David Rosenthal: evaluation

Transcript context

…David, it's like, I think we touched a little bit earlier on it but the reason that they have long-term defensibility I think is related to that whatever the second person was willing to pay auction and extrapolated out real far, it looks like everybody is getting a good deal. It’s a continued feeling that me as a customer or as a searcher, when I go to search on Google, yeah there’s a bunch of ads but it’s either they’re relevant, they’re most of the time relevant or other times I can very quickly get to the organic search, like I feel like there’s a free service out there that’s really good where I’m getting a good deal. And many times as an advertiser – and Brian, you can really probably shed some more light on this – I’d give money to Google and I get more value out of it. Like I feel like I'm getting a good deal. And over and over again, I think that these enduring companies are made when everybody in the ecosystem looks at it like hey, this is not a zero-sum game thing here, like everybody’s doing well by this thing existing. I think that's a great point. If you think about, just to jump in real quick and I’m curious, Brian, your thought on as an advertiser in Google, but Amazon works the same way, right? Like as a consumer, you’re like, “Yeah, I’m getting a great deal here. ” I’m getting better price, more selection, more convenience. And as a seller on the marketplace, I think you also feel like you’re probably getting a pretty good deal in terms of the volume you’re going to be able to sell versus anywhere else. Versus you’d look at something like Uber, and Uber certainly still has potential to be an incredible company and a dominant platform. However, I think there’s a hole on the driver side right now. I don’t feel like drivers on Uber feel like they’re getting a great deal. Yeah. My closing point and then Brian, let me hear your thoughts. This always comes down to the network effect, the flywheel, the ecosystem. They refer to slightly different things but when you bucket them altogether, it really comes down to the engine for continuing to grow those things is incentive alignment and for everybody on each side to – I keep saying it but feel like they’re getting a good deal, it being in their own personal selfish incentive to continue to pour resources and time and effort into that platform, and Google definitely had that going on here.…

Stored transcript either side of the excerpt. The highlighted words are the published quote; the surrounding text is unedited source, never generated.