tv Worlds Apart RT June 23, 2019 6:30am-7:01am EDT
khan for a car brings you here in russia and i wonder if you sometimes. by choosing this specific marketing campaign for this market are discouraging the behavior that you would want to see in the future because i know that in france for example you are branching out into bass services as well but here in russia there is a lot of still a lot of. individual car ownership and some would say that you're also undercutting the bus services in many of the regions. and plays and the you the passenger journey essentially we create take france and russia but you know we could use in your country we are in 22 countries but that state france and russia as the the comparison here we building the same thing at the end of the day if you look at the fundamentals of core putting your neighboring drivers to share very current best interest in those scores for the same story sharing cost social benefits on the environment in both countries we are we actually becoming also
a distribution for buses in different ways so in france it was by acquiring a company from this and see if and we get. us on the road but all of the distribution on the some platform now in russia we do the same you know in russia we have like 400 bus partners. deploying the same vision and then adapting to local needs and look in specific cities and say that your enemy is an empty car and see that the economics of an empty bus see it including environmental economics is very different from an empty car see it as you try to integrate more and more modes of transportation into into a platform i'm going to privilege environmentally friendly ones. i think all of it is pretty much the same for us right. here to deploy in europe right now is your aim to see to so we could be kidding or 0 but i think it applies. a bus as much as
a car to go back to your 1st comment i mean when i often said i give you any museum we should not forget if you get interested to transport we're reaching a wash in france in germany pretty much all over the world. by cars the cars to boost used transport if you could. car pulling a what we do is actually very very tiny today so the biggest expansion for us not in the next year but in the next 510 years how do we built a better product with more trust more safety maybe a better economy contract between the passenger and the driver to convince more drivers to share very core unders seats now you mentioned that cars are still the dominant means of transportation in the bigger cities but i think that's changing and in many metropolitan areas you do see a push for public transportation and higher tariffs parking terrace for the car where do you how far do you think this quest for share the public transportation
can go and do you think people will ever in bigger cities will they ever give up car ownership and would that be good for users so i think what you describe is very true in cities when you talk about like very short distances weave in cities and clearly i think eventually you'll see less and less cars in paris you know scale in the center of the city is just a matter of time. on interest all over europe of private cars journeys between. 600 kilometers cory's stabler going up so actually the car over the last 20 years as not been replaced by trains or buses because the reason people do score between cities is because the car is the only like universal connector that gets you exactly from where you want to go to do exactly where you're going to where you want to go and that's where you always find that in most countries the western europe and russia i think it's about between 60 and 80 percent. journeys between 10600 kilometers. 10 years or something 20 years
ago the 1st victims of blah blah are expansion they usually bus lanes especially. once and i mentioned before that last year you made an interesting it position. company is that something that. other countries and what is their rationale of that is very the acquisition in france is very very specific to the french and german market to the french and german market. until essentially 5 years ago when the market liberalized. if you think of it we created a car in france and germany before the bus companies existed both came along both market share. is not killing buses because that's a contradictory example where buses came into false. market we've buses. trains. you know in markets like brazil or many other markets where we operate
there were buses before we arrived. the reality is we take their market share from buses because people tend to use something else but the. proximity because they find a car but leaving from the right side of town of that does the right detour in the countryside or a small city and we tend to actually work we have bus companies and aggregate bus companies. in russia is a good example i think we had. a difficult start with bus companies because they. know there are a lot of complaints from companies about your surface on line i mean they that they don't appreciate your business care you have is changing very rapidly because we had. 2 years ago yes even we had blue suits but we would. like unfair competition of corporate ng and we would. today i think you the dialogue as . both companies and i think most of them understand that we serve
a slightly different need that we also be very strong online distribution platform and today we have over 400. that we contracted essentially distributing. so they realize the discussion we bring additional additional passengers i heard you say on many occasions that one of the biggest challenges for you in growing the markets is establishing the trust between the driver and the passenger that they can actually share that journey together that it's safe from many social studies to know that russia and ukraine the way your growth has been phenomenal the level of social trust isn't one of the lowest in europe how do you explain the success here . it's really interesting like we. rush. brazil some extent. faster with. lower cost of
marketing i think it's a mix of 2 things it was a mix of probably the transport network because it was a big countries the transport network was not as functional dysfunctional. germany were you have like a very decent train system historically. gaps where you have lots of connections and where you know it's very functional and then from a trust point of view what we've seen in both countries is. the lure you know son's at the ratings we built in the community where you put your food to and then you're right the driver and driver is going to right back the passenger was creating a lot of trust in europe we see that you need to create a big trust like i did and very few occasions an online payment. less required in markets like russia and ukraine and you know many people are asking whether the. measures the security measures the. in this markets were enough because last year
here in russia we had a case of i mentally disturbed serial killer and using your service to create fake accounts and to kill a young woman and a mother of 2 children i know that you said that you were going to introduce passport checks in response to that incident but you gave yourself 2 year is aren't 2 years i know fully a long time in this kind of business. it was horrible and we don't build the business of it. for us in safety was like the starting point. if you think of how people did he try king back in the days there was no trust whatsoever so we created this community where you need to sign up you need to create an account with your account to a mobile phone number eventually all the time and we progress into work we do checks which we did not rule out in response to an event actually because we started i did check in other countries long before and it's just
a matter of putting that in place i didn't check so hard to do by the way but you have them for example in india if i'm not mistaken and you had them from the very beginning why it was that the number concern in this. is of implementation was a challenge because i did not something we can shake and control you need like a. government database that it's not a level playing field some countries and you can do that very easy to some countries it's very complex. unfortunately in countries like russia it's been ruled out and implemented a year ago we launched. a 1000000 people so 400000 users and we're going to continue doing that the next step is also online payment online payment is going to help to work trust and reliability by the way because you have a financial commitment you will get to the core as a passenger but enables better tracking so. i think we have strong users strong.
sales moderation of the community. in the case you mention they should the person who was found because we can track back so there was no fake account. he created his accounts read the use of someone phone number we were registered in a different name so in a way it was if they work out something yes you know something we been able to track and that's why you were sound of the wise you would not be found but the new system is perfect at the end of the day and we've been improving and improving trust and safety and to some extent people that's because like you when he's good enough never have you. back after that incident because it was widely publicized on russian social media and i know from personal stories that many of my friends are now much more has it and about using your service as opposed to let's say member or taxi service. all these services where do you think. you interesting.
horrible case just before we launched in india for example. air b.n. b. you had some cases and so on i think at some point some point you cannot perfect information where you can leverage thing so what we've been. doing is how do we keep on improving and adding layers and layers without like forcing people to go through everything because of the whys so it's going to be a problem if you ask people to give passport an id and so on and never works we have to take a short break now but there will be back in just a few moments. manufacture
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welcome back to worlds apart with nicholas brosnan c.e.o. and co-founder of blah blah cart before the break we were talking about the sharp growth in this country 70 percent per year if i'm not mistaken and that naturally the tracks a lot of attention. a few years ago the russian authorities already and they were going to tax the ride sharing services and it was as far as i know after the intervention of the french finance and the economy minister that this initiative was put on hold you seem to have a pretty strong state be a for a private french company don't you know the thing is right sharing is often confused we've core pooling needs of semantic but you have ride sharing as
a right sharing which is what. those companies are doing and you have core putting which is private citizen sharing the core and sharing of cause between cities. essentially in most countries. some level of regulation and then we worked on improving the regulation to define what he's putting in and most important you would use call sharing so what is the definition of you sharing the cost of the journey you would do anyway so in europe i would say we're pretty far in the process you know washoe it's a process we started like a year and a house and 2 years ago now i would sort of any regulation. taxing the money you would essentially sharing the cost of driving your vehicle is nonsensical because there is no profit being made so it's always been our stance. in russia i think it was always understood the issues whenever we talk to regulators in russia the concept is understood i really want a regular. no defined i really want to go back to that issue but before we do that
. i have a sense that you do have a certain protection of the state authorities but. at least. some kind of environment distinguishes you from other companies and my suspicion is that because you are a major french star can i ask you straight do you think you have any backing any lobing from the french authorities when it comes to the russian regulation because there are many attempts to undermine your business here through courts through complaints through appeals to the prosecutorial office but you've always been spared as you said you are now part of a major government efforts you drive the legislation and that doesn't happen in russia way too often when business is directly involved in drafting something like that we know it's driving it obviously. doing it in several countries to you it's
pretty logical that you get involved i mean for the regulation to to make sense. the relationship with the french government we have known actually i mean we have the same relationship we have in every country right now drafting like a new. you we have to spend a lot of times explaining what we do and what we don't do should be regulated it is normal business everywhere but you're not feeling any support any particular. was. there and it's true in. countries and i think one of them is the. of what we do you know you talk about 20000000 people using the service. it's extremely hard people save money. on the undergarment dispositive externalities on the social benefits because you people meet and so on so. please feel lucky that we do something that makes. make sense of the environment we're people in cities and
save money and yes it helps you because it's common sense whenever regulations being built i think we have. in a free country that sensible and realize that it would make no sense to prevent people from doing something like that the question is more like how do you define the boundaries of was call sharing what's not go sharing which is what we would be building right now. this is not a tax a surface service therefore participants particularly the drivers should not pay taxes given that the euro branching into. in france and potentially elsewhere is that still a valid argument because for many of your interviews i get a sense that you actually want to be a platform a marketplace for both paid and paid services how do you make sure the well being seamless for your consumers who are not also being used as a means of tax evasion. sure when we do buses it's
a very different matter when we do buses in false it's a professional services. transport and in that sense it's taxed as transport company when we do corporate ing score putting you have a driver sharing a cost which means the number of passengers you can carry is limited the maximum amount you can call the passenger and then you even core putting on the supply side was providing the ride we have to complete different business is today to the point where we intervene in france it's 2 separate companies one is. just something in russia we going to work with like professional suppliers providing a bus service on the other side of the car putting service which is do you. see the difference between the 2 because i always there are people in the texas service and in russia is a pretty american service there are always people who are trying to gain and to get an unfair advantage do you always see. extremely clear.
defined you know proper regulation again. markets where it's well defined and she's very simple just like. you can collect as a driver which is defined as an example. if you make more than 45. making money you need a taxi driver as a transporter to make less than 45 miles then you sharing the cost of motoring says . every market. is very very clear let me give you one interesting example from the south of russia recently when there blah blah car customer arrange a ride within the cities and when he showed up by the meeting point he was shown into a diesel locomotive the service provider charged him a certain amount delivered this service but i think that's a beautiful example of what you would call intern mentality but. it's questionable
both from a taxation and security point of view. when you work with the governments how do you think they should throw is the question of whether their societies are ready for the kind of shared billeted want to provide. the example you give i mean i would say we also we have like your example of people who manage somehow to bypass the platform and so what we do is we should we were building a. road after that the concept of actually sharing platform where drivers share the ride. we can all that is the concept of the consumer marketplace we can all go and shake every car we built a community a ratings and we built them to see you. so in that case the president is going to say it's not a car then you can bet. you're one that bring in the additional modes of
transportation you do not limit yourself to a car we do but knowingly which is very different from you by accident. or you what you describe is more like an outlier type story out of millions of. you know foray into russia began with the acquisition of a ukrainian company arrived in the midst of 2014 of each happened to be a very difficult and traumatic year for both russia and ukraine if you had to do that all over again what do you have taken the risk years because we took. a ukrainian company or russian company time it was that was not to be. a small platform but something 3000 people. in ukraine we're actually doing or putting. in both countries so it was important for us was to prove.
you can work in. we can work in ukraine. take time machine and we were just in europe and that was the 1st time we. universal. company taking off was the proof that it was universal. pretty much everywhere we went we found some cultural changes it's pretty universal there are cars everywhere . everywhere and if you built a good product of good quality service you and our people to share the car at the terror you made the ukraine and acquisition. that the ukrainian company as far as i know was involved in some trans border rides do you still do. the rides between russia and ukraine. across borders. but back then it was no drink because it was very tiny it was.
like 30000. have only 45 i mean people go back and forth there all the time and there's actually a huge demand because according to official ukrainian figures around 3000000 ukrainians. are doing their regular bases between the 2 countries and the traditional modes of transportation are hindered because of the political situation do you think you should actually is there a business opportunity there for you or you would be more sort of politically sensible in this. country except maybe countries like belgium across borders very dire need for us to do a mystic. like he's very. close border speaking about politics there was another interesting case. involving blah blah car this time in the ukraine a when the driver and the passenger got into a heated argument about politics and the driver of
a certain point decided that the journey is still being. allowed the passenger by the side of the growth i wonder if there is any attic what kind of blah blah you're supposed to have in the cars sport of. the adventure of experience so the reason you have blah blah blah blah blah is the birth of the name black car is the mood of the time in a better car you're going to have discussions. again 99 percent of the time people tell us and we have lots of that we get. they come back and reached for his experience because. these 2 also got in. perhaps maybe. story though i mean i do a lot of a lot of. people have different opinions you know world where you live. through your social media and whatever you would be and you believe
that everybody is the same way i think it's quite refreshing actually that you take a car people have different political views different view of the world that you don't even realize exist because on your facebook feed they don't exist anymore for some reason we bring people. to meet. your destination because. you have people that. transport which is discussing and. yeah but i mean if one of them living in the other in the middle of the 4 is that it's a liability for you as well is it not. people give each other in the forest because their argument i think most of the time was i guess we would not have the. success we 20000000 people using it again that.
compliment of the service is a big plus. minus. always going to stories beauty of life and people were people disagree on stuff and discussion on stuff now you are a customer service does and people left on the road because they disagreed on the argument we get a lot more. made friends. mind. transport a new transport company does that for you we. have to leave it there i wish you all the. thank you. same place thing. time here and well it's a part. of
don't need. the scandal in the. video kind of system definition in. the news to him. sometimes shows were like a honeypot everyone believe that it was all on stable and on the reliable of russia but they thought that everyone was great over there russian businessmen wanted to do business in the west because they feared some could take everything away from them in russia which now is the opposite dave business is outside of russia was snatched less is frozen the old log now the student whine about.
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