This month on the social networks controversial cryptocurrency. We have details. And whistleblower speaks. One of the people from the Cambridge Analytica scandal joins me. On the riskslie ahead of the 2020 election. Highlevel trade talks picked up this week in washington after tapering off in july with no clear breakthroughs. Chinas vice premier was greeted by treasury secretary Steven Mnuchin and trade representative Robert Lighthizer before talks resumed thursday. The stakes were extremely high as President Donald Trump threatened to raise tariffs on 215 billion worth of chinese goods on october 15 if there was no progress. The Technology Sector paying close attention to those discussions as intellectual property is playing a prominent role in the negotiations. I spoke to someone from a firm who helps u. S. Firms protect intellectual property. Eric a fairly Large Company in china, 1600 people, just sub 100 million in revenue that files and protects intellectual property for clients that have previously mostly been in china and is now expanding into the u. S. Thats what we are doing here based out of boston. Taylor what kind of ip theft language do you need to see to get a deal . Eric regardless of the status of the trade talks, the importance of securing ip protection for u. S. Companies that are operating in china should not get lost anywhere. U. S. Companies should not be missing out on that opportunity if they are going to work in the chinese market. Many things are manufactured in china and they are in that market already. Taylor who is stealing whose ip . Eric good question. Theres a fair amount of confusion when we talk about ip theft. It really needs to be defined a bit better. We hear that routinely and the question is, what are we talking about specifically . We dont hear a lot of specific examples that are at all recent. I think most people think of ip theft as counterfeit goods and that is a very real problem that exists in china and it is a problem for any manufacturer outside of china. Where we tend to be thinking about ip is in the patent world, where you are actually disclosing, when you get a patent, getting the protection not only in the u. S. But in china, where china is fairly open to protecting their markets for anyone operating inside china, by filing and protecting it with patents. Do you trust the protections in beijing given the relationship between the u. S. And china not being the best right now . Eric if we just abstract ourselves from the battle and put that aside for a moment, when you get a patent in the United States, you are telling the world how to practice your invention in exchange for the rights to do that. You have the right to exclude others, but only in the United States and you have made your invention public and anyone from anywhere in the world can look at the u. S. , look at your patent, see how to practice it and go ahead and do it. If youre not protecting it in the country were someone is doing it, you dont have any protection. It is largely a situation where you want to file for protection in china if youre going to be filing for protection at all. It is almost crazy not to be doing that if youre going to be operating anywhere in the world besides the United States. Taylor that was eric giler of ciprun. As for companies affected by the ongoing trade war, one company manufactures a significant portion of its product in china. This week, tile added to its lineup of tracking devices that helps customers keep track of keys and other things viewed the company may be considering future manufacturing hubs outside of china. Because we manufacture products and do a lot of that in china, the trade wars and policies there are impacting us. We are subject to tariffs, they went in effect on september 1. We support the policy, but one of the challenging things for Companies Like ours is we did not have a lot of notice that tariffs were going into place. I think we had four weeks notice. While we support the policy when you think about Building Product leading up to the holiday, we didnt have a chance to react. Taylor we hear from companies they need lead time of the supply chain, you need to have two quarters. It does take time to shift a supply chain. If you think of a businesslike tile, we started in the u. S. And now we are global. We are selling in well over 40 countries, our community has expands across the world. When you have complexity like that, 40,000 retail, growing like crazy in japan, last quarter we sell 106 growth. You need a supply chain that meets the needs of retail customers, distribution customers, and we have a big direct business as well, so selling to the direct customers. There is a lot of complexity. So making moves takes time. Taylor have you started moving manufacturing in those places . Cj no, we are basically viewing this as an opportunity. As i said, we support the policy, so now we are taking a chance to reshape our supply chain in a way that serves our customers best. Both, again, direct customers and retail customers. Taylor you are talking about a new hardware launch which is great, and there is a Software Component as well. You were here a year ago and you said sometimes you dont need the hardware because the software is bluetooth enabled and in connected devices like google home and amazons alexa. How is that interaction between hardware and software . Cj it is a great question. A few things that are not super wellknown about tile, one is we have a community platform. Its basically the largest lost and Found Network in the world and if you leave your tiled item at a starbucks, a train, it gets found by the community. We have an app mesh network of users helping you locate your things. The second thing is our big focus is around embedding the tile capability into thirdparty products. We have announced about six or seven different audio headset partners and we have launched products with Companies Like bose and skullcandy. And plantronics and sennheiser. We are looking at big verticals like laptops and cameras and wearables. And anything with a bluetooth device, and there are 30 billion of those shipping in the next five years, can be a tile with a software update. Taylor how do you respond to some reports that apple could be coming out with a competitor product . Do you see apple as a colleague or competitor . What do you do if thats the case . Cj apple has been a great partner for tile. The way we think about the rumors around the competitive product is that it is really validation. We have been building this category for six years and it basically illustrates this is a real pain point. Of those 30 billion devices shipping with bluetooth, only about 4 are apple devices. Its a big opportunity for the rest of the market. Taylor that was the tile ceo cj prober. Protests in hong kong ticked off again this week following months of demonstrations demanding universal suffrage and the right to choose hong kongs leadership. The level of violence has grown in recent weeks and police have responded with mostly tear gas and batons. Apple joins other Foreign Companies struggling to navigate the prodemocracy movement. Apple yanked, then reinstated, then pulled a popular app from the app store that shows Police Activity in hong kong and was said to be used by protesters for demonstrations. Bloombergs selina wang filled us in from beijing. Selena so this is a crowdsourcing mapping app that allows users to see were protests and Police Activity is happening. Apple is reversing course again after saying it spoke to local authorities that said it was threatening public and police safety. The app creators have said there is no evidence of this and critics have scorched the company for saying it is basically capitulating to chinas demands at the expense of free speech, but to be clear, this is not the first time apple has made a move like this. A few years ago, they removed vpn apps on the app store in china, more recently it removed a taiwan flag emoji app. Greater china is apples largest market after the u. S. So there is a lot at stake for the company. And it just underscores the increasing challenges when it comes to balancing political risks at home and abroad for International Companies operating in china. Taylor and within that balance you talk about, was this really harming police or is it seen as caving to beijing . Selina we did hear a hong kong legislator say he was deeply disappointed in this decision and that in his view, this is actually hurting individual, innocent passersbys who would use the app to avoid violence. There is no evidence of the app being used to threaten public safety, but apple says it did in investigation saying it was used to potentially target individual police and individuals in areas where police are not around. I think the broader significance of this also points to what we have seen happen other companies caught in the fray, not just apple. You have seen companies from vans, starbucks, zara, blizzard having to toe a delicate line and get scorched when it comes to taking a side, either side when it comes to the hong kong protests. I think the nba is a relevant example. A single tweet has threatened the entire business of a company that in china, has spent decades building its business there. With a single tweet seeming to be sympathetic to the hong kong protests, you have firms, the se from tencent and a state broadcaster refusing to broadcast their games, all distancing themselves and cutting ties to this company. We have seen beijing take a very hard line, zerotolerance policy approach when it comes to companies seeming to meddle in what they say are internal affairs. Taylor that was bloombergs selina wang from beijing. Taylor and coming up, Mark Zuckerberg summoned back to washington for another out of hearings on the Libra Cryptocurrency this month. We will have details. And if you like bloomberg news, check us out on the radio. You can listen on the bloomberg app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Taylor Mark Zuckerberg will get a firsthand look at the growing opposition to facebooks plan to create a cryptocurrency. We learned this week the social network ceo will testify before the House Financial Services committee october 23. The hearing will examine facebooks impact on the Financial Services and housing industries. For more, i spoke with Bloomberg Technologys kurt wagner. Kurt anytime the ceo testifies it is a big deal, but Mark Zuckerberg is a huge deal. I was there in april, 2018, when he last testified, and it was a total zoo. It was just Everyone Wants to see mark and ask him questions, and i imagine this will be the same. I know they had been trying to get cheryl sandberg, they were talking to her, we wrote about that a couple of weeks ago. It looks like they got someone even better in theory, her boss. Taylor what do we know about the content of the hearing . Kurt we know the committee focuses on Financial Services, so libra, the Cryptocurrency Facebook is spearheading, will probably be a large portion of it. They also do housing stuff. You mentioned housing in the intro. Facebook has been accused of issues around its advertising business where people are discriminating or being discriminated against, im sorry, for housing related issues. And so i imagine that will come up as well, but the thing about these hearings i have learned, once you get executives in front of these committee, pretty much anything goes. So with Mark Zuckerberg in particular being there, i imagine we will hear questions that span the gamut. Taylor i think ive asked you this before and i continue to be perplexed, did facebook realize the amount of opposition would be coming their way about cryptocurrency . Kurt its hard to imagine they would have foreseen this level of pushback. Because if they had, i think they wouldve done more work before announcing the currency. That being said, it is a tough chicken and egg situation. If they had gone out and started having these conversations with politicians, it would have leaked, people would say, what is facebook doing . Do they even have a plan . So they took the other approach and announce the plan and now they are having conversations and everyone is freaking out. I feel like it was loselose for them, but at the same time, did they anticipate Mark Zuckerberg would be testifying before congress four months after this was announced . I have a hard time thinking that was the case. Taylor facebook skeptics now have derivatives to bet on whether libra will meet its target launch date. A Crypto Futures Exchange is offering derivatives that pay out based on the likelihood libra will be operational by the end of 2020. The initial price equates to a 30 chance of the cryptocurrency meeting that timeline. Coinflex ceo spoke to bloomberg on monday. Mark we are excited about this futures contract because it gets the market to price the odds of the event occurring. It is obviously physically delivered libra, and in the case of nondelivery by facebook, it settles at zero and gives the market away to say, well, this is likely, it is unlikely, respond to news events, and give clarity to facebook and Libra Partners in this project. Why so bearish and so pessimistic . Why only a 30 chance of hitting the december 2020 date, already a day later than libra planned . Mark were going to let the market decide this one. That is the opening price, but from there on after, it is just determined by anyone who wants to make a market. Is this garnering a lot of attention for you . Are you going to get highvolume when these contracts open . Mark no, we dont actually expect very high volumes from these contracts. We do, however, expect them to be something people are fascinated by trading, something that ends up trading a lot in terms of number of users. And ultimately it brings interest in the exchange and provides a signal to the market of where libra actually will end up being. We have a pretty active betting market in this country. Why is it better to use your product than walk into a betting office and say i would like to put a bet on this particular outcome for this libra product . They specialize in making markets in all kinds of seeming offthewall stuff. Why do you need this product . Mark sure. Coinflex is a physically delivered futures exchange. Our main products are futures on bitcoin physically delivered. And if you want a physically delivered libra at the time of expiry, this is the place for you. If you want to make a sports bet or Something Like that, if libra gets traded on those platforms, then the is a great place to do that, but we are trying to offer futures on libra and that is basically what people come to us for. Taylor that was coinflex ceo mark lamb. Coming up, he saw a struggling nasdaq and turned it around. We hear from a former chairman and ceo of the exchange and about how he did it. That is next. Later, whistleblower is the word of the day in washington. But before ukraine, there was Cambridge Analytica. We speak to Christopher Wiley. This is bloomberg. Taylor when bob greifeld took the reins of nasdaq in 2003, he knew he had his work cut out for him, as did the board. The former fintech exec got off to a running start and made key personnel changes, trimmed costs, and landed big deals. In the process, he made nasdaq into a very different institution. Thursday, he spoke to david westin about his new book, market mover. Bob the most important move we made was to buy inet, we got the best technology on the street. A lot of the highfrequency firms use some version of inet today. We gained market share. When i think about the 47 acquisitions we did, the only one we had to do independent the price was inet, we were at institutional risk. We were losing market share and money every day and we didnt have any technology on the shelf that had proven great faith. The rest of the acquisitions were optional and we were using that to build upon further strength. David then 2008 happened. That was stress on everybody, including you to clear the trades coming through. But there were reforms afterward and in your book, you said that jamie dimon, the head of jp morgan, called you up and not a friendly way. Bob there were some four letter words there, but i would say our systems worked well through the great credit crisis. We were hitting volumes we only saw in the lab, that was nerveracking. We bent but did not break. There was a professional disagreement in terms of how things would play out. One thing i have to say with jamie dimon, we lived through difficult times with facebook, and to his credit, he gave me a call and said, bob, you will get through it and it will work out. David the facebook problem was pretty well known and treated directly in the book. Bob it is a really big loop. I came there and we had a certain culture. We changed it, and we made thee engineers the kings of the ship. The organization was not balanced. I created a culture where the engineers could over develop systems without any check from the people running the businesses. We had to evolve, we learned from it and became a more balanced organization and a better organization. David right now, there is a big dispute, discussion going on about ipos, which are terribly important to nasdaq, as well as direct listing. But nasdaq, as i understand it, had both experiences, didnt you start with a direct listing before you got there . Bob we did it when i was there. David so what are the pluses and minuses of direct listing versus ipo . Bob the direct listing will have a niche. So if you have zero need for capital and a brand in the investment community, direct listing comes into the frame and you have to make a decision. The advantage is you dont have to get involved in what is the right price, right . If i go public and the price is up 40 or down 40 , i am the ceo and i dont really want to be in that game of trying to decide how to play that. I would rather get the right price. If you list first and then raise capital a year later, then you will know the price because the stock is trading. That is an alternative for some, but not too many. Taylor that was the former nasdaq ceo, bob greifeld. Coming up, Cambridge AnalyticaWhistleblower Christopher Wylie has a new book out. We will talk about data mining and potential hacking threats as the 2020 president ial election closes in. And Bloomberg Technology is livestreaming on twitter. Check us out at technology and follow our global breaking news network at tictoc on twitter. This is bloomberg. From the couldnt be prouders to the wait did we just winners. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. Now you can share it between lines. Mix with unlimited, and switch it up at anytime so you only pay for what you need. Its a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy an eligible phone. Call, click, or visit a store today. Taylor welcome back to the best of Bloomberg Technology, i am taylor riggs. Facebook is appealing a ruling that says its users can through the social network over the Cambridge Analytica scandal. Facebook says the courts decision doesnt line up with other rulings including by the supreme court. Others are saying that facebook improperly shared data to third parties without their permission. More than 30 million User Accounts were involved in the scandal. Who better to talk about Cambridge Analytica than the man who blew the whistle on the company . It is Christopher Wiley. He is also the author of a new book that details the series of events. He joined us wednesday from new york along with Bloomberg Businessweek columnist max chafkin. Christopher writing a book actually helped me reflect on everything that happened. I talk about my journey from getting recruited at a military contractor to working on modeling and data work that helps identify people more prone to paranoid ideation and extremism with the idea of trying to mitigate that problem to having that work completely inverted, after an altright billionaire in Stephen Bannon acquired our company. Trying to do the same thing in america, targeting people who are more prone toward radicalization, in this case, for the altright. Max coming forward the way you did, blowing the whistle on facebook, maybe the most powerful Media Company in like . , what was that did you get pushback from facebook, any threats . As you moved to tell the story in full, have you heard from the them from them at all . Christopher where do i begin . Before the story even emerged i was working with Law Enforcement and regulatory agencies months and months and months before the story broke. When facebook found out that the story was emerging they knew about Cambridge Analytica well before any of this was published. You know the first thing they do , is threaten the journalists at the guardian with what in my view was spurious allegations, it turned out everything was true. In my case they went and banned me off of facebook and also for some reason off of instagram. Then after that point, working day in and day out with regulatory authorities and the in the e. U. , u. K. , u. S. , all over the world, one of the things i thought was the power this company has to hide, to obfuscate their work. One of the things i came to sort of understand is that when you go and blow the whistle, you see something that is wrong. You report that to an authority you think there is going to be some guy in some federal Agency Buildings that knows what to do. One of the things i realized, there is not that guy. That guy does not exist. You know ive talked to toovernments, i have talked regulators, i have talked to congress, parliament. People do not know how to handle this problem. For me, the real concern is we have a completely unregulated, digital landscape that Companies Like facebook take advantage of. And even though Companies LikeCambridge Analytica have dissolved and no longer exist the capabilities are still , there. One of the reasons i wrote the book was so that to serve as a , warning, because even if the company doesnt exist what if , china becomes the next Cambridge Analytica . Or north korea . Currently there are no rules. We are entrusting our democratic process to a private company and i question whether that is a good idea. Taylor you mentioned that you are in conversations with lawmakers and other regulators, and i wonder if you think the current regulators and lawmakers are not doing a good enough job handling the problem as you described. Christopher one of the things going to congress that i realized was the power of lobbyists, particularly to define a narrative. One of the first questions i would always get at congress is can the law ever keep up with technology . I would say we regulate Nuclear Power plants, we regulate airplanes, medicine safety standards, there are all kinds of technologies we regulate in the name of consumer safety. Just because something uses software or is on the internet doesnt mean we cant create rules that require complete to consider whether the products that they are putting out into the public will be safe for people to use. You know the United States is , one of the only i think the only oecd country that doesnt have a National Level privacy law. When you look at the language and the way that a lot of Silicon Valley companies talk about themselves, they say it is a service, there is opt in, terms and conditions, all of the stuff. Yet when you look at the price of the people working at the company, they are called an engineer and an architect, they build ecosystems. These are things people are going into. These are architectures. When you look at how we regulate physical architecture or engineering, if you build a building, if you were an architect and you built it without a fire exit, but you said it is ok. People opted into the building and there is a book of terms and conditions over there, if it burns down, that was their choice, people would not stand for that. So i think one of the things that i hope, particularly lawmakers if they read the book, one of the takeaways is we need to really understand what is social media . What are these platforms . They are architectures and they need safety standards. Max so we have got obviously 2020 elections coming up. Withata that was at issue the Cambridge Analytical scandal, is that data still around . Is it conceivable that it could come in to play again four years later . I guess in a larger sense, how worried should we be about foreign interference Going Forward . Christopher i dont know. You know, i dont know what happened with that information. Dont know what happened with that data. A lot of the same people who were working at Cambridge Analytical and now work on the trump campaign. This is a company that had regular contact with russian officials. The ceo shared vodka with the russian ambassador. They would then also meet with you had its clients regulate russian with the ambassador and then also meeting with the trump campaign. The people exist, the capabilities exist, whether the data still exists i dont know. Facebook presumably has tried to contain the problem. You know, when i dealt with them, they did not do much. But that is exactly why i think we do need to take a step back and go, should there be some kind of consumer safety watchdog when it comes to digital platforms . If no one is watching, these are the things that can happen, and in this case, we had people come forward and talk to the media, but what about the cases where that doesnt happen . Taylor that was Cambridge Analytica whistleblower Christopher Wiley and Bloomberg Businessweeks max chafkin. Coming up, roku stocks surged after an analyst predicts the connected tv company will triple its user base by 2022. We will hear from the analyst, tim nolan of macquarrie next. , later, consolidation in the food Delivery Business. We will hear from the delivery hero ceo. The company is a major player in europe. This is bloomberg. Taylor roku had its best day in about two months wednesday after Macquarie Research updated the stock. An analyst noticed a sharp recent declines in the shares of the video streaming platform. To discuss the move, i spoke with tim nolan of macquarrie. Tim we highlighted pretty thoroughly i think in our note. List the stock had come down from 175 or so to about 100, so there was an opportune moment. Essentially it is partly the International Expansion that we talk about in our report and we think roku going from almost a almost zero to a large number internationally, and they can get to approximately their size internationally that they are in the u. S. Now within about three years. On top of that, connected tv advertising, which i think is really the growth story for roku, is growing very strongly and roku has built a great position to continue growing into that. Taylor let me parse down a few of the points you have hit on, one of which was the stock falling from 170 to 99 in a few weeks. How much of this was from the multiple standpoint, it looked relatively cheap . Tim 170 you could argue got it got expensive. You had a number of Software Stocks traded down. Peerser of its broad traded down. I think it was sector rotation going on at the time as much as anything. The stock went from i think 55 was its more recent low, to 170 in three or five months. But is such a sharp move. Anytime you get a quick move it , is not surprising to have it come back and take a breath. It came down sharply. There was increased news of competition, we heard about amazon fire tv, we heard about comcast with the flex product which i dont think is a real issue. But more competition at the time and the wrong combination of factors for the stock. Taylor you mentioned earlier about International Expansion being a key sort of as a catalyst for the stock Going Forward. What types of numbers on that International Side do you need to see from the company to maintain your thesis . Tim the thing is we dont know about the International Strategy and we dont know anything about the expansion. We know one or two things about markets and devices but we dont know the rollout schedule. What we have done in our report is tried to lay out what we think is a reasonable assumption based on connected tv and tv penetration rates into homes where roku can get. Thats where we get our estimate of getting into about 35 million or so households internationally in three years time. Thats on the device side. Another way to look at it is on the advertising side and this is the more important story for them, the advertising platform. If you look at connected tv advertising growth, it is growing double the rate or triple the rate now from year from a year ago. If you had put a more modest assumption of growth on that over a few years time, you get to pretty similar numbers that we come to for rokus growth in terms of revenue the next three years. Taylor that was tim nolan of macquarrie. When it comes to streaming zuckerberg, the cousin of Mark Zuckerberg, is no stranger to the media landscape. She is the founder and ceo of zuckerberg media. She sat down with Francine Lacqua to discuss the evolution of content, the need for consolidation, and the evolving role for females in the industry. Randi 100 million hours of video uploaded just to youtube, and that is one channel on one day, every day there is over one billion posts on facebook. You are right, it is who is out there listening to your content is everyone else is constantly making your content . Francine is it going to go down . In five or 10 years, what will we be looking at . Randi i think there will be a later of kind of curation like at museums. I think there will just be so much content it will be just exhaustion, and now people are looking for experts to tell them what to watch. I think the pendulum is almost shifting back again to the bigger need for expert voices in news, in different areas because people are bombarded by so much that they want to be guided a little, like you would curate a collection at the museum. I also think people really want more highquality content again. So it is interesting because when i was for starting and social media, it was about how many eyeballs you could get on things, and now i think it is the metrics, they are shifting back to engagement and depth. Francine are the next three years are going to be critical on who survives and who doesnt . Randi absolutely, it will be very critical. Companies are going to have to make sure they are playing in all of the new spaces. Thats why were talking about audio so much at zuckerberg media. I think that is one of the only spaces at the moment where there are more people listening to podcasts than there are podcasts that are regularly updated. There was a brief window around blogging like this about 20 years ago. That window is gone, i would not suggest to anyone to launch a new blog. It is impossible to get noticed, but broadcasting is still in that beautiful window right now. I think the Media Companies that are nimble enough to see the opportunities and get in will survive. Francine if you look at the 2020 president ial election, how should Media Companies look at this election differently . Randi it is interesting because its so fragmented. You see there are so many candidates, sony people that have passions around different issues and different topics. I think gone are the days when , you had a few sources that were the goto places to turn for an election. I think Media Companies, they have to almost think of themselves as 20 or 30 tiny little Media Companies and arm their employees to be individual Media Companies in order to be reaching the most people they can. It is an excitingly creative and stressful time to be working in a Media Company for sure. Taylor that was zuckerberg media founder and ceo randi zuckerberg. Bloombergs Francine Lacqua. Coming out, the food Delivery Business is consolidating. Takeaways deal with delivery hero among the latest deals in europe. We will hear more about the sector and growth projections from the ceo of delivery hero. This is bloomberg. Taylor food delivery remains a tough market. Front runners uber eats and u. K. Remain profitable and we see consolidation with established giant takeaway. Com and just eat preparing to merge. Delivery hero is a key european player. They sold their germany business to takeaway. Com earlier this year and are seeing Customer Growth in new markets across asia and the americas. Bloomberg talked exclusively to the ceo of delivery hero on thursday to discuss the competitive space. Niklas winning market shares in every region against every competitor globally, we are on path to be the largest food platform by the end of the year. In germany, at the time we did less than 5000 orders in a company like taiwan. Now eight months later we do three times as many orders as we did in germany back then. The investments we have been doing with the proceeds are really paying off. You see more of a future and emerging markets. You have gotten out of some developed markets recently. You mentioned germany, and there have been others. Will you be selling more developed market businesses to focus in on the emerging markets space . Niklas we are generally focused on markets where we see the best return, the highest frequency of customers, the best return on every single incremental order. That is we have that in the , middle east, latin america. Also in some european markets. Some Eastern European markets are good returns. Right now i think we have a very good footprint where we have no general interest of selling in the markets. [indiscernible] reporter so doubling down on the market you are actively in, and what youre trying to do in some markets is deliver more stuff, not just food, but to be more like amazon. Are you not concerned that the margins in that kind of deliver everything business are on the low side . Niklas our main focus is to deliver what customers really want and then work back from their, finding ways to make it happen. Thats why were looking at groceries, pharmaceuticals, we look at payment. If you take an example of this would be turkey, we have a warehouse where we can deliver in 13 minutes, way beyond what amazon can do. We now work from there to prove improve economics. We can deliver things on good economics. We see that in particular this quarter have overall logistics , efficiencies and all of our business are improving profitability per order and that is very encouraging. Reporter as you look into the future, what percentage of the business do you see being food delivery and what in other logistics . Niklas i still think that food, hot food is our main vertical and where we have our core. I do believe that that is probably 90 of the business. But from time to time, you need something, and we want to be there for our customers. We want to be that platform. Reporter why get into Something Else of its only 10 of the business . Niklas we want to make sure our best customers can go and stay on our platform when they need something and also having them continue to come back to our platform gives value. And of course, if you can that time deliver your toothpaste when you really need it, you will build a strong love for our brand. Then on the underlying occasions, you might order food. But you remember that experience. Taylor that was part of our conversation with the ceo of delivery hero. Google is ramping up its Restaurant Industry footprint. Just last week the tech giant announced it would be partnering with the leading digital food ordering platform for the Restaurant Industry. This will enable customers to order directly from over 300 Restaurant Brands across google search, maps, and google assistant. I sat down for an exclusive interview with the olo ceo on monday. The relationship is about enabling Restaurant Brands to be found by consumers when they are searching for restaurants on google. Consumers kind of naturally do that today, theyre looking for favorite restaurants and now they will be able to find those restaurants, order directly from the google platform, whether that is search or maps or google assistant, and send the order directly to our platform into the restaurants point of sale. I cant speak to the way googles Financial Model works. Our Financial Model is a is to be a subscription platform with transaction fees on top of that for increased order volume. Taylor do you share profits with google per click . When i click on the ad or when i click on the site or when the , delivery is confirmed . Noah its coming from the context of consumers today ordering from different platforms like thirdparty delivery marketplaces. When the order through those platforms, the restaurants pay something between 20 and 30 commission to the third party marketplaces. This gives restaurants the ability to take orders directly from google and we are just charging the restaurant a flat fee per month and per transaction that pales in comparison to the thirdparty delivery marketplaces. Taylor talk to me about the restaurant side. Why would they want to be on your site . Noah restaurants are using olo as their digital ordering and enablement platform. We work with over 70,000 restaurants across the United States and canada and restaurants are looking to olo really as their partner to help drive traffic into the restaurants. This is around developing a digital relationship with those consumers. Also listing menus on popular thirdparty platforms in a way that keeps the restaurant in control, and enables the orders to originate from outside the restaurant and come directly into the pointofsale system at the restaurant. Taylor and are the restaurants and olo playing the volume game . Noah this is an amazingly Seismic Shift that is happening in the Restaurant Industry. We are going to a place where over half of the overall sales in an 800 billion industry are taking place through consumers that are looking to get their food and consume it off premise. We are working toward half of that coming from digital channels. The Restaurant Industry has never seen a shift like that, and we are about helping our restaurants to be the great beneficiaries of that shift and get their orders coming directly from customers and building the direct consumer relationship. Taylor i hear you on the Seismic Shift, but its also an industry that is becoming increasingly competitive. Delivery. Com, uber eats, grubhub, fresh direct, all of these are sort of these online delivery programs. How do you stand out . Noah we are not a consumer facing brand. We are a platform restaurants that Restaurant Brands use to build their own apps and websites. A lot of the companies you mentioned that are Consumer Brands are partnering with olo and sending orders into the restaurants using our api that allows us to Syndicate Content to the thirdparty sites and have the orders still come through and go into the restaurant pointofsale, keeping things simple at the restaurant. So we are the partner that restaurants select as they are theirl select as digital ordering platform that they are building on top of, and enabling them to keep things simple and tapping into the other thirdparty sources of orders. Taylor its also a competitive space when we look at googles perspective. There is a lot of mapping services, there is a lot of other Search Engines and Voice Assistant programs. Why did you go with google . Noah theres nothing about the relationship with google that is exclusive. This is part of our rails platform which is really about getting our restaurants menus menus into every thirdparty site they would want their menus to be listed on, where they want consumers to be able to find them and place orders. Weve done a similar deal with door dash and postmates. Caviar and waiter, most recently uber eats, now this announcement with google allowing our restaurants to go where the consumer is an tap into that ondemand universe of online customers. Taylor that does it for the best of Bloomberg Technology. We bring you all the latest in tech through the week. Tune in every day. 5 00 new york, 2 00 in san francisco. And Bloomberg Technology is livestreaming on twitter. Check us out technology and be sure to follow our global breaking news network at tictoc on twitter. This is bloomberg. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. 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