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tv   Bloomberg West  Bloomberg  March 31, 2016 11:00pm-12:01am EDT

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mark: i am mark crumpton. you're watching "bloomberg west." virginia authorities say a gunman who shot a state trooper was killed when two other officers opened fire. the wounded trooper is hospitalized with what is described as life-threatening injuries. a state police spokeswoman says two civilians were hurt. but it's not clear they had been shot. the shooting took place at the greyhound bus station in richmond. abdeslamm -- salah will be extradited from belgium to france. the prosecutor's office says he will be returning to face charges. abdeslam was captured in brussels after four months on the run.
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the national press club is criticizing president erdogan's security detail for getting into conflict with reporters. in a statement, tomas berdych writes, "we have increasingly seen disrespect for basic human rights and press freedoms in turkey. erdogan does not get to export such abuse." the california legislature has approved and sent to governor jerry brown a proposal to raise the statewide minimum wage to $15 an hour. the increase would take effect by 2022. governor brown is expected to sign the measure. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. i'm mark crumpton. "bloomberg west" is next. ♪
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cory: i'm cory johnson, in for emily chang. this is "bloomberg west." coming up, tesla gets a pigment from apple. thousands lining up to drop a grand on the car they still have not seen. we will look at the review of the tesla model 3. fitbit shares up today. the ceo has interesting data about how people are using their fitbit. and he has got 99 problems, and title is definitely one. jay-z crying foul on the firm that sold him the music streaming service. but in the league, tesla taking first reservations for its mass-market vehicle. $35,000 model three. people around the world lined up iphone style to put down $1000 on a reservation. they would not take reservations online, only in lines, until after the close. the car will not be in full production, the company says until 2018. , they are still taking those deposits. elon musk, ceo of tesla master , plan laid out a decade ago, to
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enter the market on the high end, then drive down the market as fast as possible to higher unit volume and lower prices with each successive model. well that did not happen with , the model x. but will it happen with the model 3? the indenting joins us and says tesla does need this model three to sell like crazy. reporter: tesla's model is three arguably the company's most important model yet. it won't launch next year until the earliest. it will be more for the mass-market. but with mass-market comes a mass competition. atla's success to date tightening fuel efficiency standards means competitors like gm and bmw are working hard to catch up. just five years ago, there were only 4 electric models in the u.s. at the end of next year, there are expected to be almost 60. as any car dealer knows, the more rivals you are up against, the harder it is to make the sale and the more you have to , spend to promote, market, and
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jazz up the product. this uses up a lot of cash. and tesla already burns a ton of it. worse those competitors have one , big edge on tesla. they tell millions of regulators and the trucks to absorb the losses made on perfecting their own model three challengers. all of which is a problem for investors paying top dollar for tesla shares. tesla right now is valued at $30 billion, putting it in the top 10 carmakers in the world. but it sales don't come close to matching. take a look. you can't even see them here. to buy the stock of this price, you have to believe that tesla can both change the global car market and beat everyone else. while it does so. the model 3 will have to move fast to catch up with tesla's investors. cory: all right, now joining us from portland oregon, looking at
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the company in detail. i think that was appropriate set up for this, the tesla model 3, the whole shooting match for this company and its current valuation. reporter: i think liam hit on the most important issues here. you know, tesla it takes a huge , number of challenges going forward. they have said all along even as , a luxury car company, their brand is underpinned by the idea that they are on this mission to make cars available to everyone. this is really the first vehicle and that is going to take a meaningful step in that direction for the company. execution is everything here. cory: we don't know a lot about the car itself. we know that is going to be steel rather than aluminum. we don't have a price, at least we think we do. talking about a $35,000 entry price. they had a car that was $60,000 that they pulled off the market in short order after releasing it. what do we expect do we expect -- it to be $35,000? what do you think? edward: it will probably be $37,500 at base.
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because, i think tesla is counting on $7,500 federal tax ,redit to get that price below down to about $30,000. 200 miles of range is the general specs sheet we have been looking at. they are real problem there because these subsidies expire after 200,000 units. were they start to reduce within nine months of that. it is certain to look like by the time tesla gets this model three onto production lines, even assuming there are no delays, that subsidy may have already begun to expire by then. cory: wait, let's go back. tesla has been fueled by in part big subsidies. $7,500 off, some states have added to that, even. we have seen those subsidies going away, particularly in europe. have been even greater
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in countries like norway. but the suggestion is by the , time this thing gets out, they are going to -- they say they're going to ship in the last quarter of 2017, the last car they say they would ship in a quarter. with the last car with a bunch of deadlines, they only made 6 cars. full production, they say 2018. we look at all the competition that will be out there then. the audi q7. the bmw, mercedes. we have got a lot of cars that will be there to compete with them in the all electric space even before this thing is in full production. edward: i think that's why tesla is taking this unprecedented step of going ahead and collecting deposits before they have even shown the car. i think they want to create the perception that they will be the first to market with sort of a mass-market luxury car with 200 miles of range. and the reality is that there's going to be a lot of competition by the time they actually get to the market, even assuming they don't delay the actual launch of the car, which they have for all of their vehicles. huge challenges there. cory: so, and again back to
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pricing, is that $35,000 -- you're guessing $37,500. that probably does not include the extras that people are going to want with the car. we have seen that with the other model tesla's where the average price is much higher than the basic lift. edward: tesla has a choice here. tesla can either have an affordable electric car that beats all the competitors by every metric, or they can have a car that delivers a solid profit versus the competition. what they can't do is both of those things. i think the real question here with this launch, what analysts are going to look at which side , of that equation has tesla erred on? are they going to continue to try to beat the competition and build their brand by offering more for less than the competition, or at some point are they going to start generating profits with the ridiculously high valuations they have at the company? you've got to air toward the
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latter, but consumers who are used to this very prestigious high level of execution on the product. cory: tesla model s is so cool. even for $100,000, they lose money on every sale. it has so many features and everything. what are they not going to put in this car? if you lose money on every sale, you can't make enough on value. despite the old saying. edward: absolutely. the other thing that has not been covered well in the media, you know, as great a model s is, the reliability and quality have been really quite bad. if you actually do the research into consumer feedback on this vehicle, drive units are 80% of all model s. they've had to have the drive unit replaced. cory: the drive unit? edward: the drive unit. cory: that is a big deal. edward edmonds, a car consumer : advice company, their test model s had to have its drive unit replaced twice. so they are on their third a drive unit as far as i know. as you get into this
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mass-market, people become more demanding. it is a little understood dynamic in the car market. mass-market consumers rely on their cars more than the luxury segment, and they will be a lot less forgiving of tesla if these quality problems persist. as tesla ramps up its volume, from 50,000 units to 500,000 units without a great track , record of manufacturing quality already, those defects are likely to go up. all this put together spells a really tough challenge for tesla and musk and his team. cory: they are toss they , certainly seemed to be fearless when it comes to taking on new challenges. we will see with the preview shows us tonight and later on. ed, thank you very much. the story we've been following u.s. regulators vote to restrict , how internet service providers use information about their online browsing. that was a proposal from companies like comcast and
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verizon to get permission from subscribers before sharing their information with other companies, including advertisers. the rule does not apply to web companies. google and facebook can do the same thing without penalties from the fcc. the rule is not final until another upcoming vote by the federal communications commission. coming up, investors flocking to make driving obsolete. looking at cellphone in cars next. ♪
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cory: india's ride hailing started olaf, working from a broken system. a company says it's making it easier for passengers to access the internet while writing to a destination. both car booking sites already offer free wi-fi. ola announces its riders don't have to log on. making the cofounder say the company has a public internet project. one of the biggest rivals in uber looking to expand. reporter: the battle for london's ride hailing heart is heating up. if successful, this would bring the is really start up fleet to around 1000 cars, half of london's licensed taxis. it would become the british
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capital's biggest black cab service. revenues raised 300% last year. they are set for half $1 billion in the company competes in 57 2016. cities worldwide, including moscow, tel aviv, new york, and of course london. competing with the likes of uber and lift does not come cheap. get is seeking is said to be seeking $400 billion's more. not chump change, but a fraction of the $62 billion l.a. wish and commanded by uber and less than half of lyft. cory: awesome, elliott. a story we are geeking out about, a robo race. the world's first driverless car racing series. the streets of new york city -- know, they would not be the streets of new york city -- but formula e, they will begin this
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year or next. the cars were designed by daniel simon. he's the creator of the light of motorcycles seen in the movie tron legacy. the vehicles will be able to hit speeds of 186 miles per hour. that seems perfectly safe. good lord. almost every carmaker is racing osition in driverless right now. a startup called cruise automation is known for retrofitting cars with fully autonomous kits. here to discuss white investors like that field, we have reported. good to see you. you work smart enough, or lucky enough, to invest in this early. >> we got into the series a led by sport capital out of boston. it was exciting because we syndicated the investment over angeles. this is the first major multibillion dollar deal that mentalist has ever gotten -- angeles has ever gotten. cory: what did you first see in this company? >> kyle is really --
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cory: who is kyle? >> kyle, the founder of twitch tv, which was sold to amazon for over $1 billion. he was really talking to me about what they were doing the , technology they had developed and where they were really going. cory: he was the one who convinced me that twitch was something to look at. and now, look at that and amazon. you see a big user base with this thing? >> well yeah. driverless car technology is going to be every vehicle on the road in the not-too-distant future. my daughter will never drive a car. you think about what is going to do and the way car copper it -- companies operate. cory: my daughter will never drive a car. it's just because i don't want her driving cars. they should walk. >> it is a big deal. it changes the world, driverless car technology. we are just getting started on where that will be at. cory: this is the first huge exit for the angels list. there have been a lot of angels going to zero. but this the future run. >> you can get a big return or
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hit zero. it is a signature turn, so my investors are really excited. i want to bring eric wyman into the conversation now. i wonder for you, when you look at the competitive issues at play here, so many car companies looking at these technologies. autonomous driving is already happening. just about every kind of car you get in the market. >> most automakers are targeting 2020 for when they will have the technology deployable on the streets. the question of course is whether the infrastructure and regulatory environment will be ready for autonomous vehicles at this early point in the future. cory: i do not think you are being kind and fair to the folks in washington who get so much done, eric. [laughter] >> that may be. there are lots of challenges beyond the regulatory environment. the infrastructure, the least of which is not figuring out how , these vehicles are going to interact with the traditional cars that have a human operating
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vehicle on the road. cory: let me ask you zach, what , is it about silicon valley? why are people in detroit looking for silicon valley to lead them? zach: you look at what elon musk did and what kyle did with cruise. they are able to go to the smartest people in some of these really big, bureaucratic companies that can't move fast. kyle was able to say, we can move faster. we can build great technology quickly, whereas you have been stuck not getting this done for years. he was able to recruit a really strong people. gm looked at that and said we know those people on the team. cory: good to see you. blue shirt. >> it is not red. cory: thank you very much. coming up, apple's new iphone hit the stores today. the lines, we will take a closer look at what this might mean next. ♪
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cory: apple is reshuffling
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parts, looking at lynch, and adding phillips, one of the biggest lighting makers. dayrt comes out on the same when the nsa of the smaller iphone was announced. according to one analyst, the iphone s.e. -- an opportunity for apple to try out new suppliers ahead of the iphone 7. alex webb covers apple for us here at bloomberg as well as allie longe. you've got a story about this today. it is interesting, this opening of devices and seeing what's in it is one of the oldest games on wall street. led which ish, the company supply, they are in a number of places across apple devices. and inevitably, the flash. if you hold the phone to the side of your face, the screen doesn't react. it has an infrared sensor, also supplied by these guys. the third thing is, on your
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watch, if you are fortunate enough to have a light one, underneath it which helps measure your pulse. cory: is this typical of apple? >> yeah, they basically play with the supply chain. they risk by going to multiple -- suppliers. cory: low risk in terms of technological risk? usually they work through that before they ship in volume. >> just from the point of view that they were not expecting massive volumes to go out. cory: they want a new supplier who can bring on the volume before they go to the big, new iphone, which will ship in more size and volume? literally more size and volume? >> absolutely. if you want to introduce a new supplier, you can introduce a new supplier and have them wrap -- ramp-up volume. if you go back generations there , have been times when they have introduced a completely new technology and run into supply shortages. cory: we have seen them govern that by limiting the number of countries they sell to.
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i mean, you know the story because you were on the other side of the pond. you guys initially were not getting the brand-new iphone. u.k. was added pretty quickly thereafter. reporter: yeah, often the dictate is a faster place to get it. but some countries china doesn't , have the s.e., but it will come in a few weeks. for thestaggered launch reasons he says. cory: it is important -- this is an led we are talking about, not a semiconductor. , not a screen or something else. >> it's essentially not a big technology here. we look at it, they are maintaining the same technology they have in the previous generations. that's the reason they can take on, bring on new people because they understand the technology really well. cory: when i think about it apple doesn't really dual source , things on a given phone. for most components, they lock in with a certain manufacturer. i guess they are with chip manufacturing though. they're using samsung as well.
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>> they have done global sourcing. they've done it for some assemblers and some components. it's only when you end up with one window, there's much high risk for apple. they would like to do also. if you remember back to when the introduced the new technology, and they had three windows. at that time they had wrapped , them up and they ran into production shortages back then. those are the kinds of situations they want to avoid. cory: what were the lines like today? reporter: i think, that was expected, that they would not be massive queues around the block. they are expecting volumes to be lower. cory: you can say to -- queues here. it's a global broadcast. reporter: the language is english, and i am english. people are expecting 10 to 15 million tops for this phone.
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if you compare that to 200 million handsets sold last year, it's a big enough number for any other supplier. but is not the biggest. cory: for the last five years on bloomberg television, i have maintained that apple, which successfully has chips, they get devices, screens get them in a , box, get them across the ocean and make all the deadlines and then be surprised by the lines? come on, is a marketing gimmick. even tesla has figured out. they are nothing if not good marketing gimmicks. reporter: we kind of buy into it. when i was in munich i would have to go down to the shops in munich and ask people what they thought. cory: alex webb, bloomberg news, as well as mr. hammes. thank you very much. coming up, shares on fire, we will check in with ceo james park about fighting off competition. coming up next. if you like bloomberg news, check me out on the bloomberg app.
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bloomberg.com and in the u.s., serious xm satellite radio. ♪
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reporter: top story this hour, chinese it shares are done as the jump in activity. the pmi for market boosted 50.2, signaling expansion in the tyson act -- ties saying index also 40.7. china's wide ranging fiscal and monetary stimulus may be kicking in. stocks also lower in tokyo after the doj quarterly compound survey showed sentiment along large may factor has fallen to a three-year low. it was at six from 12 months ago. wages in growth will remain pensive, strong yen turning
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exporters and undermining the bottom line. investigations in malaysia, one fund is widening further. prosecutors found concrete signs of embezzlement funds owed to the companies. this is luxembourg, singapore. bankmorgan chase, deutsche have been asked to hand over authorities documents. now let's go to heidi. quarter in this part of the world. we are seeing growth right across the border. we have the hang seng up, the nikkei 225 down, close to 3% as we get back into the afternoon trading session. we just extended in shanghai,
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down 0.4%. we had the biggest gain since last year for the shanghai, over 12% for the month of march. we are seeing some doubly taking that and brushing off the quadrant sentiment coming through the upside in the march pmi numbers with services as well. the kospi is up 0.9%, tracking the overall caution and selloff we are seeing ahead of what used fore a big day not just china. japan also going through economic indicators, southeast asia, big eurozone, cpi, manufacturing, and also the key u.s. jobs and payrolls number coming out overnight. we have janet yellen giving terms of breathing at the asian rally, but the running on how big that is, we could see a day of reversal going into risk assets. this would be in terms of effect. the yen really strengthening
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today, that is waiting on exporters traveling. we also see the aussie reacting positively to the cmi numbers as well, coming off of that. that is how we are sitting in the asian session on the first trading day of the quarter. cory: to the battle of the fitness and's, fitbit is in the lead. rivals like others, fitness still dominating the market. we had a tough 2016. de rigueur and i caught up with james park. we simulcast on bloomberg radio. we talked about the fit it plays watch. -- fitbit blaze watch. >> the ipo last year, we had revenue 2010ion in , last year.
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the company and the category as a whole have been growing pretty quickly. and we have entered the watch category. in january, and it got great reception. we won 17 awards and counting. we recently announced that we shipped over 1 million blazes within a month. it's a phenomenal launch. cory: what's interesting about this device, david's europe, i will bring you in as well. it is really focused on athletes and may be best suited for runners, even. >> that's what differentiates itself from other products in the market. it is geared specifically towards the active consumer segment, people focused on fitness and are interested in cardio activity, hitting the gym, etc. the fit it -- fitbit blaze hit that sweet spot between focused on the right features, primarily fitness, price point, and battery life. it has five days of battery
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life, which is leagues beyond the competition. -- y: david: so is there a saturation point that you are worried about? >> no. we are not at saturation point yet. the business is growing for rapidly, both in north america and primarily internationally as well. retention of our users have been great. if you look at all the devices we have shipped in the past 6 years, 59% of those users are still active. on our platform and our community. and last year, 59% over six years are still active. i mean that's a very engaged , user base. if you look at last year, 72% of all users who bought a fitbit device in 2015 are still active in our community. cory: i was surprised by that. i feel like anecdotally i continue to think people by these devices, they forget to wear it put it in the wash, they , never put it on again. >> i think that might be true
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for our competitors, but what makes fitbit stick is the power of our software and community. people compete with friends and family across a variety of metrics. what we have seen is that layer of social and community engagement really drives long-term retention on the platform. we see that. last year, we had an increase in the average number of friends that people have on their platforms from 4.9 to 7 average friends. that really speaks the power of friends and family driving you to health. cory: i made the mistake of putting michael dell on my friends list and he always gets more steps than i do. >> he is pretty competitive. cory: yeah he is. >> there's always the people who have treadmill desks. cory: i went around and looked at a lot of the reviews online before the apple event last week just in case they announced a watch. i was surprised how you are doing with your watch. really surprising to me is how much more discussion there was of that than the apple watch. i couldn't decide if that was
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because the device was so new, or if you were getting a lot more buzz from the watch. >> know, the buzz has been phenomenal. amazon and other retailers, this has been the best launch we have had today. if you look at the reviews, 84% of the reviews are either 4 or 5 stars. people love the product. cory: a couple of years ago you launched a scale. i thought we would start to see a slew of other products that go beyond stuff you see on your wrist. we have not seen that from fitbit. is that part of your long-term plan? how do you think about where the scale fits in? >> the long-term plan for fitbit is, we are not just wearable we , are a digital health company, helping people achieve their goals, whether it is to become more active, lose weight, manage their stress, etc. our product roadmap is filled with devices, wearable and non-wearable, that help people address those goals. cory: that was the fitbit ceo, james park. simulcast on bloomberg radio and bloomberg tv. now to microsoft, announcing a new connected service with bmw.
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to be billed at the conference in san francisco. they are ceiling that away from amazon web services. earlier i spoke with the cmo of the company about that partnership, a.i., and microsoft. >> we see a new type of developer opportunity where we move away from apps that people sort of download and use maybe once a month and instead move much more to a conversation mode with their computer, much more natural way to integrate all the technology in their lives. and so what's on the other end, , on the computer, needs to have great intelligence. that's really where we see developers focusing a lot of their attention. cory: when we look back at microsoft history, we see a precedent. like that was a thing that was supposed to be a personal digital system to use the program you are using. >> that is right. what we are talking about with machine learning is very different. we have come a long way from those days. that was an early attempt at making the computer more human,
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making it a little less intimidating. and making it far more natural. and with machine learning, you get such incredible opportunity to get smarter and have the software make the personal assistant so much more intelligent about what is important to you and your life versus me and my life. and that is one of the big differences between then and now. cory: i'm so intrigued by this. as it relates to the new business of microsoft. not just selling a box of software every year when it is upgrading time. also, through your role as a marketing guy, try to convince people that microsoft stays relevant, announcements stay relevant, product development s more minor in nature is still relevant. >> we have moved to a world where people expect things to be up to date and they want , constant innovation, but they don't want those big disruptive moments of having to do a major upgrade. that's a wonderful thing about the cloud. we just spent the entire company, really, on our cloud
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platform, this thing called microsoft azure, as a way for companies to build applications that they will do great things. cory: that was the microsoft cmo chris cap a sele. a year after buying title, jay-z may be having buyers are more -- remorse. was jay-z defrauded in the deal? ♪
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cory: the daily fantasy sports operators draft draftkings and , fan duel suspending all of their college contests. suspension is indefinite in all deals as a part of the with the ncaa. that follows months of negotiation. the change takes place after the ncaa men's championship mesko game monday night. you can still get bets in. jay-z is showing fines of buyers are more spirit a year after -- buyers remorse after buying title for $56 million, the hip-hop mogul is going after the previous owners for compensation. accusing it of overstating subscriber numbers at the time of the deal. this comes after a tough year of the struggling streaming service in several management changes. bloomberg news locus joins us with more from los angeles. lucas? tell me where these guys are competitively. reporter: yeah, well tidal has been around for about a year.
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they said earlier this week they have 3 million subscribers for comparison spotify has 30 , million subscribers globally, apple music has about 11 million. there are a bunch of other services in that tidal range. two to six. it is definitely one of the smaller players. one of the strangest, because it is owned by other musicians, because a priority. the priority to get exclusive rights to music from rihanna, kanye west. that probably is driving some of the subscriptions. it is unclear if any of those customers want to stick around and whether they are still going to use title when the kanye album is available on apple or spotify. cory: these videos have been fantastic. drivers, a lot of people know these great hits. the exclusive come on. , rihanna? i mean kanye? , lucas: are you not a rihanna fan? cory: i am actually a very big rihanna fan.
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rihanna, drake, i am all in. this is fantastic. as it relates to this music you , would think that would drive people to this service. they have decent user numbers. but maybe not enough to get to profitability? lucas: think about what it takes to market a service. the advantage apple has and the reason why the music industry believed in them was they have several hundred million credit cards on file, they have hundreds of millions of people who have their phones in their pockets. that is marketing where they don't have to then by a bunch of tv spots or tell people the service is here, though they are doing that because it's apple. they have so much money to spend. if you are tidal and run by these musicians, jay-z and jan say they have plenty of money to , spend but not necessarily enough money to mount a real marketing campaign to take on one of the biggest companies in the world and spotify, which has raised billions of dollars and just earlier this week said it had raised another billion. cory: indeed, that is there is , some funkiness on those terms.
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we can talk on that another time. as it relates to the tidal business, the underlying infrastructure, they don't have to go out there and create that. all that from other companies, correct? lucas: in terms of the technology behind tidal, that's an area where i'm not an expert. but i would imagine that whatever jay-z bought, there was already the tech platform there to operate the service. the challenge for any music service right now -- most of them offer a similar product. it's an on-demand library of just about any music you can think of. how do you stand out? tidal's approach has been , as we discussed, exclusive content you can only get there. , it has worked to a point. it is a question of if they keep , delivering those, maybe they can get big enough. even a service as big as spotify with 30 million paying subscribers is not yet profitable. how is tidal going to get there? cory: kanye apparently going to
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spotify now, finally. part of his catalog on spotify, finally. lucas: yeah. those reports this morning that kanye's new music would be on apple music and spotify within the next 24 to which means tidal 48 hours, had exclusives for about a month. i don't know if that is enough. cory: really interesting stuff in the changing world of streaming music. an amazing story. lucas from los angeles, thank you very much. coming up airbnb is getting old. , i will tell you why older women reign supreme on the home booking website. and tomorrow on bloomberg, don't miss legendary investor bill gross. he is going to react to the u.s. jobs report at 8:30 in the morning on bloomberg go. you definitely want to tune in. everyone, including the fed, will be watching. as will we. "bloomberg west" is next. ♪
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cory: legendary venture capitalist john doerr stepping away from management duties to become its first chair. he says he will still invest current funds and continue to sponsor an advocate for new
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investments. he will not participate as a general partner in future funds. earlier doerr spoke to emily , chang, saying quote, i expect to continue to find amazing entrepreneurs. i will also have more time to look over the horizon and develop the next generation of founders at kleiner. i have known john doerr for 15+ years. close on 20 years. he's a guy i always want to hear from because he's such a thoughtful investor. reporter: he has an incredible history at kleiner. he joined in 1980 and led the firm through some of its biggest investments. amazon, netscape, google. a very respectable name in venture capital. it's the sort of move where he's doing what he called a generation transition. a few other firms have a changing of the guard. michael mauritz stepped away
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from management duties. i was in 2012. kim traber was not on some of most recent funds. cory: it is interesting. i will say this fascinating guy, , great guy to talk to. you mentioned a lot of his successes. the public markets, not only always unsuccessful. but some of the boards he's been on -- or the stewart he's on the -- martha stewart living he's on , the board of that company. not always successful as a public board member. but as the venture investor a , guy who has been good at talking about trends and starting to explain trends. that's why my company is the one is going to benefit. that will benefit. he was telling me while he was on the board of excite telling me i had to check out this new search engine called google. perfectly willing to move on from one investment to the next. is fortunate to see what preceded this announcement.
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when they think about kleiner, they think of a history of several decades of success. maybe in the last five to 10 years some criticism about them , being slow to see opportunities. they were late to uber, lobster, they had a painful and public trial with a former partner, ellen pao, for gender discrimination. it has been -- cory: maybe not the leading light of the valley it was in the past. and from prior generations going back to the initial founders. reporter: yeah. cory: so i want to turn to a different story. airbnb, of all their hosts, bloomberg news found that americans aged 60 or older are the fastest-growing demographic on the home booking website. they are the ones leaving the best reviews. so, allen, when we look at this, it's really interesting to me -- i'm sort of picturing mrs. doubtfire or something. that is in fact the ideal host of airbnb. reporter: sure. cory: i mean maybe not that. reporter: the story is that -- the lead example, the woman.
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the stories that mike kelly -- my colleague talks about, the number one property on airbnb is a mushroom dome house in santa cruz county that is sort of a pentagonal shape in the field with a geodesic dome. cory: and where is this? reporter: santa cruz. it has this geodesic dome at the top. they're very popular at burning man. pity little -- hippie little efficient structures. this is a woman who is an empty nester who now spends almost a full-time job running the mushroom dome on airbnb. reporter: and these kids get the best reviews because they are doting -- reporter: airbnb has this data. you can only imagine about why. you imagine they are comfortable to be around. maybe they are great hostesses. talking about an orientation of new york to every guest that comes in talking about how to , visit the empire state
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building, how to get to central park, to do these things. these are the qualities that make airbnb a totally different stay from a hotel. i maybe if they exhibit five this, it is perfected in better reviews, morehouse. -- more house. cory: and more people turn to airbnb when they want to travel. reporter: yeah, and for older hosts, it's an opportunity to make money with a little bit of flexibility. maybe some of them are retired or thinking about retiring. extra income. cory: we could rent out the couch in the green room. don't tell anyone. i like this idea. we are going to work on that. that's it for today's edition of the best day ever -- a team of scientists from purdue university and the national institute of health have for the first time identified the three-dimensional structure of the zika virus. that is what you are looking at. it's a big deal. they were able to do this using a technique called
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cryoelectronmicrosopy. the virus is first frozen and then imaged. this might help scientists determine how the fire us is -- virus is disseminated. blackboard reports earnings before the bell. that does it for "bloomberg west." we with you from the ceo on the latest numbers, and then google ventures. and long-term bets on biotech and health care startups. and don't miss a special sneak peek at "studio 1.0" right here on bloomberg television. that is all for now. from san francisco i'm cory , johnson. this has been "bloomberg west." ♪
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