tv Bloomberg Technology Bloomberg March 2, 2018 11:00pm-12:00am EST
♪ >> you are watching "bloomberg technology." justin trudeau is calling president trump's plan to impose u.s. tariffs on steel and aluminum absolutely unacceptable your -- absolutely unacceptable. he says it makes no sense to highlight canada or canadian steel or aluminum is a potential security threat. also condemned the move. the families of the 58 people killed are getting $275,000 from a $31 million fund that started as a gofundme effort. the las vegas victims fund said today that 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 assess the carrier isn't taking sides in the national debate over guns. is it -- that is after georgia lawmakers voted to punish dr. -- to punish delta. republicans voted to kill a jet fuel tax break that would have directly benefited the company. funeral services were held
in charlotte, north carolina friday for the reverend billy graham. the president and ms. trump, the vice president, and ms. pantence attended. in new york, i'm mark crumpton. this is bloomberg. ♪
emily: i'm emily chang and this is "bloomberg technology." sh gets a cash infusion from softbank. joins us this hour. mark carney crackdown on cryptocurrency. he didn't mince words on bloomberg today about holding the be -- the currency ecosystem mark hamill. amazon i've deeper into music with alexa playing dj. the industry could hit $41 billion by 2030. in the massively competitive food delivery space,
doordash got a big leg up. softbank's vision fund is leading an investment in the san francisco-based company. on company is taking bloomberg eats, post mates, and other competitors.
tony, great to have you. that is a lot of money for start up. what you think justifies this cash? tony: the investment matches the size of the ambition and opportunity. there's over $200 billion in take-out sales every year, and only 5% is online. 95% customers are placing orders through phone call or walking by a store. our goal at door -- is to serve those companies -- our goal at doordash is to serve those companies. will see us invested in three primary areas, building on the amount of selection of restaurants we offer. we offer delivery from 90% of the top 100 restaurants. there. on building we want to grow the number of cities we are in. finally, we will be doubling
down on the platform, which allows any merchant to offer delivery directly through their own website. mark: talk to me about your regional distribution. what areas are you more popular in? is it urban areas, the middle of the country? where people using it? tony: doordash started in the bay area. since we have grown, over 600 cities, and we found a model that works in all sorts of cities. matter is every customer in any zip code eats 20 times a week, and we want to serve them all. emily: the landscape is competitive. curious what sets you business model apart from post and why your eats think this can be a long-term, sustainable business. tony: we have always had a
merchant first approach. on servingays worked the restaurants and integrating into their system so we can be as efficient as possible. we were able to -- the model. the company became contribution margin positive, which means we got our earliest markets profitable. achievingets are profitability even faster. it was when we figured out how to operationalize the model did we go out and raise this amount of money. emily: how are you different from post mates, uber eats? tony: we work very closely with the restaurants, and the differentiation comes when you look at the amount of selections of restaurants we offer. we deliver from more of the top 100 brands than our peers combined. emily: what is interesting you also enable restaurants to deliver food directly to you without ever knowing that doordash was involved.
tony: through the platform, restaurants can offer delivery through their own website, phone app.m, or at -- or emily: there were reports negotiations with softbank took a long time. what were the sticking points to get here? tony: there were a lot of parties involved. from softbank, sequoia, and gic. we are talking about the size of investment, we have to take a responsible invest -- responsible approach. it was only 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 the vision fund in barcelona earlier this week how softbankut
having this much money is impacting the investment landscape, impacting the startup ecosystem from a big picture. take a listen to what he had to say. up.valuations go valuations go up. early investors have exited a lot. secondaryprimary and in otherncluding companies. there is a question of whether softbank having this money is actually 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 multigenerational company like doordash and you want to become the player in every city, it is going to take a long time. process, youat
invite different types of investors at different phases of a companies like. we are happy with the three investors that participated in our last round. emily: this kind of money is catalytic for a company of your site. curious what you feel is your responsibility to, no pun intended, deliver, and make sure this gets you to the next phase. tony: we have a lot of work in front of us. we plan on spending with the same discipline we have always had, and again, it is better serving the customers on the direct platform. we have tripled the geography, will be adding more products to better serve merchants. emily: where will doordash be in two years? tony: it will be in every city in north america. bothill see us deliver restaurant orders as well as beyond restaurants. --tony xu, hsu,
great to have you. the maker of angry birds plunged after it said the head of games is leaving. rovio is also shutting down its london studio and laying off the staff and that office. coming up, three female ledger capitalists explain making strides in investment diversity. check us out on the radio. this is bloomberg. ♪
in any way. bloomberg series, scarlet fu moderated a conversation of venture capitalists. they talked about the environment for women in their industry. ofy account for just 7% investors at top venture firms and the current funding cycle. >> what you've seen is a tremendous amount of capital at later stages. you have seen a delay in things going public, because they don't have to. you have seen people who used to play in the later stage name, earlier. everyone else, subsequently, the earlier. vintages that might be awful overtime, who knows. we are in a business where cycles are 10 years long. we won't know for a while what these things will look at. late 2014, early 2015, we
have been talking about how there is going to be a correction. --, there is ad lot of that going around. prices have been high. there is a lot of capital, and there is a lot of awesome things happening. the venture ecosystem is such an oddity. it is a lagging indicator. what is going on in the stock market doesn't affect us for quite some time. aboutgh you are thinking how something is going to be valued, those two things are pretty different. when you think about pricing today, you think about pricing versus three or four years ago and what you might've paid then, you are probably not going to exit.
those returns are going to get squeezed. we are trying to figure out, how do we get squeezed the least? scarlet: what is the definition of success? success isnition of converging. i think it's an important thing to happen. in the last year or so, new york has seen very powerful outcomes. it makes it interesting. were i jim excited to see new york go and the difference i see here is silicon valley is structured to drink very big. definition of success that fuels support for the irrational and for the idea that -- i put it this way, when facebook got that billion-dollar
,?quisition offer from yahoo! if they were in new york, with a have taken it? --from yahoo!, if they were in new york, would they have taken it? does that prevent some companies from feeling the pressure to be a $10 billion company and $100 million company? in ans important to have ecosystem not just for the financial result and the equity value results, but for a lot of things. those are the companies that create pillars of an ecosystem. if you think about the percent of innovation in silicon valley that is, out of google, it is reallypal, meaningful. i don't know new york has had as much of that yet. i think we are headed in that direction.
up is to have a bunch of these outcomes. i am excited to see some of these become the more pillar kinds of companies of new york. scarlet: what do you think? >> that is absolutely true. we're just starting to see the second generation of entrepreneurs in new york. it is a smaller ecosystem. there are some things that are great about new york. diverse ecosystem. you have lots of industries here were you have companies that are in insurance, thin tech, or , and they can pull from these other industries. silk on how he doesn't have that. that is why you are seeing and much more diverse workforce here than in silicon valley. we have more women in the tech sector on a percent basis, probably more women vc's here.
that is all positive. they: that was some of cornell tech at bloomberg panel. google is being sued, alleging and antiwhite and anti-asian bias. employeealleges the was fired. worked at google for nine years as a contractor and employee. he alleges that late last year management deleted emails another digital records of diversity requirements. says thespokesperson company will defend itself against the suit and that they hire on merit, not identity. coming up, google is eyeing 40 acres of california real estate. local residents are protesting.
issues for officials and tech companies. alphabet is hoping to buy 40 acres in san jose. a reporter joins us with more on this story. a lot of property here. google, a huge honor in this area, but also pushed back from residents. >> the san jose officials believe they have gotten the downside of the tech development and not any upside, because they haven't snagged a giant might google. like google. more people sleep there than work there. they are the the suburb -- they are the suburb to palo alto. emily: why wouldn't they want to google to move in? rob: because of the concern it would just drive up property prices that much further. they are looking at a 40 acre site that the city owns.
they originally were going to to attract the oakland a's baseball team. that is why the have the property. now it is part of a redevelopment that involves a train station. it is another major problem for the development, transportation. it will be at the center of it. the people is that who have been left behind by the massive housing boom will be that much further left behind after google comes to town. the answer to that from google and the city is that they will build houses, that ultimately there will be 20,000 jobs. the city is talking about building as much as 25,000 housing units. google will be financing or involved in building several thousand of those. emily: google already has
quarters -- has tech quarters in other cities. are they planning to put their? rob: they haven't said what the jobs would be. google is the biggest commercial property owner in the bay area. mountain view is huge. have already gotten involved in plans to build housing in mountain view as well. step for tech companies to respond to the soaring housing prices by adding to supply. they brought in a lot of employees, but the construction industry hasn't kept up. quickly, can you compare, obviously we know prices are high in san francisco them in silicon valley, how does that compare to the real estate prices in san jose? rob: san jose is strange to say
one of the cheaper places. the median home price is $1.2 million. in palo alto, it is over $3 million. also talked to i a broker in the palo alto area. he showed me a house that was $2 million, and i said why is it so cheap? he said nobody will live there, it is a tear down. he was talking about starter homes, $2 million to $3 million. san jose, theoretically, is cheaper. there is limited supply. the city itself is stretched, because in california it is difficult to raise property taxes. emily: we will keep following that story. rob irving, thank you so much for that update. coming up, the governor of the bank of england takes on cryptocurrency. why and how he wants to end the
♪ mark: you are watching "bloomberg technology." the united nations humans right 's counsel decided to hold what it called an urgent debate about the violence in eastern damascus. proposed byas britain, which launched an expedited push at the counsel for greater scrutiny of the bloodshed in syria's eastern region. >> i ask her colleagues here today, how can this counsel not respond? revolution,e the serious violations have continued on a wide scale, causing many deaths. rightshe head of human
council said the violence and killings in eastern syria amount to war crimes. recent may on friday delivered her post-brexit division for the u.k.. she also proposed maintaining u.k. membership with some key e.u. regulatory agencies. >> associate membership of these agencies is the army way to meet our objectives of ensuring these products only need to undergo one series of approval. these agencies have a critical role in setting and enforcing relevant rules. negotiatee able to membership, you would be evil twin sure we could continue to provide technical -- would be able to continue to provide technical expertise. mark: the spanish government is dismissing the latest efforts by catalan separatists to advance their independence move with madrid saying that a planned
catalan government in exile would have no legal authority. a video message was released, saying separatists exiled in decided to create a catalan shadow government. it is a busy week in europe on its political comment or. two votes could set the political landscape of the european union. italy holds a national election. the antiestablishment five-star party is seen as the biggest risk to the euro and italian bond spreads. germany social democratic party also announces the result of its vote whether to join a grand coalition with chancellor angela merkel enter center-right christian democratic union. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. in new york, i'm mark crumpton. this is bloomberg. ♪
emily: this is "bloomberg technology." the head of the bank of england has strong words about the need for stronger cryptocurrency regulation. calledeech, mark carney narchy."s to end the "a the ecosystemld to the same standards as the rest of the financial system. he said digital currencies have failed as a form of money. he expanded on those thoughts as he spoke to bloomberg after the speech. >> there are three ways to measure a currency. is it a store of value,
reliable, can hold a stable value? , the volatility of the coin is 10 times more volatile than sterling. important thing is that working as a medium of exchange, how well can you use it to buy goods? it is not that efficient. about two pounds to use big going on a transaction basis . you layer on top of that the envirostarm -- the environmental costs and other factors, it is not as good as doing is what it is supposed to do. it does point them -- point the way to the future of money. the glass half-empty. we are not worried about it displacing conventional currencies, but it does throw a andlenge to central banks those who oversee payment systems and markets of how to
reorganize those to better serve customers. you did zero in on the payment systems technology in your speech. that is about getting rid of the middleman of financial transactions. mark: part of the genius of cryptocurrencies is that they are distributed, they cut up a central banks, the bank's, and ideally directly. to appear between you and i. the challenge for payment systems is to move in that direction so we can instantaneously move money from my account to your account to the public -- we are reorganizing the core of the system in a way that allows new payment providers to plug-in. it could be using other technologies, and we are in a psp's will be
able to provide those types of services. this is coming. tot is the challenge we have meet. we have to meet the challenge of what these cryptocurrencies are trying to do. they are not doing it well, but the point the way to the future. >> i want to go back on the regulation. the thing you're the most positive about with cryptocurrencies is getting rid of these very high transaction costs we have from these day-to-day transactions. if you are jp morgan or any financial institution, you are saying you think the most positive thing about this technology is it can get rid of the profits that you make is a financial intermediary. is that where you are going? mark: a network to speak for individual institutions, but i think the best of the financial institutions can see the direction of where the payment systems going to go. >> making a lot less money. mark: a lot less money from
payment systems, maybe more money from understanding customers better. more money from providing other banking services. payment costs are going to keep going down. the profits from this business will go down. the service to customers is going to improve. that is a good thing. it has always been the case in financial services that the banks and nonbanks innovate. this innovation, they cut currency innovation, is pushing others. this generation of cryptocurrencies is not the answer to their questions. for more thoughts on the comments and the crypto space, let's go live to london where caroline hyde is 10 by. what do you think of the fact that he seems to believe in the underlying power of the technology but doesn't necessarily believe it is good as a cash alternative? caroline: exactly. in one way, he is quite damning,
in yourryptocurrencies wallet at the moment are not the future, not going to replace the pound or dollar. he is also worried about the volatility. sometimes to the five times the volatility we have seen in u.s. equities. wants to bring in regulation, particularly of the exchanges. he did sing the praises of the underlying blockchain technology. he is saying they are reorganizing the business of the bank of england to allow the genius of crypto assets, which is peer-to-peer transactions. they have employed ripple, they have been working with the company to test out the blockchain technology. they showed tests in 2017. he is willing to look at the underlying tech come of it perhaps of the cryptocurrencies. how do the moves of mink
of being went around the rest of the world? caroline: plenty of regulators have been speaking out. you have the u.k. wanting to eyes on tonancial crypto assets. on the other side of the pond, the u.s. as well. you have been keeping their eye out on other key areas of the business. they are perhaps worried about exchange traded funds. other applications have come forward. they are not giving it the green light until they get some clarification of consumer protection. theyve seen from the sec, said they are willing to see future contacts. that is a new area, but they are looking at the quality of exchanges.
countries, the u.s. looks to be clamping down some, taking more significant steps. we have south korea clamping down. china, one of the biggest areas of equaling transactions, is really tightening the belt, driving away exchanges, driving away transactions. japan like it. they are actually legalizing it to a certain extent. switzerland went to be a cryptocurrency nation. switzerland is trying to welcome it. emily: all right, caroline hyde. so much volatility. it will be interesting to see if these comments have an impact. coming up, from electric cars that drive themselves to cars that drive themselves. the way we drive is changing.
♪ last year, facebook said it would create a tool to show users if they liked or shared russian propaganda. groups not enough for a of washington lawmakers. a bipartisan group of senators is facebook needs to notify each user that views content on a russian backed agency or add. future of automotive transportation could be at an inflection point, as ridesharing, self driving, and electric cars are becoming a
part of everyday life. opponents of those technologies are pointing to a future that promises reduced traffic, clear emissions, and easier access to rides. is that really the case? that isok says none of guaranteed without proper action from policymakers. i would like to welcome the on the show. thank you so much for joining us. in a way, businesses like uber and lift wouldn't exist if they didn't flout the law in the early days. in some cases, they have taken it too far. uber is on the receiving end of a couple of federal investigations. what is wrong with that picture? is that theye really are the first step toward this better future. it is a necessary step. they opened the door to using smartphones and these information technology routes to make it easier to access
high-quality transportation. emily: how do you think regulators should be approaching ridesharing? dan: it's a simple story. what they should be doing is encouraging and favoring pooling rides. in other words, uber runs a service called uber pool. there are other kinds of micro transit services. ist we need to be doing getting as many people as possible onto those services. we need policies to encourage it. the good news is we are not swimming up train. -- swimming upstream. emily: what about when it comes to self driving? further into the future, but in some cases, happening now. dan: in some cases it is happening now. there are a number of cars that -- can buy that will go up
go down the freeways under their own control and during. i wouldn't advise it for very long, but it is the first step to part of -- to partial automation. we are aiming for fully driverless. this is going to happen. much in companies are committed to it. emily: when is it going to happen? dan: if i knew the answer, i would be a rich person. there are companies and people saying there will be driverless cars in two or three years. right them ofbly it would be only a limited area. in that case, companies like uber find that attractive, and they might do it. an individual, you wouldn't want an automated car that you can only use in a small area. for individual purchase, it will probably be longer, but i can see in three or four years in
very limited applications. it will be a while before it is available in a mass-market way, widely available and able to be used in a larger area. emily: what do you think the tipping point will be in order for self driving car's to become more mainstream? the technology. the tipping point is when the regulators approve it, frankly. people will buy it. the cost has to come down. commercialized, costs are going to drop dramatically. it will take a few years. regulators allow these cars to be operated driverless, it will take off, but there will be steps along the way. are youow optimistic about the trump administration laying the groundwork for the rules you need in place for the
future happened -- this future to happen? dan: there is a tendency in washington with the regulators and trump administration to fast-track it. there is some concern that they are doing it too fast. questionsoing to be that states and others will raise that is the technology really ready? it comes down to, what is our tolerance for crashes? you get the technology out there in the first time there is a few crashes there is going to be a pr disaster. that could block it. between this tension supporting a nurturing innovation but i'm doing it in a way that is acceptable -- but on doing it in a way that is acceptable for the public arena. emily: thank you so much. dan: thank you. emily: coming up, the way we
♪ emily: amazon is looking to expand its presence in latin america, beyond mexico and brazil. they are recruiting for full-time positions in argentina. amazon has been expanding its cloud infrastructure across the globe, has more copies pay to have their data and applications posted remotely. and helps reduce cost improve data speed by not having to rely on -- outside the country. , butfy holds the top spot rising off the list and currently in third list is none other than amazon music.
amazon has a not so secret weapon in its musical catalog. alexa and its line of speakers. the vicespoke with president of amazon music. >> it is a huge part of amazon music. alexa finds itself first on smart speakers. the first thing people want to do with the speakers of listen to music. it has been a big part of the service. emily: is prime driving subscription and growth? >> it is. we have two tiers of amazon music. with your prime membership, you get prime music. survey -- ais a service called amazon music unlimited, which is a standalone subscription. emily: give us an idea of how many people actually use amazon music. in the world of spotify, apple
music, these are big numbers. what kind of growth are you seeing? >> we are seeing exponential growth. we don't disclose numbers publicly, but i can say in a very short time, amazon music has become the third-largest streaming service globally. figures, we have seen this year alone in 2018 more thann alexa, two times what it was last year, which was also two times more than it was the year before. we reached the point where listening is bigger than listening -- where listening on alexa is bigger than listening on a smart phone. can you give us an idea of how much a priority music is for amazon? we know amazon is investing heavily in original video content. how does that compare to the investment in the music business? >> the investment and music has
become substantial. music finds itself at the center of two important strategic priorities for amazon. one is amazon prime, the other is alexa. we sit at the center of those two things. apple is out with the homepod. he has made it clear that the primary use case is for listening to music. how big of a threat do you think that is to alexa and ecco? start.ave a great head thatve multiple devices multiple price points, and the growth rate has been spectacular. i think we feel good about our position, and it is great to have that to have more choice in the marketplace. it makes us better. emily: where do you see the growth and music listening coming from? how do you see behavior changing as a result of these devices in our living rooms or wherever you have your setup? music streaming
today has been all about smart and people walking around portable. what is happening with smart speakers is music is coming back into the home. what we are seeing is a new growth segment for music streaming coming from the home. it is raging segments of the population that some of the other -- it is reaching segments of the population that may be some of the others have had trouble penetrating. who did you meet with and what are you trying to accomplish and how artists get paid? >> there is a bill that has been introduced the music modernization act. we are in support of that. we expressed our support. it is a coalition of interested parties across the industry. the system currently needs a lot of work. it is outdated.
what is unique is the whole industry has gotten together and agreed on a way forward. we want to see that become legislation. emily: live streaming music at home, how are people making money? listen toime you music, the rights holders are being paid. types, thewo recording and the songwriters. we pay both of those people. emily: how does that change as a result of the legislation? >> it will make it easy for us on the songwriter side to identify who it is we have to pay. with theem is songwriters is understanding who wrote the song, who has interest in that song, and this will clarify that. that was amazon's vice president of music. that does it for this edition of "bloomberg technology." we are live streaming on twitter. that is all for now. this is bloomberg. ♪