Diego. That is ahead on bloomberg west. To our lead, ubers fight. They say drivers use it on their own terms. Thats why there is no typical driver. Thats why three people can never represent the interests of so many different drivers. A lawyer for the plaintiffs did not immediately respond on the filings, but joining us now is my cohost for today. Also, ubers outside counsel from los angeles. Lay it out. What is ubers position . We had drivers who filed the case. In a classaction, they have to represent everybody else, same situation, have an identity of interest with the other drivers who they want to represent as named plaintiffs in the class action. The problem is that they do not resemble those other individuals. As you mentioned at the top, we submitted 400 sworn declarations from drivers across california. It is compelling. The individuals tell their own stories. One woman says she wants to be an entrepreneur mom so she can spend time with her daughter and work when she wants, drive when she wants, take time off when she wants. That theme through these declarations, the words of that drivers of themselves, the independence, autonomy. One driver says i do not want this lawsuit to go forward. It will interfere with my business. The classic classaction formulation says there has to be commonality and common issues that predominate. It is the essence of what the drivers like about uber, you cant have that, and you can t have a classaction. It would be bad for many of the drivers who do not want to change the way the system operates. Emily have you heard from the plaintiffs in response to this latest motion . We have not. This was our response. They will get a chance to reply. In their opening brief, they submitted no declarations from other drivers. Its really just these three people. They have not come close to showing that they can meet the tough standards for class certification. Emily david, you are an uber investor. They are asking for a guaranteed minimum wage, compensation for mileage, right to pay into social security. Why arent they entitled to those benefits . If uber loses the lawsuit, we will provide them with the technology. I think i am one of the top 10 users of uber. I dont want the service to change. When i get into an uber, i know its the drivers car. These people are independent contractors. Uber provides a convenient dispatch system and reputation system. Emily ted, this is a debate happening across Silicon Valley, the sharing economy companies. Two companies have started the process of turning their contractors into employees. One ceo has said that our shoppers require training and supervision. You cant do that when they are independent contractors. Dont drivers need training and supervision . Ted . If you look at ubers track record and how riders love uber, they do try to provide the services they want. That can be done to the independent contractor process. It is being done. The drivers themselves uber did research that foreshadowed what the drivers said in their sworn testimony, 87 of drivers want to be their own boss. They want the flexibility. That is better for riders because supply and demand can match up. Thats what makes it Work Flexibility and autonomy. Uber is providing a terrific service through this approach it is taking. Emily this debate the California Labor commission is having, is uber a Transportation Company or a Technology Company . Uber is a marketplace for transportation services. It is a question about where the Technology Ends and the service begins. I tend to think that they are technology companies. Its possible that it has to catch up with the reality of the ondemand economy. Emily ted, what is your answer . Technology or Transportation Company . It is a Technology Company that provides a mobile app that drivers and riders can both use. One driver looks at uber as his employee. It is providing a service to him. As david points out, this is a new economy and new approach and so uber is providing a technology that allows entrepreneurship, a Great Service for people to get rides, drivers and the like. It is a Technology Company, and the independent contractor system is really important to making it function smoothly and wonderfully as it does. Emily outside counsel for google. Thanks for continuing to follow the story. Youre one of the top 10 uber passengers . Any extra benefits . I get to reclaim that time that i was driving. I can do something in the back of the car. Somebody created a mobile app. You login with your credentials. It is an opt in system. Emily greylock says investors are taking on a lot of risked. My interview with the two partners after the break. Is this the computer chip of the future . The latest development out of ibm. Can tmobile undermine sprint. Why legere says it has already happened. Emily a breakthrough in chip technology. Ibm has unveiled a tiny computer chip with four times the power of what is available today. It is in the testing phases. Could this be the breakthrough the industry is looking for . I want to bring in cory johnson. Is this a game changer . The design is interesting. They use some different materials. Chips are made entirely of silicon. The way they are made is different than some of the cuttingedge chips out of intel. They are using extreme ultraviolet for the masking, which is the cutting into the chip to let the transistor happen. The test samples have yielded a chip that works at smaller and faster levels. Emily could we see this in every computer . First of all, its not new. If you go through filings today, you can find nearly a Dozen Companies using the Technology Already in their chipmaking processes. What ibm is demonstrating is a thinner, faster usage. A new way of masking in combination with that. They have a long way to go to prove its costs and efficacy of making it. Emily cory johnson. Thank you. I sat down with greylock partners, david sze and john lilly, and ask if companies are taking on too much risked. There is a lot of money and optimism thats causing pricing to be higher, causing expectations to be higher. I think we are asking to take higher risks since 2000. I believe mobile is a fundamental shift and is only in the third inning. You can see how that is changing the world for businesses that would have been terrible businesses in previous generations, now enabled by mobile in ways that werent possible before. You can also look at Public Companies right now as a benchmark and say its not clear that they are overvalued if you look at the multiples. So, there is a bunch of mixed signals that lead to an environment where risk is emily would you use the word bubble . Mr. Lilly we make our decisions on a micro basis. We feel the prices we are paying are higher. We are being asked to take on risk. We are finding great entrepreneurs too. It doesnt matter too much if youre overpaying, but you have to keep your eye on the target. Emily it doesnt matter if you overpay . At the early stages. Emily what do you think of what they said. Im shocked that investors want to pay lower valuations. When i talk to friends of mine who are starting out with new companies, they tell me its not easy to raise money when you dont have traction. Those aspirational raises are harder. My conclusion is not that Silicon Valley is frothier, but if you cant demonstrate traction, everything is so benchmarked. It becomes harder. Emily you think we are in a bubble . Companies taking on too much risk . Many of these companies will not be able to sustain these valuations. The short answer is that we are not in a bubble. Some Late Stage Companies wont pan out. I dont think any investor is guaranteed a riskfree return in Late Stage Companies. There is an argument that Late Stage Companies were under priced for a long time. Emily interesting. John lilly thinks uber can be a 500 billion company. Would you agree . It depends on how you see the market. If you see their market as replacing driving and car ownership, the answer is yes. I told you in my own case that within a week of using uber, i stopped driving. Im on the bullish side of this. Emily stay with me. Make sure to catch my full interview with david sze and john lilly right here on bloomberg television. Yahoo offers cash prizes. My interview with john legere is coming up. Emily it is time for the daily byte. Todays number is 56 million the number of Fantasy Sports players across the United States and canada. Yahoo sports rolled out a new fantasy sport offerings to allow fans to compete with friends for money with daily and weekly contests. We spoke with the Vice President of products. We have been in Fantasy Sports for years. Users spend 30 billion minutes a year on it. While traditional Fantasy Sports makes up a significant percentage, we are seeing emerging growth with daily fantasy for competition and gratification. We felt it was a great opportunity to introduce a component. Emily the new offering will integrate yahoo sports realtime news and scores into one experience. There are rivals. We asked ken what makes them unique. We have a history over a long span of time. Year after year, we improve. When you combine the fact that fantasy is ultimately a social product, where youre playing with 1012 friends that you may have played with for years, and now you can compete with them on a daily or weekly basis makes it all that much more competitive. Emily betting on sports is illegal outside las vegas, but Fantasy Sports get a pass. They call it a game of skill. Tmobile is tackling its narrow user gap with sprint. They gained 2. 1 million customers. The Ceo John Legere says tmobile may have already beat sprint to become the thirdlargest carrier. Legere we are adding one million customers every quarter. We have just under 59 million customers. You can play that out forward. I am pretty sure we are bigger than sprint. Emily tmobile shares jumped today. Sprint fell 8 . Another opportunity in tmobiles future could be a deal with dish network. They have been in slowmoving talks for years. I asked legere about the possibility. Take a listen. If i was dish, i would be panting at tmobile. We have a lot of options that we can do, including what were doing now, and doing it well. Emily they are expanding its roaming plan. They are Offering Service in canada and mexico. David joining me again. John legere, a fun guy to watch. What you think of that guy . I dont know him. I like that he speaks his mind and is out there competing vigorously in the marketplace. That is the way business should work. Emily he is tweeting, periscope there was something about drinking about the ceo tweeting back at him. I tell you what happened. Weve been out there in the marketplace. When we got traction, adp sued us to try to slow us down. Emily adp is a big payroll company. You guys have been partners, but a strained relationship because you compete. There are parts of the relationship that were competitive because they offer hr services and benefits. We cooperate with respective payroll and we resold their payroll product. As you know, we recently raised a 500 Million Financing round. They saw the fast growth. A few weeks ago, they decided to block our acces to their site. When we sought to bring this to light. Emily they said legal action was not undertaken lightly and only came after adp try to resolve these issues. If they want to meet tomorrow and resolve this, we can. Its hard to do that when they are suing us for defamation. It means they dont like what we say. Theyre not suing us for the underlining assertions they made against us. Adp has been out there spreading fear, uncertainty, and doubt about us. They want to create fear about a new market entrant. Its incredibly ironic. Youve faced other disputes. How you plan to deal with this. Quickly. This is part of a larger issue. The way the old economy fights back. When you have a new economy company, with an innovative product, they try to restrict choice. We saw this with tesla. We are seeing this in uber. The way for consumers to win is to express their opinion. Feel free to tweet about this. Emily ceo of zenefits. Always great to have you on the show. That is it for today from san francisco. Dont forget to catch my full interview tonight at 7 30 p. M. Eastern and pacific. Tomorrow we are live from comiccon. I will be joined by playstations head of research. Its all about the new star wars movie. We will have everything you want to know. The following is a paid program. The following is a paid program for a times music collection. Announcer it was the dawn of a new age filled with long hair, bell bottoms, tiedied tshirts and new attitudes. Innocence gave way to a new consciousness about ourselves and the world we live in and there was a new music for the new times. Dont you want someone to love