>> live from pier three in san francisco, welcome to the early edition of "bloomberg west," where we cover the global technology and media companies that are reshaping our world. i am emily chang. our focus is on innovation and technology, and the future of business. the city council's voting to severely limit the number of company cars on the roads. also covet is a hit show with a huge social media presence. we talked to the woman behind the little liars behind the season finale.

google has just unveiled a new developer platform for wearables called android where with a focus on watches to start. there for missing on lg, qualcomm, and it will hit the market sometime later this year. apple is now selling a cheaper version of the iphone 5c after sales of the lower-cost phone happen blockbuster. memoryeight gigabytes of and cause about $70 less than the 16 gig five c. available in the u.k., france, germany, and china. walmart is getting into the used videogame the is this. starting next with big customers used games. shares are down around five percent.

we have a special show for you today, cory johnson gar editor-at-large here with in the studio as well as keith rabois, celebrity what year as a venture capitalist. >> that is true. pleasure to be here. >> how is it going so far? question is going great. i've invested about 18 companies in one year. trying to keep up with the entire industry. it has been an exciting year. venture capital is white interesting copy get to meet the most ambitious people in the world, reviewing everything from the sublime to the ridiculous. trying to figure out which ones are sublime and ridiculous. >> how do you do that? wasn't even the work on a couple of names, it was keeping up on 30, which is the size of my book. 18 is a lot of companies to keep track of. >> i had 12 more i could do this year. >> i had the advantage public company, adding history, things i could dig into as a venture

capitalist. >> that is true. a lot of investment i made our similar to what i've done in my career. local, social, community payments. you know what you're looking for, and a slot easier we make an investment. when you make something that is much further way from you covered think that is difficult, and you don't regard what matters what does not. you're a ceo at square february and number of the paypal mafia, and in, slide, long-time company operators. how does that differ from what you're doing now as an investor echo you did some angel that thing on the side before becoming this bp, what is your job now? >> it is not your baby, so the psychological reward the quick you have a lot of babies. >> yes but, but they are not yours. streetpeople in the use your product that is incredibly rewarding.

all of the sacrifice is rewarded when easy normal people that you have no idea that shown involvement in the company using your products. you not really constructing a team, when you're running a avenue your leading a team within a company, your mentoring people, mixing dna. being a general manager every sports team. as an undercover most of you just editing a little bit at the senior level, and it is a different process. on the other side if you're in talks, it is awesome. it feels like reading the world book of backup media every day -- world book encyclopedia everyday. maybe 24050 people a week or doing different things from databases to rockets devoted sharing back to rockets. ismotives, engine, it incredible. guys you nearly took a job at a b&b? >> will not comment. >> i have imagined -- >> it is not news what that job might do.

sharing, a big lift, the city, council is cracking down on ridesharing apps, they're limiting the number of cars for both lift and others they can only have 150 cars of the road at any given time. tuning -- also joining us is sunil paul, the ceo of sidecar. how big a blow is this >>? -- this? >> and he gets three is on the side of this. railamerica than real people all throughout the world love these products. at the end of the day, regulators were always gave -- cave to what real people want. it is just a temporary inconvenience in my view. quick and temporary inconvenience. temporary? >> we certainly hope so. vote,hat city council

innovation lost and the taxi industry won a battle. i do think that this is a longer people really love sidecar and these other services. we will win the longer war. but you're right, it is a big setback. former taxias a driver, i wonder if the response of the taxi industry really a lobbying effort for their focused on a local shutting down of you and your competitors? >> yes. if you read the text of this legislation, it explicitly says that one of the reasons they are creating it is because of competition with the taxi industry. that is the reason, they have created a cap of 150 drivers. the only rationale for doing that is to protect the existing industry. these taxi lobbies have a lot of influence. , great underlly

this new system because now they have choices. now they do not attempted operate under the old-fashioned taxi system they also have these new systems like sidecar. >> what about the safety issues? these regulatory issues have surrounded safety. , i am auge uber user generally happy governor -- customer. there are times when my driver to not -- does not know where they're going. >> have you ever been in the taxi? routes, and tabs approved, sometimes not approved by the driver. a zero defect standard is ridiculous because all of the alternatives in the world have accident, crazy drivers, people who violate the allowed regulations. the bears and be to it people do every day. more portly, this is the

archaic. when this stuff started, it would have been ok for them to experiment and say we're going to allow for one deeper service to see what happened to see the incidence of driver error, to see the number of complaints per passenger. there are some he cities across the united states and all the world that you're using the products and services and scale, so there's no need to limit the experience in saddle -- in seattle and figure out whether consumers are going to be happy and drivers are going to be safe. >> when we know about safety statistics? i know when i was a cabdriver, i might have gone got got a one rate street the wrong way once -- a one rate street the wrong way once. it are the requirements to have a certain amount of training. it is probably necessary. >> and sarkar we are gravely proud of what has happened -- and sidecar we are incredibly

proud of what has happened. we are priorities in this category, we have accountants and insurance policies. it is unique and different that we have feedback standards. if you look at the actual safety record, not the rhetoric out in the press, but the actual safety record, people use the drivers drive as if they are driving their own car because they are. it is a racist -- save system. the writers feel like this is safer than a taxi. i know that safety argument and used a lot by the taxi industry, but these services are actually safer because you're being tracked by the phone. you have a record of the transaction, and there's the safety of the ground, other people have rated this driver. it is also safer for the driver as well.

much safer than a taxi system. but i was just in austin for sxsw. all had major problems operating it often. -- so hard tord catch a cab when he went anywhere you felt sad -- stranded. do you think is regulatory issues will go away, or do you see tech friendly cities see toy -- be very unfriendly this? >> seattle is a new development, but if you look at the other cities on the map, the friendliness and recklessness to the tech innovation and car service sharing has been incredible. mostly because at the end of the day consumers love the services. if they have an unsafe ride in the can stop using the service at any time, they are not required to use sidecar or lift or uber. versuss talk about uber

left, versus sidecar. where is lift going to fall in this? uber clearly have the upper hand right now. >> i would not agree with that. this is a discrete model that appeals to very important segment of the population. lift is a more friendly experience, you have a conversation with your driver, it is a more social experience. you also people driving their own card which creates a different community dynamic. i think there's a segment of the proposition that appreciates that rather than sitting in the back like a vip like you and me. >> the big mustache is annoying. her do get in the back of car, get a mustache out, with the rain, and all of the deals. >> the gives a sense of credibility to the company. >> the only time you hear a big mustache giving credibility. >> the wall street journal just

all three of us and found sidecar the clear winner because of rice and because eta. it is basically a ride where you get choice, something that is different than huber and lift -- then uber and lift. lift is doing very well in united take the growth rates are astounding. i do not read the wall street journal study. i know my friends choose uber and left over sidecar. >> like a me day, the place where the most brings the most supply. i would imagine that uber is making an investment. >> this is something that we could debate all day long over coffee and breakfast, it is whether that is true or false. there are some elements that are generally true, we have a working with liquidity, a winner take all endemic usually takes

hold -- dynamic usually takes hold. case, inld not be the addition, if you've different driver appeal. lift and sidecar have different degrees of flexibility among drivers, and also compared it to uber. you have these discrete elements of the markets that have -- make it difficult for a winner take all position. i suspect that there are probably two long-term that are very viable, although you could see rockets, like music city is very special market in transportation. london is a very specific market of and a very large market with the dynamics are very different. it is not clear that you have a low that global winner take all. i am biased. i believe that lift will do well. uber is clearly doing well.

>> he put you at number three. >> the bottom line is that if you want to look back at other industries, they would have often said that in the beginning it looks like it is what her take all like facebook, but it does not end up being that way. there are lots of opportunities, when it is a big market, there are ways to differentiate. the people look at sidecar and compared to the spirits of lift like the wall street journal did they will find that sidecar is a clear winner. people just have to give it a try and they will see. >> we will be watching. thank you for joining us. coming up, we're going to talk in the bit about your expertise, mobile payments, and patrick carlson will be with us in the -- collision will be with us in the studio. ♪

>> welcome back to "bloomberg west." ark restaurants for the hour is keith rabois.

right now joining in the studio is patrick collision of stripe . you are one of the big emerging players in this industry. you power lift. >> we work with both lift and sidecar. >> tell us what other companies and what forms you power. you're behind the scene, and we do not know this as consumers. >> strike is a platform for all sorts of companies. we work with side projects can work with startups, work with torture 500 companies, and we work with public companies. some of the ones that are getting attention right now are the mobile first companies and folks like lift, sidecar, and we tend to talk about them in startup land. striped works with any of these companies. >> to be clear, this is a little bit different than just the thing that happens at the

payments but -- spot. we're not talking about some brough -- crossfit. >> we're not doing batteries, we are not doing these -- visa. interactive the commerce that is not happening that should be. we look at it on a macro basis. spending happens on the internet, and it could be matured. we are in really early stages. hard to transact across borders, on the phone, or it is hard for a new market place like lift or sidecar to operate because of the him -- existing infrastructure. we have the opportunity to increase that to present. -- two percent. that is tripos focus. that is what we have been doing so far. >> you passed on stride when you first saw it -- stripe.

>> why did you pass command and come around on the other side? the real reason is i do not -- it did not appreciate how much mobile was going to explode when we first met in 2010. walking in a new opportunity with t-mobile has with lift, uber, and other things like that. it is a lot easier to build a company from scratch on a new wave. i miss the way, and nobody really saw that back then. >> what is your biggest weston as a consumer not -- question as a consumer now? ups are really

obligated think of your learning really fast, and your customers are demanding things really fast. you were balding internally very faster than the question is not -- differing mistakes is very important. them break you see open every once in a while, facebook turned over their entire team. in the first year, 2000 we had three different ceos. it is a very complicated thing to building company, and a very different market. welldoing those things sealed success. quite how to make sure you do not mess up? >> we focus on the everyday. i think they met companies are companies- payment are decked out because of the size of the market and the obvious size of the opportunity. it was the question of why did this not happen sooner? we get through the companies this, and you

have all of the challenges that any other type of technology has, but you also to contend with international expansion, dealing with regulators in other countries, pretty substantial capital requirements. i think the opportunities mean that you can change what happens in the shape of internet commerce. it is a harder market to exist in. we have been pretty lucky that the folks who of joined a so far have been up to this. >> we will continue this conversation up to the quick break. ♪

>> we're talking about mobile payments here on bloomberg west. our special guest host he's andis -- keith rabois patrick collision.

my question is about competition in this land. so competitive between stripe and square. it's a winner take all or is it different? companies, we think that a single company can kind of do everything in the space. as --this ridiculous idea. all of these new apps, these new services companies what outside, they need to accept payments. if you look at paypal, square, and google can they are focused on what rotter thanks. paypal is going to off-line commerce, where it peer-to-peer, and so forth. stripe is just this particular segment of internet commerce about expecting payments from consumers around the world. been an official. when you look at the history

committees that do really well, i think that focus has turned out to help. >> focus. >> patrick collision, thank you. we'll continue this conversation after a quick rate -- break. ♪

>> you're watching "bloomberg west." i am emily chang. our special guest host for the hour is keith rabois. paypal, two linkedin, two square, you have worked at some of the hottest tech companies ever. when you think it hot now? >> there is a lot of interesting innovation going on behind the scenes. i think it refocuses under capitalist on the next generation. in the public domain are too late. functions onarch

the web are broken on the mobile device. we're working on things like that. i think you're obviously seeing it or liberation of new apps that are powered by the address rather than the facebook friend graph. i think that will continue. secret, whatsapp, a lot of new application. it is a lot more interesting than the facebook friend graph. if you do not have a monopoly on the friend graph it does pose a real threat to facebook over the next five years. >> how big a red? -- how big ausly threat? >> pretty serious. the leadership that apple does not really obsess on this. the common sense platform could be a very significant threat to all of the social platforms that exist today. >> the battle they had early on with add and face time, they are holding a physical fiber into structure quietly so they can carry their own messages, which

i see is kind of interesting in the world of google fiber versus verizon versus con cap. comcast. >> and then they you need to layer the social layer on top. you can turn it into a perfectly competitive threat to facebook overnight. >> former paypal mafia and ceo, would you think of them buying whatsapp? >> it is hard to tell. buying of instagram was brilliant, both in price and decision. i think is one of the best businesses this is i've seen a mai tai life -- business decisions i've seen in my life. i do not know if i would have made the same decision with whatsapp, but it will take a couple of years to figure that out. >> when you think about the fact that facebook at the moment seems to be buying instead of building innovation? >> that is long-term pretty

scary. cisco has played that strategy fairly well. >> you can also argue not well that there's not been any return to investors and the owners of the company. they have taken buy back shares to keep the flow lower, but there has not been a tremendous return over the course of their last five or 10 years. >> a fair point. that is the same criticism of salesforce, there has not been a lot of innovation. i think that is true to. o. it is almost always better to grow by innovation. antigonus kerry wood neustar start depending upon acquisition too much. that said, google has had a very eclectic but insightful mix of acquisition and internal innovation. they have for just things like android which were absolutely indispensable, and youtube, but as well they have been building products. salesforce?s and >> there are some concerns about

their counting. they're not breaking down revenue with the regularity with the from other technology companies. look at google, versus facebook, wishes apple, who would be the best innovators ? apple has obviously had a legacy of an incredible innovation. i expect there's another generation or two of innovations that we cannot even imagine. willwill while fast -- wow. apple thrives were you forced the physical constraints and pushed the cutting edge of science. they want to do that given the limitations inherent. amazon has been innovating and various other dimensions that have not been predictable. it is possible for a large company to innovate excessively,

but a lot of their coronation and the people we are looking for is building things from the bottom up. >> you mentioned secret. what do you think of them? >> i think they're interesting. i think they are going to be amounts -- anonymous or pseudonymous transactions. not tiedok at the to your real-world identity. what there is a black hole of facebook that accept real world identity and people creating antimatter are starting to five. -- thrive. >> mark andreessen tweeted that

they would never need facebook or secret, because these apps can ruin lives. some things are wrong, very mean. there are certainly some very mean content and comments on the blog. building a business like secret successfully is incredibly difficult in a very sad -- and it is very hard for people to do that. basically, people's reflective reaction, as understood quality of content that can be empowered on whisper or secret. it is just your friends of friends of friends, the content is really a result of people you know. maybe you should have different friends. maybe you should edit your address book and think about your spending your time with if

you do not like the content. we add the content from strangers you're adding a lot of fire. think the content will be better and more elevated when he steered toward friends. >> a hot discussion topic lately. we're going to talk a little bit about ebay and paypal after this quick break with our special guest keys -- keith rabois. ♪

>> welcome back to "bloomberg west." ebay is in the heated battle with billionaire activist carl icahn was calling for a spin off of paypal. ebay has contested the move saying the payments and comment that commerce segment is better together. marchas called out andreessen claiming he has a on click of interest in serving on

the board as well is being a venture capitalist. here with us to discuss, keith rabois, also former executive at .aypal keith, do you think ebay and paypal are better together or apart? >> apart. part of the entire former executive team. agreek he would probably with the following point which is when you have one big customer which is what really ebay is is it tends to crowd out a lot of innovation. there's a lot of moderate demand and product services that you delegate to that very large enterprise customer. paypal over the last decade has missed all of the innovation in the square world and the striped world another that is good to continue as long as they are together. >> when you think? >> i think what needs to be done

is a sensible analysis of the worst case, the best you can buy the most probable case of a split versus keeping them together. electronic payments is going to be a hot area. struggling with the security issue. they are searching for a way to get out of the credit card mess. as we have seen recently. you need to look at that, and if the numbers say that in fact separating these companies provide the focus and provides the right p/e ratio for what electronic payments will be in the right p/e ratio for what retail auction businesses ought to be. then the numbers give us a good hint. asked that is carl icahn's notion, of higher growth businesses that would get into the market. from the board procession --

perspective, they went off from a speak while -- from hp quite a while ago, how does a board make that kind of decision? >> with guts. there are a lot of boards with mentally old people, mentally possessive people who do not like to see the size of the company reduced. dash --u think the in the ebay board is possessive? >> i'm not commented on them. >> i think the ebay board may have to consider this option seriously. thanks can legally divorced from the tactics of icon which are ridiculous. rebrand the company paypal, that would help to clarify the andoyees and priorities innovation. >> i have done that in some of the buildings already. >> of lily drop ebay name, i think that would help a lot to start. you could do that tomorrow. then subsequently conduct the

analysis of what the economics and the return of capital. how does that help you to recruit by separating the two companies? >> carl icahn has gotten very personal, and ebay is fighting back. it has gotten nasty, and quite different from carl icahn previous spars with apple and netflix. >> i think the tactics are ridiculous. i wonder why they are spending so much time and effort responding. methinks the lady. retouched too much -- to test too much -- pr otest too much. it would be very difficult for them to get any real traction for so i would just edit off on the side rather than continuing to spar. >> there is the argument that ebay, free and alone out in the world might become -- taken over by a competitor that could do damage to even.

-- ebay. that is sonse to what? if the world wants it, the shareholders are driving this thing. if in fact they can create more value short shareholders by splitting it and potentially someone looking at one part of it and saying i'm going to acquire that. so be it. that happens all the time. course.re take its >> society is the former shareholder value is important. is what analysis is for. or try to get a good handle on where these p/e ratios will go, and try to make a reasonable assessment of that. i think all of the shenanigans in terms of the quotes and things you see in the newspaper are propaganda. they draw attention to the fact that there is an issue there, carl icahn's mission is clear, to get this out in the open. >> how do you see this playing out? ebayactually think that

will make some concessions, either bringing some play pal , if you the board really wanted the energy at paypal, you could bring some talented folks like david, peter, aurelia on -- or yo elan, who have been successful at creating businesses from scratch and innovating. i do not think any of them have been asked. >> i wonder, when you look at this, there has been the issue of markppropriateness andreessen being on the board, and recruiting himself of -- recusing himself. the ebay guys make a very compelling argument that having someone like mark andreessen, with his finger somebody -- fingers are so deep in the things of silicon valley is good for the board. >> you can make the other argument and equally as well. i do not see why he would remain on the board, to tell you the

truth and given what appears to be the risk of a problem. when you get to that phase, the right thing to do is to step back and say there are other things to do where i can contribute. heh they like his expertise, is not the only human out there with that kind of talent. >> mark is a special talent. it is complicated. until recently, i was serving on a board where two public companies decided to resign from one. it causes such a conference of the next five years and my job to prove -- find the next innovative local company. i have stayed on the board of the zoom because it does not cause any potential conflicts. public or service makes that more complicated get up -- and i would have to resign.

coastal ventures partner keith rabois. thank you so much for joining us. ♪

>> welcome back to "bloomberg west." with cory chang, keithn, and he's -- rabois. it is time for the bwest byte. that is the number of wins alabama has over the last four years of college football. it is also the exact number of wins that stan ford -- the stanford cardinal has. glamorousing the have of the tide, they exact same number of wins. >> alabama has been a couple of

titles in there. quick they have a little bit of media bias that you should be familiar with. i do not think they have won an sec title in that era. >> you are the most fanatical stanford football fan out there. crazy iner sphere went and said ask him about the ball. my followersnt of are really interested in ports. -- 20% of my followers are really interested in sports. choose, stanford or alabama, jon? >> stanford. could you somehow combine football and hackathon? hackathon's or football games for competitive silica and valley stuff rank higher? >> if ever the sport, i would go

ath danford, but alabama has bigger budget for players. >> they definitely have the bigger moneyball approach. you can use data science to decide who to hire, who drew fire from and how to go place. i haven't believe, and some of my partners at coastal ventures share and discover that you can actually call plays in football better by using math than by feel.s that feel -- -- out of theke emotion playcalling during the game, and actually using for the bold approach. it was shocking to me that nobody else copied that. like as them look genius. >> you would rather have a lot of talent rather than a talent. than greatr strategy.

they make a lot of terrible decisions, especially on fourth down. the new york times started a fourth down tracker that shows and exposes the fallacies of most of the decision-making in the nfl on sports downs. it is something you'll probably see in the next decade. thehe moneyball approach, bill james a football? the ncaaback in tournament, and they have a great team. both. degrees from stanford is back in the turn for the first time since 2008 which is really exciting. and has been almost six years of depression. when i was going through stanford, we had a great run under montgomery. coach calvin could not make it this year. excited about the stanford has not been to the final four since the late 90's.

>> you think about the final four? >> i think stanford has the talent to stay consistent. an hopefully can learn to win ncaa games, so hopefully will find out i. i have not finished my brackets yet. florida looks really tough. >> that is a good team. >> it is interesting to me that i do not yield that there has been a big cap -- venture capital interest in the local sports teams, where the like in new york the financial elite is filling up madison square garden. van,group a big boards very addicted to the yankees, new york rangers. i think the culture and how important sports are in new york is very different. i stanford as an undergrad,

wrote an article that says in california qualified as a sports man by opening sports pages three times a week. where i grew up of a few do not know the latest details on something that you were at the uncool kids table at lunch. much great ito has been great to have you here for the hour. colorful as always. in new york, julie hyman has some breaking news. >> we continue to track the developments in the ukraine, and latest we are hearing from the gradient defense ministry spokesman is that the creek -- the ukrainian military is not authorized to use live animation is nowf-defense right -- authorized to use live ammunition for self-defense. now, the greedy military has been authorized to use live ammunition for self-defense.

we will continue to monitor the situation, and continue to stay tuned for bottom line next. ♪

>> i am mark crumpton. this is "bottom line." russian president vladimir putin calls for the annexation of crimea. then, the u.s. treasury says regulation will support virtual currencies. elon musk takes advantage of u.s. dependence on russian rocket engines. to our viewers here in united states and those of you joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines today.