tv Bloomberg Technology Bloomberg May 31, 2017 11:00pm-12:01am EDT
♪ alisa: i'm alisa parenti, and you are watching "bloomberg technology." let's start with a check of your "first word news." president trump welcomed vietnam's prime minister to the white house today. trump says the two plan to discuss trade. billions of dollars in business deals are expected to be signed at the meeting. the prime minister is the first leader from southeast asia to visit the white house. meanwhile, white house press secretary sean spicer says president trump has spoken with afghan president ashraf ghani about the massive truck bomb that killed nearly 100 people in kabul. authorities say a suicide bomber drove into the climatic quarter during the morning rush hour in
one of the worst attacks since the drawdown of foreign forces in 2014. cnn reports that james comey plans to testify publicly in the senate as early as next week. cnn also reports that comey has spoken privately with the special counsel to work out the parameters of his testimony to ensure there are no legal entanglements. president fired comey this month as the f ei was investigating russian influence in the presidential election. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. from washington, i'm alisa parenti. this is bloomberg. "bloomberg technology" is next. ♪
emily: i'm emily chang. this is "bloomberg technology." coming up, it is decision time on climate change. will the u.s. back out of the landmark paris accord? we will break down silicon valley reaction in the fight against global warming without america leading the charge. plus, the ai war hits home with apple set to roll out smart speakers. cupertino is playing catch-up. can apple close the gap with amazon and go? cyborgs arrive at morgan stanley to back up its 16,000 financial advisors, but are they an upgrade over the robo-advisors? we will discuss. first to our lead. the paris climate accord could be in trouble. it was just two years ago nearly 200 nations, including the united states, agreed to reduce fossil fuel emissions. this is an effort to combat climate change. terms, itent obama's
was a step in the right direction. president obama: this is the moment we finally determined we would save our planet. the fact that our nation shares a sense of urgency about this challenge and a growing realization that it is within our power to do something about it. emily: now, president trump is considering whether to keep the u.s. in the landmark paris accord, but could be leaning towards an exit. earlier, he tweeted, "i will be announcing my decision on the paris accords in a couple of days. make america great again." silicon valley has responded, with tesla ceo elon musk tweeting, "i have done all i can to advise the president." musk stated he will depart the president's council if the u.s. pulls out of the climate deal. joining us now, bloomberg's chris martin, who covers renewable energy, and amy grace. head of north american research for bloomberg new research finance.
amy, i will start with you. what are the real implications if the u.s. pulls out? amy: the paris accord will go on with or without the u.s. in it. i think some of the implications for the u.s. are actually not that much. so, u.s. emissions targets, if you think about the u.s. emissions in terms of bringing it down into the power sector emissions, is about 40% of emissions. transport emissions are another 40%. the rest of the economy makes up 20%. the power sector emissions will meet the paris target without the paris agreement without the clean power plan, which is the legislation to get the u.s. there. on the transport side, it's a slightly different story. pulling out of the paris agreement won't do anything to the transport targets, but on on the table now are changes to the fuel emissions standards. those are under review. a relaxation of those standards could actually mean the u.s. misses the transport portion of those targets, which ultimately means the u.s. would miss their paris targets.
emily: if the u.s. pulls out, how likely is it that other countries follow suit? chris: so far, it looks unlikely. we are most concerned about india and china at this point, and they both pledged their allegiance to the paris accord. we haven't seen anyone pull out of the accord. to this point, the u.s. has not either. it's not clear yet whether anyone will. emily: why would, hypothetically, the u.s. want to pull out and be in the same boat as other nations that are not participating, including syria and nicaragua? chris: for the trump administration, it's a promise he made during his campaign to increase demand for coal. i don't think that's going to come out of this. in fact, are reporting today showed that shares of coal companies actually went down on the news today. it's not clear who would benefit. amy: there is a long list of
u.n. conventions that the u.s. has not signed. this would not be the first. emily: what do you think of elon musk's tweet that he will drop off of trump's advisory council if this happens? this is a man who founded a major electric vehicle company, solarcity in the mix as well. chris: it sends a signal of frustration with the administration that there is a need to be part of this global climate pact. if you pull out, then it's a signal that we are not serious about climate change, and that would be unfortunate. emily: amy, what would it mean for the fight against climate change, realistically? some have said that this could be catastrophic, but is that a gross exaggeration? amy: i think it will take the
wind out of the sails of the paris accord. the paris accord will go on, but it essentially reduces the incentive to continue ratcheting up. it probably delays it by about five years. the broader implications are the questions of the climate fund. they are intended to raise $100 billion a year to give to developing countries. they don't know where that money is going to come from. they have raised about $10 billion, $3 billion from the u.s. $1 billion is already paid. the other $2 billion is in question. whether or not they drop out of the paris accord is probably unlikely. it is probably unlikely that the $2 billion will be forthcoming from this administration. emily: if this happens, chris, what do we know about how the u.s. would actually unwind its support? would this be a gradual thing? would it be abrupt? chris: it would take a few years for them to actually unwind this.
i think that you would see a gradual progression. that could change with the next administration, too. this is an executive order rather than an approved treaty. it wouldn't take much for the next president to get back in. amy: it essentially takes the -- to the end of 2020 for them to pull out, but the impact is immediate. emily: is it simple or complicated? chris: it's complicated. i don't think we will see any answer over the next few days, even if trump decides to pull out. the reaction is going to be muted because people need to figure out how long it's going to take for changes to be made. i think it's going to take years. emily: amy, what does it mean for shifts in alliances? obviously, if china and india remain, how does this affect our relationship with other countries?
amy: i don't think it will have a big impact on our relationships with other countries. the reality is the u.s. is a pretty big part of all international negotiations, so they are going to have a seat at the table regardless of what they decide in the paris accord. caroline: amy grace of bloomberg new energy finance, chris martin, our bloomberg news reporter. we will continue to follow this and await president trump's decision. hewlett-packard enterprises released its second quarter results after the bell. earnings came in line with estimates, despite warning of current headwinds. the company reported sales in the period totaling $9.9 billion, but that includes the enterprise services business, which has been discontinued. the company gave a profit forecast that fell short of estimates for the current quarter as the company struggles to shift to the competitive field of cloud-based services. a story we are watching, the massive legal spat between
toshiba and western digital over the sale of a memory chip business is getting even more compensated. -- even more complicated. toshiba sent a letter to western digital saying it is moving assets from the joint venture back to the parent company after previously transferring them to a subsidiary in preparation for the sale. western digital is seeking to block the chip unit sale after it became clear that the operations may fall into the hands of competitors. coming up, after uber file -- fires an executive, we take a look at waymo. a reminder about our new interactive tv function. find it at tv on the bloomberg. you can watch us live. you can send our producers a message. you can ask me a question. you can play along with the charts we show you on air. this is for bloomberg subscribers only. check it out. this is bloomberg. ♪
♪ emily: former hedge fund manager phil falcone was barred by the sec in 2012. now he is back and putting his money to work. he sits down with bloomberg's betty liu and discusses how private equity stacks up against the hedge fund world. phil: when looking at some of the different investments i've had over the years, the most success i've had is buying things that have taken a long time and you can incubate or help nurture and grow and fix and twist and turn. that is tough to do in the hedge fund model. you can do it in a private equity model, but it's still a little bit different. i think this structure gives us the flexibility that we need and really gives us the opportunity to hopefully never
have to sell any of these companies that we control. ofly: now, to the firing anthony levondowski from uber. it is gone and it were a microscope -- under a microscope. how will this case impact the future of alphabet and uber's self driving car efforts? will it spark a talent war for other star engineers? we are joined by brad stone, an author of a book about the founding of uber and airbnb. is this a turning point? brad: the lawsuit shows they are willing to leverage or exploit their intellectual property. google was first in the driverless car arena. 's emergence as a player, that was the turning point for waymo. it moved waymo to an operational.
they are signing people up. they know they have to be not just for the data, but for their own engineers, who want to see cars on the road. they have to be out there. google spun off waymo as its own independent division and put the former ceo of hyundai in charge of it. the competitive pressure was the turning point. emily: if they somehow managed to cripple or stall uber's self driving efforts, is there a benefit to waymo? brad: mark andreessen said in his presentation at the code conference almost comically that there were too many players out there. hurting uber a little bit hurts a primary rival, but it does not change the fundamental dynamics, which is that waymo has a head start. this is many years from happening. we will see how it plays out.
emily: these engineers have a very specialized skill. who gets the best engineers may in fact determined who ends up on top. brad: if anything, this is hurting the big players. there are folks who used to run the self driving car division at google striking out on their own. anthony levandoski showed that there was great profit in leaving and starting out on his own. google probably has a deep bench, but they certainly are losing people. then again, earlier this year, they said they shrunk the cost of the key mapping component in driverless cars by 90%. they keep moving the technology board forward. -- bar forward. emily: what about partnerships? is waymo seeing any momentum? brad: they have the fiat chrysler partnership. they are making suvs in phoenix. beyond that, there was a rumor deal with honda. that hasn't come to fruition. there was the deal the announced with lyft. mark fields, who left a top job
at ford this week, left in part because he wasn't able to come to terms with google on a driverless car deal. the 1.01 to make is that it is unusual for any of these tech doing broad be deals with other companies. they partner with advertisers, but in terms of sharing data and rss -- and profits, it gets messy. i'm not sure if waymo, and this showedng lift deal, has much progress. >> morgan stanley came out with a report that said if spun off, waymo could be a $70 billion business. is there any indication alphabet would do that? brad: they said by 2030. where will you and i be? that's a long way away. phil pratt from toyota said, we are nowhere near level five autonomy in driverless cars. we don't know how this will roll out that projection from morgan
stanley was mistake and it assumed a lot of things. will waymo be valuable one day? it will if they can them like driverless cars safely on the road. >> thanks for joining us. another earnings update. box reports its first quarter results after the bell today, coming in above expectations. bringing in $117 million, up 30% year-over-year. box touted that it has now become free cash flow positive, a signal that the company may be en route to being a profitable rival like dropbox. we will discuss the earnings results along with international expansion plans with box ceo aaron levie here on bloomberg television tomorrow. coming up, apple is gearing up to take on amazon apple -- echo and google home. we will bring you all the details next. this is bloomberg. ♪
♪ emily: the labs has ended an 11-month product drought. the latest gadget is a revamped high-end security gamma -- security camera. sincethe first camera 2015. this newest camera has some tech upgrades. it shoots higher resolution video that allows users to more deeply zoom into footage without losing as much clarity as the current version. the camera lens will automatically pan to follow a person in the view as they walk around the room. apple is said to be on the verge of introducing a siri-controlled smart speaker. this according to people familiar with the matter. the device would rival amazon echo and google home. it's just another drumbeat as apple prepares for its worldwide
developers conference next week. joining me, alex webb. what do we know? alex: we know this is in production. a taiwanese company has started making these things. there's a good chance it will be unveiled next week, ready to be introduced to the market, to actually be put on sale later in the year. it is interesting given that amazon has just introduced their latest alexa with a screen, the alexa show, and we are hearing the apple product will not have a screen. it is solely a speaker. that is clearly a slight difference. emily: there are some interesting details you guys have found in terms of what might set this apart when it comes to the sound and its ability to understand what's going on in a room. tell me about that. alex: that's the differentiator it seems apple is hoping to make. amazon and google have these well-established products. apple clearly seems to think that having a better quality speaker will give them an edge. there are things like surroundsound, which is beamed
out from the device, and an ability to follow the shape of a room and therefore adjust the acoustic performance accordingly. emily: the surroundsound might be louder and crisper. it might also determine how loud the volume is in the room and how loud the speaker needs to be, essentially. alex: it can adapt to the acoustics. this hints towards an effort from apple to make it a premium product. if you look at the pricing of the amazon alexa, they do not make much profit on that. they do it as a loss leader to get people buying amazon products or products through amazon.com. that is not the typical apple business model. they are trying to do more in services and software. the pricing will be interesting products or products through to see. emily: this will connect with other apple devices and potentially progress apple's strategy within the home in
general, right? alex: apple has home kit, which is the way you control home automation smart devices like your lighting, blinds. at the moment, if i wanted to control the lighting at my home remotely, i have to have a hub in my home. i can't do it from here. that could be an apple tv or ipad. it's likely to be this speaker. the other side, if you have an amazon alexa or a google home, the odds are for your music, you are listening to either spotify, amazon prime music, or google play. you are not listening to apple music. these kinds of product services are ones apple is really pushing, trying to build a more dependable revenue stream. that helps preserve that. emily: apple was not the first to market with a tablet. it wasn't the first to market with a smart phone. steve jobs made a point of that. historically, apple had often been the best to market with some of these products. are we expecting this to be an example of that?
alex: it's very hard to judge at this stage. i think relevant to that question, it is particularly important to see what the pricing is going to be. it could be $100 more expensive. we don't know. if it's not $100 more expensive, that shows they are probably not making a 40% margin on the product. they are expected to make more money down the line with their services. if it is more expensive, then they have to be doing something to convince whoever it might be to buy their product and not the significant we cheaper ones from -- significantly cheaper from ones google or amazon. the google one is $129. there's a big difference. emily: the connected home sounds great. it's a -- sounded great for a couple years. it still really hasn't hit the mainstream. it's still pretty hard to connect your home. what's it going to take for that to be an easier process? alex: if you look at a lot of the products that are out there, people are seeing this as an opportunity to get big profit margins. an led light from phillips costs something like $25.
$49 for the one which is many different colors. the classic led light is significantly cheaper than that. they are sensing a big opportunity to make big margins. until that ceases to become the case and it becomes as affordable as any other kind of light -- they could apply to any number of categories. that is what needs to be crossed in order to make widespread adoption a reality. emily: we will see if this is unveiled at wwdc next week. that is the suspicion. alex webb, thanks so much for that update. coming up, mary meeker's annual internet trends report has dropped. we will dive into what has become the state of the union for the tech industry. if you like bloomberg news, check us out on the radio. listen on the bloomberg radio app, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪
♪ latest first word news. india's economy grew at the slowest race in more than two years in the first quarter. gdp expanded by 6.1% in the first three months of 2017. that is a four percentage -- a full percentage point below estimates. the manufacturing center shows signs of recovery. a woman linked to the scandal that toppled a leader is back in . she is the daughter of a confidant. samsung paid
850,000 dollars to buy her a horse as part of the widespread corruption inquiry and political and business -- in korean and business circles. trading revenue is said to call at least 10% because tranquil markets are curbing demand. jpmorgan and others slid off the updates, taking the dow lower. an executive says trading remains subdued. jpmorgan was one of the worst performers on the dow. global news 24 hours a day, powered by 2600 journalists in 120 countries, this is bloomberg. >> traders in asia, japanese shares are climbing after capital spending topped estimates, offsetting the slide in chinese stocks driven by the belowta coming in
estimates. korean shares set for a third day of losses. tech shares are a saving grace, tencentas 10 sent -- driving shares. the aussie remaining under pressure, dropping below $.74 to a three-week low. four-dayor the biggest pbocin 12 years, after the -- the yen adding away from a two-week high. checking on oil, we have crude rebounding from a two week low. we have gold marginally higher here. asian bonds mostly higher. treasuries are sliding a little in the asian session. the 10 year yield sticking near the 2.2% level. 9033 on your terminal, the 10-year rate, the white line is rate, equal to the cbi
the blue line on the chart. investors are seeing inflation kept in check, not demanding yield premiums. the yellow line is falling to 1.84% from the year high in january. emily: mary meeker just undulate -- unveiled a trend report. report covers everything from the cloud and internet advertising to wearables and music subscriptions. a major take away from this year's report, the rise of online ads. with global internet advertising expected to pass tv within six months. google and facebook are reaping the benefits. their combined share amounting to a whopping 85% and rising. joining us now, paul sweeney. first of all, online surpassing tv in six months -- do you buy
it? paul s.: absolutely, i do. we've seen the trajectory over the last 10 to 12 years. we have tv ad spending growing about for-5% per year. digital ad spending has been growing 15% to 20% per year. the lines are just about to cross this year. if you look at the forecast over the next several years, continued upward trend in internet ad spending. double-digit growth versus television in the low single digits. emily: what does it mean for everyone else if facebook and google are getting the lion's share of the pie? paul s.: if i am an advertiser or the ad agency representing big advertisers, i'm worried. the market is a duopoly between facebook and google. i only have two platforms to allocate my ad dollars. that's not a good structure. what we are seeing is, of the
incremental ad dollars, google and facebook are taking just about everything. it's really a challenge for some of the smaller platforms. think twitter, snapchat. having 200 million, 300 million, 400 million users on your platform these days just is not enough when you take a look at google and facebook, each of facebook's platforms is at or above one billion users. when you think about facebook and instagram and message, it is a tremendous reach vehicle. what we are seeing is these big platforms like google and facebook are really starting to target television advertisers, because that's where the money is. emily: something else that meeker called out is that the measurement of the impact of online ad is still very much lacking, also the placement of ads is sometimes rather suspect. they might pop up next to offensive content. what do you make of some of these potential headwinds? paul s.: these are significant risks, and they are highlighted not only by advertisers, but the ad agencies that represent them.
measurement and context and placement are the two big issues that these internet companies really have to figure out. that being said, the dollars are still going to digital. we are going to have a big data point coming out of the television industry in the next couple of weeks when they sell about 75% to 80% of their inventory in what's called the upfront market. 18 billion dollars or $19 billion or $20 billion will be allocated to television. the top line advertising revenue growth, 20% plus. facebook and google. you have to compare those two markets and you can see where advertisers are going, despite some of their concerns. emily: on a slightly different topic, she called out amazon and talked about how it's changing the face of retail, which we know. she specifically pointed to amazon baby wipes, amazon batteries, products that amazon
is branding itself and selling to consumers. what impact is that having on the retail landscape? paul s.: it's having a big impact. when you get to private branded products, it just shows you the strength of amazon in the retail marketplace. not only have they disrupted the entire bricks and mortar retail, but they are starting to think about how they position themselves within the retail market in certain verticals when you think about amazon, jeff bezos has shown over the last 20 years that he will make any investment that he thinks will grow his business long-term, because he believes, obviously, that retail sales going to online will grow from today's average of about 7% to 8% to well over 10%. he needs to be part of that and be the lead player there. we've seen this company make tremendous investments across their businesses because they believe in the long-term story. emily: paul sweeney, thanks so much for weighing in.
the 16,000 financial advisors at morgan stanley are about to get some cyborg help. the new machine learning algorithms will take over various tasks to help out employees. the bank is selling the rollout to wealthy clients as a more comprehensive upgrade compared to robo-advisors. for more, we are joined by hugh son in new york. how is this different than what already exists when it comes to ai helping human traders? hugh what already exists is: robo. a simple asset allocation algorithm. maybe it has tax law harvesting built into it, but a fairly straightforward platform for people who have less than $1 million in assets to invest. what's emerging as the cyborg model is man with machine, financial advisors equipped with algorithmic assistance, which will hopefully make them smarter
and when you think of a cyborg, you think of somebody who is faster and stronger and can do things better. the hope is this will keep the human advisors better equipped to handle the very wealthy clients that they have and keep them happy and sort of keep the robots at bay. emily: we were speaking with the former head of google china, a big investor now in china, who says that ai can now do some of these tasks better than any private banker can do, which reminds him now to fire his private banker. so, to what extent are these new technologies going to replace humans in the future? hugh: that's a question i asked every executive i talked to for this story. you have to think about what is a computer do better than a person and what does a person do better than a computer. if i'm a very wealthy person, i have $5 million at morgan stanley. something in my life happens.
god forbid, a parent dies or they have to go into long-term care. you don't want the stephen hawking voice to call me and try to empathize with me. i would hang up immediately. they are are still things, particularly the more wealthy you are, the more high-touch you want to be. you need human beings to be smarter. you need to have algorithmic assistance to tell you when is the right moment for me to engage with this person. morgan stanley is rolling out some machine learning capabilities that will actually ingest all the interactions that they have, that the advisor has with their client, to try to get smarter and know what that client really wants. emily: how does risk factor in here? is it preventing banks from adopting ai more quickly? hugh: ai is obviously huge. i think specifically,, financial firms have been really late to adopt a lot of the technology.
i was talking to somebody earlier today and they were like, this sounds like something they should have done years ago, and they were probably right. it's in the onset. we will see ai, more in capital markets. we will see ai come out more in capital markets. you will be interacting with ai as a retail customer. it's going to happen a lot more as years go by. it's going to be something that probably replaces some of the humans you have been dealing with. emily: all right. our bloomberg news finance reporter hugh son. thanks so much for that report. could new airport scanners end the latest debate about taking laptops on flights? we will take a look at the company that says it has all the answers. this is bloomberg. ♪
emily: jetblue is about to launch a first of its kind boarding program involving face recognition. passengers won't need boarding passes. they will get their image taken at the gate. the image will be managed or those on file with u.s. customs and border protection. this will be tested on flights from boston and aruba. we continue to await a final decision on whether an american ban on laptops in american cabins will be expanded to include flights from europe. u.s. secretary john kelly said in a call with eu leaders that the proposed expansion was, quote, "still on the table."in march, the u.s. barred electronic devices larger than a mobile phone from airline cabins on flights bound for america from 10 middle eastern and african airports. a final decision hasn't been made, but one company says they may have a solution. they have developed a new scanning machine that has passed
initial u.s. government testing. joining us now from washington, joseph paresi. ceo of integrated defense and security solutions. so, joseph, first of all, how are your scanning machines better than the technology that is already deployed? joseph: it's very similar to medical technology. if you get an x-ray, that will give you a certain amount of information. but when you have a cat scan, you are looking at the body from all different angles, in three dimensions. you're analyzing much more detailed data and able to use that information with algorithms that can analyze the material content and then determine whether an item inside the bag is a threat. emily: how can your technology better determine if a laptop has a problem? joseph: well, because we have the resolution to look for the types of explosives that the tsa is interested in finding, we are kind of breaking the bag,
slicing and dicing is the way i like to put it. if you think about breaking the bag into little cubes, which are volumes, and measuring the density and the material characteristics of each one of those cubes, then putting together all of the common ones into an object, the ones that are touching, then you know something about the material characteristics and whether it matches that of an explosive. based on the fact that you know the size of it, you know whether it is large enough to be of concern, it is large enough to cause an explosion on an aircraft. it is really quite advanced from a simple x-ray machine, which just shows you three different angles in the united states and most of europe. it only uses one projected image. very difficult for any officer to find an explosive material in an object inside a bag like that. emily: as i understand it, you believe that banning laptops
will just encourage terrorists to work on other ways to threaten our safety and security. but if laptops are any question, devils advocate would say, shouldn't we be as cautious as possible? joseph: one wouldn't disagree with that. i think that when you are going to do what's being contemplated by secretary kelly right now, to ban the laptops, you are also going to put a major inconvenience on a number of people and their ability to do i think that when you are going business. so, is there technology that could help keep those laptops in the aircraft and do that in a manner that you provide the same level of safety, if not better? being able to analyze it is better than assuming that, if i have a laptop, it is safe because i've taken it away from the passenger. what stops the terrorists from putting explosives inside the laptop and now you are just putting it into another section of the aircraft where it still can explode, still can cause a
fire, and still be a threat to the flight? emily: where is the united states when it comes to certifying your technology? joseph: the united states and europe have a certification standard. we have passed both of those standards for certification. in the united states, they go one step further, really involved, into let's make sure it's ready for operational deployment in an airport before we put it into an airport. that's called a qualification process, where they validate over 500 different items to make sure that your system meets all the different criterias, safety, power, data collection, operator interface, tools the operator would use to look through the bag, and so forth. we are in that process right now and hope to be done sometime this summer. we are, in parallel, going into logan airport on june 14. we are not just standing still. tsa is moving forward while they
are finishing their operational evaluation. they are putting it into airports to examine it in a live operation. emily: quickly, there is momentum behind next-generation screening lanes, computerized conveyor belts. how would your systems work with that new technology? joseph: these systems, what you call smart lanes or automatic security lanes, are more of a human factors improvement, where you're providing a way for multiple passengers to come up at the same time, grab a tray, put their stuff onto the tray, run it through the system. after it has been scanned, it diverts. it sends it back to the passenger. there is a 30% improvement in throughput because you are organizing the way that people put things. emily: all right. joseph: we are integrated with almost all of those vendors, but it has nothing to do with security. security is done within the scanner that is examining it for
♪ emily: waze is expanding its carpooling app across california. the alphabet owned mapping and navigation company has been testing the service in san francisco and in israel and plans to launch in brazil. its ridesharing platform operates more like a traditional carpool, where the drivers and passengers have similar or origins, and -- destinations. caroline took a drive with josh, head of carpooling business. caroline: hello. what a nice ride. >> thank you.
caroline: happy carpooling, eh? how many people are using this already? >> tens of thousands of people have registered already. ze, tens of thousands have downloaded. thousands of carpools every weekend. >> why are people using waze for carpooling? what is the need? is it work or play? >> we are trying to connect commuters who either don't have a lot of options, or are tired of driving, or have limited parking at their workplace. we are connecting commuters who are going in the same direction and who have similar origins, similar destinations, their neighbors, their friends, their colleagues, and simply taking cars off the road. caroline: and what about the money exchanging hands here? how much are you getting reimbursed for taking me? how much am i paying you?
>> it's a not-for-profit, share the expense carpool. these are not for profit drives like ridesharing. as a driver, you would get up to $.54 per mile, which is the federal limit on gas and expenses for driving, and the rider will pay no more than that as well. for a 10-mile ride, it will probably be around a five dollar exchange between rider and driver. waze is facilitating that. as a rider, you give us your credit card number. as a driver, you give us your bank account information. we do the transaction behind the scenes. caroline: why else is waze doing this? this is not making them money, or is it? >> there is a financial component in the future. today we are not taking any commissions on matches. at some point when we reach higher density and our quality of services where we want it to be, we could take a small commission off of every match as well. caroline: and the data you are getting out of it, where is that of interest?
>> definitely, data is important to waze. the more people who are using it, the better it gets for everyone. with something like carpool, where we can tell where your home is and where your work is and your regular commute patterns, that helps us with routing for everyone. that helps us tell cities we work with here are your origin places of density, your destination places of density. we work with, i think, 250 different cities around the world to help them solve their traffic problems. caroline: how does it play into the greater scheme of alphabet destination places of density. as well? >> at this point, we are not working directly with any other entities on carpool with enough -- within alphabet. it's very much a waze project. it is something we hope is important to the future. caroline: how is the competitive landscape? >> it's really early days. there's a few startups working on carpooling. lyft and uber have exterminated -- have experimented with true
carpooling models, but they haven't really stuck. caroline: where do you see percentages going? do you have a viewpoint on where the company can really be? >> i think we all see a future where, you know, there's a lot fewer cars on the road and, potentially, they are driving themselves. i think all of us will be getting into self driving cars someday. i think that today, if we can convince double-digit percentages in major cities to carpool, then it will have a measurable impact on congestion. emily: that was the head of the carpool business at waze and bloomberg's caroline hyde. that does it for this edition of "bloomberg technology." on thursday, we will speak with the director of baidu's silicon valley ai lab. all episodes are live streaming on twitter. check us out on weekdays. 5:00 p.m. in new york, 2:00 in san francisco. that's all for now. this is bloomberg. ♪
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