Earnings. And fedex drops amazon. The delivery giant says it will not renew its contract as the online retailer expands its own shipping and logistics game. We talked to one of the Founding Members of fedex ground. Came out with secondquarter results, investors looking for signs they will eventually become profitable. Did they succeed . I asked our guests. We see multiple ways that management can move towards. Rofitability we see nearterm drivers in the form of reducing driver and rider promotions and incentives. We also think they are things the Management Teams can do in terms of reducing market expenses and insurance costs to help move the company toward profitability in the near to midterm. Longerterm, we see additional upside in the move toward autonomy as being a key component in reducing costs and moving companies more toward profitability. Emily except that autonomy is just so far out. Tom, uber said the losses would decline next year. Both have indicated the price wars would subside. But why do you have different ratings on uber and lyft . Neutral on uber, buy on lyft. Tom first of all, thanks for having me. Look, our neutral view on uber really just comes down to limited visibility. You know, this is a Company Fighting a lot of battles on a lot of fronts. On one hand, they have the big Balance Sheet and the scale to probably outlast a lot of the players it is competing with. On the negative side, it is reacting and responding to a lot of the aggressive promotional activity from some of the ridesharing players and some of the Online Food Delivery players it is fighting with. It creates a situation where it is harder to get comfortable with forecasting the financials. We think it is probably pretty challenging for the Management Team themselves, to give investors a clear and specific and precise 12month view of where the financials are going to be. Our ratings are based on a 12 to 18 month time horizon and we think the visibility and the share gains in the north american ridesharing market are kind of over the edge. Market kind of take it over the edge. Emily so, asad, lets talk about food delivery, because on the call, uber has been focusing on the competition not just in ridehailing but in food delivery, seeming to indicate that is the super competitive part of the business now. Obviously, uber eats has competitors not just in the United States but different competitors globally. What is your outlook for uber eats and how it can boost or not boost the business Going Forward . Asad i think this quarters results really speak to just how competitive the food delivery landscape is, not just domestically, but internationally. Uber eats is competing with a whole host of competitors that are really wellfunded. Companies like door dash and postmates that have received large amounts of funding from deeppocketed investors like softbank who are not afraid to go after the market in a big way and seek revenue and userbased growth. But that is to the detriment of profitability in the near to midterm and that is hurting Companies Like uber which is facing so much pressure from investors to show a Clear Pathway to profitability. In the nearterm, we are encouraged by some positive signs we see. If you look at the take rate, which is the commission that uber takes on growth transactions within food delivery, we have seen that trend upwards over the past three quarters, sequentially. That is something we are encouraged by. We are also incrementally more positive based on signs of consolidation in the space with their rival door dash acquiring caviar. We think that is a positive development and when we hope to see more of. Rivals ubers lyft also posted, investors boosted by confidence. They posted 11 billion in sales compared to the average analyst estimates of 3. 2 billion. Enthusiasm was dampened by the decision allowing shareholders to sell earlier than anticipated. I got perspective from one of the earlier investors, oceanic partner tim sullivan. There is a stock unit plan that is causing this to be moved up from september 24 to august 19. So it is coming up and we are not selling. We are in it for the long haul. Emily why . We believe the managers are doing a great job daytoday. Obviously, the numbers were phenomenal. Were 810ctions million. So i think they are doing a great job not only managing expectations, but beating expectations. Cooy they did lose their and they are not going to replace that person. From a management perspective, is that a concern . No. I think john cymer has been the coo since the beginning. Emily the president and cofounder. Right. Having some become in at duplicate his effort did not make sense. Same thing going on at uber. Dara is trying to play more of a handson role. Endingdoes the lockup concern you and all of the shares hitting the market even as the share prices down . I think that is just the way things are these days. Public thats going ,ay shares hitting the market we have seen over and over with every company, the stock takes a pretty significant hit when those shares hit the market. ,eople are hungry for liquidity and when they have the opportunity, they take it. Emily lets talk about the future. Has been pricer wars, almost as long as they have been in existence, getting the lower price meeting lower revenue and less incentive for drivers, is there an end to that . I think we are still in early days and have a long way to go. But i think we will see less drivers and those drivers making more money. Emily why less drivers . The Business Model is geared towards fulltime drivers. You are going to see less of those in the future. Emily less drivers making more money, do the companies themselves still make more . The take rates go up and the Companies Make more money. Emily what does that mean for the competition longterm . Is it more about the brand . I have always thought there was room for a coke and a pepsi in the ridehailing space. Its incredibly disruptive, theres a huge market. And it is in early days, there still growth to come. There is room for both lift and uber lyft and uber. Emily coming up, another mass shooting and another white nationalists manifesto finds its way to the darkest corners of the internet. We look at what can be done to fight online extremists next. And if you like bloomberg news, check us out on the radio, on the app, and on sirius xm. This is bloomberg. Emily a pair of Mass Shootings in the u. S. Once again has the nation debating social medias role in these acts of violence. This is the third time this year a masked gunman has posted a murderers manifesto on the messaging platform 8chan. This shooter gun down at least 22 people in el paso, texas, posting his a racist screed 20 minutes before the first emergency call came in. Happened with the Mass Shootings in christchurch, new zealand and in the california synagogue shooting in april. Now, the founder is saying enough is enough, telling the New York Times quote shut the site down, its not doing the world any good. It is a negative to everybody except the users who are there and its a negative to them too. Weighed in,ump blaming mental illness, the press, video games, and social media. To discuss, i wanted to speak to someone intimately familiar to trying to clean up the internet. Ellen pao is the ceo of project include, and before that, ceo at dit where she made it red where she tried to clean up the site. There are many things to blame, and social media is a big part of it. 90, ornders were very maybe just lazy in allowing the platforms to be this free for all. We are reaping the results of it. People are yelling at each other, harassing each other, and have taken it into real life. Emily when you cracked down on speech at reddit, which was not easy, research in the aftermath what you did increased positive conversation. , andusers started behaving yet, other users simply fled to other sites like voat, 4chan, 8chan. Talk about the challenges of doing something. It is hard. A lot of people want to see this magic bullet. I shouldceo of reddit, take down all the content and that will solve the problem, but it doesnt. But it is important to do something. I dont have to solve the whole problem as ceo of my platform, but i should make my platform a place where people can actually have conversations, where real information outweighs fake information, where people are becoming a more knowledgeable and better at interacting with each other and not being led down the path towards white supremacy, misogyny, transphobia, terrorism. Emily lets take a listen to what the president had to say. He talked about online radicalization. Take a listen. We must recognize that the internet has provided a dangerous avenue to radicalize disturbed minds and perform demented acts. We must shine light on the Dark Recesses of the internet and stop mass murders before they start. Emily calling on the federal government to put pressure on social Media Companies to try and find best shooters before they engage in these acts. Is that realistic . I think it is hypocritical. He, of all people, should just stop radicalizing people. Stop the racist, white, nationalistic or supremacist, actually, talk that he does using the internet to spread those messages and enable those terrorists. Emily lets talk about that. How much do you think this is a trumprelated thing . He retweets rightwing extremists, he does not call for gun restrictions. How much is this really social medias fault for letting things get out of control . Its a mix, its always complicated. He has a huge role in spreading these messages and in normalizing them. But the media, both social media for allowing him to violate rules and amplifying him, and also journalists are amplifying his messages. Looking for those clicks and attention and pushing out stories that amplify some of his messages of hate. The former Homeland Security secretary had this to say about what he sees happening online. Take a listen. Particularly because of certain elements on the internet, a kind of intensification of the behavior we have seen over the last couple of weeks. Its not that people have changed, but they have been enabled, through the network, to find each other, and in some instances, to encourage or insight people to act on these impulses. Emily so what more can social Media Companies do . I think they can set of rules, and many have them, but actually apply them across everybody. Lets stop giving an exception to people who generate more clicks or engagement than others. Lets stop giving an exemption for the president , lets stop getting an exemption for people we think are going to complain the most for being taken off a platform. Emily in the past, you said twitter should been President Trump ban President Trump. Do you believe that . Going on, at whats it would be hard to say that he did not impact these acts, that it was not part of him inciting groups to target people from different backgrounds with different skin colors. It is a very convenient thing to blame the internet, but that does not solve the problem. We have to what is it we need to do. Its like, lets have these clear rules. You are not allowed to harass people, youre not allowed to threaten people, you are not allowed incentivize people towards violence or to have people aggregate. You are not led to that across different platforms. These are not rules that are new, these rules have been out there. These are the rules at reddit since i put them in there, lets justify them evenly. Up stop quarantining them when you have different rules for different people, it does not make sense. You do that with your child. When you make boundaries, you make clear rules, and when you make exceptions, it becomes confusing. Is a site in question today and we have heard from the founder calling for the site to be shut down. , he suggested ago some of these Mass Shootings were linked. Here we are six years later, nothing has changed. There are also businesses that provide services to some of these websites like quadplay cloudflare, which was keeping it up and repeatedly refused to pull it down. But they have, even now, decided to stop servicing 8 chan. The ceo statement from saying they have proven themselves to be lawless, causing multiple tragic deaths. Had not violated the letter of the law, they have created an environment that revels in violating spirit it s spirit. Twitter, for example, has a verified 8chan account. What are Things Companies can do to be stricter, even if it comes to the websites themselves . A big part of it is thinking about the reallife implications. Exactlye words arent doing something terrible alone, but you look at real life. You look at other platforms. All of this work coalesces in really terrible hateful behavior. So how do you think about that in the context of your contributions . Have you think about not necessarily solving the whole problem. So what if they go to other platforms, so what if they still go to aggregate, but you have done your best to solve the problem. Saying that it is too hard or not going to solve the whole problem, that you need to be up to track these people, its not worked. Emily ellen pao of project include. Samsungs galaxy note 10 comes with a new screen and storage, we talk about everything thats new. And later, with softbank earnings comes a glimpse of its massive tech fund. Thats next. This is bloomberg. Emily samsung held its annual unpacked event in brooklyn, new york, launching the latest addition to its galaxy note line. It comes as the company grapples with waning chip and smartphone demand. I talked to mark gurman from the event. The biggest thing is the mostme size, that is the impressive change, one of the only changes, visually. That really makes me want a bigger iphone. The iphone x as max is out at 6. 5 inches and you can really tell that you can see video more clearly, its better for gaming and productivity. Hopefully, apple goes in that direction. That is the most impressive thing alongside the new 5g model. Emily how will this impact sales . Obviously, there is competition from apple. There are lots of things going on with huawei. In general, the smartphone market, globally, is slowing down. My view is that this will do nothing to turn it around. This is not going to give new growth to the market. In general, people will not buy their first smartphone because of the note 10. People will not switch away from the iphone because of the note 10. What will happen is people on or people from older, other samsung phones will want to upgrade. Know, the combination of a lack of major new features with skyhigh prices north of 1300, thats a lethal combination for bad news. You cant charge this kind of prices without adding revolutionary new things and expect people to upgrade. Thats the real problem at hand, i dont see that changing because of the note 10. Emily he reported that when Apple Unveils its iphones in september, the update will be incremental. But there is a big design overhaul coming next year. Is that the same for samsung . Next year, there will be a bigger difference . I think it is that apple is in apple and samsung are on opposite schedules. They will be small, incremental years for the new iphone. The 10 s and 10 as max, those are some of the 10 s max, those are some of the smallest upgrades weve seen. The smsung seems to view 10 and note 10 devices this year as bigger, radical changes. So i dont anticipate big news from samsung next year. We will see if they keep rolling out new devices, i think thats where a lot of the market demand is coming for. Ol lets talk about that emily lets talk about that. The big, full phone had a lot of problems, which you discovered. Are these phones they are unveiling ready for prime time . Two words we did not here today, galaxy fold. But i do think the s 10 will be very different. So quickly, easily discovered him a fundamental flaws with the fold. What with the s 10 and i had time to play with it today and the other day. These things seem as solid apples solid as last years model. Emily quickly, microsofts ceo to spoke on stage. Tell us more about the partnership between samsung and microsoft. They really did not announce too much. They have had partnerships in the works for years now. They are expanding and opening up the phone app on Microsoft Windows 10 support the new phone. The note 10 will be sold at Microsoft Stores and the will be deeper integration. Not very groundbreaking, but just another notch on microsofts belt for working with more companies. Emily thanks to bloombergs mark gurman. Coming up, softbank holds First Quarter results that beat estimates. Masayoshi sons vision fund is shaping up to be a success. How it will impact the vc landscape. This is bloomberg. Hey im bill slowsky jr. , i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Welcome back to the best of bloomberg technology. It owes that success to its first vision fun. Companies like slack and door managed to offset declines. The company is getting ready to launch its fund this year. Discussed, we were joined by tom giles. Is transforming softbank away from this oldline Telecommunications Company where sprint,rity stake and he is confident that will get the approval it needs. As really position himself an investor and upandcoming in upandcoming technology. He has a 100 billion vision fun. A lot of that money has been deployed. He is starting to reap a return on it from Companies Like stock that went public this year. Door is another one. Business. Fund embarking on vision two. That will be launched very soon. You start to see new investments from that fund. 108 billion. He wants to position it as a cutting edge company as a savvy investor. Ev