tv Bloomberg Technology Bloomberg March 2, 2018 5:00pm-6:00pm EST
to impose tariffs on steel and aluminum absolutely unacceptable. he said it makes no sense to highlight canada or canadian steel or aluminum as a potential -- or canadian steel or aluminum on as a potential threat. the families of the 58 people killed are getting to enter $75,000 from a $31 million fund that started as a gofundme ever. the las vegas victims fund said 10 other people who are paralyzed or suffered brain damage in the deadliest mass shooting in modern u.s. history will also be paid. the ceo of delta airlines says the carrier is not taking sides in the national debate over guns. this is after georgia lawmakers to punish delta for discontinuing promotional discounts for nra members. would have directly benefited atlanta-based delta. funeral services were held in
charlotte, north carolina friday for the reverend billy graham. president and mrs. trump and vice president pence and mrs. the billymourners at graham library. he died last week at the age of 99. in new york, i am mark crumpton. this is bloomberg. ♪ emily: i am emily chang and this is "bloomberg technology." a giant cash infusion from softbank. the ceo joins us this hour. mark carney cracking down on cryptocurrency. he did not mince words on bloomberg today on holding the currency more accountable.
amazon does deeper into music with alexa playing dj. a rise in the industry that could hit $41 billion by 2030. to our lead. in the massively competitive food delivery space, doordash just got a big leg up. softbank is leading an investment in the san francisco-based company. the company is taking on bloomberg needs and a cast of other competitors. joins usceo tony xu for a first on bloomberg interview. great to have you. that is a lot of money for a start up. what do you think justifies this kind of cash? the: the investor matches size of the ambition and the opportunity. billion that $200 happens in restaurant takeout sales. 90% of the time, the customer is still placing an order with a to theall or walking in
store. our goal is to serve those customers and also go beyond restaurants emily:. how do you plan to bash go beyond restaurants. emily: to the store. our goal is to serve those customers and also go beyond how do you plan to invest it? 90%: we offer delivery from of the top 100 restaurants that offer delivery today. we plan on building there. second, we want to grow the number of cities we are in. we are in 600 cities. we want to serve over 1600 by the end of the year. and we want to double down on the platform. that allows any merchant to offer delivery. emily: talk to me about your regional distribution. what areas are you popular in? urban areas? where are people using it? the: doordash started in bay area. we found a model to work in all
sorts of cities of all shapes, geographies, smaller and larger cities. the truth of the matter is every eads 20 in any zip code times a week and we want to serve them all. the landscape is very competitive and there is a graveyard of companies that did not make it in this space. what sets your business model apart from others like uber eats? and why do you think this can be sustainable? from the beginning, we have had a merchant first approach. we have worked on serving the restaurants and integrating into their system so we can be as efficient as possible. we have proved out the model. the company became contribution margin positive which means we got our earliest markets profitable. our newer markets are achieving faster.ility even
operationalized the model -- that is when we raised the money. emily: how do you differ from uber eats? tony: we work closely with the restaurants that we serve. the differentiation comes when you look at the amount operatiod the model -- that is when we raised the money. emily: of -- the variety of restaurants that we serve. we deliver for more of the top 100 restaurant brands than all of our peers combined. emily: what is interesting about doordash is you enable restaurants to deliver food directly to you. drivethrough the doordash platform, it restaurants can offer delivery through their own websites, phone system or app. emily: there were reports that the negotiations with softbank took a long time. we have covered some of your fundraising struggles in the past. what were the sticking points to get here? tony: there were a lot of parties involved.
we raised money from softbank, gic.ia and when you talk about the size investment coming you have to take a responsible approach to have the conversations to make sure there is the need to raise that amount of money. in those dynamic conversations after all of us agreed on a shared vision on how to pursue the massive opportunity in front of us. emily: caroline hyde caught up with the ceo of vision fund in barcelona earlier this week and asked about just how softbank having this much money is impacting the investment landscape from a big picture. take a listen to what he had to say. becausealuations go up they can exit at those prices. a lot of the early investors have invested a lot. we do primary and secondary ,hares including in uber, didi
and others. there is a question about softbank having this much money is good for companies and good for other investors. what do you think? tony: i think it depends on the ambitions of the company. if you are trying to build a multi-general -- multigenerational company like will take a really long time. as part of that process, we invite different kinds of investors during different phases of the life. emily: this kind of mini -- this kind of money is catalytic for a company of your size. what is your responsibility to deliver, no pun intended and make sure it that this does get you to the next phase? tony: we have a lot of work in front of us, absolutely.
we plan to spend it with the same discipline that we have always had. it is better serving the customers on the direct platform. we will be adding more products and better serving the merchants and consumers. emily: where well doordash -- where will doordash be in two years? tony: in every city in america. we will be delivering restaurant orders and be with restaurants. emily: thank you so much for stopping by. great to have you. the maker of angry birds plunged as much as 14% in helsinki after the games -- after the experts were leaving. disappointing earnings results and a disappointing outlook was the cause. they are also shutting down the london studio and laying off the staff in that office. coming up, new york versus silicon valley.
raising its goal to hire more women to a 43% by 2019. ofen make up 38.4 percent employees as of december 2017 exceeding its goals but just slightly. the -- bridgewater raised jack dorsey for his recent commitment to make healthy conversation on twitter. you are taking and inevitably great step by making it clear that you are on a mission to have more open and thoughtful disagreement. he also offered to help in any way. the latest cornell bloomberg tech series, scarlet fu monitored a roundtable. including the managing director at first mark capital and allie wheeler, a partner at the law. i talked about the environment for women in their industry. they account for just 7% of investors in top -- in top venture firms. >> what you have seen is a
tremendous amount of capital at the later stages. a delay in things going public. and a lot of people that used to play in the later stage game come earlier. what we had was probably a few vintages that might really be awful overtime. we are in a business feedback cycle that is 10 years long. we will not know for a little while what these things are going to look at. i can say that since late 2014, 2015, we have been talking about a correction. -- there is a lot of that going around. you predicted the last 18 recessions, right? of that.a lot 2015, we have been talking
about a correction. and if you predicted it enough of that is happening. prices have been high. of that is happening. prices have been high. there is a lot of capital and a lot of awesome things are happening. the venture ecosystem is such an oddity and a lagging indicatoror of what it -- what is going on in the stock market does not affect us today. the things we are investing in are going to get squeezed and we are just trying to figure out how do we get squeezed the least. > you're looking at a smaller ecosystem been silicon valley. what is the definition of success in new york city? >> increasingly it is converging, the definition of success. even in the last year or so, new york has seen very powerful
outcomes. flatiron health fund. that is a powerful outcome for new york. it makes it really interesting. and i think, where i am excited to see new york go and the difference i see here is that silicon valley is structured to dream very big and to have a definition of success that fuels support for the irrational. and for the idea that -- i always put it this way. when facebook got the billion-dollar acquisition offer from yahoo!, if they were in new york, with they have taken it? we have seen that a little bit in new york. you are in an ecosystem with , but doesme success that prevent some companies from feeling the pressure to be the $10 billion company and to be the $100 billion company?
and that is important to have in an ecosystem not only for the financial results and the equity value results but for a lot of things. those are the companies that ecosystemlars of an that fuels talent. if you think of the percentage of innovation from silicon valley that has come out in facebook and google and paypal -- it fuels the ecosystem there and it is meaningful. i don't know if new york has had as much of that yet. i think we are heading in that direction. the first step is to have a bunch of these $1 billion or $2 billion outcomes. i am excited to see these become the pillar companies of new york. >> i think that is absolutely true. we are just starting to see the second generation of entrepreneurs here in new york held businesses and go after those big outcomes. but, it is a smaller ecosystem. aree are some things that
great about new york. a much more diverse ecosystem so you have a lot of industries here. have companies that are in insurance or in media -- they can pull from the other industries. which silicon valley does not have. i think that is why you are seeing a much more diverse workforce here than there is in silicon valley. we have more women in the tech sector. on a present basis, we probably have more women venture capitalists here. i think that is all positive. emily: that was some of the cornell bloomberg panel. suing google. alleging and antiwhite and anti-asian bias. the suit alleges that he was fired for not towing the line, rejecting white and asian male
job candidates in favor of the -- in favor of latino and african-american candidates. -- worked atbuilt google for nine years. he alleges that management deleted females and other digital records of diversity requirements. a google spokesperson says the coming will vigorously defend itself in the suit and that they higher on merit not on identity. 40ing up, google is eyeing acres of prime california real estate but local residents are protesting. we talk about whether the tech giant will win this real estate battle, next. if you like bloomberg nurse -- news and have a terminal, you can watch it on bloomberg tv go. just go to tv on your terminal. you can also contact us on twitter. check out tick-tock by bloomberg as well. the first global network streaming live on twitter.
industry hasch fueled a real estate transformation in and around san francisco in the last appeal years. soaring prices and a housing crunch have brought on a host of issues. alphabet, silken valleys biggest property owner, is hoping to purchase 40 acres in san jose. on thisn joins us now story. a lot of property here. local is a huge owner in this area and some pushback from local residents. rob: the san jose officials believe that they have gotten the downside of all of the tech development and not any of the
upside. snagged a really giant like google. they are a bedroom community. the 10th largest city in the u.s. and more people sleep there and -- sleep there than work there. they are the suburb to mountain view and cover to know and palo alto. emily: why wouldn't they want google to move in? rob: because of the concern that it will drive up property prices that much further. they are looking at a 40 acre site that the city owns. they originally were going -- were talking about attracting the oakland a's baseball team. now, it is part of a redevelopment that involves a train station there that will be expanded. they are talking about high speed rail. all kinds of things. another major problem from all of the development in silicon valley, transportation. it will be at the center of it. the concern is that the people
who have been left behind by the massive housing boom will be that much further left behind once google comes to town. the answer to that from google and the city is that they will build houses. ultimately, there will be 20,000 jobs. the city itself is talking about helping as much as 25,000 housing units. google itself will be financing or involved in building several thousand of those. 50% or 20% of them affordable. emily: google already has headquarters in san francisco, in mountain view and san jose would be further south. what is google planning to put their? put there? rob: google is the biggest property owner in the bay area. huge.in view is they have already gotten involved in plans to build
housing in mountain view as well, 10,000 units. it is kind of the next step for tech companies to respond to the by addingusing prices to supply. they brought in a lot of employees but the construction industry has not kept up. emily: and just quickly, can you compare -- obviously we know that prices are incredibly high in san francisco and silicon valley -- how does that compare to real estate prices in san jose? to say, san jose is one of the cheaper places. median home price is $1.2 million. compareor a little less than th. follow alto, it is over $3 million. $40 million -- i talked to a broker in the palo alto area and he showed me a house that was $2 million and i asked why it was so cheap and he said it was a tear down. i will purchase the property and
build something bigger. he was talking about starter homes at 2 million dollars or $3 million. san jose theoretically is cheaper. or is a very limited supply go. the city itself is stretched because in california, it is difficult to raise property taxes. emily: right. we will keep following that story. birds rob urban, thank you for thatfollow alto, it is update. the governor of the bank of england takes on cryptocurrencies. why and how he wants to end the anarchy of the -- digit -- digital currency world. this is bloomberg. ♪
eastern damascus that has faced brutal airstrikes. britain was proposed by -- and greater scrutiny and ghoutahed in the eastern region. , how can this counsel not respond? serious violations have continued on a wide scale, included repeated airstrikes on civilians. mark: the head of the human rights council said the killing is likely to amount to more crimes. the reason may deliver to her post brexit proposal and membership.. >> it is the only way to meet to ensure they
have to go under one set of approvals under one country. negotiatewere able to membership we are able to ensure we can continue to provide our technical expertise. mark: the chemical aviation agency is regulated at an eu level. the spanish government is dismissing catalan separatists with madrid saying a plant catalan government in exile would have no legal authority. leaderter catalonia's released a video message saying separatists exiled in belgium plan to create a catalan shadow government. it is a big weekend in europe for its political calendar, and two votes can set the tone of the future landscape of the european union as italy holds a national election. ellen by the anti-europe
establishment five start party seems to be the biggest risk to the euro and italian bond spreads and germany left social democratic party will vote to decide to join a grant coalition with angela merkel and her union. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪ emily: this is "bloomberg technology" and i am emily chang. has strong england
words about the need for stronger currency regulation. governor mark carney called for rules to and the anarchy he sees the crypto market. the time has come to keep the ecosystem to the same standards as a financial system, he said. currencies have failed as a form of money. he spoke to bloomberg after the speech. take a listen. >> there's three ways to establish a currency, clearly anyone who looks at your screen, the volatility of bitcoin is 10 .imes more volatile a medium of exchange, how well you can use it to buy goods, it is not that efficient. 1.5 pence to use -- the cost to pounce to use the coin
on a transaction basis. you layer on top of that the environmental costs, it is not good of doing what it is supposed to do. but, it does point the way to the future of money, and that is what is interesting. it is the glass half empty, we're not worried about it replacing the sterling or the dollar -- but it throws a cryptocurrencies through a challenge to central banks and the sisi payment systems of markets of how to reorganize those to serve markets. sitting in theof pub, clearing the price of the drinks using this technology -- how do you see it? getting rid of the middleman? >> the genius of cryptocurrencies, they are distributed and cut out the
banks, between you and i. the challenge is to move in that direction so we can instantaneously move money from my account to your account, to account -- but we are doing is reorganizing the core of the system in a way that allows the new payment provider to plug and. they could be using other technology, and we are in a willion where these psp's be able to provide the services. similarseeing innovation by banks and other places, so this is coming. that is the challenge we have to meet. what these cryptocurrencies are trying to do. they are not doing it that well, but they point the way. the thing youout are most positive about with
cryptocurrencies is getting rid of high transaction costs. if you are jpmorgan or any financial institution, you are basically saying the positive thing about this technology is a good get rid of the profits you make as a financial intermediary. is that we are saying? financialspeak the institutions, but the best they can see the direction of where the payment system is going to go in a market -- maybe more money from understanding their customers better. by providing other core banking services. payment costs are going to keep going down and the profits from this business, i would expect, to go down. the service to customers is going to improve. that is a good thing. it has always been the case of financial services that the banks innovate. this innovation, cryptocurrency,
is pushing others. this generation is very safe to say -- not the answer to the questions they are posing. emily: more thoughts on carney's comments and the crypto space, let's go to london where caroline hyde is standing by. he's asked to believe in the underlying power of technology but does it believe it is good as a cash alternative. exactly, in one way he they are not the future and not replace the pound or the dollar or that fly at currencies.- fiat why he wants to bring in regulation, particularly of the exchanges that we are talking about. he did sing the praises of blockchain technology, and he
said they are organizing what he called the genius of crypto assets, which is peer-to-peer assets. they have been working with this intermediated ledger to test out this blockchain technology at the boe. he is willing to look at the underlying tech, but perhaps not at cryptocurrencies as they stand. emily: how does the bank of england impact the rest of the world? plenty of regulators have been speaking out and you have the u.k. wanting to bring financial eyes to the financial institutions to the crypto assets, and on the other side of the pond, the united states has been doing it as well. theemeal in many ways, yet sec looking at initial coin offerings and keeping their eye
out on other key areas of the business. they are perhaps worried about exchange rate funds. other applications have come forward and they are not giving it the green light until they get clarification of consumer protections. the ftcy we have seen say we are willing to see futures contracts. but, they are looking at one of the key exchanges that is related to britain's exit and its relation to the u.s. dollar. and you have other countries, the u.s. is coming down -- mexico two days ago is going to be one presidential signing away from regulation. we have south korea clamping down, china, the biggest area of the corn transactions, they have really tightened about driving away exchanges and transactions. it open arms, japan likes
and they are legalizing it to a certain extent. that 16 exchanges to have legitimized and they want to be a cryptocurrency nation. so they are clearly welcoming it. caroline hyde so much volatility and will see if these comments will have an impact. coming up, electric cars that drive themselves to cars that drive themselves and drivers changing dramatically. what it will take to make sure the automatic future is a smooth ride. this is bloomberg. ♪
create a tool to show users if they like or share russian propaganda, but that is not enough for washington lawmakers. a bipartisan group of senators is a is because the notify each user that viewed content from a russian back page, and the tool is a passive one users have to seek out on their own. the future of automotive transportation could be at an inflection point as electric part of becoming a everyday life, and proponents for those technologies are pointing to a future that promises reduced traffic, can or omissions, and easier access to rights for all. but is that really the case? isew book says none of that the proper action from policymaker, and i will come the director of institutional studies, professor daniel -- joinsis the show
the show. exist in the would early days, but in some cases they have taken it too far. receiving end of federal investigations at this point, what is wrong with that picture? the picture is they are the first step towards this better future. it is an unnecessary step, and they opened the door of using smartphones and information technology routes to make it easier to access high-quality transportation. emily: how do you think regulators should be approaching ridesharing? daniel: i think it is a simple story and what they should be doing is encouraging and favoring pulling rights. words, uber has an offer called uber pool.
doingl need we need to be his policies to encourage it, and the good news is we are not swimming upstream. those companies are positive and supportive of that. emily: what about when it comes to self driving? further into the future, but in some cases happening now. isiel: in some cases it happening now and there are cards you can buy that will go on freeways under their own control and steering. i wouldn't advise it for very long, but it is the first step that partial automation is here. what we are aiming towards full automation, fully driverless. and it is going to happen and the market is pulling it. companies are, committed to it, and it is going to happen. emily: when is it going to happen?
i knew that answer i would be a very rich person. there will be driverless cars in two or three years, they are possibly right but it will be in limited areas. they will be geo-fenced. uber andanies like over lyft may do it, but you don't want a car that you can only drive in a small area, so for an individual purpose might be longer. i can see in three or four years in limited applications. it will be a while until it was available in a mass-market way and able to be used a larger area. emily: what do you think that tipping point will be for it to become mainstream? daniel: the tipping point is when regulators approve it. people will buy it.
the costs are coming down quickly, but as soon as it is commercialized, those costs are going to drop to medically. --will take a few years those costs are going to drop dramatically. it will take off, but there will be limited steps along the way. emily: how optimistic are you about the trump administration laid the groundwork for the pools you think needs to be in place for the future to happen? there is ahink tendency in washington with regulators and the trump administration to fast-track it. there is concerns they are doing it too fast. so there is going to be questions that states and others are going to raise, is the technology ready?
it comes down to our tolerance for crashes. you get the technology out there, the first under his crashes, there is going to be a pr disaster and that could block it. between tension supporting and nurturing innovation, and doing it in a way that is acceptable for the public arena. professor dan sterling from uc davis, thank you so much for joining us. the way we listen to music is changing thanks in part to smart speaker's and the man who wants to take amazon music to the top of the charts. this is bloomberg. ♪
cloud computing and has been expanding its cloud infrastructure across the globe as more companies pay to have their data and application remotely. costs and helpce status date with not having to rely on sites outside of the country. when it comes to the top of the music streaming charts, rising up the list and currently in third place is none other than amazon music. an industry goldman sachs expects to hit $1 billion, and amazon has a not so secret weapon. and i spoke with the comes up president to speak about how it changes the way people listen to music. >> it is a huge part of amazon music, and alexa finds itself on smart speakers and what people want to do first and foremost on
these devices is listen to music. it is a big part of our business since it launched. emily: is prime driving subscription and growth? steve: it is, and we have to teaiers. service called amazon music unlimited which is a standalone subscription that gives you access to tens of millions of songs. emily: can you give us an idea of how many people use amazon music in the world of spotify and apple music, these are big numbers? with that of growth are you seeing? steve: we are seeing exponential growth, we don't disclose numbers publicly but we can say in a short period of time amazon music has become the third-largest globally and we alone,en, just this year listening on alexa in the last two months is more than a year
before, which is also more than 2x than the year before. alexa and amazon music mixes different than any other music service which is all about mobile. emily: can you give us an idea of how much a priority music is to amazon? we know amazon is investing heavily in original content, and how does it compare to the investment into music? the investment into music has gotten substantial over the last couple of years because music is at the center of two important strategic priorities at amazon. one is amazon prime and the other is alexa, so we are the locust of those two things that makes music a huge priority. with theple is out home pot and they have made it clear that the primary case is listening to music. how big of a threat is that to
alexa and echo? steve: we have a great head start with ago devices and alexa and have multiple devices at multiple price points and the growth rate has been spectacular. we feel good about our position and it is great for customers to have more choice in the marketplace and makes us all better. emily: where do you see the growth in music listening coming from and how you see behavior changing as a result of these devices in our living rooms, kitchen, or wherever you have set up? steve: music streaming today is about smartphones, people walking around portable. and smart speakers are coming back to the home, at what we are seeing is a new group segment for music streaming coming from the home. it is reaching segments of the of theion that some other services have had trouble penetrating because maybe you don't want to listen to your smart phone all the time.
you are recently in washington dc. andy: who did you meet with what exactly are try to accomplish? steve: there is a builder has been introduced in the house, and we are supportive of that. i met with congress people to express support, it is a coalition of interested parties across the industry from music services to the songwriters and publishers, to the music labels. it needs a lot of work and is outdated. what is unique is the whole industry has gotten together and agreed on a way forward and want to see that come legislation. emily: livestreaming music at home with your device, how are people making money? you listen toime the music, the right holder is being paid. both when you listen to the song. emily: how does it apply to
legislation? steve: it will make it easy for the songwriter side to it as we have to pay. the biggest problem with songwriters is understanding who wrote the song and who has interest in that song, and this legislation will clarify that. emily: thousand amazon vice president of music. that does it for bloomberg technology, and a reminder that we livestream on twitter. chipset on weekdays. this is bloomberg. ♪
♪ david: what would you say are the greatest pleasures you have received? or what you are most proud of? >> ok. this is good. thank you. this is good. [laughter] david: well, i watch your interview shows. i know how to do some interviewing. >> i was really busy. i was into building this company. >> if all the diseases have been taken, why shouldn't i? i will take a tax. >> hello, general powell. this is ronald reagan. yes, sir. [laughter] >> and actually i think it was my husband who set the interview up, to be honest with you. david: did he get a finder's fee or anything from you? >> i am still paying that finders fee. >> no one plays a song when you walk into the room anymore. [laughter] >> laura didn't bring the coffee.