Hardware to services. And a new study finds ecigarettes are no safer than traditional cigarettes. One attorney general has filed multiple lawsuits to keep them out of the hands of teenagers. But first, to our top story. Two years ago, ubers infamous ceo was forced to resign. A new ceo came in and was forced to rebuild the reputation. He has brought in new management but has not been a smooth ride. A big ipo sparked excitement but investors have not been impressed and has traded at a low price since. I sat down with ubers ceo and began by asking if you made the right decision to join the company. Dara we have resolved the conflicts the company has and there are many issues the company was involved with. You have softbank is a partner and you want them behind you. We have a great investor base. We have taken the company public. Revenue has grown 75 since i joined. We now have a path to profitability. So while we have had bumps on the road, i like the position we are in now for the next years. Emily there have been bumps on the road. And despite all the negative stories, uber, lyft, Ridesharing Companies have been transformational. The big question for you is can uber be as transformational as it has been over the next decade . Dara i think so. Really, what uber has done is brought transportation and opportunity to a small segment of the population. We have 4 million driver partners all over the world, which is a huge number, unparalleled, but we want uber to be available to everybody. What we are doing now is going into the next step of introducing other transportation choices to uber. We have always gone with pool, but for example, we are testing buses in cairo to bring the cost of uber down. We are introducing bicycles and scooters for personal electric mobility. So that, essentially, any way you want to get around your city, we will be there for you. It will be mostly uber goods, but we will have third parties, such as transit, lime. Anyway you want to get around, we want to be there. If you want food, local commerce, uber eats and other services will be there for you as well. Emily i guess the question is, can uber be transformational and stop losing money . The prices sound attractive, but can you create a Good Business when the rides are one dollar, 1. 50 . Dara yes. If you look at our rideshare business, it covered our overhead less 100 million, so the rideshare business itself is turning quite profitable and we believe the profits of the rideshare business will grow not only topline, but bottomline as well, and there are other businesses, eats, autonomous these are extraordinary opportunities we are funding. I do believe we will prove to investors that we can take on a serial basis big parts of our business, turn them profitable, use those parts of our business to Fund Investments in other areas. Emily there are execution issues. You just had your biggest loss, 5. 2 billion. The stock is trading below the ipo price. Much more often than not. Investors seem to love shorting it. You have hiring freezes on various teams. Some of your top hires have left. You said you believe uber can be profitable, but how confident and quickly can uber be profitable, and how quickly . Dara i am very confident. The losses we reported was a 5 billion loss from an accounting perspective. If you live in an accounting world, thats a real loss. I live in the real world. In the real world, our ebida losses were lower than q1 and we are on a good path in terms of our ebida losses as well. But you are absolutely right. None of this will be easy. All of this will take excellent execution from all of our teams, marketing, technology, etc. , and we are going to be demanding our employees do more with less, and to execute incredibly effectively in order for us to grow topline and bottomline. Emily is pricing the main lever you pull to profitability or our there other drivers . Dara scale. Scale. It is getting big when you have over one billion rides per quarter and you have got trips growing up 35 year on year. We think we can use technology to be more efficient. For example, instead of emailing a Call Center Agent or calling a Call Center Agent if you have issues, you can do it in the mobile app. These are Technology Innovations that allow a better experience and bring down costs, so the combination of growing topline over 30 , Technology Innovation to delight the customer, and good oldfashioned efficiency, making sure costs dont grow as fast as revenue. All of those together are the formula for profitability. Emily just days before i spoke with him, a former uber engineer plead not guilty to stealing technology from alphabets waymo unit. It as a new criminal chapter to the saga surrounding the civil claims of trade secret theft against uber. This was one of many legacies inherited when he took the top job. I asked him if he still feels the weight of previous management. Dara you need different kind of management for different times in the development of the company. Listen, every management has their faults. I have my faults, but they built a Great Company, and now they have handed it to me. I have to take that Great Company and make it greater. I think i am up for the job. While they made their mistakes, the fact is that they built a great brand that had weaknesses, but incredible strengths. It is my job to take it to the next level. Emily anthony levandowski, the guy who ran the trucking business that uber bought, was just charged with stealing Self Driving Technology from google, stealing trade secrets. What do you make of those charges . Dara um, i wasnt here when we brought anthony on board, but what i do know is we went to incredible depths to make sure any information anthony might have acquired from google, and it sure looked like he did, did not make it over to our company. That was our responsibility, and we were incredibly diligent in making sure that we were not guilty of anything that could be nefarious one way or the other. We think that when you build, youve got to build the right way. Anthony is an incredibly talented person. It did not work out, but we did the right thing. Emily the person who was here and spearheaded that acquisition which might cost uber hundreds of millions of dollars is still on the board, travis kalanick. I asked you this on ipo day and i feel i have to ask it again, do you question his position on the board . Dara i think that i am going to live in the here and now. Travis has an incredible amount of historical knowledge about the company. He is incredibly bright, as are other board members. I use him at the board. He is a strong advisor. His background is incredibly useful, and he is supportive. Ultimately, we are a Public Company and the shareholders are going to get to pick their own board and that governance process will take care of itself Going Forward. Emily you talk to him often . Dara i talk to him usually during board meetings and once in a while offline. Emily he is on the board for now . Dara he is, and he will be on the board tomorrow. Emily lets talk about the future, then. Those who say uber is a ridesharing and food delivery company, what is the next big idea . Dara the ideas we have right now in this building are plenty big ideas, ridesharing, food delivery, micro mobility, autonomous, freight revolutionizing how truckers move around. And how shippers ship product all over the world. We have elevate as well. We have an enormous number of big ideas and now it is execution time. Emily where is the technological innovation happening at uber . Dara it is happening all over. What is unique about our business is that we are a combination of the digital, physical, and the two coming together in unique ways. We have interesting Machine Learning algorithms looking at live supply and demand in the city, what riders are looking for and where they are located, and giving our drivers guidelines of where to go to meet that demand. This matching of supply and demand in a dynamic way and the pricing we have is unique. We continue to innovate there, and we innovate in different spots, such as elevate, how we can bring together different modes of transportation and tie them together. Walking, driving, to helicopters, to jfk. Emily you are in charge of not just visualizing the future of transportation, but to get there and create that future. When you look into the future, what does the future of transportation look like . Obviously, you have google, tesla, traditional automakers, flying cars, and helicopters how will this come together and be different . Dara we think we can bring it together. I believe we can have that singular app, where when you wake up, anyway you want to get from point a to point b, we can give you the information that is relevant to you with live pricing, et cetera. We have mass transit in the app. We will tell you mass transit you can take, a subway you can take. You can take an uber, and you can take an elevate as well. We are uniquely positioned as a company to have all that information together, the same thing for transportation, local commerce and our restaurants are only the beginning and we can do the same thing for logistics. Emily that was just part of our interview with ubers ceo. Coming up, another exclusive. We hear from Steve Wozniak and get his thoughts on the transformation of the company he cofounded. And if you like Bloomberg News, check us out on the radio. This is bloomberg. Emily the imac, the iphone, just some products that became household names thanks to apple. But things are changing as they shift to services. We believe this is key to the Services Business and the opportunity is 100 Million Consumers in the next 34 years. That is the golden goose. Iphone is the meat and potatoes, but services are key to growth. Emily we spoke about the shift with none other than Steve Wozniak. We have been able to transition. We started with the name Apple Computer and as we moved into personal products we dropped the computer from our name. Being flexible and being able to shift with the demands of the market is very important for a modern ongoing company. So moving into services, apple is a huge company. Apple can only move in directions that will be very large in dollar volume. We have looked into other products like watches. Heck, that is about my favorite piece of technology in the world. When apple pay came along, apple took a lot of steps leading the industry. Things like touch id, all the others had to copy it. Now we have face id. We took the touch id and moved it into apple pay. A system that really protects your identity and credit card purchases everywhere and is so unbelievably easy, especially if you have a watch. That is important. Making life easy is what we were known for in computers. These were computers you did not have to be an expert to use. Now, apple pay, the apple credit card is even more secure. The looks of it fits apples branding apples branding is to have a lot of secrecy about what they are doing but also styling and beauty. Things like that. This card is just the most beautiful card. I dont even judge beauty that way. I dont, but it is. It doesnt even have a number written on the card. There isnt a camera that can see what your credit card number is. There is no way people in a retail store ever get your credit card number. It continues protecting your privacy, everywhere you go. What you buy shouldnt be tracked that closely, in my mind. We see that you bought a milkshake two hours ago. I dont want somebody coming up to me and saying that. Taylor you are giving us free advertising because you keep flashing your iwatch around. If i heard you correctly, said it was one of your favorite piece of technology. The iwatch when it came out, lets call it mediocre. Since then, it has really grown and become a key piece. Have they done a great thing, adding in the Health Services . Steve i am not a biggie in Health Services. But, yes. Everywhere i go, people are using it for Health Services and information. That is one piece of it. Not having to carry a phone, not having to use a phone even. We have the iwatch on cellular, i can text my wife, walking the dog. Apple pay is the best. I put my movie tickets on the watch, my boarding passes for flights on the watch. Do email, i get notifications all the time. I dont know, i use my computer in the hotel or at home to do efficient email and news, and then i move to the watch and pretty much skip the phone. Emily that was our exclusive interview with apples cofounders Steve Wozniak. We will have more on apple after the break, including how the iphone maker could be a big winner as india has a change of heart on Foreign Investment rules. We will also be speaking with huaweis Vice President and whether he believes President Trump will keep his promise to relax restrictions on the telecom giant. This is bloomberg. Emily u. S. Chipmaker global foundries is suing Taiwan Semiconductor for patent infringement, accusing them of using their technology. The case has the potential to disrupt the supply of everything from smartphones to pcs. Remember when President Trump hereby ordered companies out of china . If india gets its way, it may soon welcome apple with open arms. The Indian Government has eased investment rules in a number of sectors, a move they hope will further attract Companies Like apple. The iphone company is already poised to start sales within months and apple and its main production partner foxconn have been busy laying the groundwork for some manufacturing. We discussed this with mark gurman and David Kirkpatrick. There are plenty of reasons why apple has not been very successful in india. One of those reasons is because they have had a hard time bypassing laws from the Indian Government which require them to produce a certain amount of products locally and for a company with its vast supply chain, doing that is both a difficult and expensive process. So what this will do is allow apple to work around that, allowing them to open up an online store, allowing them to have a much deeper push into the region. Emily obviously, we are in the middle of an intense trade war, escalating on both sides which india could potentially use to its advantage. How do you think india could potentially benefit here . India has had very restrictive trade barriers for many years. There was a big drop and then a couple decades ago, but they still have had more restrictions than other major trade partners. So this is clearly an example of them recognizing they can take advantage of the moment and also serve their consumers. Look, apple products are popular globally and have not done well in india. I think this is a win for all concerned. It will be great for apple and other companies shipping into india, but the Indian Consumer pretty much has not bought iphones at all so this is a big deal for them. Emily David Kirkpatrick along with bloombergs mark gurman. Earlier this year, President Trump blacklisted huawei amidst escalating trade tensions, resulting in many u. S. Companies stopping business with the telecom giant. Now, President Trump said he would relax the restrictions but a reprieve has been doubtful. We caught up with the Vice President of Risk Management partner relations. The products we offer are superior products with high quality and all the features and functionality of all of the other flagship phones at a competitive price. And that is something consumers are missing in the u. S. , both in the smartphone area as well as other products and technologies we sell and support. Scarlet if you could be more specific on that. One big issue we have is the lack of Broadband Access for people in rural parts of the country, partly because companies do not want to pay for it. Why is it advantageous for Rural Communities in particular to use huawei gear . What is the sales pitch . Well, theres a few reasons. Frankly, theres over 24 Million Consumers in the areas that huawei covers. We provide technology and capabilities for operators in these regions. Because of our experience, many, many years of experience in rural china, building up the rural Chinese Technology or the communications networks. As we go forward, we are able to provide that expertise, both in the Product Solutions that we offer that are scalable, both to high levels to large customers, but also to the small customers. Along with our services and support that we customize based on the needs of the customers. The rural customers are a small Customer Base themselves and are limited in their funding and capabilities and resources, so we help fill that gap. Scarlet a headline that crossed a couple minutes ago is that u. S. Prosecutors are investigating huawei, potentially expanding their probe on criminal cases. Caroline this wraps into the issue of stealing intellectual property, which is the main accusation. I want to ask you, therefore, the new additional instances of alleged Technology Theft is this something that is new to you . How are you responding to prosecutors . Are you in day to day touch with prosecutors in the u. S. Government . I cannot really comment on ongoing litigation. I believe that informa