33. 5 million filed in the last seven weeks. I want to dig deeper into these results, uber inching closer to a profit despite these bad profits. I want to bring in taylor riggs. Lets dig in. Shares spiking after hours despite not good results when it comes to ridehailing. The business boosted by uber eats. You gotwhat is key is the ceo said rides are rebounding in places like georgia and texas where sheltering in place rules have been eased. Recoveryaid he sees and this was the news i was waiting for, the cfo has said he does see profitability in 2021. Lyft had been aiming for those targets. All the notes said as it comes to lyft, they were not going to be looking at profitability until the first half of 2022. To get guidance about maintaining that target in 2021 is very key. That is when you saw the stock reverse from what was a 3 drop to what is an 8 gain. Let me walk you through some of the numbers emily go ahead. I wanted to mention the business also getting leaner as a result of some of the layoffs they are making. They announced laying off 14 of the company. The memo about the layoffs indicated they will be more. You wonder if this smaller and leaner uber helps get the company get to that profitability they are shooting for. Taylor you are exactly right. In terms of the cost cutting they have to do, i would note the magnitude of the losses they had in the quarter. If you look at adjustments, less than 600 Million Dollars. A little better than expected. If you include the writedowns on investments for the business, 2. 9 billion dollars of losses. That is triple the loss of a year ago. Stake, so yous a are going to see them and i know you will talk about this on your show. Offloading the bicycle and scooter businesses. They are trying to offload some of these assets as well as look at the cost cutting they are doing and the right down on the investment. This is having a staggering loss on their income, almost 3 billion. Again, furthering those cost because bring measures to see that profitability by about 2021 or so. Actually, weve got the ceo of lyme waiting to talk to us. What do you think about uber v ersus lyft . Is less exposed. Perhaps not as bad as some thought they could be. Do we have any clarity about whether uber or lyft is in a better position to whether the pandemic . Crushed it. Eats they were growing 52 . That was 300 Million Dollars more than expected. That really helped them despite a decline in the ridesharing business. This is the case where the diversification of the business, having that uber eats business is going to help them. Coming into this report, there was some concern given that uber said they had experienced revenue losses in january and february. Analysts were more optimistic on lyft, given they were only tied to the north American Business and revenue only started to decline in march. This might change the game now that uber eats is so much better than people thought. It really is that geographic and different business line that really could help them going forward. I will say the profitability could be a game changer given analysts thought lyft might not be profitable until 2022. Has, you could see uber more levers to pull. Interesting, all right, taylor riggs. Thank you for breaking it down. Resultsdive into ubers later. I do want to bring in the new ceo of lyme on this news that uber is leading an investment lyme into lyme and also offloading its own scooter and bike sharing business. Wayne is with us now. As are replacing brad bao ceo. You have this new infusion of capital after you had to lay off staff. What does this new money allow you to do . Thank you for having me. Today is a big day for lyme. This infusion of cash means we will be able to whether this downturn and have the capital to come back and bring it to more cities when we do come out of this covid19 crisis. For a lot of our early investors. Wayne, you worked at uber for five years. I am curious about them offloading to you. If it did not make sense for them, why does it make sense for line . As uberhing, i see this making a bet in micro mobility. They are bringing the jump assets onto the lime platform where we have a leading position in micro ability. Are going to get access to the same scooters and bicycles that matter. All of the access and products and investment into a platform that is emerging as the winner in this space. Emily is it a winwin . You have retreated from a dozen markets, you have caused or wound down the business in other markets, all but south korea. When are you planning to reopen . What does that look like given the uncertainty . We have actually relaunched in a dozen or so cities. Remarkable. Is not only that, i think as people exit covid19, they will be looking for a safe way to move around the city. Micro mobility is open air single passenger. If you want to move around a city while observing social distancing, there is no better mode then micro mobility. Korea, where we have been this whole time, one of the harder hit places. It is hitting alltime high numbers today. In the United States, we are seeing trips that are twice as long, and people are taking scooters all the way to work. Shelterinplace, there is an opportunity for micro mobility. They will have their cities and because we are a relatively small part, even if 1 go from micro mobility, the overall marketplace for scooters and bikes. Emily what is your plan to keep scooters safe . You have multiple people on these things. This is probably never something you would have to think about. It is relevant. How do you ensure this is a safe option . That is a great question. Warehouseerhauled our operation. We brought in experts. We sanitize every scooter, we make sure that when it is out, it is in perfect condition. As passengers use our scooters, we are asking everyone to observe local guidelines. Wash your hands, dont touch your face. The number one way covid19 is spread is human to human contact. You are by yourself, open air single passenger. Is probably one of the safest ways to move around. We see that in markets that are opening up. It is not just people coming back. New people who never gave scooters and bikes a chance are trying it because they want to move around in a safe way. To solve their transportation concerns. Emily Many Companies are reinventing the way they do business. Do you see other opportunities . What are you throwing around the room in terms of your brainstorming sessions about what you can do to meet the needs in this new world . Food delivery, for example . I think the biggest e isrtunity for lim telling the story of micro mobility. Most people had never taken lime before. People delivering more groceries, working out at home. One of the key ways is if i dont want to be next to somebody, i want to be traveling while observing social distancing. How do i do that in a cheap way . A safe and much more environmentally friendly alternative. The key thing right now is stay focused on micro mobility. This is a moment. People will consider this. If you look at the numbers out of china, they are starting to come back. Business isic bike exploding. People are making this calculation, saying this is a great way to move. If you look at the way cities have changed, paris is going to put in new bike lanes. N, new york, they are going to legalize scooters. Recognizing the value and changing infrastructure to meet this moment. This latestng into onnd of funding, valued lime half 1 billion, less than half of what the latest fundraising round valued you at last year. Been lesshave optimistic about your Business Model given how unprofitable it has shown to be. Is this a smaller Business Opportunity . Certainly you see one opportunity. Is it smaller than maybe what you thought it was a year ago . I dont think so. It is bigger than ever. We are coming in at a lower evaluation. We are not the only company in facing ant that is lower evaluation. The more important thing is this round of funding will be enough to whether whatever storm is ahead of us. You are asking about profitability. One of the things we have been focused on is building the business. We were improving profitability every month going into winter. We have a seasonal business. We hit our highest margin in our history. We were just about to become profitable and then covid19 hit. Our will allow us to replay 2020 playbook and i have every confidence that with this new funding, lime will be cash flow positive in 2021. Emily given the uber relationship, do you see more opportunities to partner and Work Together . I do. I have learned so much from my time working for dara. Dara talks about the platform strategy, ensuring uber is a platform for all forms of transportation. As part of this investment, it is about deepening that connection, to find lime scooters on the app globally. We are going to deepen that relationship over time. That is a huge sign of ubers trust in lime. Youve had a couple of significant rounds of layoffs so far. Will we see more . Emily, it has been really tough. Certainly as somebody who had to say goodbye to a lot of good friends, it has not been easy. We are not the only Company Going through a lot of hard choices this year. Based on this new round of funding, expect we will have any new layoffs. I will say this, we take these things seriously. As we look to the future, our goal is that this funding will get us to profitability and we wont have to make these hard choices. And what about the competition . There were so Many Companies betting on scooters. We had to believe not all of them would survive. The consolidation is happening. Do you see more consolidation . I definitely do. Of1 will be a year consolidation. It is a great thing. Covid19 is creating lime, we are bigger than our competitors and now with jump on the platform, we will be even bigger. When i look at the micro mobility space, 2021 will clarify, we will be one of the only companies with the funding to compete, the biggest ,latform, the support of uber and integration with google maps nobody else has, and we have the best brand and hardware, fromding the best hardware jump, which we are excited to operate and scale. They have done a great job. All of those advantages are going to be compounding nic 2021 and i see 2021. To talkayne ting, good to you. We will watch to see how things play out, and you in your new role. Thank you for joining us. Thank you for having me. Emily coming up, what is a carmaker to do and it cant make cars . Tesla is not making any cars around the world. We will tell you why. This is bloomberg. I think possessions weigh you down. They are an attack factor. Billionaire, youve got all this stuff. What are you going to do . They that is elon musk on joe rogan experience podcast explaining why he is going more than a little marie condo. He has put two houses on the market as tesla is not producing any cars around the world at this moment. Bloomberg is reporting tesla has halted production at its shanghai china factory and we know production has been halted at its headquarters in california. Joining me to discuss is the thank youartner for joining us. We dont understand yet why the factory in shanghai has shut down. Tore is reporting it is tied supply issues, equipment issues. What do you think is the reason . Tesla has a complicated supply chain. They tried to set up this new supply factory in shanghai. They did a good job getting the government to get behind them. They have used the same suppliers theyve used for their the plant innd shanghai to produce the same goods. Common or has a lot of commonality. Withve challenges production out of mexico, out of the u. S. , where they are shut down with covid. Likely that is creating a problem. No build parts. It is too hard to retrofit them. A no buildher hit part or they have an internal problem that is going to delay their ability to produce as efficiently as they want to and they realize without the supply then, from mexico and United States over to china, they have a challenge to deal with right now. They are a little bit blind ifly this makes me wonder and when tesla restarts production in fremont, california, can they just start back up . Or could they face supply issues here given the pandemic is probably continuing to disrupt supply chains we dont realize . This is the canary in the coal mine for the Automotive Industry. Just in time for production. Feed supplyy will chain tesla. We are hearing they are targeting a restart on the 18th. If they do that, we dont know when mexico will be back up and without a clear indication, it will be hard to see how they can actually build what they want to in a controlled and organized way. Theres other work in the United States to get supplies up and running. I am assuming the supply base is impacting tesla right now. I was on a call this morning where the organization ceo, they are really trying to coordinate and get things done, so there is clear regulations from the government in terms of what needs to be done to open up. There is a call tomorrow morning the Mexican Government government is having with the same suppliers. You dont have enough parts to just run. You have to have suppliers running. Emily how would you compare teslas position to other automakers . Subject tokers are different issues right now. Is tesla in a better or worse position . Is this an opportunity for a competitor to make some gains on tesla . Ambrose i dont think it is an opportunity. The seraph team looked at this and we think they are in a good position. Elon musk made a commitment to move a lot of the supply base to other plants or suppliers in china. I think they will be able to move faster. The entire Automotive Industry is having problems. The systems are not set to deal with this. The Computer Systems are not configured to deal with this. As we try to figure out what is wrong, we have to run tools. We have a side company that looks at what is going on, what materials you have, what do you need to build that car . We are looking at that now and overlooking where you have covid shutdowns. There are a lot of red lights right now because we dont know what is going to be happening in mexico and some of the states have not produced clear regulations or authority for automotive suppliers to restart. They need to restart almost a full week before. Emily love the metaphor there. Ambrose conroy, thank you for sharing your insight with us. Zynga up, talking about gaming. The one industry that seems to be somewhat pandemic proof. We will speak with the ceo next. This is bloomberg. Emily welcome back to bloomberg technology. Headlines rolling in from facebook, saying in a memo to its employees that the company does not see opening offices until at least july 6, and also telling employees they can work home through the end of the year, yes, until 2021. All these Companies Developing different return to work strategies. We wonder what that means in terms of the impact on business, but facebook saying it does not expect offices to open until at least july 6, and employees can work from home through the end of the year. Meantime, i want to move to gaming, a business that has fared quite well. Reported its best First Quarter indicator this week. I want to bring in the ceo, frank gibeau, who joins me on the phone. Break it down for us. Obviously your games are social, mobile, and mostly free, which is what people want right now. What kinds of trends in activity are you seeing . Frank right now, as people are sheltering in place, they are really turning to games like never before. They are finding that games are incredibly engaging. It is a refuge from the stress. At the same time, it is a compelling way to stay socially connected with friends and family. It is breaking down the social distancing people are experiencing now. Saw was intrends we our First Quarter, it was normal in terms of performance. Toward the end of march was when you started to see the effects of shelterinplace. We saw large jumps in audience engagement, the number of times people play the games per day, how often they will be playing and how long, and that has carried into april strongly. You see a large audience gain in april across all of our portfolios. Many Game Companies are experiencing this. Our games are free to play and largely driven by in app purchasing, but we also have a sizable add business. There was a bit of a compression , but fortunately we were able to offset some of those losses by extending engagement curves of our games. Therefore, we saw less of an impact in our advertising business then more traditional networks. Emily there is obviously concerned that the advertising business will continue to be hit hard as the economic fallout continues. You did bump up your outlook, but not as much as some investors had hoped. Why do you think investors were not as optimistic about the results as, perhaps, you are . Frank i think if you look at how we guided the year for 2020, we recognized that the second half of the year still has a lot of uncertainty relative to economic downturn, how fast shelterinplace is lifted, and so our guidance inc. The strong q1 that we delivered. It also incorporated strength in q2. How we were going to plan the year, we would start to assume the business would see normal engagement rates at the second half of q2. That was also a situation where if shelterinplace lasts longer and engagement rates stay high, obviously we would change the guidance because we would start to see that performance continue, but we felt it was important to give a basis to our investors on how the second half would unfold. Emily you have been in the gaming industry a long time. You worked at Electronic Arts for two decades before coming to zynga. You have seen a dotcom bust in a recession. Thewould you compare what industry is experiencing right now to what you have seen in the rest of your career . Frank clean have never seen anything like this. I frankly have never seen anything like this. The Interactive Entertainment business is in a place right now to provide entertainment for people right now. Just an audience like this across the board globally is unprecedented. We have experienced economic downturns before, like in 2008, and what we find is that video a very appealing source of entertainment when times are tough. If you look at the entertainment spectrum, free to play mobile games are very efficient. If you they can about what it costs to get into a game or get into if you think about what it costs to get into a game or get i