promised a reception of cheering crowds as part of its invitation. mr. trump travels later to germany for the g20 summit. the visit to warsaw also comes before a high-profile meeting with russian president vladimir putin. there are some concerns about mr. trump's relative inexperience with global affairs ahead of his extended meeting with the former kgb spy master. u.n. ambassador nikki haley condemned north korea's icbm launch today as reckless and irresponsible and a move that would make the world a dangerous place. the missile ended in the sea between the korean peninsula and japan. the security council has been emergency session to discuss the launch. hasemily peggy -- the nypd identify the killer of a 12-year veteran. officials say he shot the officer in an unprovoked attack this morning. global news, 24 hours a day powered by more than 2700

, journalists and analysts in more than 120 countries. i'm alisa parenti. this is bloomberg. "bloomberg technology" is next. ♪ caroline: i'm caroline hyde from london, in for emily chang. this is "bloomberg technology." coming up, a change in ownership. we will analyze a u.s. rival's deal. plus, alibaba enters the ring as the fight to dominate the smart speaker market intensifies. how it stacks up against its rivals. preparesesla's model-3

to hit the road, a speed bump for the electric car giant. while tesla's sales shifted down a gear. first, a massive deal in the digital payments ace -- payment space. this comes after j.p. morgan showed interest, but ultimately backed away from the takeover offer. they hope to gain greater exposure to e-commerce retailers and small businesses through the acquisition. for more, we are joined by bloomberg's editor at large, cory johnson. with me for the hour as guest host is martin mignot. now, i want to kick off with cory first. give us the background of this deal. big exposure to e-commerce, smallr exposure to

business. cory: why is it based out of cincinnati for a global payments business? it is a spinoff from fifth third bank, which tells you the history of this business of payment transactions. with the way this business works, when you go into a store and you use your credit card, the credit -- they find out if you have the money in your account and come back and approve the credit or not, but there are a number of steps that happen behind the scene. that takes a different chunk. you get the verification from the merchant, then the movement of the money between the merchant and the bank, and then the verification at the merchant side. as you go through each of these steps, there's a little bit of money taken each part of the way and it results in billions and billions of dollars. commerce hasof gone from physical stores to online. andpayment infrastructure the companies servicing those

businesses have changed as well. that's why you see vantiv making this move. they want to take advantage of the things happening online because they've done so well already off-line. caroline: let's talk to a man who knows about the online presence. is it all about the graduation of payments to online to on the channel as well -- to omnicha nnel as well? martin: it's a big part of the story. , it's a big market still growing very fast -- it's a big market, still growing very fast. ay is verye worldp well exposed to online. they were the first payment processor for e-commerce in the u.k. in 1994. it's very much part of their dna. they have a global presence in europe and in asia. i think that's part of the story that is attractive to vantiv, which has been mostly focused on more traditional, brick and

mortar retailers, which have been under attack against online players. it is a trend we have seen in some of our companies, the main one being a company based in holland, but with a very global footprint, which is very much playing on the same strengths of a new infrastructure stack, a global footprint, and offering offering.nnel i think that's been very important. emily: co -- caroline: cory, interesting that this is the key move. what about other m&a in this sector? it has been hot. interestingly, it wasn't the only suitor to begin with. jpmorgan was looking in, but perhaps backed away. cory: there have been a number of acquisitions in this area over the last few years, where

you've seen the traditional companies that have had such great business want to have more exposure to e-commerce. you saw heartland payment acquired. forsaw the deal today nearly $10 billion. there is a play here. let's not forget the very specific action amazon took in going after whole foods, if that acquisition is to come through. vantiv shares dropped on that acquisition. all foods uses vantiv to process their payments. although they are not mentioned in the annual report of vantiv, you saw shares drop about 4% on the day of that deal. what if amazon says, we will stick with our existing payment structure, get rid of vantiv, and use our payments processor, which is none other than jpmorgan? it is a competitive space here. you can see that with the m&a old-line with the

payment and processing companies trying to buy the new-line companies. also, the new-line e-commerce companies are kingmakers, particularly amazon. emily: interesting. we saw another deal in europe. -- paymentspany company saying it was being i'd vc's atby american the moment. is it your view that m&a might be the exit route? i thinkthink -- martin: we would like these companies to brazil -- fulfill their potential. they can become public and ipo at some point. some of them have a very large footprint. they don't really need a backer to grow all the way. that's been the pitch from the get-go. that's very much what we are focusing on. caroline: we will see who

jpmorgan eyes up next. brilliant reporting, as ever, from bloomberg's cory johnson. martin will be sticking with me. door, the revolving ericsson chairman agreed to step down in 2018 after seven years on the job, completing an overhaul of top management at the embattled company. the company is in the midst of a transportation -- transformation, refocusing on ericsson's core business, --ling network equipment networking equivalent and pulling back in former areas of expansion. coming up, more tech employees are speaking out against sexual harassment. how tech firms and startups are planning to combat this. and "bloomberg technology" is live streaming on twitter, weekdays at 5:00 p.m. in new york, 10:00 p.m. in london. this is bloomberg. ♪

story we are, a watching. amazon will create 1500 new full-time jobs at its salt lake city center. it will allow workers to pick, pack, and ship smaller customer items. this is amazon's first facility in utah. , stories of sexual harassment within the tech industry continue to come out. vc firms and tech startups have been rocked by numerous sexual misconduct allegations, resulting in several resignations from tech investors, with the latest one coming just this week. as the industry moves to grapple harassment -- as the industry's moved to grapple with harassment danes momentum, questions -- gains momentum,

questions remain. joining me, joe nocera, who wrote about his column -- about this in his column today. still with me, guest host martin mignot. it's pervasive and ingrained is what you wrote in your story, and the tide is now turning as men start to lose their jobs. but just how pervasive was it, is it, and why is it -- the tide now turning? joe: it is so pervasive. there are studies out there that show that 60% of the women who were polled said that they had had to deal with some form of fact -- sexual harassment. i would say that's pretty darn pervasive. it's really gone on for years, because the power imbalance between a venture capitalist who has money and a female founder

who desperately needs money is immense. it's as powerful as a ceo and underling. so, it's really only recently, especially after susan fowler wrote that incredible blog post about her year at uber, which launched, really, the decline and fall of travis kalanick, the ceo, that women have started to come out and not talk in vague generalities, but use their names, so they are on the record, and named the people who harassed them, the men who harassed them. it has been an explosion over the last two weeks in silicon valley over this, and jobs have been lost. there are going to be more explosions because women are going to keep talking about this and more names are going to come out and more jobs are going to be lost. caroline: i'm fascinated with whether this is something that has been talked about in europe

much. i've been in silicon valley for a few months, but it doesn't feel like we are going to get the explosions here that you are seeing in silicon valley. am i entirely wrong? you arei'm afraid wrong. i think the imbalance of power that joe mentioned, between the fact that there are way more men than women, especially in the vc industry, but in the tech industry as a whole, is as true in europe as in the u.s. the issue of the imbalance of power, i'm afraid, is going to be the same here as well. caroline: you think, therefore -- is it jobs that need to be lost here in europe and in asia to start to see the harassment start to come away, but also the dissemination and the diversity start -- the discrimination and the diversity to start to even out? martin: what's been happening the past few weeks and months has been a call to arms for the industry. we've seen a lot of unacceptable behaviors. mary brave behavior from the

women who are speaking up. bravek it's been -- very behavior from the women who are speaking up. i think it's been a very good thing. four female investors as part of our 20-person investor team, which is not terrible, but we should do much better. and we don't have female partners, which i think is not really a good thing. we really need to make it a priority to expand the female partnership at our firm. we are taking that really seriously. caroline: joe, your piece is fascinating. take brave women to come out and speak against tech giants such as uber, to take on the likes of binary 500 startups. but we've also seen it affect other industries. maybe we start to see harassment

decline, but it do we see diverse city pick up as well -- but do we see diversity pick up as well? joe: in a weird way, the harassment is the problem to solve, because it is such an offense. if you make the consequence you're going to lose your job and your reputation, men will stop doing it. that's what the other industries show. gender bias, getting women on board, getting more women founders -- that is much more difficult, although i will say i do think one of the reasons that all this is coming out now is because there are a lot more women founders than there were in the past. there is an increasing number of women who want to get into technology. i think it's their frustration that is driving some of this -- these exposés and could lead to big change. caroline: fascinating from joe. martin, there's interesting news going on in europe. we have a female-founded

company, set up by females themselves. we have diversity vc, which is focused on shining a light on how little they were city there is in the vc -- how little diversity there is in the vc community. what else can be done to ensure that we get over this disgusting hurdle that is going on in the industry? martin: we need to start with us. we need to act on what we can really control. for us, it means making sure we open up and look at the broader range of candidates. if we only look at our personal network, which because we are more male around the table, it orientedore male- as well. i think that's a critical piece. we've been doing that for the past -- from the beginning of the firm, but we really

emphasized that in the past five years, passed 10 years -- past 10 years, but we need to do more. more systematically, one of the issues related to that is, if you look at -- something that needs to be addressed as well, well before people decide to go with a vc. that's an issue with the pipeline. caroline: we hope more entrepreneurs come through as well. martin will be sticking with me. bloomberg view economist joe nocera, who has written business columns for "the new york times." wonderful to have you with us. coming up, earlier, baidu held a conference focusing on its ai ambitions. who is in the driver's seat?

we will bring that to you next. a feature we want to bring to your attention, at tv on the bloomberg. you can watch us live. you can send our producers a message. play along with the charts we bring you on-air. this is for bloomberg subscribers only. this is bloomberg. ♪

caroline: two more airlines say they have now been exempted from the u.s. ban on laptops in airplane cabins. emirates and turkish airlines satisfied american concerns about security. the u.s. band laptops -- banned laptops because it was feared they could contain explosives. news out of china. on wednesday, search engine giant baidu held a conference focusing on its artificial intelligence ambitions. all tech companies are desperate

to get into it before it's too late. baidu is out to prove they are a serious contender in the ai world. joining us, selina wang. still with us, guest host martin mignot. selina, what was unveiled today? it seems to be about driverless cars, rather than voice recognition. selina: this is baidu's inaugural artificial intelligence conference. it was supposed to be a chance for them to show off their technology, new developments in ai, and really get the artificial intelligence community excited and ready to work with baidu. the big news from today was that they unveiled more than 50 partnerships with folks across the board for driverless cars. these players included ford, big suppliers like bosch, ri de-hailing services like grab. baidu basically saying, we want to be the android of the driverless ecosystem. we want to be the open software

platform and work with all the other game changing players to make our technology as good as possible and beat out our rivals. caroline: martin, talk to us about the driverless car ecosystem. going in on a partnership strategy to compete with waymo and uber. martin: i think they are playing catch-up. maymo -- waymo started way before everyone else. they have about 3 million miles with very lows currencies of human drivers -- occurrences of human drivers having to take back the wheel. the other tech players are playing catch-up now. caroline: selina, where do we start? the partnership seems to be a savvy way that baidu is dealing with it. it is quite a short timeline in which they want to get all these cars on the road. can they achieve it? selina: martin made a really good point. by do is playing catch-up --

baidu is playing catch-up. they are behind waymo. the caveat to these partnerships, while it is smart and the best way forward for them, this likely -- these likely are not exclusive partnerships. for these partners, it is in their best interest to be with as many different driverless car providers as possible, just because it is still so early. we don't know exactly who is going to win. but you are right. they want to have the driverless car on the road by 2018, mass production just a few years after that, so they need to do everything possible to get to those timelines, especially as their core business is struggling. so, they have a lot to prove. caroline: martin, as a vc, how are you looking at this space? are you looking to give funding? are these companies already larger than the ones that are really going to make an impact? martin: it has been i would say

by far the hottest area of startups and investment in the past 12 months, 18 months. we've seen startups coming -- picking up every little part of the slack, whether it's hardware, radar, sensors on the car, software. or mapping, even some battery technology. we've seen a bit of everything. we've seen the space moving a lot. there are some players going for the partnerships, others going more integrated in-house development, like waymo. we have been focusing more on services around the car, the intelligent car, with investments like a multi-model, data focused service to help people navigate around the city or helping passengers navigate from city to city with a ridesharing model. those are the types of services

we have been focusing on. we'll be able at some point to leverage, we hope, the self driving car when it gets ready and potentially commoditized. caroline: thank you very much. andght from martin mignot great reporting as ever from "bloomberg technology's" selina wang. sticking with ai. alibaba is out with a new smart speaker to compete with the likes of amazon and google. who else is in the race to own your home? we will discuss next. this is bloomberg. ♪

so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business

delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. alisa: i'm alisa parenti in washington, and you are watching "bloomberg technology." let's begin with a check of your "first word news." president trump discussed the dispute over qatar in a phone call today with egypt's president.

egypt is part of the saudi-led coalition moving to isolate their gulf neighbor because of claims that qatar supports terrorism. trump told him both sides should follow through on the minister curb extremism. north korea's kim jong-un vowed today to never put its weapons programs up for negotiation. that's after successfully testing its first intercontinental ballistic missile. the hardline suggests north korea could conduct more tests until it perfect nuclear missiles capable of striking the united dates -- states. palestinian authority president mahmoud abbas visited the french president today to discuss the latest developments in the middle east peace process. both are expected to discuss the next steps following the international conference hosted in january by former president francois hollande. 12 people, including members of venezuela's parliament, were injured after scuffles inside

the country's opposition-controlled national assembly. a group of government supporters reportedly forced their way in while parliament was in session. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm alisa parenti. this is bloomberg. it is just after 5:00 30 p.m. -- 5:30 p.m. wednesday in washington, 7:30 a.m. in sydney. we are joined by bloomberg's paul allen. with a look at the markets, good morning to you. paul: it looks like it's going to be a positive day on the local market in australia. futures pointing up 0.3%. the trade balance for the month of may is expected to show an improved $1 billion surplus. the nikkei futures are looking next. futures traded out of chicago are a little weaker. keep an eye on shares in japan today. the convenience store announced the first quarter profit which normally -- narrowly missed estimates.

isanese prime minister abe expected to announce a free-trade deal with the european union. that would cap off four years of negotiations. earnings watch also for young china -- yum china, just announcing in the u.s. there was a narrow miss, but same-store sales were up 3%. i'm paul allen in sydney. more from "bloomberg technology" next. ♪ caroline: this is "bloomberg technology." i'm caroline hyde. the competition in digital speaker assistants is getting more intense.

alibaba has unveiled an amazon echo-like device. eachnt and samsung prepared to deliver their own -- develop their own ai-powered speaker. our more, mark gurman and guest host for the hour, martin mignot. talk us through what we have being unveiled from alibaba. is,: the interesting thing only for the first trial, 1000 orders. i'm curious to see how high the price goes once they pass that or if there are even going to be more than 1000 people rushing to buy it. i will assume there are, given how big -- i will assume there will be, given how big alibaba's spread is across asia. 2017 has become the year of the digital speaker. caroline: everyone wants in.

how does it compare therefore with the landscape? why are we seeing the drive to own the home at the moment? what do these companies want within their ecosystem? mark: you saw amazon and google jump in with updates to the ecco line -- echo line, lots of new alexa devices. look,ho show, the echo part of the same family. it's more of a style guide or your wardrobe. apple last month announced the homepod for $350. now you have all these players alibaba,from tencent, samsung trying to jump in. the homepod takes advantage of apple music and siri and homekit and apple's home-based services and other streaming services, where they are trying to make the bulk of their money in the future as hardware sales slow down in some categories.

people really want smart speaker's. you see the demand for alexa. if apple does not create their own or these other players don't create their own, people start buying the amazon product. they really like alexa. they say, hey, maybe i should get some more amazon products, prime music, crime video -- prime video. we are starting to see people want to use those devices. if they don't create their own, they risk losing other product lines to other companies. caroline: let's get a vc take now. martin, when you see this rush for ai -- you were saying how driverless cars are the hottest thing over the last 12 months. is ai the hottest investment, too? is there enough talent to go around, -- let alone enough money? martin: we do have a lot of startups going after that space on the driverless car.

on the smart speaker side, we haven't really seen anyone. very few startups building on top of the alexa. we haven't really seen any startups going after that. i'm a little bit skeptical on that part of the home. we have not seen the ecosystem of developers going after them. even as a user or a potential investor, i would be asking what is the retention. what is the engagement?i've had one for six months and it is basically catching dust on that -- in the cupboard. caroline: mine is a timer. martin: i'm a little bit skeptical because of that. the pure voice interface is a little too simplistic. you don't have feedback of what it understands, what it can actually do. that's the reason why they've been adding screens. if you have a screen and a speaker, it's just an ipad that doesn't move.

i believe voice can complement other things and interface, but this simple voice interface -- skip those. caroline: mark, you go to the app developer conferences for the likes of facebook, apple. are they just not managing to entice enough developers on board? why are we not getting the fleet of startups feeding this ecosystem that perhaps martin would have expected? mark: that's a very good question, very interesting. platformeir siri voice is not open to developers, where one startup can make a speaker device, put siri on top of it and add their own flavor. but microsoft with cortana and amazon with alexa have recently started offering their voice service to be used on other startups' devices. kardon carden -- harmon is coming out with a device.

it will take time to penetrate. the bigger story here is the services that go with these voice-activated systems. what kind of music do you want to subscribe to? what kind of video platform are you going to subscribe to? it's about keeping players to their customers, sticking them together in those ecosystems. the last thing that apple wants his people to use their iphone and an alexa speaker and a is people tonts use their iphone and an alexis windowsr and a pc. the speaker is just one component. caroline: get addicted -- that seems to be the advice. mark, always great analysis from you. martin mignot raising some really valid and interesting points. now to a story that is out of this world. s,ter more than 2 1/2 year richard branson's virginie galactic is poised to --

virgin galactic. full passenger operations should start by the end of 2018. the update is the most detailed since the crash of their original spaceship 2. analysts voiced concern over demand for tesla's model-3. what does elon musk have to say? we talked to the man who wrote the book on elon. tracy: -- this is bloomberg. ♪

caroline: tesla shares tumbled over seven cents in wednesday's trade. analysts have concerns.

goldman sachs and keybanc capital markets said that high demand may hit a plateau. earlier, i spoke with bloomberg technology's ashlee vance, who wrote the book on elon musk. ashlee: we can look at the s and x sales, but the model-3 remains this maker big product -- this make or break product for tesla. over the weekend, we heard from elon they will ship about 30 model-3's this month. the good news is this car is arriving much earlier than tesla products tend to arrive. it's almost on time. the bad news, of course, is that they are talking about kind of this ising 30 cars, and definitely not mass production like we are used to seeing from other automakers. but, really, over the next year, two years, it's how the model-3 sells that will define tesla.

if you are an investor of the company, the only way to share price makes any sense right now is if the model-3 -- the only way the share price makes any sense right now is if the model-3 does well. caroline: the selloff we saw today -- that seems to be digesting those numbers we got late monday, prior to the u.s. holiday, coming from model s, model x sales, and they did seem to disappoint. is there an issue that potentially there is a plateau going on? ashlee: a little bit. tesla seems to blame the lackluster sales on trouble getting a battery pack. that has been concern been haunting the company forever. how many rich people are there that can buy a car that really starts at about $100,000 after you start a clipping it with a few things -- start equipping it with a few things? i've been amazed to see how many

are out there in silicon valley. there's more wealthy people here than i ever imagined. the same in los angeles. you wonder how this plays out globally. maybe, finally, that car is starting to stall a little bit. that's where they make their much higher margins than they will make on the model-3, so it's a problem is that stalls out. caroline: if the model-3 eats into demand, do you think people would rather go for the $35,000 car that still has the tesla finesse or would they still rather go for the luxury s and x? is ae: the model-3 problem. you can buy into the tesla story or elon's story and still get this amazing gadget. elon's been pushing very hard for people to realize the model s and model x, these are luxury, high-end vehicles. he wants those sales to keep going. but i think there's no question that these early adopters, just

people who are into technology and want to get into tesla, the model 3 is going to be the obvious way to go. certainly, it is not just a sort of eased-down version of the model s. its much lower and -- it's much lower-end. it's going to convince people of that. caroline: what will it must be doing -- what will elon musk be doing? how will he be trying to negotiate these, pardon the pun, bumps in the road? ashlee: he is relentless about these things. part of it is just the shine. haveodel x and the model s become a status symbol of sorts, and so, that, i think, will carry on. it will be -- there will be

people who want to buy the best thing that tesla is selling. elon will have huge events for the model 3. we see him on twitter all the time, talking about, yes, we have this car coming, but still think about the model s and the model x. elon is religious about this stuff, and he has this gift -- elon is relentless about this stuff, and he has this gift that others don't have, this free advertising on twitter that is very powerful. caroline: do you think they can push forward and meet these very lofty expectations that are currently being baked in to the share price? ashlee: in my gut, no. tesla has struggled with manufacturing for years. if we know anything, it's that the shipment numbers almost definitely will come in under what the company is having us think about. i think with the share price, though, this can't be based on just a six-month thing. how many model 3's do we ship

through the end of the year? it's a one-year, two-year story. if they can make them at high quality, then the tesla story gets very good. if they struggle over a long period of time, it's a huge issue, because all their competitors are coming with electric cars. their quality is very high. every month that ticks by is at tesla's this advantage. -- tes'la's disadvantage. caroline: elon remains number one shareholder in tesla. he's got more than 20% of the company. he's clearly got skin in the game. do the investor base, those sitting around in silicon valley, worry about the fact that he has so many other distractions, looking at spacex one day, looking at another the next? ashlee: i think people worry about this, but, if we've seen anything over time, it's that

the companies seem to be getting better at delivering on all the things that elon promises. he seems to have much more credibility than he did, say, eight years ago when the companies were really struggling. you look at this guy and you're like, there's no way he can possibly do all this stuff, yet he actually seems to be getting better at it. spacex has really hit its stride. if tesla can get the model 3 out, it buys elon a lot of cred and it would be a remarkable achievement. caroline: that was "bloomberg technology's" ashlee vance. staying with vehicles, all of volvo's new models will have an electric motor starting in 2019. they will offer both hybrid vehicles and those that are fully electric. they say the policy reflects the wishes of customers. amazon's proposed deal with whole foods could be a game changer for food delivery startups. what's next in the space?

this is bloomberg. ♪

caroline: now, a big milestone for lyft. it has announced it is now providing over one million rides per day. the company says its service, which is only available in the united states, has spread to cover 80% of the u.s. population. the announcement highlights the company's growth and momentum as it continues to battle with uber, note it does have a way -- though it does have a way to catch up. uber reaching 5 billion cumulative rights worldwide -- rides worldwide. amazon's acquisition of whole foods is peaking interest -- otherqued the interest of

companies. still with us is martin mignot. is an investor in -- going back to 2015, you wrote a piece saying the $1 billion food tolivery wars would eat in the dominance of traditional grocery retailers. it's happening now. how much further has it got to go? are we hitting saturation point? martin: i think it's the beginning. i'm surprised it's taken so long for traditional retailers to enter the space, to start realizing that they have to do something. it's really taken a long time for some really well-capitalized, cash-rich companies to really move, but i think it's just the beginning. food penetration in the u.s. is close to 1% or 2%. it's a bit closer to 5% in the

u.k. on average for the rest of the retail industry, it's close to 25%. food is much harder to deliver. it's fresh. logistics are compensated. i think -- are complicated. i think there is still a way to go. i would be focusing more on the takeaway market, which i think will eat in the grocery market -- eat into the grocery market. eventually, cooking may go the way of -- caroline: even though we love reading about food and watching it on television? martin: i think it will be really nice for some people, but people -- it takes a lot of time that a lot of people may want to spend withmething else, playing their kids, learning new things, reading, playing games, whatever it could be. they are outsourcing the process of cooking the food. that will take a larger and larger share of the household

spend. caroline: how does the whole foods/amazon deal impact the likes of that which you are invested in? it clearly impacted blue apron and its price when it came from an ipo. does it not compete in quite the same way? martin: i think they don't really today compete, but i think they will over time. the shift is only going to go one way. people will want more and more convenience, more and more of their work being done by other people. more free time. that's what companies like this are doing so well. people want more of that. the price point is still a bit too high. a big driver is reducing the cost of food. caroline: how do they do that? martin: how they do it -- the main way is going to be around owning their own infrastructure.

ofs is this network container kitchens. now it is a professional kitchen in normal buildings as well. you have this livery-only restaurant -- this delivery-only restaurant. if you want to open a restaurant on high street in u.k., it will cost a lot. the bar is really high. that goes into the price of food. if you don't have those very high entry costs and rent, then you can start offering food for a much lower price point, then you open up the market massively and start eating away at the grocery markets. caroline: fascinating discussion. i wish it could go on much longer. it's been wonderful having you here. , my guest host for the hour. that does it for this edition of "bloomberg technology."

we will be back in london for thursday's show, and we will be the hour.a guest for bloomberg technology is live streaming on twitter. check us out at 5:00 p.m. in new york, 10:00 p.m. right here in the city of london. that's all for now. this is bloomberg. ♪

>> from our studios in new york city, this is "charlie rose." charlie: david mccullough is here, one of this country's best known historian, he's won two pulitzer prizes and the presidentialed me oofl freedom. his new intook a cleck of speeches he's delivered over the last couple of decades. it's called "the american spirit: who we are and what we stand requester." i'm pleased to have him back at this table. you've been outspoken about president trump. david: i have. along with a great