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tv   Press Here  NBC  September 7, 2014 9:00am-9:31am PDT

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corporate jets for the price of commercial first class. a co-founder of jetblue, like wilcox, on the future of business travel and the airline industry. plus, taking on craigslist and yep. with our guests this week on "press here." good morning, everyone, i'm scott mcgrew. it was "press here" contributor fahud monju who helped me understand what i think about this -- uber lets you feel like the boss. a car rushes to pick you up and when it drops you off, you jump out.
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uber sells joy. what if someone did the same for airlines? you'd have to start with private jets, of course. a cessna citation or one of those new phenom 100s. and you'd have to make the price within reach. maybe a whole jet for the cost of a single first-class ticket on the airline. and you'd need a leaderment one with years of experience in -- leader. one with years of experience in the airline industry. ideally somebody like alex wilcox, co-founder of low-cost airline jetblue. alex wilcox, ceo of jet suite as noted, former co-founder of jetblue and king fisher in india. he got his start in the airline industry inest sw end esest -- making copies. we're joined, or guests from npr and "adventure beat." you're not just selling unused space on unused planes. that's an easy concept. you actually have a fleet of planes. >> yes. yeah.
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>> so you're just an airline. >> well, not just an airline. we're a private jet carrier. >> who has a fleet of airlines, airplanes which make -- which carry people which makes you an airline. >> that's right. we're the fourth largest private jet charter company in the country, in our fifth year. we've got 21 airplanes that we fly across the country. very fuel efficient. we're the low-cost populist private jet company if you like. >> people -- >> you need to further explain because i was think, well, how do you make it lower cost. >> so, basically we start with technology. the airplanes we fly are inherently more efficient. we burn about 90 gallons an hour versus 300-plus like our competitors'. we fly them more ochften. we fly more efficiently, the
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southwest idea. we've doubled the market to 1/4 of 1%. >> is the airbus 320, the really big airplane. the efficiencies come in making more people get into the airplane, not fewer. and so when you're having a four or six-person jet, it would seem that that's making things less efficient no matter how little gas you're able to burn. >> for them it's more people, for us it's more hours. we go to over 2,000 airports across north america. we were in 700 airports last year. american airlines, by contrast, flew to 79. if you want to go to 79 cities, you fly american. if you want to go to one of 2,000 places much harder to reach, you drive for seven hours or take a private airplane. >> i'm sorry -- who is mostly using the airline at this point? >> our airline -- individuals and 50/50 in terms of business and leisure. it could be a guy going to a second house in sun valley or a real estate developers take two or three people to visit malls around the country. that's where it pays.
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you know, you save three days of travel, hotel rooms, you wake up and go to sleep in your own bed. >> what kind of costs are you talking about for these flights? >> we've got a range of cost. depends on the market you're looking at. a 300-mile flight from here to l.a., $3,400. >> when i say the cost of a first-class ticket it's six times the $500, $600 times the first class ticket. you're getting an entire airplane. you could move a team of people. >> it's still expensive, but half the cost of competitors. we're efficient with respect to cost. then we also sell empty legs, you know, dirty secret about the private jet industry is about 1/3 of our flits are empty. and so unlike other competitors of ours who would laugh if you offered them $500 to take you, if you call a jet suite and say i've got $500 -- >> some are fresno to lubbock or something -- you have to really need to go one way from fresno to lubbock. or if you can get your own jet.
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>> you must have that a lot, though. if you have just 21 airplanes and you're flying to 2,000 airports, you're jumping all over the place, right? >> we're moving all the time. yeah, all over the place. between five and 20 empty legs. >> is there a long-term plan about how to get the price down even more? >> yes. the only way is to look more like an airline, am ties the cost over more seats. that's going to mean -- >> it goes back to the bigger airplane. >> yeah. does, but the thing is, what's been lost in this country now is the short-haul market, okay? southwest last month in a magazine said -- southwest flew six million more passengers in markets under 500 miles in 2001 than last year. more people are driving than flying. southwest is much bigger than they were in 2001. you know, our job is to recapture that market. if we have basically coagulated the vein of short-haul air traffic, that's bad for the country, commerce, individuals.
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less safe. we're on highways, more likely to get hurt than in an airplane. >> is your organization self-profitable? >> we are a four-year-old startup -- >> so no? >> positive. and very, very close. we expect to be there, in fact, next quarter. >> you're the fourth biggest private jet carrier, and you seem small for that. private carriers overall must be not huge businesses. how big is the overall market? >> so, the -- the market is about 1.2 million hours of hours flown, domestic u.s. per year. we only did 14,000 hours last year. that make us the fourth largest because it's such a fractured market. there are 800 operators in the business, but most only have one or two airplanes. every airport has a local fpo and manages airplanes to -- >> on a flight basis -- very good. let me ask you for a minute about your experience in the airline in general. you were with jetblue for some time. a couple of airlines -- american
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airlines recently posted record profit. i almost don't think of airlines as being businesses that make money. is it just that they're good at hedging fall? are they really just fuel company? >> no. actually, you know, southwest, you know, zoont made profit for several years -- wouldn't have made profit for several years. of the same bet against it would put you out of business. japan airlines went out of business. the money today is in fees and so much capacity has come out of the market. there's been so much consolidation with all the recent mergers. there's more price discipline and less seats available. so you're going to pay more for seats that are there. the air industry doing a better job matching compass 270 demand. unfortunately that means higher -- capacity to demand. unfortunately that means higher prices for us. >> but ancillary fees, you mean fees for checking your bag, chips and soda -- >> $200 change fees, $25 for the bag is the cheapest i've heard ever -- >> i made that up. >> right. i -- i have to say that, you
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know, we were talking about this a little earlier. flying has become largely horrific. so i fantasize about -- i've taken a private jet here and there, but how nice it is. that's why i'm like when are we going to get the cost down. will we ever return to a time when it felt nice to get on an airplane? >> that is our mission. >> if you want to fly to lubbock. >> yeah. >> for your birthday. >> yeah. no, that's our mission. i mean, the reason those six million people are driving or not going is because it's such a pain in the butt. >> right. >> to take off your shoes and do the schlep and wait in the crowds and pay $17 for a sandwich just to get 300 miles down the road when you can drive it in four hours. maybe not save time. >> is there room for the big carriers -- i mean bigger than you -- so virgin airlines, smaller carriers, jetblue, those things, where they can add in -- i just think that people aren't willing to pay the extra $20 to be treated nicely or have the tv when they go on line.
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they end up with yucky, really big post-merger carriers. >> you had. >> that's what they don't -- >> uh-huh. >> that's what they don't like. they're not willing to pay the extra $20. >> and it's the crappy airline experience no matter how much you pay. the same tsa for everybody, same wrong, congested gates for everybody, the same surly people serving you no matter whether you paid $2,000 for a first class ticket or $199 two months ago to sit in the back. >> alex, let me ask you maybe the last question here. is -- if you could recommend someone fly anywhere in the united states -- i'm not talking about the big places -- where -- where do the pilots like to fly? where's -- where would the cool, rich people go? >> well, that's an interesting question. there are many places pilots like to go of our pilots love it travel. they don't like to go to one of the 79 airports. they're not like bus drivers who do the same thing every day. in terms of most popular, they like a challenge. aspen has challenges. it's a one-way runway with --
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you know -- >> maybe i wouldn't like it. >> right. the out-of-the way places in which -- not high tech or don't have high tech in -- in hong kong anymore. the out-of-the way places that are popular, that are the places that i would want to take my private jet. >> you know, telluride is a popular destination in colorado. the mountains tend to be popular. i understand there's cheap beer in cabo. plus the overnights in cabo, as well, another popular spot. it is very much places you've never heard of before. in fact, i've been in this industry a long time. there's still new airports every day i learn about when we're going there for the first time. you know, i think every pilot will tell you their most favorite airport is one they haven't been to yet. you land for the first time, it's like unwrapping a gift and having that experience that they never had before. >> may never be rich enough to throw a dart at a map.
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thank you very much for being with us. >> thanks. "press here" will be back in a moment. map welcome back to "press:
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here." google's venture capital arm invested $100 million into a company called thumb tag that allows you to find a plumber, jazz band, or even a belly dancer on line. now you say what you want, plumbers, musicians, belly dancers, they bid for your business. when you realize the photocopied flyer, the thing with the pull tags on the bottom with the phone number is still the primary way that some small businesses generate new clients, you realize how useful that thumb tax website can be. marco recently deposited that $100 million google check. if the name sounds vaguely familiar, it's because his dad, pierre luigi, founded lodge
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particul-- lig logitech. do you get a check for $100 million -- it. >> it's ant climactic. you refresh the company's website, and it's there. >> okay. >> i asked our banker, is it going to fit? how is it like -- never saw a number like that. >> did you celebrate? >> yeah, it's a big number and all of the thing we want to invest. n. it's not an end point but a milestone. we're proud of it. >> what's shfl for people continued how it works. say i need a contractor to do work in my bathroom. how does your service help me? >> so, you come to thumb tax and would be presented -- thumb tack and would be presented questions for bathroom remodeling, you would specify changing tiles, sink, basically itemizing your
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project. this project would then be broadcast out to the contractors who serve your area, and the ones who are right for you, who are available, interested and qualified, would get introduced directly to you. for the first time, the plumbers come to you. the contractors come to you. >> it's like a dating service. i'm interested in this and this and this -- >> yeah. >> there's a match-making aspect. and that happens in sort of dating. also happens in the professionals that you need to hire. >> now the contractors are paid to be on your service s. that right? >> they're paying to get introduced to customers. so they think that they're such a good fit for you that they're willing to pay for that introduction. >> how much do they pay? >> it varies by category. so anywhere from $3 to about $20. >> what's the high-end category? >> high end are general contractors and interior design, wedding photographers. >> a customer acquisition cost for them. >> that's right. they see this as a way to grow their business. >> cheaper at times than a google ad -- >> not only cheaper, but it's
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something that works for them. what we believe is that they shouldn't have to learn how to do online marketing. they're great plumbers, they great drum teachers, they're not marketers. we send them customers. they would say your first name, details of your job, they would see is this a customer this i would serve well, am i free. if so, they would like to pay and get introduced directly to you. >> it seems like what you're doing is going to depend heavily on being able to recruit lots and lots of service providers in many local markets which is very, very fragmented across the country. >> yes. >> very hard to reach all these people. there are two companies that spring to mind that have done something similar. someone groupon, the other is yelp. you will have enormous costs to spreadond skput get into that -- spread out and get is on that. that's why you need the $100 million. how will you do that? >> that's a great question and appropriate. actually, we've been able to achieve what we have without a sales force. we now have manufacture
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professionals, active paying professionals than yelp. >> you're not going to hire a sales force? >> we may for the sort of few businesses that we can't reach in other ways. we've created something that they understand, that we don't have to push on to them. we don't need to get on the phone and sort of cram it down on to them. they get. we do buy ads and build awareness among professionals that this is a great solution for them. then it's completely self-served. and we believe it's that first solution that they've had that really just resonates and works for them. that's why we've been able to get as big as these sort of giant companies who have been at it for decades, in yelp's case, and our model's only 18 months old. >> here's my sort of -- not i don't gripe, the place where i feel like the model might not work for me. i recently did need a contractor for my bathroom. you know what i did? i have a friend who's an architect. i said, i have this job, who would you recommend. and i trust my friend. when i was in ireland, there's a company called skill pages which is trying to basically take that and put that on line. >> uh-huh.
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>> there's no social component. i don't know -- i mean, they may bid the best price. face it, when it comes to contractors, we all know, we've all had the -- here you're trusting them with my bathroom? i'm going to have to live with -- i'm going to have to live with them and my bathroom if they mess it up. >> yeah. trust is huge. that's why you would go to your architect friend in the past. it's why we work so hard to pull in all the credentials we can find, the biography of these businesses, what they've done, and also our own set of reviews. on top of that, what will come in the future is that social component such that we can layer on for you whether friends of yours have used this person or people in your neighborhood -- >> that's where yelp would be good. doesn't mean i'll get in with the plumber or he'll have the best price necessarily. but if there are 50 four and five-star reviews for the plumber, he's a good plumber. >> but is he free? does he do the type of job? is he going to come out on a saturday at 2:00 p.m. when you need him? >> you think your advantage is i have this specific -- these are my criteria, and they're able to
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say, yes, that's something -- >> absolutely. yelp is a great product. when you answer the question where can i go to get my hair cut, to eat chinese food, it's perfect. all those plays will take you. it's -- places will take ump it's not a double opt-in relationship. when you ask someone to come to you to do a job, you don't get to just pick. they have toic you, too. >> can i try -- to pick you, too. >> can i triangulate before i pick one? can i see enough information that i could look up their reviews on yelp? >> we give you everything. once we make the introduction, we pull all the reviews we have, all the reviews from yelp, the pictures the we have. basically every piece of data we get our hands on, and we present it in an easy-to-digest way. >> one of the things that's encouraging particularly to entrepreneurs watching saying i wouldn't mind getting $100 million investment from google, is you're kind of late to the game. i mean, it seems as if this was, you know, an industry that got solved -- angie's list, yelp, things we've talked about. yet, you have found some point
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here that was able to be disrupted. i'm not asking you to compare yourselves to angie's list and yelp, but the encouraging idea that there are still industries that i as a young entrepreneurs can take advantage of. >> we live in an exciting time. the fact that we get to re-imagine how an old interaction, hiring a plumber, finding a contractor, we can remake that using modern tools and the technology that we have. it's special. we're lucky to live in this time. and it's not just us. you see it in uber and a bunch of other companies. >> marco, thank you for being with us this morning. >> thanks for having me.
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welcome back to "press: here." we're here with laura seidel of npr, and dylan sweeney,
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editor-in-chief of venture beat. we've got apple ahead. i'm predicting an iphone 6. i'm going out on a him limb -- >> this is the thing about apple rumors, it reaches a point where there's such a fewery that it turns out it's true. this generally -- i've been covering them for so many years, the rumor is -- and i believe it's probably true -- that they're going to introduce two new phones, and they're going to be bigger. apple has finally moved and decided despite what steve jobs said -- steve jobs couldn't understand why you would want a bigger phone. now that we don't talk to them that much, we text -- >> that's right. imagine the day which we didn't talk on them. >> right. exactly. what -- so really what we want -- on my way here in the car, somebody else was driving, i was doing work. i thought, i would like a bigger screen right now. i'm reading things, i'm researching things. and i kuehl don't talk on the phone -- and i actually don't talk on the phone that much. when i do, i put my headset in. it makes sense that apple's doing this. maybe steve jobs didn't like that idea.
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the other thing here, there's another rumor -- i don't know if it will be now or in the future -- that's an iwatch. >> yeah. although we're pretty sure it's not going to be called iwatch. some kind of probably fitness tracking thing that ties in with this cloud service that apple has called healthkit. >> yeah. >> which will enable in hery e theory to collect health and fitness data, send it to your doctor. >> a way to find out how jennifer lawrence is feeling. >> undoubtedly that will be hacked, too. >> how did that hurt them? >> i don't think it's good at all. >> a good way to take a stand. >> did you see it yesterday -- >> the stock went down. i think what emerged is that the kind of hack that was probably used to get these celebrity photos was a back door in ieuclicloud which has been open for two years. >> the -- >> you can set up two-facauthor awe then tinicthennication, but
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authentication, but you can write in and get anything you want. that's been open for two years. there have been high-profile stories in wired, david hoague got hacked. they've done nothing in two years. i think the stock is being punished. >> i didn't realize it was that bad. i did that -- >> me either. >> i said, you know, i'm confused, and they were so friendly. and i answered some -- now in retrospect, fairly basic questions. >> it takes three minutes. >> right. particularly if you're on the internet and a present on the internet. >> the other thing, the thing is there's a problem that isn't just apple. i was talking to security experts. you know, our data is stored all over the place, right? you've got in the cloud, it's google, all of them. and all these places have keys to the data. they not of that company, these are separate companies. in the case of the celebrities -- >> third party -- >> various third parties all over have encryption keys into the data. so say celebrity information, that's worth a lot of money. right? >> yeah. by default, most phones now,
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iphones but also android, by default will back up every photo you take. you have nog and say "please don't back up my photos." you can't do it on a case-by-case basis. >> celebrities were surprised. someonehead, my goodness, i delete -- someone said, my goodness, i deleted those pictures. yeah, off the phone. it's not your fault as a consumer if you've done a reasonably good job of looking through the settings and things and things are happening behind the scenes that you don't understand. to this day, i don't understand the icloud account, may apple i.d., that's apparently different -- >> it is. >> and my itunes account. those are three different things that appear to be going -- we've had itunes for ten years now. >> yeah. >> that's an e-mail address -- >> you shouldn't have to be concerned about the difference. like apple should be able to take care of this for you. and a big part of what they promote is it's really easy. you know, just back up all your stuff to icloud, don't worry, we'll take care of it. if they're going to do, it they
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have to make security rock solid and make the settings as easy to deal with it as uploading stuff. >> apple's being punished in this instance, but it's all of these companies. >> absolutely. >> every single one of these companies that are pushing us to the cloud when we're at a moment when the security really isn't up for it. the security experts i spoke yesterday said, i would never store anything ever in the cloud. >> and if you know a lot about security, you're not going to store anything anywhere. nothing is 100% secure, right? >> i think she was saying -- she was saying in particular, i'd store it on my home computer, but i'm not going to store it in the cloud. at this point there are so many access points. >> i saw an advertisement, it was your own personal cloud at home. and it was a hard drive. and i don't think it was being ironic. i don't think they were being silly. i think they were thinking, well, this cloud thing is popular. we ought to sell this thing where it's a personal storage at
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home. >> for apple, i think this was -- now that we're coming on, you know, they're having to big event which, of course, they tonight tell us about. everybody has their ideas of what's coming. for apple i think this couldn't have happened at a worse time. and you know, it's apple, i think the other thing that will be interesting is whether or not they can really break open the wearable market. if you look at apple historically, apple is the company that -- there were mp3 players on the market when the ipod came out. apple made it simple, easy to use. there are wearables. i'm not wearing one, but i have a fit bit. there are things on the market. and many look like -- they've captured our imagination. >> i have to break in. laura, we look forward to listening to your coverage. and dylan, you're a new guest for us. we appreciate you being here. >> i'm happy to be here. thank you. >> come back again. and you come back in a moment.
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that's our show. my thanks to my guests. thank you for being part of our sunday morning.
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hello, and welcome to "comunidad del valle," i'm damian trujillo. today the legendary gabriel monzo is on, the lead guitarist. and also saving pal. this is your "comunidad del valle." ♪ nbc bay area presents "comunidad del valle" with damian trujillo. >> we begin with a san francisco latino film festival which is right around the corner. with me on "comunidad del valle" are ileana carter plays lucy in "cry now" and anthony lucero, director of a film called "east side sushi." welcome to the show. >> thank you. >> thank you. >> i want to ask you first, ileana, how big of a deal is this for you to be showcased at the san francisco latino film festival? >> i'm really excited about it for several reasons. one, like iai

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