>> live from pier three in san francisco, welcome to "bloomberg west." a check of your bloomberg top headlines -- the united states added 295,000 jobs in february. unemployment dropped to 5.5%. >> this is another wow job support could -- jobs report. a strong dollar and bad weather. we outperformed the expectations

by a lot. the longer-term trend 12 straight months of 200,000 plus. >> not so great, wage growth. average hourly earnings grew .1%. the companies issued $14.5 billion in debt this week. exxon alone telling 8 billion. energy companies are going to take advantage of the stabilizing oil prices answer below this superlow interest rates -- oil prices and superlow interest rates. a new study from aaa found prices at the pump are raising five times faster than crude. refineries operating at the lowest rates in six weeks.

anti-labor right to work bill act by scott walker -- backed by scott walker passed the assembly after 19 hours of contentious debate. wisconsin will be the 25th state with a right work best right to work law. -- with a right to work law. sap will cut 2200 jobs, 3% of its workforce. the second big cut under the new ceo. he says the cuts are not about cost saving but being fit for the future. they have faced obstacles while transitioning to the cloud. the world's most viable company joining the dow jones industrial average. replacing at&t on march 18.

apple was kept out of the index for years because it had a high share price. a split of its shares gave it a share price more amenable to the dow. the new entrant comes with a cost. at&t leaving the dow after poor performance. this move had been predicted for some time, even two years ago. what do you make of it happening now? >> there were two things that made it possible for it to happen. the first was the split and apple itself. that was a price would index -- price weighted index. if you would have put the

pre-split apple income it would have been a huge part of the index. this little brought the price into the range that is appropriate for this membership. you have visa splitting its stock, reducing the weight of the information sector. putting apple in was a way to bring the tech wingback where the index committee thought it should be. >> you take out at&t, you add apple. as it was, the index percentage 19% of the s&p and technology and now 19% in the dow. does that mean that better reflects -- >> if apple had not come in and bees i had split -- visa had

split, it would have been reduced. that is the mode of the committee -- we can't let technology be that low and still have this index be represent ative of the blue-chip american market. apple is a large stock and people like to see it. >> how important is the dow jones to the way the market or the economy works? is in the s&p -- isn't the s&p head and shoulders above? >> it is an much more comprehensive in its capitalization. $2 trillion whereas the s&p has about $30 trillion. >> something to talk about. thank you very much. it's time for our special coast

of the show -- glad to have you. your pink mustaches are known and 65 cities -- in 65 cities. how do you measure your growth? >> year-over-year, we have grown five times. 100,000 drivers across the country in 65 cities. >> we were talking about the economy adding 200,000 jobs that you have added 1000 drivers. that is amazing. >> you are in 65 cities right now. we have to talk about uber as well. how do you differentiate yourself? >> it starts with our vision because that tells where we are going. in the beginning, 85% of seats are empty at all times on the

road. >> i'm looking at the traffic in front of me and most of those cars are mostly empty. >> yes. n.l. a -- in l.a. come if you change it to 1.3 some models say that you wouldn't have traffic anymore in l.a. $2.1 trillion is spent on personal vehicles every year. we are trying to create a low-cost option that allows you to replace car ownership. >> your notion isn't replace the taxi or the limo. emily chang and i did this thing for years ago with this thing called uber. we waited forever for a lincoln town car to show up.

you have an even bigger ambitions are you want to replace cars. >> the taxi in the ministry is $12 billion. -- taxi and limo industry is $12 billion. our products like lyft line and hot spots or you can find someone else going the same way as you at a lower cost than ever offered before. >> is the principal technological advancement the smart phone with gps or the big data analysis? >> a combination of both wi. >> fundamentally, what is that -- >> it's about awareness. having passengers find out about

the service. passenger demand continues to increase. it is an awareness thing. >> we will have a driver on and we will talk about other companies, building a brand come understanding the market the pink mustaches. "bloomberg west" will be right back. ♪

corey: islamic state militants bulldoze the remains of -- they are calling for a u.n. meeting on how to protect iraq's cultural heritage. iraqi fighters have relaunched a new offensive to retake the city. in effort to fight incoming equality in china. senior managers at the five

largest lenders will make no more than $95,800. china's smartphone maker xiamoomi is investing in 100 emerging tech startups. they're hoping to expand to areas like connected home. let's turn back to our cohost john zimmer cofounder of lyft. what about the drivers? how do you keep them happy? joining us now is an average lfyft driver. you guys have not met before. everything you have wanted to blame him for coming you can blame him right now. i drove a taxi 1000 years ago.

why did you decide to start doing this? >> i started because i had moved to northern california from southern california. i had just finished grad school and i heard it was a great way to make money quickly and to get to know the area. corey: is it? >> it is. i started in sacramento. the pay was much more rewarding here. i had a friend that was looking for a roommate. at a cheap price. i can live in san francisco and make a lot of money and not have to pay a really high rent. corey: you mean a lot to these people -- john: what has been the most surprising thing? >> i'm surprised i can make $300 a day.

you have to have a really high profile job to make that much money in a day usually. corey: how many hours? >> sometimes five hours, but sometimes a bit -- but sometimes eight. corey: not bad. what is the stress level like when you are driving? driving in traffic is stress. pete -- is stress. -- stressful stuff. >> people are popping out at you all the time. sometimes the passengers are stressed out because they are late. that is the hardest part, the traffic having things come from all directions. john: a lot of things people wonder about, how are the people

? you are meeting hundreds of people in week. corey: you are also a woman alone in a car. when i drove, it was terrifying. you are an atm machine running around muffling over for anyone who requests you. is it scary? >> the first time, it was totally uneasy. once you get your first lyft ever mine was an 18-year-old girl going to college. it took off so much tension. the driver is more nervous than the passenger at first. they realize its regular people. i request lyft. i drive a honda civic. corey: does the car matter? >> yes. has to be a 2003.

corey: in terms of the way the passengers react to it. >> no. i don't think they are too picky about it. john: we looked at ratings across different types of cars and there is little variance. passengers want a great driver. corey: you guys had a controversial promotion program. you bring in a couple people and get paper you back away from it -- bring in a couple people and get paid. you back away from it? john: we underestimated how many people would apply for this. corey: the deal was what? john: a $1000 referral bonus and $1000 for the driver.

if their application was complete by the end of day yesterday. that's what we said from the beginning. many drivers were frustrated because they were stuck in the process, like background checks. many got through, some did not. there are other safety checks we do on our side. we extended another week for those that had completed the background check and driver check corey: did you find anybody? >> i got to people. -- two people. she was a local resident. we knew the background check may not go through. this was a young girl who lived in san francisco all her life. i found a man who was a foreigner and he did not get the background check to go through. corey: interesting

stuff. thank you very much. and john zimmer ceo of lyft staying with us. ♪

corey: this is "bloomberg west." we want to get back to our story about lyft. one of the crucial things is payment. their relationship with stripe goes a long way back. it was the first company to use stripe's application. talk to me about how stripe works with lyft. >> we are very excited about the lyft relationship because they

represent one of the new internet mobile-based business models that we believe are just the beginning of -- only 5% of commerce happens on the internet today. the way that lyft has grown and the great success they've had they have become a great partner to us in helping us devise the product we've been building. businesses like lyft have that agreement and they need payment processing across those parties. corey: what is the hard thing about payments? i was comparing a couple hundred dollars in cash -- you need glass between the driver and passenger. you look at the payment problems posed by your business, what are they? john: the first thing is safety

in the car. you want the experience to be not focused on the transaction and stripe allows you to do that. how do you control people's private information? working with a third party like stripe that is a big part of their business. when someone puts in their credit card information, stripe panels that and passes it as a token so we don't have that individuals credit card information. the last piece is distribution. we have over 100,000 drivers. it is competent to collect money and dispersant out on a weekly basis. -- complicated to collect money and disperse it out on a weekly basis. >> think about doing that in multiple countries as well. corey: when you look at this and how this evolved over time, how has it changed?

how has stripe changed because of the lyft partnership? >> the example of the kind of business we want to support, the security aspect, the mobile, frictionless aspect and the fact that there are complexities in handling their business. you want to make sure that security is occurring, there is fraud prevention, the flow of funds, handling that to make sure -- to track the money that is moving. corey: it is interesting that you can launch a business like this -- so many companies are able to do that now. it has changed the way companies launch. they don't have to build a payments office. john: absolutely. corey: do you feel like every company is changing stripe and

you can take those lessons and apply it? >> lyft is in one segment we care about. you can imagine software subscription businesses have a lot of different needs. we have been working with a number of our partners there. corey: self driving cars, you work on this project with google. you are working with lyft -- do you see these things coming together? >> i think in the future i'm interested to see how this comes together. that project and what john a logan have created are motivated by the same thing. we are not thinking about transportation the way we should and we only use our cars for a present --

corey: "bloomberg west" will be right back. ♪

corey: you are watching bloomberg west, where he focus on the future of innovation, technology and business. 12th straight month of job gains, over 200,000. however, early earnings are only up 1%. here is the reaction from bill gross. bill gross: i don't think this jobs report is as important as you pointed out.

i don't think it threatens inflation. in fact it is below what the economy needs. cory johnson: vladimir putin ordered a pay cut for himself, the prime minister, and other government employees starting march first through the end of the year. vladimir putin's net worth is in the billions, so cry no tears for him. president obama says e-mail used in the current administration is much different than during hillary clinton's time as secretary of state. >> president obama believes e-mails should be tracked. he believes in transparency. he is working with the national archives to make sure that all of secretary clinton's e-mails are captured. >> secretary clinton has asked

the state department to make her e-mails available as soon as possible. investigators are looking into whether claims that her e-mails violated policy are not true. unique codes have identified 34,000 department of defense mobile devices. this follows a series of raids by u.k. law enforcement officials targeting cyber criminals. we now turn to ride sharing. lyft is shifting away from the fuzzy pink mustache. they have a sleeker glowing version. tell me about the mustache.

>> it was supposed to be a launch idea that we would do for a couple of weeks. we thought for two weeks it would get a lot of attention which it did, and it worked out really well, so we kept it for two years. luckily, we worked with a great team to polish it off, and we now have a sleek glow mustache. cory johnson: so, it became your marketing message by accident. >> yes. cory johnson: you try to come up with an idea that was different. virgin air -- i have flown continental, united. there are not a lot of airlines that are really differentiated. what is the message you wanted virgin america to have? >> it is about trying to create an airline that people loved and trying to make flying fun again.

when we launched, the idea was to take what people like on earth and bring it into the sky. have a meal when you want it. have wi-fi. you like things to look nice. it's about giving people control in their environment and giving them something beautiful to look at. cory johnson: i am totally smitten with virgin america, i will just put it out there. i am already virgin gold. but i wonder, is virgin brand that is marketing less -- you come up with an idea of the image you want to have and then create the experience around it as opposed to putting a pink mustache on a car where you lead with the experience and the product comes second.

>> we react to the message out there by differentiating our product. a lot of other airlines really do not offer a good experience. cory johnson: does anything change now that you are a public company? >> now we can answer a lot of questions. in that way, it has become easier. cory johnson: whenever we talk to you, you talk about customer experience. you want the passenger to bond with the driver. you like communication between the two. is your marketing message -- you know, how does a pink mustache advance that idea? >> it is a conversation starter. it is kind of like a smile. you get into a lyft, and often the passenger is smiling because there is a pink mustache there. that was part of the original

idea. because you want to bring this to every car on the road, every driver, you need a next.'s that everyone is just need an experience -- you need an experience that everyone is comfortable with. if you go into a room and ask people, how many of you are willing to be in a car with a friend, share a ride with somebody else, most people raise their hands. i feel good when i am taking a virgin america flight. cory johnson: virgin certainly gets very high rankings as far as customer satisfaction. how much is customers that is action not just -- customer satisfaction not just about experience, but what the expectation of the brand will be ?

>> we have on-time arrivals and the partners as well as baggage claim that is less sexy than some of our business, but it is part of the experience. passengers are doing the work for me by talking about how much they enjoy the airline. we rely on social media. having a good experience allows us to have a good word-of-mouth. cory johnson: but does the marketing message prepare them for that? hey, i thought i was going to get on a crummy airline but i got on a somewhat less crummy airline. because you are still cramped. you are still carrying your luggage. your kids are still crying. >> it is in it better that you can order a movie and have a cocktail whenever you want it? cory johnson: absolutely. that is the marketing message preparing the passenger.

>> we do want you to believe that you should have higher expectations that you will have a better experience in the sky. that is part of the challenge, to relay the idea that we are going to make flying on again. cory johnson: there is no industry that is more price sensitive, with the possible exception of gasoline, then airfares. -- thenan airfares. >> that is part of why we have built a loyalty program. you can have a good loyalty program and a good experience. >> what is your favorite thing that has happened since you have been a virgin america? >> i started to bring this up the safety video. 10 million people have gone on youtube and spent almost five minutes watching a safety video. i love the idea that we can take things that are monday and,

whether it is the cup on an aircraft or a website and make booking travel fun again. it is taking mundane things and using them to differentiate. cory johnson: i talked to richard branson and told him i cannot get the song out of my head. >> it works. cory johnson: stay with us. ♪

cory johnson: i am cory johnson. this is "bloomberg west." blackberry is announcing four new smartphones this year. it was only a year ago that ceo john chen said the turnaround would be based not on hardware but on software. so why new hardware? our editor who covers blackberry

for bloomberg news joins us now. garrett, you have a great piece on blackberry and the focus on hardware. what does it mean? >> i think it just shows how many balls john chen has in the air that he is trying to juggle. it reminds investors that hardware is still an important part of the company. cory johnson: the cofounder of lyft is still with us. do you have a question? >> what is the current market share for blackberry? >> it is under 1%. .5%-.6% depending on who you ask. they would say that is a focused market. obviously, there are regulated

industries and government departments that still require a handset. that makes sense but why another touchscreen, why a slider phone? john chen would answer and say there are still people in those industries that don't want a keyboard. the other point we want to be sure to make is they didn't say we want to lx number of phones. they -- sell x number of phones. it might be the case that they are only going to sell several hundred thousand of these loans, but that might be enough to keep the revenue going while they make this transition. cory johnson: a 29% market share down to less than 1%. how do you john, monitor these things, trying to figure out where you are going to have to be in the future? john: we do look at these companies. it has been a while since i have

looked at blackberry. we need a reasonably large team not only to build it the first time, but to maintain it. so we are looking at market share numbers. currently, we only develop for ios and android. cory johnson: when that give you an advantage -- would that give you an advantage that uber doesn't have? we may only get 1%, but we will get 90% of that 1%? john: the young demographic that would use lyft is using ios and android for the most part, so it hasn't been a focus for us. cory johnson: in waterloo, are people still filled with hope? >> in waterloo, most people do

not work for blackberry anymore. they work for startups like kik. i think a lot of the smart engineers that came out of the company when they went to the restructuring said hey i don't need to work for blackberry anymore. let me start my own thing. i think people are feeling pretty positive about the future. cory johnson: interesting. the cold, hard streets of waterloo. the cofounder of lyft is with us. let's get a check of headlines. driverless cars could end 90% of accidents, says a new study, and prevent $90 billion a year of damage and health care costs. driverless cars are still years away. nasa scientists say there is

evidence that ancient mars had an ocean. it spread across the northern hemisphere for millions of years. if confirmed it will prove that life -- mars had everything a needed for life to emerge. the british phone carrier vodafone says it will offer a minimum as eckstein weeks maternity leave -- minimum 16 weeks maternity leave. "bloomberg west" will be right back. ♪

cory johnson: this is "bloomberg west here come on monday, the apple watch finally arrived -- "bloomberg west."

on monday, the apple watch finally arrived. it gave us a chance -- it gives developers a chance to start thinking about what they want to do with the watch. george worked with apple. john zimmer is still with us president of lyft, who worked with apple. what is the first idea that has to be different? >> you have to keep in mind that it is a second screen. it is not going to have the same notifications you would have on your phone. you cannot put your finger on top of it. you have to build experiences that work the formfactor. cory johnson: the design of the app is so critical. we were talking about mustaches and airlines, but when you think about designing an app what are

you trying to achieve? john: simplicity. the interesting thing about the form function of a watch and the size of the screen is that it forces you to have a better design. maybe it is as noble as pressing a button to see how many minutes away your car is -- simple as pressing a button to see how many minutes away your car is. cory johnson: are there guiding principles you think the watch will follow as far as being a simple screen? george: that is the crazy thing because this guy is -- because the watch information is very limited. they are highlighting the digital crown, but we cannot use that aside from scrolling up and down right now. they are very locked down on the device.

tomorrow, when we watch the big release, battery is going to be a keyword. john: do you think there are one or two apps that will make people say i have got to get this watch? george: right now people are on the sidelines deciding if they want to participate. there will definitely be an iwatch 2 that will come out. but it still has to be tethered to the phone. there will be some apps that will make it more simple for people to interact with the watch for limited instances. cory johnson: do you really think people are going to shoulder on the watch before waiting for the next innovation?

george: that is what happens. john: what do you think about the different sensors? any idea how those will be used? jordan: i definitely like the forced push. that is a cool new sensor that is going to be in there. you also will be able to check heart rate and have other cool ones in there. again, the usability, functionality, developers are going to embrace it. we have to wait for the new version of expert to be released to use the apps. i would expect to see some of the bigger apps start to come out that will be cool for it. cory johnson: interesting. john zimmer, stick around. we want to tell you the bwest byte. it is one number that tells us awful lot.

adam joins us from the newsroom. what do you have for us? adam: zero. that is the amount of things people were able to bring into the apple labs. that is where developers went to test the new watch. rooms are cut off from the internet and you can't bring any outside paper or phones or anything like that. it sort of gives you a sense of apple trying to bring in developers so that when they released this thing there will be apps waiting for customers. cory johnson: so when you walk in do they search you? are there metal detectors? adam: i have no idea. there probably would be for you. worry johnson: there should be for me -- >> cory johnson, there should: there

should be for me because i would be like a kid in the willy wonka chocolate factory. john: they have become experts in this level of secrecy and it has taken them many years to do so. when they have the new product coming out it will have a code name. they have become the expert. cory johnson: i was talking to another ceo in silicon valley recently about the doughnut shaped headquarters and i said that is not very good for collaboration. he said that is what they want. if you need to know, you will know. if you don't they don't want you to know. adam: people can be working on the same product but different pieces and they won't even know about each other. cory johnson: thank you adam and thank you john zimmerman

for being with us the whole hour. get all of the headlines at bloomberg.com. we are back tomorrow. ♪

pimm fox: from bloomberg world headquarters in new york, i am pimm fox, in four mark crumpton. this is "bottom line" for friday, march 6, 2015. we have full coverage of financial markets and details on apple. scarlet fu, bloomberg chief market's correspondent, explains why it has taken so long for the world's most valuable company to join the dow. and peter cook is covering president obama and the commander in c