♪ taylor: i'm taylor riggs and this is the "best of bloomberg technology." where we bring you all of our top interviews from this week. ework, the wework r company finally puts a pause on its ipo plans. what changes need to be made. , new high for tesla deliveries but they did not meet elon musk's lofty productions.

we break down the numbers. and microsoft stopped making phones years ago and now it's back with a new model that will run on android. is now the time to get back into the slowing global smartphone market? but first, our top story. work pulled the plug on its ipo temporarily, saying they want to focus on the core business before going public, which they still plan to do. they have been a burning through cash and now plan thousands of job cuts. wagner spoke to an analyst and bloomberg's elliott hewitt, who covers the company. >> it is official. the ipo will be put on hold. they'red this morning going to be pulling it, that confirms a lot of the reporting we had in the last week or two which is that the ipo is unlikely to happen in

2019, likely to be pushed until next year. to they're going to be spending the next few months with these new co-c.e.o.s showing wall street we're cutting back on expenses, making changes, the company is no longer a company with this wide variety of businesses alongside its main core business which is renting out office space. kurt: any one specific moment you think gave the officials there the idea that they should pull back on this plan? ellen: i think it seemed pretty clear from the time last tuesday when adam newman, the c.e.o. and co-founder stepped down that there was going to be a lot of changes at the company. all of a sudden you have two new leaders. people who were both wework insiders but had experience at other large companies outside taking over and immediately i think observers including myself were thinking how are they actually going to continue forward with their plan as they had said earlier to finish the ipo in 2019. there is just so much to get done, there has been such a change at

the company, and they were already talking from the first day of new leadership about difficult decisions that they were going to have to make in order for the company to go forward. i think we were not surprised to see that they're putting an official pause as they called it on their plans. kurt: dan, i want to bring you in here. i know there were obviously some other elements of the ipo, there was some credit financing, for example, that was going to come when the ipo happened. can you give us a sense of where wework's financials are right now. i'm sure they need some money. what is the business like? dan: right now, this has been a black eye obviously for wework, as well as the ipo market putting up a white flag showing investors aren't going to buy some of the business models with lowestier -- loftier evaluations, it hits on cash and profitability. they have to go back from a financing perspective to next steps here, it is the fork in the road situation. first thing, they have to cut

costs, invest some of the pieces and really put this car back in the body shop until it comes out maybe healthier for an ipo later this year into next year, you think about best case 2020. kurt: soft bank is obviously heavily involved in this company right now. dan, can you give us a sense of what their involvement might be moving forward. i know there is talk of maybe them providing some of that capital to wework, what is soft bank's role going to be? dan: with newman out, they have to roll up their sleeves and a hands on deck, in terms of just not the financing piece, but the business operations. especially when you look at a lot of employees who joined we work ipo with some of the calm perspectives and now are at least temporarily off the table, they're really going to make sure that the house is in order, look at the business model and really right now what ambassadors are saying, you see with uber and lyft and wework and others, peloton about

it's about profitability. there needs to be a path to profitability as risk starts to come off in this market and it's a fork in the road situation for ipos. wework continues to be the poster child for what ultimately is investors saying no more in terms of these business models that lack profitability at least the path. kurt: ellen, dan mentioned path to profitability. you mentioned tough decisions that need to be made. what actually happens next at wework? ellen: we reported on some of the things they started to do, notably, a symbolic gesture than -- more than anything else, the new c.e.o. says they want to sell the $60 helpon gulfstream jet to adam newman fly around and do travel with his job. that obviously got a lot of headlines, $60 million, they need more than that to keep going. they have also discussed selling several side businesses they acquired in the last few years that includes meet up, managed

by q and conductor and there are also talks about job cuts. as we reported, the company will probably cut maybe in the thousands of jobs, they currently have 12,000 or 12,500 employees, so pretty serious. they're looking around to see where they can make changes and we'll have to see if that comes in different parts of the business or maybe also some trimming in the main business as well. kurt: you mentioned job cuts, what does this do for morale? you have employees just a few weeks ago, they were seeing a big payday on the horizon and all of a sudden the c.e.o. is gone and their jobs may be on the line. what is the morale in the company, how do you move past something like this if you were wework? ellen: it's tough times. you can't imagine how difficult it is to know that there are going to be these things going ahead at your company and not knowing exactly where or going through the change over the last six months. as you said, they really thought that the company was going full

speed ahead to an ipo. for a lot of employees, they're reassessing how much they think their stock is worth, they're worried about their job. they're worried about going forward. i think it's going to be really difficult and i feel for them. kurt: dan, one more for you, what does it mean for the broader ipo market right now, you see wework have these kind of struggles. is this a signal for other companies thinking about ipoing, what do you take away from this from a big picture standpoint? dan: big picture, a black eye , no doubt, for the broader market. i think it also shows that the companies with the strong business models, profit ability with a secular trend, there is an appetite for those names, but the ones more frothier that continue to have sort of issues, investors in this market, those are not names going to get through.

evaluations that are not down around from when they went private. this is a shot across the bow from wall street to the valley, especially on the private side saying, look, we're not going to take some of those private valuations and we're going to command valuations that we feel comfortable with. so i think this was, ultimately, a line in the sand was drawn here with wework. i think we are going to see the ramifications for months and maybe years to come. taylor: that was wedbush analyst dan ives and our own kurt wagner. coming up, tesla misses the mark. third quarter deliveries of set a record, but it's not enough for investors. we will have details. and if you like bloomberg news, check us out on the radio. you can listen on the app come on bloomberg.com, and in the u.s. on sirius xm. at, -- app, bloomberg.com,

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taylor: tesla news dominated the week as elon musk's 100,000 livery goal went unmet. they reported 97,000 deliveries in the third quarter on wednesday. earlier this week, analysts mentioned the delivery goal put forward by musk may have been talk to divert attention from a less flattering trend, falling revenue. i was joined by a guest, and from detroit, david welch. >> it is a record for them, but not a record by much. they couldst say probably get to 100,000 vehicles if they pushed. i wonder if they would be shaving -- saying anything if shares have reacted better. the more alarming thing is that most vehicles are lower-priced, lower margin model threes.

you are starting see a lot less on the expensive vehicles. the question is where are the profits going to be coming from if you are selling these smaller, cheaper, lower margin vehicles. taylor: jean, what is your take on the 97,000 number? gene: it is a good number. i am in that camp that it would be perceived better if not for that email. there are two topics here, what is going on with the fundamentals, and what is going on with communications intesa. elon musk continues to say things that are not good for the stock. in this case, and separately, if we look at the fundamentals, the most important is the fact that they got a record. the 97,000, to put that in context, it puts them on track to hit the low end of a range of 360,000-400,000 vehicles for the year.

originally, investors said it was absurd today that. but they are tracking toward that low-end. so i think it is, despite the mix of the greater model 3's, the 82%, that is consistent with the june quarter. my simple read is i think that this is a sign that the demand question, which is no longer about production, this is a demand question and continues to -- question continues to be answered. and it seems the u.s., and parts of europe are ready for ev's. taylor: what is your take that -- on what david was mentioning, that they are sacrificing price for the sake of market share, selling the lower-priced vehicles? gene: it is true, that is a fact. but my view is the sweet spot is going to be in the lower cost, lower margin vehicles.

and it is still 2% of vehicles in the u.s. so i think that even though that is at a high level, that is not a good trade from higher-margin to lower margin, but the size of the market is so massive that i think this is the right thing for the company to continue to aggressively pursue. taylor: david, how is demand in china? david: there is strong demand relative to other markets. the government certainly helps that with a lot of programs that make manufacturers sell these vehicles for certain credit systems. and there are a lot of incentives to buy them. in certain cities, you cannot get registration for vehicles unless it is a plug-in car. so there is good demand in china. two genes point -- to gene's

one, tond it was a good get scale they will have to sell more lower-priced vehicles, and there is an appetite for it in china and in europe. but the question going forward is still one of margins, because tesla will have to lower costs and show a profit on the se vehicles. they have a very big staff at their plant, they are not the most efficient manufacturer. they have been trying to lean things up in their new factories, but they need to show they can make a profit on these vehicles as they ramp up volume. that is going to be a matter of building up their systems and getting better scale. and proving that they can really operate this company. the shares are no longer trading on the hope that they will grow, they are trading on whether they can execute the business. taylor: any path to profitability? gene: i think eventually, yes, the scalability that david was talking about, they are taking this approach of the fit to

factory ine giga china and europe, the markets more recently have not been favorable. that is not news to anyone. but what is important is when you have these massive opportunities, and electrification falls in a group of undeniable truth, i think that investors will be, despite the trend in the market toward profitability, i think they will be more lenient toward it tesla. -- toward tesla than they have been. they will continue to give the company room as long as the man is there and there is a path to profitability. if i am wrong and they continue to burn cash, i think that if the demand continues to be there, they will be successful at continuing to raise money. they do not need to raise money for a few years. i do nothing profitability is the critical question right now, i think demand is and they are doing a great job.

taylor: facebook also was in the news this week as mark zuckerberg appears poised to take on the u.s. government if senator elizabeth warren wins the presidency. that is from leaked audio obtained of zuckerberg with a july meeting -- in a july meeting with employees. >> with elizabeth warren, if she is elected president, i would bet we have a legal challenge and i bet we would lynn legal challenge. would win the legal challenge. does that still suck for us? yeah. a major lawsuit against our own government? that is not the position we want to be in. we care about our country and wants to work with our government. but look at the end of the day, if some he wants to threaten

you, you go to the mat and he fight. -- and you fight. on othere also spoke topics, including cryptocurrency libre and china-based at tictoc -- tiktok. whooke to a representative lobbies on behalf of companies like facebook and google and sarah frier, who covers facebook. >> is not only a matter of right living 20 different companies. keep in mind there are dozens of companies with -- agencies with oversight over the tech industry. but it is also the notion of having a centralized place where platforms can's bigger out -- can figure out what is spam, what comes from overseas, and comprehensively address those problems. that is what mark is talking about. since facebook is large, they have the backing and ability to see points of attack to prepare

and protect american interests and democracy. talk to me about facebook's argument. i have heard this. >> you have heard it over and over that being bigger helps them solve the problem more efficiently and with better resources. i just don't really buy it. facebookhat if you are and you have all of these different services, certainly you can say that a problem on instagram is on messenger, to, -- too, but there are also collaborations they have had with companies outside of facebook. they do the same thing with child explication content. so that all the companies can take it down at once. and so if the companies are broken up, you can easily have that same kind of arrangement

with they all share information broadly. taylor: i want to pivot quickly to competition. smart point up the about competition internally. social media and video platforms, facebook is responding by developing i believe it is lasso. did we learn anything today? >> it is interesting that zuckerberg wants to try and push lasso in countries where tiktok is not yet big. it is interesting because he as instagram explorer meets instagram stories and he will try to shift instagram in that direction. he has tried this many times, copying products, pushing them out to a similar user base. but we really have not seen that take hold, except for with instagram stories.

so it's always a shot in the dark. we will see if it works. but it is interesting that tiktok is the new threat on the competition side. taylor: that was the general counsel for net choice and bloomberg's sarah frier. president trump's impeachment inquiry takes center stage in washington. will that affect the various antitrust probes? we explored the reach of federal resources. and later, the big 5g rollout. we hear from the verizon ceo. this is bloomberg. ♪

taylor: the millennial mainstay forever 21 has filed for bankruptcy. the fashion retailer says it has to pay $350 million in financing to stay afloat. but the bankruptcy shows another sign of the punishing pressures

of the broader retail apocalypse when the rise of e-commerce siphons shoppers. for more, i caught up with a bloomberg opinions columnist. >> they said in e-commerce comprised 60% of their sales in a court filing, and that would be a lower penetration then we see for the apparel business overall. you just don't have to look that far to see the companies that are eating forever 20 ones -- 2 1's lunch. fashion anova is one -- nova is one, tailored to instagram from the start, and forever 21 has suffered at the hands of brands like that. taylor: you mentioned instagram. how has a social media changed these retailers can survive? >> a lot of these retailers have

had to partner with influencers a has gottennov hawk theirugh -- to products on instagram. forever 21 has had less success. instagram is also rolling out features like shop goal post that these brands -- shoppable posts that these brands have to figure out how to master. it is important for all of these brands, especially one that courts 18 shopper -- a teen shpper. -- shopper. taylor: enter stage right, you have e-commerce subscription models. list goes on, really disrupting this market. what is the difference? what are these models doing to disrupt the market? , in particular, is

a data play. they are trying to amass data on their consumer and have built their brand on that idea. that they are not just thinking of merchandising as an art, but a real science. thinking of everything from the measurement of a sleeve to the aesthetic of a particular garment. all of that is based on feedback they are getting from customers. the theory is that they will be able to manage their inventory in a smarter way and create a more pleasing experience for customers over the long haul. been more of as let 1000 flowers bloom model. a company like forever 21 is getting five shipments a week. some are hits and some are mrs.. -- misses. so these upstarts are bringing something new to the game. taylor: are these idiosyncratic stories or a general theme? that you have to be, like you said, more data-based to succeed

in this market? >> there are definitely idiosyncratic things about forever 21. they over expanded their stores way to quickly. -- too quickly. they have stores that were huge. those are things that are specific to the decisions they made. but to me, there is no doubt that data will play an increasing role in marketing and inventory. even your merchandising decisions in your stores and websites. we are still at this place where retailers have a lot of data and don't know how to harness it. the ones that figure out how to actually use it, those will be the ones that win. taylor: that was sarah of bloomberg opinions. still ahead, microsoft is getting back into the smartphone game. but is now the right time given the global slowdown? we get the details on its foldable phone in a bit. and we are live streaming on

twitter but check us out @tech nology and follow our global breaking news network tictoc on twitter. this is bloomberg. ♪

welcome back to the "best of bloomberg technology." i am taylor riggs. attorney general across the u.s. are keeping a close eye on bank tax. had probes on companies like apple, facebook, and google. there have been calls from presidential hopefuls like elizabeth warren and senator sanders to break up some of these companies. but now there is an impeachment inquiry into president trump, does big tech get a breather?

we have sallied from the open markets institute. prior to that sally served as an , assistant attorney general in bureau of new york state. eric: i think in the short term in terms of the media environment, the fact that antitrust has become a political conversation and that attention has animated a lot more action than we have seen in years, so when the story turns to impeachment, amazon, google, facebook, apple can take a breath and focus on strategy. certainly, for this moment, impeachment has sucked a lot of the oxygen out of the room. kurt: sally, what do you think here? do you think this is a distraction in the press and on the surface, or is this actually something that might help behind the scenes?

sally: i think it might help the press and the coverage in the media, but i don't think it will affect the actual investigations. at this point, they are really in the hands of the antitrust worker bees, you know, the staff attorneys who are working diligently. the political decisions were already made to investigate. now we are in the process of document requests, document review, depositions. all that stuff takes time, and i don't think the impeachment is going to distract from the work that the attorneys are doing on the ground level. kurt: you know, there's a bunch of different investigations. there's obviously the work of the attorney general, the doj, the fcc. sally, i am curious, or any of those perhaps more impacted by the impeachment than others? sally: i would say doj just because there have been some implications of the attorney general.

he could get wrapped up in that whole mess. the doj potentially, but at the same time, we have a whole antitrust division and career lawyers who are already working away. in terms of if there is any affect, i don't think state a.g.'s or the fcc will feel any impact. kurt: eric, we have seen this play out, although it has been a while with big tech companies like microsoft, is there anything they can do to make sure they are not totally derailed by something like this? eric: you know, it just seems like they need to get their message right. certainly, in the media ecosystem, they just keep getting hit, one thing after another, whether it is apple's handling of its app store, you know, there are new stories one after another of where these companies have antitrust vulnerabilities. and so i think getting to a place where you have a more positive message, if that's possible, would be the hope.

and so this is the moment they of collectcan sort themselves. but i totally agree that the investigation is happening in the fact that they got in a situation where they are such a target, now it is somewhat out of their hands. kurt: eric, you mentioned the app store. we were talking before the break about advertising opportunities that facebook and google have. i am wondering is there any , particular market or business line that you you think might be the most vulnerable right now? warrenelcome elizabeth has been driving the conversation, and she put out a statement focusing on areas where tech companies compete. if you are google and selling ads or amazon selling products, against people in your marketplace those are areas she , is focused on. but i think there is so much power in the technology industry, and now that it's a

bipartisan issue, where republicans and democrats are game to go after the tech companies, there are a lot of vulnerable areas here. wondering, foram those who have not seen this play out as often as others, what is the next step? what is the government going to be doing tha these tech companies are going to be seeing in the near future? sally: the next step is really reviewing document basically subpoenas to the tech giants, particularly the 50 state a.g.'s who joined together to investigate google. they served cid's. nine who are serving cid's to facebook. we have seen the house judiciary subcommittee issue extensive document requests. right now, it's going to be answering, producing those requests -- i'm sorry producing , documents that are responding to those requests, and it's going to be millions of documents.

so it is going to take time for attorneys and all of these organizations and agencies to review it and figure out -- where are the strongest claims that can be brought, and how can they build a case or cases? taylor: that was bloomberg's kurt wagner. he checked in with eric newcomer and sally hubbard of the open markets institute. microsoft is looking at the smartphone. is now the right time for the company to get into smartphones? to hit his about anniversary. our exclusive conversation with ceo noam bardin in a bit. this is bloomberg. ♪

taylor: microsoft has unveiled a number of new products, including a new surface laptop with a 360-degree hinge and a redesigned version of its surface pro hybrid laptop.

tablet soft top. the lineup on wednesday is a dual screen mobile phone that will run on android's operating system. the viceith president of microsoft's search. >> we want to solve the problem for customers, how can you be productive while being mobile? hey, can i get back to you when i hit the p.c.? you want to have one that fits in your pocket with dual screens. why the android software?

yusuf: we had announced actually two dual screen devices. we felt surface neo should run android because when you want to be mobile, you want to run the millions of android apps. it made sense to do that. on the surface neo, which is more of a pc-like formfactor when you want to use a pc, we installed a new expression of windows that lets you run windows apps that lets you be super productive and mobile. taylor: the smartphone market is very crowded. is your foldable phone, if i can call it that, your way of differentiating yourself? yusuf: yes, that's exactly right. we think there is an opportunity for a new category. we feel like we are at the beginning of a new set of devices we think of as dual screen. people are actually 44% more productive with two screens when , when you have the ability for your brain to work with right and left. we want to unlock this new category of computing that allows you to be much more creative, bring new types of apps into play, new types of postures for the device, things

you have not seen before, from read mode to tablet mode to laptop to compose, a lot of new capabilities. we think this is just beginning. we want to see the whole industry moving on this opportunity. taylor: you mentioned apps. am i able to use both microsoft and android apps on one phone? yusuf: yeah. on surface duo, what will be great as we will have a superset, the best of android and the best of microsoft together. we have been working with google to make that happen for today's announcement, and we are delighted about the collaboration with that. we think we will have something special for customers. taylor: talking a little bit about the phone, for lack of a better word for me, talk to me about some of the improvements on the laptop. what are some of the best improvements you have made? so some of the best things on surface neo are a couple of things. the ability to do things you cannot do today. if you're on a team call or conference call, you can watch the video, and on the right, take notes and be able to interact between the two. you can add a keyboard when you want to and get really productive and write notes, but if you want, you can take it

off. you can flip it over. so if i was, for example, during this interview with you and had my device with me, i could flip my notes and actually show you on this grain. this ability to run full windows capability and be really productive while being mobile, that is a unique capability. taylor: this is a very crowded market. in just the last few weeks, we have had hardware and product launches from facebook, amazon, apple, you name it. where does your hardware strategy fit into that competitive world? yusuf: for us, the device business is super important in three ways. first and foremost, it has become an amazing business onto itself. it is a multimillion dollar business now that is growing rapidly. secondly, we are inspiring the ecosystem of windows pc's with our surface devices. so for example, we kick started

the two-in-one category that most people did not think existed. lastly, our devices open the opportunity for a broader cloud and business productivity market. so office 365, microsoft 365, they shine on our new surface devices. that is really how we see the opportunity. taylor: quickly here, what are you doing to make sure my privacy is protected? microsoft, wet believe privacy is a fundamental human right. we bake it in from the get-go. we are fortunate our business model is not predicated on having to make money off other people's data. we put the user in control. we maximize transparency and control of your data and let you choose what you choose to share or not share. mehdi, that was yusuf microsoft corporate vice president of modern life and devices. focusing on 5g technology to drive its next wave of growth while it faces competition.

at issue, whether t-mobile will be of complete its takeover of sprint. raceuld make a three-way of verizon, at&t, and t-mobile and capitalize on the new 5g surface. conference on tuesday, ceo, hanso verizon's vestberg. hans: yes, for the mobility case, we have a plan to have 30 by year-end 250. we are adding 13 a week.

we believe that our 5g from the consumer point of view should be in the most populated areas. that is where we are focusing right now on our mobility. in the fourth quarter, we will launch an enterprise service with the all new capabilities of 5g. taylor: you know, at&t has been leading in nationwide rollout. when can we expect verizon's nationwide rollout of 5g? what we are preparing right now is we have the best 4g network in the market. we will continue seeing our customers get the best technology. we will continue to do that, and when we see that the market is ready, we will have national coverage as well, but usually, we speak less and we execute and then we talk. so that is our strategy. taylor: have you talked about an option for some of those midbands for something that

could potentially happen from the fcc? hans: first off, there is an ongoing option, so i am limited but i've saidsay, it before, we have all the assets to launch a competitive 5g experience. mobilize computer, etc. we have , all those assets. taylor: we talked about 5g, that arguably holds a little more advantage for the business customers and the consumer. how can you capitalized on the business customer? hans: i think all will benefit from it. they go from the beginning was to make the world cordless, so the 5g mobile edge compute that we want to launch at the end of

this year, that is really where you can as an enterprise start innovating. or putting up a 5g campus network all with speed and latency unparalleled to what you have today. i have met many of the enterprises in the country. we have shown than the platform we are going to create. this is important for us, with and how they can innovate to us. so this is a partnership with us with the customer, and probably , in some cases, some software developers as well. taylor: you know, it is interesting. i have been speaking with some inlysts who have tried 5g south korea and other places, and some say it does not quite live up to the hype. how was the transition from 3g to 4g compared to 4g to 5g? does 5g live up to the hype? hans: i think there's a huge difference. 4g was a huge difference. but to be honest the move from

, 4g to 5g is even greater. the speed is so much faster. and the latency. of course, it is all about and ecosystem that you get devices out, and sometimes we talk a lot about consumers. and right now, we have four phones right now, four smartphones in the market, all of them are 5g-enabled. we see that whole ecosystem coming from consumers, but then you have an enterprise basis, and yo and a 5g home basis instead of fiber, which is a total different way of thinking about the business model. it is very different to 5g, because you can have several business cases on the same infrastructure, because it is the same network. it is not a separate network for all of these business networks i am talking about, it is the same. taylor: i want to talk about the fundamentals of your business. when can we expect 5g revenue to s to offset the decline in the wireline business?

hans: i think we have been very clear, as we had our capital market days in february, when it comes to mobility, we will have an impact of 5g in 2021. when it comes to 5g home, the same. 2021. when it comes to 5g mobile edge compute, 2022. we have been very lit with that. remember, we are a large company. 4g will not go away. it is an extremely important sort of technology, and remember, that is not strange that you will have 4g customers for a long, long time so you need to continue to have the best 4g network as well. taylor: have you locked out subscriptions if the deal goes through? think that is what we are thinking about. i think that whatever is happening, we have our strategy and want to execute on it. we believe in our network and 5g

platform and the use cases we had, and that is what we will execute on. more discussion around 5g just proves the case, how important 5g will be for the company, for the enterprises, and for the telecom industry. taylor: you have done a restructuring recently. do you feel like you are right sized? hans: i think that -- i am not sure if you are referring to our voluntary program we had in , whichr 1 year ago ultimately was 10,000 after six months. that is finished right now. i think we have done some process changes in the company . we have also sought outsourcing more i.t. that we have never done before. also, 10,000 employees have left the company in 10 months. we continue of course to be efficient, but that is part of what we do every day. but not only that we are also , looking for new growth opportunities. it is how you run a company. taylor: right. that was verizon ceo hans from the tech disrupt conference

wednesday. coming up, it is a notable name in the navigation world -- waze. we will hear from the ceo next on how the carpooling feature is different from ridesharing. this is bloomberg. ♪

week, rbc analyst "veryahaney called waze .reasure" for alphabet he also said it is great for advertisers, thanks for all of the data collected. completed 140,000 shared rides last week. ceo and founder of waze noam

bardin joined me last week. noam: traffic keeps getting worse. the only what impact our every day traffic challenges is by getting more people into every car. this is what carpool is about. it is different from ridesharing or other for-profit businesses. to really improve our daily life. taylor: talk to me about how much revenue carpool contributes to waze. noam: we have not released revenue numbers, but carpool in general is about sharing a car, so the rider actually pays a portion of the cost of driving the car, and the driver gets the portion of that cost that to them. there is money changing hands here, but it's all below what would be considered profit. this means you are not paying taxes. you are not a commercial driver. we are not a ridesharing business. you are limited to two rides a day. it is really about rides happening anyway. if you are driving to work anyway, take someone with you. this is not about you finding a

new job. taylor: do you consider uber pool a competitor? noam: no, not at all. we are focused on the long haul from suburbs to the city. it makes a lot of sense to use the front ridesharing services and different transportation services, but if you live in the suburbs and you are driving in and sitting in an hour of traffic, you don't have many options. no one is investing in roads. the government is not going to save us, so we have to take our future into our own hands. when you look in your car, your car can do. we have extra seats. we need to find someone dealing with pavements, handling everything around that so you can leave your car home and ride with someone else. taylor: are you still doing data sharing with cities? noam: correct. cities have been very supportive of our carpooling efforts because they see the same problem. the challenge is how to get less cars on the road, so we have cities that are actually sponsoring our service, even

subsidizing rides for their citizens. san diego, miami are great exams examples of cities who started as partners with us for data, but have gone much deeper to help promote our service together to their citizens. taylor: are there any concerns about privacy and the data sharing? noam: so obviously, you opt into the service. you only share the data you wish to. our goal is to allow users to make their own choice. we will show you who the users who could ride in the car for you, but you have to decide who you feel comfortable with. we have a feature that allows you to ride only with people of your own gender. we have a feature that only allows you to ride with people from your own company. it depends on how you feel in terms of trust. when you think about it, at the end of the money, you're leaving money on the table by driving alone. it is extremely expensive, and at the same time, you are creating traffic. here is a way to make a little money, save time, get into the hov lane, and really doing better for the world, because

30% of global emissions are coming from transportation. taylor: at the top of the show, we talked about how an rbc analyst said maps and waze had the potential to be monetized. do you see that monetization of maps helpful, or does that hurt waze? obviously, as any business, we have to be rational. if not, we can never achieve our mission. there is a thin line between being mission driven and being rational in terms of financials, and we are very focused on that , and this is why we have to have a rational business model, and there's tremendous potential in maps in general. transportation is a multitrillion dollar business that is being reinvented in the current years, so there's a lot to go around. that being said, how and who is something we are all working on together as an industry to try to figure out. taylor: that was waze ceo and founder noam bardin. that does it for "the best of

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jonathan: from new york for our audience worldwide, i'm jonathan ferro. "bloomberg real yield" starts right now. coming up, a decent payrolls report helping to reduce investor anxiety after a run of weak economic data puts investors on edge, driving treasury yields lower and pushing high-yield spreads wider. let's begin with the big issue, does a decent jobs report change anything at all? >> it didn't change anything in terms of the assessment. >> it wasn't as bad as it could have been. >> this is a muddled, middle type