good -- food delivery services land millions in new funding as san franciscoens feed themselves on everything. plus, paying bounties as hacker one and online travel sites hit turbulence. our reporters this week on "press: here."

good morning, everyone. i'm scott mcgrew. the number of new companies offering food delivery in san francisco has exploded. blue apron, e-24, grub hub. a couple days ago, uber started delivering food too. limited area, mostly financial district, but it promises lunch within ten minutes. millions of dollars are pouring into this space. in the case of startup muntry, $85 million in new funding in just the past few weeks. they offer reasonably priced chef-cooked meals delivered to your home. you just heat and serve. tree tran says he came up with the idea when he asked the age-old question, what's for dinner? so $85 million. i thought that was a lot of money, and it turns out that's not your total funding.

100 and what? >> 117 million. >> 117 million to deliver my dinner. >> what do you need that much money for? isn't this just another one of many food deliveries? >> we are actually very different. we don't just do food delivery. we produce the food. we have a team of culinary talent who create and design these dishes specifically for this purpose. you're talking now about commercial kitchens, equipment, and a whole lot of operations to make this whole thing work. unlike all the other companies you just mentioned, we actually -- is a food company we use technology to enable all these things and enable us to scale effectively across every market we're in instead of just offering a delivery service, which is great, but that's not what we're about. >> what's the advantage of having the kitchen? what's the advantage of being the chef and the deliverer? >> that's right. the main advantage is we control quality. we control exactly the food that comes out of our kitchens and what our customers get to enjoy versus being at the mercy of

whatever restaurants or sources that these other delivery service companies use. >> how do you scale? i mean, it seems like east bay people use a different service in san francisco versus south bay. eventually you want to be the facebook of food delivery. >> that's right. so we're a hyper local kind of company. we have to physically have a physical footprint in each market, in each city. we're in seattle, new york, l.a. so we actually have to produce the food in each of these markets. so, yeah, we built ourselves like a factory. it's like we have a team of chefs who produce food, and then we have a team of delivery team members who deliver to people's homes and offices. that's how we scale. unlike a restaurant that may have 100 or 50 seats or however many seats they have, the limit for us is the city population itself. we can reach the whole city. >> this sounds really old school. forgive me, you're not going to like this comparison, but it sounds a lot like what a lot of

school districts do, right. they have a central kitchen. they cook up the food in a big batch. then they send it out. what makes this so much better? >> you know, you're forced to deliver to just those schools. let's say there are 30 schools or whatever number of schools you're servicing. for us, we're delivering to the whole population, wherever they are. whether it's the offices or homes or whatnot. and we leverage that. that's where a lot of technology comes in. how can you make sure you have the best route for delivery people? how do we make sure we deliver within the timeframe that the customers are wanting? so all that comes into play. >> and is it the same thing every night? or do you get to choose? >> we have a daily changing menu. definitely there are some dishes we consistently offer for that season. >> anything that is too fancy, people don't recognize is. things that sell the best are

always chicken. and surprisingly fish. maybe people recognize it's harder to cook fish on their own at home and our chefs do it really well. the format we deliver in makes really attractive and easy to maintain superior quality and variety. >> how do you stay so thin? you're at the warehouse every day. >> i joke about that. but i literally am too busy to eat at times. the nice thing about this is really great, healthy, fresh food. it's not like you're chowing down processed food or a lot of preservatives with extremely high calories and sodium. indeed, i don't have a lot of time to eat. >> tri, there are a number of services in san francisco that are very convenient. munchery would be one of them. washio, they pick up your laundry. you're a busy tech guy. hey, i have somebody delivering me dinner. i have somebody walking my petds. the problem is it seems like all

of these things service all those other things. the guy at washio gets munchery for dinner. the guys at munchery do washio. the problem is, if any one of those begins to slow down in the economy, and you have to decide, should i get my dinner delivered or should i pay my rent? you see where i'm going? these are high-end services that san francisco seems to have created kind of for itself. >> we aim to be the every day option for the masses. so you see our menus in the old days when i first started the company. used to be $25 a meal. you can name a handful of people who can afford that meal on a day-to-day basis. over the years, we have made progress with scale and purchasing power. now our meals are in the $9 to $11 range. we tend to -- we intend to do even better. so we don't think we'll be really successful until we are the default option for most people on a day-to-day basis.

that makes us different than most other companies because they don't control the margin of their food. they don't have a say on that. so for us, the economy, if it's bad or if it's good or whatever, yes, it probably has some impact, but for the most part, this is sustenance. you've got to eat well. i think we're trying to make it where even going to the grocery market, buying the same ingredients that we're using today, the same quality ingredients we use today, will cost you just as much if not more. and i'm not even factoring in cooking time. so that's what we aim to do. yes, indeed, if the economy is not going great and there are more people being at home, well, i'm not too sure if it's better to cook at home in terms of money saving or whatever the case. >> i just worry about that we're creating an old generation of young people, young adults in the area who have great jobs but they can't cook, can't do their laundry r can't wash their dishes.

how hard is it really to do some of these basic things? >> i don't think it's a young generation thing. when i talk to people about these services, it's actually people who have spent two decades fighting over who's cooking the meal that night. >> some have come to me and said, you save our marriage. i'm like, really? they're like, really. well, thank you for your support. it's literally so they can get back the time they want to have in the evening. cooking should become more like a hobby. hey, i want to do it for fun tonight. let's do it. and there's nothing wrong with cooking. we don't bash cooking. >> you do it for a living. >> we do it for a living. that's our service. >> tri tran is the ceo/co-founder of munchery. >> thank you for having me. >> up next, the big shift in online travel, when "press: here" continues.

welcome back to "press: here." in the beginning, and i mean the beginning of the internet, there was priceline and it was good. since then, we've seen an explosion of travel sites. technically they're called otas or online travel agencies. expedia and orbitz and hotels.com. my favorite is hipmonk. airlines and hotels loved these sites, loved, past tense. these days, airlines and hotels don't want to pay for someone else to get you business. airlines are asking you to book

direct. lufthansa will charge you extra if you don't. hotels they they, and only they, can give you the best deal, like in this commercial. >> that was infinitely easier. like when you book a hotel at marriott.com. you get the best rate right there. >> here to help us understand what's going on in the online travel business is jen o'neil, ceo of tripping.com. traffic is up 3,000% year over year. she just got 16 million in series b funding. so people have gotten used to this online travel agency sort of thing. i don't think i can be bothered to go to lufthansa specifically. how are they ever going to get me away from expedia? >> so what lufthansa is trying to do is charge you a fee if you book somewhere else. >> why would i go to lufthansa? then i'd have to go to british air. >> exactly. >> can they possibly do that? >> they're trying.

>> couldn't you just go to like a meta site like hipmonk and find the deal you want on lufthansa and you're like, no, i need to go to the lufthansa site. >> that could be a danger for hipmonk because they're not going to get the booking. >> exactly. it depends on the industry, but overall for consumer, meta search is just better. i think consumers will still continue to go to meta search sites, to otas. >> define meta search. >> it's similar to an online travel agency. it's not a merchant of records. what we do is aggregate inventory from sites around the world. booking.com, sites like that. what we do is put it all in one place. if you come to tripping.com, type in paris, you get all of the rentals across all the different sites in one place. >> then you get credit for that booking. >> we do. if someone clix cks on a listin for paris and books, we get a percentage of that. >> so these meta sites always

worked really well until a couple of the big guys pull out with all the travel sites. oh, it's great, then united decides to leave or southwest. so you're still doing at least a dual search. kayak. it still becomes this very complicated process. is that a big risk for you guys? >> not really for us. it's funny, we actually -- so from day one we were concerned about that. we'd seen american airlines do it with kayak. we've been doing this for four years. in the four years, only one supplier has ever pulled off. they came back two months later and paid us double commission. for all of these sites, whether it's the hotel brand or airline or whatever, the key is bookings and occupancy in the hotel world, for example. if they can't get 100% occupy say with their brand site, they need otas. >> i wonder that's a reflection of the economy and the airline

industry. if american has difficulty filling their planes, they'll come back to kayak. >> exactly. there was a lot of noise around that. they're back on kayak. >> they are. >> so they want to fill those seats. >> there's air b&b. why are there really that many sites? >> in the u.s. and abroad. a report came out earlier this year that said the four largest players only have 22% market share. 78% of the market is everyone else. that's going to be, you know, smaller players like homestay.com out of dublin, ireland. it could be big property management companies like interhome in switzerland. it could be laketahoerentals.com. you have a wide range. >> when travel agencies online first started going online, people were saying this is the end of the middleman, right.

the travel agent. the typical travel agent is going to be out of business. it was one of those things that came up again and again when people talked about disintermediation, on how the internet was going to make all these middlemen go away. what you're seeing now is we have hundreds of new middlemen. they have a different form. >> exactly. the travel market is so huge that it can sustain all of that. so even if you look at hotel meta search, you have traveloci travelocity, there are so many sites out there competing profitably. there's so much money in the market. >> is that a good argument to the justice department when we talk about expedia trying to buy orbitz? expedia already owns, and few people realize this, travelocity, hotels.com, hotwire, trivago. expedia already owns all of those. but with so many out there, is that a legitimate argument for expedia to say, well, let us have orbitz too.

>> that's a good question. i think that's probably part of the argument they're making, but the interesting thing is if this goes through, then expedia and priceline are the two largest travel brands in the u.s. and collectively make up 95% of online business. it's huge. it's massive. i think the concern there is, well, when you have two big players like that, what happens is prices increase. not only for consumers but also their suppliers. then also innovation decreases. it's a lot hard herb to compete with major players like that. >> does your site -- i mean, it seems like if you're running a big hotel chain, they're taking away that business. does this get them back into the running? are hotels on your site? >> yeah, we're exclusively vacation rentals. >> so they're still on the sidelines. not playing in the game. >> exactly. >> i used home away when we took the kids to europe. we did like an apartment in paris. it was fantastic.

but sell people on this concept. some people still feel it's a little risky. i know when i get to marriott, they're going to have my booking. there's actually going to be a marriott there. some of these, you know, sometimes it feels a little sketch, right. some stranger is going to let you have their apartment. sell me on i even though i'm already sold. >> sure. in addition to the local experience -- so you got to take your kids to paris. you stayed in a local neighborhood. you probably woke up and there's a bakery downstairs, you're smelling the fresh bread and you're sitting on your patio and eating it. you have this colorful, cultural experience. beyond that, vacation rentals on a square footage basis are way more affordable than hotel rooms. you get a kitchen a lot of times, so you don't have to eat out every meal. you save money there. you often get your own pool, a backyard. we see a lot of people for super bowl coming up renting homes because they want the barbecue, they want to have their friends over before the game. you have a lot more space and privacy. >> jen o'neal of tripping.com,

founder and ceo. we thank you for being with us this morning. >> thank you. >> i'm booking a trip to paris. >> for the bread, yes. absolutely. we'll be back in a moment.

crime may not pay but hacking can. all over the world, hackers who could get a big payoff by breaking into commercial or government computer systems are

instead stopping just short and then getting paid to reveal those vulnerabilities to security experts at home. hackerone recruits people to find bugs and flaws and vulnerabilities in exchange for a bounty. maybe the nerdiest bounty hunters on the planet. alex wright has been on both sides of the fire wall. first as facebook's head of product security now as co-founder at hackerone. thanks for being with us. >> thank you. >> so you were actually approached while at facebook by hackers. we could maybe define that a bit later. they said, facebook's got a little problem here. you were so inspired, you went with them. have i got that story right? >> pretty close. one of the things we realized as we were building a security team at facebook is no matter how many recoursources we pour into you're always going to miss something. technology is always going to have bugs. that's all it takes for a criminal to take advantage of

it. one of the things we did really well with the team at facebook was to build a strong relationship with the hacker community. >> and reward the hacker community to say, here is a reward for finding the thing we didn't do quite right. >> i'm dieing to ask you this. in the last week, facebook generally has a pretty good attitude towards security flaws being, you know, notified about security flaws. in the last week, there was this intern or this kid who lost an internship at facebook because he found a vulnerability that facebook had actually acknowledged three years before, and then he did some kind of script to show you could use messenger to find out where your friends were in the world. they're like, you know what, i think maybe you don't get this facebook internship. they had already offered it, then they were pissed off and took it away. is that like -- i mean, i guess what i'm wondering, is that typical for facebook? does facebook like to hear about security flaws, or does it like to sweep them under the rug?

>> we're really talking about two separate audiences. you have security researchers who found something, and you have someone who's coming in as an employee and as an intern. security researchers have an obligation to describe the risks and vulnerabilities without generating a lot of unnecessary fear and misunderstanding and doubt. as this particular individual was going about describing this vulnerability to the world, he would identify himself to the press and media as an upcoming facebook employee and talked about how he was using this thing to stalk and creep on people. that's just the type of language that is probably going to lead to some type of disciplinary action to any employee at any company anywhere. >> and he did create an app that helped people stalk their friends. so right, i can see the distinction. >> i wanted to ask you about the ashley madison hack. the perpetrators say they seem to have some sort of social mission here. they wanted the site shut down. the site wouldn't do it.

well, we're going to, you know, dump all this personal data. it comes up here and there that there's this social goal from these hackers, that they're doing this for the greater good and whether anybody's asked for it or not. how widespread is that? do you just -- i mean, do you think they're just doing it to show off? >> it's hard to get into the actual motivations of those individuals. for people who don't know what ashley madison is, it's a -- >> and i don't. i don't have the faintest idea. >> it is an online dating site, as you will, for infidelity. they essentially encourage people to have affairs and cheat on their spouses. some hackers took offense to that and compromised the site and released the personal information of a large number of the users. >> like 40 million or something. >> now, had ashley madison paid -- and this is getting into

blackmail more than what you do, which is good. >> what i think is important there is we're using the term hacker to identify with criminal behavior there. it's not exactly the same. the people who possess the skill set to break technology are often the same people who know how to build technology. you can't build good, secure technology unless you also understand how it breaks. >> how does that work? when you have people who have sort of broken into my website, you know what i mean, where is the line between, hey, thanks for pointing out that vulnerability, and, no, you went too far into my computer system? >> our customers are very -- brands you use and recognize. they understand that they're going to miss something, so they publish these rules of engagements for hackers to find potential issues and report them in a responsible way. >> the rules are set ahead of time? >> oh, absolutely. >> i noticed all the companies you mentioned were tech

companies. you didn't mention like target and jpmorgan chase. i don't know, adobe is a tech company, but that was also one of the biggest hacks. do you think there's -- is there a lag in the awareness of the importance of security outside of the tech world? do people need to take this more seriously? >> the companies that were really -- that grew up on the internet are much more familiar with the realities of living on the internet, which is you're going to have a vulnerability at some point, and you're going to have a criminal come along. so they're initially more receptive to that idea that i can't solve this problem by myself. i can't solve it in isolation. i'm going to need some help for that. and that admission is a little harder for more traditional companies to make, but we're starting to see that trend happen very quickly. you're seeing car companies do it. you have an airline launching bounty programs. it's becoming the norm across all industries that you're going to have a vulnerability and you should probably get help. >> i don't see how you couldn't feel that way after this point after sony and all the others. so many ridiculous, ridiculous

hacks of millions and millions of people in the last year. it's amazing to me there are any companies that don't do this. >> what do you think about your own industry? we have this suspicion that, you know, these security firms, they go and hunt for a bug, they -- it's all -- look, we can hack you, pay us money, and let's get some press. there seems to be something very, you know -- like you said, the line between the criminals and do-gooders seems more fluid. >> what our customers do to mitigate that is like what we were just talking about, set those rules up front. they say what type of data they care about, what type of security precautions are in place, and the challenges are put out there. if you can access this data or bypass this security control, we want to know about it, and here's what you can expect. >> and alex, we were talking about middle women earlier, i'm going to coin that phrase. you serve as that middle woman who can be the sheriff who says,

here are the rules. because anyone can try to hack american airlines and hope to get paid for it, but by going through you, there's sort of a set of rules as to how this is going to occur. >> right. one of the core contributions that hackerone provides to our customers is the trust and reputation of these hackers. when a hacker comes to you, you can look at their track record and identity and say, here's how they behave when they send a vulnerability to united. that type of track record helps form a strong foundation for a trusting relationship. >> alex rice is the ceo of hackerone. we appreciate you being with us this morning. >> thank you very much. >> "press: here" will be back in a moment.

that's our show for this week. my thanks to my guests. i'm scott mcgrew. thank you. welcome tond

"communidad del valle." i'm damian trujillo, and today, the new superintendent of the franklin mckinley school district here in san jose. also, a conversation with little joe of little joe y la familia. this is your "communidad del valle." male announcer: nbc bay area presents "communidad del valle" with damian trujillo. damian: we begin today with the american indian heritage celebration, which is happening right here in san jose at the santa clara county fairgrounds coming up. with me on "communidad del valle" once again are vernon medicine cloud and bernice cuauhxihuitl aguilera. did i say that right? bernice cuauhxihuitl aguilera: you said it correct. damian: welcome to the show. now, vernon, you come every year because it's an important celebration that we have, but talk about the importance of the celebration that you have this year and what we can expect. vernon medicine cloud: definitely. american indian heritage is rich with culture, from the