>> live from pier three in san or at least from bloomberg headquarters in new york, we are "bloomberg west." we are just hours away from learning how many shares of alibaba group will sell. . a new filing is expected on what could be the largest ipo in u.s. history. a taxi service backed by alibaba is taking on uber in china with a similar business. it's a disturbingly similar website. it is called quity and has 100

million users against more than 300 million users each day for rise. we will see which company will alternately within china. what happens when you are a brand does when you're brand-new-does not work correctly? we'll see how apple trains engineers and employees to diagnose problems before they can become punchlines for late-night comedians. chinese alibaba group will file the terms of its filing later today. it could be the largest in u.s. history if they can sell stock. the filing could include details on pricing is required before alibaba can start the investor meetings. it lands a two-week roadshow on monday in new york. they will have stops in other u.s. cities and in asia. this has been delayed as the sec was seeking more information from the chinese e-commerce giant.

david chow is with me. what is the experience of alibaba for users in hong kong and china? >> most people in hong kong know-how to use the site. they are active participants in this marketplace, one of the largest in the world, that connects buyers and businesses together. what's interesting is that many people in the states have never been on the website or her the name and those who have tried, i have a small business friend who has tried -- he runs a small business. >> be a small? but it'stty small, too confusing. that's going to be one of the biggest challenges for alibaba -- how do youde-mystify one of

the largest he commerce companies in the world. >> run your perspective, i would imagine you have looked at the earlier filings and gotten a sense of the business. tell us what you think. march,e a company by 2016 that will have about $50 billion in income. talking 150re billion but it is still growing at 40% and higher. toy have a shot at getting $200 billion in market cap that would really send a major message that the new world order of technology is going to change because it's going to be the largest chinese internet company by market cap and the largest e-commerce market in the world. >> should it be? frome business that strong profitability that that valuation will hold? think we tend to forget

that when amazon went public, it was not even profitable. >> it's barely profitable now. >> that's exactly my point -- i think alibaba is still in the early stage when e-commerce is really kicking in. it's already the largest in china which is larger than the u.s. but mobile commerce is just about to start. they dominate about 70-80% of anything sold to the consumer on e-commerce. it's basically through their website. >> talk about the mobile usage and how important that is. >> its extreme important. if you look at the many battles they are fighting, the brick-and-mortar integration, mobile is the most important thing. that is one of the pieces they have mailed compared to their biggest competitors likebaidu. they depend on the average person going out and buying what

they see right away. they are adopting a new technology where if i like what you are wearing on the street, i can take a photo in a can send it directly to the type of store that will sell it and i could buy it right away. like ebay where they match the buyer and seller but are not carrying their own product. >> that's right, you are seeing the rise of the middle class in china. people are on their first smartphone and as a result, they are trying to figure out the best ways to use it. they don't have a laptop and home and have gone straight to the phone and that's where they are doing their shopping and that is where they are ordering. >> david, when you look at the other businesses that are folded into this, do you see a network effect or do you see that these guys are cobbling together many different ideas on top of one? for think the propensity large internet companies nowadays whether you are google or others is to dominate or try to get into every field.

in particular, there is a lot of greenfield areas in china. i think alibaba sees that they are in the front seat along with baidu and tencents to grab them. chaotic a little bit but i think there is a strategic string. they want to own the consumer at the end of the day. get the sense now that they've got this really dominant market share in china in ways that amazon is starting to be in the u.s.? are you seeing that in china? >> yes, they own 80% of consumer shopping in china. that number is expected to grow by 2017. the reasons they are doing so well is because we take a look at china and i have spent many years there -- it is fragmented. if you want to buy a tv or a laptop, there are thousands of places to go to. is a centralibaba portal where you can find what you need quickly and instantly. you don't have to navigate the ground.

you have to navigate the web. welleason it may not do as as in the u.s. is because in the u.s., it's really straightforward to navigate. if you want to buy a laptop or computer or tv, go to best buy or others or go straight online. in china, you only have limited options which is why they are doing really well. >> is the mobile platform so important because that is the first computing that many people in china will ever do? >> absolutely. if you take a look at those in second and third tier cities, they have spent time in places that you have never heard of and most people there -- this is a -- savvy city, they only own a smart phone on the bought recently. it's not always one of the most expensive ones. their other products. the point is, it's interesting that david mentioned they want to own the consumer. i would be curious to hear what

your thoughts are about the gaming side of things. if you want on the consumer, you want to figure out how to increase the number of revenue streams you can get from them. one way is gaming and $.10 has done a great job at this. they have partnered with the andtors of candy crush final fantasy and to sell these virtual goods so that not only are they able to buy physical goods with virtual goods as well. i'm curious to see what you think about that. i think the thesis for alibaba is that shopping is also entertainment. we also know that a lot of e-commerce sites whether it is auction-based or social networking based, is becoming more entertaining. the gamification of e-commerce and shopping has happened in alibaba needs to have their foot in the gaming business to really understand that and make sure they are in the forefront of shopping. time, gaming in

china is one of the early markets of the internet that was extreme the successful. mobile, alibaba is facing a few threats from the communications side. also on the search side thatbaidu has i think they need to have a defensive strategy to make sure they arm themselves with almost every single sector in the internet business in china. >> they also are armed with that a big armful of cash if this ipo goes through. thank you both for helping us get ready for this. thank you very much. bloomberg will have extensive coverage of the alibaba ipo roadshow in all things leading up to the offering in the next couple of weeks including a special documentary monday night. it draws in over 200 hours of archival footage with alibaba employees and their headquarters in splashy public events.

take a look -- >> ♪ ♪ [circle of life] ♪ ma!hat was jack that's crazy. look at the premiere of crocodile in the yangtze on monday at 9 p.m. east coast time. more "louvered west" coming up after this -- more "bloomberg west" coming up after this. ♪

>> i'm cory johnson and this is "bloomberg west." -- alley -- and alley bobby

and alibaba back taxi service is starting in china and receives over 6 million orders for cars per day3 kuaidi launched in 2010 and is in over 300 cities. uber only operates in four chinese cities. johnny is now from hong kong is the cofounder. -- joining us now from hong kong is the cofounder. how is your business growing? >> we are growing very good. we cover over 300 cities now. have also tacked on limo services to our 100 million registered users. >> those are really big numbers. what has the growth rate them like? is accelerating or slowing down? >> it is accelerating.

>> really? >> especially when we offer the new service to them. we addedn app and then the limo service so that is why our numbers are growing -- are going up. >> specifically, what is the billing like? one of the secrets of uber is that they have a backend billing system that works so well and seamlessly. how does that work in china? >> we've got the number one payment gateway in china with alibaba. alipay which is the largest amon system in china. >> is the functionality similar? >> it's similar and also [indiscernible] is not as common in china. a lot of people are using alipay

to do online transactions. >> the transaction goes between the user and a bank account? basically, the users deposit money into alipay and then alipay will be the payment gateway when they initiate a transaction on their app. fromoney will go directly the passengers to the driver right away. >> that is an adjusting difference. desk that is an interesting difference. i was struck looking at the website -- it does not look like it is close to the uber website. it looks like the uber website. as you copy what they did? we have lots of localization in the market area you are just looking at the english website but on the app, we did a lot of localization.

we as local maps, local points of location, we did a lot of localization to make sure we get into the local market. >> how is it different? what sort of features would that be that look different? >> i can offer you some very interesting features. in china, taxi fare is so cheap. the startup is only two dollars. sos very hard to get a taxi we offer a tipping function in our app. when the user cannot get a taxi, they can just say i would like to order a taxi and the driver will pick you up. >> interesting, are the vehicles different? adding aexpanded by cheaper vehicle. >> yes, we have a portfolio of around $10,000-bmws

and audi's ands-class mercedes. all the way from the economy car to the luxury cars. >> the smart phone market is expanding but not as prevalent in terms of percentage market shares as you see in other countries. other other adjustments you make for that or are you waiting for them to come up with smart phones and that will give you more growth in the future? >> definitely, in china, the market is so big we just kept a small portion of the market. the taxi but we offset the limo service eight weeks ago. we start with 50 and now week cover more cities and now there is a lot of growth for the rest of the year. >>joe lee, thank you very much.

the motorola smart watch is going on sale today. it's interesting to see this advice come out ahead of an apple wearable announcement next week and got our hands on the watch and will show it to you next on "bloomberg west." . ♪

>> welcome back.

motorola just revealed its highly anticipated smart watch. and ialled themoto 360 of theat the release samsung watch. this comes ahead of an apple announcement of its own wrist device. sam grobart was wearing that watch and was trying it out inside and look what he found. 0> this is motorola's moto 36 smart watch. this is the best smart watch you can buy right now. why? for starters, it's the only smart watch that realizes the importance of looking good. smartphones spend a lot of their time in our pockets or in bags. the smart watches constantly visible. looking good is really important.

bar not one clears that only is it eye-catching the round, it is made out of luxurious and suitably watch-y materials like stainless steel and whether. the display is a colorful and responsive touchscreen. it is not super awesome in bright sunlight but few displays really are. when you're not looking at the display, it automatically dims which gives the 360 a battery life of about a day. went to -- when you want to recharge, you put it into the included document and i stand which turns your watch into a little bedside device. it lets you use voice commands. , ok,ake it up by saying google, and then you could issue instructions like send a text or make an appointment on your calendar or have it navigate you to a destination. navigate me to rockefeller center. get your watch to do more

than tell time, you have to prepare it via bluetooth with an android smartphone and that smartphone has to have anapp called android wear. is the link between your watch and some of the apps on your smart phone. naturally, google apps are the most compatible. i can read a gmail or make calendar appointments straight from iwatch but other apps are more limited. i can see on iwatch that a friend commented on one of my facebook posts but to actually read that comment, i have to open up they spoke on my phone. is notend, the moto 360 looking at other smart watches for inspiration. it's looking at this -- an ipod. the ipod was not the first mp3 player out there but it was the first mp3 player that made people care about owning an mp3 player. we are still in a bit of a primordial phase when it comes to smart watches. this watch hopes to be the breakthrough. on the hardware side, it may have done that but the

limitations on the software side still makes this feel less than something truly revolutionary. this really is the best smart watch you can buy right now. unless i'm of course, someone comes up with a slamdunk. with theas sam grobart new motorola smart watch. "lumbered west" will be right back. >> it is 26 minutes after the hour which means we are "on the markets.." let's take a look at where stocks are trading in the wake of that disappointing jobs report. we see some gains on market as people speculate that the fed will not have to tighten if the economy is not on solid footing. in terms of individual stocks, we are watching gilead. they want to bring its hepatitis c treatment 280 developing countries. the 12 rate treatment -- the 12 week treatment will be in

developing markets for about $900 and we are looking at that which posted same-store sales that trailed estimates pulled down by a six percent slide at its clothing chain. more "bloomberg west coming up. ♪

♪ ♪ >> you are watching "lumbered west." -- bloomberg west. -- therce software company announced exist banding salesforce, platform that allows developers to create apps for wearable devices. really? we are joined from toronto, the senior vice president at salesforce. really? crm software on a wearable?

absolutely, we are super excited about wearables and we think it's the next mobile revolution. with salesforce where launching two months ago, the momentum has been tremendous. it is showing that there are tons of business applications for wearables in business and health care and retail and hospitality. it's going to be amazing. rift is not really out there but what might you do with that? think there is tons of applications for business for oculus rift. one of the business applications we created from our platform was the ability for someone to go into a car dealership and visualize the car they want to purchase and even sit in it and look at the color and the wheels and change the configuration. it would create an entirely new experience and also helping and automate of -- and automotive manufacturer create -- connect

with their customers. we are about helping their customers connect with their customers and a new way. >> i was wondering what you're doing and canada. is this where salesforce is based, in toronto? >> i live in toronto and we have a large presence in canada. the toronto area is a hotbed of wearable innovation. it's a great place to be today. >> i know there is wireless innovation going up there, too. in terms of the virtual reality notion, does this put salesforce more in front of consumers and less -- and not just the salespeople themselves? salesforce, our roots are the salesforce automation of the crm company but we have become the number one clout company in the world in the number one sales cloud and number one marketing clout in the number one service cloud and we are huge platform company and that's why we saw the

opportunity for salesforce where. we have over 2000 and of them and apps of all types. withwe have seen innovation on this platform reinforces that the salesforce one platform which allows developers to quickly develop things across a variety of devices and now for wearables is the number one place to build business applications in the cloud. salesforce things we are not just about sales people using it for automation, we are about really transformative applications you can build that connect directly to customers and create new experiences that were not possible before. >> i mentioned what i am wearing now. that come into being something that might help anybody sell anything? >> it's not necessarily just about helping people sell their products. it's about new experience in a

way to connect to customers in new ways to provide service to them. it's also about new ways to create employee productivity. with the jawbone, salesforce has one of the number one internal community applications and that's the place that thousands of employees, millions of employees go everywhere date -- every day to do their work so isn't that a natural place to connect if it is our wellness program? companies are deploying devices like the jawbone up and providing incentives in cap petitions to increase fitness and wellness. that translates into more happier and engaged employees and lower health care costs for large organizations. >> it's intriguing with news of an apple device coming next week. there is a strange thing in new york this week where samsung did not announce a watch but had one available for the press to check out. they would not talk about it. aich is odd but are you in position where you in a position where you're seeing these devices before they come out?

do you get a sense of what might be possible? absolutely, we have had some great traction with hardware vendors. in this release of salesforce where, we added five more vendors. who added oculus, jawbone but and meta.ic and vario these are devices before they have been released and we get to work with them and it's exciting. what salesforce where is helping us do is create a single place for developers and businesses to bring together hardware manufacturers, the software platform they need in a trusted cloud environment to build something that is going to transform.customer experiences we are working closely with hardware vendors and it's exciting for them and for us because we're the first and only major enterprise software vendor that said this is the future of customer experience and we are starting to put effort and energy against it now. we are amazed at the uptake and the excitement both from

customers and our own employees, and definitely from our independent software vendor partners who are creating amazing apps, things we would not have thought of ourselves. this is really a next mobile revolution. we will see companies on scale and opportunity of many ubers and yelps taking advantage of the capabilities of what these devices can provide. they are all different and do different things. you can see things in health care, retail, hospitality, manufacturing. it's going to be tremendous. >> thank you very much. that's cool and interesting stuff. coming up, the san francisco 49ers are no longer in san francisco, they are in silicon vis pay for the naming rights of the new stadium. you are confused because you are watching "bloomberg west" and i am in new york and we will get the geography straightened out and find out why the big jeans maker did that next. ♪

>> i am cory johnson and this is " bloomberg west," on bloomberg television, streaming on your phone, your tablet, and bloomberg.com and now available on apple tv and amazon fire. the's is gearing up for inaugural season of the naming rights sponsor to the san francisco 49ers new home in santa clara. it's called levi stadium but the question is, how this partnership can about and what will this mean to the levi bottom line? we asked him how big a deal this is. >> i think it's a huge, huge deal for us. it's a statement about a brand and how big the brand really is. if you think about it, how many brands can put their name over the door of the stadium? >> how did this happen and how

did you scored naming rights? over dinner york after a mutual friend introduced us and i have experience with stadiums before. i used to work at procter & gamble so gillette stadium was something i had involvement in. i knew how good of a deal a stadium could be for a brand. when we talked over dinner, the whole idea of an iconic san --ncisco brent likely vies brand like levi's matching up with the 49ers just seemed like such an appealing idea for the two of us. you are onthings, if the 49ers site come you want to make sure you're doing a deal with the company that is going to be around for a while. we have been around for 161 years. i told him we are not going anywhere us you don't have to worry about the name changing. >> this is supposed to be the most tech savvy stadium in the country. did not gorprised it

to a tech company in the heart of silicon valley? >> no, because eric inc. -- because i think our propositional stronger overall. there is this relationship back to the roots of san francisco and the fact that we're going to be around for another 100 city one years. the name will not change in five or 10 years as it did at candlestick. >> how do you turn your name on the door into business for levi's? >> there are a lot of different ways we can activate the stadium. one.pen to be wearing we will activate with some product. this is nfl licensed gear that we will sell in the stadium. we will sell in the stores and it's a big idea, not just one individual piece but we have multiple pieces. it's really more about how we engage our fans and the 49er fans and how we engage them in the stadium experience. >> you also have a ox where you will be handshaking on deals? >> of course, we've got to turn

the stadium into money at the end of the day and make it work for us for business standpoint. we will use it to work with our partners and our customers and use it to turn into business. >> and he plans to increase your ad spending in tv ads or - >> we just launched our new advertising campaign called living levi's and we are excited and will get a lot of airtime and put media weight behind the nfl. we get airtime in the stadium as part of the deal as well so we will be showing living levi's there and we will try to catch fans living in levi's. >> how much did it cost to get your name on the stadium? >> it's public, it's a 20 year deal, it averages $11 million per year, $220 million over 20 years. i think it is such a great deal that last year, 30 -- second spot in the super bowl went for over $4 million. >> that's expensive. >> it's expensive.

we've got the naming rights for the next 20 years which, by the way, includes the super bowl in 2016. deal backnnounced the in may, we have had almost $50 billion -- almost 50 billion impressions around levi's name associated with the stadium. >> who's your favorite 49er? >> bernie davis. >> that was fast. >> i thought this was the 32nd questionnaire. >> have you met any players yet? >> i did ice bucket challenge him and he responded. it's a start. there are a lot of great players on the team. and the coach as well. i've got a lot of favors but ernie davis i think is probably the most amazing tight end in the nfl right now. >> speaking of pants design, jim harbaugh of the 29 -- of the 49ers is not known for his style. his pants up and nicknamed dad pants because they are not so

cute. are you helping them with that? >> it started with his wife. his wife was the one who really handsome got this former pro football player as a husband and looks like he's wearing curtains around his waist. we have been working with him 30-second spot for dockers which is our other brand called stop dad pants which features sarah harbaugh. it kind of works. when we got jim raab early styled, he looks more handsome. >> what about moving on from the khakis? maybe we could pick out a pair of jeans for him. >> we have had them in levis before. when we announce the deal, we had several players and coach our book came out to the plaza here and we introduced him to the employees. he was rocking his levi's. i think we had on a pair of

501's. >> emily chang there with chip bergh. areu.s. fighter jets investigating a single engine small plane that is not responsive that was bound from rochester, new york to naples, florida and appears to be headed toward cuba. julie hyman joins us now. >> it's not clear whether the u.s. fighter jets are still tracking this plane as it enters cuban airspace. wasou mentioned, it supposed to fly from rochester to naples and kept going. the norad jets tried to look in the plane to get a visual on what was going on and they were not able to see into the plane. they said the windows or fogged over. -- were fogged over. they said they did not communicate so it's not clear what is going on. the type of plane is called asecada 700 that is a light aircraft. it looks like this was a private flight.

in these situations, norad dispatches jets to dispatch and figure out what is going on. we will keep you posted on this developing story to see if we get more information about who may be in the plane and how folks will get it to land if indeed the people within the plane are unresponsive. >> i was looking at the plane online and it seats about six people typically. no idea who is in it and rochester is the headquarters for kodak and a lot of xeroxes up there and bausch & lomb and other companies and we don't know if it's a corporate or personal jet. it's interesting that it's as simple as trying to get beside the plane and look inside. it's confusing why the windows would be fogged up but they could not get more information. >> it reminds me of the payne stewart situation years back. andill get back to apple talk about their plans to launch the latest iphone iteration next week.

the team of apple engineers are gearing up for this with an emergency response team should anything go wrong when consumers get their hands on the device. we are back with more to talk about this elite task force at apple next on "bloomberg west." ♪

>> welcome back to "the merck west." as apple customers get ready to unpack their shiny new iphones, leaks of apple employees are getting ready to diagnose any problems. these iphone first responders make quick fixes and alter the supply chain is made in act fast enough, they hope, to save the company millions in problems and reputational damage. this is really interesting stuff. >> yeah, it's an interesting behind the scenes thing that goes on at apple after these things are released.

the first devices that are returned for some sort of litter problem come of they are given to a career and go back to the apple headquarters were the same engineers involved in designing and building the device try to figure out what problems are going on. >> is a fairly amazing thing and you can imagine the sort of issue that can come up and we have seen this with the iphone before. the first one had touchscreen problems. i don't know whether it was the problemthat had the with the antenna on the outside of the phone? >> the first phone told interesting story about the design flaw in which sweat from people's's faces was seeping into the device and causing the touch screen to short out. apple used adhesive coating to cover it up but beyond that, after you come up with a fix, you've got to get the supply chain to implement these things. there are millions of these things coming off the line over the course of them ramping up. -- as fast asbe

possible tens save you a lot of money. >> it's interesting the actual designers will be in cupertino to get ready for this forensic fix. >> yeah, you would think they s which isver atbj' the brewhouse nearby. and get they are there in these conference rooms and when the first ones come in, there is a lot of anticipation so i've been told and they go to a workbench and terranova and try to figure it out. many times, these problems are related to soldering or something not being connected properly. area, you have "a tonight show" comic joking about the antenna and that's what they're trying to avoid. >> the fear of jimmy kimmel has this whole thing going. there's a serious reputational risk if the phone has got some problem.

they drop this attention with their massive pr effort around the announcement. that's where the backfire could happen, right? itself andple prides they play up very hard that they make the best products on the market. if they don't live up to that standard, people let them know about it very vocally. that was the case with maps which is another example where the product did not live up to what they were saying. obviously, that was a big embarrassment. that is the sort of thing they are trying to avoid and given the volume of these things they are making, they have to move very quickly. , washingtonredmond to look at the new microsoft surface and they would not let me go in a room with the camera and they are working on the next surface already. the process is so difficult and lengthy that it's like old home week to see the phone that stopped working. >> one thing i learned in doing this story is that apple care

which customers know as the warranty program that they have actually has a lot of clout internally at apple and sit in on early product design meetings the lasttalk about in generations of the phone about the key problems that customers were talking about. marshal a lotto of engineers from different teams to fix problems if things are not being fixed quickly enough. they will insist that testing equipment be put on the end of assembly lines. thatows behind the curtain there are different ways they go to get these products out. bj'sshout out for the brewhouse and thank you very much. we focus on one number that tells us a whole lot and today's bwest byte is - >> this is my first one. >> very exciting.

250 thousand euros -- >> that is a lot of bread. >> that is 324,000 u.s. dollars and that is the amount that uber in germany could get fined every time one of its drivers does not have the proper licenses and permits in place. is banned in uber germany and they are appealing that decision but a group of dispatches will do a random test and go into these uber cars and ask for licenses of every time they don't have it, 250,000 euros. >> i was a taxi driver in new york city a long time ago -- >> no you aren't. i said they would have maple over and show my certificate. telling drivers not to provide that much information. . >> you can get all the headlines

all the time on bloomberg.com and we will see you on monday. . ♪

>> from bloomberg world headquarters here in new york, i'm olivia sterns. this is "bottom line." today, a cease-fire between the ukraine government and rebels takes effect. hiring drops in august and a look at what is next in the effort to exit bankruptcy. to our viewers here in the united states and to those of you joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines today. peter cook with an rv