uber says and lyft says, we can't exist with that model as employees. the cost structure just doesn't work a lot of the public online says it's cruel and unusual you want to use these guys for their cars and discard them. what do the drivers think? has anybody asked them >> reporter: that's a very good question, but there's no easy answer to that a lot of drivers will tell you that they don't want to become employees because they use the income as secondary income they have other jobs there is a large group of drivers that says that, but when you consider the group of drivers that do do this full-time, they work their evenings and weekends, they take risks amid the pandemic, those are the ones that really uber and lyft have built their platforms on the back of and they do not enjoy any of the benefits like protections and unemployment insurance and all of those things that other employees do get this is a very, very tricky issue, brian the drivers will get a chance to vote on this in number, the drivers along with the riders. we'll see what happens far

people need an uber driver. now they're facing yet another situation. most uber drivers we think, and the company has certainly told us, prefer not to be full employees, although it does come with things like medical benefits. they like the flexibility of being a gig worker. but under ab-5, they wouldn't be. >> but if uber went away, that would certainly affect a lot of people i'm sure. thanks, scott. >>> we want to turn now to decision 2020. and joe biden picks a vice president. this is one of the many headlines that we saw here. it says -- this is from the san francisco chronicle biden picks harris for bp. now inn in-depth look at the selection of kamala harris as joe biden's running mate. she is the first major party ticket person of color, a woman of color to ever hold that position. but that only tells part of senator harris' story. >> reporter: as joe biden's newly minted running mate, senator kamala harris has already made history, becoming the first black woman to appear on a major party presidential tic

uber is using aggressive tactics. don't know about you think i'm thinking about flash backs he is taking a lot of the tactics that we saw from uber 1.0. we know how that worked out. is this the right strategy maybe, you know, maybe this is validation of soft and cuddley only works until it didn't they were threatening it has to be a value gags of how you pull the tactics, and it works. >> all right, mike, thank you. >> meanwhile, the rally continues to be unstoppable now. up 20% for the bont. fill has more now. >> good morning, carl. >> i was thinking back when this was right after the ipo. now it is well above that. now well above 2,000 and if you take a look at test la, keep in mind that shareholders will then participate in the stock split they trade on the split adjusted level on august 31st we're going to show you this because it is astounding when you consider tesla's market cap relative to the big three. if you added all of them up, tesla is still worth four times more than all of them combined four times more.

uber out with earnings showing th

i think that uber is well positioned though with uber eats i love them. i love that transaction.ade a very compelling case on cnbc about profitability in a year's time i felt better after hearing him. this overhang makes it tough to own the stocks there is too much uncertainty. we have so much uncertainty and stocks and sectors that are better positioned longer term. i think i'd choose those than play around with this for the time being >> when we look at the broader markets, this is the oem averages in the red. you're bullish on small caps why is that? where do you think they can go >> i think first of all, my clients that trade, they're goal is to receive nothing but rotations and commodities goal and small caps i think that leads for a window about the future about improving the economy. yes, there are parts of the economy that are strained particularly suma and leisurely industries i think the bet is the economy will get better over time. >> all right we'll leave it there thank you so much. we will see where we go in at the after market mean while, let's get a news alert on f

bill that made uber drivers employees. a case where she has been on the side against tech, even though her brother-in-law, tony west, is the chief legal officer of uber. emily: right, that's a very interesting tie, her relationship to tony west, who runs all of uber's legal operation. of course, don't miss our coverage of the dnc starting at 9:00 p.m. eastern time. coming up, our conversation with the ceo of infosys on how he is navigating china and evolving immigration policies around the world. ♪ is one of the largest i.t. outsourcing companies in the world and has seen its business battered not just by the pandemic, but by immigration policies changing in the united states, forcing the company to pivot and higher more local talent instead, rather than bringing on i.t. consultants from india. caroline hyde spoke with the ceo, said leo porac -- salil parekh, on how he navigates the changing environment. salil: our focus has been on our businesses in the u.s., which has been 60% of our business. the rest of the world, aust

uber's ceo dacoming up. are questions just can you make it. >> coming up, reading, writing and retail trying to figure out what back to school looks like ditis.swer will have huge implay incaon the dow is up 175. we are back after this (bling) see, incident resolved. how did you... gotta enjoy the small wins. you keep being you, derek. keep being you. >> welcome back to "worldwide exchange." t-mobile says it is overtaking at&t to become the second largest carrier. adding 1.2 million new customers. also posted better than expected revenues during the period shares rising on that news shares of quicken loan company jumping. retail investors were big buyers and the most actively trading name shares of dropbox are dropping despite better than expected earnings revenue the cfo stepping down and will be replaced by the current accounting head. >> thank you the fall school season is in limbo as many try to find a plan for students the same goes for retailers with many essentials no longer needed like clothes we are

why uber should give them standard employment benefits.here are a lot of other workers, the majority of them may be doing less of the work who drive much less. they really sort of can jump on and jump off the app. i think uber is trying to have both classes of workers. the law is properly set up to handle the situation when you've time ande app all the other workers jumping down when they have downtime, when uber is in particularly large demand. caroline: dara outlining the current solution is not perfect. being an independent contractor. they are trying to ineffective how theyproposals as can better reward drivers. will that be enough to appease the legal arguments if you are saying the round hole in the square peg when it comes to what the law is trying to do to fit around this new mode of working? has been i think uber trying to make this argument but it is getting frantic a little bit too late. california, the california legislator passed a law that the courts are implementing which was pretty clearly going to make it harder for uber k

is a possibility after the ceo of uber made a statement saying that uber and lyft has to classify theirworkers as employees. >> if the court does not reconsider then, in california it is hard to believe they will be able to switch the model to full-time employment. so i think uber will shut down for a while. >> reporter: some drivers have been hoping to become full-time employees. >> it is something i've been preaching for for a wile. for drivers to be considered employees. as a driver who has over 20 as a driver who has over 20,000 rides i thought it would be fair and i'm willing to drive a full time to be considered a employee. >> reporter: this cames back from last year requiring gig workers to be classified as employees. in response places like lyft, uber, orÃand others sued, and issued proposition 22 on the ballot. the companies they say are flexing their muscles. >>uber and lyft are pulling or threatening to pulling out thare call t for not followate the law.>> reporter: is not without president in 2017 uber and lyft pulled out of texas because the state required fingerprints of d

>> uber, that's about $10 or $12 per share.t one point, an anchor in the ship and now it is a huge asset and doubling down with post mates. we continue to see that as a big part going forward not as much for lyft but for uber, that's a big part. a game-changing environment for overall feud delivery across the board. >> dan, always great to get your thoughts have a nice weekend. >>> coming up, find out what jay-z and jack dorsey were doing in the hamptons this week. other top headlines this morning. >> the white house has designated teachers as essential workers which means they could continue to work even after testing positive as long as they remain asymptomatic. >> a top official says he would resign if they rubber stamp a vaccine before it is proven to be safe and effective. >> and two tropical storms that could hit the country the same day. one could impact puerto rico and the virgin islands, the other headed to florida. forecasted to merge in the western gulf of mexico both could impact the u.s. next week stay tuned ♪ with

action to protect the prisoners and some rideshare drivers are fighting back against companies like uber and lyft to may soon have to pay them benefits i live in san francisco with reaction coming up. >>and good evening. everybody, i'm vicki liviakis and i'm catherine heenan for grant lotus tonight. thanks for joining us for kron 4 news at 8 on our top story. the debut, the biden harris presidential ticket. >>as i said joe when you called me, i'm incredibly honored by this responsibility. and i'm ready to get to work. >>senator kamala harris, former vice president joe biden making their case for the first time as running mates the political partners appeared together today and biden's hometown in delaware. kron four's jonathan mccall has more on the historic announcement and their first public appearance. >>a first look at a historic pair. joe biden and california senator kamala harris making their first public appearance as the democratic ticket wednesday in delaware. >>she's worked hard. she's never back down from a challenge. and she has earned each and every of the accolades and achi

the uber rides business is now substantial.investors about it and as cities especially in the u.s. are shut down, the uber rides business is down substantially on a year on year bas basis. europe, international markets are opening up much faster. we're a global company. home delivery of food, uber eats, that business, we're helping restaurants. that business is up on a year on year basis. our rides business isn't doing as well as we want it to. any earnings opportunity -- out there to be -- in your home -- or being bought. >> all right. i think i've lost my signal with dara. we're going to wrap it up. always good to see you. thank you for joining me this morning. >>> we've talked a lot about kamala harris as joe biden's running mate. does she bring any extra voters in november? extra voters in november? ♪ ♪ ♪ the open road is open again. and wherever you're head,is t. book direct at choicehotels.com. ♪ to bit never bothered me.dust? until i found out what it actually was. dust mite droppings? ewww. dead skin cells? gross! so no

. >> uber sees revenues fall almost 30% sending shares lower after hours. a warm welcome to "street signs. we've got some macro data. france's trade balance fell to 7.96 billion in june down from may's figure comfortably beating expectations in germany, exports are posted their biggest gain rising 14.9% in june. strong demand from china spurred a near 9% jump in industrial output chinese exports rose 2% easily beating forecasts. imports contracted missing estimates of a rise. officials are reportedly said next week to reach the talks asian markets have traded lower. main land chinese markets taking a hit down 1.4% amid escalations with washington moving to ban tiktok owner bytedance and we chat owner tencent >>> european markets have been open about an hour stocks are up 15 basis points. this follows a drop of 0.7%. yesterday, the u.s. session also fairly muted for most of the trading session. we did sessions higher facebook gaining notably following the launch of reels which is a competitive rival to tiktok that will be part of their instagram platform u.s

the judge has given uber and lyft ten days to file an appeal. >>> shares of uber and lyft fell about 10% and both stocks are up by double digits. >>> now to oakland, and a vigil tonight trafather of 5 who was gunned down over the weekend. it happened on a street corner fleer lake playt. he was one of five people killed in oakland in less than 72 hours. amber lee has more on how he's being remembered. >> reporter: julie, organizers say it's important to hold the vigil for the victim and to sail his flame. that is a show of support prelim and his family. >> reporter: community leaders held a individualm to mourn the victims of a recent homicide. he was shot and killed just stepped from the black lives matter memorial. his family tells me he was a loving father andalize. >> this man took carouser all the women in our family. and for limto just have a life taken like that. >> reporter: brazil was found lying in a pop of blood by the bus stop. family plebs say they don't know would i lease in this area. they told me he planned to move from murset last friday but decided to stay to finish

uber with weaker than expected results.ference call is underway plus, we're following late-breaking developments out of capitol hill. lawmakers are kicking off a high stakes meeting on the next round of coronavirus aid we are live in washington with the latest later, steve grasso is stepping up to the plate to pitch his next best idea why he thinks this housing related stock is a total home

if california is basically shut nour lyft and uber, the hotel lobby is huge.k here, and maybe the model doesn't work in every city >> you think they have a solid future >> i do. what they're seeing is while bookings you are plummeting, they're increasing in rural areas. we have a woman who hosts two sites outside of austin said that initially now she's booked through october. she's even been raising her prices to try to slow down demands. i think while people aren't necessarily traveling as much to nor or san francisco, they are wanting to get away from the city to maybe more urban or rural areas. >> and the ceo has been insistent that this that this is going to happen. palantir is moving to denver, colorado alex karp slammed the monoculture of silicon valley, but it's not clear -- >> first off, alex karp haven lived in. >> caller: >> caller: he livers in a barn in the middle of new hampshire. i was born and raised in california, but it's not what he calls the monoculture. it's the cost of housing they pay their employees in equity, it's hard to make rents. yo

uber and lift are in the process of appealing the decision. >> i think i'm in favor of uber and lyft abiding by the laws of the land. i've been an employer in california for 30 years and i've been using these regulations to hire and train employees all along. the fact that these rideshare companies have not done it is a shock and surprise to me sumac is a necessary that they need to shut down or that more of a scare tactic? >> i think it's more of a scare tactic. they have 10 days to appeal the ruling , which means they have to set up symptoms systems to turn drivers into actual employees which would give them access to sick pay, overtime pay , minimum wage, unemployment benefits, paid rest periods, it's the pretty big undertaking. i can imagine that they haven't seen it coming and prepared for. i know they will fight it. because california is just the beginning. as soon as california transfers all of those independent contractors to employees. states like new york and all over the country will slowly follow suit. it is unfair for competing businesses like taxis to have to pay payrol

let's turn to uber now.own has done to its business. let's take a look at the figures. uber is still losing money — a lot of it. $1.8 billion in the three months to the end ofjune. that's less than the $5 billion it lost this time last year though. total bookings on its taxi service slumped 75% in the period. and the number of people using uber at least once a month slumped by 44 million — from 99 million to 55 million. there was one bright spot for uber though. earnings at uber eats more than doubled, as people trapped at home ordered more takeaways. it stands to reason, doesn't it? joining me now is daniel ives, managing director of equity research at wedbush securities in new york. thanks very much forjoining us. ina thanks very much forjoining us. in a sense, the uber story, as those results show, just fall into type, don't they, a pandemic lockdown means you don't go out in cars and you do order in. they are hurricane like headwinds on the ride jones business. if you think about this covid environment,

uber with weaker than expected results. the company's conference call is underway plus, we're following late-breaking developments out of capitol hill. lawmakers are kicking off a high stakes meeting on the next round of coronavirus aid we are live in washington with the latest later, steve grasso is stepping up to the plate to pitch his next best idea why he thinks this housing related stock is a total home run. >>> we start off with a $46 billion market mystery that's how much facebook added in market cap today. the reason not entirely clear many pointing to the launch of reels, the answer to tiktok. we should point out that news was out yesterday morning. facebook shares today surged 6% to a new all-time high so guy, what's your take on this move >> well, i have no idea why it moved like this. i'd be lying if i said i had an answer i will give credit to karen because she's been on this something we said, you go back to the middle of june. i remember this when rei, north face, patagonia came out and said they were pulling

relative to uber.d of clarity on that side of things would be helpful given what we have heard from uber last week. it seems like a trajectory still noy low, and i would say longer expecting a hockey stick type recovery in that market. second, looking at what type of improvements they are making. if we can see any type of clarity in terms of profitability in the future, that clearly is what investors care most about. if we can get any type of clarity on that side of things i think that will be important. finally, commentary about the gig economy. in california, some important news coming out. all eyes this fall with the election and proposition 22. any commentary they have on that side of things will be critical in terms of the performance of the shares. lisa: that is a lot. let's unpack. i want to start more broadly with the ridesharing industry. we have seen turmoil as a result of covid, question of whether the drivers will be safe, whether riders will be safe. how much does this pandemic fundamental

uber issued this statement. we are glad that the court of appeals recognized the important questions raised in this case and that access to these critical services won't be cut off while we continue to advocate for drivers's ability to -- >> we need to know that our passengers are safe. when you take away our rights, we can't keep everybody safe. >> there is one other important aspect of this legal challenge, proposition 22 on the november ballot. uber lyft and three other companies put $3 million into that ballot measure classified drivers as contractors. david louie, abc 7 news. >>> and the party is over for airbnb. the company issued a global party ban at rentals to address the ongoing issue with unauthorized parties during the pandemic. the new policy also includes an occupancy cap of 16 guests. airbnb says the ban will remain in effect indefinitely. >>> our smoky skies could be i felt gross. it was kind of a shock after i started cosentyx. four years clear. real people with psoriasis look and feel better wi

eric: this is a big move against uber in its homes. -- home state.nia legislators passed assembly bill five, which clearly has a goal of making and lyft drivers employees. that went to the courts and hoover has been fighting it out. now we have san francisco superior court saying they look like employees. like everything in this world, that could be appealed, and certainly uber will do so. they have i think 10 days to try to push that out, and see if they can get an appeal going. uber a big strike against drivers being independent contractors in california. romaine: eric, assuming the companies lose their appeal and this effectively becomes the law or the rule in that state, is there a business model here financially where they can operate and be profitable while keeping these drivers on as employees rather than contractors? that's ah, multibillion-dollar question, i think. it is complicated. one, i think technically there will be a question of whether uber wants to show that it can make it work, because it would open the door to a lot of other place

and doesn't have food delivery edge uber has.ee leaner cost structure from lyft and better positioning post pandemic back to you. >> yeah. questions about whether they saw the lows in terms of ridership thank you. deirdre, thank you deirdre bosa two minutes left in trading day. mike, whether or not are you seeing in the market internal. >> not really flattering what's going in the headline index, opposite of days with great internal action and the index not doing much slight advantage on new york stock exchange, up versus down not conclusive the nasdaq similarly mixed even though market cap weighted nasdaq composite is a good deal higher that's something to watch. about the rotation recently, it's still in there if you look at the numbers like industrials versus technology over the last week or so, it's kind of holding this advantage it's really more cyclical. it's looking good on five-day basis. volatility index more less in tune with the ramps of the highs. it's been lower in the last few days right now still cooperating the ma

i don't believe that's what it takes for uber and lyft to make a living >> mr.y general, uber ceo or in the past couple of days called for a sort of new model for benefits and support for economy workers. what he's presenting has contractors with some guaranteed benefits but i imagine a new model could work any number of ways there could be employees has anyone approached you about that and have those conversations moving anywhere or is this more of just posturing from the company's about presenting new ideas that aren't really being talked about. >> i think you do have to wonder why is it that it takes more than ten years and lawsuit for two innovative companies to come up with a new idea on how to provide their employees with the benefits they are entitled to. there's nothing that stops uber and lyft from providing these benefits and services right now which these employees are entitled to which the court in california recognized. there are conversations going on i think certain these companies want to move themselves out of this legal predicament they're in i

lauren martinez is live for us at uber headquarters. >> reporter: uber and lyft are appealing judge's order. but if that appeal fails, uber's ceo says they may hit down temporarily. this is after a lawsuit in may, city attorneys sued uber and lyft accusing both companies of violating california's gig worker law. >> the people that are doing the work, the majority of them decide that they would rather not have, you know, full time , they should be the ones to make. >> reporter: if uber doesn't win its appeal, the ceo says the service shutdown could last until november when california voters are expected to decide on proposition 22, an initiative aiming to keep rideshare companies and delivery drivers as independent contractors while adopting new labor and wage benefits. a hearing is scheduled for 11:00 this morning. lauren martinez, abc 7 news. >>> and developing news overnight, the quick moving lake fire in southern california is continuing to grow. it has reached over 10,000 with no containment. scott rife is overhead tracking the spread. >> reporter: and we're getting an early morni

remember when uber was going to be a $100 billion-plus market cap company.ten anywhere close to that as a public company. lyft is far below their private market valuation seen years ago. the question going forward, is this inevitable? do they stay here or are they able to keep their business model as is, not just here in the u.s. for uber but around the world? that's increasingly looking like it's not going to be the case. of course, what happened yesterday, that 11th hour reprieve they got, that just kicks the can down the road. we'll see what happens in november but that will be a pivotal moment >> eric, it's imperative to think how many different companies have sold themselves aztec companies. there is all this excitement especially in the early stages, but here they are a year after the ipo and it's like, eh. >> every industry you're in, there's technology it's every company from rideshare to insurance can't call themselves technology companies. they are what they are people are buying cars, they're not getting into cars. it doesn't matter that they say

we have uber and lyft, 100,000 of drivers will be out of work. millions of californians rely on services, another blow to our economy which is already doing about as bad as any state in the country. neil: this, at the same time one of your colleagues, the democratic congressman ro khanna, touched on the notion of taxing well. not just your income but your

they like driving for lyft and uber and caviar here and it is interesting to see what happens.'ll mention with lyft, they're going to report in a couple of days after the close after we saw uber's 75% year-over-year decline in ride bookings, this is important for lyft they're only north american ride share. that is why this issue in california is probably more significant to them. but i'll just mention this at $7.5 billion enterprise value, lyft is way too cheap of an asset even with all of the losses they have right now ride sharing, whether these gig economy workers are employees or not, is here to stay and if google wants fitbit tor $2 billion for their data, somebody certainly wants lyft. >> i would think that the drivers and during a time of pandemic want a job. whether it be classified as a contractor or full time employee i'm sure they're not that picky at this point, tim. >> i think there is a lot of folks that enjoy being an independent contractor and giving them flexibility of how they live their days and deal with their families and what they could do but from a tax

that said we don't know exactly when uber and lyft could pull the plug. have about 10 days until they have to make that switch internally. >> the meter is running. >>> let's take a live look outside, tens of thousands of students started the school year virtually. many educators in the unified school district are teaching from empty classrooms. students are logging in from home for live and prerecorded lesson plans. now, as part of a new agreement between the union and the district teachers have the option to work from home if they want to. one teacher told us that teaching from campus also has its advantages. >> we still have access to classroom resources. >> and accountability piece that is no longer there. >> some teachers said they've got new equipment and software along with training and online classes more engaging. >> bear sitting empty, so one health club are turning the spaces into learning spaces. they're trying to make distance- learning easier across the bay area. >> what to do with empty gym space? the bay club came up with an idea that turne

uber's delivery service is now the company's biggest source of revenue 2nd quarter revenue from uber eats was one 0.2 billion dollars double what it was a year ago at the same time uber's ride sharing service plummeted 67% however, even with the jump from uber eats the company lost 1.8 billion dollars during the 2nd quarter. it comes at a time and uber is restructuring because of the pandemic cutting about 6700 jobs. still ahead the oakland a's under a lot of scrutiny tonight after one of their coaches appears to not so there's more fallout tonight surrounding the oakland a's, one of the team's coaches and the organization are apologizing for making what appeared to be a not see salute twice during yesterday's game kron 4 sports director jason dumas joins us now live from the newsroom with more jason, i saw the video it looks like one of the players when walking by the coach even tries to put his arm down and they put his arm back up. it just in we've had a night to sleep on it and 24 hours later a whole lot of people are still very upset with oakland a's bench coach. >>ryan christia

if uber can achieve that original vision, it's still an amazing company. achieve that vision, but there's even the ability internally potentially to achieve it. maria: joanie courtney, jump in. joanie: yeah, bradley, hi. my question really i guess when you look at uber and you think of just what we're all experiencing with the pandemic, that this is a temporary situation and that when it pertains to transportation, yes, things have shut down. not surprised to see their revenues decline so much. but still looking at it as this is an industry that has been temporarily impacted and could possibly even come back stronger, you know, not only with their uber eats business but wouldn't you think the rides sharing model would come back or that there would be other things. so i'm a little surprised to hear you say that but can you elaborate a little bit more on where you think opportunities would be? what are they not looking at that that could change their model? >> look, i do think that they could keep growing the uber eats business. if ride sharing had been even

i bought uber after the ipo. i had the opportunity the buy it really cheap during the height of the crisis. i don't look at it day-to-day. some days i'm up some days i'm down it's a fascinating situation >> thank you let's welcome in our guest for today. he is rick rieter. over seeing $2 trillion in assets and the head of the global allocation team rick, it's good to see you again. >> you too, scott. >> i'm presuming you heard our conversation leading up to you and where with find ourselves within the market right now. >> the economy is bifercating in a significant way. you think about the fed's job. the fed's job is to be accommodative as possible. they will keep interest rates down it's hard for the fed to initiate a tangible move beyond what they have done in rates you need the fiscal stimulus it's going to take time when you reduce the discount rates, you reduce the discount rate and keep it down for years. not only do you do traditional net present value, you lift the valuations up fantastically. you also ma

. >> mike thinks uber could be the way to go. time to risk less and make more "options action" starts right now. >> we begin tonight with breaking news. let's get right to julia boorstin julia? >> james murdoch resigning from the news corp.'s board of directors with a letter to the board saying that his resignation is due to disagreements of content by the companies news outlets and other strategic decisions. that's in his letter that is submitted to the board that's included in the s.e.c. filing. a pretty notable mov and speaks to the split within that murdoch family over some of the political content of news corp. >> we know, julia, already there's a family rift of james and his wife and his brother lockland over climate change denialism by fox news and the other outlets and so this was not a surprise with the division >> perhaps not surprisingly james donated to the vice president biden's fund and a number of startups around the world. and backing some climate change initiatives as you mentioned >> thank you, julia. mike, comm

diana olick, great stuff thank you. >>> california posing a major threat to uber and lyft.t state? we'll have that story next don't forget you can always watch or listen to us live on the go othcn an e bcpp we're back after this. >>> a legal battle is heating up in california. that state won a preliminary injunction earlier this week requiring uber and lyft to reclassify their drivers as employees rather than independent contractors. uber's ceo told msnbc what that could mean for his company. >> we are going to go back to the court and appeal the ruling and hope that the court reconsiders. it's up to the court to reconsider or not. if a court doesn't reconsider, then in california it's hard to believe that we'll be able to switch our model to fulltime employment so i think uber will shut down for a while. >> more on the gig economy war and what investors should expect from lyft's report after the bell bring in a vp of research. thanks for joining us today. >> thanks for having me. >> do you think they will really shut down, uber, california? >> well, the piece of that clip

of uber today a mixed quarter. the ceo did join us earlier this morning on "squawk on the street" and talked about the company's results and the growth of the eats business which was up take a listen. >> the eats business is growing at unprecedented rates eats is at $30 billion plus run rate to put that in perspective, when i joined uber this was less than three years ago uber rides business was at 30 billion so we now have an eats business in three years at a $30 billion run rate 113% year on year. >> we also got dara to comment on u.s. tensions with china. >> it's unfortunate how it is happening. i would say the speed with which it's happening and the process is not the kind of process that you want to run. but i do think that this is a part of a pattern of there being two different internets. china internet and non-china internet china has been a protected market in certain strategic industries and i think the west has to make a decision as to whether we're going to be consistent that way outside of china as wel

the proposition was written and back by uber and lyft.rideshare and delivery drivers from the provisions of ab5. reporting live, ktvu fox2 news . >>> happening today, parents involved in a federal lawsuit to reopen schools will hold the virtual news conference. they claim the governor's order to keep schools closed takes away their constitutional right to in person school instruction for their children. in an hour, parents will share personal stories and discuss the latest details about that lawsuit. >>> bay area residents are taking part in two different phase 3 clinical trials for a coronavirus vaccine. kaiser permanente is enrolling people for a candidate being developed by pfizer. ucsf will enroll people in another trial for a vaccine. the phase 3 trials have a goal of enrolling 30,000 people worldwide to prove that the potential vaccines are safe enough for final approval. >>> in the next hour, joe biden and kamala harris are scheduled to receive a briefing from health experts on the coronavirus pandemic. a major part of the campaign

uber ceo says that that's financially impossible kron four's michelle kingston has more. >>i would rather see them shut down and continue to exploit people steve gregg drove for uber for almost 4 years totaling at more than 16,000 rides throughout the bay area are quit basically in a panic attack when coronavirus hit greg stop driving fearful of getting sick. he also saw this as a way out of the company one that he says was never supportive of its drivers if you can't. >>some like to provide a social safety net. as these laws are designed to do for the people who are working for you whether their employees or contractors, not the system is broken and needs to change just this week, a california judge ordered both uber and lyft to treat their california drivers as employees instead of independent contractors guaranteeing them benefits like any other full-time employee uber says it will likely be forced to shut down operations in the state for several months if it's required to do this the attorney general in city attorneys in san diego, los angeles and here in san francisc

. >>> well major changes on the job for uber and lyft workers. up next the court decision that could have a big impact on the ride share industry here in california. reinventing. it's what small businesses do. with comcast business, your small business can work faster, with powerful internet from the nation's largest gig-speed network. work safer, with all your connected devices automatically protected by securityedge. and work anywhere, with comcast business at home, our new business-grade internet solution for remote workers. whatever your business needs, comcast business has the solutions to help you not just bounce back, but bounce forward. call or go online to find out more. thank you for joining us. heading there to the opening bell live as its ringing this morning. he said mortgage rates could hit 0 by 2024 if the economy continues to struggle. right now they are already at record lows. we also got that new weekly unemployment report this morning. still a lot of people filing but less than 1 million people filing in the last week for the f

i want to start with uber, right?$50 price target here up 57% despite a big show down they have doing in california that is a big market ly ask it this way is it built into the 67% upside. >> what is not built in is a really strong recovery in ride sharing. and look, the uber eats business is doing phenomenally well they will probably sustain triple digit growth for a long time it is the rides business that i think expectations have varied recently rides i thought would be a v-shaped recovery early on and that is clearly not the case will we get to a full recovery in the back half or way to 2022. there is a big trip up issue later this year. they will have to shut down california if they don't get this stay. it is more of a material issue for lyft there is a lot of issues around uber it is a high quality asset that is dislocated and there are very few of those it is the only large stock and that is why it is the long >> i will also touch on facebook we're not talking about the boycott any more two or three weeks ago i

uber ceo says that's financially impossible. kron four's michelle kingston explains. >>i would rather see them shut down and continue to exploit people steve gregg drove for uber for almost 4 years totaling at more than 16,000 rides throughout the bay area are quit basically in a panic attack when coronavirus hit greg stop driving fearful of getting sick. he also saw this as a way out of the company one that he says was never supportive of its drivers if you can't. >>some like to provide a social safety net. as these laws are designed to do for the people who are working for you whether their employees or contractors, not in the system is broken and needs to change just this week, a california judge ordered both uber and lyft to treat their california drivers as employees instead of independent contractors guaranteeing them benefits like any other full-time employee uber says it will likely be forced to shut down operations in the state for several months if it's required to do this the attorney general in city attorneys in san diego, los angeles and here in san franc

a possible shutdown, also uber eats, uber said they will continue to deliver food.ive people. the california shutdown might only be temporary because we have uber, lyft and other gig economy companies like door dash trying to push through this new legislation and ballot in the fall to exempt them from having to reclassify their workers as employees. also, the "new york times" says if that fails, uber and lyft might explore a franchise model where people still use the app but their drivers will be fleets operated by small companies instead. stuart: got you. thanks very much indeed. let's get to the convention, back to the convention. day two saw another round of big names. two former presidents, bill clinton, jimmy carter, and perhaps the new democrat party influencer, congresswoman alexandria ocasio-cortez. holland hill is with us. seems to me there's a split in two ways, an idealogical split in the party and an age split. what do you make of it? >> well, i think that's true. there has been a civil war raging within the democratic party in the same way there was one

has certainly had an impact on all types of businesses as well including rideshare companies like uber and left this week, a judge ordered both companies to classify their california drivers as employees. >>instead of independent contractors, but uber ceo says they might have to shut down if this order sticks kron four's michelle kingston explains. >>i would rather see them shut down that continue to exploit people steve gregg drove for uber for almost 4 years totaling at more than 16,000 rides throughout the bay area are quit basically in a panic attack when coronavirus hit greg stop driving fearful of getting sick. he also saw this as a way out of the company one that he says was never supportive of its drivers if you can't. >>some like to provide a social safety net. as these laws are designed to do for the people who are working for you whether their employees or contractors, not in the system is broken and needs to change just this week, a california judge ordered both uber and lyft to treat their california drivers as employees instead of independent contractors guaranteeing them

its service here in california over a court order this week, a judge said rideshare companies like uber and lyft us classify their california drivers as employees instead of independent contractors and uber's ceo says financially that will be impossible for his company kron four's michelle kingston explains i would rather see them shut down that continue to exploit people steve gregg drove for uber for almost 4 years totaling at more than 16,000 rides throughout the bay area are quit basically in a panic attack when coronavirus hit greg stop driving fearful of getting sick. he also saw this as a way out of the company one that he says was never supportive of its drivers if you can't. >>some like to provide a social safety net. as these laws are designed to do for the people who are working for you whether their lawyers are contractors not in the system is broken and needs to change just this week, a california judge ordered both uber and lyft to treat their california drivers as employees instead of independent contractors guaranteeing them benefits like any other full-time employee ube

what this tells us is that a ceo that essentially was the most negatively affected maybe outside of uber because of the pandemic feels confident enough to do a ipo still this year, right? so that, i think, is what's interesting about this it shows you that that window for ipos is opening not only for software companies but for companies that do have that physical world exposure. >> okay. let me get some other news out of the way right now the two-year note auction results are out, or is it three-year note auction? i misheard, but rick santelli is going to tell us how it came out. how did it come out? >> bill, it was a stellar auction. prices have sold out pushing yields up, and it looks like investors globally probably looked at it as a three-year auction and came out with a yield of .14 it was trading at 17.5 the bigger that spread, it's highly unusual, and of course lower yield is higher priced, so it priced aggressively positive. let's go through it. that's the all-time low yield as well of 4.4, by the way. if you look at indirects, bill, 57%. this is the best going all the way back t

what of the next attractions are uber shares remain in positive territory, but instead of hitting thesults crossing the wire, mike says the stock might be gearing up for a breakdown. here's his call to action. mike, take it away >> yeah, so this is an interesting situation. probably somewhat unsurprisingly the options market's implying a move of about 9%, but as you pointed out the stock is still higher on the year this is pretty extraordinary when you consider everything going on and talk about the shutdown's impacts on a lot of businesses, but that assumes that the company didn't have other issues that it was facing ahead of this, which it certainly is big negative cash flow certainly being one of the issue they're facing, and that would be a reason to be bearish. antitrust concerns we have the litigation going on in the state of california with respect to employees, so if you have a neutral to bearish view on the stock, then you might look to put on a position here, but the thing to be cognizant of is that options prices are high, and we have elevated volatility, and one of the thi

that was written and backed by uber and lyft and supported by the door dash as well. if it passes by the california voters this november, it's going to exempt from the restrictions of ab5. reporting live with ktvu fox 2 news. >> all right. thank you for that. >>> still to come here on mornings on 2 the 9. helping students to cope with the stress that they're feeling over the distant learning. up next, the resources in the bay area being offered in the school survival guide. >>> public schools in san francisco and oakland are located just three blocks away from a store selling tobacco. that study found more than 60% r cities are in the same close proximity. they say there's more tobacco retailers than starbucks, coffee shops or mcdonald's. there's easy access to the products and the influence of the industry market ing marketing. >>> those that are not connect being the online classes. ktvu survival guide offer the local resources outside of the classroom, and we're talking about what i think is the most importance topic this morning and that's your and your children's

. >> uber and lyft threatening shutdowns due to a labor dispute. >> public lots and plazas, outdoor spaces now open to businesses in san jose struggling during the up.abc 7 news at 11:00 starts rt now. >>> and breaking news out of southern california. the los angeles angeles forest has exploded. these are live pictures of the lake fire threatening homes and forcing evacuations. >> l.a. county firefighters are being assisted by several agencies. a dc-10 tanker just arrived from arizona. the fire is at 0% containment. crews expect that number to change overnight. because of covid-19, an overnight shelter hasn't been established and evacuees are being told to stay in their cars. >> the fire started around 3:30 north of santa clarita. the l.a. county sheriff's department said heat and southwesterly winds are just not helping. abc7 news meteorlogist sandhya patel has more on the conditions they're facing. low humidity is a problem, too. >> it has been indeed. let's look at the current conditions. it is 78 degrees, still warm. relative humidity is 12%. it is still very dry. winds have eased a bi

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obviously, this would be a huge blow to uber and lyft if this stands.is pretty significant that in round one, they have essentially lost. when uber and lyft went public, this was a major risk factor in their ipo prospectuses, the idea that their workers could become full-time employees. , they finally ab-5 whichw called pretty much clearly tried to make the brand lift driver simple -- uber and lyft drivers employees. now of course there will be appeals and more fighting but it is a strong sign that california may have its way and make uber and lyft drivers employees, which would be a drastic change for the rideshare business. has helped make up for some of the loss when it comes to food delivery. could the companies survive this? they would have to pay drivers and, pay them benefits, charge more for rides as well. eric: i don't think we really know how it will look. causeaid that it would prices to increase. they might have to restrict the number of drivers they have. but what happens is anyone's guess. reallys an incentive to make a stink out of this.

does at uber eats.s more of a pure play whether it comes to ride hailing meaning that's pretty much all it does. the good news is lyft should report lower cash burn owing in parts to cost cutting in the spring. lyft laying off around 1,000 of its staff. last earnings, lyft said some u.s. markets were beginning to lift from the bottom. we will see what they say this time around and are they sticking to their timeline of profitability by the end of next year. they stuck to it last quarter which was surprising, outside of a lot of expenses but still, the stock is way below its ipo offer price of $72. yeah. stuart: uber went out, their ipo price was i think $45. susan: but look at the similar levels in their price. obviously lyft has been decimated a lot more because they don't have the food delivery to hang on. stuart: you got it. okay. smile direct club. i'm going to call them a dental company. hope they don't mind. they report after the bell today. ashley, could they be a lockdown winner? ashley: well, t