>> from the heart of where innovation, money and power collide, in silicon valley and beyond, this is uber technology with emily chang. >> i am emily chang in san francisco and this is bloomberg technology. telethon has a new ceo but still , shares are riding high on the news. more on the massive shakeup.

leveling the playing field in technology. we will talk to the company spun out of a incubator that is taking on the $100 billion software industry and trying to make silicon valley more fair. we will get to all of that in a moment but let's get a look at the market. >> you might see a little volatility when you hit that. you're looking at the correlation of that relationship. that is why you are seeing yields higher and tech higher. that is good news. this is just shy of 4% gains after a bit more policy support

from china. this boosts the lego alibaba and the like. microsoft is potential in talks to buy cybersecurity for. this comes from the cloud. just some stock this morning. and that lifts after the bell reporting earnings that are not actually mediate what investors want to hear. riders are still falling short. we only got shy above 18 million. who in line with that. i think the biggest story despite all the tech mania, it will be with telethon. this essentially goes all the way back to september of 2019. what is that ipo price that we tested?

this is a proxy for the pandemic trade. they are now dealing with management changes. and of course, a potential of a major deal in the works. >> not what all the way around. some ways to go. i do want to stick with allison. -- peloton. he will be replaced by the former cfo of spotify and netflix. 2800 employees out, including some top hardware executives. >> this is just -- in terms of how they meet

aggressively at costs. i think the stock market reaction is partially coming back. also, ellison b aggressive enough to ensure they can be a sustainable and profitable business. >> this was him just about a year ago talking about his vision. take a quick listen. >> we are investing in digital fitness as well and on and on you are seeing some of the big players trying to create these connected products. everyone in the industry is seeing the future of fitness is at home. >> part of the this might be at

home. where do you think they went wrong? >> demand forecasting is a problem. this is something that is very expensive. just because you are saving money on the outside. this is the import -- the purpose that is more about what the -- now, the consumer behavior in the pandemic is swinging all the way away right now. we will try to see what a visible market will look like. >> let's talk a little bit about

who comes next. very mccarthy, the former cfo of spotify and netflix. mccarthy and his wife are big peleton riders. big fans of the brand. is he the right person to ride peloton into the sunset? >> i like the way you phrased it. he brings credibility with investors and wall street. he will probably say things conservatively. right now, in the last six bonds, what has happened is the pellets and management team has lost the credibility of any of this. this is the demand they are seeing in front of them. what they bring in is that. beyond three to six months, he will probably do a shakeup. they will do the right side of the ship.

this could probably be lower than what we are seeing today. maybe this is not as aggressive as it could be. >> we will see if a deal happens, a wide range of names being floated as potential owners from apple to amazon, disney, nike. we will be watching these partners, thank you for joining us. i want to stick with earnings and move on to lift. the ride-hailing company beat estimates driven by higher prices due to a shortage of drivers. but they are reporting fewer riders than expected amidst the omicron search. they have all the details. one of the big takeaways here? >> a bittersweet moment for results today. one of the things that stuck out was this active revenue figure that tracks how well lyft is

able to monetize their viewers -- users and how many have joined the platform in the past quarter. we saw an all-time high. that has two things to attribute. one of them was contributing this idea that prices have been so high for the past few months. riders are taking more import rides but they also cost more. there is also seasonality. there is an impact -- are they taking rides, are they shorter or longer. lift -- lyft could tout that we

are able to monetize this. we are getting users but not at the pace that investors are looking for. that number came in about 2 million short of what analysts wanted to see. >> you wonder if lyft and uber -- we will be seeing huber's results tomorrow, you're wondering if they made a full recovery if they can charge more and what if the writers are not willing to pay that? >> it will be a balance. that is what investors are focused on. it is not about how much you can extract from a customer. it is about if you are deterring them from coming back onto the platform. now that subsidies have been pulled back and driver shortages are still somewhat hanging in uncertainty with omicron expected to be a negative impact in the first quarter, there will

be some uncertainty in how they balance this. at what point do you say maybe we have to subsidize prices again? that will be part of the conversation. it will continue to be a priority. >> what are your expectations for over asked him what you saw for lift -- uber after what you saw for lyft? >> delivery overtook the mobility rep -- mobility business and it was the cushion that lyft was not lucky enough to have. what we were able to deduce is that uber will see some kind of an impact in december. they spoke to investors late in december and actually acknowledged that omicron was having something of a hit.

we will have a focus on the profitability of the eat segment. they were very close and posted pretty good profitability numbers in q3. omicron might be bad for rides but it is good for delivery. >> we will be all over the results tomorrow. i am watching your takeaways. thank you. now, after taking on spotify, neil young has set his sights on big banks. he has called on baby boomers to dish the companies contributed to the mass fossil fuel distraction of earth. he proceeded to encourage fans to take the money out of j.p. morgan chase, bank of america and wells fargo. coming up, on the heels of a massive deal with activision, microsoft has its eye on this cybersecurity firm. could this be the next target and a massive buying spree? this is uber -- bloomberg.

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>> more mna for microsoft? they are in talks with cyber research. they are with us now. is this deal a good deal for microsoft? >> this is aggressive on activision but they will book out -- bulk up the enterprise piece.

it would make a lot of sense of them to make an acquisition. it would also be on the offensive. >> they were talking about cybersecurity as the new pandemic. they used that word. i want you to take a quick listen to that quote. >> while we have a pandemic, we have another real pandemic. that is cyber. the level of tax pressure has increased. the need for response to be top-notch has also increased. >> microsoft has had its own vulnerabilities over the last year. how does this make sense from a

technological perspective? >> it would give them significant defense. i think that was the straw that broke the camels back. they were to have more control over their system. when you look at the navy seals of cybersecurity, that would make sense. there are some other names out there. microsoft is trying to build this iron fence around the clout echo system. the only thing that could disrupt us more is cybersecurity. >> does it concern you? microsoft was building the cloud

business. it is over the coming years and it is mna. this is amid the antitrust scrutiny. think about nuance, you have activision out. you have this cybersecurity deal. >> coming up, arrays quantum computing. we will speak with a guy leading that deal, a former top over executive.

>> the latest threat from meta-does not seem to have european officials wary. they are weary they could pull facebook out of europe. take a listen. >> i am on instagram. that would give me maybe another 10 or 20 minutes today. >> meantime, the race to build a quantum computer is heating up.

] all down. here is the ceo. what is it about this company that you wanted to take public? >> it actually has products today. it is serving clients like volkswagen. that is why i like it. >> when you look at people like ogle, you're getting computing. what is the special sauce you see when it comes to the technological approach?

>> because they have been around for a while, the ip is enormous. their approach is the other one that works for optimization and employee scheduling. imagine how they schedule this with days off. it can solve real-world optimization problems and they will build a real approach. >> the approach they are using is called annealing. explain to us what makes that special and different from the approach some of these other competitors are taking. >> this approach is an approach that i believe we believe can solve a certain set of problems that the other approaches cannot

solve. that is what makes it unique. they have a brand-new leadership team. alan is an incredible leader. it has a fresh look at the world. it has real big customers today. they have a unique approach to lock onto. >> we are waiting for uber earnings later this week. when you look at it, what is the future of ride-hailing? does it recover or get back to pre-pandemic levels? correct etiquette does. i think you will see revenue on the ride side exceed pre-pandemic levels in q4.

i think you will both see prices moderate. it is just that people have been home. that moderates back. >> last time he was on the show, huber predicted that rides would surpass pre-pandemic levels once again. you are not happy with the way things are going, you're not happy with all of that. >> leadership has had a wake-up call. the stock is in 2017. the business has been growing but wall street is not rewarding

them for it. they will find savings to make it more profitable sooner. they have done a bunch of bad acquisitions that have not helped. >> a management change like a new ceo, like a peloton style. >> the first five years are up this summer and i think it will be a point for them to look up and say the company went public at $45 a share. it is a team collectively. we will take it forward to regain momentum. seven years is a long time to wait for a stock. >> what about the promise of eats and the ambitious move that they have made there? >> i think that eads is a great business. you see what happens there.

there is a lot of room to run on eads worldwide. >> we will be all over bloomberg results later this week. coming up, apple launching a new feature that will be an alternative to square. we have the details next, this is bloomberg. ♪

>> welcome back to bloomberg technology. i am emily chang in san francisco. apple -- what do we know about how this new feature will work and what does it mean for square? >> thank you for having me. this feature is pretty simple. you basically turn your iphone into a payment terminal. they can tap an iphone with

apple pie. -- apple pay. this goes way back. i would be interested to see if this comes to the ipad. this is something you can connect to your iphone either wirelessly or through the lightning connector. you can take credit card payments. it does not require any external hardware but apple will be leveraging other potential partners to make this work. maybe square won't want to do that.

>> they generated about $50 billion in change. and anytime they add a new service, a new point of sale for the company, they will generate revenue. but apple does is they take a few cents on the dollar. they are basically probably going to do this as well. this is another revenue. >> when will this launch? i know you have been reporting on that event. >> this will launch on this. they will hold that event for

the new ipad. what this means is that third-party payment companies will have to sign up and take advantage of this. who knows when they will start to -- there will be more coming later in the year. >> i have to ask your thoughts on this massive peloton shakeup given that you cover peloton as well. 2800 employees out. john fully stepping down as ceo. >> can't speak to the merits of cutting 20% of the workforce. that is not positive.

this is not just investors saying it. we have multiple advertising related issues. they have complete the mistimed and covertly messed up their supply chain not once but twice. this was supposed to be the time when telethon was supposed to grow and become this shiny new company with the over $50 billion market cap. grexit mark covers apple and telethon for us. -- >> we are going to talk all things crypto.

this is bloomberg. ♪ >> from the start, our committee has recognized that the explosive growth of digital assets comes from the risk and opportunity of our economy and community. especially communities of color that have been left behind by our financial system. we have witnessed the payments industry address customer and consumer demand and the never ending race to move money faster , cheaper and better. we cannot regulate out of fear of the future. ♪

>> bitcoin recording its longest winning streak since september. still, volatility is the name of the game. what should we read into the bounce back? we have more on these crypto market moves. it has been on a tear for the past week or so. it is a good thing to talk about stable coins.

remember, tether is affiliated with this. >> hang on. regulators and lawmakers have been trying to make sense of the crypto landscape. i want to bring in the next guest now. take it away. >> thank you for being here.

this is about technology firms and engagement in cryptocurrency. >> this is the issue of the separation of the backing of commerce. in this case, we believe stable coins should not be issued by a technology firm. >> as a former regulator yourself, what do you make of that idea? correct that was one of the biggest moments of the hearing today. i think your comment was -- her comment was that they need not apply for the future of payment in finance. that should be limited to banks and suppository institutions.

it has been the tech industry, it has been innovators not from the banking sector but technology that have really explored the ability to make money more acceptable much faster. i think that comment was pretty remarkable. americans don't like it when governments pick winners and losers but that is what we had been hearing. >> you work with a lot of companies that work with banks to try to make the cryptocurrencies more accessible. how does that take form when it comes to government regulation? click the reference was made to the separation between investment banking and commercial banking as a basis for this separation from technology firms and payments but as we know, this was mostly repealed by congress.

it was not really a living person for what was thought to be done here. the group that came out with a report not too long ago has proposed to that the development of stable coins should be left to the banking industry under bank lake regulation although there was a lot of unanimity in the report, they seemed to be quiet aligned in the need for greater clarity, perhaps for congressional action for the importance that stable coin is increasingly playing in the market and the need for u.s. innovation. i think there was less you know many -- unanimity about whether or not they should be able to regulate stable coins and whether stable coin operators would be required to be banking institutions. with that comment you just pointed to, that technology

firms should not apply, i think that went against the grain of at least half of the comments we heard in today's hearing. >> you know better than just about anyone how hard it is to keep up with financial technology and the crypto marketplace is evolving so fast. can regulators keep up and then keep keeping up? >> almost by definition, regulators in error democratic societies never keep up. it is a different approach than europe which try to adopt regulation in advance until -- and tell innovators to innovate to the regulatory standard. in the u.s., our approach has been to let innovation develop and that regulators catch up. that is not a design failure, it is a design feature of our system. it means our innovators innovate to solve real problems. what has happened in stable coins is they have innovated to solve the shortcomings of existing banking and payment

systems that we increasingly know have been underinclusive of our citizens, it is too slow, it costs too much. there is too much rent seeking behavior. this -- congress is trying to catch up. they have been solving real-world problems. i say this as a former regulator that has appeared before them many times. the challenge is how we bring clear rules that protect against fraud and manipulation and bad behavior but allow innovation to continue to make our financial system better, faster, more inclusive and less costly. >> the question is when will we see crypto regulation, stable coin regulation this year question mark how soon? >> what you saw today is a real step forward from when i was appearing before this committee a few years ago and they were asking the basic elementary questions. what you heard today was congressmen and women who were

much further up till -- up the learning curve. they were understanding the challenges they were grappling with. this is a year when congressmen and women are looking for direction from the public but are unlikely to take legislative action this year. but the discussions taking place this year i think will result in legislation when we get through the election and there are new coalitions in the house ready to put this forward and i hope they are bipartisan. >> you're a big on this, a lot of people on wall street complained that they don't talk, they are on different terms. i am wondering because gary was at their. would there be more coordination? is this time any different? >> you're right. when i arrived, i wondered at how much they talked on a regular basis. one of the achievements we reached was to have a more open

dialogue. i establish a regular cryptocurrency ad hoc. they spoke regularly. i hope that has been continued under the new administration. i don't know the case. >> thank you both. coming up, how to improve the technical interview process. how uncommon is trying to reduce the bias in the process one interview at a time. that is next, this is bloomberg. ♪

>> there are 3.9 million

unfilled technical jobs in the united states and companies are constantly looking for ways to hire top technical talent quickly. the technical interview is famous in silicon valley but benefits those who have the unfair advantage. there is a new way to evaluate job applicants by running real-world exercises rather than obscure algorithms. thank you so much for joining us. you're both engineers, you both went through the traditional recruiting process. let's start with you. what is broken about the way things are done? >> thank you for having us on. we met while we were engineers at google and have gone through the interview process. you're in san francisco and hopefully you are a warrior fan. the best way to describe this is when the warriors allowed to

recruit steph curry, they did not put him in room in front of a whiteboard and draw place, they saw how we played on the court. we were in the room in front of a whiteboard deciding -- complete broken and separate from the way engineers work on the job day today. >> i am warriors fan indeed. i appreciate the metaphor. talk to us about who gets left behind in the classical technical interview and who has that advantage. is it generally male candidates? >> that is a great question. you tend to focus on what you learn in a computer science classroom. how he theoretical knowledge. that means we are often leaving out people coming from untraditional background. people that are self-taught. my sister went through a coating boot camp and is now a senior engineer at dropbox. they are super inconsistent.

what that means is only a third of candidates are consistent in performance. but women are seven times more likely to drop out of the interview process after a poor interview experience. what that means is we have a leaky pipeline that is just validating the perspective of when i look at the industry, i don't see people that typically look like me. if i go through an interview process that is super inconsistent and i fail, i reflect and think that i am not a great engineer. it is the process that is failing them. at the other way around. >> you raised $59 in funding led by calwood ventures and you're trying to take on a hundred billion dollar recruiting software industry. what make you think that your way is better? >> we are both engineers and when we met each other, we started venting about the interview process and we look at ourselves and said who better to redesign the broken interview process than those who have gone

through it themselves. a lot of the existing tools in the industry today have approached this problem by looking at what companies are missing. it takes a really long time to interview engineers and they digitize this broken interview process. how do we fix the broken interview process? we approach this from a candidate perspective. what do we want the interview process to look like? this is a project based interview that evaluates skills used on the job. it allows companies to hire in the best way. in a way that allows a higher degree of confidence. >> there is so much movement happening in the job market right now. i recently interviewed the cfo about the great resignation. take a listen to what she had to say. >> i don't think it is the great resignation. it is the great reshuffle about people taking about how they

want to work and live their life. for all of us thinking about how -- what that means for air institutions, it is about evolving the way we work, interact, the expectations we have. >> what trend are you seeing in the job market right now? are engineers reshuffling, reflecting? what are they want? >> candidates are definitely reshuffling. one of the things that is import for companies to realize is candidates have options. that means you need to offer an excellent candidate experience. otherwise you spent a ton of time interviewing and the candidate does not even end up joining. you need them to feel like they are fairly evaluated. they need to understand what it would be like to work at your company. you are able to ensure that your offering and experience that shows you have the time to connect with candidates in right way.

>> your clients are racking up some of the more established names. we are thinking about the statistic that is incredibly depressing. we have all this measure capital funding from last year. what needs to change despite so much more awareness about the need for diversity, the need among entrepreneurs like yourself. why isn't it happening? >> it is a great question. we were fortunate, we had a lot of interests. we were intentional about what we designed. we had a tough time and we faced a lot of biases in the process. our hope was to lead by example to show that great ideas can come from anyone, anywhere. >> you asked quick questions. you must a vision for the future.

where is the company a year from now? >> we are spending a ton of time hiring and growing our companies so that we can actually meet the demand we are seeing for companies. we are also launching some really exciting new product operations. this will basically allow candidates to take one interview and share it with every single company and the hiring consortium. you're interviewing with 10 companies. a lot of time spent in interviews. and by using this piece of the process, candidates are saving a lot of time. we are excited about growing our team. >> will keep watching us both. kressa big show tomorrow. we will continue our -- we have a lot of conversation

with disney after the bell. you don't want to miss it. i am emily chang, this is bloomberg. ♪

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