAN5b"><strong>Kara Swisher: Okay, well, Phyllis, I met you back in D</strong><strong>.</strong><strong>C</strong><strong>.</strong><strong> when I worked for the Washington Post.</strong></p>
<p id="af1vye">I can still claim I’ve got a year or two more of being on the tech side than the VC side, wireless side, than I have been in politics.</p>
<p id="KWs9Hc"><strong>Kara Swisher: Absolutely, telecom, it was a lot of stuff because D</strong><strong>.</strong><strong>C</strong><strong>.</strong><strong> was sort of the front of telecom and early internet. But now, you’re where you are. So, let’s start with the report that you put out, let’s start with that. We’ve got a lot of things to talk about, from privacy, China, use of social media, hacking, cybersecurity, there’s a lot of stuff going on.</strong></p>
<p id="VaJqsj">Lots of stuff.</p>
<p id="9swtad"><strong>Kara Swisher: Lots of stuff, so let’s talk about the report, and sort of the discrepancies between the House report and the Senate report, and how you look at where you are right now.</strong></p>
<p id="AjiYkT">Well, I never thought that I would be this engaged in one of the wildest things that I’ve ever been involved in. The notion that a foreign country, an adversary, decided to massively intervene in our election. What they did — and this part, there is agreement from Democrat to Republican, from Obama official to Trump official, virtually everyone other than the President agrees with three things:</p>
<p id="TdnVkR">One, Russia massively intervened in the election, hacked both political parties, decided to release information that would help Trump and hurt Clinton.</p>
<p id="f4UWN3">Second thing they did was they scanned or broke into, mostly didn’t get into the actual vote totals, they scanned or broke into 21 states’ electoral systems, showing how vulnerable our electoral systems were.</p>
<p id="GDGR5q">Third is they used social media. We initially thought just with paid advertising, but really paid advertising was a tiny component of an otherwise well-organized effort with internet trolls, bots, and the whole notion of fake accounts in a way that caught the United State’s government and, I think for the most part, the platform companies off guard.</p>
<p id="VddK7z">We’ve gone a year into this, we’ve basically come out in a normal world reconfirming what the intelligence community already said would not be that much news, but because the House investigation has gone so far off the rails and become so partisan. They basically tried to walk away from the facts and said, “There was not intervention on behalf of Trump.” No one who’s looked at this on an objective basis would deny they had a favorite. It was obvious they played for that favorite. They were a little surprised as much as we were when he won, but they had a clear intent.</p>
<p id="rP6peN">Where we are now is, we’ve gone the election security piece. We should all, while we’ve got people focused on 2020, 2018 is a big election year obviously, and our systems are not fully safe enough. You know, we’ve got to make sure every voting machine in America has a paper trail. We’ve got to make sure folks have got appropriate clearances. Again, in a normal administration, you’d have someone in charge of election security working out of the White House, because they’re state, local and federal. We don’t have that. </p>
<p id="oqAvVW">So our committee, which has been pretty bipartisan, has laid out some plans. We did the intelligence community assessment, reaffirming that. We will say what the Obama administration did right and what they did wrong. We’ll have a piece on social media that will probably come late summer with some recommendations on what we had there. And then we’ve got the big question, which is the collusion question. </p>
<p id="e8qmhB">I’m reserving judgment on that until we’ve had all the witnesses in, but the amount of contact between individuals affiliated with the Russian spy services and folks that were at least affiliated with Mr. Trump, it’s unprecedented. </p>
<p id="LoRfim"><strong>Peter Kafka: You’re the ranking democrat on the Intel Committee, you came out with this report that in a normal world would be extraordinary, right? All the things you just listed. In part, I guess because some of this had come out through the intelligence agencies already, but in a normal world this would be a giant news story. Are you frustrated and</strong><strong>/</strong><strong>or worried the stuff your committee is putting out is not getting enough audience?</strong></p>
<p id="HLbGv2">I think what’s happening is people’s attention span lags a little bit, and when you’ve got the president out every day basically trying to undermine ... he didn’t focus on us as much, I get occasionally tweeted at, but when he focuses entirely on the Mueller investigation, this is not the actions, I would argue, of someone who has nothing to hide. I mean, when he constantly comes back with these attacks ... And what worries me beyond the fact that people have kind of got exhaustion from the day-to-day back and forth of this story, what worries me beyond the Russians themselves or the collusion issue, but the president’s willingness to kind of make broad-based ad hominem attacks against the whole integrity of the FBI, the whole integrity of the Justice Department, beyond just the Mueller investigation, criticize his own people who are not willing to do inappropriate things, like shut down the investigation. </p>
<p id="GRs7F1">What I think he does, with at least some of his allies, they’re starting to undermine rule of law. And there’re plenty of episodes in history where people start to decide, “Well, I’m going to follow this law but not follow that law.” Because somehow the legitimacy of law enforcement is going to be put into question. That puts you in pretty dangerous territory.</p>
<p id="1IGmyC"><strong>Peter Kafka: So, what can you guys do to push back? It seems like he’s winning this battle, and he’s got a combination of exhaustion on the American public’s part, and institutions that have sort of held up that are under attack, what can you do personally?</strong></p>
<p id="37krFU">I think there’s three things.</p>
<p id="aVw3LE">One — and I’d like to see more of this — people across the country, particularly folks that aren’t necessarily partisan, but former judges, prosecutors, whatever, they’ve got to stand up in their own community and say, “Hey, rule of law needs to trump any individual person, and no one is above the law.” That kind of grassroots stepping up, how hard can that be when we’re talking about basic integrity, things like the FBI and the Department of Justice?</p>
<p id="6nIO32">We’re going to need, and I think even Mr. Trump’s appointees, the FBI director, the director of National Intelligence, the host of others, we got last week to an area where some of the allies, his allies, got very close to asking these intelligence community leaders basically to violate, if not the law, long standing American traditions where you’d have to reveal the identity of an informant. You know, the truth is, spy services use informants in lots of ways, that has been part of the history of the business. When you force people to take completely unorthodox positions and break traditions and laws, that would be another point where there would be this moment of — potential moment of — crisis.</p>
<p id="oQhrzf">And third is, I think, in some small way, maintaining the Senate Intelligence Committee as a bipartisan effort. And that’s taken, there’s a lot of paddling underneath the surface.</p>
<p id="PcRAda"><strong>Kara Swisher: But how’s that</strong><strong> ...</strong><strong> what’s going on</strong><strong>?</strong></p>
<p id="xvIVh4">So that validates as well when Mueller will come out ...</p>
<p id="LXiYtL"><strong>Kara Swisher: But what’s going on beneath the surface, how difficult-</strong></p>
<p id="PvTApK">There’s enormous pressure. On this committee, I’ve got on one end a Tom Cotton, and the other end a Kamala Harris and Ron Wyden. So we span the ideological spectrum, and there’s enormous pressure on some of the Republicans to say, “Hey, it’s time to get this thing over, let’s shut it down, let’s not go ahead and see the balance of the witnesses, because there continues to be no additional meetings or other things that pop up that need some investigation.” On the other hand, on the Democratic side, there’s a lot of pressure to say, “Of course there’s collusion. Call this guy out as guilty tomorrow, don’t wait for the process to finish.” </p>
<p id="0dyFI4">And so, we’re trying to maintain our equilibrium, at the same time to try to protect Mueller and Rosenstein where they have a lot more tools than we do. They’re doing a criminal investigation, we’re doing a counterintelligence investigation. But I do think, the notion for those who may be partisans in the crowd and say, “Well gosh, if the Democrats take control, they’ll be able to really ramp these up!” I think the American public will be tired of it if this is not wound down in this calendar year.</p>
<p id="IIBKST"><strong>Kara Swisher: Okay, let’s talk about what happened on the things, we talked about it, we were together last night, we talking about a bunch of things. </strong></p>
<p id="zRWaUQ"><strong>First is, what the Russians did, the things you mentioned, the buckets</strong><strong>.</strong><strong> I do want to get to privacy and tech companies too, but let’s talk about what they did. You were talking a lot about the need for the United States to step up it’s cybersecurity efforts, and how we spend so much money on an airplane, and the Russians made a small investment in cybersecurity and had enormous benefits from it. </strong></p>
<p id="D5iwac">Well, we should have actually been able to predict more of this, because a lot of the tactics that Russia used in 2016 in America, they’d used in Ukraine, Estonia, other Eastern European nations for a while. And they actually laid out their game plan back in 2011 when their equivalent of their chairman of the Joint Chiefs of Staff, a guy named General Gerasimov, basically said, “Russia can’t compete with the West with tanks, trucks, planes, ships, traditional military.”</p>
<p id="1xpd77"><strong>Kara Swisher: They can’t afford it.</strong></p>
<p id="6e6xqv">They can’t afford it. But, in the era of misinformation, disinformation, which Russia — and previously the Soviet Union — are pretty good at, in the age of asymmetrical conflict with cyber, they can compete. And candidly, in those categories, they are every bit as good, and on the misinformation front, they are actually better than we are, so the point I bring up sometimes is Congress just passed a — late as always — but a big defense budget, $700 billion. Russia has a defense budget of $68 billion, but in the realm of cyber and misinformation, they are our peers, and I feel like we may be buying the world’s best 20th century military, but when conflict in the 21st century will, I think, be in the realm of the cyber domain and misinformation ...</p>
<p id="N8MAMB"><strong>Kara Swisher: So, what does that mean? This is something the United States had done for</strong><strong> ...</strong><strong> it’s been going on</strong><strong> ...</strong></p>
<p id="Y3NqMq">This is not just a critique of the Trump administration. The last 15 years, the United States of America has not really had a cyber doctrine. For the most part, business until very recently has wanted to kind of have this program be down at the CTO or CSO level, not at the CEO level. Government, it doesn’t fit neatly into any category, and we still do have enormous distinctions between if someone originates a post in St. Petersburg and it pops up in Los Angeles, our government will, the CIA and NSA will check out what’s going on in Russia, FBI and DHS will check out what is going on in America, and it sometimes, things fall between the cracks.</p>
<p id="4Q48Py">And we have been so, I think for a decade-plus, so concerned about any kind of cyber escalation, because we were more technologically dependent, that while we would take on second-tier states, North Korea, Iran, ISIL, what have you, with near-peer adversaries like China and Russia, they’ve been basically from intellectual property to messing with our systems, stealing us blind. Now more recently, intervening in our most vulnerable spot, taking advantage of our open system to try to intervene in our democracy. </p>
<p id="uFtkvV">So, I think a cyber doctrine would include things like the notion that there ought to be some kind of international treaty or convention around what cyber tools can be used, and which ones, frankly, should just be off the map. And, if a country did use those tools, we ought to make clear that we’re going to potentially respond in kind. I think there’s some low-hanging fruit that I’ve got some legislation on that would take us in the right direction. </p>
<p id="vNBxME">You know, we’ve got 10 billion IOT connected devices, we’re going to go to 25 billion in the next, you guys would know better than I, five years. I think when, at least, the federal government goes out and buys IOT device, it ought to have at least minimum security, so it ought to be patchable. It ought to not have an embedded passcode, some, at least de minimis standards there. I think we ought to think through what kind of world we live in if Equifax can get away with not doing a patch and exposing 150 million fellow American’s personal information, particularly when we didn’t even have a customer relationship? There out to be some liability there.</p>
<p id="9kZaoP"><strong>Kara Swisher: Yeah.</strong></p>
<p id="38Q6T5">I think something’s wrong when Yahoo’s got 500 million users hacked into and that was not even material enough to report in their SEC filings. There are things that we can do from the national and international perspective. There are some legislative issues here, there are things we can do around IOT. </p>
<p id="L6quWh"><strong>Peter Kafka: We have a publicly funded military, right? </strong></p>
<p id="30PrAr">We have a publicly funded military.</p>
<p id="W8e5cA"><strong>Peter Kafka: </strong><strong>A</strong><strong>nd then when it comes to cyber, right</strong><strong>, w</strong><strong>e’re asking everyone in this room to take care of it on their own. Is that sustainable? Does more of that responsibility have to become just the government’s</strong><strong> ...</strong></p>
<p id="lOvpjq">We do have, yes, we do have ... Cyber was like Homeland Security in the sense that it got really hot in the last five years in government and every branch of government has gotten now ... Every one of the military branches, obviously the NSA, Cybercom has been created. I think we still have not sorted out where the boundaries are between government activity and private sector. </p>
<p id="3eZOen">And people understandably are reluctant to have mandated cyber standards that if they got stuck in stone and weren’t able to move as technology moved that’d be a bad thing. The flip side is when the only thing we’ve ever done legislatively so far on cyber is a pretty weak-kneed information-sharing bill, and when it comes to critical infrastructure and certain other things, I’m just not sure that’s going through.</p>
<p id="6RW5GB"><strong>Peter Kafka: What about in terms or resources. Again, like Sony who’s responsible essentially for defending itself against North Korea. Should there be some sort of really robust arm of the government, whether it’s the military, that’s responsible for all of this stuff?</strong></p>
<p id="Qq53sH">One of the things, I think there will be that shared responsibility. One of the things that the government does a really crummy job on is communicating to the community and tech per se, I mean most folks in tech don’t want to take a meeting with the FBI. But that’s the folks that we normally have as the first outreach level. </p>
<p id="Wjq1Mi">One of the areas that I’ve gotten obsessed about in the last two years as President Xi has consolidated power in China, I think he has taken the situation where a lot of these Chinese tech companies already were much too collaborative with their government and now China has a very aggressive efforts to steal our technology, invest in our early-stage companies. Many of the students that come over come with a mission of going back with technology, yet we do a really poor job of notifying VCs, university presidents, companies, of the threat. And we’ve got to up our game. </p>
<p id="ogOGRx">And that goes into problems like classification issues. But if we have all the Obama administration people and all the Trump Security Administration people all saying that Huawei and ZTE pose national security risks, I think we ought to listen to them. And not simply use that as a trading chip. I’m not sure this president actually listens to his own national security folks, but it is a national security concern and ought to be treated as such, not a trading chip in a trade war. </p>
<p id="53uHIW"><strong>Kara Swisher: So when you’re thinking about that idea of who should be in charge, what Peter was talking about, our legislators, let’s go to the Facebook hearings for example, didn’t seem quite up to speed on things. </strong></p>
<p id="rmLKkh">You think? </p>
<p id="AWckxj"><strong>Kara Swisher: Yeah, I think, I think. What did you think? </strong></p>
<p id="fffrCE">I was glad I was not on that committee. </p>
<p id="SN4X5v"><strong>Kara Swisher: Okay. </strong></p>
<p id="O0wFp2">I was bummed at first, because I thought ... I want to get all three from Facebook, Google and Twitter in and I thought, “Oh God, they’re going to leap to it.” Then I was saying, “Oh my God. This is an embarrassment.” </p>
<p id="1qBvHZ"><strong>Kara Swisher: Right. </strong></p>
<p id="1j1CGF">And that’s a challenge, I mean, to try to sort people up through cyber. Obviously, some of my colleagues didn’t really understand how social media works and what the business model is. The only good news here is there’s nothing inherently Democratic or Republican about a National Security strategy that’s built around ... has cyber as a major component. There’s nothing inherently liberal or conservative about notions of how you put some guardrails around the ecosystem in social media. </p>
<p id="Dysoua"><strong>Kara Swisher: But you have to know how to do it or know what to do. I mean, do you think Facebook ... I’m using Facebook as just one, but you were talking about Twitter and Google and others. Do you think they’ve been properly looked at by legislators</strong><strong>?</strong></p>
<p id="tRy6o1">I think it’s first ...</p>
<p id="gtzTQV"><strong>Kara Swisher: I mean</strong><strong>,</strong><strong> where do you think it’s coming</strong><strong> from</strong><strong> in terms of regulation? </strong></p>
<p id="JyrF30">I think, and again we’ve gone back and forth with Sheryl and Zuckerberg and a lot of the folks at Facebook on this, at first they blew off this threat. I first raised it in December of ‘16. They said, “It’s crazy, politicians, they — Russians — can’t intervene.” By the French elections, they were bragging about the fact they’d taken down 30,000 Russian-affiliated accounts that were intervening in France. </p>
<p id="NJuLZN">I think they were slow to the game. I think that last week when they came out with some other new transparency tools, pretty darned good. But transparency around paid political advertising, I just don’t think it’s going to be enough. That is not really where the rubber hits the road. Where the rubber hits the road is misinformation and disinformation in terms of somebody saying they’re here, but actually being in Moscow. And having that fake identity. And we’re still chasing, in a sense, static 2016 fake accounts. Next wave, as this crowd knows, you can talk about Deepfake technology and you can put somebody’s literal video image and face and voice realtime streaming a message to you and that have no connection to that real person. </p>
<p id="zS5bxa"><strong>Peter Kafka: But Sheryl and Mark now say, “Look, we’re spending a ton on humans to look at this stuff near term and we’re working on programming as fast as we can. And that we know this is a spy versus spy game, but we’re serious about it now.” Do you believe that they’re putting their best work into it? </strong></p>
<p id="OUNvvm">I don’t think ...</p>
<p id="qI9hZG"><strong>Peter Kafka: We’re going to reduce our profits</strong><strong>.</strong></p>
<p id="v12JuY">Here’s what my belief is: If we have some major event using platform companies, where the markets are rocked because of some misinformation or disinformation and an election is clearly overcome, you will have Congress overreact. What I’ve been trying to reach out to the platform companies to say, “Work with us on the front end, because if you leave it to Congress after a bad event, we’ll screw it up.” That means, I think they need to lean in more. </p>
<p id="trGzsq">This issue is not going to go away. And what we need, I would argue, is a ... We need to at least start the debate. And I would argue there’s, again, probably three buckets. And I’ve got some ideas, but I don’t have a firm answer on where this ought to head, because none of these are ideal solutions. </p>
<p id="qzpTcR">I mean, you have one around identity and misinformation, disinformation. That would go from, do you need a fresh look at Section 230, which exempts all these companies from being treated as media companies? Should there be some of the same responsibilities that you have at Vox? There’s questions around, should you have at least some geographic indicator if a post originates ... If somebody says they are posting from an American [account], which indicates on a foreign basis. Should you have some identity requirement for actual identity validation? That may make sense in America, it may not make sense if you’ve got a journalist that’s trying to write important things in a place like Egypt or Saudi Arabia. </p>
<p id="gbnSnN">Should you have at least the right to know whether you’re being talked to or communicated with by a human being or a bot? So there’s the identity and misinformation bucket. There are serious questions around privacy, do you look at what the Europeans did, can you look at ... Should there be some fiduciary duty the platform companies or others have about your data? </p>
<p id="M3PxSa">There’s questions around competitions. I’m an old telecom guy, it use to be a real pain in the ass to be able to move from one telephone code to another until we legislated number portability. Should there be data portability so that yes, you can get off Facebook or get off Google, but can you take all of your cat videos with you? and-</p>
<p id="1i1yyY"><strong>Kara Swisher: I don’t have any cat videos. </strong></p>
<p id="O052lZ">And make it easily portable to another site? These are at least things that we ought to debate.</p>
<p id="zl5OWF"><strong>Kara Swisher:</strong><strong> But see, that might have been</strong><strong> the problem, this data portability was the issue with Cambridge Analytica. I mean, they were pushing data</strong><strong> ...</strong></p>
<p id="72fHIS">Well, you can actually — and I’m not saying this is the right answer — you can say you can only give first-person approval to someone to use your data, so there’s no second- or third-tier approval process. Or you can say you own your data forever and the platform companies have a responsibility of somewhat compensating you, so that would create a market circumstance where you might have intermediaries between you as the individual and the platform company. </p>
<p id="sjaS59">I don’t know what’s the right answer and I don’t ... Let me be clear, this is an area of enormous innovation. The last thing that I’d want to do is stifle that innovation or kneecap American companies. When you’ve got Chinese companies, one step behind, continuing to go for national ...</p>
<p id="p71NeN"><strong>Kara Swisher: And American companies doing unnatural acts to get into China, correct? </strong></p>
<p id="qSr7W6">And American companies basically giving away their birthrights to try to get into the Chinese market. </p>
<p id="0mTf1q"><strong>Peter Kafka: You’ve mentioned China now a few times, obviously a big issue for you. How do you balance legitimate security concerns versus the perception and reality that fending off Chinese competition is protectionism and we’re not actually trying to worry about our security, we’re just trying to keep competitors out of the country? </strong></p>
<p id="WnN7FZ">I think that maybe in traditional industries that would be the case. In tech, I think the Chinese are operating on a different rule book than we are. I don’t think ... It is a market economy with a giant asterisk that says their government will force foreign-based companies, not just American companies, to ... They will censor them, they will do things that companies will respond to, that they would not respond to any other nation in the world. </p>
<p id="9urZOa">Secondly, the major Chinese tech companies, Alibaba, Baidu, Tencent, the host of others that this crowd knows about but most of the folks I work with don’t know about, that are the telco companies, the Huaweis and AZTs and others. They are all penetrated, deeply, by the Chinese Communist Party. And I believe at the end of the day, owe at least as much allegiance to their government as they do to their shareholders or their business plan. </p>
<p id="FNDThx">And third is, their willingness to come over in a much more, not just whole of government, but whole of society way, to steal outside technology. That’s a real deal and we don’t ... If I get skeptical looks on this, that is a failure of me and the intelligence community to present that case to everybody in this room to convince them. </p>
<p id="qA7jUU"><strong>Peter Kafka: What do you want from Silicon Valley, from this crowd, every</strong><strong>one</strong><strong> here is trying to get into the Chinese market or they’re already in it, or their supply chain is deeply enmeshed in there. Do you want them to pull out? </strong></p>
<p id="rxyYsR">What I’d like them to do is to be cautionary. If somebody’s coming in offering you on early-stage, Chinese-backed, 2x what anybody else is offering you, maybe it’s worthwhile pausing. As we think about wireless providers, local governments, others, I worry buying some of the Chinese hardware, because it’s a lot cheaper, there’s no American telcos left. Telecom equipment left, because it’s a lot cheaper than the Europeans, there may be a reason for that. </p>
<p id="wNDhRt">I think often one of the things that maybe scarred me was Kaspersky Labs, the Russian-based company, that clearly was tied into Russia. We realized that in 2013, it took us till 2017 to get it off the GSA acquisition list. Even though everyone in the intelligence community said, these folks are bad apples. </p>
<p id="w60baz"><strong>Peter Kafka: Do you think that people are willing to really take a serious hard look at where the money is coming from, whether it’s China, whether it’s Russian investors, other sovereign wealth funds or wherever? </strong></p>
<p id="8e0UfO">I think if that money comes with ties and a world where ... I go back again to where I think conflict will take place. If conflict is going to be less in the 21st century of rockets firing at each other, but instead, manipulation of data, manipulation of information, then yes. I think people, I hope, will recognize if a deal’s too good to be true, there may be a reason for that. </p>
<p id="L4G11X"><strong>Kara Swisher: Let me ask you one quick question</strong><strong>.</strong><strong> You referenced Donald Trump tweeting at you, the impact of social media and things like Twitter, you’ve been scolding of Twitter and others. How do you think he uses that? Is he effectiv</strong><strong>e?</strong></p>
<p id="GXUjAW">I think he’s brilliant. I think he’s brilliant when using it. </p>
<p id="xuEbNf"><strong>Kara Swisher: What’s it done to politics?</strong></p>
<p id="kDca0x">What it’s done, though, is it’s almost like, one of the things that some of the platform companies we’ve sort of talked through a lot is I don’t think they necessarily come with a political bias, but their algorithms are such that if you’re reading a story on the left, the next story has to be more outrageous to get your eyeballs to go to that and you just keep feeding the beast. And in certain ways, that’s what the president has done.</p>
<p id="cN11Ic">He keeps finding whatever the mean, the traditional approach, and it becomes each and every day, each and every week, slightly more outrageous. And at some point — whether it is in the firing of Mueller and that investigation, whether it’s asking the intelligence community or the FBI to give up classified information inappropriately for partisan purposes — I think we’re gonna have that moment where all of us in this room are going to have to decide on which side of the line we stand.</p>
<p id="fSEb2y"><strong>Peter Kafka: You don’t think we’ve hit that line already?</strong></p>
<p id="yptT8o">I think we have. For a lot of the men and women I work with, I’m great friends with on the Republican side, we’ve not hit it with them, but I think we’re, we get amazingly close. We got closer last week than I think people realized when the White House and some of its allies were trying to force revealing of classified information to a Republican-only briefing on intelligence. That’s just not the way any administration has operated in the last 70 years.</p>
<p id="tBNZPM"><strong>Peter Kafka: And when that line gets crossed, what happens?</strong></p>
<p id="nUN8EC">When that line gets crossed, an awful lot of the senators I work with that said, “Don’t worry, Mark. I’ll be there if he crosses that line,” we’ll see what happens. </p>
<p id="E8fV8i"><strong>Kara Swisher: Al</strong><strong>l </strong><strong>right, on that note</strong><strong> ...</strong></p>
<p id="Nicec6"><strong>Peter Kafka: Questions?</strong></p>
<p id="mJEQM6">Nothing like cheering you all up in the morning session. Other than that, how was the theater, Mrs. Lincoln?</p>
<p id="Jzx9nD"><strong>Speaker 1</strong><strong>: Senator Warner, I wanted to ask, you just answered the question about your Republican colleagues, but what will the Democrats do if the president fires Rob Rosenstein or steps into the Mueller investigation? And the second part of the question is, Rudy Giuliani has said this weekend that the whole reason that he’s out there with this campaign is because they’re trying to fight against impeachment, meaning they think it’s coming.</strong></p>
<p id="1AUjzk">I think the Democrats will be united in saying that was a red line. I started raising that issue vis-a-vis Mueller before the holidays and I think a lot of our initial reaction will be based on can we ... that barrier is broken. Will the country step up in a bipartisan basis or is he so, Mr. Trump, so kind of put us in our corners that people are willing to have an active, ongoing investigation of the president of the United States shut down for political purposes or have the director of the FBI or part of the Justice Department reveal confidential information. If our country has gotten that partisan and people don’t rise up in anger on that, we’re in a bad spot.</p>
<p id="A93VJM"><strong>Kara Swisher: And then what happens?</strong></p>
<p id="TP2AvS">Stay tuned.</p>
<p id="xhtU3h"><strong>Kara Swisher: So what do the Dem</strong><strong> </strong><strong>... Go ahead</strong><strong>,</strong><strong> Luther.</strong></p>
<p id="FybZY0"><strong>Luther Lowe</strong><strong>: Senator, yesterday Brad Smith, the president of Microsoft, suggested that the U.S. vs. Microsoft case led to Microsoft kind of missing a moment and oxygenated the markets, allowed for new entrants to come about. Do you think that antitrust enforcement is an appropriate way to address the concentration that gave bad actors the economies of scale, which led to the mass manipulation of our electorate?</strong></p>
<p id="bk753s">I don’t think antitrust in the traditional way that American law has been applied, which is, the real basis is, is the consumer getting a cheaper price? Well, under that analysis, the consumer’s getting a cheaper price. But I do think there is something different between a Microsoft or even an Apple and the companies that, the platform companies who literally, we touch our phones 150 times a day, we give them more data about ourselves on a daily basis. That level of concentration is of a, I believe, of a different type.</p>
<p id="pPY52y"><strong>Kara Swisher: You called it a growing beast?</strong></p>
<p id="2CcrvS">I would call it kind of a “holy heck” moment in a variety of ways. In a certain sense, again one of the reasons I don’t want to come in heavy handed on this is that if we simply replace those entities, American entities, with Alibaba, Baidu and Tencent, and you have them combining their information with a billion people in the world of artificial intelligence, they start with a bigger N, that may give them a lead that no other company can catch up with. And I do worry that everything that I’ve seen on startups, if you’re kind of in the app space, your ability to go to scale, you’ve got one exit vehicle and that’s some of the big guys. </p>
<p id="Zx1t8u">So where this breaks out, I’m not sure yet. But I think we ought to have these kind of ... I think we should not be afraid of having these kind of conversation. I don’t come in, though, as a former business guy and tech guy — I was in the wireless business, the co-founder of Nextel — I don’t come in with the notion that a regulatory framework is necessarily the right answer, because I’ve seen how that can screw up innovation, but completely unfettered or don’t worry, we’re going to self-regulate alone, I just don’t think that’s going to cut it.</p>
<p id="tgLPrr"><strong>Speaker 2</strong><strong>: Senator, you referenced a Gang of Eight meeting earlier this week — or last week I guess it was — that’s sort of reflective of the kind of atmosphere in the House, and I think you and Senator Burr have sort of tried to keep the collegial atmosphere of the Senate, the traditional atmosphere of the Senate. Do you fear that going away? Do you see anything faltering in that sense of how the Senate has traditionally been, especially with the president’s attitude towards Senator McCain, etc.</strong></p>
<p id="1y6RWc">Yeah, I think on a general basis, the Senate’s a small-enough club that you kind of know everybody. I think most folks do generally get along. Our political system right now doesn’t normally reward you for getting things done with the other team and that worries the hell out of me. I don’t think the best politics or policy are made on the extremes. And candidly, both American political parties are so firmly caught in the 20th century that they wouldn’t understand most of the sessions that are going on here. </p>
<p id="Cl0gYp">I would like the political debate — and I talked about this earlier — the whole notion of work is changing. Nobody’s going to work for the same firm for 35 years. We had set up a social contract that was based on the notion that business, government and labor, you’re going to be a long-term, permanent, W-2 employee. We need a new social contract that would have portable benefits. We need to ...</p>
<p id="lr3vjB"><strong>Kara Swisher: You said the Democrats should be pushing</strong><strong> ...</strong></p>
<p id="PjzrY3">I think the Democrats, I’m not sure it would fall into either camp because it doesn’t have to all be run by government. I think we ought to recognize we’ve got a real failure to invest in human capital. Why do we treat investment in computers as an asset and human beings as a cost? When we did a tax reform, why didn’t we say we’ll give everyone here a lower tax rate, corporate rate to be competitive. We’ll put in place a meaningful training program for everybody that makes less than $80,000 a year.</p>
<p id="1rSpbG">If you don’t have that constant up-scaling, that notion that the old 20th century said it was the responsibility of the state to get you ready for that first job, then it became the private sector’s responsibility. That model is gone. Listen, I did really well. I am as much a beneficiary, first in my family to graduate from college. Failed miserably a couple times. I’ve kind of lived the American Dream. But I gotta tell you, modern American capitalism in its current form is not working for enough people. And there are I think capitalist ... There’s nothing that says the business cycle has to be only focused on short term-ism. </p>
<p id="L7cLjh">Tech companies that have all done well, that’s because the founders have kept the different class of stock that gives them the freedom to think long term, yet most of the business cycle, most folks are so committed on that two cents quarterly earning. Something is weird when the average hold on a public stock jumps from eight years to four months. That is not the capitalism that created America post World War II. So this ought to be the frame of where the debate’s at because that actually gives us a chance, because these don’t break down Democrat/Republican. They’re more future/past, and there’s real chance to put new coalitions together in the Senate or the House.</p>
<p id="C9Ympm"><strong>Kara Swisher: Absolutely.</strong></p>
<p id="qMSAb7"><strong>Peter Kafka: Now you’re more optimistic. One last one.</strong></p>
<p id="C2rbtY"><strong>Kara Swisher: Very quick one.</strong></p>
<p id="80rKnY"><strong>Speaker 3</strong><strong>: Yeah, Senator, you mentioned that we’re really acting in the 20th century as it relates to things like warfare with Russia and others and yet we’re not acting in the 21st century, but a great deal of what’s necessary would be the U.S. government itself applying the resources and budget associated to the cyber area. Do you think it’s sufficient right now? And if it isn’t, what are we doing about it?</strong></p>
<p id="J5Djkq">One, it’s not sufficient. Two, it’s gonna have to be done in collaboration with the private sector, the cloud providers. But here’s the ... I’ve not been all that successful in the Senate, especially my first term, because I spent a whole bunch of time worried about our balance sheet. We’re 20 trillion in debt. We just borrowed another two trillion dollars to provide a tax cut that was unpaid for. Here’s the American business plan right now, because of our spending on defense and entitlements and interest, of all the money you send to Washington, seven cents goes into education, infrastructure and R&D. As a venture capitalist, I would never invest in any enterprise that only spent seven cents on workforce, plant and equipment, and staying ahead of the competition. Yet that’s our American business plan because we’ve not told the public writ large the truth that we’ve got to make some choices.</p>
<p id="g8unXP">China is making the choices of investments in cyber, AI, 5G, quantum computing. They’re on a rate to pass us in three years. That to me is a national security concern as well as an economic concern, but you can’t continue to have politicians say I’m going to only cut your taxes when America’s already 32nd out of 35 in terms of the 35 OECD nations in terms of overall tax burden. We’re at the very bottom of that. And we’ve got to be honest on our entitlement programs. I think Social Security and Medicare are great. But the math doesn’t work any more for the future generation, just because we’re living longer. And a little bit of truth and frankly that’s where I would urge you guys from the tech community, you need to help the politicians not only on tech, but also a little more urging with a little more truthfulness.</p>
<p id="cU1kxU"><strong>Kara Swisher: Al</strong><strong>l </strong><strong>right, we have to stop. Can I ask you a question?</strong></p>
<p id="lzaUOf">Sure.</p>
<p id="HTLhiH"><strong>Kara Swisher: Are you running for President?</strong></p>
<p id="9rslem">No. I am ...</p>
<p id="hQ6Jua"><strong>Kara Swisher: Just curious. You sound like you might be.</strong></p>
<p id="3ljmVi">No, what I’m doing is trying to outline, one, trying to make sure we got our act together to make sure what happened in 2016 doesn’t happen again. Two, I do want to make sure that these ideas get into the debate and I don’t think the political divide right now with I’m not sure where Trump is taking the Republicans or a kind of only top-down redistribution plan that the Democrats may have, I’m not sure either one of those are where the economy’s at right now.</p>
<p id="OIZD0v"><strong>Peter Kafka: He said no.</strong></p>
<p id="OyyRTp"><strong>Kara Swisher: So, no? Yes?</strong></p>
<p id="xF5oFd">I’d say that’s a no. I’d say that’s a no.</p>
<p id="9oxaDY"><strong>Kara Swisher: Al</strong><strong>l </strong><strong>right. Thank you very much.</strong></p>
<p id="ZDP6Tk"><strong>Peter Kafka: Thank you, Senator.</strong></p>
<p id="NL7bDy">Thank you. Thanks, everybody.</p>
<aside id="HxLk3B"><div data-anthem-component="newsletter" data-anthem-component-data='{"slug":"recode_daily"}'></div></aside><p><small><em>This article originally appeared on Recode.net.</em></small></p>
https://www.vox.com/2018/5/30/17397134/senator-mark-warner-virginia-transcript-code-2018Recode Staff2018-06-11T17:20:03-04:002018-06-11T17:20:03-04:00Full video and transcript: Diversity in tech panel at Code 2018
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<img alt="left to right, Megan Smith, Sukhinder Singh Cassidy, Aileen Lee" src="https://cdn.vox-cdn.com/thumbor/w6mo9GoovZzTnqe6MEhMZhg0le8=/14x0:1151x853/1310x983/cdn.vox-cdn.com/uploads/chorus_image/image/60004503/REC_ASA_CODE18_20180530_171258_2652_preview.0.jpeg" />
<figcaption>Asa Mathat</figcaption>
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<p>“It’s not been a level playing field. I think we all now acknowledge that it has not been, so what are we going to do about it?”</p> <div id="jH219N"><iframe src="https://player.megaphone.fm/VMP9785445903" style="width: 100%; height: 200px; border: 0 none;" scrolling="no"></iframe></div>
<p id="G6RWJJ"><strong>Kara Swisher: All right. So we’re going to talk about an issue, obviously, that’s really important to me and to Recode and to all of us, it should be, which is not just #MeToo, but diversity, women, people of color, all having a more inclusive tech community which I think we can all say — I can say since I can say these things — Silicon Valley gets an F. It still gets an F on this stuff.</strong></p>
<p id="VJJreV"><strong>So let’s come out and have a discussion of how we can make that happen and make it better and not just complain about it, but things that we can do. </strong></p>
<p id="pOQl8j"><strong>We have Aileen Lee, who’s the founder and managing partner of Cowboy Ventures</strong><strong>;</strong><strong> Sukhinder Singh Cassidy, president of Step Up and founder of the Boardlist</strong><strong>;</strong><strong> and Megan Smith, who is CEO of Shift 7 and the third U.S. Chief Technology officer of the United States of America.</strong></p>
<p id="HgKZYf"><strong>So, I don’t know where to start. Let me start with you, Aileen. You and I did a podcast and one of the things you said on it that really struck me </strong><strong>— </strong><strong>and actually a lot of listeners</strong><strong> —</strong><strong> was the “good guy” thing. Can you talk about that? Let’s start talking about the problem itself. And each of you, I want you to think about what the problem itself is. And I really do want to talk about solutions, because we all know the numbers. They suck. Let’s start with that, because I thought that was fascinating from you.</strong></p>
<p id="4ObfYH"><strong>Aileen Lee</strong>: Okay. Hi. So I have a problem with the saying that a lot of people use, which is called, “He’s such a good guy” — and if you pay attention to it from now on, you’ll notice how often people say it — which is: You’re sitting around a board table. Let’s say if a company’s doing well they’re thinking about their next round of funding and we usually make a spreadsheet of who we’re going to call for the Series B or the Series C. And usually it’s a bunch of guys sitting around the table and I’m the only woman. And someone will be like, “Oh, what about Jeff Smith?” And someone else will be like, “Ah, he’s such a good guy. I love that guy.” And then someone else will say, “What about Ben Jones?” “I love that dude. What a good dude.” </p>
<p id="IGqE5X">Then I’ll say, “Well, you know, what about Sukhinder or Megan?” They’ll be like, “Oh, does she invest in security?” And the conversation and the questions you get because they don’t know her. “He’s such a good guy” has nothing to do with whether he should join the board, whether he’s going to add value to the company, whether he knows the right customers or the technology or their product or has the expertise. </p>
<p id="RmG8Pi">But that’s the qualification for how a lot of people get invited into investing in companies or getting hired into roles. And the questions that people ask around women candidates or people of color or people who are different or people who are unknown are completely different. So it bugs me. And I would like us to not use it anymore.</p>
<p id="bT87m5"><strong>Kara Swisher: Okay, nobody use it. That’s it. So let’s just define what you guys are doing to do this. Talk about your three things. Let me start, let’s start</strong><strong> with</strong><strong> Sukhinder, because theBoard</strong><strong>l</strong><strong>ist has been around the longest. </strong></p>
<p id="7C82tg"><strong>Sukhinder Singh Cassidy</strong>: Yeah, a couple of years. So theBoardlist is a talent marketplace to solve the problem of “there are no good women for my board.” </p>
<p id="kv4lwO"><strong>Kara Swisher: Right. </strong></p>
<p id="RjtMRw"><strong>Sukhinder Singh Cassidy</strong>: “Where are all the good women?” It’s a curated marketplace where CEOs and senior executives with board experience nominate great people for board service and companies come and search. </p>
<p id="V0wkwD"><strong>Kara Swisher: It’s a binder, binder, right, full of women?</strong></p>
<p id="FHrPry"><strong>Sukhinder Singh Cassidy</strong>: It’s more than a binder. It is a marketplace, in fact. But yeah, to answer your question, 2,500 women, 500 board seats, 150 placements. There are plenty of good women, right? </p>
<p id="86oacw"><strong>Kara Swisher: And the concept is that boards are the easiest, probably the low-hanging fruit in terms of getting and attracting … a different board.</strong></p>
<p id="tGrux2"><strong>Sukhinder Singh Cassidy</strong>: For sure, because boards are not only low-hanging fruit, they’re the white space for private companies. People think of board seats as high risk. I think of them as actually a great way to get introduced to talent, particularly in a private company where you can set the terms and figure out if somebody’s a great fit. </p>
<p id="kGRNUD">Pure white space. Easy to do. And the start of theBoardlist is, as I think we once talked about, was a number of tier one VCs coming in to see me, to ask me when I was a founder myself, “What should we do, Sukhinder, about the problem of women in the Valley?” </p>
<p id="H6lV3V">And I said, “You could solve 100 percent of the culture problems in the Valley today if you put a woman on every board of every Series B company and beyond. So let’s go.” </p>
<p id="dTwYqy"><strong>Kara Swisher: So, when you think about that, because it’s interesting, </strong><strong>be</strong><strong>cause boards ... One of the things that</strong><strong> —</strong><strong> I’ve said this a number of times</strong><strong> —</strong><strong> is when it comes to boards there’s plenty of tasks, there’s lots ... You can argue all you want about other jobs, but boards, there’s plenty of people to pick from. One of the stories I did many years ago was one on the Twitter board. I started off that, “Why are there </strong><strong>10</strong><strong> white men on this board?” Like I just want to understand that. You remember that piece?</strong></p>
<p id="KqscDo"><strong>Sukhinder Singh Cassidy</strong>: I remember.</p>
<p id="dsnHfG"><strong>Kara Swisher: I think it’s the single great</strong><strong> ...</strong><strong> I could have retired after this lede I did, which I thought was the best lede of all time. I was writing about this fact, like it’s mathematically impossible that this is how it ended up. And I said, “Here on the board of Twitter, which has three Peters and a Dick</strong><strong> </strong><strong>...” Come on, that’s Pulitzer material!</strong></p>
<p id="QTxlH3"><strong>Of course, Dick Costolo, and he’s like, “Well, Kara, I can’t believe you did that!” Dick did his whole neurotic thing. And he’s like, “I can’t believe you did that </strong><strong>—</strong><strong> but that was funny.” But it was the idea of standards, that “we don’t have standards.”</strong></p>
<p id="YdYwmH"><strong>Sukhinder Singh Cassidy</strong>: Yeah, “we don’t have standards” and we ,,,</p>
<p id="ufCOO1"><strong>Kara Swisher: We have standards, but it never is brought up when it comes to women. </strong></p>
<p id="dHwtH7"><strong>Sukhinder Singh Cassidy</strong>: Right, and we have standards but it doesn’t happen until the shit hits the fan. Right, we’ve all seen that in the boardroom recently in tech companies. “We will get to it, but …” It’s all the buts. My favorite “but” is, “I don’t know. I don’t know of any good women.” That’s my favorite “but.”</p>
<p id="N83LfY"><strong>Kara Swisher: Explain what you’re doing. </strong></p>
<p id="vS8l8X"><strong>Aileen Lee</strong>: At All Raise?</p>
<p id="zdoToE"><strong>Kara Swisher: Yes, at All</strong><strong> </strong><strong>Raise.</strong></p>
<p id="0Pjr7s"><strong>Aileen Lee</strong>: All Raise is a new nonprofit for the tech industry that was started last fall. Hopefully, everyone here, if you’re interested, can become a member. We’re going to be rolling out membership. It’s exciting. We were talking about not complaining, and obviously there’s lots to complain about, but what’s exciting about All Raise and theBoardlist and a lot of things that Megan’s been doing is this is about people in an industry, who understand an industry. In our case, it’s basically the most senior women in venture capital and tech venture capital in America getting together and saying, “We’ve got a problem in our industry. What can we do to fix it?”</p>
<p id="gfd98U">The data is terrible. We’ve heard lots of personal stories about people of color and women and people who are different having bad experiences. It’s not been a level playing field. I think we all now acknowledge that it has not been, so what are we going to do about it?</p>
<p id="0dcIzg">So a bunch of women, probably almost a third of the senior women in the industry, because the industry’s really small, got together for dinner around a dinner table. And we talked about what are the problems that we can fix in our industry? And we came up with two specific goals that we thought would move the needle the most. One is doubling the number of senior women partners in the venture industry and doubling the number of women that get venture funding that are co-founders of venture-backed companies. And if we can move the needle on those two things, we can change our industry.</p>
<p id="LNC9X9">But rather than just throwing down those goals we actually then brainstormed: Okay, what are the programs that we are going to put next to them? What are the products that we can build? And let’s just start shipping stuff and trying stuff. So we started a thing called Female Founder Office Hours that has done super well, and we’re expanding it by state and by city. Then we launched something called Founders for Change, which is around founders galvanizing around ... trying to work with modern funders and to basically modernize their cap tables and make their cap tables and their teams more diverse. </p>
<p id="2DBVff">And we’ve been trying a bunch of different things. I think it’s pretty unique, where it’s not about like playing gotcha or penalizing people for the past. It’s about moving forward together and teaming up and trying to change an industry from within. </p>
<p id="8nLXG2"><strong>Kara Swisher: And you’re raising.</strong></p>
<p id="oPJNGC"><strong>Aileen Lee</strong>: Yes, we are open for business, if you want to contribute to allraise.org.</p>
<p id="WZuwdE"><strong>Kara Swisher: For what</strong><strong>? F</strong><strong>or doing these different programs?</strong></p>
<p id="yfpjC4"><strong>Aileen Lee</strong>: Yeah. It’s a nonprofit. We’re hiring staff and we’re working on scaling so that we can leverage lots of volunteers, support programs and basically try and ship a bunch of different products that will try and address lots of different members and touch points in the industry.</p>
<p id="urSALY"><strong>Kara Swisher: And Megan, you’re doing stuff around the country, trying to find talent. So, explain what you’re doing. You’re also involved with Times Up, correct?</strong></p>
<p id="XNJ981"><strong>Megan Smith</strong>: Mm-hmm.</p>
<p id="C1ALXQ"><strong>Kara Swisher: And trying to bring tech into it?</strong></p>
<p id="DfI8j2"><strong>Megan Smith</strong>: Yeah, so, just overall to frame this issue, I think this is <em>the</em> moonshot. I mean, if you could actually field the whole team, of the whole country on things that they wanted to work on. Can you imagine, with these amazing tools and tech that we have? </p>
<p id="ceRGQC">I’ve been working on a lot of different things. We’ve worked at Google for a long time on this, and earlier. There’s hundreds of thousands of jobs open in the United States and it’s gonna get more. It’s gonna get bigger and bigger. One of the things we are doing, Leanne Pittsford, who created Lesbians Who Tech, created a tech jobs tour. I just joined up with her. We went to 25 different places across Appalachia and Milwaukee and Birmingham and Memphis. There’s 45,000 young people out of school and out of work in Memphis. And there’s open jobs. So, why aren’t we bridging this talent? </p>
<p id="StcNer">So we found that it’s not really about conferences and talking about it. How about just hustle? So we would just go in and run a career fair in the evening and find the techies in town, because they’re always there. I remember President Obama was going to Boise, Idaho, and there were 15 tech meetups in Boise. One of them had almost 800 people in it. So there’s lots of techies everywhere, they’re just invisible to their neighbors if we’re outside of Silicon Valley.</p>
<p id="WlQoFQ">So how can you get people meeting each other? So we started to do that, speed mentoring that, and then you find people who are diving deeper. As a specific example, there’s a guy named Nick up in Idaho and he’s a boomerang, which is one of us from one of these centers who’s gone home. He’s from Coeur d’Alene and he wanted to be home. So he’s opened an incredible space. ADK bought basically a warehouse downtown, turned it into the coolest tech center. They’ve got amazing startups. They’ve got coffee, they’ve got all that. </p>
<p id="GM92nZ">And then he’s like, “How do I get the rest of my neighbors in this state in?” And he actually organized teams, five different teams to go across the state to 20 different locations and run, “Try out this coding thing.” They ran 57 events in three days. I went to the Indian reservation in Plummer, where there’s 1,000 people living and 40 people showed up. We had iPads and Spheros. People were there, whether it was this forestry guy who wanted to digitize stuff for his business or whether it’s grandma and grandpa and the grandkids. </p>
<p id="GlA5V3">And after this event, 700 people in Idaho signed up to learn how to code together. Apple came and we were doing Swift. And so now there’s book clubs in Idaho. Of those 700 people 32 percent of them make less than 20K. Half of them are women. And Apple is showing up by video to mentor them. </p>
<p id="XvDmZW">So there’s sort of this hustle way and it’s happening all over the country, in the Mississippi Delta, across the board. We were in Appalachia, in Pikeville, a tiny town. We’re driving by the Coca Cola bottling facility and we’re thinking, “Oh, that’s cool.” And then we’re like, “Oh my God, of course the tech company’s in the cool building.” They had founded a company called Bit Sources. This is coal miner entrepreneurs who had made many companies in the coal sector, who have transformed to bit source, drill bit source code company. 800 people applied for those 12 jobs, and their first job was learning to code. Now they’re reshoring jobs to America in Pikeville. And also, I love their culture. They’re Silicon Holler. They don’t have Silicon Valley —</p>
<p id="XUn8ch"><strong>Kara Swisher: I gotta say, I wish they would stop all that stuff, but okay.</strong></p>
<p id="jaZ8ss"><strong>Megan Smith</strong>: Yeah, but I love that the point of it is just to, that it’s this kind Appalachia cover together with now tech, advanced tech. Great stuff. They had the fabulous ads diagrams that we know from Google all over the wall and also celebrated their own history.</p>
<p id="sq9zoc"><strong>Kara Swisher: What do you think the problem is? First, let’s talk about what the problem is in Silicon Valley. Let’s identify it from your perspective right now. Look, nobody could ignore all the #MeToo stuff and all the stories. And I think Uber, for a company brought in to </strong><strong>—</strong><strong> I’m going to talk to Dara later about that</strong><strong> —</strong><strong> for</strong><strong>,</strong><strong> “Oh my God! This is the worst place on Earth” kind of thing. And Susan’s memo really did, but it’d been around. We had the Kleiner Perkins before, we’d had lots of things. And you were at Kleiner Perkins also. I want you each to identify the problem from your perspective, because it has to really start in Silicon Valley or within the tech industry. </strong></p>
<p id="KCFFyi"><strong>Aileen Lee</strong>: The problem, one problem? </p>
<p id="yYJ3g4"><strong>Kara Swisher: Well, pick one.</strong></p>
<p id="5Y37aN"><strong>Aileen Lee</strong>: There’s so many. Venture capital has been, for decades, a private industry of small firms run by white males. And they’ve hired white males and they’ve funded white males. And it’s the “good guy” problem, right? And you look at the data and people say, “Where are the women?” Well, the women have not had a shot from the beginning.</p>
<p id="ZFjdGQ">If you look at the money that goes into startups, all-female teams get 2 percent of venture dollars. Founding teams that have any female on them at all on them get 10 percent of the dollars. So it’s 90 percent of the dollars are going to all-male teams. There’s bias. Any of you who is a hiring manager or runs a company, you know in all your business processes there are biases. So we need to systematically map out our industry and our business processes and try and take the biases out of them, because you can’t look at the end result and be like, “Oh, it’s their fault.” People have not been given a shot and we need to re-engineer our business. But that’s what happened, at least in the venture world, is that good guys have hired and funded good guys. </p>
<p id="srx2iG"><strong>Kara Swisher: And so, other problems?</strong></p>
<p id="w3pQGV"><strong>Aileen Lee</strong>: Also, to be honest, sexism as well. The layer below “good guy” is not getting looked in the eye when a woman is pitching a male venture capitalist. He’s looking somewhere else; it’s not okay.</p>
<p id="6ZhqQ0"><strong>Megan Smith</strong>: There’s really interesting data out of some researchers in New York. It’s showing, it’s from TechCrunch, and they took all the videos of the pitch competitions at TechCrunch, and they looked at the questions that get asked to different people. They found that the questions that go to women are usually decelerating, you know, “How’re you gonna hold on to your market?” Then the questions asked to men, by far, were like, “How big is this?” You know, they were accelerating questions. And people were raising far different amounts of money because of this. They found that the good news, in terms of solution making, is that this is happening, our culture is doing this, none of us created this, we inherit it but we’re doing it; so we gotta stop. </p>
<p id="hvkWOS">Good news is that they also found in the data, for the women who could catch the negative question and say things like ... and turn it around, answer it but turn it around. For example, “Actually the market share is growing so even if we’re holding a slice of the pie, we’re still gonna be larger. Here’s how it’s bigger,” whatever, however they do that, that can happen. We have to train people for that. But it’s incredibly depressing, you look at the data, the reality, the truth of this and you know, we use media ... One of the things we’re doing in Time’s Up is actually — and a lot of this work is people are starting to use actual software to help ourselves. So the Kapor Center has been pitched competitions around HR Tech, people ops tech, we do have mitigated bias. We can run, let’s say that we have a job req going up, we can run it through some tools to help us broaden it so more people apply and it’s less sexist and racist in its biased way. In Time’s Up, we’re using AI and machine learning and natural language processing on what we’re putting on screen. </p>
<p id="HqX3V8">Today it’s 15 to 1 boy programmers to girl programmers in children’s TV; that’s worse than the industry. So every time our children are watching TV, they learn boys do this and girls don’t. That’s just not true, but it’s the bias of the Hollywood person who didn’t mean to animate or do that. How can we give tools as you’re making this media that you can see who’s not talking, who’s more central, really cool stuff that’s coming out of USC, working with Geena Davis and others. That’s part of sort of the screen team in Time’s Up.</p>
<p id="KHQiqH"><strong>Sukhinder Singh Cassidy</strong>: Right, on a more pragmatic level, we’ve talked a lot about systematic bias, and I’m with you. But at a more pragmatic level, I think that we are in an industry that has valued speed above everything else, right? The reality is to fix these things, to create a better pipeline, to fix your board, these things require intentionality, slowing down and actually taking your time. And so, at the more pragmatic level, we may all not be able to change our biases but then it takes intentionality and to set aside the time to do the basics. I mean, it is the basics, right? The basics on building a pipeline. The basics before you go out and hire a great white male for that direct report job you have as the CEO of a company, why don’t you just stop for a moment and look at the level below and figure out if there’s a woman you can groom for that job? That takes intentionality. So I feel like systematic bias is like, it’s daunting. You’re like, “Wow, how do we all fix our biases?” but like one below that is the pragmatism of like, “Okay, guys,” it takes intentionality and time.</p>
<p id="Ze1i8b"><strong>Megan Smith</strong>: We published a thing in the White House, I encourage everybody to look at, which is called “Raise the Floor,” because we’d walk in the room and people’d be like, “God, I don’t know what to do about this.” We know a lot, we don’t know how to totally fix it but we have a lot of practices in the area of leadership, what leaders can do, in the area of our culture. You know, Susan Wojcicki’s always talking about, “What are we doing for the people who are here right now? What practices can we do?” Like an example, there would be feedback, making sure everybody’s getting feedback, not just the person who gets invited to lunch. What can we do in our pipelines and what can we do in our ecosystem, including children. And stopping ourselves from saying, “Hey, we gotta work on diversity, what are we doing for the kids?” </p>
<p id="1VRSZw">Yes, computer science for all, that works, let’s go. Wyoming just passed that. Chicago, you can’t graduate from school without having coding, so that will bring us a lot of equity, but they’re not coming right away. So let’s do that <em>and</em> what are we doing for the people who’re right here? Why, like Evan was saying yesterday, why is this not on the management team meeting every single week as a standing item and how are we not crowd-sourcing from our employee resources group better?</p>
<p id="19DkMV"><strong>Kara Swisher: So all of you’ve worked in the industry, it does seem daunting. Daunting is an excellent word for it because it doesn’t ... I’ve been around for a long time, it seems to be the same thing ... Was the Uber thing a moment? Like you had Harvey Weinstein as a moment, there’s all kinds of things, you know, that’s an appalling story. We’ve had versions of that, not quite that level of a horror show that was perpetrating but awful stories. Where do you imagine that ... do you imagine this is that moment or not? Because I thought it would be with Kleiner, I thought it would be a lot of stuff.</strong></p>
<p id="XAgWei"><strong>Aileen Lee</strong>: You did, we thought that was it, Kleiner?</p>
<p id="yCAhGd"><strong>Kara Swisher: Yeah, I did, I know. But where did you, is the Uber thing ... </strong></p>
<p id="aXgCVI"><strong>Aileen Lee</strong>: I think Kleiner ... Ellen Pao was very brave to stand up to Kleiner and that was a start. Susan Fowler’s memo was a start. I think Binary Capital — I mean Justin Caldbeck — and there are a lot of women who we know who were impacted by those many years of bad experiences.</p>
<p id="86Hntm"><strong>Sukhinder Singh Cassidy</strong>: Yeah, so did it take an apple cart? Absolutely.</p>
<p id="yXCp9r"><strong>Aileen Lee</strong>: There’ve been many, you know, Better Up, gamergate ... or sorry, BetterWorks, sorry, not Better Up. You know, there have been many, SoFi. Last year, it was like every month there was a new story where you could no longer ignore it. </p>
<p id="dhCEOX"><strong>Kara Swisher: What do you imagine the impact </strong><strong>is</strong><strong>? Because sometimes it feels like the story’s gone and then you get ... it goes like this.</strong></p>
<p id="A5M3i4"><strong>Aileen Lee</strong>: I think ... we have a lot of work to do but I’m pretty optimistic because I also think like, you know how researchers of demographics say that Gen Z and millennials have different values than baby boomers? The way that younger consumers think about brands is different than how people who are baby boomers think about brands. Younger people care about like, “Where was this made? Is it organic? Did they treat their employees fairly?” They have different values, they care about brands in a much more holistic way, in a 360 way, than I think prior generations have. I think, actually, the impression that people have of Silicon Valley of kind of like the hoodie-wearing bro who only hires his bro friends and cruises around San Francisco in a pack kind of like assessing women is a stereotype that actually is really the minority now in Silicon Valley and San Francisco. </p>
<p id="KNw2w6">I think one of the benefits of all the shitty things that we learned about last year is that a lot of founders read those stories and they were like, “I do not want to be that guy,” or, “I don’t want to build that team,” or, “I don’t want to lead that kind of a company.” They sit with their staff and they sit with their board and they say like, “Okay, let’s never be this. How do we change things up? How do we build a great culture? How do we ...?” </p>
<p id="MDZgUF">I’ve sat on boards where a CEO, without prompting, will say, “Hey, we’re 15 people now and we’re all guys. We’re at risk of building a company that none of us wants to work at. How can you help us change who we hire next and make sure that we build the kind of company that would make us proud?” That’s the conversation that is happening in so many boardrooms right now and in so many companies. The customer has changed and so, I think, actually, the firms will change too because this is ... </p>
<p id="bDmWi7">One of things we talk about at All Raise is this is about motivation by greed as much as — more than fear in a lot of ways. People don’t want to lose business, they don’t want to lose customers, they don’t want to lose talent, and they will lose all those things if they actually don’t build a great culture and a team that looks like a modern company and a modern team.</p>
<p id="JprUAD"><strong>Kara Swisher: So greed rather than fear?</strong></p>
<p id="uln4B7"><strong>Aileen Lee</strong>: Yeah.</p>
<p id="ETxfed"><strong>Sukhinder Singh Cassidy:</strong> Fear is excellent.</p>
<p id="d8U2GY"><strong>Sukhinder Singh Cassidy</strong>: I think fear has worked as well; but it’s both. I would say, last year, the reason I think it’s a tipping point that we’re not coming back from is because, as you know, this is a small world, we all live in it, we can all walk out the halls and know three-quarters of the people in this room. Reputational loss, even more than financial loss, is a driver for behavior. I think actually loss ,and loss of reputation, I think those were the drivers and the catalyst. I think there’s greed on the one hand, like I want all the available talent and I don’t ... I think there is absolutely fear of repercussion because, for the first time, there were repercussions.</p>
<p id="7iuST9"><strong>Kara Swisher: Because there are repercussions. </strong></p>
<p id="zC7bY8"><strong>Sukhinder Singh Cassidy</strong>: Absolutely.</p>
<p id="o2GEo7"><strong>Kara Swisher: I was dealing with someone at Uber and we were writing that India rape story, for example, which I was so ... I couldn’t believe when we uncovered that. Someone said casually, “When are you gonna stop?” And I said, “When you stay down and that’s when I’m ... when you can stay on the ground, like don’t get up again because I’ll hit you again” kinda thing</strong><strong>. A</strong><strong>nd it worked. They’re like, “Oh,” and I’m like, “No, really, I’m gonna hit you again, get up, go ahead.” It was really an interesting thing but what it was is ... what I felt like had happened is that it was more like, “Are you gonna keep at this? Are you gonna keep at this?” </strong></p>
<p id="nqzHft"><strong>So how do you sustain that and the idea? Because you’re not a rage</strong><strong>r,</strong><strong> but</strong><strong> </strong><strong>anger, I think, is a very effective thing. I think staying angry is an excellent way to create change. Really for the future, it doesn’t motivate the group o</strong><strong>f</strong><strong> people you want to motivate. At the same time, feeling like you have to pet these people</strong><strong>,</strong><strong> like, “Good job for not grabbing that woman’s ass, nice work,” is really irritating. </strong></p>
<p id="WvuIRm"><strong>Megan Smith</strong>: I think there’s two things. One is I think it was shocking for everybody in a bunch of ways last year as this came out. One dimension was that all the women, we all know that this is true and this has happened to all of us at varying degrees. I think for a lot of men, some men are doing this and a lot of men were surprised and didn’t realize how widespread this is and how extreme this is and how oppressive it is. I think that that was a reckoning moment for us. </p>
<p id="orwofD">Now, I have to tell you, I was talking to my sister-in-law who worked with [Richard] Stallman at the beginning of Open Source. You know, in her work, in Boston, the beginning of this industry she had to sit at her bench, she’s an exceptionally talented electrical engineer, computer scientist, and had to have a Hustler magazine centerfold [on a wall in front of her], for two years, until she could get rid of it. If she took the elevator, people would attack her in the elevator. That was just the behavior of those people and no one was checking it. </p>
<p id="LZXHha">So we’ve come somewhere, although I would admit that it’s pretty amazing to think of Grace Hopper and Ada Lovelace and all the inventors. You know, Ada’s the inventor of the Darwin, you know, of us. She wrote a 55-page paper in the 1840s about computer science that she couldn’t even write. She had to attach it as notes and write “AAL,” like J.K. Rowling, to hide that she was a woman. But really, if you read it, it’s the definitive paper that Turing references. And so, we don’t know our history. We don’t know that women and men have gone to do this. Turing, of course, made the Turing machine. He goes to do the Manchester Baby, which is their first computer, ours is ENIAC and UNIVAC, and who works in his company but Berners-Lee’s mom? Tim Berners-Lee’s mom is the computer scientist there and she teaches her son, he makes the web.</p>
<p id="QjNMuA">So women and men have ping-ponged along in this, but we have to know that history because it drives the future. I’m hopeful about a lot of things. The thing that I’m personally focused on is not only raising our consciousness about caring about this and getting it into the boardrooms and into the leadership rooms and the real tools that we have and understanding the costs it has for our society. I think sometimes from government, when we were in there, we were applying all this cool stuff to NASA and Department of Energy but like, why weren’t we in Justice and in HUD and in Ed? Why weren’t we over there? We started to do that work but, you know, tech is for anything. Why should the Hogwarts tools be just for Steve Bannon and the Dark Arts, right? Then, for this and not for everything else?</p>
<p id="1VmxsN"><strong>Kara Swisher: So you didn’t stay in the Trump Administration as CTO?</strong></p>
<p id="Px7Nho"><strong>Megan Smith</strong>: I didn’t get invited to! But I would like a CTO to be there someday, it’s really important. Just a fast thing about what Mark talked about this morning that’s fabulous, it’s not gonna take a lot more money to solve this, we have all the money in the world. The tech teams are not in government at the senior elite levels, of course not in NASA and AH, but I mean in the key places in Congress and so, taking a tour of duty is really important. Applying these things, these incredible tools to justice and poverty and these other areas and helping those teammates — who are extraordinary — [solve] harder problems. It’s harder to solve poverty than drive a car down the street by itself. So teaming up and these Navy SEALs teams with us included will actually go a long way. I call it “techifying,” everything else will diversify tech.</p>
<p id="pHS99f"><strong>Kara Swisher: Let’s finish up talking about solutions and then we’ll get questions from the audience. If you all had to change one thing, because I think you’re absolutely right when you’re talking about men ... a lot of good men not realizing it. I think every woman I know has 10 stories of different micro-aggressions to very serious stuff. Not everyone’s down on the serious end but everybody has one. </strong></p>
<p id="g5eFR3"><strong>Sukhinder Singh Cassidy</strong>: Everybody has a story.</p>
<p id="JiN7qZ"><strong>Kara Swisher: And most of the men I know didn’t know about it, like, “Oh I didn’t …” If I heard, “I’m so surprised,” one more time — it was shocking. It was sort of, it was also, </strong><strong>“Y</strong><strong>ou’re an idiot if you’re not paying </strong><strong>[attention],”</strong><strong> but then I thought, “Why aren’t the women saying it?” </strong></p>
<p id="UQsNLe"><strong>Talk about one, each of you, one solution. So, you’re doing All Raise training and bringing people</strong><strong> ...</strong></p>
<p id="7Z9K0N"><strong>Aileen Lee</strong>: Helping women feel more supported.</p>
<p id="k2LLCo"><strong>Kara Swisher: What can people here</strong><strong> ...</strong></p>
<p id="CTSnb0"><strong>Aileen Lee</strong>: Go to allraise.org, and we’re just getting started, we’re an early-stage startup, but yeah, it’s an opportunity for professional development for women, for mentorship, for ...</p>
<p id="Tvv5WS"><strong>Kara Swisher: And this is just women, not people of color, right? </strong><strong>Bec</strong><strong>ause that’s a whole other</strong><strong> ...</strong></p>
<p id="NILUP6"><strong>Aileen Lee</strong>: We’re starting with women, and I think we’ll have lots of stuff. I think it’s gonna be hopefully a very big tent where, regardless of who you are, if you’re on the mission and you wanna make a difference, you can become a part of All Raise. </p>
<p id="mNcnMk"><strong>Sukhinder Singh Cassidy</strong>: So I’m beyond stating the obvious, which is get yourself some great women for your board. I may go to the next level, which is I think one of the solutions for every leader in this room is figure out how you’re gonna make the next five women in your organization CEOs. You wanna change the founders. You wanna change this game, we need to take the talented and smart women who are sitting in all of your organizations and you need to make it your personal mission, and people of color ...</p>
<p id="gmCzo9"><strong>Kara Swisher: It’s not just sex. The training part. I’ve known so many people who get in there and then they move nowhere</strong><strong>.</strong></p>
<p id="oauxMm"><strong>Sukhinder Singh Cassidy</strong>: Yes, but you know it’s interesting, right? Just a side note. Everybody thinks women need training and people of color need training. I will say Silicon Valley once again is for all of us who got opportunities that none of us were qualified for. So this whole idea that you need to train women leaders and you don’t need to train men leaders is ridiculous. Let me just say that. Go find the talented women in your organization and talented people of color and make it your personal mission to take those high-potential leaders and get them into the CEO seat or the founder seat. And that’s how you will change this game. Get them into power. </p>
<p id="MuiCxG"><strong>Megan Smith</strong>: Yes, so the thing that I think about is about leadership here, and one of the big challenges is that this isn’t prioritized by leaders, even ... Of course we all care about this, but we’re not caring like the way we’re shipping the product. And so we just have to move the priority up, put it on the agenda, understand the basics, like again, raise the floor, what can you do. And also remember that incredible diversity leader you have in your HR department or whatever, they’re the coach, they’re not supposed to do all the work. It’d be like being in the NBA and the coach was trying to play all the games. You have to have everyone on your team doing this at all levels because this is a team sport, to include each other, and it’s uncomfortable, and get ready for that. And you’re gonna learn a lot. And can you imagine how incredible we can be when we do this? And the problems we will solve? And if you start thinking about market failures everywhere across all topics, and what you could address ... </p>
<p id="EQW1WO">And making sure that as you do this work you remember that we’re all complying to a style compliance of the rules. Open it up, let’s have fun at work. Who thought of the dumb idea “don’t cry at work?” Let’s get rid of all this stuff and let’s be ourselves, let’s have fun and let’s solve the most extraordinary problems. We got climate change coming at us, we got AI, we got algorithm bias, we’re gonna scale all this stuff, and we have extraordinary people. So the real moonshot is, how do we unlock the talent of our seven billion colleagues on the planet and bring it? And what we could be as humanity and where we can go on and off this planet? </p>
<p id="uSHId9"><strong>Kara Swisher: Well</strong><strong>,</strong><strong> that’s a good way. Questions from the audience? I want men to ask questions</strong><strong>,</strong><strong> please. Up</strong><strong>,</strong><strong> men</strong><strong>,</strong><strong> or I will find you. I operate with fear. I know a lot more about you than you think. So please rise. I do not want only women up there. Kate, go ahead.</strong></p>
<p id="vUSzTG"><strong>Kate</strong><strong>: Yes. So earlier you were interviewing Brian Chesky of Airbnb, and when someone from the audience asked him if he was looking to hire a woman on his board, he kind of grudgingly said, “Yes, we’re looking to hire two women for diversity’s sake.” And to me this sounded pretty ingenuine and problematic, because he was looking at ... It seemed like he was looking at hiring woman like some sort of checklist he needed to fill out for diversity’s sake. And I was wondering if you find this problematic, and if so, how do we change this mode of thinking?</strong></p>
<p id="X3BeRS"><strong>Kara Swisher: Just to be ... That’s my niece</strong><strong>,</strong><strong> by the way, Kate.</strong></p>
<p id="cTDSBg"><strong>Megan Smith</strong>: And she’s playing out your point because she’s a centennial. So she’s demanding this. </p>
<p id="VZeBTv"><strong>Kara Swisher: Let me just be clear, I text him almost daily, </strong><strong>“W</strong><strong>here are the women on your board</strong><strong>?”</strong><strong> </strong><strong>S</strong><strong>o I may be part of that problem. Go ahead.</strong></p>
<p id="F0BMw9"><strong>Sukhinder Singh Cassidy</strong>: Look, I think there is some level of, “I need a woman on my board because everybody says I need a woman on my board.” The converse of that is, look, if pressure right now in the ecosystem is what’s making you think about diversity, I will take that over zero progress. And I think the most important thing we can do for Brian Chesky and everybody else is help them find the most talented people for his board of which they may be women, and don’t stop at one, get to two or three. And then let’s go talk about the effects on his board, because I think, I’d love for it to not be a checklist but I will take a checklist and peer pressure over no progress. Sadly.</p>
<p id="BZ38fd"><strong>Orchid Bertelsen</strong><strong>: Hi, my name is Orchid Bertelsen, thank you so much for having this panel. You guys are all badass. So my question is really around what Megan was saying about doing your tour of duty, bringing tech to solve problems in justice and poverty. I live in San Francisco, it’s no secret that homelessness is a huge problem there. You also see a lot of innovation and focus on creating apps or products for high net worth individuals to sell more products and make their lives easier. What kinds of incentives should be in place so that the people who have the skills and who want to do good in the world can be incentivized to create and focus their energy on solving complex problems like poverty, but that don’t make them a lot of money?</strong></p>
<p id="NbeG2P"><strong>Megan Smith</strong>: I’m in the National Academy of Engineering, which President Lincoln started, and it was amazing to me to look at their agenda because it’s this same thing, this lopsided, the treasure, the agenda and the voice who gets to speak is on certain problems which are important, so self-driving cars, precision medicine, ad tech, there’s stuff that’s good to work on, <em>and</em> there’s these other things. I think one of the greatest things we learned with President Obama than as with others is that they’re extraordinary colleagues using other tools. I call it play the whole orchestra, so, “You’re using this part and we’re using this part.” We gotta get all this stuff mixed up. One of the greatest things you can do is not throw something at them, but get inside their team. </p>
<p id="hImmB5">So how do you put technical people — I call it TQ, like tech IQ or tech quotient — TQ people at the table? When we work in these nonprofit government places, in tech the engineers rule. And then somewhere down here are the policy and comms people. That’s our stackrank. I don’t agree with it, but it’s what we do. But when you go to government, the policy and comms people are in charge and they’re very ... surgeon generals and scientists and others, but tech people aren’t even in the room. And so we get things like healthcare.gov because these people are doing the right thing on policy and those choices but their architecture is wrong. So I think it is who is missing from this team, not what to do. And add the people into those rooms. Use your philanthropy dollars to get technical expert people and help them hire them in these other sectors.</p>
<p id="fNsRJL"><strong>Kara Swisher: But at some point they’re just not going to have to make as much money. I was talking to someone who was thinking about this, who is so ridiculously obscenely wealthy, “I don’t know if I should do this.” And I was like, “</strong><strong>Y</strong><strong>ou’re so poor</strong><strong>,</strong><strong> all you have is money.” I think they did it. </strong></p>
<p id="aOCyR8"><strong>Martha Josephson</strong><strong>: Hi, I’m not a man, but this is a guy-like question. Here’s the thing — oh, I’m Martha Jospehson. Here’s the thing: I wanna be one of Aileen’s good guys. I want that opportunity. I wonder if we should try to be that or if it perpetually sends the wrong message. </strong></p>
<p id="evjJj2"><strong>Aileen Lee</strong>: Like, “Oh Martha, she’s such a great gal.” I feel like I would rather someone say, “Martha’s so smart.” Or “Martha’s great for this job,” or, “She would add value.” Katrina [Lake] was saying, it’s not about culture fit, it’s about culture add. It’s like, “She would add a lot to our conversation.” Let’s not dumb down the answer to fit the low level that we live at today, let’s elevate the conversation. </p>
<p id="rUTyxc"><strong>Megan Smith</strong>: And let’s help each other do it.</p>
<p id="ZaPdc2"><strong>Aileen Lee</strong>: Yeah.</p>
<p id="tm6d4H"><strong>Karla Monterroso</strong><strong>: Hi, I’m Karla Monterroso, I’m the CEO of Code 2040. </strong></p>
<p id="k1BLPK"><strong>Sukhinder Singh Cassidy</strong>: Does everyone in this room know Code 2040? The 2040 majority and minority in America?</p>
<p id="BZxoZ5"><strong>Karla Monterroso</strong><strong>: So when I talk to the other racial and diversity CEOs we are all sensing the slowdown from companies and their commitment to purchase the products or invest in the things that need to be invested in, in order to make these initiatives, like, </strong><em><strong>real</strong></em><strong> initiatives. And I’m curious if you also sense that, and how do you discern that shift and how do incentivize it to be different in particular in a moment when we no longer have an administration that is moving social capital to incentivize this. </strong></p>
<p id="7dkA01"><strong>Kara Swisher</strong><strong>: Okay, short answers, we have to wrap up.</strong></p>
<p id="F2FUDf"><strong>Sukhinder Singh Cassidy</strong>: Interestingly, in my business I’m actually seeing an acceleration, rather than a deceleration. But I would say the long-term answer to this is to appeal to greed, not loss. Which means we need more Katrina Lakes, we need more women at the top, we need more women on boards in order to keep this an incentive. We need a pull; a push is not enough. That’s kind of my macro thesis. </p>
<p id="4qlynF"><strong>Megan Smith</strong>: I think you always have to look for stuff that’s working, instead of, “Oh my God, this is exhausting, these are hard problems,” but there’s stuff that works, like you guys and others, so find them and just help them. That’s the best path. That’s how we scout for the seed round. Go find it. </p>
<p id="u2FvXU"><strong>Kara Swisher: Mossberg</strong><strong>,</strong><strong> if you could be short, I have one more question. </strong></p>
<p id="65mArs"><strong>Karla Monterroso</strong><strong>: I had one more a question but I’m going to defer to Walt.</strong></p>
<p id="663RQV"><strong>Kara Swisher: Defer to Walt, but very quick, Walt, </strong><strong>be</strong><strong>cause I’m getting mean messages from Peter. </strong></p>
<p id="pCwcST"><strong>Walt Mossberg</strong><strong>: Well, that’s bad. I’ve been there. I want to ask about a sort of collateral damage thing that’s happened as the #MeToo stuff has come out, which is that men who still have most of the power and most of the institutional knowledge in many companies have become afraid to mentor women.</strong></p>
<p id="LSxZIr"><strong>Kara Swisher: Backlash.</strong></p>
<p id="XtiP8u"><strong>Walt Mossberg</strong><strong>: Huh?</strong></p>
<p id="WSnG47"><strong>Kara Swisher: The backlash.</strong></p>
<p id="7J7H0r"><strong>Walt Mossberg</strong><strong>: The backlash, in other words. And some HR departments, according to what I read at least, are advising men, don’t take a woman to lunch alone, don’t close your office door and talk to a woman that you want to mentor. I think this is a terrible thing, at least until we get — how do we get to balance? It’s part of transferring this knowledge, men sponsoring women. Not because they’re men, but because they have the power. How do we fix that?</strong></p>
<p id="vvaADA"><strong>Kara Swisher: Al</strong><strong>l </strong><strong>right, very short answers. Sorry</strong><strong>,</strong><strong> guys.</strong></p>
<p id="vH1fkN"><strong>Aileen Lee</strong>: I agree. I think it’s a terrible thing. I think men should not be afraid. And we talked to the four of ... I think we did ourselves a disservice by shielding men from the conversations and the stories and the experiences that a lot of women and people who are othered in organizations have. Like, ask a colleague who is a minority in your organization, “Can we talk about your experiences?” And be open, have those conversations and take risks to get to know someone who you don’t know. We’re definitely not going to solve this problem by men saying they’re afraid to meet with women.</p>
<p id="Oo2B9x"><strong>Megan Smith</strong>: I think you can also get creative, like take two people to lunch. If you feel nervous, take two people or three people. Go in a group, find others. I think you can do that. The other thing that’s really important for all of us in general is remember that the people who are the most left out are the women of color, and so making sure that ... it’s 50/50 men and women on the planet. In our country its 40 percent people of color, it’s five to 10 percent gender nonconforming, LGBTQ people, and from Time’s Up perspective, we’re always working on those kinds of numbers to have everywhere and so as you’re going to mentor, go find that group. </p>
<p id="rgMy2y"><strong>Kara Swisher: And no Mike Pence-ing </strong><strong>i</strong><strong>t</strong><strong>,</strong><strong> any of you. Got it? Anyway, thank you so much</strong><strong>,</strong><strong> you guys. Sorry we have to go, we have a lot more questions, I apologize.</strong></p>
<aside id="y2k9xW"><div data-anthem-component="newsletter" data-anthem-component-data='{"slug":"recode_daily"}'></div></aside><p><small><em>This article originally appeared on Recode.net.</em></small></p>
https://www.vox.com/2018/6/9/17397178/full-transcript-diversity-women-tech-megan-smith-sukhinder-singh-cassidy-aileen-lee-panel-code-2018Recode Staff2018-06-10T19:01:17-04:002018-06-10T19:01:17-04:00Watch all of Recode’s interviews from Code 2018
<figure>
<img alt="Evan Spiegel, Snapchat founder and CEO" src="https://cdn.vox-cdn.com/thumbor/XegkesBRH1l-4TbRwUNSVGxtruk=/72x0:1209x853/1310x983/cdn.vox-cdn.com/uploads/chorus_image/image/60015419/REC_ASA_CODE18_20180529_181526_0433_preview.0.jpeg" />
<figcaption>Asa Mathat</figcaption>
</figure>
<p>Evan Spiegel, Sheryl Sandberg, Daniel Ek, Dara Khosrowshahi and more.</p> <p id="4o4pHb">Some of the biggest names in tech, media and even the agencies that regulate these industries took the stage at <strong>Recode’s</strong> Code Conference in Rancho Palos Verdes, Calif. And Sunday, the third episode of <a href="https://www.recode.net/2018/6/7/17438414/watch-video-msnbc-recode-revolution-facebook-uber-snapchat-kara-swisher-peter-kafka">MSNBC and Recode’s “Revolution” series</a> featured five of the biggest interviews from Code this year: Snap CEO Evan Spiegel, Spotify CEO Daniel Ek, Uber CEO Dara Khosrowshahi, Airbnb CEO Brian Chesky and Facebook’s COO Sheryl Sandberg and CTO Mike Schroepfer.</p>
<p id="dWjA79">Want more? You can watch the full interviews of everyone featured on our MSNBC special as well as with leaders like Democratic Senator Mark Warner, Alibaba executive vice chairman Joe Tsai and Momofuku chef and “Ugly Delicious” host David Chang</p>
<p id="bZYHLt">Watch them all below and <a href="http://youtube.com/recode">find more on our YouTube channel</a>.</p>
<h3 id="s8TmG3">Snap CEO Evan Spiegel </h3>
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<h3 id="h5V6J7">Spotify CEO Daniel Ek</h3>
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<h3 id="bC2IpC">Uber CEO Dara Khosrowshahi</h3>
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<h3 id="6uxZDo">Alibaba executive vice chairman Joe Tsai</h3>
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<h3 id="10XYeo">Momofuku chef and “Ugly Delicious” host David Chang</h3>
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<h3 id="TLBnyK">Aileen Lee, founder and managing partner of Cowboy Ventures, Sukhinder Singh Cassidy, president of Step Up and founder of the Boardlist, and Megan Smith, CEO of Shift 7 and the third U.S. Chief Technology officer of the United States of America. </h3>
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<h3 id="2Xdqbw">Illumina CEO Francis deSouza</h3>
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<h3 id="2MN8Qs">Brad Garlinghouse, CEO of Ripple; Bridget van Kralingen SVP, IBM Global Industries; Kathryn Haun, Lecturer, Stanford Graduate School of Business </h3>
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<h3 id="Vtzlx9">AT&T chairman and CEO Randall Stephenson </h3>
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<h3 id="bIsvkE">Airbnb CEO Brian Chesky</h3>
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<h3 id="UbRpAt">Stitch Fix CEO Katrina Lake</h3>
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<h3 id="FIMFP1">Mary Meeker, partner at the venture capital firm Kleiner Perkins Caufield & Byers</h3>
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<h3 id="xkQk57">U.S. Senator Mark Warner, (D-VA), Vice Chairman of the Senate Select Committee on Intelligence</h3>
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<h3 id="dnt8OA">Facebook COO Sheryl Sandberg and CTO Mike Schroepfer</h3>
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<h3 id="LXcCMo">21st Century Fox CEO James Murdoch</h3>
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<h3 id="yGwPO6">Linda McMahon, 25th Administrator of the Small Business Administration and member of President Donald Trump’s Cabinet </h3>
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<h3 id="Oxqa6e">Microsoft president Brad Smith</h3>
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<aside id="Tv60Fd"><div data-anthem-component="newsletter" data-anthem-component-data='{"slug":"recode_daily"}'></div></aside><p id="w7hd3F"></p>
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<p><small><em>This article originally appeared on Recode.net.</em></small></p>
https://www.vox.com/2018/6/10/17446824/watch-videos-full-interviews-kara-swisher-peter-kafka-recode-code-2018Recode Staff2018-06-04T13:28:25-04:002018-06-04T13:28:25-04:00Uber CEO Dara Khosrowshahi says UberEats has a $6 billion bookings run rate
<figure>
<img alt="Uber CEO Dara Khosrowshahi onstage at Code Conference with Kara Swisher" src="https://cdn.vox-cdn.com/thumbor/0yLyESqebQMU3xkbWRTE_Vt5bO8=/143x0:1280x853/1310x983/cdn.vox-cdn.com/uploads/chorus_image/image/59904853/REC_ASA_CODE18_20180530_203047_3368_preview.0.jpeg" />
<figcaption>Asa Mathat</figcaption>
</figure>
<p>The food delivery business is also growing 200 percent, Khosrowshahi said at Code Conference. </p> <p id="O0d2CY">Uber’s food delivery business is on pace to be the largest food delivery business outside of China. </p>
<p id="Cghy3M">“Eats is an exploding business in a good way,” CEO Dara Khosrowshahi said onstage at <strong>Code Conference</strong> at Rancho Palos Verdes, Calif. “It’s now at a $6 billion bookings run rate, growing over 200 percent.” </p>
<p id="kx78kw">Khosrowshahi said the biggest challenge the company’s food-delivery business is grappling with is getting deliveries done in under 35 minutes every time. </p>
<p id="lWrgkF">“It’s taking advantage of our customer base, it’s taking advantage of our brand,” he said. </p>
<p id="0tkSeW">“Eats is only in 250 cities on a global basis and it’s got 350 cities to go to catch up to our rides business,” he continued.</p>
<p id="fdJXZs">For context, Grubhub, one of the more established food delivery services, had $3.8 billion in gross food sales last year, though it’s largely a U.S. business. <a href="https://www.recode.net/2018/4/18/17242262/uber-eats-grubhub-food-delivery-startup">Uber Eats is the the fastest growing food delivery service</a>, with consumers pending more on Uber Eats than on any other food delivery service in nine of the 22 most-populous U.S. cities.</p>
<p id="2WTupc">The former Expedia CEO said Eats doesn’t need any acquisition for its UberEats business but will be opportunistic in the future. </p>
<p id="9itVue">Outside of its core rides business and Eats, Khosrowshahi also said he wants Uber to be the “Amazon for transportation.” <a href="https://www.recode.net/2018/4/11/17223896/uber-transportation-getaround-public-transit-tickets-cities">As we previously wrote</a>, the company has partnered with a few firms to connect its users to multiple forms of transportation in an effort to have a piece of every transport transaction. </p>
<p id="TM4H4g">Watch the full interview below:</p>
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<p id="aH0Soo">Or listen to it on our podcast <strong>Recode Decode</strong>:</p>
<div id="IL6mgp"><iframe src="https://player.megaphone.fm/VMP9561145544" style="width: 100%; height: 200px; border: 0 none;" scrolling="no"></iframe></div>
<aside id="uDFGy5"><div data-anthem-component="newsletter" data-anthem-component-data='{"slug":"recode_daily"}'></div></aside><p><small><em>This article originally appeared on Recode.net.</em></small></p>
https://www.vox.com/2018/5/31/17390076/uber-ceo-dara-khosrowshahi-code-conferenceJohana Bhuiyan2018-06-04T13:27:56-04:002018-06-04T13:27:56-04:00Uber CEO Dara Khosrowshahi says he’s trying to convince Alphabet to put Waymo self-driving cars on the company’s network
<figure>
<img alt="Uber CEO Dara Khosrowshahi" src="https://cdn.vox-cdn.com/thumbor/wgv9av3ZDWUUCnu5sJ08qQu-Zdg=/72x0:1209x853/1310x983/cdn.vox-cdn.com/uploads/chorus_image/image/59905223/REC_ASA_CODE18_20180530_202908_2968_preview.0.jpeg" />
<figcaption>Asa Mathat</figcaption>
</figure>
<p>“It’s up to them whether they want to do it or not.”</p> <p id="oQ316h">Months after Uber and Alphabet settled their messy legal battle over self-driving trade secrets, Uber CEO Dara Khosrowshahi said the companies are discussing working together on self-driving. </p>
<p id="JWgE3K">“[The relationship is] getting better,” Khosrowshahi said at the <strong>Code Conference</strong> at Rancho Palos Verdes, Calif. “You build relationships slowly but surely. I have a long relationship with Google and we have a trust level. We’re having discussions with Waymo. If something happens, great.” </p>
<p id="z9nGaS">“They’re an incredible technology provider, they’re serious about autonomous,” he continued. “To the extent that that technology could show up on the [Uber] network, I think [it] could be a good thing. It’s up to them whether they want to do it or not.” </p>
<p id="0jAGoK">Khosrowshahi said plugging Waymo’s self-driving cars on the Uber network makes financial sense because it would increase utilization of the vehicles. </p>
<p id="tAbBpo">“Autonomous will be shared,” he said. “That will be fundamental to the technology. If it’s shared, you want to have the highest utilization rates possible. Owning or being a part of the largest rideshare network on a global basis will enable you to get the highest utilization out of your autonomous cars.”</p>
<p id="N014iv">Khosrowshahi’s tone on self-driving is markedly different from the extreme stance his predecessor, Travis Kalanick, took. To Kalanick, self-driving was an existential threat to Uber and drivers were the biggest obstacle to making the business work. Khosrowshahi said, as he has said previously, that for a long time the network will be a hybrid model where there will be drivers alongside self-driving cars on the platform. </p>
<p id="Mzuf23">“It’s existential if we don’t have access to the technology,” he said. </p>
<p id="bnUleN">Watch the full interview:</p>
<div id="hHWAFt">
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<p id="aH0Soo">Or listen to it on our podcast <strong>Recode Decode</strong>:</p>
<div id="0Izcpi"><iframe src="https://player.megaphone.fm/VMP9561145544" style="width: 100%; height: 200px; border: 0 none;" scrolling="no"></iframe></div>
<aside id="XWwoSB"><div data-anthem-component="newsletter" data-anthem-component-data='{"slug":"recode_daily"}'></div></aside><p><small><em>This article originally appeared on Recode.net.</em></small></p>
https://www.vox.com/2018/5/31/17390030/uber-ceo-dara-khosrowshahi-code-conference-interviewJohana Bhuiyan2018-06-04T13:27:19-04:002018-06-04T13:27:19-04:00Full video and transcript: Uber CEO Dara Khosrowshahi at Code 2018
<figure>
<img alt="Uber CEO Dara Khosrowshahi" src="https://cdn.vox-cdn.com/thumbor/7HUFtECe3Shg9ksYmKmG17tIenI=/74x0:1211x853/1310x983/cdn.vox-cdn.com/uploads/chorus_image/image/59912343/REC_ASA_CODE18_20180530_203317_3399_preview.0.jpeg" />
<figcaption>Asa Mathat</figcaption>
</figure>
<p>“Just like Amazon sells third party goods, we are going to also offer third party transportation services. So, we wanna kinda be the Amazon for transportation.”</p> <div id="4dIQ03"><iframe src="https://player.megaphone.fm/VMP9561145544" style="width: 100%; height: 200px; border: 0 none;" scrolling="no"></iframe></div>
<p id="tm8EIR"><strong>Kara Swisher: The next person I’m going to bring out</strong><strong> —</strong><strong> we have two more great interviews</strong><strong>.</strong><strong> I just want to say, I got this T-shirt, I do a podcast called </strong><strong>“</strong><strong>Recode Decode</strong><strong>”</strong><strong> and at the beginning of it, I</strong><strong> ...</strong><strong> </strong></p>
<p id="4pXCai">I<strong>t’s an amazing experience to do a podcast because the fans are astonishing. I get stopped a lot by fans who love podcasts, I think it’s cause you’re in their ear and they think they know you, which they don’t. </strong><strong>I</strong><strong>t’s really interesting</strong><strong>.</strong><strong> </strong></p>
<p id="J6fsIy"><strong>So</strong><strong> this, Peter came in here and his son spent two weekends making a T-shirt. At the beginning of the show I say</strong><strong>,</strong><strong> “I’m Kara Swisher, you may know me as” and I make a joke. A joke around things. And this kid spent, Aiden, made a T-shirt of all my “you may know me as</strong><strong>.</strong><strong>” And gave it to me, which is fantastic and slightly odd but fantastic and I love it, and I was realizing some of them I want to read because it has to do with this next speaker, but I had things like, “You may know me as the leading cause of heart attacks in Silicon Valley executives</strong><strong>,</strong><strong>” “You may know me as the nagging voice inside of Silicon Valley</strong><strong>’</strong><strong>s head where its conscience used to be</strong><strong>,</strong><strong>” “You may know me as the only person trying to keep Peter Thiel in New Zealand</strong><strong>.</strong><strong>” I’m still trying. And all kinds of stuff, they’re really, I’m really funny. </strong></p>
<p id="YADqCE"><strong>So anyway, </strong><strong>“T</strong><strong>he person who never wants anyone to use the phrase ‘cuddle puddle</strong><strong>,</strong><strong>’</strong><strong>”</strong><strong> which was great. Remember that, </strong><strong>“</strong><strong>cuddle puddle</strong><strong>”</strong><strong>? </strong></p>
<p id="0UhJDv"><strong>Anyway</strong><strong>,</strong><strong> so we just use them to do stuff</strong><strong>,</strong><strong> but one of the ones I have here is one, I have a lot of them about Uber</strong><strong>,</strong><strong> I have to say, I use it as a joke and a punchline all the time</strong><strong>,</strong><strong> and one of them is</strong><strong>,</strong><strong> “You may know me as a brilliant jerk but not the kind who works at Uber</strong><strong>.</strong><strong>” </strong></p>
<p id="0ny5HI"><strong>So without further ado</strong><strong>,</strong><strong> I want to bring out someone who I’ve gotten</strong><strong> ...</strong><strong> </strong><strong>C</strong><strong>’mon</strong><strong>,</strong><strong> that’s funny. </strong></p>
<p id="X3GNEc"><strong>It’s not always a joke</strong><strong>. W</strong><strong>hat’s gone on at Uber has been very serious and is a really interesting case for Silicon Valley and this is its new CEO, Dara Khosrowshahi. I’ve gotten to know him and I’ve really got a lot of admiration for him and we’re going to have a great talk about Uber and where it’s going. </strong></p>
<p id="GjxIIY"><strong>So Dara</strong><strong>,</strong><strong> come out here.</strong></p>
<p id="IP4kli"><strong>Dara Khosrowshahi</strong>: Thank you.</p>
<p id="WdRPVe"><strong>Yeah. You’re slowly ruining my abilities to make fun of you.</strong></p>
<p id="xRBEEw">I’m the dumb nice guy.</p>
<p id="rkCQRO"><strong>Yeah, the dumb nice guy. </strong></p>
<p id="GnQf4f">Great.</p>
<p id="B0RQnQ"><strong>That’s how I think of you. So let’s start talking about how you got there and Uber. At the Christmas party for Uber this year, you turned to all the reporters in the room and</strong><strong> ...</strong><strong> </strong><strong>T</strong><strong>ell them what you said. </strong></p>
<p id="O1JADH">I said, “Thank you for my job.”</p>
<p id="Rhx9vS"><strong>Yeah you did, which was really lovely, we liked that. Because we’re egomaniacs. </strong></p>
<p id="fiTICm"><strong>So when you got your job you didn’t think</strong><strong> —</strong><strong> it was part of a really strange process having covered it and stuff like that</strong><strong> —</strong><strong> you didn’t think you got the job, correct?</strong></p>
<p id="JbGvWz">No, it was one of the most bizarre processes out there and I was kind of the unknown third party.</p>
<p id="ZnkY0a"><strong>Right.</strong></p>
<p id="3uKd4T">Which I think you sort of figured out who the unknown third party was right?</p>
<p id="nHfbqj"><strong>Yes I did, I said it was a man who was not a white man, who was a person of</strong><strong> ...</strong></p>
<p id="hX4xxG">Am I, what do you think?</p>
<p id="tCvmoy"><strong>I don’t know what you are, in any case they were</strong><strong> ...</strong></p>
<p id="OvLCvR">I’m still figuring it out.</p>
<p id="vPFiMs"><strong>I know</strong><strong>,</strong><strong> but you’re Persian, it said it was not someone you’d think, they gave me all kinds of clues but I couldn’t figure it out but I had different parts of you and stuff like that. But I did figure you out.</strong></p>
<p id="W3jDX6">Eventually, eventually. </p>
<p id="OgTTIP"><strong>Eventually. But you didn’t think you had the job?</strong></p>
<p id="lPGgq4">No, it was, I mean, I was competing with these headliners, legends of business, Jeff Immelt, Meg Whitman, and I was just the guy in Seattle who was running Expedia in my own nest there. And you know, one of the advantages that I had was, I loved my job, I loved what I was doing at Expedia, and at first it was a bit of a lark and, “Mike, I’m happy where I am, I’m doing great.” </p>
<p id="fPEC2I">I actually talked with Daniel Ek, who was the next person that you have on here, I remember a conversation over drinks with Daniel and Daniel’s like, “Since when is life about being happy?” Like, “this about doing something great, this is an important company in our lives and you have to try this.” </p>
<p id="9NhIEj">And so when they called me again I’m like, “You know what, what the hell, let’s do this.” But I didn’t take it seriously at first, I didn’t sell myself to the company because I wasn’t interested in getting a job because I had a great job, I was interested in doing this if I was the right person for it. </p>
<p id="zKwfeJ">So I wasn’t particularly politicking, and with all the board dynamics going on, I was just like, “Hey, this is me, I’ve got my strengths, I’ve got my weaknesses, if I’m the right person for this role I’m game,” and I thought there was a very small chance of my getting in. And the one person who all along who was like, “You’re going to get it, you’re going to get it,” is Syd, my wife. So she and I bet five bucks and she won. </p>
<p id="PBBow1"><strong>Right, well good.</strong></p>
<p id="VAZWOn">She should have bet more.</p>
<p id="A7h7KK"><strong>And you, when you got it, when you found out you got it</strong><strong> ...</strong></p>
<p id="Hfk5tG">Arianna Huffington called me and I was shopping for groceries and she’s like — Arianna, I’m sorry — [Arianna voice] “Dara, I have good news and bad news.”</p>
<p id="MOQHUn"><strong>Let me do it, let me do I.</strong><strong> [Arianna voice]</strong><strong> “Dara</strong><strong>,</strong><strong> I have good news and bad news.”</strong></p>
<p id="vxkzrk">”Good news and bad news,” yes. So there she is.</p>
<p id="dnVxWZ"><strong>[Arianna voice] “</strong><strong>Hello baby</strong><strong>,</strong><strong> how are you?”</strong></p>
<p id="vsKRfA">Yeah, “How are you?” Usually I’m like the bad news first, so I’m like, “Give me the good news.” She said, “You have the job.” So I said, “What’s the bad news?” “It’s leaked already.” So it was ... and I think you reported it. </p>
<p id="C1uZbl"><strong>I reported it, yeah.</strong></p>
<p id="kUR7bk">So it was a little awkward, I already had a job and I got this new job and we had to, I put our chairman Barry Diller, at the time the Expedia chairman, in a really difficult position and he handled it with aplomb and he was amazing and we are where we are now. </p>
<p id="bCitT7"><strong>So let’s talk about where we are now. Let’s talk about the past. When thinking about this job, you had a company that was toxic, in a lot of</strong><strong> ways,</strong><strong> a very toxic atmosphere. You had </strong><strong>...</strong><strong> Susan Fowler had set off</strong><strong> ..</strong><strong>. How did you imagine you were going to fix that? You had a founder who was making trouble and continued to make trouble while you were there and we’ll talk about that. But how did you think about when you first came in?</strong></p>
<p id="1ghFAD">So I split up ... I’m an engineer by training, and the way to take on complex problems is to split them into component parts. And for me, first off and super important, was the governance of the company. The governance of the company, you had Benchmark and Travis to some extent, really battling each other, and it was a battle over the control of the company. So you had people who were focused on control rather than success. </p>
<p id="YQ0BiP">And so one focus for me was solve the governance so you don’t have players solving for control but just thinking about the success of the company, and I think we’ve gotten there now.</p>
<p id="mVUrPb">Second for me was management and culture. Augment the management team, bring in some of my own folks, Tony West, Barney Harford, looking for a CFO now. And also very quickly go after the culture of the company, restate what we think the norms and the culture of Uber should be. We brought that, we kind of crowdsourced that from the company itself, rather than it being kind of a top-down thing, and I think that’s starting to work. </p>
<p id="7qv82g">And the one norm we talk about all the time is “do the right thing,” and if we start doing the right thing and if we start acting differently, eventually the world will notice — and we’re not going to be able to control when the world will notice. Eventually the world will notice because the truth comes out in everything, good or bad. </p>
<p id="o12ZsH">And then the third is looking — after culture and management — is thinking about the business strategically, setting us up for an IPO and really setting up the business so we can be profitable over the long term. </p>
<p id="VAASIn"><strong>And completing the investments that you did. </strong></p>
<p id="ja2E5e">Yeah, absolutely, absolutely. </p>
<p id="3OEYZR"><strong>So let’s talk about the culture, and the toxic culture and Travis, what you had to do. He’s on the board, he’s a big shareholder. </strong></p>
<p id="hIOCmr"><strong>You got there and I remember we had lunch and I was like</strong><strong>,</strong><strong> “He’s going to do something bad to you, let me just tell you that.” And you were like, “Oh Kara, don’t be so negative.” And I was like “I’m going to be, I’m right.” And so, one of the things</strong><strong> ...</strong></p>
<p id="OEjlFp">Is this the part where you say that you were right?</p>
<p id="riVKTI"><strong>I told you so. No</strong><strong>,</strong><strong> but I think, did you understand, because I think you came, I was like “You’re an adult, you didn’t come from this culture.” Did you feel like</strong><strong> ...</strong><strong> how did you go into that? Because here is someone who is hard-driving, great success</strong><strong> ...</strong></p>
<p id="Vos3hR">Huge success. </p>
<p id="k2Y9Q9"><strong>But the methodology was flawed, deeply flawed.</strong></p>
<p id="i2xzpI">Sure, listen, it’s ...</p>
<p id="t7wh2p"><strong>How did you think about dealing with that?</strong></p>
<p id="3zdnmj">My focus is on making the company succeed. I don’t want to get into me versus someone else. If I’m completely pure about the success of the company and don’t think about politics, etc., the rest I believe will take care of itself. And it’s a little bit of an innocent outlook on life, but it’s worked for me. </p>
<p id="CNA4qB"><strong>Right.</strong><strong> </strong><strong>But initially he then kicked your shins with the board members.</strong></p>
<p id="wTzxQD">So he did, but there were two great board members, you know, Ursula [Burns] and John [Thain] are great board members. I didn’t like how it happened, but instead of focusing on how it happened — and the fact is that Travis has the governmental right to bring on those two board members — instead of focusing on that, well, they’re actually two great board members. </p>
<p id="wPxVRo">So let me get to know them, and I’ve gotten to know them, and let me use them to help me to build a company that is successful but also is successful in the right way. And if I focus on that, the rest will take care of itself.</p>
<p id="4RHUR0"><strong>What is your relationship with him now? A founder relationship is important, obviously it’s highly valued in Silicon Valley, probably too valued in some ways. </strong></p>
<p id="Vns0w5">Sometimes.</p>
<p id="11NGXW"><strong>Sometimes.</strong></p>
<p id="DCCU0W">Yeah, sometimes, sometimes not. Every situation is different. </p>
<p id="JQPEq1">I think that the founder relationship is complicated and also frankly the former CEO relationship is complicated. I’m a former CEO of Expedia, I’m still on the board, Mark Okerstrom has taken over from me. My job is to get the hell out of the way. And Mark has to make his mark on that company, Mark has to make his mark, which means he’s the new CEO, he’s going to do things differently, and in doing things differently definitionally, do things differently from my choices. </p>
<p id="kJr2Gj">So I can’t get too personal or offended about that. And I think with Travis, early on I was like, “Listen, I’m going to need my space,” and he did respect that. And once we got rid of the control, the struggle for control, etc. My focus is on taking the company forward and now he’s kind of found his thing and he can be an entrepreneur and he can build something. So he’s a board member, and just as I informed the entire board, I inform him and we have constructive dialogues but also I am taking the company in a different direction and I think he respects that. And I think ultimately whether the direction is the right one or the wrong one will be ...</p>
<p id="qoofiY"><strong>Do you consult with him a lot? </strong></p>
<p id="T40B6B">Not a lot, but it’s, I consult with him the way that I consult with the board. And it is a different direction that we’re going in, in terms of culture. The strategy for us is now broadened in terms of mobility, etc. I did bring in a big partner in SoftBank and I’m very happy about that. </p>
<p id="o5jaOS">So you know, do I consult with him? I consult with him just like I consult with the rest of the board.</p>
<p id="77ILzf"><strong>Okay. Let’s talk about what you’ve been doing</strong><strong> n</strong><strong>ow</strong><strong>,</strong><strong> besides your delightful “I’m sorry</strong><strong>”</strong><strong> video</strong><strong>,</strong><strong> which is lovely.</strong></p>
<p id="cPnvZi">Delightful, I like it.</p>
<p id="ECJMHu"><strong>Not really</strong><strong>,</strong><strong> I can’t stand all of them.</strong></p>
<p id="6X6eiz">Yeah, thank you. Oh, I like it.</p>
<p id="K0XFmN"><strong>Not really. I can’t stand that.</strong></p>
<p id="NKeGoR">Yeah, thank you. That’s what I ... yeah. </p>
<p id="dSXorP"><strong>So, you know. </strong></p>
<p id="Avx8r5">Was that irony? I’ve never of it. Yeah.</p>
<p id="LCzjd0"><strong>No, I just hate them. So, explain why you’re doing ... I see why you’re doing it. </strong></p>
<p id="FlhS1R">Yeah. </p>
<p id="Jm89Eg"><strong>You know. </strong></p>
<p id="jpDAC5">Well, we’re doing it because it was very important, we thought, that our consumers and our target base know that this is a new Uber, and we’re turning over a new leaf. I’m really looking forward to get the heck off TV very, very quickly. But the fact is that we are a different kind of company, and our values are different. And the fact that people had a negative viewpoint of the Uber of two, three years ago was hurting our brand and hurting our business. We’ve gotta reverse that. </p>
<p id="oeUkJC">And so, we are putting money in marketing. It’s a message that I think is going to resonate, and we’re gonna transition into the product itself, and some of the steps that we’re taking on the product side on safety, etc., really fundamentally reimagining the product, and improving our product in a way that I think is pretty responsible.</p>
<p id="GWLGXy"><strong>So, let’s talk about that product. </strong></p>
<p id="QxMkve">Yeah.</p>
<p id="F2wZkR"><strong>Let’s talk about the core product. You have two products</strong><strong>,</strong><strong> obviously, the customers and the drivers. Your driver issues still continue to be something you have to deal with. Talk about that because</strong><strong> ...</strong></p>
<p id="KJHv6K">Long term, sure. Yeah. </p>
<p id="LYsydb"><strong>Yeah. So, talk about that issue, because last time when Travis was here on the stage and started mentioning, when I asked about self-driving, he actually told the truth. He’s like, “The problem with the Uber business model is the guy sitting in the front seat. We gotta get rid of him, and then it’s all gravy for us.” Like, </strong><strong>“O</strong><strong>nce we get rid of him, it’s a great business.</strong><strong>”</strong><strong> I was like, “Thank you, God</strong><strong>,</strong><strong> for saying that.”</strong></p>
<p id="ZdKsbM">So, this is something I fundamentally disagree with. </p>
<p id="NCMW8s"><strong>Yeah, okay. All right. </strong></p>
<p id="GG9KUN">The face of Uber is the person sitting in the front seat. Mostly guys. I actually would like to have more women sitting in the front seat as well because it’s a great form of employment. You can be your own boss and you don’t need to work full-time. That is the face of Uber. ... You can get in and get out. But ultimately, the time that you spend with our service is really the time that you spend with our driver partners. </p>
<p id="Hds1Lb">So, we have launched ... Actually, one of the first product moves that we made is launching a new driver app. It was built in concert with the drivers. We actually consulted them. They were involved in building out the app. We’re introducing a lot of features that ...</p>
<p id="eoYqBp"><strong>Now, there’s still </strong><strong>a lot of </strong><strong>disgruntlement. They don’t feel like they’re paid enough, that they’re getting ... I get email every day from lots of drivers. </strong></p>
<p id="j8w3RQ">We have three million driver partners around the world, and there are some that are disgruntled. All of them, I think, wanna make more money, but fundamentally, they get to be their own bosses, and they get to work on their own terms. In general, I think driver earnings are going up, and we have an increased time and distance in certain places. And we’ve ...</p>
<p id="gheGJZ"><strong>What’s the challenge, then, with them if they feel the push below the system not giving them what they need? They obviously don’t have benefits and other things that ...</strong></p>
<p id="tzZSMV">Well listen, in Europe, we rolled out an insurance feature, where the driver partners actually do get benefits. If they have accidents, they have insurance. They get maternity, paternity benefits, etc. So we have to build a great service, and I think one of the fundamental growth blockers that we have are, are we going to be able to have enough ...</p>
<p id="3iVXOb"><strong>Enough drivers. </strong></p>
<p id="SzG2UB">... driver partners in recruiting, enough driver partners long-term. So one is, we’re working on a product very, very actively. Two is, we are going to work on earnings, and maximizing earnings as long as it doesn’t fundamentally hurt the price of the product, and that’s tough. </p>
<p id="fhQc51">So for example, Pool is a product, and we’re investing hundreds of millions of dollars in Pool in order to get two people into a car. Those two people can pay a much, much lower rate, and the driver doesn’t have to take the brunt of that. And then, we are also looking at benefits. There’s this ... as you think about the gig economy and independent workers, etc., independent workers, they’re a second-class citizen that all of a sudden doesn’t get access to benefits, health care, etc., just because they’ve chosen to work for themselves versus outsource their career to a company. I think when you think about the future of work, work is gonna be much less about a company than it is going to be about the work itself. </p>
<p id="suB81P">And so, part of what I wanna do — we wanna do it at Uber — is to think about the independent workers not being a second-class citizen. Can we economically build our benefits packages and insurance so that this can be a safer way of living, while at the same time being your own boss?</p>
<p id="eCpeJe"><strong>Is the competition for drivers starting to get rougher? We’ve talked about this a number of times. </strong></p>
<p id="qZ6yW5">Rougher? Listen, I think that the competition for drivers is a bigger competition within the economic context because the economy is getting better, and as you know, unemployment rate is at an all-time low. We have to compete against the economy for drivers. It’s not necessarily us versus Lyft, etc. It’s our sourcing just more drivers to come onto the platform, and we have to make it more attractive because their alternatives are becoming more attractive. </p>
<p id="0mKJtn"><strong>So, still talking about the core business, I noticed just in San Francisco, prices going up quite a bit, like everywhere. </strong></p>
<p id="8PnMDq">Yeah, yeah. </p>
<p id="rPGXaz"><strong>Talk about it because now I’m like, “Eh, I think I’ll just walk.” It’s not quite as like, “Wow, it’s just five</strong><strong> ...</strong><strong>” </strong></p>
<p id="sUYOjv">Take a bike. </p>
<p id="FJjkPx"><strong>No, I’m not taking one of those scooters or </strong><strong>any</strong><strong>thing. </strong></p>
<p id="zBrsqx">Those things are ... Not scooters, E-bikes. They’re ...</p>
<p id="FNIZv1"><strong>I’m not taking any of those things.</strong></p>
<p id="Clhvh6">They’re awesome. So, I do think time and distance has come up.</p>
<p id="r9Ezob"><strong>Right. Which one did you just buy? You bought one of those bike things.</strong></p>
<p id="jCZjBo">We bought Jump.</p>
<p id="LTBBXz"><strong>Jump, right. Yes.</strong></p>
<p id="qIqdTE">Which are E-bikes. </p>
<p id="HJk3bI"><strong>Yeah.</strong></p>
<p id="HY539S">A very, very important push for us is to innovate to lower costs. In other words, not just take the rates down in order to lower costs, but actually use innovation to lower the cost of getting from point A to B. Examples of that are Pool, again. We have launched a new product which is called Express Pool, where ...</p>
<p id="C6kxSM"><strong>You meet at a certain point.</strong></p>
<p id="XcqxAZ">You meet at a certain point. You may wait, you may walk a block or two, you may get dropped off a block or two from where you’re going. It allows us to match much, much more efficiently, and allows the ride to take less turns. </p>
<p id="DZ9rzH"><strong>Right.</strong></p>
<p id="VJy0uK">So, the ride itself becomes much more efficient. And then, we are thinking about alternative forms of transport. If you look at Jump, the average length of a trip at Jump is 2.6 miles. That is, 30 to 40 percent of our trips in San Francisco are 2.6 miles or less. Jump is much, much cheaper than taking an UberX. To some extent it’s like, “Hey, let’s cannibalize ourselves.” Let’s create a cheaper form of transportation from A to B, and for you to come to Uber, and Uber not just being about cars, and Uber not being about what the best solution for us is, but really being about the best solution for here. </p>
<p id="ESLr4c"><strong>So bikes, scooters?</strong></p>
<p id="eOw9OU">Bikes, perhaps scooters. I wanna get the bus network on. I wanna get the BART, or the Metro, etc., onto Uber. So, any way for you to get from point A to B.</p>
<p id="hIlKa3"><strong>Wait, you wanna start your own BART? No.</strong></p>
<p id="ZDm6eu">No, no, no. We’re not gonna go vertical. Just like Amazon sells third-party goods, we are going to also offer third-party transportation services. So, we wanna kinda be the Amazon for transportation, and we want to offer the BART as an alternative. There’s a company called Masabi that is connecting Metro, etc., into a payment system. So we want you to be able to say, “Should I take the BART? Should I take a bike? Should I take an Uber?” All of it to be real-time information, all of it to be optimized for you, and all of it to be done with the push of a button. </p>
<p id="PDawNk"><strong>So, any transportation? </strong></p>
<p id="nYRQyn">Any transportation, totally frictionless, real time. </p>
<p id="ULjj0b"><strong>And then, Uber Eats is also a growing business for you all. </strong></p>
<p id="NkDM1d">Eats is an exploding business in a good way. It’s now at a $6 billion bookings ... growing over 200 percent. I think we are going to be the largest food delivery business in the world, X China. It’s taking advantage of our customer base, it’s taking advantage of our brand, but also, we created a startup within the company that can use all of our local infrastructure in all the cities that we’re in. Eats is in only 250 cities on a global basis, and we got another 350 to go in order to catch up to our rides business. </p>
<p id="Ty8WtI"><strong>So, that’s a promising business. These other ones are the ones you’re looking</strong><strong> to</strong><strong> for growth, because you all need to keep that fact.</strong></p>
<p id="LfeVXk">Yeah listen, the way I think about growth is, there’s a core rides business which is still growing, very, very healthy. We’ve got ...</p>
<p id="SL9coq"><strong>What is the growth rate of that now? </strong></p>
<p id="VNqTUv">Overall, the growth rate of our business, this last quarter, the revenue growth was 67 percent. The rides business, we haven’t disclosed, but it’s gotta be at healthy rates in order for the overall business to be growing at 67 percent on a revenue basis. </p>
<p id="ZdU83O">So, you got the rides business. Eats is scaling. We’ve got businesses like Freight that are going to be bigger businesses three to five years from now. This concept of Uber as a platform for us is something, I think, that’s very, very exciting, kinda five to 10 years from now. </p>
<p id="8z7tS3"><strong>What about self-driving? Nobody thinks you’re staying in self-driving. </strong></p>
<p id="N0CcXO">I do think we’re staying in self-driving.</p>
<p id="XyKLcT"><strong>How?</strong></p>
<p id="RVcL6i">So I don’t know about nobody. Listen, the first thing that we gotta do is, we have this incredible tragedy. We’ve got to get back on the road, but we have to be absolutely satisfied that we’re getting back on the road in the safest manner possible. That’s my focus right now. We’re working with a team to do so, and we’ve got a panel of outside experts, former chair of NTSB.</p>
<p id="Sgrctx"><strong>So, you closed Phoenix</strong><strong>?</strong></p>
<p id="16Uxaa">Yeah, yeah. We closed Phoenix, but we will get back on the road over the summer. I actually think that this focus on really, really getting back on the road in as safe a manner as possible, ultimately long-term ... This is a difficult circumstance for everyone involved, first the victim and the victim’s family, but this is gonna make us a better company. </p>
<p id="chy7I1">When I think about autonomous, we want to play in it. The technology that we’re building is incredible. Ultimately, I think that we’re not going to look to own the technology for ourselves and will license it to third parties, we’ll work with OEMs, etc. I think autonomous is kind of a horizontal technology that should be available to everybody, so that is something that we will look to do. We will look to partner. </p>
<p id="UF1EcH"><strong>Right. Do you still look at it as an existential threat to your business? Because that’s how Travis thought. I know we talked about it. </strong></p>
<p id="HvegTH">It’s existential if we don’t have access to the technology. </p>
<p id="KRiUnW"><strong>Right. So, what do you have to make it? What is the</strong><strong> ...</strong></p>
<p id="mb7HLF">Well listen, we have to have access to it. And I think there are gonna be many autonomous players, and that’s why I think as a principle, we will license out our own technology, and then we’ll look to build around other autonomous technology as well. We’re neutral. We’re a network company. So, if GM builds autonomous technology, I’d welcome Waymo to put cars into our network as well. We wanna be totally neutral. </p>
<p id="BNkdHB"><strong>How is your relationship with Waymo now? </strong></p>
<p id="aDTb5N">Getting better. Listen, you build relationships slowly but surely. </p>
<p id="6CjMqu"><strong>Right. </strong></p>
<p id="AFgefa">I had a long relationship with Google, and I think we have a trust level. We’re having discussions with Waymo. If something happens, great. If not, you know, we can live with that, too. </p>
<p id="QcsySj"><strong>Discussions</strong><strong> on </strong><strong>what precisely? </strong></p>
<p id="UMeysW">About putting them onto our network. </p>
<p id="svEuX6"><strong>Right.</strong></p>
<p id="Syuk0L">They’re an incredible technology provider out there. They’re building, they’re serious about autonomous, and to the extent that that technology could show up on the network I think would be a good thing. Now it’s up to them whether they want to do it or not. </p>
<p id="VKKzrz"><strong>Right</strong><strong>. A</strong><strong>nd what are you using to convince them to do s</strong><strong>o?</strong></p>
<p id="zbG3Ln">Economics. </p>
<p id="hmwMhn"><strong>T</strong><strong>hat they need to be near the reservation.</strong></p>
<p id="4PFFJV">I think that if you’re building autonomous, for you to be able to put your cars ... to have the highest utilization rate, because it is ultimately going to be ... autonomous will be shared. That’s fundamental to the technology. If it’s shared, you want to have the highest utilization rate possible, and owning and being a part of the largest ride-sharing network on a global basis will enable you to get the highest utilization out of your autonomous cars. </p>
<p id="zvy1wq"><strong>Right. </strong></p>
<p id="jp18KI">And ultimately, I don’t think it’s going to be black and white. I think that our network is going to be a hybrid network for a long time. There’s this kind of drama of, are machines going to replace humans? </p>
<p id="fAAu68"><strong>Yes. </strong></p>
<p id="JcrPQ2">No, machines augment humans. The magic is like, machines and humans together are the thing that better ... You see it in manufacturing, car manufacturing. You saw it ... Facebook even talks about when they’re looking for hate speech, it’s a combination of humans and computers. Computer’s can’t do it alone. Human’s can’t scale. Machines and humans are better. </p>
<p id="xlJVKm"><strong>So you are committed to staying in the autonomous</strong><strong> ...</strong></p>
<p id="PlKXuG">Yeah, and ultimately our network is going to be a machine network and a human network together, and I think that’s a unique magic that Uber can bring. </p>
<p id="BMVAeY"><strong>What about these other things that you were going into? The vertical lift and take off, Jeff Holder just left, he was doing</strong><strong> ...</strong></p>
<p id="V7gaqg">Jeff wanted Eric to run Elevate, and I think Eric is an amazing executive to run Elevate. You know, for us, it is about defining the future of mobility for cities. And the fundamental issue is 50 percent of the world’s population lives in cities now, it’s going to two-thirds of the population. The infrastructure, the transportation infrastructure of cities cannot keep up with that kind of growth, so one is you’ve got to be smarter, which goes to sharing cars, getting away from car ownership, which is Pool. </p>
<p id="MwQbgy">Second is you need to build out alternative forms of transport, not just cars, which is the bikes that we’re getting into. And the third is just like residential has gone three-dimensional skyscrapers and commercial’s gone three dimensions, you’re gonna have to build a third dimension in terms of transportation, and Elevate for us is the third dimension that we’re taking a big bet on, but it’s a long-term bet and we’re doing it with a number of partners out there. </p>
<p id="1BTXkQ"><strong>Last couple of questions, then we’ll get to the audience. So I think a lot of people feel that you’re just going to carve up the world. You got rid of China, that you’ll do that in other markets. Do you see that happening? </strong></p>
<p id="QpPgn9">We sold in Southeast Asia. </p>
<p id="5Ir3XP"><strong>Right. </strong></p>
<p id="fMIbpV">We are in a position to win in every market that we’re in. Part of the reason we sold in Southeast Asia is one, we believe in Grab and Anthony who runs that business, but we wanted to have enough dry powder to win in everywhere we’re in, and I think we’re in that position. </p>
<p id="wh3Q5m"><strong>India</strong><strong>,</strong><strong> you’re not going to do the same thing? </strong></p>
<p id="MquaJN">India, Middle East, Africa, etc., we are going to be, I believe, the winning player in those markets and we’re going to control our own destiny. </p>
<p id="PEYC8y"><strong>Because in a lot of ways, the investment Yahoo made in China is what made it, and right now you’re de-investment</strong><strong> ...</strong></p>
<p id="n8ejlA">I’m hoping that won’t be the path to my success. </p>
<p id="J6FiPJ"><strong>Right. Last question, when are you going public?</strong></p>
<p id="E98NRs">2019. Second half of 2019, and we’re on track. I need a CFO, though. </p>
<p id="WBH0Ik"><strong>You need a lot. You need some women executives, that would be kind of nice. </strong></p>
<p id="fsZptJ">That would be definitely kind of nice. </p>
<p id="s6OXnT"><strong>And? </strong></p>
<p id="xPSRrK">Working on it. Working on it. </p>
<p id="SKZMNv"><strong>Results</strong><strong>,</strong><strong> Dara. </strong></p>
<p id="240GaI">On a serious note, I am ... We talk about recruiting, etc., in order to build a diverse team, you’ve got to build a diverse slate and that takes time. You can say it, but it actually takes time to find the talent out there and to find diverse talent out there. And if I’m going to tell my execs to do it, I’ve got to do it myself. </p>
<p id="lngYu2"><strong>Right.</strong></p>
<p id="2WnmRQ">And so it is taking time. I don’t know whether it will be a woman or a man, but I’m going to make damn sure I look at both. </p>
<p id="Uczd69"><strong>Yep. This particular company could use some woman executives. I’m sorry</strong><strong> ...</strong></p>
<p id="GSpdFm">I agree. If we can do it, we’ll make it happen. </p>
<p id="EYAV98"><strong>The questions from the audience. Right here. </strong></p>
<p id="hHrkC4"><strong>Cid Wilson</strong><strong>: Hi. How are you?</strong></p>
<p id="w5z6Hx">Hi.</p>
<p id="di06bS"><strong>Cid Wilson</strong><strong>: Cid Wilson, president and CEO of the Hispanic Association of Corporate Responsibility in Washington, D.C. You’ve had some pretty high-profile diverse hires, Tony West as your general council. You just hired Bo Young Lee as your first chief diversity officer, which is great. </strong></p>
<p id="nEALAi">She’s great. </p>
<p id="2K5hOp"><strong>Cid Wilson</strong><strong>: And I know, Bozoma Saint John is your chief marketing officer. </strong></p>
<p id="me36ex"><strong>She’s not CMO but go ahead. </strong></p>
<p id="GgtgBi"><strong>Cid Wilson</strong><strong>: Okay. </strong></p>
<p id="3v4RkT">Brand officer, yeah. </p>
<p id="7PPegD"><strong>Cid Wilson</strong><strong>: Okay, chief brand officer, sorry. My question is that you hear about a lot of the Silicon Valley CEOs who talk to other CEOs when it comes to issues of diversity and inclusion, what are you hearing when you talk to your fellow colleagues who are the CEOs of the other Silicon Valley companies about what you mention as the challenges you’re finding? Because this morning I asked the same questions of Randall Stevenson at AT&T who ... they don’t seem to have a problem finding diverse talent, and yet you hear Silicon Valley companies and CEOs mentioning that they’re finding challenges finding people of color that can serve in these high-ranking positions, and you found some. </strong></p>
<p id="RCpmDx">Yep. </p>
<p id="z8UYv8"><strong>Cid Wilson</strong><strong>: But what’s been your observations? </strong></p>
<p id="Ocr4Jc">So I don’t have a lot of time to talk to other CEOs in Silicon Valley right now, just honest answer, and it goes to two things. One is building a diverse slate so that you’re looking at all kinds of talent, both in terms of underrepresented minorities and women as well, you just have to put in the work. </p>
<p id="31XFX8">I do think there’s too much of a focus on hiring and not enough of a focus on development. I’m a huge believer in talent development. If all you’re doing is hiring, it’s like you’re trading with each other, you’re not actually building talent within these companies. Development takes time, and one of the reasons I’m really excited to have Bo on the team is I’m committed to developing diverse talent at this company. Not going to happen overnight, gonna take five to seven years, but then I think that we’ve succeeded if we build some real stars of this company over a period of time. </p>
<p id="QlZwrn"><strong>Okay. </strong></p>
<p id="0ztNp6">Thanks. </p>
<p id="sUaZ3I"><strong>Cid Wilson</strong><strong>: Sure. </strong></p>
<p id="DywtO7"><strong>Let’s keep these questions short because we only have a short amount of time because we do have a drone thing going on. </strong></p>
<p id="t8hZT1"><strong>Jason Del Rey</strong><strong>: So I can’t ask three questions, okay. </strong></p>
<p id="lJ4Q7T"><strong>No! </strong></p>
<p id="W9tILI"><strong>Jason Del Rey</strong><strong>: Hey Dara, Jason Del Rey from Recode. Question about Uber Eats. You talked about believing you’ll be the number one food delivery company outside ... with the exception of China. </strong></p>
<p id="4YRDEt">I think we are. </p>
<p id="DJi20N"><strong>Jason Del Rey</strong><strong>: You think you are.</strong></p>
<p id="QrOfG9">Yeah, globally.</p>
<p id="bXsopN"><strong>Jason Del Rey</strong><strong>: What is the long-term differentiation of that business to consumers? Is it the partner restaurants? Is it just scale? And the second part of that is, I’m curious in the U.S. if you think you’ll need any acquisition of other brands in the space to strengthen your hold here.</strong></p>
<p id="Tcq1or">I think that the magic that we have is the hard-core execution and getting the delivery in under 35 minutes, and getting it under 35 minutes every single time. To move that success factor from 98 percent to 99 percent is incredibly difficult but I think we have a team that is just really driven to making us as perfect and as fast as possible. And I think it’s that simple. Honestly, anyone else as dedicated as being fast every single time. That’s a secret, it seems simple but it’s really hard to execute on. </p>
<p id="YjMEuz"><strong>Jason Del Rey</strong><strong>: The second question was just the acquisitions in the space. </strong></p>
<p id="mH8OCm">I think we will be opportunistic. I’ve done lots of acquisitions in the past. We don’t need an acquisition, but listen, this is a big space, there’s a lot of growth in it. I think that delivery is going to be a much, much bigger portion of eating and consumption going forward. Plan No. 1 is organic, and we’ll be opportunistic if there are acquisitions out there. We just don’t need to do it. </p>
<p id="kfyYeJ"><strong>Okay. Quick question because we’ve gotta get</strong><strong> ...</strong></p>
<p id="TwFruq"><strong>Chris Peifer</strong><strong>: Hey Dara, congratulations. </strong></p>
<p id="zhQDTl">Thank you. </p>
<p id="zrg97Q"><strong>Chris Peifer</strong><strong>: Chris Peifer, CEO of Hop. As long as we have humans that are driving, I’m just curious because a lot of the safety measures seems to be aimed at the rider and I’m just curious what you’re doing for the driver now that I’ve got family members and friends that are drivers. </strong></p>
<p id="xrD7jW">Yeah, so we are ... Today, for example, we rolled out a 911 emergency button for riders, we’re doing the same thing for drivers as well. I think that in general we’re trying to get much better at identifying and rating our community, and that includes both riders and drivers, and flagging unsafe riders just as we flag unsafe drivers as well. </p>
<p id="GAsePr">We really are ... I believe it’s a competitive differentiation if we make Uber the safest ride-sharing platform on Earth for both riders and drivers. </p>
<p id="trBzb8"><strong>I’m sorry we can’t get to the last question. I apologize. Dara, I have one more question. Which thing scares you the most, right now as CEO? </strong></p>
<p id="tkTfE5">What scares me the most is the company’s too dependent on me making decisions. When a decision has to come to me then it’s a failure, because then the team doesn’t know what to do. I haven’t spent enough time on putting my team together. I’ve spent a little too much time on doing and I gotta get that team, and that team has to get aligned so hopefully they can just fly without me. </p>
<p id="2UvM6x"><strong>Al</strong><strong>l </strong><strong>right, Dara Khosrowshahi, thank you. </strong></p>
<p id="fw3cZA">Thank you. </p>
<aside id="KqDk76"><div data-anthem-component="newsletter" data-anthem-component-data='{"slug":"recode_daily"}'></div></aside><p><small><em>This article originally appeared on Recode.net.</em></small></p>
https://www.vox.com/2018/5/31/17397186/full-transcript-uber-dara-khosrowshahi-code-2018Recode Staff2018-06-02T12:00:01-04:002018-06-02T12:00:01-04:00Watch 200 Intel drones light up the 2018 Code Conference sky
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<img alt="" src="https://cdn.vox-cdn.com/thumbor/PylsIQgqNKxSOBBY5D-OK7N59es=/0x135:1080x945/1310x983/cdn.vox-cdn.com/uploads/chorus_image/image/59928215/Intel_Drone_GIF_CODE_v1_3.0.gif" />
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<p>High-tech fireworks.</p> <p id="fJ5A15">Intel’s Shooting Star mini drones lit up <strong>Recode’s Code Conference</strong> sky on Wednesday night. If you <a href="http://www.nbcolympics.com/video/drone-footage-opening-ceremony-pyeongchang">watched the Olympics this year</a>, you’re familiar with these cool, tiny balls of light. </p>
<p id="JOvwCN">Over 200 Shooting Star drones were at <strong>Code</strong> this year. The drones, which weigh less than a pound each, have “built-in LED lights that can create over four billion color combinations,” according to Intel.</p>
<p id="0dkXw7">Watch what our <strong>Code</strong> attendees saw in Rancho Palos Verdes, Calif.</p>
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<aside id="hgKWvI"><div data-anthem-component="newsletter" data-anthem-component-data='{"slug":"recode_daily"}'></div></aside><p><small><em>This article originally appeared on Recode.net.</em></small></p>
https://www.vox.com/2018/6/2/17417770/watch-video-intel-shooting-star-drones-2018-code-conferenceMeghann Farnsworth2018-06-01T10:22:15-04:002018-06-01T10:22:15-04:00Code 2018: When will Silicon Valley take responsibility for its products?
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<img alt="Uber CEO Dara Khosrowshahi, Facebook COO Sheryl Sandberg and Spotify CEO Daniel Ek at the 2018 Code Conference" src="https://cdn.vox-cdn.com/thumbor/w0eZ-iONi7ljcjf2MDbPjoHLMVQ=/78x0:2237x1619/1310x983/cdn.vox-cdn.com/uploads/chorus_image/image/59916827/dara_sheryl_daniel.0.jpg" />
<figcaption>Uber CEO Dara Khosrowshahi, Facebook COO Sheryl Sandberg and Spotify CEO Daniel Ek | Asa Mathat for Recode</figcaption>
</figure>
<p>Who’s growing up — and who’s lagging behind — was a recurring question this week at the <strong>Code Conference</strong>.</p> <p id="N2veWe">An unofficial theme of the <a href="https://www.recode.net/code-conference"><strong>2018</strong> <strong>Code Conference</strong></a> was the “Spider-Man” quote (<a href="https://quoteinvestigator.com/2015/07/23/great-power/">or was it Voltaire?</a>), “With great power comes great responsibility.” Tech is changing and disrupting the world every day — but do its leaders see themselves as responsible for those changes, good <em>and</em> bad? </p>
<p id="7bUvkU">On the latest episode of <strong>Too Embarrassed to Ask</strong>, we convened a supergroup of Vox Media podcast hosts — <a href="https://itunes.apple.com/us/podcast/recode-decode-hosted-by-kara-swisher/id1011668648?mt=2">Recode Decode</a> host Kara Swisher, <a href="https://itunes.apple.com/us/podcast/recode-media-with-peter-kafka/id1080467174?mt=2">Recode Media</a> host Peter Kafka and <a href="https://itunes.apple.com/us/podcast/converge-with-casey-newton/id1385113107?mt=2">Converge</a> host Casey Newton — to recap the conference and dive into that question. They concluded that whether or not tech companies are volunteering for that great responsibility, it is being thrust upon them. </p>
<p id="wGDZCo">“All of these companies — not just Facebook and YouTube, but Spotify and Uber — describe themselves as ‘platforms,’” Kafka said. “The argument is, ‘We’re just in the middle here and people are putting stuff up,’ or ‘People are connecting with drivers, we’re just facilitating it.’</p>
<p id="EWAexH">“This is the year where we’re bumping up against some of those limits, whether the companies are recognizing it on their own or being forced to recognize it,” he added.</p>
<p id="nTdtv1">Newton drew a distinction between leaders like <a href="https://www.recode.net/2018/5/31/17397186/full-transcript-uber-dara-khosrowshahi-code-2018">Uber CEO Dara Khosrowshahi</a> — who he said appeared “more boring” than former CEO Travis Kalanick, for the better — and <a href="https://www.recode.net/2018/5/31/17397188/full-transcript-spotify-daniel-ek-code-2018">Spotify CEO Daniel Ek</a>. While Khosrowshahi explained clearly how he intends to clean up the mess he inherited, Ek wouldn’t or couldn’t explain Spotify’s temporary decision to <a href="https://www.nytimes.com/2018/05/10/arts/music/rkelly-spotify-accusations-xxxtentacion.html">ban R. Kelly from its playlists</a>. </p>
<p id="eQCXRh">“If you have artists who have done really bad things in the real world, should you continue to promote them on your public playlists?” Newton asked. “Not, ‘Should they be allowed to be on the platform?’ because there’s a lot of artists who’ve done a lot of shady things, but if you’re going to put together the best ‘90s playlist, should R. Kelly be on it, given all the <a href="https://www.buzzfeed.com/jimderogatis/r-kelly-sexual-abuse-allegations-lizzette-martinez-times-up?utm_term=.uw2B15zdY#.ue2BOl9qo">stories about [him] being a sexual predator</a>?” </p>
<p id="PWEBRL">“[Ek] said the word ‘transparency’ 400 times, and I still have no idea what his company thinks about its policies,” he said. </p>
<p id="YIpXYU">You can listen to <strong>Too Embarrassed to Ask</strong> on <a href="https://itunes.apple.com/us/podcast/too-embarrassed-to-ask/id1073226719?mt=2">Apple Podcasts</a>, <a href="https://open.spotify.com/show/4MU3RFGELZxPT9XHVwTNPR">Spotify</a>, <a href="http://pca.st/ask">Pocket Casts</a>, <a href="https://overcast.fm/itunes1073226719/too-embarrassed-to-ask">Overcast</a> or wherever you listen to podcasts.</p>
<div id="pSS38J"><iframe src="https://player.megaphone.fm/VMP9945930962" style="width: 100%; height: 200px; border: 0 none;" scrolling="no"></iframe></div>
<p id="LdqOrS">On the new podcast, the trio also talked about one of the limitations of judging tech execs based on their public appearances at conferences like <strong>Code</strong>. Following on Newton’s remark that <a href="https://www.recode.net/2018/5/30/17397126/facebook-sheryl-sandberg-mike-schroepfer-transcript-code-2018">Facebook’s Sheryl Sandberg and Mike Schroepfer</a> were “clearly there to wrap up their apology tour,” Kafka said we shouldn’t read too much into interviewees who seem to have been heavily coached before an interview. </p>
<p id="r4kgJX">“What’s the upside for them to be candid?” Kafka asked, saying former <a href="https://www.recode.net/2016/10/5/13171430/steve-jobs-apple-conference-swisher-mossberg">Apple CEO Steve Jobs</a> was the exception that proved the rule. “‘Oh, this is how I really feel about this.’ And they might tell you as soon as you walk offstage, or at least a version of it. But they can’t do it [onstage].” </p>
<p id="KvsLiz">Newton said he was most intrigued by a different aspect of the Facebook interview: The lack of a clear statement defining the social behemoth’s purpose, like the one given to its smaller rival Snapchat via <a href="https://www.recode.net/2018/5/30/17397120/snap-ceo-evan-spiegel-transcript-code-2018">Snap CEO Evan Spiegel</a>. </p>
<p id="kQsDRz">“When Spiegel talks about Snap, it’s about getting away from this world where you feel like you’re competing online for attention with your friends, you’re competing for ‘Likes,’” Newton said. “It’s about building closer connections to the people you already know, as opposed to doing these broadcast performances for the entire world. </p>
<p id="LF7KoB">“Sheryl Sandberg was not trying to make the complete case for why Facebook should exist,” he added. “It’s so big that I don’t think they feel like they need to make the case for why. But I would say that given the year and a half that they’ve had, what they should be doing is putting forth an executive who can sketch a positive vision of what Facebook is doing in our lives.” </p>
<p id="IpkVQN">If you like this podcast, make sure to check out our others:</p>
<ul>
<li id="VJPaOf">
<strong>Recode Decode, hosted by Kara Swisher, </strong>is a weekly show featuring in-depth interviews with the movers and shakers in tech and media. You can subscribe on <a href="https://itunes.apple.com/us/podcast/recode-decode-hosted-by-kara-swisher/id1011668648?mt=2">Apple Podcasts</a>, <a href="https://open.spotify.com/show/47jQcyRcrM1EoV0sU39N9F">Spotify</a>, <a href="http://pca.st/recode">Pocket Casts</a>, <a href="https://overcast.fm/itunes1011668648/recode-decode-hosted-by-kara-swisher">Overcast</a> or wherever you listen to podcasts.</li>
<li id="g8wWS8">
<strong>Recode Media with Peter Kafka</strong> features no-nonsense conversations with the smartest and most interesting people in the media world, with new episodes every Thursday. Use these links to subscribe on <a href="https://itunes.apple.com/us/podcast/recode-media-with-peter-kafka/id1080467174?mt=2">Apple Podcasts</a>, <a href="https://open.spotify.com/show/0yW8lq5dBrXHEeiNPFqMeh">Spotify</a>, <a href="http://pca.st/recodemedia">Pocket Casts</a>, <a href="https://overcast.fm/itunes1080467174/recode-media-with-peter-kafka">Overcast</a> or wherever you listen to podcasts.</li>
</ul>
<p id="sM8o3O">If you like what we’re doing, <a href="https://itunes.apple.com/us/podcast/too-embarrassed-to-ask/id1073226719?mt=2">please write a review on Apple Podcasts</a> — and if you don’t, just tweet-strafe <a href="https://twitter.com/karaswisher">Kara</a>. Tune in next Friday for another episode of <strong>Too Embarrassed to Ask</strong>!</p>
<aside id="18URCc"><div data-anthem-component="newsletter" data-anthem-component-data='{"slug":"recode_daily"}'></div></aside><p><small><em>This article originally appeared on Recode.net.</em></small></p>
https://www.vox.com/2018/6/1/17415236/silicon-valley-responsibility-facebook-uber-spotify-kara-swisher-peter-kafka-casey-newton-podcastEric Johnson