Exclusive interview with bloomberg news. Cooks in the kitchen. We will look at the now competitive space of rental kitchens. About a startup called virtual kitchen. First, to our top story. So apple is considering bundling its Digital Services including news plus, tv plus, and digital apple music. Gainis seen as a bid to more subscribers. The tech giant is already experimenting with this kind of approach, offering free apple tv plus subscriptions to student users of apple music. Through. K me what are we bundling and why . Mark thank you for having me. Like you said, apple wants to bundle together different paid services. They have had apple music since 2015. They came out with four or five new ones across 2019 this year. Cheaper too make it subscribe to them by lowering the price if you subscribe to multiple. Right now, apple music costs 10. News plus costs 10. If i have storage, i pay 3 a month. There is apple arcade for five dollars. There is apple tv plus for five dollars. Altogether, it adds up to 40 or 50 depending on how much storage you have. Imagine being able to get everything from aba five. Discountive dollar 10 5 10 discount per month. That will generate recurring revenue because people will want to subscribe to Additional Services and save money by doing so. Taylor i get that, except that we learned with cable and tv that consumers, millennials do not like bundling. Mark thats fair. Era wheredling people are subscribing to different services. But all of these are available on your phone coming from one specific company, so its a little different in this case. Taylor the timing of your reporting is not suspect. It comes a few days after disney s incredible launch. Quite a success for them. Is apple playing catchup . Maybe got caught on their heels a little bit . Mark i dont think its related much, actually. I think that this is something they have been working on and considering for at least a year or two. They knew they would be coming out with these services and it was only a matter of time before they bundled them together. The apple news plus agreement between apple and publishers signed around march or april of 2019, about six months ago. Clause that a allows apple the right to bundle apple news plus with Additional Services. That was the first hard evidence this was something apple was going to do. Thats what our story is all about. The clause says apple will be giving a smaller share of the news profit to publishers if they do indeed bundle it. Have lesss sense, you money coming into apple, it will be at a cheaper rate. Taylor so then what are publishers and advertisers saying, because this is one of the instances where there is not targeted advertising . This may not be as beneficial as targeted advertising on a google or a facebook. Theirapple in general, privacy mantra is very strong. They are not going to allow publishers or other third parties they work with on these Subscription Services to do any sort of data mining and get information on their users. That is pretty much never going to happen with the current apple. I dont imagine that ever changing, no matter who is in charge of the company. It is something so core to them. They have really been leveraging it in terms of their marketing campaign, too. In terms of news plus with advertisers and publishers, news plus has been pretty much a failure compared to other services. They had 200,000 subscribers on day one. They have not had many since then. This thing is not something a lot of people are subscribing to. Personally, ive noticed that they have been upping the marketing for it on the website and twitter, so it seems like something they are dedicated to and they are planning on turning around. It has not been the success i think they may have been expecting in march when they announced it. If you think about the price, 10 is not a lot for what you had access to, but it is a lot compared to their other services. Thats the same as apple music and double the price of apple arcade and apple tv plus if you are indeed paying for it. 10 could be a lot for a lot of people for that, and it will be interesting to see if they plan to cut the price, to up the subscriber base, or just bundle it with the other services. Taylor all things apple and boosting that services revenue. Switching from apple to another big tech company, uber. New jersey just hit uber with a 650 million employment tax bill for misclassifying drivers as independent contractors. New jersey considers them employees. To further explain, we are joined by eric newcomer. Who is right . Where is the disconnect here . Eric this independent contractor issue was a huge risk factor in the risk factors when uber went public this year. The legal system is so slow to play out in the lifecycles of these companies. Uber, it feels like it took forever to go public. The idea that the independent contractor issue wasnt resolved was shocking. Thats the reality. Thatornia passed a law makes it much more likely that uber drivers can lose their independent contractor status. This is a very live issue and it is a big threat for ubers Business Model. Taylor you brought up california. New jersey, california, what other states are looking at this . Eric you know, its hard to count the mall. Count them all. You have all these court cases that have played out. Uber has tried to force those into arbitration. You also have states can set their own labor rules. So, even if a state like massachusetts had the same avc test that was taken over to california, there is a lot of legal wonkery here, but it but every state can look at this and thats why it remains a big threat to uber. Taylor another big story we are following when it comes to uber is the former ceo selling about 711 million of his shares. Are investors nervous that hes selling out . Eric i think savvy investors would expect it. He has been pushed aside. He remains on the board but this isnt his company. Its very much been a turnaround story, and he is building an adjacency company in cloud kitchen. Its not surprising if he wants to cash out. He has already sold shares to softbank. I dont think its that surprising. But any selling is negative, even when there is a logic to it. Taylor when do we expect large, institutional, longterm investors to come in and stabilize the stock . Eric i think as long as people are worried that the losses will drag down the top line until uber can convince people that it can operate profitably and continue to grow the market, if market. If investors are worried that ridesharing is not that much exponentially bigger than the existing transportation, taxi industry. Without the subsidies, thats going to worry people. So i think as long as you have the Business Model risk and coupled with stuff like independent contractors, and softbanks portfolio doing poorly generally, i think people are going to be worried. Taylor Bloomberg Technologys eric newcomer, thank you for joining us. Eric thank you. Another big tech late lateday, text story thursday, tech story late thursday, some of the worlds wealthiest investors are moving their money, and that includes Big Tech Companies. We have a flood of information coming in. It will be really exciting tomorrow to look at it all in aggregate. Uber was actually the most bought Company Despite the slump. Travis kalanick himself has been selling. Buying into it . Tiger global, known for its private market bets as well. We also have them buying into this quarter slack and beyond meet, more Ipo Companies for this year. Who else do we have that is kind of a hot stock . Harvard management is flowing into facebook as well as tiger global. So we see some activity there. People seem a little bit mixed on apple and google. Warren buffett trended down on apple a tiny bit, nothing to be super alarmed by. But alphabet itself, i would love to see what all these numbers look like in aggregate because it seems like Hedge Fund Managers have a mixed view on what the value is. Taylor i like that you brought in warren buffett. When he originally bought into apple we were all surprised given its a tech company and not a traditional value company. What do we know about his stake in apple and where it stands . He trimmed a very little bit. He usually tries to stay away from Big Tech Companies he doesnt understand, but his stock pickers have been warming up to them, including amazon, which he wishes he bought much earlier. Warren buffett himself has been holding onto more cash and reducing equity exposure. Not super surprising. Stance on the Banking Sector was a little more surprising than what we saw with tech. Taylor thanks for joining. Coming up, google is changing its Advertising Technology to better protect peoples privacy, but will it be enough . We discuss next. This is bloomberg. Taylor the iconic motorola razr is back, but not how you remember it. Motorola is rebooting its flip phone. Its a 6. 2 inch smartphone with a foldable display. The companys executives say they are confident in its durability despite competitors struggles, compared to Samsungs Galaxy fold. The new razr is the most affordable model in its category. Other devices so far are more like foldable tablets. The phone costs 1500 and will be available for preorder in december, arriving in stores in january. Google said it would make changes to its Advertising Technology to better protect peoples privacy. That follows scrutiny by watchdogs. Starting in february, google will no longer divulge information to participants in its ad auctions about the type or website or page that an ad could appear. We are joined by the Senior Vice President of Public Policy and government relations. Lets first talk about the eu. They have been more strict than the u. S. When it comes to data privacy. What are some takeaways the u. S. Can glean from the eu . I think this recent action we shows that google can always play a little bit of the shell game when pressure is on them to dodge scrutiny. The major scrutiny that has happened in europe over the last few years is the antitrust ruling against google. We are now seeing in the United States lots of new antitrust activity to try to catch up with europe. I read in the news today that the state attorneys general have actually expanded their investigation beyond simply Advertising Technology, which is what the eu was in response to the google news today. They are expanding into search and android. I dont think you can have two giant markets like the eu and the u. S. Out of sync for long and thats why you are seeing the u. S. Really play catch up with antitrust issues. Taylor you are at yelp. Why take on google . When a mom does a search for a pediatrician today on google, rather than being matched with the best information from across the web, today, she gets siphoned into this lowquality information that google has collected. It doesnt go through the same vetting. Thats not good for the mom. Its not good for competition on the web. The only entity its good for is google. They have begun to sort of put their hand on the scale to protect their dominance in general search. It is starting to harm consumers. Yelp is involved in these issues because number one, it is competitive. Google, by putting their hand on the scale, creates a competitive threat. Ultimately, is it it is about consumers. Local searching is the most common thing we do on google. Taylor has it negatively impacted your business at yelp . Yelp i am proud to say has weathered the storm pretty well. We try to fight to have another day kind of in spite of this. We are i think in good shape. I wouldnt have worked here for 12 years if i were not optimistic about the business. But its not even necessarily about yelp or google. Its about the fact that there are so Many Companies and innovators that are sort of being deprived of the ability to create new businesses on the web because of google. Because of googles behavior. Taylor what about all of the other Big Tech Companies . Facebook and amazon, are they as big a threat . Its a great question. I dont think as much about facebook and amazon because i will say personally i am somewhat less concerned with facebook and amazon because they are portals in and of themselves. When google launched, it presented itself as a turnstile. We will match you with the best info from across the web. Its hard to decouple the rise of google from the rise of web 2. 0, User Generated Content services, social media services. Google was instrumental in kind of unlocking all of this cool innovation on the internet. The majority of traffic going to google today is actually terminating on google or going to googles secondary pages. They have kind of done a 180 in their Business Model. Taylor what are you doing at yelp to keep Customer Data privacy safe . The good news about vertical search services, yelp is considered vertical, specialized search engine. Is that you dont have to have a ton of creepy info about a user to serve up a relevant ad. If someone is doing a search for a dentist in san diego, you yelp doesnt need to know a ton of info about that individual. They just need to go to the san diego bucket and the dentist sub bucket to fish out a relevant ad. I think thats one of the advantages of having robust competition on the web. You can have smaller competitors and a more pluralistic web where people can optimize for privacy and do better by consumers. But if you are putting all of the power into the hands of one or two companies, you are going to trigger these types of privacy concerns. Lowe, yelps luther thank you for joining us. Coming up, former ceo uber employees are taking on travis kalanick. We bring you the story next. Taylor a few former uber employees have created a new kitchen. Rtual entrants of the into the crowded space of renting kitchen space to restaurants desperate to satisfy demand from hungry homebodies. Travis kalanick, ubers cofounder and former chief executive officer, runs a competing business, and uber itself highlighted a cloud kitchen piloted a cloud kitchen, creating tension between former and current ceos last year. Joining us to discuss is the ceo of virtual kitchens. Great to have you. As we know, hugely crowded space. How do you stand out . Its a pleasure to be here today. Food delivery is really popular. Consumers continue to love the convenience of it. We talked to a lot of restaurant tours, and it turns out, it is a challenge for restaurants that are built for dine in first with a lot of seating. With virtual kitchen, we are seamless ande it possible to expand delivery in a simple way with low cost. And it brings more selection and great food to more customers. Taylor you left uber in part because you saw the strain delivery apps were putting on the restaurants. How are you solving for that strain with your new virtual kitchen . Absolutely. So restaurants are really built for dine in first. The food menu packaging is really built for dine in. It turns out for delivery there is a set of whole new challenges, similar to what brickandmortar saw 10 years ago. We build Space Operations and offer help on staffing, menu, and Site Selection to help them do the best delivery product possible, bringing it really close to customers. Taylor every analyst on the street talks about how capitalintensive this is. This business is. Can you give us a sense of how much cash you are burning through to get through the first few years . Absolutely. We are taking an asset light approach. We think it is a massive space with a ton of problems to be solved. Some companies are focusing on just the staffing aspect of it. We decided to focus on taking the best sites, leasing them, and building them out to be the most seamless for delivery and the most plugandplay for our top restaurant brands. Taylor you work with a lot of partners. Uber eats is one of them. How is that relationship . So the delivery apps are really popular and they have a lot of the drivers and careers available already to help through the delivery. We work with them and they do the delivery part of it. Its really plugandplay. You know, i think this is one of those rare situations where its win, win, win all around. Its great for restaurants to expand seamlessly. It brings great, highquality food to customers in a fast way. And for the delivery app, its about expanding the selection and really delivering the best experience possible to their customers. Taylor how are you using data to forecast demand ahead of time . Yes. Drawing from my experience on uber marketplace, there is demand patterns you can use software to figure out. Inventory, holiday and weekend patterns, and we want to make that available for restaurants so they can better plan inventory and better serve their customers. Taylor do customers really care where their food is made . I dont think so. I think really what customers care about is the high quality product and the taste of the food. We really try to put our locations as close to customers as possible. In turn, they get high quality , warm, fresher foods in a really fast time. Taylor what was your biggest lesson you took away from uber that you are now applying . We try to be restaurant forward and customer first. I spent a lot of time talking to restaurants about how their businesses have shifted due to delivery. They told me about five years ago, it was 5 10 delivery, and now its in some cases 60 . That shift is really dramatic. They did not really set up their business for that. We are here to help them and listen. Taylor world of shared kitchens. That was virtual kitchen ceo ken chong, thank you for joining us. To fixup, using ai trouble tickets. We speak to the ceo and their investor at Kleiner Perkins. That is next. This is bloomberg. When it comes to using data, everyone is different. Which is why Xfinity Mobile is a different kind of Wireless Network that lets you design your own data. Choose unlimited, shared data, or mix lines of each and switch any line, anytime. Giving you more choice and control compared to other top wireless carriers. Save up to 400 a year when you switch. Plus, get 50