Gerstner says Uber's rideshare margins went from negative 20% to over 30% in six quarters.
“I think their segment EBITDA margins in January and February for rideshare were over 30%. I believe six quarters earlier, they were negative 20%.”
Gerstner says Uber's rideshare EBITDA margins went from negative 20% to over 30% in six quarters.
“Uber just reported their quarterly reports and I think their segment EBITDA margins in January and February for rideshare were over 30%. I believe six quarters earlier, they were negative 20%.”
Gerstner says AI is creating massive bottom-line opportunities as companies like Uber continue reducing headcount.
“The re you know, and Dara told you yesterday, quarter over quarter we've actually reduced head count again. Right. We have this massive bottom line opportunity in all these businesses because of AI.”
Gerstner calculates AI answers cost 10x more than traditional search: 4 cents versus 0.3 cents per query.
“Now, what does it cost to do that for $7.50 tokens today? And of course, this will go down over time, but it's 10x more, right? It's 4¢ per query.”
Gerstner reports major tech CEO plans 50% revenue growth with 10-20% personnel cost reduction over three years via AI.
“And he said, over the course of the next three years, we'll grow our top line 50%, and we'll reduce our personnel costs by 10 to 20%.”
Gerstner praises Jassy's efficiency focus at Amazon retail, expects margin expansion as investment thesis.
“Why are we in Amazon? Because we think the retail businesses margins are gonna go up. Jassy has absolutely found religion.”