atth was easy! glad i could help. at xfinity, we're here to make life simple. easy. awesome. so come ask, shop, discover at your xfinity store today. 10 years ago, travis kalanick launched uber cap, and a leak -- an elite black card service and francisco -- in san francisco. two years after that, the number grew to 5 billion. it became one of the fastest startups ever. growth came with many challenges.

regulators and taxi drivers protested uber's expansion on top of multiple investigations for deceiving authorities, price transparency violations, bribery and sexual harassment. former uber ceo, dark dara khosrowshahi was brought in to fix it. joining me today that uber headquarters in downtown san francisco, uber c.e.o., dara khosrowshahi. it's been a long two years. two years ago it was announced that you would be replacing former c.e.o., travis kalanick. and even you've admitted you

were the unlikely dark horse, even accidental choice. two years later, did they make the right choice and did you make the right choice? dara: i know i made the right choice and i hope they made the right choice. i'm confident that they did. you can never prepare yourself for a job like this and uber is a once-in-a-generation company. but it's been a great two years for us. we have resolved all of the governance conflicts that the company had. there were many legal issues the company was involved with, as well. we have softbank in as a partner and you want softbank to be behind you and a big partner and big investor and we have a great investor base. we've taken the company public and the company revenue, gross bookings have grown 75% since i joined. we now have a path to

profitability, i believe. so while we've had bumps on the road and every adventure has bumps on the road, i like where we are and especially the position we're in now for the next few years. emily: there have been bumps on the road and despite all the negative stories, rideshare companies have been transformational. can uber be as transformational over the next decade as it has over the last decade? dara: we believe it's brought transportation to what we believe is a small segment of the population. we have over four million driver partners all over the world, a huge number which is unparalleled but we want uber to be available to everybody and we're going into the next step of introducing other transportation choices to uber. we've always gone with pool but we're testing buses in cairo now to even bring the price of uber down to the next level, a dollar, a buck 50, et cetera. emily: can uber be so transformational and stop losing money? the prices sound attractive but can you create a good business where the rides are a dollar, a

dollar 50? dara: yes, you look at our rideshare business, it covered our overhead less about $100 million. so the rideshare business itself is earning quite profitably and we believe the profits of the rideshare business not only are going to grow top line but bottom line, as well. and then there are other businesses -- eats, autonomous, trait, et cetera, extraordinarily opportunities that we're funding but i believe we'll prove to our investors that we can take on a serial basis big parts of our business, turn them profitable, and use those parts of the business to fund business in the areas. emily: the stock trading below its i.p.o. price more often than not. investors seem to love shorting it. you have hiring freezes on various teams and fired some of your top level -- how confident are you that uber can be profitable? dara: very confident. we reported a loss from an

accounting perspective and in the real world, our ebitda loss, we're lower than q1 and we're on a good path in terms of ebitda losses, as well. but you're right. none of this will be easy and will take excellent execution from all of our teams, marketing, et cetera, and we'll demand our employees to be doing more with less and to execute incredibly effectively in order for us to grow the top line and bottom line, as well. emily: is pricing the main lever you pull to profitability or are there other drivers? dara: scale. it's getting big when you've got over a billion rides per quarter and trips growing at 35% on a year on year basis. we think we can use technology to be more efficient. for example, instead of your

having to email a call center agent or call a call center agent if you have issues, you can do it in an app. these are technology innovations that allow customers to have a better experience and bring down costs so the combination of growing top line over 30%, technology innovation to delight the customer and take down costs and good old-fashioned efficiency, making sure corporate costs don't grow as fast as our revenue is a formula to profitability. emily: uber's market cap is 50 some billion dollars. there was talk it could be 120 -- $120 billion your compensation is tied to that. can you still get there? dara: i believe we can. short term, right now short term is nothing that we can do about the stock price. there's an old saying that short term the stock market is a voting machine, long term it's a weighing machine. i am very confident that this team can execute and create a

very heavy company that can never be denied. emily: so west, how long does it take -- dara: i think it's in the next couple of quarters are going to show a road map to investors but it will take years. this is a short-term game. but i believe we can demonstrate progress. for example, i talked about our net revenue growth accelerating the second half of the year. i talked about our revenue growth accelerating in the second half of the year beyond 30% and we've always been consistent in saying that the bottom line ebitda will continue to develop in a positive matter. emily: we're in the midst of escalating trade tensions. how exposed is uber if the economy falters? dara: our company is much more tied in to the consumer and the consumer right now in the u.s. is very strong. we're a very global company. the majority of our transactions actually are outside of the u.s. so we really look at global

growth to the extent that global growth slows down, that could be a negative for us, although if global growth slows down, we'll have more driver partners also wanting to come on the platform because we expose very, very flexible labor opportunities. so i do think that the growth of the company is such that we'll be relatively resistant to any macro slowdown and we're not seeing any slowdown with the u.s. consumer as of yet. emily: what's plan b, if we're in a full-blown trade war. we've heard of investing in vietnam or brazil? dara: we're an asset-light company so we don't have to buy cars, et cetera. we'll be wary and make sure that our driver partners can source vehicles in an economic way. many of them source vehicles through second-hand. they'll source used vehicles, so to speak.

so i think this trade war -- we haven't felt it -- in small parts of the business where we're importing bikes, for example, there's some additional expense but it's not having a material effect on the company and we're confident about growth over the next few quarters with or without a trade war. emily: you've asked people to think about uber like amazon. amazon was an online bookstore before they did all this other stuff. what if now is the right time to focus on the core? dara: we have been in the ridesharing business for a long time, as well. and that business is developing and its profitability is developing. we're the top player in every market in which we compete and generally we're either holding share or taking share in those market places so we have a core business that provides the framework for us to build multi-billion dollar opportunities and i think it will be criminal if we don't take advantage of that. you are seeing more and more apps and companies that are

building ecosystems, super apps, so to speak, especially in the east, for example, in china. emily: grab trying to do a super app, 10 cent. is that the way to think about the future? dara: the super apps are winning and we can be the super app of transportation so to speak that allows us to acquire customers at a cheaper rate than our competitors and allows us to keep customers because we have a deeper relationship with them and we think if you can acquire customers and keep them longer, it's a winning formula. emily: uber eats is what, 20%, 30% of the business? dara: yes and growing quickly. we're the largest global player out there and we continue in the category of food, we believe can be as large or even larger than the ridesharing category so we love that business and continue to invest in it. emily: there are so many competitors that do exactly what you do in this market and other markets. what if you're just subsidizing our meals and you don't win the market share and this is a giant hungry money pit? dara: early on, i think people

could have accused the rides business of the same. it turns out that the rides business, you see it with ourselves and lyft, it is moving towards a path of profitability. as you build these businesses with the potential so big, there is subsidization that goes into the marketplace to create efficiencies. you need to get eaters and couriers and sign up restaurants and there is investment early on. there will always be competition in big categories. we have the advantage because we have hundreds of millions of consumers on the ride side that we can introduce to our brand and let them know that there's more to uber than just riding, but there's eating and other areas you can enjoy. emily: some of the businesses we hear less about, like scooters, haven't heard a lot about scooters lately. what's the likelihood you pull out of some of these businesses? dara: every business will have

to execute and carry its weight, so to speak. we're a big believer in micromobility. it's in the early days. we believe in electric bikes. we believe in electric scooters and increasingly i think the mayors of the large cities all around the world are going to want to be interested in ways of moving people around that don't pollute, that don't create traffic, and we believe micromobility can be part of the solution. emily: would you curtail international expansion in the short term? dara: every part of our business has to fight for money and if they're not deserving money, they're not going to get it. believe me, internally, there's lots of creative destruction, there's lots of competition and if one part of our business isn't carrying its own weight, we will pull back. we pulled back out of china and

we turned what was a $2 billion investment in cash into what can be a $10-plus billion stake in didi, a very big ridesharing business in china, as well. in the end we're looking to build a business. we want to build it the right way and in alignment with our partner society, et cetera. if something's not working, we believe we've demonstrated the discipline to make the right call at the right time. every management has their faults. i've got my faults. but the fact is they built a great company and now they've handed it to me and i've got to take that great company and make it even greater. ♪

emily: when we last visited there was a driver protest outside. democratic candidate pete buttigieg was out there with them. he said gig is another word for jobs. that means you're a worker and ought to be protected as a worker. there is support for legislation that would force companies like uber that rely on contract drivers and delivery people to make them full-time. why shouldn't they be full-time? dara: they don't want to be full-time. some do. more than half of our drivers in

the u.s. for example drive less than 10 hours with us a week and listen, right now california has a historic opportunity. we're at the table. we are having these discussions and we want to the get to a solution. we're offering $21 minimum an hour when you're driving on a platform. we're offering benefits and we're offering a voice as far as how you're going to be treated going forward. $21 an hour compares to $12 an hour minimum wage. this is real money and these are real rides and you get the flexibility that every single uber driver or courier wants because they can come into the market when they want to or out. this is a historic opportunity to i think revolutionize the gig economy and i don't think gig is a type of work. to say there's only one way to work and everyone needs to be full-time, et cetera, i don't think that's correct, because it takes away flexibility and flexibility is absolutely something that all of our drivers prize. emily: can you give them flexibility and give drivers and

riders safety at the same time? dara: if the legislatures work in the interest of making something happen, absolutely. and you know we're making very significant investments in safety as far as the safety center, tracking your ride, et cetera and we believe we are the leader in safety as far as transportation goes in the world and will continue to invest aggressively there. emily: we're going to talk a little bit more about the future but before we go there i want to talk more about the past. the uber you took over had some toxic cultural issues. illegal payoffs to police officers. violence, sexual assaults, murder on the platform. angry taxi drivers and a management team that turned a blind eye to much of it in the name of growth at all costs. so-called brilliant jerks, if you will. yet there are some people who say that leadership was bolder, brasher, bigger thinking, maybe

better. how do you respond to that? dara: i think time will tell and i think you need different kinds of management for different times in the development of a company. the management -- every management has their faults. i've got my faults and every management team at the time has their faults but the fact is they've built a great company and they've handed it to me and i've got to take that great company and make it even greater. i think i'm up to the job. while they made their mistakes, the fact is they built a great brand that had weaknesses and has incredible strengths. it's my job to take it to the next level. emily: anthony levandowski, who ran the trucking business that uber bought, was charged with dealing technology to google and dealing trade secrets. what do you make of those charges? dara: i wasn't here when we brought anthony on board but what i do know is that we went

to incredible depths to make sure that any information that anthony might have acquired from google and it sure looked like he did, didn't make it over to our company. that was our responsibility and i think we were incredibly diligent in making sure that we were not guilty of anything that can be nefarious one way or the other. we think when you build, you have to build the right way. anthony is talented. it didn't work out but i think we did the right thing. emily: the person who spearheaded that acquisition which might cost uber $100 million, is still on the board, travis kalanick. i asked you this on i.p.o. day. do you question travis' position on the board? dara: i think that i am going to live in the here and now. travis has an incredible amount of historical knowledge about the company. he's incredibly bright, as are our other board members and i use him at the board -- he's a very strong adviser and his

background on the company is incredibly useful and i think he's supportive. ultimately now we're a public company and the shareholders are going to get to pick their own board and that governance process will take care of itself going forward. emily: you talk to him often? dara: i talk to him during board meetings and once in a while offline, absolutely. emily: he's on the board for now? dara: he's on the board for now and will be on the board tomorrow. fast forward 10, 15 years from now, autonomous is going to be a huge part of how people get around. it will be cheaper, it will be safer. why not invest now. ♪

emily: let's talk about the future, then. to those who say that uber is a ridesharing and food delivery company, what is uber's next big idea? dara: i think that the ideas that we have right now in this building are plenty big ideas.

we've got ridesharing, we've got food delivery, we have micromobility, we've got autonomous. we've got freight revolutionizing how truckers move around and how shippers ship product all over the world. we've got elevate, as well. we have an enormous number of big ideas and now it's execution time. emily: where is most of the technological innovation happening at uber? dara: it is happening all over. we are a combination of the digital and the physical and the two coming together in unique ways. so we have very interesting, for example, machine learning algorithms looking at live supply and demand in a city, what riders are looking for and where they're located, and then giving our drivers guidelines as to where to go in order to meet that demand. this matching of supply and demand in a dynamic way and the pricing that we have is something that's unique. we continue to innovate there and then we innovate in

different spots such as elevate as to how we can bring together different modes of transportation and tie them together walking, driving, helicopter, for example, now, to j.f.k. emily: you're in charge of not just visualizing the future of transportation but trying to get there and create that future. when you look into the future, what does the future of transportation look like? dara: we think we can bring it together. i believe we can have that singular app where every morning when you wake up, any way you want to get from point a to point b, we can give you the information that is relevant to you with live pricing, inventory, et cetera. we now have mass transit in the app so we're going to tell you mass transit you can take subway, you can take a bus, you can take an uber or a pool or elevate, as well. we are uniquely positioned to have all that information together and we can do the same thing for transportation, the same thing for local commerce and with eats restaurants are only the beginning and we can do the same thing for logistics. no other company in the world is

positioned to solve local transportation, local commerce, and logistics, as well, and i think we're in a spearhead position to do so. emily: where's uber in five years, 10 years? dara: with so much innovation and change going on, i have a hard time predicting for you what's going to happen in the next year but i do think what you will see us is increasingly going into multimodal modes of transportation. we are going to open up our marketplace to third-party transportation providers because we're not going to do it all ourselves. i think we're going to be much deeper partners in with the cities in which we operate. we want to bring demand to public transit, as well. we're going to have a much better enterprise solution, as well, both in terms of

businesses and health and what you will see with eats is moving beyond the category of just restaurants, although that's a very, very category, into other categories of commerce, as well. it's going to be a pretty exciting time not just for the next year or five years but for the next 10 years here. and it's really up to the the teams here. it's my job to bring together the talent who can help me envision that 10-year future. emily: the future of profitability, does profitability depend on self-driving car technology? or are those things separate? dara: i think we can get to profitability before self-driving, for example, becomes the majority of trips but i think that if you look forward and if you want to bring safety on the road, increase it, because the number of people who die in accidents in the u.s. and abroad, there's no reason to have that many people hurt. most accidents are caused by human error. and we can avoid that with computers and technologies and at the same time take the cost more mile down pretty significantly so fast forward 10, 15 years from now, autonomous will be a huge part of how people get around. it will be cheaper. it will be safer.

why not invest now to make that happen. emily: can you get profitability without self-driving technology? dara: 15 years from now, no. any transportation company that doesn't have self-driving as part of its strategy and that's why we have a.t.g., we can build out our self-driving technology specifically to serve our network and that's a huge advantage that we have but any company 15 years from now in the transportation space that doesn't have strong self-driving strategy, whether they build it themselves or work with someone, won't be around for long. emily: i'm asking you to think big, big picture. but in the history of silicon valley, in the uber pantheon, how are we going to look back on today, your two-year uberversary? dara: every great company has to go through tough times. you look at facebook, amazon even five years after their i.p.o -- all of them went through periods where companies are tested.

this is the moment where the mettle of uber is tested and i'm very confident that we're going to come out of this stronger than we ever have been before. emily: dara khosrowshahi, thank you so much for joining us here on studio 1.0. dara: thank you very much. ♪

coming up, the stories that shaped the weekend business around the world. the political future hangs in the balance. parliament says no to a snap election as the clock ticks to arts -- to another brexit deadline. the ecb takes steps towards a new stimulus passed. the question is is he doing everything it takes? offerings. and china tariff relief. >> more optimistic. .