>> i'm corey johnson and this is the "best of bloomberg west." we bring you all the best sbruse from the week in technology. announcing a 3 1/2 billion injection from the sovereign wealth fund and apple giving lift some business cred. we will talk to their chief business officer. and there is such a thing, we're going to take you to the future of the internet. and the u.s. energy secretary

tells us why he is betting big on tech and renewables. but first to our lead, $9 billion, and that's just the start. $9 billion in new money has been arriving in the industry since 2016 and this morning we're learning the saudis are writing uber a check for $1 illion and while these two biggs, a face off between uber and lift. more recently with an endorsement from apple, we caught up with chief business operator and as well as a newcomer. >> had a consumer-friendly -- invented the pure 20eu pure model. they sort of moved away from

that but longtime lift users will certainly think of them this way but in order to get them to grow their user base so, they are saying oh, we can grow here. >> are you saying, oh,? and what is the appeal for the business model of lift that seemed to have the focus in the early days? >> well, it's a huge market first of all and we think it's a huge growth market further company but it's approximately $36 billion spent every year. >> in the u.s.? >> yes. that's taxis, black cars, ride sharing and rental cars. does not include airlines or hotels so it's a big category and a way to bruce people to lift and ride sharing. >> so that's the low-hanging fruit as opposed to people used using a rented car as their

transportation. people in des moines or even this city, this is not a really good taxi city so when uber came around, it started to change individual behavior. that's harder than someone picking up a taxi and then -- >> yes. i would definitely say there's a shift in attitude. in the next four years they are going to make up over 50% of the workforce and they just have a different attitude about car ownership so we see an attitude and shift in transportation as a service. >> and uber started with the business clientele and moved away. >> yes. uber traditionally black car. you think i mean, lyft is really willing to -- and come up with a concierge program. can you talk about the ways

you're sort of sloring -- >> we have a different approach the working with businesses and it really is three parts. the first is we are people first across the board. you may have heard about how we treat you better. which is we really treat drivers with care and respect. >> and they can sit in the front seat. >> yes. they used to fist pump as well, that's gone away. so very customer-focused and very people-first. and being very collaborative. we are lynning to our enterprise clients and they are a spoke for each of them and the third thing is at lyft we believe that mission and vision and values matter and it turns out a lot of our corporate clients agree. >> so using a certain car service company and that's our vendor. that's my users or my employees

are used to using. in fact but something like apple. what do you say to make them choose you? >> well, consumers are already overwhelmingly choosing ride sharing in their personal lives. that's going to turn up with the classic transition we've seen before. and they want same convenience they get in their user applications. so in our case also a friendler ride. >> and it's become more of a verb. >> i mean, i think it's worth pointing out that there's a long road to go here. i mean right now certify which is a sort of independent third party provider says uber has more than 50%, taxis have been

plummeting in business. i spoke with jon zimmer, the president of lyft, and he is angling for the majority share so you've 2ke689 got your work cut out from us. that is correct. and we expect to see continued growth in that category. >> so i guess what i'm not hearing is why i am going to be the next c.e.o. >> the mission of ircompany job and logan really set out with was to reduce pollution and provide communities that we operate in with more convenient mobility solution and this is just an extension of that. it is more cost effective, so it's used to reducing the trool the expenses unless it's a

capital expensive business so that's what they are coming for. >> in ground trips there's just 178% of corporate? >> yes. >> i would have thought the hotels and airlines took up more than that. >> it's also never before been in such a manages category. so put together on a corporate program on a national level. 23w4r i wulled also say it's that they are working with care moore which is a medicare provider basically picking people up and taking them to doctor's appointments. so there's ways you can use it for rides and create modes of transportations. >> there's a few products that are specific for clientele. we are taking all the hassles ut of their expense re-'em bursement concierge. i know they are able to request

that an n behalf for medical transportation. and our corporate cloud said they never want to worry about passing that all-important airport trip. >> that was lyft's chief operating officer with bloomberg news. ails look strong. so what was the problem? we'll dig deep with bucks c.e.o. aaron levy and facebook goes to the ends of the earth and beyond for -- late they are hour.

>> well box shares took a beating this week dropping most in four months this from cloud se seller reporting desell

rator business growth. what happened? take a listen. >> when analysts miss numbers, the analysts miss 2 company. 3w6 you guys delivered what was expected at least. the billions number wasn't what it was talked about and you introduced something caused billions number? >> we don't guide to billings but we areing is more season alty in our business deals, so more of our customers are doing their larger deployments in q 2 and beyond which follows season alty and software options and signed up 5,000 new logos coming onboard but in terms of what tends to swing the

billings number, that has more coming down the pipeline than ever before. >> well, you've always had an breast in big companies. >> we are seeing a bit more pronounced seasonalty. so in q-1 a couple months ago we closed a record number of deals including a few multi-million dollar transactions so we are seeing the back half of the year where we are seeing the largest growth and the bigs number we re changing our structure with business models so we are seeing playing up front. so we will doo a transaction with the customer previously, in many cases a larger customer may pay us with many years in advance. so now what we are doing is

trying to smooth that out by only charging beings per customer only so the year over year comparison just shows lower growth but only because we are doing a change in how we are billing customers. there so over the long run it means cash flow will be much smoother, and it will follow closely.ue much more >> and you've got other companies that have this sort of giant pile of deferred revenue and led them to always beating or not beating the controversy. >> we did beat on our revenue for the quarter but grew the

full year guidance from $351 to $391 million. and you're seeing more giant giant g.p.s. g.p.s. we've not been at it for more than is to years but there's a class of emerging companies that are staying private and don't have make you have stupid conversations and just grow the business as fast as they can and do the things regarding cash management that are best for the healthy in materials of being able to be cash flow break even and it's all been positive to our execution as a company. i do think you have to do a good job and be crystal clear

request wall street about what types of numbers you're going to see and the things like gross margin that will not being sometimes exacerbated in terms of how wall street reacts to it. i certainly -- the benefits we get in terms of whether it's employee lick withty or being able to go out to k34ersened have more transparency, those things have actually all impacted or quarterly check-up is good. when i was on the bye side, it was the hardest thing not just to determine but to figure out what was signal and what was noise. so the film company famously saying "tell the truth." because i trust you but not the company if i was talking to you but help them identify those

realts is our gross margin went coat, coat and from from investments we have been making for the health and welfare for the growth margin which is decline to say and sort of bulk or trend up over time. >> one customer that you think tells your story the best over the last quarter. >> we certainly talk about customers like general electric. where you have a large organization, hundreds of thousands of people and they ed an incredibly explore plane and take everyone they work with and when it came to deciding on what product could actually deploy on that schedule and work with

everybody's users, they chose box. 59 -- will now be in g.e. has a couple hundred thousand actors on the modem is. so long as small businesses are able to work and collaborate and share their information securely. >> coming up we will take you to mary makers mind-blowing report. this is the "best of bloomberg west." we will talk torte founder of adventures and cofounder of -- right here on bloomberg west.

>> one of the motivates 's cipated, venture capital

chalk full of -- will he zed chapman and john butler joined us to parse through the findings. >> one of the reasons people love this report so much is that she gets us out of the every day and goes back 20, 30, 40, even 50 years and there's been $21 trillion of capital growth over the past years. that is much more than doug was fineup in china that's starting to taper off and as a result the numbers overall are coming down. >> except for india. >> that was the one standout.

>> what are they saying about this? >> it's the one country that did see some positive uptick usage and the second largest market behind china passing the united states. >> now john a big part of that is mobile consumption and the notions from this report about what's happening with smart user and mobile 234r5rly use hears the are yet the growth rate would be pretty much flat. i'm sorry, without any it would be flalt but again, this is all happening under smartphones. >> one thing you might want to keep in mind is end yavens love their cheep phones so 23u look at the average price of a 1345r9 phone it's around $100 china nd therefore 200

was a much richer market and you were referring to the slow depoun in china and let's put it into context. five-plus years ago in 2007, that was a market growing wil over 100%. this year the ewan 2k3wr0e9 in due to smare was saturation. all eyes have shifted to where the user opportunity is high but revenue opportunity might be lower because of the popularity of the lower-priced ones. >> but that was when the lower market tended to came in and game with some of young that thong. i mean that's their. and the india was looking, they

4g ly don't have a lot of networks there. so in india they are going to need 4 g phones to access and where he will leverage the power of those networks and that means paying for a higher-priced phone. >> and speak of course phones i got mad at my sirry today yet my echo this morning was like my best friend giving me all kinds of reporters. >> that was a real highlight in areas growth that voice recognition has been getting etter and better as accuracy improves and laten't cri decreases and user >> they could talk about how the numbers are through the roof. >> it's up pretty significantly. >> like up to 55% using

smartphones and voice messages? >> yes and as the software voice recognition also gets better, un,more people use them at home, in the car and not just because it's fun, which is like 20% or so of people she asked that they surveyed us but because it's more convenient. it's more accurate and it's safer. >> that was blom news reporter and senior analyst john but lemplet coming up, we will hear -- if you're ce looking for bloomberg news, you can listen to the bloomberg adio app at bloom.com. across the u.s. on sirius xm. the best of the west continues after the break. get ready for the rio olympic games

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>> welcome back to the best of "bloomberg west." in san francisco they met to figure out how the achieve the goals. ter opec announcing thursday caught up with secretary right after thursday's opec meeting and discussed the future of renewables. take a listen. >> so far globally even as oil prices have come down we still see substantial growth in renubles and more importantly i growth of efficient cri might say we just had a presentation by bloomberg nergy finance.

while we see for example our solar deployment is up by a factory of more than 20 in the last six years. so we see robust growth continuing with the renubles and with efficiency as lead drivers in our clean energy evolution. >> right. and thank you for the shout out for bloomberg energy finance and given all this we have governments making agreement. what is the stats of that accord being ratified before the presidential elections in november? >> well, first of all accord d a big day on eert day when the countries signed the accord and now various countries including the united states have to file a set of articles to join. we have or president obama has committed we will join along with many other country this is

year. threshold each the which requires 55 countries and a 55% of the missions and probably next year we will see the accord come into force. it's a big driver. it's a big deal and frankly i think the paris agreement and smons by 170 countries means that the clean energy direction is clearly inevitable, that's y we have so emphasize innovation and take advantage of what's going to be a multi-trillion-dollar market of clean energy de34r0eu789 across the world. >> of course 2007 presidential election before november and donald trump has said a lot of things including canceling the paris klein agreement.

'5" among that, what would be at frisk a trump presidency? >> well, first of all i'm not going to comment sbeskly on the campaign statements by any candidate. at the appropriate time i would be happy to do so but not at the moment. t me say i think there's a misunderstooding and would say we set efficiency standards for various kinds of equipment and those standards are not something we just think of in the morning and issue in the afternoon. these take years of a process of rulemaking and any variation would take a similar long process. i think it would be foolish to do so because of the issues and more than half a trillion of --

not to mention avoiding millions of tons of co 2 and the clean energy innovation agenda has achieved very strong bipartisan support on critical. you can just look at the set of bills that have passed both the energy policy bill and appropriations, the budget act for our department, they both expliss itly called out the innovation agenda as snag happened with bipartisan summit. >> that was the energy secretary and bloomberg anchor scarlet if you. we sat down with some of the key players driving change towards a lower carbon future but we are today, what we have agreed to in paris, how tough those goals are. paris climate agreement as six months old, 160 countries

need to implement new policies to meet ambitious goals. things like keeping temperatures below 1.5 degrees from preindustrial levels and reaching that zero admissions before the end of this century. 25, they will cut greenhouse admissions. -- greenhouse emissions. compare that to five gigawatts the country has today. the world is far from achieving these goals. biggest would need to install their clean-air commitment by 2030. on this list, china, the u.s., eu, brazil, japan, and mexico.

making these targets achievable well require big changes. can we get there? the race to a greener future is on. >> there is an overall notion that the answers that exists, want to make these commitments in paris might not be out there yet. is that a fair way to look at this? think that,eople but last year, energy additions were mostly wind and solar. we are doing a lot. more than twice as much as a, 200 $60 billion went into clean energy then dirty energy. globally. it is happening around the world.

last year, more money was spent in the emerging markets. >> tell us what you do. we are generation zero admissions. the reason climate change is a threat, that we all need to work on. everyone needs to join the generation. we tackle the problem of urban mobility. 30 million americans travel less than 20 miles a day. we want to get them to electric mobility. even if they get to cars, they will be driving around with three empty seats. we have a motorcycle. emily chang. she has never driven a scooter. that is the world's first

electric connected scooter. it gets to 30 miles with one charge. a lot of people care about climate change. this is the way you participate. >> what has been the reaction to your wares? interestjority of the has been in larger scale systems.

the response has been positive. it has been waiting for the first point of this off grid household to afford a product like ours and to see the scale before the ministers. >> coming up, the u.s. ambassador with extensive experience in africa joins us with a big disruption taking place there.

>> some of the biggest names in

last year's summit was held in kenya. failed joinedreen emily chang last week along with david kirkpatrick. -- linda thomas greenfield joined emily chang last week with david kirkpatrick. >> they skipped a lot of steps to get to where they are today. >> i would describe technology as thriving. an interest in improving access to technology. one of the areas africans skip over technology is in the telephone technology. they never had land lines in an

expansive way. the use of cell phones became popular. bankingook the lead in via telephone and communications the a cell phones, and a way that did not happen in the united dates for a number of reasons. one being we had other technology. go into the deepest village in the middle of nowhere on aid to her road and you will see a market woman or village woman, a chief with a working cell phone. forhat makes africa right tech disruption? 10africa had six of the fastest growing economies. companies not

recognized in previous years. companies are beginning to see the opportunities and resources that are available in africa that they can invest in. they know these opportunities can be profitable. >> we talk a lot about tech in china, europe, india. we almost never talk about technology in africa. who has covered technology for a long time, why has it been absent? africaon't talk about enough in general. what is interesting is there is in suzy as a mom on young people in cities all over the world, especially big cities like cairo nairobi, ghana.

iambic curious to hear the secretary talk about this. lagos, things were different there. nigeria is in an economic decline. think that is a problem that will slow down the opportunity? >> africa is suffering from the occurownturns we see elsewhere. there is also enthusiasm among african youth to connect to technology. i see this as an opportunity. most leaders see it as an opportunity. that is one reason the global entrepreneurship summit was hosted in kenya last year.

african countries will participate in silicon valley in june. >> what other kind of companies or startups do you see taking off in africa? >> a mobile banking is the biggest. we see market women using technology to get their products to market, huge banking operations that use technology beyond the cell phone technology. entrepreneurs who are tech savvy, who come up with new ideas they want to bring into the technology scene, who are looking for opportunities. >> chinese investors are interested in investing in africa to a greater extent than the united states. how does that play out?

>> amazing opportunities for american companies. they are desired on the continent of africa. encouragenge is to companies to look at the opportunities available to them in africa and take a chance and invest. >> coming up, houston, we have a mark zuckerberg problem. look at nasa and there out of this world social media strategy. ♪

>> facebook posted its first live event from space. the latest in what has been an effort by nasa to ramp up its social media outreach. we hear from jason townsend. we are sharing what is going on. we have incredible images and an incredible story to tell about exploring. we are looking at other planets

and what is going on in the universe and earth. being able to share that is an incredible story to tell. we are able to connect in a way with social media that is successful. >> the numbers are through the roof. nasa's mission to large, to try to discover what is going on in the universe? >> social media has given a voice to missions that were overshadowed by larger programs. people are able to be embedded with the science team analyzing data from the hubble space telescope or engineers building the next great telescope. >> it is amazing.

kid,nk about when i was a the apollo missions, watching that. this is the way media is consumed. nasa has captivated imagination. your twitter account has more followers than beyonce or leonardo dicaprio. we are studying stars of a different kind. everyone wants to use the that. kid, theyone is a have that wonderment. what do they want to be when they grow up? they want to be an astronaut. who are that in people adults now, inspiring the next generation of kids to go and explore, that is what social media connects with on a visceral level. we have this amazing, stunning, compelling imagery. why would we not want to connect

? crowds have responded accordingly. everyre are lessons social media manager, every company could take from your approach. is there one that could be boiled down and applied to every business out there? >> not every business has a rocket ship or astronaut. forming fans out there a community around your product. if you don't tap into that, they are going to talk about you regardless. if we can connect in a way that lets the community come together and realize they are not alone, it enables the conversation to happen and everyone to go and be part of it. it might be a product or something going on in your company. bringing people together is how you can use social media for maximum effect. >> that was jason townsend.

tune in wednesday. see you. ♪

carol: welcome to bloomberg businessweek. of real-life consequences takata's recall. canada's fire from hell. all of that up ahead on bloomberg businessweek. a lot of people who do not like donald trump have analogized him to fascist of old.