emily: record low rates are here to stay. how companies are reacting to the fed decision. emily: this is bloomberg west. i'm emily chang. the economics of the sharing economy. can it last? what will and won't work. amazon's answer to apple with new tablets and a tv set-top box. and the green tech experiment, the entire world is watching. a solar powered plane going around the world. first, to our lead. tech investors live to see

another day of easy money thanks to the fed. the decision to keep interest rates on hold should keep fueling the funding for startups but with shares of high valuations and slowing growth in china how will investors respond? joining me now, to investors with their hands on the polls of investment. i want to start with you, what do you think these low rates mean for the tech giants and tech startups? guest: low rates are not the point. the giants have boatloads of cash. they are not impacted that way. the startups and the private companies have good cash coming in. what is important is the state

of the market. the public markets, that drives the ipo market, that drives the private invested market, that is what the tech world needs. emily: i hesitated to use the word funding party. how much of that is due to low interest rates versus due to the potential for real tech disruption? guest: i don't view interest rates as an indicator of what investing cycles are life. it is almost a tail wagging the dog to talk about interest rates swaying people to invest. emily: could it work in reverse? guest: it definitely could. that is where there is a palpable danger. we are talking seven years in a recovery economy.

this is the time when investors get over exuberant. too many are asking for venture capital, too many founders are bidding each other out. this is exactly the danger of starting a company in an economy and why investors are savvy about saying we should start in down economies. emily: i hear you nodding out there. if rates increase does that mean the funding party stops? guest: i think it is built on the public markets and the availability of an ipo future. as long as we have that we will continue to have lots of funding in silicon valley and elsewhere. the one thing i will say, yes there is a lot of money out there by having tried to raise a bunch of it myself it is not that easy. emily: "the wall street journal had a piece today about unicorns. you probably have hedge funds and mutual funds investing in you somehow. they will feel the pinch when interest rates go up. could that affect things?

guest: absolutely. i'm in the lending sector. we make personal consumer loans. we are at the bleeding edge aware interest rates could intersect with start up support. the consensus seems to be that rising interest rate environment, it is not like hedge fund money goes away, but i will say we should prepare for higher rates and pay higher costs for the debt instruments we take on. if anybody is out there now and you are in the middle of a venture debt financing or a commercial loan process you should seek to get that button.. emily: what about china? how does that affect things? we're still seeing dramatic volatility in chinese markets. guest: the volatility impacts us here and that is the more important thing. what we need, we need good markets and nonvolatile markets. to give everyone the confidence to continue investing in building. emily: how are you preparing? you are in a startup stage now. what are you doing in this environment? are you thinking of these macroeconomic issues? guest: definitely. it is the one thing that keeps me up at night. written large for all of the companies in the alternative

lending space we need to care about where we are in the macroeconomic cycle. in general my advice, we should prepare for being able to withstand a sudden doubling of the consumer loss rates we have seen. we should prepare for at least a one and a half axing. emily: thank you. emily: h are you preparing? you are in a startup stage now. what are you doing in this environment? are you thinking of these macroeconomic issues? guest: definitely. it is the one thing that keeps me up at night. written large for all of the companies in the alternative lending space we need to care about where we are in the macroeconomic cycle. in general my advice, we should prepare for being able to withstand a sudden doubling of the consumer loss rates we have seen.

we should prepare for at least a one and a half axing. emily: thank you. interesting to hear that perspective. thank you for joining us. currently ceo personal capital. thank you. turning to camera technology, go pro is dominating the action camera market with 67% of global market share but one company is hoping to get a bigger cut. ion camera is taking on 13% of the market. >> the video capturing industry has lost the female customer. young adults, moms, they are not carrying camcorders anymore. this is going to recapture that female customer. the idea you can send out a facebook message and it says i'm about to go live, do you want to

take a look, that is what will go on. the next level is live streaming. this is a product that will have a high uptake in volume. for us the volume is going to be there. we finished short of 9%. we are going to double digit market share. the thing about this camera is that if the market accepts this as being the accessory to the smartphone or the third lens to the smartphone the volume is going to grow. we are going to be in a great place for that. the growth is there. the market is there. it is a great place to be. emily: coming up, the ceo of taskrabbit. why her startup has staying power. and the dream lives on.

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emily: uber, airbnb and taskrabbit, the big players shaping the future of the u.s. workforce. i had a chance to sit down with the ceo of taskrabbit and asked her how she plans to scale up the business. first, we are in 20 markets across the u.s.

london was our first international market. there is tons of opportunity in europe. there is also a massive opportunity here with a lot of partnerships that we are rolling out. we launched with amazon in march, if you are shopping on amazon, chances are you need it mounted. you can book a tasker. those are areas of growth we are going to invest in. emily: what is the most common task? leah: housecleaning, handyman services, moving help. it is split evenly. emily: taskrabbit preceded the

rise of instacart. where'd you see taskrabbit in this exploding landscape? leah: we started in 2008. we are proud pioneers of this. but we hear from customers is they want a one-stop shop for all the services. they don't want to have 20 apps on their phone and brands they have to trust. what we're focused on is delivering the one stop shop experience, consistent quality. emily: could you see yourselves in food delivery, or is that what you don't want to do? leah: the margins are top. we have tried different test before. it is not a big focus area. we would much rather help you with a high trust situation around your home. emily: you mentioned the economics. i was talking to bill gurley who

said that he is struggling to understand the economics of and in stuff cart -- instacart. how do you see the sharing economy play out? maybe economics don't work long-term? leah: there is a big concern. there is a lot of investment and companies burning through capital at a high rate that are subsidizing a lot of the costs and the economics. when i started taskrabbit, this was a tough economic time. that forced me to be disciplined about how to spin and capitalize my business. we have created a long-term sustainable model. emily: the other debate is how to classify workers. should they be considered employees or contractors. taskrabbit is contractors. leah: they are.

taskrabbit is a marketplace for the only set up to allow tasker to set their own schedules and except in decline work. those are three big differentiators. a lot of these other companies are top down and saying this is the pricing and i am just going to dispatch you. we are set up differently. our mission is to employ a workforce. emily: when it comes to uber, would you say that is a situation where maybe it would make sense to classify them as employees? leah: for as it is not even something we have had to tackle or deal with today because we are set up so differently. we haven't had to face these lawsuits, regulatory issues. people to realize when they dig into our model it is different.

we have the opportunity to say here is a model that is working. how can you guys apply what we have built into your own business is going forward? emily: where is taskrabbit in two years? leah: we have barely scratched the surface. our mission is to revolutionize how people work on a global scale. i want to see us in more countries on the global market and europe, more partnerships like what we're doing with amazon. emily: after months of the record-setting solo flights, one leg of the trip finally got the best of the plane. the ocean stretch from japan to hawaii. the plane's 17,000 solar cells are taking a breather and before the pilot continues he told us

how he is preparing for his next record-breaking flight. ♪ >> i trained with yoga and meditation, techniques that help you keep the right mindset to fly so long. i know how to use the bathroom, i learned how to survive in the ocean. i have prepared for the worst case. emily: why do you do this? guest: we like to show the technology that we have available. the clean technology that can help us and allow us to do what we do everywhere, not only in aviation, the way we moved in energy efficient ways.

instead of just thinking of producing more and more energy, let's use the energy we have in a better way. that is holy want to promote. emily: will we all be flying in solar powered planes? guest: maybe in 30-40 years. as a passenger you should be patient. emily: the pilot of the solar impulse plane. fascinating guy. he sleeps 20 minutes at a time. incredible. coming up, one of amazon's most aggressive attempts to undercut apple. amazon's new fire tablet selling for $60. and by burberry is debuting its spring collection on snapchat before it hits the runway. emily: it is time for the daily byte.

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emily: it is time for the daily byte. today it is 24 hours. the amount of time you will have to see burberry spring collection on snapchat. pictures will be shown on the burberry snapchat channel starting sunday. then the collection will vanish. snapchat will bring its life story coverage to burberry's show by curating videos and backstage clips.

i wonder how many users can afford anything from burberry? now to amazon, selling its new tablet in a six pack. the new fire tablet costs $50 are you can buy six of them for $250. meaning you get one for free. a long with the new fire tablet, apple announced a new fire tv and a voice activated wand that makes your tv double as a personal assistant. joining me now, ryan, on one to start with you, what do you think of this strategy? market share is negligible. why are they making hardware at all? guest: the market is declining. this is -- emily: the tablet market is

declining but amazon is basically nonexistent. guest: true. less than 1% by our numbers. the strategy is putting more screens in front of people that can buy services and goods. they are not out to make money on the hardware. they have revolutionized the tablet game when they introduced the original fire. the lowest price we had seen. emily: but no one is buying it. guest: good point. emily: what do you make of this strategy? it doesn't make any sense if you don't have amazon prime. guest: we take a look at that business strategy across the media assets including their hardware and software, that they continue to invest in, all they are trying to do is to drive more membership to their amazon prime membership because that drives profitable e-commerce

business for them. prime members spend a significant amount more than the average amazon user. all of their media businesses including their hardware, it is not necessarily to well the market from a technological standpoint, it is to drive traffic to amazon prime. emily: you can watch video on demand, order things more easily. what about the price? $50, or 40 bucks a tablet. will be priced drive demand? guest: the price drives people for kids tablets. it's about putting screens in the car, extra screens around the house. it will drive some demand there. i don't think the sixpack thing is going to drive volume. people don't need six new screens. but they will drive some volume with $50 screens.

not only will they drive more prime services that they have geared this to drive more content towards kids and so forth, curated web browsers built into this as well. it will be successful with kids and those that don't necessarily care to use this as their primary tablet but a screen for recipes and so forth. emily: what about the fire tv set-top box? is that better than the tablet? is there more of an argument to buy something like that? guest: right. it is one of many that are trying to get into the household and bridge the gap between traditional linear television and internet television. there is a lot of competition. most notably apple. what amazon is trying to do is put as -- get as involved as

much as possible in the media consumption, so that they can drive those consumers and have them subscribe to amazon prime because that is where the economics are made on the e-commerce side. it is on the software, the programming, the movie programming. they are starting to step up investments and looking at proprietary content coming down the hike. emily: holiday season coming up. what are people buying? are they going to be buying amazon or apple? guest: iphones are going to be the number one thing and that is not going to change but these are compelling. the fire tv is compelling. it challenges. consumers are confused about what to buy. if you dig in and you are a casual gamer, these are compelling boxes. there is a gaming option they will announce. emily: and the apple tv doesn't

support 4 k. guest: i think these are compelling in terms of the price. $90 and $50 for streaming in gaming in the house, that is compelling. emily: how about you? what is going to be under your tree? guest: p go back to apple. the samsung phones, it seems to be more of the phones as opposed to the tablets. the tablets are not showing much growth, exley some declines. the more mobile, the better. emily: apple going after the business market with the ipad pro. thank you both, and thank you for watching this edition of bloomberg west. have a wonderful weekend. ♪

phil: i'm phil mattingly. mark: and i'm mark halperin, and with all due respect to the others nominated for an emmy -- come on. it's jon hamm's time. ♪ on the show tonight, hillary, bernie, and a filling in the blank, but first, someone at a donald trump event last night called president obama a muslim and trump did not correct them. mr. trump: this man, i like this guy. >> man, ok, we have a problem in this country called muslims. we know our current president is one.