>> this is "bloomberg technology ," with emily chang. emily: this is "bloomberg technology," coming up in the next hour, the ceo of uber declares it is now an all weather company that can handle all of the roadblocks coming its way, from omicron to regulation

and he predicts why they will hit an all-time high in 2020 two. our exclusive interview, next. women, back to renting the runway? we talk about the return of designer e, post-pandemic. is the crypto winter already setting in? we have the latest on crypto volatility and get key predictions from jesse powell and gary tan. all of that in a moment but first let's get a look at the markets, where all investors have their eyes on inflation. ed ludlow is here with more. take it away. ed to: keck was the most performing -- worst-performing sector. there's a fed meeting on wednesday with producer prices coming in hot on the month of november and the expectation that the fed is going to accelerate the pace of tapering with a steeper curve on rate

rises. you see it playing out with underperformance in the nasdaq. it's the mega capsule. though oddly enough they paired off some of those losses with semi conductors continuing to be under pressure and a pattern is emerging. look at this chart. over the last two weeks the nasdaq 100 tech heavy index has fallen seven times. those are the red bars. what is interesting is that when it rains, it pours. each time it has fallen it has been by more than 1%. investors really trying to make sense of this market, positioning themselves to know what to do if they are stuck with high multiple, highly stretched valuation tech stocks. of course there are a lot of individual stories within that but there was pressure within the mega cap on tuesday. microsoft, down 3%. meta-, the parent of facebook,

doing pretty well, outperforming peers in recent days. not entirely clear why. one stock that has performed well, luber, at one point up more than 7%, best day since september before it paired to those gains. emily? emily: ed, thanks so much. huber just had its best we can food deliveries since pandemic began. the ceo says that he is confident that the profit for the current quarter will be closer to the high-end of their company forecast, meaning near 75 million dollars. shares ended the day up 5%. i sat down exclusively with him and began the conversation by asking -- asking whether deliveries or rides are in the driver's seat. >> the answer is yes. actually last week for us was our best week ever in terms of volume. mobility volume now, last week were at pre-pandemic highs.

the world, despite delta, omicron, etc., continues to reopen and as it continues to reopen, mobility business it's better and better. on the delivery side, delivery is incredibly sticky, a great experience and we are adding groceries as well so that the delivery business is also hitting all-time highs, making the whole company hit volumes of all-time highs last week. we do think that is going to translate into profits and at this point we are confident that we are going to come in at the mid to high point of the range that we gave earlier to our investors. so, so far so good. emily: delivery, how do you keep that growth growing? >> what we have seen with delivery is that it is a sticky habit. there had been an acceleration in the majority of people who experienced it, the food or

restaurant, anything you wanted within half an hour, it tended to stick around. the delivery audience growth was up on a year-over-year basis with frequency growing and basket sizes growing as well, translating into very strong delivery volumes that we expect to continue. we are also adding selection. not just restaurants, but grocery, convenience, so that essentially if you forget toilet paper, you can order it on uber eats and get it inside of half an hour, again adding to the frequency of service. emily: mobility, post-pandemic high, will it ever surpass pre-pandemic levels and if so, when? >> it absolutely will. if you look at mobility bookings in europe they are already higher than pre-pandemic levels today. same thing in latin america.

on a relative basis it's lower, but we see it over and over again, every use case is coming back. workday, weekend. travel trails a bit, as you would expect, but the pattern over and over is that as cities and countries open up, volume comes back and eventually exceeds pre-pandemic high. i can't tell you exactly when. i will be trying to predict the health circumstance. that's difficult. but i'm quite certain that next year we will be hitting all-time records in terms of mobility bookings. i will make that protection now. 8 emily: ok, good to know. all-time records next year in mobility. omicron, here and around the world. are you seeing an impact? airport rides? and honestly how worried are you? >> we are not seeing impact

as we speak that this is an uncertain world and i think that we as a company now, because of the global nature of the business, some countries opening up, others closing down, etc., but on average the world is getting better. the efficacy of our meds are getting better. vaccines are getting better. treatments are getting better. the world now on average is handling the virus better and as a result it shows up in our mobility business. the second factor for us is that delivery is no bigger than mobility. going into pandemic, it was only one quarter the size and wasn't yet profitable. one of the new, i would say, trends that we pointed out to investors is that we actually and's -- expect delivery incremental profits to be at or above long-term margins. not only is there delivery business bigger than mobility, it's a profitable business that

will push incremental profits. we are now an all weather company and i couldn't say that coming into the pre-virus, but post-covid we could succeed and grow in any environment. emily: how does driver supply and turn over look right now? we spoke a month ago, curious as to whether there has been an update and how long drivers stick around? >> it generally continues to be disruptive. we are leaning into supply and continuing to innovate around driver sign-up. previously it was hey, do you want to drive people, you want to deliver food, etc., now there is an onboarding process that is modular. give us the information about yourself, when you are ready for food, we will tell you. drivers can come and earn much faster on the form and as they earn faster, it is of them

onboard and earnings are now really high for drivers. $35 in the top 20 cities. that is causing drivers to stick around and increase their hours on the platform. the trend right now is positive, but we understand the labor situation and we have to keep making, innovating to make our earner experience that are in better and better on the platform. emily: on that note, a lot of the drivers say they want to can -- want to deliver food and set of people these days. you are competing with other companies. why should a driver choose uber over other options? >> they can choose it for people, food, groceries if they want. the flexibility that we have on the platform, you know, people talk about super app. we are the earnings super app. earn anyway way that you want in

the peak, for example, of people, is different from the peak of driving for food and depending on your mood, i was actually talking to a driver and thanking him for helping and he was delivering food, so he could talk to me at the same time he was delivering. the great thing about the platform is that drivers can choose and there is no plat that's as flexible and we think that is a structural advantage. emily: doordash says they can deliver things in 10 minutes to 15 minutes and are hiring couriers as full-time employees. what's your response to that? >> we want to partner on these experiences. go puff is a terrific partner on uber eats. i used them the other night, unfortunately for ice cream, but it got to me inside of 20 minutes. my being able to have that

experience on uber eats partnering with a player, go puff is obsessed with building these stores, etc.. i want to partner with best-of-breed. we will be watching very early as it relates to this environment. partnership is the first priority. emily: the go puff ceo was on yesterday. will we see you get into this business, though, independently, in a meaningful way? >> i don't see us doing it in a meaningful way. we are doing that through partnership. raphael obsesses 100% of his time on building stores, etc.. i obsessed 100% of my time on networks, pricing, matching. the platform benefits that come from uber eats and rides and launching uber one. it's a different focus and i think we can work together to make an absolutely delightful

experience for eaters, which is in the end what i'm hoping for. emily: you mentioned groceries a couple of times. how will we see that scale? big byes? organic growth? building it from scratch? >> corner shop is the instacart of latin america. outside of latin america we are building organically. our grocery business is now at a $3 billion plus annual run rate. we expect to see that double plus. the growth going forward really is going to be organic and it's about bringing the corner shop experience. all of the detail and obsession that team has on customer service, blowing it out globally as it relates to uber eats and uber mobility.

emily: you are in the firing line of regulators in the eu in the u.k.. what are your plans there? >> similar to prop 22, the vast majority of earners want flexibility. that's why they come to the platform. they can get jobs anywhere. they come to our platform to earn in a flexible way, most of them in a part-time manner. we think the worker designation for example in the u.k. that has been verified, we think that is the way forward, flexibility and benefits. we think it makes delivering on uber or driving on uber more attractive to earners and we are leaning into that vision and hope to continue to have dialogue with the regulators to move in that direction. emily: what if more regulators go that route? >> i think that's

good news. there maybe some company -- countries that flip to appointment models. spain has flipped to that as it relates to mobility and we work with fleet partners who employ drivers. bookings in spain are up 40% year-over-year. the margins and spain are close to the long-term targets. 8% to 9% of bookings. so, for us we can adjust as a company to any model. the question is, what's good for earners? a model that retains flexibility and provides them with benefits? that's the best and state for earners. emily: on that note, everyone is still noticing the sticker shock according to the data we are seeing. would uber ever subsidize prices? or is this just the new uber, prices are higher and maybe they should be?

>> we see the inflation there. used cars, new cars, fuel. there's an element of underlying inflation affecting everything, groceries, etc.. at the same time the supply and demand imbalance of the past increases prices more than core inflationary levels. the surge is coming down as we improve supply demand imbalances. eta's nationally are now below the five minute mark. new york, less than three minutes. service levels are coming down. i do think that the price of uber is going to be higher than it was. similar to the price of everything right now, frankly. but we are working to improve as the supply and demand balances change and with ink it's a good thing for consumers and for us as a business. emily: there is much, much more, you can watch the full interview

at bloomberg.com. six tesla workers filing lawsuits alleging sexual harassment at their california factory. the female employees say that they were subjected to lewd comments and cap calling, physically intimate touching and discrimination. the women filed six separate lawsuits claiming that their workplace experience led to depression and anxiety preventing them from advancing in their careers. this is a story we will continue to explore and follow. coming up, super saturday. we will be joined by jennifer hyman to talk about holiday shopping and prescription trends and their first earnings report. this is bloomberg. ♪

emily: rent the runway shares remaining below the ipo price, their first earnings were last week revealed a third order net loss with revenue up 6% year on year. what's the outlook for 2020 two? let's bring in their ceo and cofounder now, jen hyman. good to have you back with us. look, investors seem to be worried about the loss. what do you have say to them and how do you plan to turn that around for the next quarter? >> i'm super proud. we beat the guidance on revenue and on margin growth and we have continued to demonstrate pathways to profitability through things like the capital light i -- acquisition of the inventory and oper . we are growing the business

significantly year-over-year within the context of a larger covid environment and it proves the resiliency of the business model. in 2020 this business was hit hard. we brought it back strong. revenue is up, subscribers are up and we haven't even experienced what will be we think a massive opportunity as the macro environment normalizes. emily: let's talk about the macro environment. some people may never go back to the office, let alone the runway, as often as they might have in the past. how do you see that impacting your path to profitability? >> there are two things that are interesting. the first is the deliberate strategy they have taken. today a subscriber uses us 50% of the time for casual use cases . lounging around at home, hanging around her neighborhood, going out to dinner. doing things not in the context of work or evening events.

so we have been successful in getting her to widen how she thinks about renting the runway and becoming a wider utility. second, we find that how she is dressing for work, special events, and casual occasions this year, it's more fashionable than it was even in 2019. even in a world where people work over zoom and we find a very small percentage of our customers are back in the office , she's actually dressing up more for her zoom life then she did in the pre-pandemic environment. i think that it points out a larger trend around fashion and self-care and self-expression. we have certainly all experienced the pajama fatigue of 2020 and realized the reason we love fashion is that it makes us feel good about ourselves. working in an office or a home office, we are dressing up and feeling great about how we do it.

emily: so, holiday parties are coming back area at least some of them. are you expecting a boost in that? what are you expecting to see on super saturday? >> we are finding that the smaller events are certainly back. but the big mega events of pre-pandemic life are not yet back and we do anticipate that some of those kind of social events, the big weddings and galas are being pushed into 2022 and 2023, which we think is great because we have been very pleased with our growth this year. we are up 113% in the first three orders so any acceleration beyond that with, you know, the environment getting better, i think it just creates even more opportunity for our business. emily: 30 seconds left,

traditionally you have said that you are not impacted by normal supply chain issues, but if those issues continue, could it delay your new inventory and hurt a little? >> the supply chain issue of the rest of the industry is a massive competitive advantage. we maximize inventory over multiple years and have a selection from prior years on our site. so, we think that both inflation and supply chain issues bring more and more women to rent the runway and it could lead -- lead to share gains for us. emily: interested to foresee how you look at women dressing in this world. great to have you on the show, happy holidays. coming, as omicron continues to spread, masked mandates amp up.

virus update, coming up next. this is bloomberg. ♪

emily: now to a virus update. health officials say that the omicron variant now makes up 3% of all sequenced covid cases and the cdc says the highly new variant has been detected in 33 states across the country. delta remains the dominant strain across the u.s., accounting for 96% of sequenced cases. but the new york governor is not taking chances, the rising infection rate romping her to institute a statewide indoor mask mandate for businesses without vaccine requirements. covid hospitalizations across new york have surged by 70% since thanksgiving and apple is

reinstating a mask mandate at retail locations and say they will proactively limit store occupancy, say they are requiring masks for shoppers, a rule that have been dropped that about half of the u.s. stores. more "bloomberg technology," coming up next. ♪

emily: welcome back to bloomberg technology. let's get back to the market where bitcoin staged a rally. ed ludlow is here with the latest. ed: it has been a pretty choppy 24 hours. if you go on coinbase or coin market cap.com, you may have seen some crazy prices or gains in prices displayed. what coinbase is saying is these were nontradable crypto assets and it is just a display issue.

some kind of error guidance on there but it was interesting to see bitcoin make that come back. but we are down 30% on bitcoin over the last 30 days or so and the question is where do we go from here? galaxy digital founder says things could get worse before they get better. >> bitcoin, $42,000 is an important level. low 40's should hold. we started the year at 30, so there has been so much of a change in mindset in this space. ed: a change in mindset -- how much has that got to do with the central bank on wednesday? there has been this idea that central-bank stimulus has helped prop up all asset prices, but as the narrative around unwinding

stimulus has picked up traction, we've seen a decline in cryptocurrencies. i've got a brand-new crypto index for you -- the crypto compare digital assets 100. we look at it coin and a theory and because they are the guest by global market caps, but this tracks the 100 largest cryptocurrencies. we lost a quarter of our value since mid-november come around the time the central-bank discussion came up. as the fed unwinds stimulus and rates rise, to see how cryptocurrencies go. emily: if anything is for certain about crypto is that volatility will continue. for more on what we can expect, we went to get jesse powell's outlook. do we go down to 42? jesse: it's hard to predict where the price is going.

i'm paying more attention to the u.s. dollar these days wondering where the bottom is on that. it seems like inflation is out of control and there's no end in sight. emily: there's all this talk about a crypto winter and that we are settling into it. what do you think? jesse: it is possible. bitcoin in the crypto industry has revolved around the cycles, but a lot of people see anything under $40,000 as a buying opportunity. i was buying and we dipped back close to 30,000 a few months ago and a lot of people have dry powder on the sidelines waiting to come back in at rock-bottom prices. emily: you might have been expecting this, but back in august, you were very bullish. listen to what you had to say back then. jesse: the moon is the bare case for crypto. we are going to other dimensions with bitcoin. people just need to hold on.

we are still early days, still early in the cycle. we could see $100,000 plus per coin late this year or early next year. emily: we are not even close to 100 thousand and now we are at the end of the year. jesse: we've got a few days left. emily: ok, but were you wrong? jesse: it's hard to know. my price predictions for bitcoin going back to 2011, i thought we would all be in flying saucers and paying for coffee in bitcoin. it's hard to know where it goes but you look at the long term trend line for bitcoin and it is up and to the right consistently. i always tell people if you are thinking about buying bitcoin, think about it as a five year investment. you don't want to be trading on a short timeframe. emily: may be no flying saucers yet, but there is obviously a lot of interest and activity, a

lot of work to better understand the asset. what is crack in doing to capitalize on this activity? jesse: we support over 90 cryptocurrencies and we are working on an nft platform to give investors exposure to the burgeoning nft market. we also offer a futures contract in countries outside the united states. we offer margin trading outside the united states. we have a bunch of features, super easy on boarding, just a few clicks to get started with as little as $10. we are doing a lot to bridge the educational gap and get people more comfortable with cryptocurrency. there's a lot of negative news and a lot of unfair attacks on crypto in general and a big part of our job is to educate people

on the merits of cryptocurrency, especially people who were left out by the legacy financial system meant don't have another option. emily: what about the merits of nft's? a lot of people don't understand. what kind of activity are you expecting to see an nft's next year? jesse: we've seen a tremendous amount of activity around nft's related to various meta-versus, virtual worlds. anything regarding land in a virtual world or items in a virtual world, digital closing you can -- digital clothing you can take across virtual worlds that represent proof of membership of a virtual club -- we think it's going to get to be a bigger and bigger thing and we want to be in front of that for people. emily: what were your big takeaways from the hearing on the hill? it is certainly catching the eye of legislators, but there doesn't seem to be broad agreement.

jesse: this is a problem 10 years going in the united states. we were one of the last countries to get it together. if you talk to the regulators, there are -- there's not a regulatory regime, there's not a license to do what we want to do. i think a lot of people are going offshore to be able to do what they want to do and that flies in the face of the public policy goals of these regulators , which is largely consumer protection. there is a two-tiered system when it comes to the sec. if you are wealthy, you get to do whatever you want and if you are poor, you are limited in the trading and investment decisions you can make regardless of your education. that's something we are trying to change. we are not against regulation. we are happy to work with regulators. it's about clarity for us.

there's a lot of people sitting on the sidelines because they are not sure about it and it has a chilling effect on banking across the board. emily: i hope you will humor us with a few predictions since you are always so colorful. what are your predictions for 2022? to be get to one lambeau? jesse: maybe i should stop making predictions. the dollar is going to go to zero and you should start stocking up on gasoline and milk. if you can prepay your health care bills intuition, you should probably do that now. take on as much u.s. dollar debt as you can because there will be a jubilee at some point. interest rates are going negative. those are my protections. emily: we will have to catch up with you next year to see how those ring true. thank you for joining us. my next guest says there's

infinite problems and he joins us next to talk about how he plans to put hundreds of millions of dollars just raised to work. vonnie:

emily: my next guest has been behind some of the most recent success stories, including instacart and coinbase. now garry tan and his venture capital firm are looking for the next that with two new funds worth $700 million raise. he joins us now for more.

$530 million for new investments. where are you most excited to put that money to work? garry: one of the things jesse was just talking about is what is happening with all of this nonmaterial expansion. what is exciting to me is that infinite money can and will go to new types of technology. it's exciting to build new software that could actually solve real problems. the thing i'm most excited about personally right now is this new idea i call outcomes of service. we talk about staff and it has been a cornerstone for so long but we are coming into a new age where we realize a lot of the businesses out there don't want to pay $10,000 and take the risk. they want an outcome. what you are seeing is a melding of fintech into software. a great example is self engine.

30% of food out there goes in the garbage and they are bringing that down by double digit percentages and that has a real climate impact. financing robots -- a crazy labor shortfall -- that's fundamental to our american competitiveness. these have real impact of humanity and it is fundamentally backed by great software, but you can actually give people the outcomes they want instead of forcing them to buy software to go get those outcomes. emily: we are looking at some instacart video. you were one of the earlier investors and i was just speaking about potential in

delivery. i'm curious how much more potential you see there. you've got additional funds to do follow-on investments. would instacart be one of them? garry: we are very bullish on what has happened with instacart. we are so early, we get involved when companies are one or two people and just an idea at times. we want to continue to back people at that earliest possible stage before any of these things are even categories yet. before bitcoin was even on the tip of any investors tongue, that is what -- where we think are sweet spot is.

following on into the b's and c's allows us to work with people over many years and they get to know us and we get to know them. that's my favorite way to do investing over the long haul. emily: you heard my interview with jesse powell. do you think we are heading into a crypto winter and what does that mean? garry: we've seen something like 70% to 90% of drawdown over the course of many cycles. i really like what jesse said, i think of it as a five year or 10 to 20 year buy-and-hold. these cycles tend to end within a couple of years and it's a function of the interest rate environment. i don't have a crystal ball and i'm still impressed by what's coming with a theory him -- they

are going into their 2.0 phase and i'm impressed by new chains showing a lot of promise. software engineers and product people are investing in the systems and making the choices around new blockchain's and those are the things we think everyone should be paying attention to. emily: how are you evaluating potential investments at a time when some startups that aren't making any money are commanding billion-dollar valuations? garry: the hard part as my mentor has said, startups equal growth. on the flipside, over time, we need to show free cash flow. these things are popularity contests in the short-term and

weighting machines and the long-term. how do we make sure we are not just selling $20 bills for $19? that's the role of the early-stage investor, to help someone think through this stage of this stuff and it's quite dangerous and does happen with mid to late stage startups. to me, it's about getting the fundamentals right when it's one or two people just starting out. emily: you told our bloomberg tech conference earlier today that startups should get those term sheets signed pronto if they have them. what are you worried about coming? garry: at the end of the day, tomorrow is uncertain. for us, i know we will continue to invest in unproven spaces.

but you have to keep your company alive and properly capitalized. the big benefit of doing that is if you can have a large warchest going into a recession, the number one problem everyone faces is hiring. executive all the way to i.t. is so incredibly hard. in a recession, everything flips and that allows you to build the start up and go to market a thousand times better. that's the moment the next airbnb is born. emily: always good to have you with us. thank you so much for stopping by. the u.s. to part of homeland security secretary announced a new program where the agency will pay outside hackers to find vulnerability in its computer systems.

he spoke at the bloomberg tech summit as well. >> we are going to be paying between $500 and $5,000, depending on the gravity of the people and ability, the impact remediation will have, and it is a scalable amount of money but we consider it quite significant. emily: this type of program is popular in the cybersecurity industry, known as a bug bounty. coming up, we are going to explore the long and winding row -- long and winding road. will it be the tipping point? this is bloomberg. ♪

emily: for a long time, autonomous technology has promised benefits.

ed ludlow hosted three top executives at the bloomberg technology summit and talked about if we are finally at a tipping point for self driving cars. >> one of the issues is when people are talking about cities, we have been testing and 13 cities globally historically, but we realize the same issue is that it's nice to have a different variety of data that is helpful, but we need to make it real. for people to really use it in their daily lives, the cars have to be first, driverless. it is not the same if you have a safety driver there and call it commercialization. you have to have a very large odd. i can go anywhere i want, to schools, two homes, two countries. and to call -- to cover that, you need large amounts of cars. several hundred cars is not

going to do it. for a metropolitan city like beijing or shanghai and china -- i think that is the key factors we need to cover. >> i think it's fair to say even more conservative and what your goals are in terms of a timeline. but what is it going to take for you to commercialize the technology? is it in your control or are you at the will of regulators? >> in the united states, there are not too many roadblocks. with the world's first guidelines for fully autonomous vehicles, it's a landmark position. you could consider the ai to be a driver and it was five or six years ago now. many states have come along with regulations and have tried to

pave the way. it's preventing the wide scale deployment. we have a very high safety bar for this technology. that they are meaningfully safer than human drivers -- the difference between saying we have these cases versus we have things so well that we can deploy them at scale, that is what we are working on right now. in many ways, it's already safer than people. but we want to make sure we have a comprehensive safety case as we deploy it to scale and that's what we are working on right now. >> we've talked a lot about robo taxis. it goes from point a to point b

but there are other cases -- delivery, trucking. which use case is commercialized first? which will we see most widespread question mark >> we don't look to see which one will be commercialized first but looking at which application is going to have the most impact to our daily lives. we see the biggest -- when you are looking at transportation or mobility, the two biggest art transportation or mobility for passengers and goods. we are focused on global tech because we think those applications will have the biggest impact to us. that is another way to make our

virtual driver to be so general and so expert that we should be able to drive all different kinds. emily: the california dmv suspended pony saying no other cars involved, no one was hurt.

paul: good morning. we are counting on to the major asian market opens. shery: our top stories this hour -- asian stocks stat -- asian stocks set for a mixed open. china property sector woes are another drag but one developer says they can meet the allegation.