when i left uber in 2017, uber was ahead of doordash and everybody else in food delivery.ad was lost in 2018- 2019, which led to where they are today. they needed the grubhub asset to re-gain. that meant with doordash really double ubereats' marketshare, that became problematic meaning that uber really has nowhere to go to get that lead position back in the u.s. anymore. emily: doesn't uber have bigger problems right now? ridership has plummeted as much as 80%. they have laid off large chunks of the company. there could be more layoffs to come. even you acknowledge grubhub has antiquated technology. why take on another potential problem? emil: i think the thing that makes me bullish about uber, we do think rides will come back and come back quickly. here is why i think there will be a substitution from mass transit where there's lots of crowds into ubers. there might be some substitution from ubers and rideshare into private vehicles, where people want to not be around anyone. i do think there will be more substitutions for mass transit into ubers. then where uber gets its

including grubhub and uber eats and doordash.olidation that many have expected is taking much longer. we will see more of a commission .ap than necessary we know this is a cash burning business. you expect to see the dominoes start to fall? who is the weakest player or the more ripe for a takeover? the argument can be made from a capitalization standpoint. uber would be -- the strongest. then you would have some distance to doordash. and postmates. uber would be the strongest, most well-capitalized. emily: a lot of movement in this phase. we will continue to follow it all. thank you for stopping by. coming up, where are we now in the quest for coronavirus drugs and vaccines? some very exciting developments to tell you about. this is bloomberg. ♪ emily: welcome back to bloomberg technology. we have breaking news out of amazon. it is implementing a one-year moratorium on the use of its facial with ignition technology by police. this technology has been very controversial over the last couple of years. moratoriumsaid this will allow

california regulators declaring uber and lyft drivers, speaking of uber, considered employees versusf-employed people. the new order striking at the heart of this gig economy business model. both ride hailing services have said you know what, if we have to reclassify our drivers to full-time employees it's going to negatively impact profitability. so shares are both down, we already showed you uber down 10%, lyft is down pai8.5%. >>> coming up, as the july 1st deadline approaches, is dish signaling its deal to create a fourth wireless network might be in real jeopardy? charlie breaks it next. he's got the details on the troubled deal when "the claman countdown" returns. dow is down 1756. heading back down to session lows. massmutual has been helping people weather storms. let us help you prepare a plan to protect your family, your loved ones, and your future. find a financial professional at massmutual.com and people you can rely on. i'm a dell technologies advisor. me too. me too. me too. and if you're a small business, we're with you. we are with you. we're with you. we want to hel

the market by bidding up uber shares here essentially saying if uber is in this business and it is, and mained committed to this business, betancesbe better be a consolidator of it even if not rationalize things on the pricing side, then just generate scale it's a bet to some degree on delivery becoming in a very long-term durable way, a bigger piece of the dining pie. in other words, it's behavior changes that may be have been accelerated by the shutdown period so all that stuff fits together. you're talking about at the valuations being discussed, something like 5% of uber's market value being bet on this company if it happens in this way. so not tremendously crucial in terms of make or break, but probably something the market sees as constructive even though nobody knows if in fact you can rationalize this business in a way that creates promising long-term returns. >> five minutes left we're continuing to make gains dow's up over 300. boeing, one of the biggest losers today after norwegian air canceled nearly 100 aircraft orders phil has to story. >> that put pressure on boeing yeste

the combination of uber eats and grubhub would have been 45%. theysmaller number will be more likely to have less of an issue from regulators. herer: is the goal consolidation, that you don't want others to emerge and leave you behind in a highly competitive space? >> exactly. there are economies of scale here. grubhub was really big in new york. the more market share you have in these individual cities, you have much more pricing power and restaurants have to go to you because users are using a specific site in that city. caroline: we will keep a close eye on the delivery wars. from new york, this is bloomberg. ♪ mark: i am a mark crumpton with bloomberg's first word news. america's top infectious disease doctor says he is quite concerned about the increase of covid-19 cases in states like florida, texas, arizona, and california. dr. anthony fauci told a senate health panel today that some states reopened too early and skipped of that work part of cdc guidelines. still, dr. fauci said he was "aspirational he hopeful" that a coronavirus vaccine

i know we saw that with uber. was that sort of your same consideration? >> we don't view ourselves to be similar to uber. we don't view ourselves to be similar to airbnb. we are globe. and at globe, our focus is to keep our customers safe and to uphold the law. and right now our customers, we asked them to book for essential reasons, and that is what they are doing. and we have exceeded every measure or met every measure that all of our other competitors have in san francisco that are in business. book a 30-minute stay in your house, scott, or in my house when you come downtown or in one of our hosts, we would open that conversation. we're more than happy to do that, but our platform does uphold the law, and we just want to be treated in the same way that all of the other home-sharing companies have been treated. >> with my last question here, emanuel, that we're seeing once again somebody come up with an idea that may maybe local government wasn't prepared for. it's not so much they object to your business, okay, we've never run into that before. we've s

and they now plan to seek a court injunction forcing uber and lyft to follow the law. and dozens of drivers stopped traffic and rallied outside the san francisco home of uber's ceo. they are thanking to be classified as employees an receive work place protections. >> we are here to tell the ceo that we say no to greed. we say no for economic and racial discrimination. >> we know we're employees. we put in those employee hours. we put in employee labors. >> uber released this statement, by a 4-1 margin, drivers said they don't want to be employees, that is because # 0% of the drivers are part time and drive fewer than 20 hours a week and most drive less than 10. >>> the department of justice is reportedly putting the squeeze on apple, launching an rding itico, over its app dentf justice and several state attorneys general reached out to app developers about their complaints. among thaplicyof taking a 30% cut from most transactions around penalizing developers for not using apple's in-app payment system. >>> the report did not say which states are involved. we reached ou

also for uber, losing the deal comes as a blow.egy was urgent because the pandemic has decimated uber's main business of ride-hailing. haidi: in the meantime, starbucks is grabbing the spotlight in the regular session. they are casting a $3.2 billion hit in the current quarter due to the pandemic. su: that is a major hit. many have been focusing on starbucks, watching it. it has been disproportionately hit among other restaurants because it depends on commuters. the pandemic has pretty much taken commuters away. it is also among those companies that has had difficulty offering guidance. it expects to report adjusted loss of $.55 to $.75 a share. they are also rethinking their store format. it reported comparable u.s. sales, down 43% in may. that is a huge decline. again, it is also be engaged as quicklyter for how customers are likely to return to stores. one analyst, the numbers were much worse than wall street expected. this people that expect some sort of crazy snapback are learning it is really just not going to materialize for

will he get it what will post mates give uber, and is he perhaps too eager?lex sherman reporting that post mates has a few options on the table. one is selling to uber two is selling to a special purpose ak decision company, or three going public as the company intended to do a post mamates deal would combie numbers three and four, but it is less likely to get past regulators but less likely to be a game changer it gives them the edge in a few key markets, but leaves them trailing in others that, there, highlights the difficulty that uber had in gaining market share over the last few years as the company has poured money into ride share producting like flying taxis, the food delivery market has not done well but door dash went from number three to number one and by a mile with 45% of market share. in lieu of their growth, they may be willing to pay up for postmates at the last chance for consolidation here in the u.s. the reported price tag is $2.6 billion notice that is higher than the last valuation at $2.4 billion. >> they registered so long ago, is the ip

uber last week announcing uber direct and uber connect to deliver more than just food to your doorstepsh announcing a partnership with cvs to deliver everything but prescription drugs. pharmacy tofirst join the platform. the company has been delivering groceries from convenience stores the last couple of months in competition with amazon and instacart. to join us with more, doordash coo christopher payne. tell us more about this partnership with cvs and what it means to your business. christopher: thank you so much for having me. obviously, we are in unprecedented times and one of the things we accelerated in the last few months has been the addition of convenience to our platform. today, we are announcing our partnership with cvs. it will be in four cities initially. dallas, houston, new york and philadelphia. one of the cool things about this is you will be able to get items,s items, household over-the-counter medication delivered immediately to your door. there is no need to have timeslots or rescheduling. we thought this would be critical but knew it would be even more critical in

one of the companies is uber. i spoke to tony west, one of the most senior black executives in this country, chief legal officer at uber, although he worked at pepsi and in the department of justice. listen to our conversation from today. been experiencing it like most others, and that is , going from the shock and outrage at what we saw happen to usrge floyd, and for many of who are black, it is a familiar out rage because we have seen this play out so many times before. you move from that to seeing the great activism and energy of people out in the streets, and a diverse crowd at that. you see a diversity in the throngs of peaceful protesters that you haven't seen before in other protests around black lives matter. and what you see is incredible energy from all sectors, not just in the halls of policymaking, but also from huge energy tech, around how we make sure we begin to finally grapple with issues of racial inequality while promoting racial justice? so for me, this is a really important moment. it is a real

that's before things like spotify and uber existed. these policies are basically from a different era and they all agree there needs to be some adjustment here. is also facing antitrust scrutiny in the united states. facebook,rberg of sunder pichai, all of them have said they will testify how big a risk is the scrutiny? not just about europe, but in the united states as well? question.'s a good nine out of 10 situations regarding apple and antitrust are not necessarily an issue. they are not the market leader in any particular area for hardware. problem is on the app store he can -- and the concern is that apple has their own services that competes with services like spotify and dropbox etc.. apple, obviously, has nobly to get a 30% cut to. -- has nobody to give a 30% cut to. i think it will be a change at some point either reducing their rates or allowing competing services. there are ways around this. long-term, what hardware revenue is still strong and we have other things coming down the pipeline that long-term will not be signific

freight which seems to be working along similar lines. >> uber freight. very good question an important one uber freight is a complimentary business to businesses like us what they do is that they are a marketplace for arranging simpler a to b truck loads if you need to get goods by truck only or lori freight forwarder is with goods that has to be trucked to a port to get to a ship or airplane to arrive at a destination to get back on a truck, go back through customs. the uber freight piece is a component they can and will be a great partner for us it is fundamentally a very different business >> thank you, ceo of beacon. >>> the trump administration has launched an investigation into digital taxes being adopted or considered by a number of america's trading partners uk, eu, brazil and india the government was prepared to, quote, take proper actions sylvia, you are covering the recovery fund for us and flagged the potential issue as a way to pay down this debt in the future what more can you tell us about this story >> indeed, this is a question of time b

overt wrote over -- a road here on an uber and the guy said becausedrives for lyft uber kept squeezing him. as far as the auto companies are concerned, you can't make money selling cars. i will talk about that in a second. but there were, with of the automobile itself, driverless cars in the past. when i talk about what is a driverless car? what i mean is what kind of driverless car are we getting now and how is it different? i think there is a simple way to think about it. communitarian versus libertarian. in the past, infrastructure, market solution, gm working with the government. now, the less involvement from the government, the better for these driverless car companies. not building infrastructure is better for them. invented. cars were this was in these ads appeared 1958. in magazines for electric companies trying to keep the government off the electric grid. trying to stop nuclear power from being developed by the government. so that they could make money selling electricity. perfectly reasonable thing to do. this one on the right, if you searched on the internet to look for dr

postmates of course offers local delivery of food and other goods because of uber's push with uber eatsefinitely generate some interest and make sense but postmates, sounds like at this point, again, according to the source, plans to go forward with the ipo. meantime, it's not the only interesting deal on the table right now. in unprecedented times, businesses are looking to diversify, increase their revenue streams and also increase their customer base so you've got a company like lululemon known for its yoga pants, they want to buy mirror, an at-home fitness company. you stand in front of this big mirror and a virtual class takes place in front of you, a little like peloton but takes place on a mat. finally there's amazon purchasing car designer zook who make autonomous driving vehicles. details not confirmed but it's estimated at $1.2 billion and would put amazon into the ride hailing business and let's just say elon musk's eyebrows a little raised by this. he happens to think jeff bezos is trying to copy him. charles: they say that's the greatest form of flattery. jackie, thank you

he wants uber and lyft to classify those drivers as employees. the ride share companies are backing a ballot measure that they say would provide drivers the flexibilities to set their own schedules. uber says, quote, by a 4-1 mar grin margin the drivers don't want to be employees. that is because 80% of the drivers are part time. >>> california voters will now have the final say on whether to restore affirmative action. today the state legislature approved a ballot measure that would repeal prop 209. it was passed by voters in 1996. it bans the consideration of race, gender and ethnicity in admissions and state hiring. it will now appear in the november 3rd ballot. >>> still ahead on kpix 5, and cbsn bay area, some north beach businesses managed to increase workers' salary during the economic downturn. hue the mayor is using them as an example for the city's optimistic future. >>> plus, crackdown on people not covering their faces. what a peninsula lawmaker is proposing as a consequence. >> what we're doing today is going around to isolated senio

beating uber to the top seat at the table. >> a very warm welcome to "street signs. it has been a pretty remarkable morning already in the first hour of trade. we've got a substantial selloff. the stoxx 600 down by 2.6% it is really a sea of red. just over a dozen stocks are trading in positive territory. this comes after the federal reserve meeting yesterday where they vowed to keep rates near zero through 2022. they forecast about a 6.5% contraction. when looking at a policy stance and eyeing up some fresh ip infection data and seeing a rise of new cases in the west and deep south concerns of the implications of opening up the economy and measures in terms of infection rates. renewed concerns from a health perspective and from a lockdown perspective also weighing on septemberment this morning let's look at european markets we've got red across the board every major region in the red. leading the way lower down about 3% dax about 2.7. ftse mib down about 2.7 and in the uk down 1.5% last year, we saw more than 10% worth of gains for several of these markets. so we ar

we're also getting some news on uber and lyft. what do you see? >> the state of california plans to enforce this rule that would reclassify their drivers as employees. this was first reportedby san francisco chronicle and this is really a question of sort of how are uber and lyft going to maintain their employee base and what will that mean for the future of these companies especially once people start taking ubers and lyfts in large numbers again. >> starting the hour talking about disney and facebook. now lyft and uber. let's get to headquarters in the half >>> appreciate it, carl. welcome to the halftime report our top story, the great stock market rally whether it's reaching an inflection point we'll debate the future of your money this hour with our investment committee rob is back. ubs private wealth management. also one of forbes top 100 financial advisers stocks are higher. that's coming off the worst day in a few weeks you have apple

uber is answer l uber, door dash, these guys are raising cash at massive numbers.s that you built these businesses on this poorly at this time during a health crisis and he can no, ma' and economic crisis aren't great. >> coming up, we reveal the final hot story tofhe week and it's sizzling. stay with us t that calms you, t helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. only from nature's bounty. the covid-19 pandemic is creating food insecurity on a scale not seen in decades. an estimated 54 million americans will struggle with hunger. ♪ with 200 food banks and 60,000 meal programs, feeding america is the largest hunger-relief organization in the country. join morgan stanley in supporting feeding america and your local community food bank. ♪ can i find an investment firm with a truly long-term view that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information. >>> welcome back to the fast five counting big

we met mostafa mukled last year, iving for uber in san francisco. but now... >> there is not that much people requesting uber since everyone is just staying at he and the only thing that is like more busy is just food delivery. >> reporter: so he switched. the >> it's like half of what we used to make, so after expenses likeour hour might be like somewhere between five dollars to ten dollars an hour. and that in a city like san francisco doesn't ever like living expenses. >> reporter: now wait: uappy restaurants; unhappy workers. okay, but how about the customers? >> i have very mixed feelings about it. >> usually the only reason that we would use uber easo is if there' sort of discount or promotion. >> i think we'll sort of get away from e apps again and just start going out either to pick up s directly or to actually go in and sit in a joint. >> reporter: well, but some group must unequivocally benefit from this indury, right? its investors. >> we should start by acknowledging that today uber eats does not make money. >> reporter: janelle salinev

. >> reporter: nike, uber and twitter joining a growing number of companies observing juneteenth as a paid holiday for

a deal would boost uber eats which has the second largest market share in the u.s. after door dash. uber tried earlier this month to buy grub hub but was beaten out by rival just eats in a deal worth $7 billion back then. back to you. >>> thank you, seema. let's check out our high temperatures for today. we'll see our coastal areas in the mid-60s but some of our inland east bay micro climates in the low 90s. we'll talk about the spread in temperatures and what's ahead up next. >>> you have your work cut out for you. on the roadways i'm trying to figure out why some slowing has shown up in the south bay freeway. we'll check the construction report and i'll let you mo what we find. >>> and here we go, tuesday morning. a terrific tuesday getting started right. you can see the movement on the bay bridge. we get started with the day. it is 4:46 for you this morning. dark and early for you, but we're all bright eyed and ready to go. >> good morning. i just took my first sip of coffee. i don't know about you. >> i have my big jug of water here. >> kari, how many cups are you down? >> i'm r

a group of uber drivers will protest at the san francisco home of uber ceo. organizers estimate the rally will feature a caravan of 100 drivers demanding that uber increased pay and benefits. they say while we were executives lived in mansions gig workers struggled to pay mortgage or rent during the pandemic. some good news for east bay bart riders. no service delays caused by a track replacement project near the bart station. it was finished ahead of schedule and a plan service shut down for the drive for holiday weekend has been canceled. the next track replacement project starts on the weekend of july 8th and 19th south of the hayward bart station. >>> seeing a lot of road work being completed during this time as well. >> oh, yeah. >> 4:18 a.m. is the time and let's check in with steve paulson for the forecast today. >> i'm not breaking any news here by telling you it will be the same as yesterday with maybe one degree warmer for some. if you are by the coast it is cool. if inland is hot. in the mountains, how about that? we see this in july and august and

more about it, tony and carter the options trade, makes sense to me and definitely prefer lyft to uber. >> toss the ball back to you, carter what do you make of levels here on this lyft trade. >> almost have to do it as a put spread something more nuanced than make ag directional bet as chart a stock, only one word, disaster if your first day in life is your best day, not good. right? we know this stock ipo over 28th of march $72, printed 87 the next day and basically went strain down thereafter hitting a low, what? 14, 15 and, yes, already rallied 180% one had a huge rally two, established down its entire career and there is no big "lift" coming week after week, month over month and nuanced approach is the way to do it >> a bummer way to think about that huh? the best day -- first day, the best day hope all of our best days are still many years to come. >>> coming up next, did you sail too pfaff offshore and get caught in this week's waves? for everything "options action" check out the website. optionsaction.cnbc.com while there sign up for our newsletter back after this. >> announcer

as opposed to public transportation i specifically think lyft is better suited to this uptick than uber. i think the chart for lyft is fairly constructive. you have a breakout above $35 resistance it's come back to retest that as support. i think this is coupled with the relative strength constructive for the stock to continue moving higher now, the company did provide guidance a couple of weeks ago which provides us with a lot of information as far as how they're growing. what we saw is from april to may they grew ride share growth by about 26%. bike rides were up 118% and they lowered their ebitda loss by about 35 million the number of ride share growth is double to triple the national average. as cities reopen, that's going to significantly boost that growth in terms of ride shares if you think about the elevated implied volatility here over the past few days and the fact that the stock has moved quite a bit on this positive guidance, i think there's somewhat limited upside here on lyft, but i do think that $35 support is pretty solid. the trade structure i'm looking to use here is o

this is outside the home of uber's ceo. so they oppose uber's effort to fight california's new law requiring drivers to be classified as employees and receive benefits. that law took effect in january, but companies, including uber, lyft, and doordash are behind the ballot measure to up-end the new law. organizers say the pandemic is hitting the gig economy workers especially hard with many unable to pay their rent or mortgage. >>> it's 5:07 right now on your wednesday morning. i open the window and you can feel the cool air seeping through right now. >> i hear the birds, too, chirping. >> oh, can you? >> that's what i was thinking. >> it's a beautiful sound in the morning. it really is. >> they're excited. >> i love it but it could interfere, turn it on yet, though. >> no, don't do that. we're taking in this cool air while we have it because it will be another hot day, and take a look at the sunrise that we have happening right now over walnut creek as we get started and ready to head out the door, our temperatures are in

they had signed a deal with uber in the spring.hing this post mates because this is a company that is -- if it was really going to be worth $2.7 billion i'm quite surprised, but if that's the case then mirror should have gone public at a billion, the company that was bought by lulu you guys ever use mirror carl, do you use mirror? >> we have had the mirror founder on "squawk alley" i think last fall. $500 million as you said not huge, but some pretty positive commentary about how lulu is thinking beyond physical repair certainly, even beyond e-commerce, it's about content. >> i was very, very impressed because that was something i thought nike should buy because they talked endlessly about membership and they got scooped. we have to think about what nike is up to, they are not thinking big enough >> there's the opening bell, guys, dow is down about 100. speaking of lulu, jim, mcdonald was on our air last night -- well, talking about mirror but also talking about the growing list of companies that have joined the boycott of facebook

uber said it is making changes to the uber eats delivery service.iane king hall joins us from jersey city with those stories and more. in mourning. >> reporter: good morning. wall street futures indicate that investigators are aiming to extend big gains. friday's rally of 829 points. the nasdaq store d p 500 climbe the cofounder of reddit has resigned from its board and is asking to be replaced by a black candidate. the company ceo said he will honor -- request. he said he will use future gains on his reddit stock to curb racial hate beginning with a one million-dollar pledge to colin kaepernick's know your rights camp. that it has been under fire for not taking a stance against racism and hate speech which has showed up on his platform. >>> uber is taking steps to support black-owned businesses. it launched a feature allowing customers in the u.s. and canada to order from black owned restaurant and pay no delivery fee. ubers cbo said they pledged to make the company more diverse internally. >> as more americans back supporting black-owned businesse

que cumpla con la nueva ley de california, esto luego que uber, lift a nuno skwaern que invertÍ rianrentases o hipotecas, a partir de 22 de julio, micro soft anuncio que teja su servicio de streaming de video juego, bueno seguirÁn enfocadoses en creaciÓn de videos juegos, consolas y servicio para que los juegos puedan correr en servidores de control remoto y ma naen develar una nueva versiÓn de la consola x-box este mismo aÑo. amazon paodrÍa agregar nuevos canales con noticia en vivo, mÚsica y deportes y pelo e kuls y pra mÁs de televisiÓn por ahora estÁn buscando a cuerdo ted licencia para su programaciÓn en vivo. >>> un lava manos portÁtil podrÍa ser de ayuda para varios paÍses. atoed de tener una pequeÑa cantidad de agua, tiene dos componentes donde el usuario ni siquiera tiene que tener contacto, se espera que esto ayude a detenerla propagaciÓn de coronavirus y ahora en florida, donde una exhibiciÓn de cabras, estÁ en un centro de comercial, gisell lÓpez nos cuenta mÁs. >>> multicolores, con diseÑos neutrales y re pren tantoed un equipo deportivo son parte de una composiciÓn en e

i think lyft is the play i think it's going to put pressure on uber going back to amazon real quick, i'm not really certain what this is all about but i wonder if the administration in some way is going to come down on amazon for this it's going to be interesting to see if there's any blowback. >>> coming up, a new financial friendship between big tech and wall street. details ahead. plus are travel fears easing new data may point to a rebound. there are times when our need to connect really matters. to keep customers and employees in the know. to keep business moving. comcast business is prepared for times like these. powered by the nation's largest gig-speed network. to help give you the speed, reliability, and security you need. tools to manage your business from any device, anywhere. and a team of experts - here for you 24/7. we've always believed in the power of working together. that's why, when every connection counts... you can count on us. >>> goldman sachs is teaming up with amazon to issue new credit lines to small business vendors on the site. the partnership which has re

uber down 8%, instacart now valued higher than door dash david, it's good to see you.hanks. >> sure thing. >>> shares of corning are also dropping today amid the market sell-off we're going to have the ceo next to talk about how the company has gotten a major investment from the government to manufacture glass that will help make a covid vaccine possible. >>> and check out the most surged tickers this is quite the list the dow itself is topping the list all are welor. we're back in two. our retirement plan with voya gives us confidence. yeah, they help us with achievable steps along the way... ...so we can spend a bit now, knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. oooh, well... i'm good at my condo. oh. i love her condo. nana throws the best parties. well planned, well invested, well protected. voya. be confident to and through retirement. (music) anncr: give customers access to precisely what they want, when they need it the most. with adyen, the payments platform that delivers convenience for all. adyen. bu

and grubhub trying to get to a transaction under which uber would buy grubhub all stock deal, as yougine our the weekend our colleagues at cnbc.com interest in grubhub from two other companies eat take away and delivery hero. european-based companies and they don't have listings here in the states and very quickly if you were to imagine a deal, of course an all-stock deal, again, in the current environment. one cannot imagine a cash deal in any way in this industry. and, so, they would probably have to get listings here in the u.s. to make something like that effective. but it does not mean that there isn't interest from those two companies in grubhub i can tell you, as well. people close to grubhub continue to indicate to me a great interest in being part of consolidation in that industry that is why they were in these talks with uber. but, jim, what i also continue to hear and we followed this pretty closely at this point and not really about price any more and we were talking a great deal about that ratio for its shares and what grubhub wanted but they have gotten bogged down in t

i want to share some news on -- on uber, grub hub and grub hub and those european companies that cnbceported on over the weekend. here is what we can tell you right now, what's going on uber appears to be moving towards exiting their talks with grub it was not about price, the two companies had agreed to a ratio of 1.925 weeks ago, but as we've been indicating and reporting for weeks now, the two really have not made progress, significant progress on agreeing on how they would deal with the antitrust review that would come their way and what remedies uber was willing to offer grub in order to deal with any potential opposition on the antitrust front. so it does appear likely from what i'm hearing from people close to the situation on both sides that uber is moving towards exiting those talks. they will have a board meeting i'm told fairly soon and there may be a decision made there the decision may be made for them and that's actually maybe the more important part of the story which i should have started with which is that grub hub does appear according to people familiar with the sit

grubhub. >> i cannot believe it uber didn't do it. so great for uber. they needed consolidation. what a mistake what a mistake. no guts, no glory. >> all right we'll talk more about that, guys, after the break, along with -- a slew of calls out today on apple, starbucks, campbell's soup, general mills kellogg and a lot more when "squawk on the street" continues in just a moment. y nature and stay asleep longer great sleep comes naturally with sleep3. only from nature's bounty. makes it beautiful. state of the art technology makes it brilliant. the lexus nx experience the crossover in its most visionary form. experience amazing at your lexus dealer. can i find an investment firm with a truly long-term view that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information. talk to your financial professional or consultant our retirement plan with voya gives us confidence... ...we can spend a bit now, knowing we're prepared for t

uber better by 2.33%. >>> put aside the lockdowns for the moment. could lyft and uber's slow go be coming courtesy of people trading in ride shares for two-wheelers? the covid-19 crisis has fueled a chain breaking demand for bikes and trikes. up next, kent international and its ceo arnold candler are here to talk about what they are doing to keep from being wiped out. we say wiped out in a good way. lots of sales right now. stay with us. business has been people. and their financial well-being. it's evident in good times, with decisions focused on the long-term. and crucial when circumstances become difficult. that continued emphasis on people - our advisors, associates, clients and communities gives us purpose, strength and a way forward. today. and always. i have the power to lower my blood sugar and a1c. because i can still make my own insulin. and trulicity activates my body to release it like it's supposed to. once-weekly trulicity is for type 2 diabetes. it's not insulin. it starts acting from the first dose. and it lowers risk of heart attack

are two of uber's biggest markets globally so the stakes are high here >>. >> we've been talking aboutoney with some high valuations in the last month or so but the point she makes is the most important one when they have to start classifying some of these workers and the costs associated with that, that's going to be the headwind here. i really liked lyft here i'm bullishly positioned in the name with options. but breaking 30, there's a lot of room to the downside here, especially if the reopening trade doesn't go as planned. that said, i think coming out of the pandemic with a vaccine in the next 6-12 months i think these stocks are ready to party a little bit here but they really need some clarity on this worker issue. >>> coming up, nike on the move over the past three months plus, tesla coming in dead last in jd power's quality study. all the problems they saw ahead. >>> welcome back for the first time ever, tesla included in jd power's initial quality survey, but it might have been happier to stay off that list. >> we'll talk about the tesla results in just a bit. let me show you

i think it was pretty clear that they were going to be regulatory challenges if uber had really goneying to get grubhub. maybe the battle lines are drawn now. what should investors expect here with profit margins, with spending outlays, incentives to workers, all those things that tend to happen, i think, once the sides have kind of amassed their troops >> so, in terms of profit margins don't hold your breath i think these companies, whether it's amazon or facebook or google or, you know, alibaba is in that same camp, they're doubling down. they're doubling down when all their peers are not doing well offline or online, these guys are going all in they have so much money that they need to put that money to work in very high roi opportunities and crisis like these affords them the opportunities. in terms of just mna, i don't think the big tech is going to be allowed to acquire anything up size, right uber doesn't even have market share number one market share. they're number three because they were going to acquire number two, the government effectively was going to give them a lot of

when you look at uber and its push with uber eats you can understand why it would want to acquire postmates because that is company that delivers food. all these businesses are doing real well especially with the pandemic right now. sources telling me that postmates wants to move forward within ipo on its own of the guys? connell: we have deion raboin, stocks editor at "axios." we get a headline all the time virus cases are spiking. we might have more lockdowns in texas, california, whatever, florida. as jackie says the stock market wraps up its best quarter in a long, long time. what's going on? >> i think what's going on is as simple as one word, stimulus. folks are expecting maybe bad news equals good news when it comes to the federal reserve and the u.s. government. we've already seen about four trillion dollars in deficit spending from the government. we've seen about three trillion dollars added to the balance sheet on the fed. i think the thinking goes if the coronavirus cases get worse if we do have to lock down more parts of the economy if more businesses simply can't function, tha

. >> uber and lyft have made juneteenth an official holiday for employees, but that does not apply for the thousands of drivers who operate as independent contractors, a large proportion of them black in recent weeks, and i don't want to take away from this, the ride sharing companies, they have spoken out on racial injustice and followed up with actions but of course racial inequality goes far deeper and the divide is on display in the gig economy. according to uber's most recent diversity and inclusion report, the proportion of black leadership sits at 3.3%, and among full-time employees it's at about 9% but black uber drivers who according to another survey make up 18% of totally drivers, and they don't get the day off unless they choose not to work. so today a group of gig economy workers, they're circulating a petition that has more than 250 signatures to executives, not just at uber and lyft but door dash, instacart and gig economies, demanding sick lever, health insurance, work comp and what they say is meaningful representation for black gig workers. this comes as the classific

. >>> the battle continues for uber and lyft drivers who want to be recognized as employees.ho oversee uber and lyft say ride chair drivers are employees under the state's gig work law. for now, that's how the companies have to treat them. the news comes after california filed a lawsuit trying to force rideshare companies to reclassify drivers. but there's a measure on this november's ballot sponsored by uber and lyft that would specifically exempt drivers from the gig work law. >>> small businesses closing because of the pandemic, but even star bucks is getting hit. starbucks has lost more than $3 billion in the last quarter. it plans to shutter 400 locations in north america and it will move away from the cafe model, adding carry out and pickup only locations. no word yet on which stores star buck also close. >>> protests in the response of the death of george floyd have prompted ibm to get out of the facial recognition field. it will no longer build or sell the software. also, amazon is banning facial recognition software by law enforcement for one year. recently, civil li

. >>> uber announced it will give worker as paid day off for juneteenth. they are honoring the day when slavery was abolish in the u.s. uber said to embrace the meaning this year, we are making it a paid a day off. we encourage employees to stand up to racism, either by learning, participating in community action, or learning to make change. uber promised additional actions inside and outside of the company to advance justice and drive real change. >>> new this morning, google said they will increase diversity in the leadership ranks by the next 5%. the ceo said they will add more black employees and other underrepresented groups. currently black people only make up 3.7% of the work force. the company said they will post job ads internally and externally, and increasing investments in cities with large black populations. >>> right now the search is on for a man who tried to steal an atm. the closer look at the suspect, seen driving a blue nissan moran o . it was yesterday morning. only the atm was targeted. the frame was damaged in the effort to remove it

when you think maybe there is nothing there for them but apparently uber feels otherwise.g there for them? is all this despite the promise too late? what are you hearing, katherine? >> we're seeing a lot of applications coming not only from uber but independent contractors across the country are who just becoming educated as they can be about their access to ppp. neil: the program to include upper drivers and others that might benefit from this, is that a harder process to go through, kathryn? how would you describe it? >> it is easier. the documentation is little more straightforward. they qualify for much lower lines, for a loan as little as $1500. foremost financial institution, that is manuel process. they don't generate revenue from 1500-dollar loan to make it worthwhile. because we automated on boarding and application process to the sba we're able to do that for them. neil: you know, this is a dumb question, you would know this certainly far better than i, are uber drivers considered independent contractors and as such, you mentioned this might be easier for them to

protesters say companies are illegally misclassifying workers as independent contractors and uber is abandoning drivers during the pandemic. a state law that went into effect this year puts restrictions on who can be classified as independent contractors or freelancers rather than employees. >>> sunny and warm except on the coast. a difference of 30 degrees in some places. every year, you can see spectacular celebrities at aids walk san francisco. this year they are coming to you! join bette midler gloria estefan matt bomer stars of queer eye rupaul's drag race superstars. for aids walk san francisco live at h streaming on july 19 to benefit prc and their covid relief efforts all over the city. register now at aidswalk.net >>> san francisco's outside lands has been officially canceled because of the pandemic. tickets this year will automatically roll over. full refunds can be requested until july 24th. next year's lineup will include lizzo and the strokes. tickets for 2021 go on sale tomorrow at 10:00 a.m. >>> pretty good shaker in the eastern sierra this morning. a 5.8 magnitude ear

uber went out at $45 and their ipo, they are trading at barely $30. they poipo'ed at $72o obviously there is that pressure. neil: susan li with much busier traffic pattern on the avenue of the americas and that is something new york governor cuomo has been touting, that the city and state are coming back. by the same token, acknowledging that not everyone should be happy. take a look. >> people died there, they didn't have to, it was mismanaged and the operators have been given immunity. what do you have to say about that? >> several statements that are not correct but that's okay. it's your show. you say whatever you want to say. the nursing homes were the most traj iigic situation. we have to figure out how to do it better the next time. neil: those two are brothers. when the brother asks a tough question, the governor doesn't like it. that could be an interesting dinner later on. janice dean has been talking about this as a problem that very few are discussing, the huge disproportionate victim count that includes older people. this is a very person

now, this injunction wants uber and lyft to comply with ab-5.ers need to be classified as employees and not independent contractors. that means uber and lyft have to pay driver benefits, overtime, minimum wages and it's also, by the way, not a good time when california is already dealing with record high unemployment so uber telling us the vast majority of drivers want to work independently. we have already made significant changes, they say, to our app to ensure that that remains the sk case under california law, where over three million californians are already without a job. let's bring up what lyft says as well because lyft says the california legislature passed a law that was so badly drafted, it destroyed thousands of jobs before the ink was dry. if they were to grant the sdwroern attorney general's request it would have a devastating effect on californians at the worst possible time. some say uber and lyft are trying to pass the buck to the state by not paying these benefits because they may take state benefits instead. uber and lyft have

this can only help, i would think in terms of getting a better price if uber talks are going on >> i'm not suggesting it's in grub hub, but if you look at the stock, does it have more room? yeah i would suggest it does have more room and this is a $145 name and it has room up to 80 bucks and again, it's one of those names that people learned about in the last couple of months and they're not going to flee when things get back to normal i think you stay with this name, mel. >> chris, what do you make of the charts here? >> i think i had this one spot on this is a name like a lot of the small caps have been in a bear market for two years this peaked in the summer of 2018 this peaked for two years. there was a major, major low any pullbacks, you want to be very aggressive here and this say major bottom it's time for the final trade. mike khouw >> the market had a big rally here you don't have to sell your stocks, but you can sell covered calls against them and you can tune into options action for more on that. >> that's called a tease. >> i would be a seller of ibb here and the call is te

that includes taxis or rideshares like uber and lyft. and outdoors only if you're not able to socially distance. now, there are exceptions. children are 2 do not have to wear masks. neither do people with medical conditions that would keep them from wearing one or people who are hearing impaired or communicate with the hearing impaired. you also don't have to wear a mask if you're at a restaurant as long as you're socially distancing. critics are calling the governor's mandate a one size fits all policy that's not productive. >> let people who are adults make common-sense decisions and people who are sick should avoid being out and about, and everybody else should be able to go about their business and use precautions that are consistent with their own >> as far as enforcement, can you get cited or fined if you don't wear a mask? san jose's police department and the sonoma county sheriff's office have previously said they are refusing to enforce local health orders. san francisco and oakland say they're checking in with their county heal

we have just heard uber making the use of facemasks mandatory for drivers and passengers.ns perhaps, can you tell me when shielded people like myself can actually go into shops for essential food? well, we don't know. robert jenrick, the secretary of state for housing, who looks after this issue, made an announcement on the 315t of may to say it would be reviewed next week. so i think we are still waiting for that, amy, to here in england anyway. so amy, u nfortu nately, england anyway. so amy, unfortunately, no news for you yet. i will ask you this question as well, cathy. it is similar to the first one from deborah. this is from melody. shops are now opening but why are masks not mandatory? staff and visitors should be protected. why is the uk always a step behind? we have heard andrew's thoughts on that. it will be interesting to hear yours. yeah, again, just to make the point that the rules and the advice are different across england, scotland and wales, soak right strong message —— so quite a strong message in scotland about facemasks. in england as well. the guidance

the s&p higher by 5 points and the uber stock up over 3%. anne, back to you. >> all right, kcbs radio financial reporter jason brooks, thank you for that. >>> the entertainment industry, as we all have, been hit hard by the pandemic, but hollywood is ready for the comeback. >> union guidelines could make shows and movies different. cast and crew will be tested for covid-19 three time as week, and actors need to remain as distanced as possible, and live audiences are discouraged. >> the content will look different because the writers have to rewrite to make sure people can be as distant as possible. >> they will be quarantining cast and crew together to begin filming sooner. >>> traffic is busy, especially on the bay bridge. >> reporter: this morning, working your way to the bay bridge, and at the toll plaza, metering lights turned on at 5:47 this morning. it's been slow for some time this morning. sluggish off 80, and the maze, extended beyond that point. 580 looking better, and using that to get to the bridge, slightly better speeds until t