faster than a call. easy as a tap. now that's simple, easy, awesome. emily: welcome to "bloomberg technology," i am emily chang. uber posting its first decline in its ride-hailing business, showing the pandemic continuing to wreak havoc on the on demand transportation business. markets ending the day higher, tech giving them a bit of a boost as unemployment claims continue to soar to record levels. 3 million more new jobless claims, bringing the total to

33.5 million filed in the last seven weeks. i want to dig deeper into these results, uber inching closer to a profit despite these bad profits. i want to bring in taylor riggs. let's dig in. shares spiking after hours despite not good results when it comes to ride-hailing. the business boosted by uber eats. you gotwhat is key is the ceo said rides are rebounding in places like georgia and texas where sheltering in place rules have been eased. recoveryaid he sees and this was the news i was waiting for, the cfo has said he does see profitability in 2021. lyft had been aiming

for those targets. all the notes said as it comes to lyft, they were not going to be looking at profitability until the first half of 2022. to get guidance about maintaining that target in 2021 is very key. that is when you saw the stock reverse from what was a 3% drop to what is an 8% gain. let me walk you through some of the numbers -- emily: go ahead. i wanted to mention the business also getting leaner as a result of some of the layoffs they are making. they announced laying off 14% of the company. the memo about the layoffs indicated they will be more. you wonder if this smaller and leaner uber helps get the company get to that profitability they are shooting

for. taylor: you are exactly right. in terms of the cost cutting they have to do, i would note the magnitude of the losses they had in the quarter. if you look at adjustments, less than 600 million dollars. a little better than expected. if you include the write-downs on investments for the business, 2.9 billion dollars of losses. that is triple the loss of a year ago. stake, so yous a are going to see them and i know you will talk about this on your show. offloading the bicycle and scooter businesses. they are trying to offload some of these assets as well as look at the cost cutting they are doing and the right down on the investment. this is having a staggering loss on their income, almost $3 billion. again, furthering those cost because bring measures to see that profitability by about 2021

or so. actually, we've got the ceo of lyme waiting to talk to us. what do you think about uber v ersus lyft? is less exposed. perhaps not as bad as some thought they could be. do we have any clarity about whether uber or lyft is in a better position to whether the pandemic? crushed it. eats they were growing 52%. that was 300 million dollars more than expected. that really helped them despite a decline in the ridesharing business. this is the case where the diversification of the business, having that uber eats business is going to help them.

coming into this report, there was some concern given that uber said they had experienced revenue losses in january and february. analysts were more optimistic on lyft, given they were only tied to the north american business and revenue only started to decline in march. this might change the game now that uber eats is so much better than people thought. it really is that geographic and different business line that really could help them going forward. i will say the profitability could be a game changer given analysts thought lyft might not be profitable until 2022. has, you could see uber more levers to pull. interesting, all right, taylor riggs. thank you for breaking it down. resultsdive into uber's

later. i do want to bring in the new ceo of lyme on this news that uber is leading an investment lyme -- into lyme and also offloading its own scooter and bike sharing business. wayne is with us now. as are replacing brad bao ceo. you have this new infusion of capital after you had to lay off staff. what does this new money allow you to do? >> thank you for having me. today is a big day for lyme. this infusion of cash means we will be able to whether this downturn and have the capital to come back and bring it to more cities when we do come out of this covid-19 crisis. for a lot of our

early investors. wayne, you worked at uber for five years. i am curious about them offloading to you. if it did not make sense for them, why does it make sense for line? as uberhing, i see this making a bet in micro mobility. they are bringing the jump assets onto the lime platform where we have a leading position in micro ability. are going to get access to the same scooters and bicycles that matter. all of the access and products and investment into a platform that is emerging as the winner in this space. emily: is it a win-win?

you have retreated from a dozen markets, you have caused or wound down the business in other markets, all but south korea. when are you planning to reopen? what does that look like given the uncertainty? we have actually relaunched in a dozen or so cities. remarkable.is not only that, i think as people exit covid-19, they will be looking for a safe way to move around the city. micro mobility is open air single passenger. if you want to move around a city while observing social distancing, there is no better mode then micro mobility. korea, where we have been this whole time, one of the harder hit places.

it is hitting all-time high numbers today. in the united states, we are seeing trips that are twice as long, and people are taking scooters all the way to work. shelter-in-place, there is an opportunity for micro mobility. they will have their cities and because we are a relatively small part, even if 1% go from micro mobility, the overall marketplace for scooters and bikes. emily: what is your plan to keep scooters safe? you have multiple people on these things. this is probably never something you would have to think about. it is relevant. how do you ensure this is a safe option? >> that is a great question. warehouseerhauled our

operation. we brought in experts. we sanitize every scooter, we make sure that when it is out, it is in perfect condition. as passengers use our scooters, we are asking everyone to observe local guidelines. wash your hands, don't touch your face. the number one way covid-19 is spread is human to human contact. you are by yourself, open air single passenger. is probably one of the safest ways to move around. we see that in markets that are opening up. it is not just people coming back. new people who never gave scooters and bikes a chance are trying it because they want to move around in a safe way. to solve their transportation concerns. emily: many companies are

reinventing the way they do business. do you see other opportunities? what are you throwing around the room in terms of your brainstorming sessions about what you can do to meet the needs in this new world? food delivery, for example? i think the biggest e isrtunity for lim telling the story of micro mobility. most people had never taken lime before. people delivering more groceries, working out at home. one of the key ways is if i don't want to be next to somebody, i want to be traveling while observing social distancing. how do i do that in a cheap way? a safe and much more

environmentally friendly alternative. the key thing right now is stay focused on micro mobility. this is a moment. people will consider this. if you look at the numbers out of china, they are starting to come back. business isic bike exploding. people are making this calculation, saying this is a great way to move. if you look at the way cities have changed, paris is going to put in new bike lanes. n, new york, they are going to legalize scooters. recognizing the value and changing infrastructure to meet this moment. this latestng into onnd of funding, valued lime half $1 billion, less than half

of what the latest fundraising round valued you at last year. been lesshave optimistic about your business model given how unprofitable it has shown to be. is this a smaller business opportunity? certainly you see one opportunity. is it smaller than maybe what you thought it was a year ago? >> i don't think so. it is bigger than ever. we are coming in at a lower evaluation. we are not the only company in facing ant that is lower evaluation. the more important thing is this round of funding will be enough to whether whatever storm is ahead of us. you are asking about profitability. one of the things we have been

focused on is building the business. we were improving profitability every month going into winter. we have a seasonal business. we hit our highest margin in our history. we were just about to become profitable and then covid-19 hit. our will allow us to replay 2020 playbook and i have every confidence that with this new funding, lime will be cash flow positive in 2021. emily: given the uber relationship, do you see more opportunities to partner and work together? >> i do. i have learned so much from my time working for dara. dara talks about the platform strategy, ensuring uber is a

platform for all forms of transportation. as part of this investment, it is about deepening that connection, to find lime scooters on the app globally. we are going to deepen that relationship over time. that is a huge sign of uber's trust in lime. you've had a couple of significant rounds of layoffs so far. will we see more? emily, it has been really tough. certainly as somebody who had to say goodbye to a lot of good friends, it has not been easy. we are not the only company going through a lot of hard choices this year. based on this new

round of funding, expect we will have any new layoffs. i will say this, we take these things seriously. as we look to the future, our goal is that this funding will get us to profitability and we won't have to make these hard choices. and what about the competition? there were so many companies betting on scooters. we had to believe not all of them would survive. the consolidation is happening. do you see more consolidation? i definitely do. of1 will be a year consolidation. it is a great thing. --covid-19 is creating lime,

we are bigger than our competitors and now with jump on the platform, we will be even bigger. when i look at the micro mobility space, 2021 will clarify, we will be one of the only companies with the funding to compete, the biggest ,latform, the support of uber and integration with google maps nobody else has, and we have the best brand and hardware, fromding the best hardware jump, which we are excited to operate and scale. they have done a great job. all of those advantages are going to be compounding nic 2021 -- and i see 2021. to talkayne ting, good to you. we will watch to see how things play out, and you in your new

role. thank you for joining us. >> thank you for having me. emily: coming up, what is a carmaker to do and it can't make cars? tesla is not making any cars around the world. we will tell you why. this is bloomberg. ♪

i think possessions weigh you down. they are an attack factor. billionaire,, you've got all this stuff. what are you going to do? they: that is elon musk on joe rogan experience podcast explaining why he is going more than a little marie condo. he has put two houses on the market as tesla is not producing any cars around the world at this moment. bloomberg is reporting tesla has halted production at its shanghai china factory and we know production has been halted at its headquarters in california. joining me to discuss is the -- thank youartner

for joining us. we don't understand yet why the factory in shanghai has shut down. tore is reporting it is tied supply issues, equipment issues. what do you think is the reason? tesla has a complicated supply chain. they tried to set up this new supply factory in shanghai. they did a good job getting the government to get behind them. they have used the same suppliers they've used for their the plant innd shanghai to produce the same goods. common or has a lot of commonality. withve challenges production out of mexico, out of the u.s., where they are shut down with covid. likely that is creating a problem. no build parts.

it is too hard to retrofit them. a no buildher hit part or they have an internal problem that is going to delay their ability to produce as efficiently as they want to and they realize without the supply then, from mexico and united states over to china, they have a challenge to deal with right now. they are a little bit blind -- ifly: this makes me wonder and when tesla restarts production in fremont, california, can they just start back up? or could they face supply issues here given the pandemic is probably continuing to disrupt supply chains we don't realize? this is the canary in the coal mine for the automotive industry. just in time for

production. feed supplyy will chain tesla. we are hearing they are targeting a restart on the 18th. if they do that, we don't know when mexico will be back up and without a clear indication, it will be hard to see how they can actually build what they want to in a controlled and organized way. there's other work in the united states to get supplies up and running. i am assuming the supply base is impacting tesla right now. i was on a call this morning where the organization ceo, they are really trying to coordinate and get things done, so there is clear regulations from the government in terms of what needs to be done to open up. there is a call tomorrow morning the mexican government government is having with the

same suppliers. you don't have enough parts to just run. you have to have suppliers running. emily: how would you compare tesla's position to other automakers? subject tokers are different issues right now. is tesla in a better or worse position? is this an opportunity for a competitor to make some gains on tesla? ambrose: i don't think it is an opportunity. the seraph team looked at this and we think they are in a good position. elon musk made a commitment to move a lot of the supply base to other plants or suppliers in china. i think they will be able to move faster. the entire automotive industry is having problems. the systems are not set to deal

with this. the computer systems are not configured to deal with this. as we try to figure out what is wrong, we have to run tools. we have a side company that looks at what is going on, what materials you have, what do you need to build that car? we are looking at that now and overlooking where you have covid shutdowns. there are a lot of red lights right now because we don't know what is going to be happening in mexico and some of the states have not produced clear regulations or authority for automotive suppliers to restart. they need to restart almost a full week before. emily: love the metaphor there. ambrose conroy, thank you for sharing your insight with us.

zynga up, talking about gaming. the one industry that seems to be somewhat pandemic proof. we will speak with the ceo next. this is bloomberg. ♪

emily: welcome back to "bloomberg technology." headlines rolling in from facebook, saying in a memo to its employees that the company does not see opening offices until at least july 6, and also telling employees they can work home through the end of the year, yes, until 2021. all these companies developing different return to work strategies. we wonder what that means in terms of the impact on business, but facebook saying it does not expect offices to open until at least july 6, and employees can

work from home through the end of the year. meantime, i want to move to gaming, a business that has fared quite well. reported its best first quarter indicator this week. i want to bring in the ceo, frank gibeau, who joins me on the phone. break it down for us. obviously your games are social, mobile, and mostly free, which is what people want right now. what kinds of trends in activity are you seeing? frank: right now, as people are sheltering in place, they are really turning to games like never before. they are finding that games are incredibly engaging. it is a refuge from the stress. at the same time, it is a compelling way to stay socially connected with friends and

family. it is breaking down the social distancing people are experiencing now. saw was intrends we our first quarter, it was normal in terms of performance. toward the end of march was when you started to see the effects of shelter-in-place. we saw large jumps in audience engagement, the number of times people play the games per day, how often they will be playing and how long, and that has carried into april strongly. you see a large audience gain in april across all of our portfolios. many game companies are experiencing this. our games are free to play and largely driven by in app purchasing, but we also have a sizable add business. there was a bit of a compression , but fortunately we were able

to offset some of those losses by extending engagement curves of our games. therefore, we saw less of an impact in our advertising business then more traditional networks. emily: there is obviously concerned that the advertising business will continue to be hit hard as the economic fallout continues. you did bump up your outlook, but not as much as some investors had hoped. why do you think investors were not as optimistic about the results as, perhaps, you are? frank: i think if you look at how we guided the year for 2020, we recognized that the second half of the year still has a lot of uncertainty relative to economic downturn, how fast shelter-in-place is lifted, and so our guidance inc. the strong q1 that we delivered. it also incorporated strength in

q2. how we were going to plan the year, we would start to assume the business would see normal engagement rates at the second half of q2. that was also a situation where if shelter-in-place lasts longer and engagement rates stay high, obviously we would change the guidance because we would start to see that performance continue, but we felt it was important to give a basis to our investors on how the second half would unfold. emily: you have been in the gaming industry a long time. you worked at electronic arts for two decades before coming to zynga. you have seen a dotcom bust in a recession. thewould you compare what industry is experiencing right now to what you have seen in the rest of your career?

frank:-clean have never seen anything like this. -- i frankly have never seen anything like this. the interactive entertainment business is in a place right now to provide entertainment for people right now. just an audience like this across the board globally is unprecedented. we have experienced economic downturns before, like in 2008, and what we find is that video a very appealing source of entertainment when times are tough. if you look at the entertainment spectrum, free to play mobile games are very efficient. if you they can about what it costs to get into a game or get into -- if you think about what it costs to get into a game or get into a bar or go to a ballgame, versus jumping into a free to play game for hours, it is a very efficient way to spend time. emily: you said you are considering making games for

platforms beyond snap. what other platforms are you considering, and could zoom be one of them? frank: we have been intrigued by the opportunity to provide entertainment for video-based social platforms. we are looking at ways to bring some of our well-known franchises and games over to some of these new settings that are proving to be so appealing in this time. we have experienced a good run "tiny royale"ur game. one of the key parts of our strategy is to make sure that we are always looking at new emerging opportunities to reach audiences. new platforms are ways to innovate new experiences, reach out to new audiences, and if you are not in a position to capture new platform opportunities, you run the risk of missing the next big transition. i thing we have really opened up theaperture in terms of

pipeline. ando-based networking communications seems like an area to invest in. emily: frank gibeau, ceo of zynga. always great to have your perspective. thanks for calling in. meantime, cloud-based communication is up. we will speak with the ceo of bondage next. onage next. ♪

agely: shares of von

getting a boost after the company reported his quarterly results. the communications providers seeing a boost for at-home services. is the ceo on the phone. thank you for joining us. we last spoke a few years ago when times were different, but obviously the pandemic has been good for your business. talk about the trends you are seeing. tragically, the pandemic is very good for the core of what we provide, which is cloud-based communications. what you are finding is two trends that are happening. one is remote work, and the other is remotely delivered services. you are no longer going to go to your doctor or school until you see this massive growth in telehealth, distance learning,

remote fitness, and the like. we concentrate on both of those, because as a cloud communications provider, as companies send everyone home, they now are deeply productive at home on their communication systems as they were formerly in the office. power all these remotely delivered services. emily: that leads to the question, how does your business fare when we come out of the pandemic? you have the president talking about reopening the economy, trying to make it more safe to do so. if people return to work, what does that mean for vonage? alan: it is actually very good for vonage. we posted an excellent q1 and gave guidance for the year which resulted in a healthy stock price appreciation today.

these trends about remote work in our view are permanent. it does not mean people are not going to go back to the office, but in many more numbers, you are going to find companies accepting if not encouraging virtualized work environments. it is not like people aren't going back to the doctor, but you are going to see telehealth and the convenience of it, which was already a trend pre-covid, being a major trend thereafter. this is a major pivot point within the communications space, where these cloud-based solutions are really going to be versusm more over cash the premise-based solutions that have existed for decades. over therm premise-based solutions that have existed for decades. emily: you have seen an eight

hundred percent increase in video demand overall. i understand a lot of these behaviors will remain, but the question is how much. that mean for you the benefit is somewhere in the middle? it is going to create a permanent shift. to take one example, telehealth, it clearly was a trend in the past. at this point, it is everything in terms of how we go see the doctor. it clearly, as we get past covid, won't be all the ways in which people go see the doctor, a muchis now becoming more accepted way of being treated or diagnosed by a physician, and it is going to have more broad-based appeal. when you see this immediate spike right now, what we expect is you are going to see this permanent shift across a larger base, which is going to be the

net benefit. you are going to see the same net benefit in the remote work notion. when office is open, at some point, most people will go back -- when offices open, at some point, most people will go back to the offices. about oure learned ability to be productive virtually, so i think we are going to see far less concentration in office and much more support for a fully virtualized environment. cloud can occasions is key to drawing that. -- cloud communications is key to drawing that. emily: speaking of that, facebook is telling employees they can work from home through the end of the year. what is your plan for returning employees to work, and do you see a return to a more hybrid form of work? alan: i think it is clearly going to be more of a hybrid. we are a very global company.

the situations are different based upon the status of the pandemic in various areas of the world versus where they may be in europe or the united states. as we begin to open the offices, we have been very careful about making sure that we not only protect the physical health of our employees, but their emotional health as well. to the extent that they are uncomfortable coming back to the office, they can continue to take their jobs from home. the whole approach is going to be more of a hybrid than in the were where many companies tough about everyone being in the office for those eight hours a day. in our view, what is interesting -- what we are going to find is employees are going to demand it, not just in our company, but

throughout the world. video interactions are becoming a part of our everyday life right now. we are going to get accustomed to it. vonage is a talent-driven organization. compete against major technology companies throughout the world. if those people demand and want to work in more virtualized environments, we are going to have to accommodate that. we are going to want to accommodate that because we want to culturally create an environment that attracts the best talent in the organization. alan: alan maza rick -- masarek, ceo of vonage. thank you for joining us. coming up, we will dig back into's results. -- uber's results. ♪

gety: we are continuing to great new information from johns hopkins university, where they are doing research on the coronavirus. earlier today, the professor of nursing told us they are seeing glimmers of hope, especially when it comes to hospital capacity. take a listen. glimmers ofeing hope where our inpatient bed capacity is stable. we have a wonderful field hospital started by our governor, who is hoping to untaxed the hospital from those who have less acute illnesses who need to convalesce in a more controlled environment. all those metrics are glimmers of hope that we see in our health system. >> do genetics play a big role in who dies from covid-19? jason: i think that's an

important question, and we are investigating a variety of different types of genetic analyses. there is very important differences in viral genetics. are there differences in strains? we have heard of strains that come from china, strains that come from europe. more importantly is our host genetics. how does our system respond? what we are seeing is evidence of individuals that they have some form of weakened immunity. a less ofwhat we call a strong cytokine storm, meaning the immune system does not respond as briskly, so they are actually the ones somewhat protected in moving forward to the need for mechanical ventilation. when the immune system does not

act as briskly, you are not overwhelmed by its response. it is not the virus that does its thing, it is the immune system's response to how it responds to the virus. francine: agar also disparities because of gender and race? howe are, -- if there are, can we protect those at risk? jason: we are seeing data that men are at greater risk than women. we also have to pay close inention to the increase cardiovascular and respiratory diseases in general, the inverse in men versus women. when you look at race, this is genetically, it is with access disparities between populations. if you live in a community where your hospital is a low resourced hospital, a district,

nonacademic hospital, you may have less available intensive care beds, less ventilator capacity, less options of accessing a primary care provider. later tobe presented care for evaluation. there are many steps in that question that need to be unpacked in relation to things with gender fluid and racial disparities we are seeing. professor jason farley with johns hopkins university. michael bloomberg, the founder of this network, is a big supporter of johns hopkins university. meantime, i want to get back to uber results. more headlines have been really good on uber. the biggest news -- have been rolling in on uber. they sawst news is declines in ridesharing but are

boosted by uber eats. what are your takeaways? of course we see how much the ridesharing business is being affected by the lockdown and shelter-in-place orders, but we see signs that are encouraging. in places where lockdowns have been released progressively, we rise, so that's great. the second thing is that these businesses react very well to a pullback. 6% in q1.ere down cash reserves we are down 9%.

it is very rare to have businesses where you recover faster. that is encouraging. see is that [indiscernible] at some point in 2021, so it is not so far from here. emily: i also want to get your thoughts on tesla, because you also cover tesla. we have learned the china factory has halted production as well, meaning they are not producing cars around the world. productionalt of at the facility in fremont, california, how will this impact tesla's ability to make cars throughout the year? pierre: i think in a factory

like fremont, it is a cash .urner that is a big deal. tesla is going to have a difficult second quarter. they are going to burn cash, but they have a very strong balance sheet and enough cash at hand to get through that. what really matters is that on -- onhers of the fence of the fence, tesla has the model y. when we can restart production,

it is going to be an easy game for them to sell all the cars , so you will see them come back with the ability to grow very rapidly. ok.y: pierre, we always appreciate your thoughts here on bloomberg technology. thanks for culligan, and thank you so much -- for calling in, and thank you so much for enjoying the show. ♪ >>

haidi: good evening. these are your top stories. wall street rose to its highest levels in a week as investors balance poor labor market data with corporate earnings. the worst of the virus damage has now passed. oil endures a wild day as traders await plans for saudi arabia's global price hike.