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00:00Scott I want to start off by talking about a little bit of money to kick off this Monday because we did get an exit from post mates not the public exit that perhaps it might have wanted it once upon a time for. But it's being brought up by Uber. How does it help the food delivery part of the business for Uber . Yeah. Thanks a lot Caroline. Good being with you. So look this is a deal that I think people were possibly thinking about . We saw some consolidation in this category announced relatively recently when Jesse Takeaway Dot.com announced its pending purchase of GrubHub. There was chatter that Hoover was also interested in GrubHub. So I think a lot of people were probably thinking that Hoover was looking to make a move. And when you look at overreach. You know according to data from second measure at least as of May they had a little bit over 20 percent share in the U.S. post meets had 8 percent. So that would essentially get them to the clear number two business in the category behind only door dash. And it would put them ahead relatively clearly of GrubHub which obviously is being bought by primarily European and Canadian competitor . Yeah. Talk to us about what's interesting is that the perhaps isn't going to be quite so much of a concern about the regulatory side of the equation now that it's not going for grab public ISE post mates instead. But what do you make of it in terms of the focus now on food for you about Visa V delivery . Post meats made its mark by being at general a delivery service . It was doing pharmaceuticals in they liked but at the moment we've seen Uber ready to try to scale back what it's doing . It's really focusing on food and transport rather than being all things to all people. What do you expect in terms of where it takes post mates going forward . Yeah I think it's an interesting point because at the least I think Hoover probably has been pretty pleased at this point that it has a more diversified business than perhaps other more let's say focused wide hailing and ride sharing type companies. You know and even though I think it's fair to say that Rides has been kind of the dominant segment within Uber for some time. I think that with the exposure to Uber treats and further investing in that category I think it's an indication that Hoover is serious about you know doing much more than simply moving people from place to place. Obviously they've taken it from people to food. And then with post mates there there's the possibility of you know even more than that. And so I see them acknowledging the potential there. It is going to be interesting how that plays out because one of the things that I think was noteworthy about the announcement this morning about the proposed combination was I think within a year two hundred million dollars in expected cost synergies. And so there's clearly some overlap and some opportunities there. But I think Hoover's diversified business model has proven appealing for some investors for sure. It's interesting that they are saying about those synergies given that they're going to actually keep pace as a pretty separate part of the business. The management team is going to be staying on. So interesting how they achieve that sort of underlying efficiency. I'm also interested in how those will suddenly the public markets liked it but basically made back that it spending in terms of market capitalization from the days trading today. I mean Uber has been an interesting story if you look at just the market cap. About a year ago I think they got to around 75 billion dollars in market cap. And then you know as the Krona virus was really having its most significant initial impact in say mid-March when lockdown started to happen around the country . The market capitalization got to around 25 billion. I think today as we have this conversation they're close to 55 billion . So clearly there's been some fluctuation but the recovery perhaps reflects that more diversified business model and the exposure with Greece which you know look based on what we're hearing is something where there is momentum there is consolidation in the category which tends to be a positive for existing players less competition perhaps more pricing power maybe better margins down the road. And those are all things I think that that investors are looking for. Cool 56 billion market cap for Uber today . But it was a story of increasing market capitalizations across the board really for a U.S. investor right now. And the NASDAQ on a new record high climbing two point two percent today. What do you make Scott of the valuations that we see the domination of technology with Amazon above 3000 Tesla. I mean for 40 percent increase over the last five days. Are you comfortable these sorts of valuations . Well I can tell you that third bridge we do not focus on valuation as a primary aspect to what we do day to day. What we do is we talk with industry experts and C-level executives about the world and what's going on in every day to try to understand the big themes and trends as well as the companies that are kind of driving investment decisions and success. And clearly one of the big themes is how some of these companies are really captured people's imaginations. And I think one of the reasons for that is this notion of digital transformation and the fact that as Satya Nadella of Microsoft said I think during their recent quarterly results conference call. You know we've essentially according to him have seen two years of digital transformation acceleration over the course of just a couple of months. And so clearly certain companies that have been positioned in the right places are benefiting and other companies are having a much harder time. So those companies that are either selling the solutions that are enabling digital transformations or the companies that are further ahead and doing better when it comes to implementing those transformations seems to be the companies that are performing better and might be in more demand at this point .

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Uber Buying Postmates for $2.65 Billion to Expand Food Delivery

Uber Technologies Inc. agreed to buy Postmates Inc. for $2.65 billion to expand in food delivery after the coronavirus pandemic cratered demand for ride-hailing, its main business, and an earlier attempt to acquire Grubhub foundered. Scott Kessler of Third Bridge appears on "Bloomberg Technology." (Source: Bloomberg)

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