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Amazon Prime’s Ghani on New Uber Partnership · Choppin’ It Up by Bloomberg Intelligence

• 0:13
  Speaker 1: Welcome to Chopping It Up, where we chat with the
• 0:15
  Speaker 1: executives shaping the future of hospitality. I'm Mike Halen, the
• 0:19
  Speaker 1: Senior Restaurant and Food Service Analyst at Bloomberg Intelligence. Joining
• 0:23
  Speaker 1: me today is Jamil Ghani, Worldwide Vice President of Amazon Prime.
• 0:27
  Speaker 1: Jamil oversees the Prime membership program globally, which has more
• 0:31
  Speaker 1: than 200 million members. And yesterday, Amazon announced a significant
• 0:35
  Speaker 1: expansion into restaurant delivery through a new partnership with Uber Eats.
• 0:40
  Speaker 1: Prime members can now order from hundreds of thousands of
• 0:43
  Speaker 1: restaurants directly through Amazon with Uber Eats fulfilling the orders
• 0:47
  Speaker 1: and zero delivery fees on orders of $ 25 or more.
• 0:52
  Speaker 1: Thanks for doing this, Jamil.
• 0:54
  Speaker 2: Thank you, Mike. Thank you for having me. I really
• 0:55
  Speaker 2: appreciate it.
• 0:57
  Speaker 1: Sure thing. Before we get into the Uber deal, you know,
• 0:59
  Speaker 1: you've been at Amazon for almost a decade now. How
• 1:04
  Speaker 1: has what consumers expect from a Prime membership changed during
• 1:08
  Speaker 1: your tenure?
• 1:09
  Speaker 2: Well, first of all, thanks for having me on here.
• 1:11
  Speaker 2: It is remarkable how much it's changed in the 10
• 1:14
  Speaker 2: years I've been here. But I think most folks are
• 1:17
  Speaker 2: not even aware that Prime has been around for 21 years.
• 1:20
  Speaker 2: It started as this little experiment, 1 million items available
• 1:25
  Speaker 2: in two-day delivery, which is basically everything Amazon sold back
• 1:28
  Speaker 2: in 2005, CDs, books, and DVDs. And you fast forward
• 1:34
  Speaker 2: to 2011. We added video content. We added a whole
• 1:38
  Speaker 2: bunch of other entertainment content. And then you fast forward
• 1:41
  Speaker 2: to today, as you said, restaurant delivery included with Prime.
• 1:46
  Speaker 2: The way I would say the last years have changed
• 1:49
  Speaker 2: is that expectations just keep going up and up and up.
• 1:54
  Speaker 2: You take shipping. Right. Two days was miraculously fast. And
• 1:59
  Speaker 2: then in 2019, we said, that's not fast enough. Let's
• 2:01
  Speaker 2: make it one day. And we've then made it same day.
• 2:04
  Speaker 2: And then we made it in the next couple of hours.
• 2:06
  Speaker 2: And now you can get in cities around the country
• 2:08
  Speaker 2: in less than 30 minutes. You can get all the
• 2:10
  Speaker 2: everyday essentials you need every day. Right. Same thing with video,
• 2:14
  Speaker 2: whereas licensed content and original productions like Reach are one
• 2:18
  Speaker 2: of my favorite shows. Now you can watch the NBA, NASCAR, tennis, soccer, football,
• 2:24
  Speaker 2: all with your Prime membership. And so then. Restaurant delivery,
• 2:29
  Speaker 2: which I know we're going to talk about a lot,
• 2:30
  Speaker 2: it just makes sense because the thesis of Prime is, hey,
• 2:35
  Speaker 2: you have a place where you need time back, money back,
• 2:39
  Speaker 2: friction taken out of your life. Prime wants to be
• 2:41
  Speaker 2: there to deliver that in one simple membership. And so
• 2:44
  Speaker 2: I think food delivery, at least how my family of
• 2:48
  Speaker 2: five runs, is one of those indispensable services.
• 2:51
  Speaker 1: Okay, very cool. So yeah, let's get into that big news.
• 2:55
  Speaker 1: Why does restaurant delivery... you know, make so much sense
• 2:58
  Speaker 1: as a prime benefit right now?
• 3:00
  Speaker 2: Yeah. Well, like I was saying, we want prime to be,
• 3:04
  Speaker 2: you know, indispensable to modern life. We want it to
• 3:08
  Speaker 2: help you save more, help you get some time back
• 3:11
  Speaker 2: through convenience, you know, bring a little bit more joy
• 3:13
  Speaker 2: through entertainment. And what we saw is that more and
• 3:17
  Speaker 2: more eating out, eating at home, is a real thing.
• 3:22
  Speaker 2: It's a way people live their lives, right? And it
• 3:25
  Speaker 2: definitely accelerated with the pandemic. You know, you take my household.
• 3:29
  Speaker 2: I've got three daughters, 10, 6, and 2. You know,
• 3:32
  Speaker 2: we like to cook. We cook nutritious meals for them. But,
• 3:35
  Speaker 2: you know, there's a lot of times where the quickest
• 3:38
  Speaker 2: route between hangry and not hangry is delivery, right? And
• 3:44
  Speaker 2: I know there are hundreds of millions of households around
• 3:46
  Speaker 2: the world living that same reality. And so we started
• 3:51
  Speaker 2: experimenting this space, and I'm so excited to be working
• 3:55
  Speaker 2: with Uber. They've got one of the largest restaurant networks
• 3:58
  Speaker 2: in the country, global presence, like you said, hundreds of
• 4:02
  Speaker 2: thousands of restaurants. And By offering this, it complements the
• 4:08
  Speaker 2: grocery offering that we have for the times where you're
• 4:11
  Speaker 2: going to cook at home, you're going to do all
• 4:14
  Speaker 2: those things. This rounds out that offering in a space
• 4:17
  Speaker 2: where we can work with one of the best in
• 4:19
  Speaker 2: the industry and bring that all in one membership. The
• 4:24
  Speaker 2: key is like, yeah, sure, you could get access to
• 4:28
  Speaker 2: this independently, but we want Prime members to have the
• 4:31
  Speaker 2: simplest solution. And in our opinion, that simplest solution is
• 4:34
  Speaker 2: one membership that unlock the value across so many different
• 4:37
  Speaker 2: parts of your life. And food is one of those
• 4:39
  Speaker 2: places that just makes modern life happen. And so we
• 4:42
  Speaker 2: want Prime to be there. Yeah.
• 4:44
  Speaker 1: And as, you know, such a great logistics company, it
• 4:47
  Speaker 1: definitely makes sense.
• 4:49
  Speaker 2: Why Uber Eats? Yeah, they're just they're very, very good
• 4:53
  Speaker 2: at what they do. They're very, very good. Selection is expansive.
• 4:58
  Speaker 2: All of my favorite restaurants, like, you know, case in point,
• 5:01
  Speaker 2: Friday night in our household is Friday night family movie night. Right.
• 5:06
  Speaker 2: The girls look forward to it. My wife and I
• 5:07
  Speaker 2: look forward to it. It's a nice decompression after a
• 5:10
  Speaker 2: very busy week for everybody involved, all the way from
• 5:12
  Speaker 2: the two-year-old. She's got a very busy social calendar. And
• 5:15
  Speaker 2: so we always start Friday morning breakfast talking about what
• 5:19
  Speaker 2: is it that they want. The answer, inevitably, nine out
• 5:21
  Speaker 2: of 10 times is sushi. And so we have this
• 5:23
  Speaker 2: favorite sushi spot that isn't on some other services, but
• 5:28
  Speaker 2: it's on Uber Eats. And I know families and households
• 5:31
  Speaker 2: around the country are going to find their local favorites
• 5:34
  Speaker 2: and also national favorites. Wingstop, Chipotle, Starbucks, which arrived in
• 5:42
  Speaker 2: 16 minutes before you and I chatting this morning. And
• 5:47
  Speaker 2: so they've got the selection. We add to that an
• 5:50
  Speaker 2: embedded store experience in Amazon's shopping app and on Amazon.com.
• 5:56
  Speaker 2: Why does that make sense? That makes sense because Prime
• 5:59
  Speaker 2: members know that experience. They're turning to that experience. every week,
• 6:03
  Speaker 2: every day, sometimes multiple times a day to make their
• 6:06
  Speaker 2: life happen with the stuff that's, you know, coming into
• 6:08
  Speaker 2: their home, you know, to clothe their kids, stock their pantry,
• 6:12
  Speaker 2: stock their laundry room, you know, furnish their home, et cetera,
• 6:15
  Speaker 2: et cetera. And so the combination of expanded selection plus
• 6:19
  Speaker 2: a seamless shopping experience for food delivery just felt like
• 6:23
  Speaker 2: the right marriage. And, you know, it's a company equally
• 6:26
  Speaker 2: obsessed with with the customer experience. And so we've, you know,
• 6:30
  Speaker 2: we've been sympathetical from the early days of talking about
• 6:33
  Speaker 2: this opportunity.
• 6:34
  Speaker 1: Very cool. And we love we love sushi over here, too.
• 6:37
  Speaker 1: Amazon previously had a similar relationship with Grubhub. What does
• 6:41
  Speaker 1: Uber bring to the table that you weren't getting previously?
• 6:44
  Speaker 2: Yeah, we had a great relationship with with Grubhub. And
• 6:48
  Speaker 2: it was a mutual decision to go in different directions.
• 6:51
  Speaker 2: You change priorities and what have you. And so we're
• 6:54
  Speaker 2: always re-examining sort of what's the best option we can
• 6:58
  Speaker 2: bring for Prime members. With Uber, we get a more
• 7:03
  Speaker 2: robust selection. The restaurants all across the country, they serve
• 7:09
  Speaker 2: over 10,000 cities and towns. A very, very high caliber
• 7:16
  Speaker 2: ordering experience and delivery experience. And then their partnership on
• 7:22
  Speaker 2: creating the seamless on Amazon shopping experience for food delivery
• 7:26
  Speaker 2: just was a win-win for them and for us. And
• 7:29
  Speaker 2: so we were excited to partner with them. They're obviously
• 7:32
  Speaker 2: a big partner of ours at Amazon across many lines
• 7:36
  Speaker 2: of business. And so we already had a pre-existing relationship
• 7:39
  Speaker 2: to build on.
• 7:41
  Speaker 1: And why is... At this point in time, why is
• 7:46
  Speaker 1: partnering more attractive than maybe delivering it yourself, right? You
• 7:50
  Speaker 1: had the Amazon restaurants initiative in the past.
• 7:53
  Speaker 2: Yeah. I think given the thesis that I shared with
• 7:57
  Speaker 2: you that we want to be indispensable wherever we can
• 8:02
  Speaker 2: be a valuable, we can be a value to members.
• 8:05
  Speaker 2: And life needs a lot. There's a lot of moving
• 8:08
  Speaker 2: pieces in a busy household like mine or yours or
• 8:11
  Speaker 2: anybody listening today. And we certainly have focus areas. You
• 8:17
  Speaker 2: mentioned logistics. We want to have the best shopping experience
• 8:20
  Speaker 2: across selection, price, and convenience when you need to buy
• 8:24
  Speaker 2: physical goods. We want to have the best streaming service
• 8:27
  Speaker 2: that even when you don't know what you want to watch,
• 8:29
  Speaker 2: you turn to Prime Video. We're on the early part
• 8:32
  Speaker 2: of the journey, but very excited about Alexa Plus and
• 8:36
  Speaker 2: having a personal assistant that knows you and then can
• 8:39
  Speaker 2: get things done for you in your home, on the countertop,
• 8:43
  Speaker 2: on your phone. And so when you think about food delivery, yes,
• 8:46
  Speaker 2: we have operated in that space before. I think it
• 8:52
  Speaker 2: didn't have the traction that we wanted when we originally
• 8:57
  Speaker 2: operated it. And when you fast forward to that and
• 9:01
  Speaker 2: the prioritization we made then, there are folks that are really,
• 9:03
  Speaker 2: really good at it and Uber is at the top
• 9:06
  Speaker 2: of that list. And so we wanted to work with them.
• 9:08
  Speaker 2: What it does for us as a proposition is that
• 9:12
  Speaker 2: customers can count on Prime for more and they know
• 9:15
  Speaker 2: that this program that they've decided to join. See, the
• 9:20
  Speaker 2: thing is, a lot of folks lump Prime in this
• 9:23
  Speaker 2: loyalty space. It's not a loyalty scheme at all. You
• 9:27
  Speaker 2: pay a little bit more to unlock a whole bunch
• 9:29
  Speaker 2: of value. We measure how much disproportionate value your household
• 9:32
  Speaker 2: or my household gets from Prime, and we obsess about
• 9:35
  Speaker 2: adding more and more value. And so we want Prime
• 9:37
  Speaker 2: members to count on us for more and more things
• 9:40
  Speaker 2: because they're getting that disproportionate value. And then as a business,
• 9:45
  Speaker 2: it helps attract new customers that Maybe for the first time, wow,
• 9:50
  Speaker 2: like I'm spending a lot of money over there. Maybe
• 9:52
  Speaker 2: Prime is the solution for me because I get all
• 9:54
  Speaker 2: of this stuff included in one membership. And for existing members,
• 9:58
  Speaker 2: it makes Prime that much more valuable. to them. So
• 10:00
  Speaker 2: they're more likely to stick around. They're more likely to
• 10:02
  Speaker 2: consider us for other parts of their life and so
• 10:04
  Speaker 2: on and so forth. So it's good for the customer
• 10:06
  Speaker 2: because it adds yet more value. It's good for us
• 10:08
  Speaker 2: as a business because it makes Prime more appealing to
• 10:12
  Speaker 2: new members and to existing members.
• 10:15
  Speaker 1: Yeah, I've been an Amazon Prime member for quite some time,
• 10:19
  Speaker 1: but it's been especially valuable to me in the last
• 10:21
  Speaker 1: two weeks. I recently moved and, you know, there's all
• 10:25
  Speaker 1: sorts of things that you don't think about. You know,
• 10:27
  Speaker 1: this morning it was like, oh, man, I really need coasters.
• 10:29
  Speaker 2: Right.
• 10:29
  Speaker 1: So I was on Amazon Prime this morning looking at coasters.
• 10:33
  Speaker 2: That's fantastic. And hopefully we can get them to you
• 10:35
  Speaker 2: before you sit down for a tasty adult beverage tonight
• 10:39
  Speaker 2: at the end of a long work week. And you
• 10:41
  Speaker 2: can put that on your wood table like we can
• 10:43
  Speaker 2: get it to you really, really fast as well. I
• 10:45
  Speaker 2: have the same experience. I wasn't I wasn't yet at
• 10:48
  Speaker 2: Amazon over 10 years ago, but we had just had
• 10:52
  Speaker 2: our first daughter. And I remember looking to we were
• 10:56
  Speaker 2: in an apartment in Minneapolis. And I remember looking to
• 11:00
  Speaker 2: the the entryway where the pile of Amazon Prime boxes
• 11:04
  Speaker 2: were of diapers and wipes and cleaning supplies. And, you know,
• 11:09
  Speaker 2: it's starting to get the cold chill in the upper Midwest.
• 11:11
  Speaker 2: So we were going out less to store. We were
• 11:13
  Speaker 2: having things delivered. And I remember that was an aha
• 11:16
  Speaker 2: moment for me, which is like, this is just so
• 11:19
  Speaker 2: valuable to It's just so valuable. It meets like our
• 11:22
  Speaker 2: hopefully prime meets you where your life is versus the
• 11:26
  Speaker 2: other way around. And it's trying to fit to be
• 11:29
  Speaker 2: of service to you. And I think food delivery is
• 11:32
  Speaker 2: the same, whether it's a planned evening like the one
• 11:37
  Speaker 2: we have planned for Friday night here in my household
• 11:39
  Speaker 2: or the like, I just don't have the energy or whatever.
• 11:42
  Speaker 2: We don't have the groceries in the refrigerator or we
• 11:45
  Speaker 2: want to do something special. Like hopefully this new benefit
• 11:48
  Speaker 2: can serve those kinds of needs, too. Yeah.
• 11:51
  Speaker 1: I mean, our time is so valuable.
• 11:52
  Speaker 2: Right.
• 11:52
  Speaker 1: So anything that helps us save time is fantastic. So,
• 11:57
  Speaker 1: you know, Amazon is obviously known for removing friction from
• 12:01
  Speaker 1: the shopping experience. How much friction do you think still
• 12:04
  Speaker 1: exists in restaurant delivery?
• 12:06
  Speaker 2: That's a great question. I would say a couple things.
• 12:09
  Speaker 2: One is restaurant delivery, I think, is a bit different
• 12:13
  Speaker 2: than shopping in general because it's what you're consuming. So
• 12:18
  Speaker 2: it's a higher bar at that level. I think it's
• 12:22
  Speaker 2: driven by things you know and things you want to discover.
• 12:27
  Speaker 2: Everybody has a favorite restaurant. Everybody has a favorite way
• 12:31
  Speaker 2: a dish is prepared. You oftentimes know the place in
• 12:34
  Speaker 2: your neighborhood that that has that. And so what selection
• 12:37
  Speaker 2: you have really, really matters. That's why Uber made so
• 12:40
  Speaker 2: much sense for us because they've got that selection. I
• 12:43
  Speaker 2: said that before. I think the second thing is restaurant delivery.
• 12:47
  Speaker 2: At least the ordering part is absolutely about convenience. It's
• 12:51
  Speaker 2: staying in your pajamas and your fuzzy slippers. but still
• 12:54
  Speaker 2: having a great Italian dinner with a glass of wine
• 12:58
  Speaker 2: from your pantry. It's about getting your kids and giving
• 13:02
  Speaker 2: them a special experience and all that. And so that
• 13:06
  Speaker 2: shopping experience needs to be really seamless, really fast, friction-free,
• 13:10
  Speaker 2: as you said. And that, too, is where we think
• 13:15
  Speaker 2: Uber really stands out. And what we've built together in
• 13:18
  Speaker 2: the app is it's as simple as typing in Uber
• 13:22
  Speaker 2: Eats and you go right into the store and off
• 13:25
  Speaker 2: you go. Prime benefits already applied. You know, so I
• 13:29
  Speaker 2: placed my first order, obviously, yesterday. And, you know, we're
• 13:34
  Speaker 2: offering two, your first two orders, $ 20 off if you
• 13:39
  Speaker 2: order over $ 25. And so like those kinds of extra
• 13:43
  Speaker 2: values are on top of, the normal things that all
• 13:47
  Speaker 2: restaurants are offering all the time and, you know, things
• 13:50
  Speaker 2: we'll do seasonally as well. So it's, it's greater selection,
• 13:55
  Speaker 2: seamless experience and tons of value coming through because I
• 13:59
  Speaker 2: think there's this misconception that like, um, restaurant delivery can
• 14:02
  Speaker 2: be really expensive and it can be, but the whole
• 14:05
  Speaker 2: point of what we're doing with prime is you're paying
• 14:08
  Speaker 2: for prime. You're probably getting disproportionate value just from shipping
• 14:12
  Speaker 2: or just from video. This is on top of all
• 14:14
  Speaker 2: of that. Right. And so it's basically for free to you.
• 14:19
  Speaker 2: And it's a even more cost effective, low friction, very
• 14:25
  Speaker 2: fast experience. I think it's kind of a win win.
• 14:27
  Speaker 2: I hope everybody checks it out.
• 14:28
  Speaker 1: For sure. Plus, I don't have to do the dishes
• 14:30
  Speaker 1: when I'm done. That's one of my favorite parts of
• 14:33
  Speaker 1: ordering delivery.
• 14:34
  Speaker 2: Me too. With three young kids like there's there's not
• 14:37
  Speaker 2: enough time for for dishes.
• 14:39
  Speaker 1: For sure.
• 14:40
  Speaker 2: Right.
• 14:40
  Speaker 1: All right, so Prime members get $ 0 delivery fees on
• 14:44
  Speaker 1: orders of 25 or more. How did you land on
• 14:47
  Speaker 1: the $ 25 threshold and who's paying for the free delivery?
• 14:51
  Speaker 2: Yeah, so... On the $ 25, we looked at typical orders
• 14:58
  Speaker 2: that Prime members were making already. And the vast majority
• 15:02
  Speaker 2: of orders are over $ 25 as it is. The vast,
• 15:07
  Speaker 2: vast majority. And so we think it's a relatively easy
• 15:12
  Speaker 2: to accomplish bar when you're feeding yourself, feeding one other,
• 15:17
  Speaker 2: feeding five people. In my case, I'm blowing past $ 25
• 15:19
  Speaker 2: very easily. And so that's how we got there. And
• 15:23
  Speaker 2: we think it's a reasonable place to make economics that
• 15:26
  Speaker 2: work for Uber and for us. In terms of who's
• 15:29
  Speaker 2: paying for it, there's a bunch of intricacies on how
• 15:34
  Speaker 2: the deal works. I probably shouldn't go into that here,
• 15:36
  Speaker 2: but just say that we, Uber and Prime, are in
• 15:40
  Speaker 2: this together. they want, as we want, for all Prime
• 15:45
  Speaker 2: members in the U.S. to use this benefit really frequently.
• 15:49
  Speaker 2: That's an important thing to keep in mind. I sometimes
• 15:52
  Speaker 2: use the analogy in contrast of Prime is not a
• 15:56
  Speaker 2: gym membership. All due respect to gyms, but most gyms
• 16:00
  Speaker 2: will sell a lot of gym memberships on January 1st,
• 16:03
  Speaker 2: New Year, New You, and then they kind of don't
• 16:06
  Speaker 2: want you to show up because otherwise they're going to
• 16:08
  Speaker 2: be capacity-constrained. We don't run Prime that way. We don't
• 16:11
  Speaker 2: work on this concept of breakage. We offer things that
• 16:16
  Speaker 2: when the member gets more value and uses it more,
• 16:19
  Speaker 2: they're happier and more satisfied and really appreciate Prime. And
• 16:24
  Speaker 2: we're happier too. The same is true with Uber. Uber,
• 16:28
  Speaker 2: I think, I don't want to speak for them, but
• 16:29
  Speaker 2: I don't think they would want anything more than to
• 16:33
  Speaker 2: have all Prime members in the U.S. using it really frequently.
• 16:37
  Speaker 2: That would be great for them. That would be great
• 16:40
  Speaker 2: for us. But most importantly, that'd be great for customers
• 16:42
  Speaker 2: because they would be getting, you know, all that selection
• 16:45
  Speaker 2: in the Seamus shopping experience and, you know, getting great,
• 16:48
  Speaker 2: you know, spaghetti or burgers or sushi in my case. Great.
• 16:53
  Speaker 1: And so from the restaurant's perspective, you know, you kind
• 16:56
  Speaker 1: of hinted towards a split three way. But, you know,
• 16:59
  Speaker 1: does that order coming through Amazon look any different for
• 17:03
  Speaker 1: a restaurant economically than an order that would maybe be
• 17:06
  Speaker 1: placed directly through Uber Eats?
• 17:08
  Speaker 2: Nope. It flows through. Basically, the way to think about
• 17:12
  Speaker 2: it is we have created a Uber Eats store within Amazon.
• 17:18
  Speaker 2: Same selection, same pricing, same promotions, same, you know, restaurant relationship,
• 17:26
  Speaker 2: you know, all works the same. It's just the ease
• 17:29
  Speaker 2: and simplicity of no new account to set up on Uber,
• 17:34
  Speaker 2: no app to download and no payment method to add
• 17:39
  Speaker 2: because you can actually use your Amazon wallet, which Prime
• 17:42
  Speaker 2: members have. And so for Uber, that gives the opportunity
• 17:47
  Speaker 2: to put their exceptional service in front of more new customers.
• 17:52
  Speaker 2: For Prime members, it's an experience that they know and
• 17:55
  Speaker 2: they use literally every day. So it's a win-win. And
• 17:58
  Speaker 2: so I think my hope for restaurant owners, which I appreciate,
• 18:06
  Speaker 2: are disproportionately small businesses. I hope that this drives incremental
• 18:11
  Speaker 2: business for them. They get discovered. They get engaged with.
• 18:15
  Speaker 2: They allow families like mine and yours to find a
• 18:18
  Speaker 2: new favorite in their local neighborhood. For sure.
• 18:20
  Speaker 1: And, you know, some of the big issues for restaurants
• 18:24
  Speaker 1: historically with third-party delivery has been the cost of acquiring
• 18:27
  Speaker 1: the customer, who owns the data, obviously the commission rate.
• 18:31
  Speaker 1: It sounds like nothing's really going to change from the
• 18:34
  Speaker 1: restaurant side of things. You know, what would you say
• 18:37
  Speaker 1: to restaurant operators today? who are looking at this and
• 18:40
  Speaker 1: wonder whether putting Amazon between themselves and the guests creates
• 18:44
  Speaker 1: even more distance between them and their customers?
• 18:47
  Speaker 2: Yeah, I think it's a fair question, but I would
• 18:52
  Speaker 2: say that my desire with Amazon with what we're doing
• 18:58
  Speaker 2: here with Uber for Prime members is to give more
• 19:02
  Speaker 2: value to Prime members. Prime members already have a relationship
• 19:05
  Speaker 2: with Amazon. It's a deep and broad one. I want
• 19:08
  Speaker 2: to bring that highly engaged customer base, eater base, to
• 19:14
  Speaker 2: customers Uber and through Uber to these restaurants. These restaurants,
• 19:19
  Speaker 2: I should, in success, see incremental new customers that wouldn't
• 19:26
  Speaker 2: have discovered them otherwise, and then incremental ordering as well,
• 19:29
  Speaker 2: because we're going to be doing a lot on our
• 19:31
  Speaker 2: side to make sure that our members are aware of
• 19:34
  Speaker 2: the benefit. And once they're aware of the benefit, that
• 19:36
  Speaker 2: they're reminded of the benefit. Like, you know, the $ 20
• 19:40
  Speaker 2: off on two orders is a great example of like,
• 19:43
  Speaker 2: Let's bring you in because our interests are we we
• 19:46
  Speaker 2: don't want prime members that are dormant. We don't want
• 19:49
  Speaker 2: prime members. that don't use their value. Like that's not,
• 19:52
  Speaker 2: that's not, The point is highly engaged customers. And the
• 19:57
  Speaker 2: same applies to Uber and the restaurants that Uber has
• 20:02
  Speaker 2: on their service.
• 20:03
  Speaker 1: And Amazon has a tremendous amount of information on what
• 20:06
  Speaker 1: its customers buy, right? So how much opportunity is there
• 20:09
  Speaker 1: to personalize restaurant discovery based on what Amazon already knows
• 20:14
  Speaker 1: about us Prime members?
• 20:16
  Speaker 2: Yeah, we are not sharing information today with like Prime
• 20:21
  Speaker 2: member information is Prime members information. I can't comment on
• 20:25
  Speaker 2: what we might do in the future to make the
• 20:26
  Speaker 2: customer experience better. But the way to think about it
• 20:31
  Speaker 2: today is that we are opening up an Uber Eats
• 20:37
  Speaker 2: store within Amazon. And that experience will get better as
• 20:42
  Speaker 2: you use it. So, you know, what you purchased again
• 20:45
  Speaker 2: will be there. Your order history will be there and
• 20:47
  Speaker 2: what have you. But we are not sharing information from
• 20:52
  Speaker 2: other parts of Prime with Uber. Gotcha.
• 20:57
  Speaker 1: Yeah, I just it made me think back to the
• 21:00
  Speaker 1: Target incident where they knew a woman was pregnant before
• 21:04
  Speaker 1: she did.
• 21:04
  Speaker 2: Right.
• 21:05
  Speaker 1: Based on our purchase history.
• 21:07
  Speaker 2: Right.
• 21:07
  Speaker 1: And so if you notice that. you know, certain things
• 21:09
  Speaker 1: I put, I put in my cart or buy at
• 21:11
  Speaker 1: Whole Foods, right. It might be able to help make,
• 21:14
  Speaker 1: eventually make, um, recommendations.
• 21:16
  Speaker 2: A little better. Right. Yeah. Just to be clear, like
• 21:18
  Speaker 2: we would, we would, we would be very careful about
• 21:22
  Speaker 2: anything like that. And, um, we would certainly focus on
• 21:27
  Speaker 2: making sure that it makes the customer experience better. Like today,
• 21:30
  Speaker 2: you know, it's a, it's a bit of a sequestered experience, uh,
• 21:35
  Speaker 2: to order food delivery. Gotcha. Yeah.
• 21:37
  Speaker 1: When you look at five years, how significant do you
• 21:39
  Speaker 1: think restaurant and food delivery can become within Prime?
• 21:42
  Speaker 2: Well, I think that given the growth in the industry
• 21:47
  Speaker 2: and the space, it's only going to become more and
• 21:50
  Speaker 2: more important over time. We have the blessing for Prime
• 21:54
  Speaker 2: members of. Lots of things that we offer them. Shipping
• 21:58
  Speaker 2: is going to keep getting better. You know, like last quarter,
• 22:01
  Speaker 2: we shipped 1.5 billion items same day or overnight, right?
• 22:06
  Speaker 2: A new record. Prime Video is having a fantastic launch
• 22:12
  Speaker 2: to the latest season of Thursday Night Football. I don't
• 22:15
  Speaker 2: know if you watched the game last night. It was fantastic.
• 22:17
  Speaker 2: And on and on and on. And so restaurant delivery
• 22:20
  Speaker 2: is another pillar in that. And so it is fantastic.
• 22:24
  Speaker 2: It's extending the breadth of it. So I think it
• 22:27
  Speaker 2: I think it matters. Like our members are telling us
• 22:30
  Speaker 2: that they really enjoy it, both in the redemption of
• 22:32
  Speaker 2: the the the benefit signing up and then also the
• 22:38
  Speaker 2: the order volume. So I think it I think it
• 22:41
  Speaker 2: will be material and I hope it will be a
• 22:44
  Speaker 2: tailwind to restaurateurs and obviously a tailwind to our partner, Uber.
• 22:50
  Speaker 1: Yeah, and I did miss the game last night. My
• 22:52
  Speaker 1: son's away at college, so currently I'm here with two women,
• 22:56
  Speaker 1: and I was outvoted on the Thursday night football, you know?
• 23:01
  Speaker 2: Got it. I got it.
• 23:02
  Speaker 1: I'm sure you can relate.
• 23:04
  Speaker 2: I do. I lose every argument. I'm massively outnumbered.
• 23:08
  Speaker 1: That's funny, man.
• 23:10
  Speaker 2: All right, cool.
• 23:11
  Speaker 1: So I didn't get a chance to order yet, but
• 23:13
  Speaker 1: I did get to mess around on the app and
• 23:16
  Speaker 1: on the website. You know, when is Uber Eats going
• 23:20
  Speaker 1: to get better real estate on the app, right? Like,
• 23:23
  Speaker 1: it's not hard to find. I was able to search
• 23:25
  Speaker 1: Uber Eats and kind of get it. But is there
• 23:28
  Speaker 1: any plans to change where it shows up?
• 23:31
  Speaker 2: Yeah, so we have multiple ingresses to the Uber Eats store.
• 23:39
  Speaker 2: I think the simplest, the one I've used now three
• 23:41
  Speaker 2: times since yesterday, is just searching for it. And that's
• 23:44
  Speaker 2: candidly the Amazon experience is search plays a really important part.
• 23:50
  Speaker 2: There are other ingresses through the Prime experience. So when
• 23:54
  Speaker 2: you go to check out everything in your Prime benefits,
• 23:56
  Speaker 2: you can ingress there. And we'll be testing into other things.
• 23:59
  Speaker 2: If it's valuable to members, we'll add it in. I
• 24:03
  Speaker 2: think the important thing to remember with the Amazon store
• 24:06
  Speaker 2: is that it's highly dynamic. So it's personalized and it's
• 24:09
  Speaker 2: always changing because we have a lot to communicate to customers.
• 24:12
  Speaker 2: So right now, the top of the page has got
• 24:17
  Speaker 2: a beautiful short video of a cheeseburger that I I
• 24:21
  Speaker 2: actually ordered yesterday because it was just so good. That's
• 24:24
  Speaker 2: what I had for lunch. But so they'll be rotating.
• 24:27
  Speaker 2: And then when we do these these limited time offers
• 24:30
  Speaker 2: or promotions, we will also feature them prominently. But search
• 24:36
  Speaker 2: is a nice sort of like stable go to will
• 24:39
  Speaker 2: always be there, makes it really easy to drop in.
• 24:41
  Speaker 2: We see there's a good amount of seasonality as well
• 24:46
  Speaker 2: with restaurant delivery. Like, we're going into one of the
• 24:49
  Speaker 2: seasons where, yes, people are cooking a lot for these
• 24:52
  Speaker 2: signature meals in the U.S. and around the world, but
• 24:56
  Speaker 2: they're also– busy, right? Like wrapping gifts and running to
• 25:00
  Speaker 2: the shop and, you know, going, you know, into end
• 25:03
  Speaker 2: of year performances for their kids and picking kids up
• 25:05
  Speaker 2: from college and all that stuff. So restaurant developer spikes.
• 25:09
  Speaker 2: We've had some notable examples with partners. Like we did
• 25:12
  Speaker 2: a big limited time offer with McDonald's on chicken nuggets.
• 25:17
  Speaker 2: We did one during prime day this year with little Caesars,
• 25:20
  Speaker 2: which surpassed all expectations. And so these, These sort of
• 25:24
  Speaker 2: like short burst things will also get more prominence on
• 25:28
  Speaker 2: the store to your original questions. So some stable places
• 25:32
  Speaker 2: like search will be adding other ingresses. And then also
• 25:35
  Speaker 2: you'll see sort of when there's new news to broadcast about,
• 25:39
  Speaker 2: we'll also be broadcasting that.
• 25:41
  Speaker 1: All right, great. And so it sounds like a cheeseburger
• 25:43
  Speaker 1: was your first order. It sounds like it might be
• 25:45
  Speaker 1: sushi tonight. Anything else you're excited to order?
• 25:48
  Speaker 2: Well, I already am enjoying my coffee that arrived as well.
• 25:52
  Speaker 2: So that was wonderful. I will not escape the weekend, Mike,
• 25:56
  Speaker 2: with at least one or two other orders because inevitably
• 26:00
  Speaker 2: lacrosse practice and, you know, math camp and swimming and...
• 26:06
  Speaker 2: two working parents. It's the reality of life. And I'm
• 26:09
  Speaker 2: super proud that the Prime team was able to work
• 26:12
  Speaker 2: with Uber to, you know, bring all of the selection
• 26:16
  Speaker 2: and this shopping experience together and launch it yesterday. I
• 26:19
  Speaker 2: think it would be great going into the holidays in particular,
• 26:22
  Speaker 2: like something people can count on.
• 26:24
  Speaker 1: Yeah, that's great. And, you know, to your point, it's
• 26:26
  Speaker 1: tough when, you know, you're outnumbered by your kids and
• 26:30
  Speaker 1: you're trying to run that zone defense, man. You know,
• 26:32
  Speaker 1: my sister has three. She gets a lot of help
• 26:34
  Speaker 1: from my parents.
• 26:35
  Speaker 2: Yeah, it is my, uh, uh, it is, it's reality.
• 26:40
  Speaker 2: It's just like my modern life demands certain things. And, uh,
• 26:45
  Speaker 2: we want prime to be one of those things that
• 26:47
  Speaker 2: just helps it makes it easier. So you can focus
• 26:49
  Speaker 2: on the real stuff. Like the fact that we don't
• 26:50
  Speaker 2: have to come home Friday night after, you know, five
• 26:53
  Speaker 2: days of, of, you know, very busy, busy work lives,
• 26:57
  Speaker 2: and then worry about like, what are we cooking tonight?
• 27:00
  Speaker 2: We could just sort of like turn on a movie
• 27:01
  Speaker 2: that everybody wants to watch and The food arrives as promised,
• 27:05
  Speaker 2: and then we can enjoy it together. It just lets
• 27:07
  Speaker 2: us focus on that stuff, the time together versus things.
• 27:11
  Speaker 2: I'm half Cuban, half Pakistani. I love cooking, and I
• 27:14
  Speaker 2: like to eat. But like right now with us two,
• 27:17
  Speaker 2: six and 10 year old, like we're doing a lot
• 27:20
  Speaker 2: less cooking than maybe we were when it was just
• 27:23
  Speaker 2: my wife and I or we had one kid. And so,
• 27:25
  Speaker 2: you know, Uber Eats is going to be a it's
• 27:27
  Speaker 2: going to be a lot of value. I'm getting from
• 27:29
  Speaker 2: this podcast that like I probably launch benefits that help
• 27:32
  Speaker 2: my family. Like I realize I'm admitting to you that
• 27:35
  Speaker 2: like if it's helpful to me, maybe it's helpful to
• 27:37
  Speaker 2: other people. But in all seriousness, I hope it's I
• 27:40
  Speaker 2: hope it's helpful to millions of households across the U.S.
• 27:43
  Speaker 1: Yeah, I think it's going to be. Well, Jamil, this
• 27:45
  Speaker 1: was great, man. Thanks for doing it.
• 27:47
  Speaker 2: Oh, my pleasure. It's nice meeting you and nice chatting
• 27:50
  Speaker 2: about this. I appreciate it. You got it.
• 27:52
  Speaker 1: And I want to thank the audience for checking in.
• 27:55
  Speaker 1: Check back soon for another interview on Chopping It Up.