taylor: i'm taylor riggs. this is the "best of bloomberg technology," where we bring you all of our top interviews from this week in tech. coming up, wework rework. the company finally puts an official pause on its ipo plans. what changes need to be made before hitting the public market. plus, record rollout. it was a new high for tesla deliveries, but they did not meet elon musk's lofty productions. -- predictions. we will break down all the numbers for you.

and, microsoft stopped making phones years ago, and now it's back with a new model that will run on google's android system. is now the time to get back into the slowing global smartphone market? but first, to our top story. on monday, wework pulled the plug on its ipo, at least temporarily. the new co-ceo's of the office space company say they want to focus on the core business before going public, which they still plan to do sometime in the future. wework has been burning through cash and is now planning thousands of job cuts. and will put some of their business is up for sale. bloomberg's kurt wagner spoke to wedbush analyst dan ives and bloomberg's ellen huet, who covers the company. ellen: it is official. the ipo will be put on hold. so they said this morning they're going to be pulling it, that confirms a lot of the reporting we have 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. so they're going to be spending

the next few months with these new co-ceos, trying to show wall street, we are going to cut back on expenses, we are making changes at the company, it is no longer a company with this wide variety of businesses alongside its main core business, which is renting out office space. kurt: is there 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 neumann, the ceo and cofounder, stepped down, that there was going to be a lot of changes at the company. all of a sudde you ve two new leaders. people who were both wework insiders but also 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. so 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 that obviously there were 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 am sure the company needs 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 really putting up a white flag, showing investors aren't going to buy some of the business models with left year valuations, but it really hits on cash burn profitability. they have to go back from a financing perspective to next steps here, it is the fork in the road situation. you talked about the first thing, they have to cut costs, invest in 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: i know that softbank 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 softbank's role going to be? dan: especially with neumann 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 the wework with 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 started seeing it with uber and lyft and wework and others, peloton, 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. you have the zooms, the beyond meats, but 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: yeah, so we reported on some of the things they started to do, notably, a symbolic gesture more than anything else, the new ceo says the company wants to help sell the $60 million gulfstream company jet that they bought last year to help adam neumann 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 meetup, 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 about 12,000 or 12,500 employees, so pretty serious. so i think 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? i mean, you have employees who, just a few weeks ago, they were seeing a big payday on the horizon, and all of a sudden the ceo 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 are at wework? ellen: yeah, i have talked to a couple of people who are still there. obviously, 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.

i think for a lot of employees, they're reassessing how much they think their stock is worth, they're worried about their job. they are concerned about what might go forward. i think it's going to be really difficult and i feel for them. kurt: yeah. 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, it has been a black eye, no doubt, for the broader market. i think it also shows that the companies with the strong business models, profitability with a secular trend, there is an appetite for those names, but the ones more frothier that continue to have sort of issues, profitability, issues with financial models, investors in this market, those are not names to get through. especially valuations that are not down around from when they went private.

so 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, i think a line in the sand was drawn here with wework. and i think we are going to see the ramifications for months and maybe years to come. taylor: that was wedbush analyst, dan ives, and bloomberg's ellen huet with our own kurt wagner. coming up, tesla misses the mark. third quarter deliveries set a record of 97,000, 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 bloomberg app, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪

taylor: tesla news dominated the week, as elon musk's 100,000 delivery goal went unmet. the company reported 97,000 deliveries in the third quarter on wednesday. earlier this week, analysts mentioned the 100,000 car delivery goal put forward by musk may have been talk to divert attention from a less flattering trend, falling revenue. to discuss, i was joined by gene munster of loup ventures, and from detroit, david welch. david: it is a record for them, but not a record by much. then, you had musk saying they could probably get to 100,000 vehicles if they pushed. i do wonder if he would have said anything if shares would have been reacting better. i think the other more alarming thing for investors is the fact that most of the vehicles being sold are now lower-priced, lower margin model 3's, and you are

starting to see a lot less take on model s and model x, which are the really expensive vehicles. the question for the investors is, ok, where are the profits going to be coming from if you are selling these smaller, cheaper, lower margin vehicles? taylor: gene, what is your take on the 97,000 number? gene: taylor, i think it is a great number. i am in that camp that it would be perceived better if not for that friday email. there are two topics here -- what is going on with the fundamentals of tesla, and what is going on with communications around the story. 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 into context, it puts them loosely on track to hit the low end of a

range of 360,000 to 400,000 vehicles for the year. when they originally came out with that range, investors said it was a near absurdity that they would do that. but they are tracking toward that low-end. so i think it is, despite the mix of the greater model 3's, it's 82% model 3's is generally consistent with the mix in 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 that continues to be answered. and it seems the u.s., and parts of europe are ready for ev's. taylor: gene, what is your take on what david welch was mentioning, that they are sacrificing price in those margins for the sake of market share, selling the lower-priced vehicles? gene: my view is -- it is true, that is a fact, but my view is the sweet spot of electrification 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 the real sweet spot is the s-curve. i think this is the right thing for the company, to continue to aggressively pursue that part of the market. taylor: david, how is demand in china? david: there is very strong demand in china relative to other markets for electric vehicles, and the government certainly helps that with a lot of programs that basically make manufacturers sell these vehicles there for certain credit systems. and there are a lot of incentives to buy them. in some of the major cities, you cannot get a new registration for a vehicle unless it is some kind of plug-in car. so, there is good demand in china. to gene's point, and it was a good one, it's, to get scale they will have to sell a lot of model 3's, a lot of lower-priced vehicles, and there is an

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

china and what they are going to be doing in europe, the markets more recently have not been favorable to companies that are losing stories. that is not news to anyone. but what is still important is when you have these massive opportunities, and i think electrification falls under a group of undeniable truth, i think that investors will be, despite the trend in the market toward profitability, i think they will more lenient towards tesla than they have been. i think they will continue to give the company room as long as the demand is there. i think they will give them room if 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. but i do not think that profitability is the critical question right now, i think demand is and they are doing a great job. taylor: that was gene munster of loup ventures and bloomberg's david welch.

facebook also was in the news this week, as ceo mark zuckerberg appears poised to take on the u.s. government if senator elizabeth warren wins the presidency. that is from leaked audio obtained by the verge of zuckerberg during a july meeting with employees. mark zuckerberg: with elizabeth warren, who thinks the right answer is to break up the company, if she is elected president, i would bet we have a legal challenge and i bet we would win the legal challenge. so you know, does that still suck for us? yeah. i don't want to have to have a major lawsuit against our own government? i mean, that is not the position you want to be in. we care about our country and we want to work with our government to do good things. but look, at the end of the day, if someone is going to try to threaten something that existential, you go to the mat and you fight.

taylor: zuckerberg also spoke on other topics, including facebook's proposed cryptocurrency libre and its competition with china-based app tiktok. for more, i spoke to a representative who lobbies on behalf of companies like facebook and google, and bloomberg's sarah frier, who covers facebook. carl: it is not only a matter of regulating 20 different companies. let's keep in mind, there are over a dozen different government agencies that have oversight over the tech industry. but, it is also the notion of having a centralized place where platforms can figure out what content is spam, what content are bots, what content is coming from overseas, and then in a more comprehensive fashion, address those problems. that is what mark is talking

about here. since facebook is large, they do have the financial backing and ability to see many different points of attack to better prepare and protect american interests and american democracy. taylor: sarah, talk to me about facebook's argument. i have heard this from several experts. sarah: you have heard it over and over, that being bigger helps them solve the problems more efficiently and with better resources. i just don't really buy it. i think that if you are facebook, and you have all of these different services, certainly, you can say that if you are finding this problem on instagram, you might find it on messenger, too, and you might find it on whatsapp, but there is also collaborations they have done with companies outside of facebook. they have this atlantic counsel to take down terrorist content. they share this terrorist content amongst themselves, they do the same thing with child exploitation 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 where they all share information broadly.

taylor: sarah, i want to pivot quickly to competition. carl brought up the smart point of competition and facebook internally talking about tiktok, a social media and video platform, and facebook is responding to that competition by developing, i believe, it is lasso. did we learn anything today? sarah: it is really interesting that zuckerberg wants to try and push lasso in countries where tiktok is not yet big. and i also found it interesting that he sees tiktok as instagram explore meets instagram stories, and he is going to try to shift instagram in that direction. look, he has tried this many times over the years, copying products, trying to push them out to a similar user base, but we really have not seen that really take hold except for with instagram stories. so it's always a shot in the

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

taylor: the millennial mainstay, forever 21, has filed for bankruptcy. the fast fashion retailer, saying it has to pay $350 million in financing to help it stay afloat, but the bankruptcy shows another sign of the punishing pressures of the broader retail apocalypse, in which the rise of e-commerce is

siphoning away shoppers from brick and mortar chains. for more, i caught up with our bloomberg opinions columnist, sarah halzack. sarah: they said e-commerce comprised 60% of their sales in their 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 sort of eating forever 21's lunch. i think fashionnova is a great example of that. earlyere in early -- an pioneer brand tailored to instagram from the start, and forever 21 has suffered at the hands of brands like that. taylor: you mentioned instagram. talk to me -- how has social media and instagram changed the way the marketing, really, and the way these fast fashion retailers can or cannot survive? sarah: a lot of these retailers have had to partner with influencers, of course, and fashionnova has gotten the likes

of cardi b and kylie jenner to hawk their products on instagram. forever 21 has maybe had a little bit less success in that realm. instagram is also rolling out features like shoppable posts that all of these brands have to figure out how to try to master and keep up with. it is important for any retail brand to understand that ecosystem, but especially for one like forever 21 that courts a teen shopper, it is really important. taylor: we know this story with forever 21, a 50% in this day and age does not cut it. enter stage right, you have e-commerce subscription models. companies like rent the runway, the list goes on, really disrupting this market. what is the difference? what are these models like stitch fix or rent the runway doing to disrupt the market? sarah: stitch fix, in particular, is a data play. they are trying to amass data on

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

sarah: there are definitely idiosyncratic things about forever 21. they over-expanded their stores way too quickly. they had stores that were huge. 35,000 square feet when it only needed to be 10,000 square feet. so 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 how you market to consumers and how you buy your inventory, and even your merchandising decisions in your stores and websites. we are still at this place where retailers have a lot of data and they don't know how to harness it. and the ones that figure out how to actually use it, those that make it actionable, those are the ones that win. taylor: that was sarah halzack 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, bloomberg technology is livestreaming on twitter.

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taylor: welcome back to the "best of bloomberg technology." i am taylor riggs. the u.s. department of justice federal communications commission and attorneys general across the u.s. are keeping a close eye on bank tax. there are possible probes and inquiries into companies like apple, amazon, facebook, and google. as a result there have also been calls from presidential hopefuls like senator elizabeth warren and bernie sanders to break up some of these companies. but now with all eyes on the impeachment inquiry into president trump, does big tech get a breather? on monday, bloomberg's kurt wagner checked in with "bloomberg technology's" eric

newcomer and sally hubbard, director of enforcement strategy at the open market institute. prior to that, sally served as an assistant attorney general in the antitrust bureau of new york state. eric: i think in the short term certainly in terms of the media environment, i mean the fact is antitrust has become a political conversation, and that attention has animated a lot more action than we have seen for many years. so when the story turns to impeachment, there is a degree to which facebook, google, amazon can, you know take a , breath and sort of figure out their strategies. in the long run, these officials know the conversation will turn back to them and keep working, but certainly, for this moment, you know 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 lot of distraction just in the press and on the surface, or is this something that might actually help kind of behind the scenes?

sally: i think it might affect 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. and you know, the political decisions were already made. those were the decisions 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 is obviously the attorneys general, the doj, the fcc. there is the -- there is a the doj, the fcc. sally, i am curious, are any of those organizations perhaps more impacted by an impeachment than others? sally: i would say doj would probably be the most impacted by an impeachment process just know, there have been some implications the attorney general barr could get wrapped up in that whole mess. the doj potentially, but at the

same time, we have the whole antitrust division that is staffed with career antitrust lawyers who are already working away. so in terms of if there is any affect, the agency that would most affected would be the d.o.j., 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 tech companies like microsoft. i am curious, what do you think this does from a distraction standpoint for a lot of these big tech companies? 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. i mean, certainly in sort of the media ecosystem, they just keep getting hit, you know one thing , after another, whether it is sort of apple's handling of its app store, you know, there are just new stories one after another of where these companies have antitrust vulnerabilities. and so i think getting to a

place where you have sort of a more positive message, if that's possible, would be the hope. and so this is a moment where they can sort of collect themselves. but you know i totally agree , that the actual investigation is happening, and that the fact that they got in this 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 the advertising opportunities that facebook and google have. i am wondering, is there any particular market or any particular business line that you think might be the most vulnerable right now? eric: well, i mean, elizabeth warren has been driving this conversation and you know put , out a framework back in march which really focuses on areas where tech companies compete with people on their platforms. if you are google and selling ads, or you are amazon selling products against people in your marketplace, i think those are areas where she is focused on. but 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, you know, there are a lot of vulnerable areas here. kurt: sally, i am wondering, for those of us who, you know, have not necessarily seen this play out as often as others, what are the actual next steps that people should expect? what is the government going to be doing that these tech companies are going to be seeing in the very near future? sally: the next steps are really reviewing some of the document requests. the state attorneys general have issued basically subpoenas to the tech giants, particularly -- you know, there is 50 state a.g.'s who joined together to investigate google. and they served cid's. and nine who are serving cid's to facebook. we have seen the house judiciary subcommittee issue an extensive document request. so right now, it's going to be answering, producing those requests -- i'm sorry, producing documents that are responding to those requests, and then it's going to be millions of documents. so it is going to take time for the attorneys at all of these

organizations and agencies to review it and to figure out where are the strongest claims that can be brought, and how can they build a case? taylor: that was bloomberg's kurt wagner. he checked in with "bloomberg technology's" eric newcomer and sally hubbard of the open markets institute. and coming up, microsoft unveiled its foldable phone but is now the right time for the company to get back into smartphones? we discuss. and waze carpooling hits its one-year anniversary. we look at how users are sharing their cars and not just traffic -- 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 nine inch screen and a redesigned version of its

surface pro hybrid tablet soft top. the star of the new lineup revealed on wednesday is a dual screen mobile phone that will run on google's android operating system, jumping back into a market it exited years ago. for details i spoke with yusuf mehdi microsoft corporate vice president of research and modern life and devices. yusuf: the way we think about it is, we are in the surface business, and we want to solve the problem for customers, how can you be really productive while being mobile? if you have this problem like most of us, where you start an email on your phone, you say, hey, can i get back to you when i get back to my pc? it is because you have that difficulty of getting that salt. we want to have one on your surface and one that fits in your pocket with dual screens. that let's you really be productive and creative. taylor: and why the android software? yusuf: we had announced actually two dual-screen devices. surface duo and surface neo. surface duo is the one that fits in your pocket.

we felt it 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 it as a pc, we put a new expression of windows called windows 10s 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: yeah, the way we think about it, it is exactly right. we think there is an opportunity for a new category. we feel we are at the beginning of a new set of devices we think of as dual screen. we see it in the research. people are actually 44% more productive with two screens, when you have got 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 the beginning. we see the whole industry moving on this opportunity. taylor: you mentioned apps. am i able to use then both microsoft apps and android apps on one? fold them over each other? ituf: the way we think about 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 we have got. we think we will have something special for customers. taylor: talking a little bit about the phone, for a lack of a better word for me, tell me about some of the improvements on the laptop. what are some of the best improvements you have made? yusuf: so some of the best things on surface neo are a couple things. first of all as we said really , the ability to do things you cannot do today. if you are on a teams call or conference call, you can now 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 then 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 doing this interview with you and had my device with me, i could flip it and invert it to see my notes while i am actually showing you on the screen. this ability to run full windows capability and be really productive while being mobile, that is a unique capability. taylor: this is a very, 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 really a super important business for microsoft 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 actually inspiring the ecosystem of windows pc's with our surface devices. so for example, we kickstarted the two-in-one category that most people did not think it really existed or had a market.

it is now a $30 billion market. lastly our devices really open the opportunity for a broader cloud and business productivity market. so office 365, microsoft 365, they shine on top of our new surface devices. so that is really how we see the opportunity from where we are coming from. taylor: quickly here, what are you doing to make sure my privacy is protected? yusuf: well at microsoft, privacy, we believe, is a fundamental human right. we bake it in from the get-go. we are fortunate in that our business model is not predicated on having to make money off other people's data. we want to put that in. we put the user in control. so we maximize transparency and control of your data and let you choose what you choose to share or not share. taylor: that was yusuf mehdi, microsoft corporate vice president of modern life, search and devices. telecom giant verizon is focused almost solely on 5g technology to drive its next wave of growth but it faces stiff competition.

whether t-mobile is able to complete its $26.5 billion takeover of sprint. the combination would make for a three-way race of verizon, at&t, and t-mobile to build and capitalize on the new 5g service. from the techcrunch disrupt conference in san francisco wednesday, i talked to verizon's ceo hans vestberg. hans: [indiscernible] first quarter and for the second quarter. mobility case, we have a plan to have 30 by year-end, 250. we are 13 right now. we are adding every week. we are not only doing that. we have also done nbafl agents and then season hasn't even started. we believe that our 5g for the consumer point of view should be in the most densely populated areas where you have important data and that is where our 5g is [indiscernible] that is where we are focusing right now on our mobility. as you know, we also do 5g home, and 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 the charge a little bit in terms of nationwide rollout. when can we expect from verizon nationwide rollout of 5g? hans: i think that 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 have. we are giving them the first 5g, the first 5g home and smartphone and at the same time we keep the 4g network. we will continue to do that, and when we see that the market is ready we will have a national, -- national coverage as well, but usually, we speak less and we execute and we have it and then we talk. so that is our strategy. taylor: hans, do you need more spectrum for 5g? have you talked about an option for some of those midbands for something that could potentially happen from the fcc?

hans: first of all, there is an ongoing auction so i am limited , to what i can say, but i've said it before. we have all the assets to launch a very competitive 5g experience. if that is coverage or millimeter away for consumers large enterprises, we have all , of those assets. taylor: we talked about 5g, that arguably holds a little more of an advantage for the business customers than the consumer. how can you capitalize on the business customer? hans: i think all will benefit from it. designed from the beginning was very much to make the world cordless for enterprise society so the 5g mobile edge compute that we are going to launch at first center at the end of this year, that is really where you can as an enterprise start innovating. doing a factory wireless for all your robots for example or putting up a 5g campus network or a private network,

all within two point speed and latency that is unparalleled to what you have today. suddenly you can innovate around that. me myself, i have met many of the fortune hundred enterprises in the country. showing the platform we are going to create 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. what is software they need for it. taylor: you know, it is interesting. i have been speaking with some analysts who tried 5g in south korea and other places, and some of them 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 all the hype? hans: i think there's a huge difference. the 3g to 4g was of course an improvement. but to be honest, the move from 4g to 5g is even greater. it is the speed is so much , faster. [indiscernible]

is so much more, and the latency. of course, it is all about an ecosystem that you get devices out, and sometimes we talk a lot about consumers. and they -- and right now, we have four phones already right now, smartphones in the market, all of them are 5g-enabled. so we see that whole ecosystem coming from consumers, but then as you said yourself, but then you have an enterprise basis, and we also have a 5g home basis instead of fiber, which is a total different way of thinking about the business model for fixed wires access, bringing broadband to your home. 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 the same infrastructure. it is not a separate network for all these business case i am talking about, it is the same. taylor: i want to talk about the fundamentals of your business. when can we expect 5g revenues 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 the mobility, we will have an impact of 5g in 2021. when it comes to 5g home, the same, 2021. and when it comes to 5g mobile edge compute, 2022. so we have been very clear with that. remember, we are a large company. 4g will not go away. it is an extremely important sort of technology, and customers are on 4g. 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: and have you modeled out any competition, if the t-mobile-sprint deal does go through? hans: i think we all need to work with our own assets. of course that is happening a lot in the marketplace what you , are listening and thinking about. whatever is happening, we have our strategy and want to execute on our strategy. we believe in our network and 5g platform and the use cases we have, and that is what we are going to execute on.

then of course as we see more competition and discussion around 5g, that just proves the case, how important 5g will be for the country 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 that we had in november one year ago, which ultimately was 10,400 employees leaving us over 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 12 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. so it is how you run a company. taylor: right. that was verizon ceo hans vestberg from the tech disrupt conference wednesday.

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

taylor: last week, rbc analyst mark mahaney called waze and google maps "buried treasure" for alphabet. mahaney also said it is great for advertisers, thanks to all of the data collected on users' rides. this all comes as waze reached one year of his car -- its carpool feature and completed 140,000 shared rides last week. waze ceo and founder noam bardin joined me last week. noam: when waze first got

started, we wanted to keep traffic from getting worse. and the only way we can really impact our everyday traffic challenges is by getting more people into every car. this is what carpool is about. it is very different than ridesharing or other for-profit businesses. this is really about trying to work together as a community to lower the number of cars on the road and really improve our daily life. taylor: talk to me about how much revenue carpool contributes to waze. noam: so we have not released revenue numbers, but carpool in general is about sharing a car, and so the rider actually pays a portion of the cost of driving the car, and the driver gets a portion of that cost back to them. there is money changing hands here, but it's all below what would be considered profit. and this means you are not paying taxes. you are not a commercial driver. you are not a ridesharing business. we limit you to two rides a day. it is really about rides are 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? if so, how do you compete with them? noam: no, not at all.

we are focused very much on the long haul from the suburbs to the city. obviously if you are in a city, it makes a lot of sense to use all the different 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 building public transit, 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. and when you look in your car, and you look at people around you, your cars are empty. we have got extra seats waiting there. we need to take care of the friction, finding someone, dealing with the payments 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. we are sharing data with a lot of different cities, and cities have been very supportive of our carpooling efforts because they see the same problem. if you think about dot or a municipality, they are challenged, how do we 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

examples of cities who started as partners with us for data, but now have gone much deeper to help promote our service together to their citizens. taylor: are there any concerns about privacy in the data sharing? noam: so obviously, you opt into the service. you only share the data you wish to share. and our goal is to allow users to make their own choice. we will show you who the users are 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 only ride with people of your own gender. we have a feature that only allows you to ride with people from your own company. it really 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 today by driving alone. it is extremely expensive, and at the same time, you are creating traffic. so here is a way to make a little money, save time, get into the hov lane and do really do better for the world, because 30% of global emissions are coming from transportation. taylor: you know, noam, at the top of the show, we were talking about how an rbc analyst said

maps and waze have the potential to be monetized. could contribute to google. do you see that monetization of maps helpful, or does that hurt waze? noam: so obviously, as any business, we have to be rational. right? we have to have income to be profitable because if not, we can never achieve our mission. there is a thin line between being mission driven and being you know rational in terms of your 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. right? transportation is a multitrillion dollar business that is all being reinvented in the current years, so there's a lot to go around. that being said, how and who is something that we are all working on together as an industry to try and figure out. taylor: that was waze ceo and founder noam bardin. and that does it for this edition of "the best of bloomberg technology." we bring you all the latest in tech throughout the week. 5:00 new york, 2:00 san francisco.

and "bloomberg technology" is live streaming on twitter. check us out @technology. and be sure to follow our news network @tictoc. this is bloomberg. ♪

paul: welcome to daybreak australia. kathleen: i am kathleen hays. we are counting down to asia's major market open. ♪ paul: here are the top stories we are covering. no great expectations. china's reluctance on a broad trade deal from a list of topics has narrowed considerably. hong kong recoils from one of its worst weekends yes. sandals