♪ ♪ carol: carol massar in for emily chang, and this is "bloomberg technology." we continue coverage from boston, highlighting the innovation and industries that drive the city. we are at reebok headquarters where we will hear how innovation is driving product design. and our guest gives thoughts on

the trade war, market volatility and the future of professional sports. facebook is rolling out a new feature for user privacy, but will it be at the expense of ad sales? we begin with reebok. ago adidas bought the maker of the iconic pump sneaker for $4 billion, and revenue dropped causing more cost cuts. adidas is looking for reebok to expand, and one innovation, liquid technology helping them make shoes faster and cheaper. isthe footwear industry --ing a gemstar in jumpstart. nike made self placing shoes a reality. adidas introduced 3d printing with sneakers. liquid factory is making intricate lightweight designs along with the company's

100% recyclable footwear line. >> this is our 3d printing lab. >> bill mcginnis is the head of reebok future. >> liquid factories are a way of getting away from using molds, like every other factory does, and draw the bottom of the shoe instead. like 3d printing but much faster. >> an effort to speed up and keep up with younger consumers. >> the goal is to go from making one million pairs of one shoe exactly the same and hope everybody likes it, the old model. now we move to smaller and smaller batches, 10,000 instead of 100,000, and as you get tighter and tighter you can get closer and closer to the customer. >> and how is that a benefit to reebok? what are the benefits of new manufacturing? >> you can get a lot faster. you can react much more quickly to consumers. >> reebok isn't alone. rivalscompany adidas and nike and under armour have also

moved into the 3-d printed sneaker game. but reebok's liquid factory material is proprietary. the process uses computer software and robotics to draw she was in three dimensions. >> we are actually faster than the old model. each bottom unit takes a couple minutes to put together, and it is all automated. >> adidas bought reebok in 2006, for $3.8 billion, and in 2010 started a turnaround to reposition it as a fitness brand, signing a partnership with crossfit. adidas says it is committed to the future of reebok, and move its headquarters from the boston suburbs to downtown this year. >> the spirit of the company has changed, dramatically. a very established shoe brand, and moving down here to be in the excitement of this district has the whole place

feeling like a startup. >> it does feel like a startup, breathing new life into its classic white leather sneaker. carol: for more on reebok, let's bring in the company's vice president of performance apparel. so nice to have you with us. i should say, thank you for having us here. [laughter] i want to talk about, you are known for footwear and so much more, but i have to ask what has been so much front and center, the u.s.-china trade negotiations. companyyou focused as a selling around the world? what is important in those headlines? we are trying to assess where manufacturing is for so many companies. >> that is a very good question, and i understand it is top of mind for many people. but we are fortunately part of the body dos group, and have a very diverse -- adidas group and

have a very diversified strategy. carol: you have been doing that for a while? >> yes, and this makes us less dependent on the portion produced in china. carol: that said, china is an important market. >> correct. carol: i am curious, as you innovate new products. i know, i remember your sneakers so well, but you guys made a commitment to being about 100% fitness, and have seen dramatic growth in apparel. talk to me about that. >> well, the fitness industry is not just about footwear, luckily for me. apparel plays an important role, and specifically functional product, innovative product. so one of the examples, the rebook bra we announced last year in august. talking to women, we realized there's a real problem, despite the fact there are a lot of bras out there. they are either peeling paint

allle working out, or not at comfortable. so we have one that combines a second skin feeling with the support. carol: you brought a model of the chemical or compound that makes up this bra? >> correct. fluid, weickening call it sdf. when you press it softly, it is fluid and elastic. but when you approach it with force, it resists. carol: how much are you doing with apparel? it is not just about design, although i see that as well, but about technology, different fabrics, really exploring that to produce new products? >> i have been in the industry now for 25 years. i have to say, over the last 10 years there has been a gigantic leap in innovations in apparel, and a lot of it is because of

manufacturing capabilities we have today, but also the innovations we are seeing on the fabric side. is to find out what the consumer really wants. so everything starts with the consumer, and then we need to bring it back and find new ways, creating new fabrics, new suppliers, or in the case of the pure move bra, going outside the industry to find a solution. carol: does that mean you are working with chemical companies or companies creating different materials? when we all started working out, it was all just the same stretchy fabric, but i wonder what is the future of fitness apparel? >> it is going much more diversified. yes, working with chemical companies, but also working with the mills that create those fabrics, in order to create the right components, the right ingredients that really solve

the problem. and then i would say it is today much more than ever, and it will be even more in the future, about finding those smart fabrics that really allow you to tosonalize your garment your activity, to your body. carol: in terms of the apparel fitness industry, there's a lot of competitors out there. but i understand you have grown that part of the business over the last four years by double digits. do you continue to see that growth? >> yes. luckily, we continue to see that growth. there is a lot of competition, but also a lot of opportunities to allow their. anduse the fitness industry the bigger wellness trend is here to stay. consumers are not only looking for products they can work out in, byproducts they can wear the other 10 hours of the day, when they are maybe out with their children, playing in the playground, or even commuting to work. carol: we are living in those

clothes. we talk about china, and you had your first fashion show in shanghai. he also created, i think it is a creation center in shanghai last year. it is an important market to you. when you are selling into china or into europe, or some other market, the u.s. market, are you designing specifically for that customer? >> so we are looking very closely into the regional specific needs. and it might be as simple as creating products, and then making sure we have asian or japanese sizing available. but we are also looking at big markets like china, what are the product needs specifically for the market? that is why we opened our creation center there, and we are working closely with the shanghai center to make sure we are to duplicate and things, and also we are maximizing innovations for products we are developing here. carol: one last question. someone you partnered with. social influencers, social

media, how important is that getting your message out and getting your brand out? >> it is all part of our approach to storytelling. we want to make sure the consumer not just buys a great product, but also has an emotional connection. the same way you have this emotional connection with the freestyle still, and i have probably with millions of other products in reebok history. this is important for us, because this is what is the long-lasting impact you can make with the consumer. cardi is helping us doing this. carol: great stuff. thank you so much. >> you are welcome. it is a pleasure to be here. we willoming up next, discuss how new legislation has impacted fantasy sports. we have the draft kings ceo coming up. this is bloomberg.

welcome back to "bloomberg technology." in boston, i am carol massar. exactly one year ago the supreme court overturned the professional and amateur sports protection act, opening the way for legal sports betting. seven states have since joined nevada for offering legal sports betting, and daily sports fantasy platform draftkings is receiving the benefits. joining us now is ceo and cofounder of draftkings, jason robin. so nice to talk to you again. jason: nice to talk again as well. carol: can you believe it has been just one year? jason: a lot has happened. feels like more than a year. carol: what has happened? what have you learned since the legalization? jason: it has been exciting. what we learned, there is a lot

that is similar but also a lot of differences from fantasy sports product and how customers respond. carol: is it tougher? jason: i was surprised at how many new customers came on. we thought it would be mostly overlap. about half of our customers in new jersey are brand-new to the platform. we certainly advertise, so i'm sure they knew about the fantasy sports product. carol: is it a different demographic? jason: a little younger, but otherwise quite a similar demographic. carol: so talk to us about the stickiness, about retention rates. you get somebody on your platform, and they keep coming back? jason: it is really seasonal, because it is driven by the sporting calendar. on the fantasy product, we retain almost 80% of customers year to year. it is hard to tell. after the super bowl there is a big drop off, and it picks up again for march madness. hard to tell what the troop

retention rate is. carol: what did you see for those big events? jason: the super bowl was by far the biggest day ever. it was huge. we had an unbelievable amount of participation. march madness was a little spread out. overall we had more activity for march madness than in the super bowl, but over the course of several games instead of one. carol: tell me about esports. in, what do a year you think of the potential? a product wes is had in fantasy for several years. it has a very avid following, and we have cool integrations where you can ask he watched the contests on draft kings. i think it has a lot of potential. it's something that unfortunately in new jersey is currently prohibited on the betting side, so we can't offer esports betting, but i am hopeful over time that will be possible,, because i think it would be a great betting product. carol: what is standing in the way of nationwide adoption of legalized betting, online

betting? jason: i think it will just take time, a state legislative thing. they all have a different process. some have to go to the ballots. carol: what is holding them back? probably everyone would like the additional revenue. jason: i don't think a lot of are being held back. just government is a slow process, and even after they pass laws, and four states in the last two weeks, tennessee, iowa, indiana and colorado. they all have to still go through a process of issuing regulations and licenses. new jersey has been an outlier. west virginia and pennsylvania passed in q2 last year and are just getting operators online in the next quarter or two, so a year later when they finally get them. carol: so it takes a while. how far are we from all 50 states? jason: i don't know about all 50. some states will choose not to for a very long time. i think we will get a very large percentage of the country within 4-5 years, 30-plus states.

carol: i'm curious about mobile. you launched the first mobile app in new jersey, and what additional opportunities do you see with mobile? jason: mobile is where almost all the volume is in new jersey. we have a little coming in from retail, atlantic city, but it is so convenient for people to use mobile devices, which you can use from anywhere in the state. in new jersey overall about 85% of revenue comes from mobile now, so it is really critical, and also how most of the black market operates today. carol: which is nice to know. [laughter] jason: it is what people want to go. carol: where people operate. curious about competition. fox getting into this. how do you see that. the more the merrier, or competition? jason: we always knew this would be competitive. carol: a big media name. jason: i think it is a great thing, and i will tell you why. it mainstreams it in a way we never could on our own, and i think it will cause other

interesting partnership opportunities to emerge. as we know, when one big company makes a move, others start moving faster. a lot of the media companies have been figuring out their strategy, and now you will see real partnerships. carol: could you anticipate more media names doing the same? jason: that is a gas. i don't have any reason to believe other than every market i see, when one big competitor jumps, at least some others start moving. carol: at one point you tried to get together with vandal and that was blocked -- fanduel, and that was blocked by regulars. you have a partnership with caesar's, and they took an equity stake and will get some of your gambling revenue. are you looking to do more with them, a bigger partnership at one point? jason: we have a lot of really exciting things we can do with caesar's. they have an amazing set of resort properties,, and there is a lot we can do over time with them as a partner. we are also partnering with a number of great casino operators, trying to partner with different media companies. disney owns a stake in our company. that is interesting to us.

we think that having multiple relationships is important, and caesar's is a really good one. carol: do you think ultimately you can stay solo, go it alone and have partnerships, or ultimately will you hook up with somebody else as there is more competition? jason: whatever makes sense is what we will do. right now, i feel that our best route is to stay solo. that can change over time. markets consolidate as time goes on. but right now, we have an amazing opportunity in front of us, growing like crazy. 60% growth in q1. carol: on revenue? jason: yes. we have a big opportunity in front of us, and right now we think our best bet is to stay alone. carol: jason, always good to check in with you. jason: thank you for having me. carol: bitcoin see -- draftkings ceo and founder jason robin joining us. facebook is looking to integrate more privacy into the platform, but they could face backlash from advertisers. that story is next.

this is bloomberg. ♪\

carol: i am carol massar, and this is "bloomberg technology" live from boston this week. facebook is close to rolling out a long-awaited privacy feature, but issued a warning to advertisers that improved privacy will have at least one key trade-off, weaker targeting. kurt wegner has the latest. tell us about this new privacy feature, clear history. what is it about? that this is something facebook announced over a year

ago. it allows users to basically take their browsing history from around the web and disconnected from their facebook profiles. right now, facebook knows where most people travel, what websites they are looking at, and uses that information to show them targeted ads. the company says when the feature rolls out, you will be able to disconnect those two data sets. kurt: how easy is it for users to actually use this new feature to protect their browsing data? kurt: that will be the question. since it hasn't rolled out yet, we don't know what it will look like. will it be really prominent? will people be easily able to disconnect this, or will facebook make it a lot more complicated? my guess is it will be buried somewhere. there are so many features on facebook right now. it will probably be one of the things you have to hunt and find, and as a result i am not sure how many people will use that. but we don't know that until it officially rolls out, theoretically sometime soon. carol: when i read this story, i

thought, what does this do to the mobile or search advertising financial model? could it potentially upend it and impact a lot of other companies? kurt: i guess you could imagine that if this does become a really popular feature and everyone suddenly says, whoa, we don't want facebook or others to be following us around the web, showing us ads, maybe this could put pressure on other advertising businesses to offer a similar service. again, i'd be pretty shocked. there is a lot of uproar around privacy stuff, and then a lot of people don't actually follow through and opt out of things. so unless that really happens, this is more a small change for facebook, but something they want to warn advertisers about. carol: how we heard anything yet from the advertising industry about the impact, or how they see this? kurt: well, because this was announced over a year ago, at

this point it is just kind of waiting and waiting for the finish line to get here. so there is not a lot being said right now, but at the time there was a lot of question marks. ite, if people use this, certainly could have an impact if you are a direct response advertiser and want to be retargeting everybody who comes to your website on facebook. this will impact you. but if people aren't using it, it really doesn't matter, and we won't know until it is rolled out. carol: another story i want to ask you about, of course about whatsapp, the chat app owned by facebook as well. a spyware hacking report. what do we know? what is the latest? there was a flurry of stories today. kurt: whatsapp said there was a hack, a third-party organization that kind of offers spyware technology for le tonment clients was ab get into whatsapp. the third-party company says, we

don't know who exactly was using the technology to do it, but whatsapp came out and admitted it happened. they encourage people to update their whatsapp app to make sure they have the latest software on their phone, which includes some kind of prin -- protection from the hack. we don't know how many people are impacted, but definitely a concern. carol: and the company involved, nso software, a company in israel, this is not the first time they have been on everybody's radar in terms of concerns? kurt: yeah. they do have a bit of a reputation for this kind of thing. like i said, they often have government clients. so anytime you have government using the technology to surveilled people, and they say it is used more for crime-fighting and things like that, but you can imagine there's a fine line to walk there looking at someone' messagess for a potential criminal reason versus just

looking to be looking. they heard from facebook, want this to be wrapped up soon. carol: all right, we will leave it there. bloomberg's kurt wegner. coming up, we speak to the cochairmen of bain capital, stephen pagliuca.

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♪ welcome back to a special edition of bloomberg technology live from reebok's headquarters in boston. rising trade tensions between the u.s. and china have market watchers on edge. john williams explained the downside of raising tariffs. is likethink of it, it a supply shock. one will boost inflation by a few tenths. it will effect demand but also it has negative effects on the value chains and how the

economic system works. our next guest is the cochairman of one of the leading private investment firms, baincapital and co-owner of the legendary nba team, the celtics. pagliuca joins us now. i want to talk to you front and center, we have been obsessed by the u.s.-china trade talks, what seems to be fostering. how to use -- posturing. how do you see it? stephen: we have had a trade imbalancestephen: for 25 or 30 years. initially, people were brought out of poverty because of local trade, businesses have prospered but now they are not emerging anymore and it is really a time to rebalance so it is a more fair system. that is what is happening. carol: you have investments in china. earlier sayingon

china is not our friend. how do you see the chinese market in terms of transparency and where they are positioning themselves? stephen: we have had a lot of theyss and they became -- crossed over to become a service economy. for many years it was driven by exports and manufacturing. now it is a services economy. we want to be that affected by the trade issues. issue.ore of a global if you think about it, 500 million dollars of goods comes in from china and $100 million goes out. obviously there should be rebalancing. i hope rebalancing, not retrenchment. there could be negative consequences for each side. carol: what does it mean for china? stephen: we need to rebalance of them taking more of our goods, having similar things on

patents, protection of software. carol: do you think we can get that? stephen: they have come a long way and financial services can take control in china. they realize on a global stage they will have to have the same kind of rules as western economies. we have to negotiate and come to the middle. it is important not to get it done. carol: is our two individuals, president shrum and president -- president xi and president trump that like to win. will that be problematic in terms of getting a deal done? stephen: they are both strong leaders and will recognize it is bad for each country to be in this situation. i am hoping that cooler minds will prevail. there are good leaders. they are trying to get something good done for each country. carol: on the market volatility,

you attribute that to u.s.-china trade negotiations are is there something else? else? s there something stephen: the good news is we are at record low unemployment area and not much inflation. i think it is a strong negotiating position. the markets are probably as high as they have been. we have had an 11 year expansion. so there probably will be some kind of corruption or settling. right now the business we are in, economies are doing well. carol: in terms of the companies under the bane empire, have they been impacted? all of the companies have looked at changing the supply chain if it has to happen, if the cost of goods are going up, most of corporate america has gotten out ahead of this. as soon as this started to go on, our companies work with our

folks to develop action plans. how do you make it work economically? carol: they haven't switched yet? stephen: they have diversified. there are many other countries involved in the global supply chain. can shift their lines. the companies are quick and ample in the u.s. so they will get through this. i would rather not have the trade war for tariffs and have it be settled but companies will be fine. byol: we have been captured the over ipo. -- uber ipo. what did morgan stanley get wrong in terms of bringing the company to market? did they overvalue the company? [speaking simultaneously] stephen: they came out at the low end of the range. i don't know if i would blame anything on morgan stanley. it was a well done offering that we had this volatility with trade, we had market that is volatile in general because it

is at an all-time high so anything to do with trade or political tensions affect the market in the short-term. remember when google went public, it went down and -- carol: facebook too. stephen: there will be some volatility and they got hit at a choppy time in the market. carol: i am curious about the private equity environment, how you see it. there is a lot of cash. what do you think of valuations in terms of the pe deals? stephen: valuations are high. i have a question on too much they chasing deals in 1980's, 1990's, 2000's -- i thought they were all true, but baincapital has grown from $36 million under management to $205 million today. and they are some of the highest returning funds we have had. i've equity really is a great

business model. it comes in and tries to transform businesses. so for the model has proven to gloat -- go global, help mergers and acquisitions, companies be efficient, the whole world has changed in terms of private equity and the value being added by baincapital which was founded on the principle of taking consulting -- consulting skills and reading great is this is. what are the areas you are looking at that you are finding interesting? stephen: we view this as a needle in a haystack, proceed with caution style. we have a team of 1000 people looking at thousands of deals and we cover the waterfront. in the last 10 years we have become specialists in -- we have had a big technology practice so we have reorganized to have vertical markets which include technology, health care, consumer retail, industrial, and financial services. we work together as a team to look at those.

you have to start with husbands -- hydrants -- hundreds of opportunities. you start an real estate last year and raised mortgage rates about $1 billion. did you get that market -- mark? it was a fantastic situation. harvard wanted to get out of the direct business. they had a fantastic group, only three miles away from us. dan cummings and the entire team came over. one day they were at harvard, the next to they were at rain capital. it was seamless. they have focused on some great growth segments in real estate such as medical offices, carly storm facility -- college dorm facilities, biotech, so they have been successful and we are proud to have them be part of the baincapital family. carol: i have got to ask you about sports. i'm curious, sorry you guys are done for the season. what did you learn? stephen: it is hard to have the

last playoff game and not coming back because you think it will go forever. we had a great team, great coach and the ball didn't bounce our way. the credit goes to milwaukee for good baby when the entire nba. that man is an incredible player. we willre is bright, have up to four first-round draft picks. they have a good young crew. the future is bright for our team, but today the ball didn't bounce our way. carol: it is the way it goes sometimes. end of: i watched the toronto-philadelphia and a long shot from way out as time expired was going -- i had visions fact to my high school days of that happening to me, standing and watching the ball go in and your season is over. carol: will you be back with the team who -- kyrie irving be back with the team? stephen: we can't talk about

that. i am curious about sports betting. announcement.n how will that change the landscape? stephen: it is really out there in europe, happening there are so we are behind in that. regulation, the leagues have to be on top of everything to make sure it is true but it will create fan interest. carol: generally have a piece of the action? stephen: they will participate by getting more interest in the games. it will bring people into watch policy what basket is stored. anything that -- scored. anything that causes more eyeballs, it will really add more excitement. carol: good luck next season. stephen pagliuca joining us. after a quick break, uber's

struggle, raising new questions. the tech ipo hype. this is bloomberg. ♪

carol: welcome back to bloomberg technology. uber turned positive in tuesday's session but the stock is below its ipo price of $42. that is raising questions about its handling. someone who knows a lot about -- nop evaluation, stranger to the ipo tech landscape.

someone of their own investments hit the market, interest, -- saw one of their own investments hit the market, pinterest. i want to talk to you about a lot of things. let's talk about uber. what happened? did they price it wrong? you are interested in valuation. very uber is very special. over here.bered it is a new verb. it is a rare thing in the consumer world. everybody has an opinion about the enormous value of that company. it is also a really special company in terms of the historic levels of burn and you could argue they didn't do enough job telling all of us. there are questions on if they are investing in short-term gains or long-term. didn't have a ton of information. carol: with a company that comes out of the gates, they have also

got bankers who are advising them. do you blame the bankers are not helping told the story accurately? -- helping tell the story accurately? kent: ifkent: you step back in 10 years the company created the $65 billion, so it is unprecedented with a couple of exceptions. who knows what people project in terms of the long-term value. armcould argue they didn't people with information enough to be certain of a multi-hundred billion dollar potential outcome. carol: do you think this is somehow impacting longer-term or ,aybe even -- beyond me different type of company. of an uberis more story. there are a host of companies, we talk about pinterest that went public recently.

done incredibly well and they have predictable revenues and visible efficiency. people understand how those businesses are creating value. there is a pipeline of private companies we look at where we understand the business is are working at it will be easier to sell. carol: what about when you have a company that has been around for a decade but still not making money? is it problematic? kent: some people thought so. are they getting a rational return? if you read the uber f1, it was not clear. my gut says i will uber to the airport, this will be -- if it is worth $350 billion or $50 billion it is hard to say. stephen: tell me about -- carol: tell me how you are investing. kent: i spend half my life looking for the next uber ipo, bellyflops aside.

that is hard. think of yourself as a consumer, how many things have come into your household in the neck -- last year or two. it is a handful. we call these earthquakes be a we spend our time looking for these but you don't know where the next one will happen. they happen fast and are rare. we listen in all of the obvious places, silicon valley, new york, then we have to be prepared to pounce when we see them. a lot of what you have seen with incredibly fast rises in valuation of consumer facing specials is a phenomenon that doesn't happen all the time. they will pay all most any price. where are you guys? toast is in the restaurant space, how is that going and where? lynt: we look for general radical market fit. you have seen the legacy

restaurant. this is a cloud-based terminal so it is like a thin tablet that thes in and is updated by constant -- the software engineers and has blown the competition away. that is an easy one. we try to think systematically about every -- every element of the consumer's life including the businesses they interact with. you go in to dental offices and hospitals and think about the technology that is consumer facing that might have an enterprise software model. when we think about consumer space, what is something we are not discussing now but in five years will be ubiquitous? kent: hardware has gotten a bad name with investors because it has been thin margins. we are seeing cool stuff in robotics and we could see many new purpose built hardware devices that have ubiquitous adoption. that is one we are looking for

as a boston element. i invested in a company that had like the best watercooler. like steve jobs designed a watercooler. it is incredible that consumers raise about -- rave about. thank you so much. really appreciate the time. up we will talk the future of mobility and competition from uber with the president of zip car. this is bloomberg. ♪ ♪

uber there was a zip car. it launched in 2007 in boston. i caught up with the president and discussed operating in the city. >> we are based in the innovation district which is where the tech hub is. the vibrant community of companies, people has been a huge success for us. mostp of that it is -- the

important thing is people and talents. we are lucky because we have access to great technology companies in boston but also top universities. boston has got to be a great test lab because you think of urban planning and the urban environment. >> absolutely. it is growing fast but also a good size where there is lots of testing. you see mobility companies being based in boston and doing testing. carol: i have got to ask about the demographics of zip car today. it floored me when i went back to do research, 20 years this company has been around. i remember when it was introduced. tell us about your typical guitar user today. tell me about your top and bottom line growth and user retention. everyone thinks we are a millennial brand because it is so fun and innovative but we actually have members that range from 18 years old to 93. but 40% of the member base are

over 40. its use older. we are serving the people of the city. they are urban, smart, savvy and live and work in the city. we don't really comment on financials because we are part ourhe avis group, but member growth is growing rapidly. as people feel comfortable shedding their car and using services like zip car, it has been a huge momentum. carol: you guys are kind of a great test experiment or great experiment of the whole idea of the sharing economy. you have done research on car is not that teenagers not hitting drivers licenses. it is not just in the u.s. but a global phenomenon. what are you guys seeing as the experiment that, the idea of the sharing economy and people saying, i don't need to own a car? found 19he company was years ago. aere was no such thing as

sharing economy. there was no iphone. when the company was founded the vision was old. it was the view that in the future consumers are going to want to pay for the trip and not the car. that was how the sharing economy was worn. being pioneered, we have been fortunate because we have had 19 years to innovate and experiment how usage is changing. --more and more services netflix, spotify, the movement towards paying for access and less ownership is going to take off. carol: what you have seen over 20 years and there are more options, people say there will be a day when we will not own a car, do you see that happening based on the numbers and data? tracey: especially in cities. 70% of urbanites still on -- own a car. but people will question, there is so much congestion, do i want to drive but number two, the cost of ownership has outweighed

the hassle. services like ours will help propel the personal ownership over time. carol: when someone becomes part of your community, what data do you see they either give up their car or give the plants to buy a car? tracey: we see people considering buying a car and after they join not only do they not buy a car but they use of the forms of public transportation, cycling and walking. they become much more green in how they behave and lives in a city which has been huge for us. but you see them give up and say i will not own a car. tracey: they use our service every single debris we have a program that is accessed for commuters monday through friday. carol: what about retention?

you mentioned netflix. all of these services, some of them spend a lot on marketing and reaching out to consumers and holding on to their user base. give me an idea of that. has that become a bigger part of your financial pie? tracey: for any subsequent business richard -- retention has got to be a metric. what we are focused on is great member experience. it comes down to getting a great service but also a good value. when we think of retention, we think how do we improve the member experience? as we do that, retention will come. carol: i want to ask about uber and lyft. who is your chief competition? urbanites own a car and if we can chip away at that, that is a huge opportunity for us.

carol: that was tracey is thencarol:, president of zip car. wednesday we will be live from the boston chamber of congress speaking with these people. this is bloomberg. ♪

welcome to "daybreak australia." i am paul allen. shery: i am shery ahn. sophie: i am sophie kamaruddin. we are counting down to asia's major market open. ♪ paul: here are the top stories we are covering. wall street recovers as president trump strikes a more optimistic tone in the trade. the dollar strengthens and treasuries fall. the new york fed president sees on effects from the trade war but john williams says there is no