Violates state law. Has simply waltz into new york, and set up shop, while defying every law whose purpose is to protect the people of new york. Lyfts ceo will join me here. Lyft, andft, wise it sparking so much controversy . If you see a giant pink mustache driving towards you, dont be alarmed. Liyfyft car. It is a the passengers badly, the driver is smiling. These let you use app to get a ride. Owning a vehicle is the secondhighest household expense. There had to be a better way to collect connect people who needed a ride. Opening up, enter your location, and a car shows and. Shows up. Than a black sedan, or a taxi, and it helps put cash in the pockets of regular people. Between main. Lifts inrted offering his car. He can bring enough to do under dollars a day. You can really be able to help out. A lot of people i need rides. You get to be there for them. Matt miller joins us from new york. Matt, we will see you taking a ft in new list a ly york. I used my own car, put pink mustache on it, and drove around. I can we do see it. No one asked you about the new York Attorney generals what is happened this morning. All of this developing in the last hour. Eric schneiderman has gone to the court instead, i wanted bandit to ban it. They are supposed to start functioning tonight at 7 00 at brooklyn and queens. The concern is whether or not the insurance is efficient. The same kind of concerns reported on earlier. I spoke with john zimmer, one of the cofounders of lyft. He told me not only do they offer a Million Dollars in that was previously additional to whatever the drivers personal insurance was, but now they are offering across the nation 1 million in primary coverage insurance for driver. That should answer Eric Schneidermans concerns. Is not clear whether those have been able to communicate that. As it stands now, if you are a lyft driver, you are facing a potential fine they are threatening to take her car away . Why would any driver take that risk. I dont see why they would if you are she knew about it. This will be cleared up or if it isnt cleared up, then there wont be a launch tonight. Its an interesting story. The company is start supposed to start operating tonight at 7 00. These headlines came across eastern time. Lyft has six hours to talk with the attorney general in some senses, and clear this up. It has not been halted yet. Schneiderman has just asked the court to stop them. It is not clear whether the court will take the action by 7 00 tonight. Met we back with us later in the hour. First, i want to talk more about lyfts business. I spoke with the ceo and cofounder, and i asked him what was planned and what had been planned for the launch today in new york city. s biggest be lyft launch yet. We have been under operations for two years. We launch in the largest presentation capital of our country. The first two weeks are free. Absolutely free. Every single ride and user takes, the system is free. We want people to give an easy chance to check it out. They wonder what it is, what is this pink mustache, who are these drivers . How does it work . The best way to get people accustomed to it is heres a free ride. You actually brought a pink mustache for us today. I know that was some confusion as to whether you are keeping doing away with the mustache what is the latest . They will always be our symbol and very close to her heart. We are launching with something a little smaller, and cuddles a cuddlestache. How much of you thought about getting rid of the mustache altogether. Some drivers say it is inconvenient. Some of the driver of the services some of them drive for other services. Some passengers dont want to show up to business meeting with this on their car. I think the mustache will always be our icon. But we will evolve how that shows up on the car to make it more convenient for a driver. We always want passengers to be able to identify a lyft when they see one. But it wont always be quite as giant and loud. It was a fun way to start. But as the brand matures and evolves, you think someday the mustache will be gone . I dont think it will ever be gone, but they will evolve into something a little more refined. The fist pumping, chatting, sitting in the front seat . I know we are friendly in denver cisco, but maybe in new york not so much. New york is different. This inserted values with the company are true. End whatks him a you treat eachat other with respect. You might be delighted by the conversation that happened. Bump isestion of a fist just sort of an artifact of that. This is a way to break the ice. Connect with another person. To bring inowed us a higherquality type of driver. Bring in a driver who normally wouldnt be doing this. Maybe they just do it for five to 10 hours a week. But they are having a good time, enjoying themselves. They are being treated with respect. On the passenger side, you are delighted by much better driving experiences. What if you dont want to do the fist bump . You can politely declined. Placer has been cutting prices aggressively. It is sometimes cheaper, but now you were about the same price in new york. Why should i as a tempest as a passenger take the risk when new york city state officials dont want you there . As a passenger, there is no risk. Lyft has the strictest purity procedures of any company out there. We do county level criminal back run checks on every single driver. Dmv driving record checks. We have a 1 million insurance policy on every single vehicle, and every vehicle goes through 19 point inspection. We have the most correct string strict screening process. You will have the friendliest drivers and the sacred experience. This will be like an episode of cops there was an uber driver that took some guy on a highspeed chase a few days ur e quickly. We are in regular story proceedings as we speak. To fully understand the dynamics , you have to understand the history. If you go back 80 years before the medallion system existed in new york, there were 30,000 tabs on the streets of manhattan. When the medallion system went into place, there are now 13,000 less than half the number of tabs in new york city needs are on the streets today. This sort of artificial medallion system these medallions are valued at about 1 million apiece. They are owned by wealthy individuals. All that value, its over 13 billion in medallion value. See a big controversial regulatory battle playing out, what is happening is you have these wealthy medallion holders doing everything they can to protect this asset. It defies all logic. It is worth for the driver, worse for the passenger. Passengers pay more, drivers earn less. Up a newhere to open alternative for folks. More money,paid provided cheaper and better experience for passengers. New york has been hard on the sharing economy. What are you guys doing behindthescenes change that . Sidecar tried working out in new york, and they left. Behindthescenes, we are explaining all of the detailed safety procedures that we take every driver three. What we are doing is brandnew. Most people dont understand all of the details of our operation. We sit down with them, we walk them through all of the safety procedures. We get themin lyft, understanding how we operate, what we are about. Where we are headed. We were together to find a way to regulate this. In the past, it had been black and white. There were personal assets and commercial aspect assets. Your personal car you drop the kids off to school and get groceries. Commercial vehicles were only used for commercial purposes. The sharing economy has introduced an area in between. You are using your personal also are giving someone else a ride in your community. With airbnb, you are using your personal apartment. Occasionally, you host somebody else. This is regulatory agencies across the country they have been grabbing grappling with how you create a middle ground to a comment at the sharing economy. Do you think youll be ok . Cities,e and 65 other we have asked model regulation in california, the state of colorado, washington, dc we have legislation pending in a dozen other jurisdictions. Think the time for this has come. We are here to figure out how to make it work. My interview earlier today with lyft cofounder and ceo logan green. We will be speaking with the taxi and Limo Commission of new york and at this hour. What is it like to use lyft in brooklyn . s early days, and the competition with uber. We talk about the companys past, present, and future. Welcome back. Breaking news, we have the new York City Taxi and limousine chairperson and ceo joining us on the phone right now to discuss lyft. We know the new York Attorney general is trying to ban it. Onre do you stand right now lyft . Been that weon has welcome new technology. We welcome innovation, we have even gone to court to fight for the right to allow passengers to to hail asmart phones taxi. But when it comes to safety, vehicle safety, and vetting drivers, we really cannot undermine the taxi system. The four higher system here in new york, we have standards that must be met. In order to operate in new york city, lyft must meet the standards. s claims their standards are even better the new York City Taxi standards. For example, the driving age is 21, 4 a new york city cab driver is 19. I have seen what they purport is a list of what they say is improved safety standards. When you strip away it, its not true. There is betting when you come when you become a driver. Thats completely absent from lyfts model. If you have an arrest after you have been licensed, you can have your license revoked. There is drug testing annually. There is education requirements that far outstrip what lyft is suggesting. There is required defensive driving, which is not part of lyfts model. Most importantly, that constant daily check that we have on your ability to abide by traffic laws, and your ability to abide by the criminal laws of the city and the state lyft something that is completely absent fromlyft lyfts model. I understand you had issues with uber in the past, but it seems like you worked out some things. How is your position with lyft differ . And wanted ton work outside of the licensing system it. We highlighted to them what we hlighting to lyft ultimately, they decided to get a black carbased license, and that is how they operate in new york city. It is also grew to everybody that it is not that difficult to become a licensed operator in new york city. There are people out there who say that you guys are stuck in the past. This new technology is inevitable. How you respond to that kind of criticism . It is a criticism that is not based in fact. We welcome innovation. We have started any hail at an ehail at. Pp. Carsof thousands of livery are dispatched every day using app technology. We allow customers to pay with these trips using their cell phones. We are always open to new ways to make the Passenger Experience seamless. To say we are not open to new technology and new innovation would just be flat out wrong. What we wont stand is going backwards. Is proposing is that we go backwards. We go back to a time when there were far more illegal caps on the street. There were no standards for with the driver should meet. No standards of what the car should meet. The passengers were really to whatever car and driver showed up. We dont want to go backwards. We do want to move forward, but we cant move forward with a company that is asking us to dial back on our standards. When are you expecting the state to make a decision on this and whether lyft can remain operating . The city and the state Attorney Generals Office are in court arguing before a justice a New York State Supreme Court justice, requesting a gotraining order for lyft to forward. I expect by the end of today, the judge will make a decision. We will be closely following that. Commissionty taxi chief, thanks for calling in. Expands into its 68th city overall, what is its potential . Will it be as big as uber . Get tackle the regulatory system . I know you are the tail end of that conversation, what is your response to what she had to say . You may remove the last time i was on bloomberg was right after seattle attempted to restrict ridesharing. I said that was temporary, that was the case. Americans want options beyond taxis. There may be a year, month, andter, where regulators oldschool philosophies interfere with progress. But when American Consumers want something, no regulator will get in the way. Americans are voting with their feet and San Francisco. They prefer these options over taxis, or certainly to complement as a complement to the taxi service. Ameone will challenge candidate for governor, and the people who support the economies of sharing are going to win. And that will be the end of the story. Some times you do see it Destructive Technology or technologies they claim to be destructive. Eo. E aer you must take these risks into account. How much you worry about revelatory hurdles that comes of this . Not at all. I have the benefit of having been an attorney. One of the reasons why i was comfortable investing in youtube was i made an independent property prophecy intellectual property statement. Clearly wack. E the key is to ship the product. Have a lot of users addicted to the product. If you get deterred, and youre not allowed to launch, people have these parade of horribles. Its not as if new york city is safer than San Francisco. There is no evidence that taxis in new york city are safer than whatever options exist in sand and cisco. San francisco. People create these scary scenarios, and the use regulation to deter the launch itself. But once you get live, if there is massive adoption, massive popularity, and people are in love with your product and services that will be the end. How does this play out in new york . I dont know. It may be a political issue right now it is a regulatory issue. At some point, candidates who support the sharing economy will run for office against people who are legacy interests. Those candidates will win. Why did you invest in lyft and not uber . I invested before they were even lyft. Uber didnt really exist when i invested. I didnt do a comparison. A lot of companies evolve. We didnt really believe that ebay was going to be the markets. But then we watched 54 sellers adopt paypal as a payment product by themselves, and realize that would be an interesting opportunity compared to our beliefs about where the world should go. How do you feel about lyfts chances seeing how big uber has grown . They are both growing at a fast clip. I havent seen any data comparing their growth rates. I think lyft is growing extreme it well, i think they are here for a very long time it. Billionve raised 1. 2 1. 2 million. Is valued at 70 million. Investors are very optimistic 17 million. What do you think . Investors arent always right. I wouldnt use the valuation ascribed to a particular business as a way of checking it. At the end of the day, users will vote with their feet. I suspect they will both be in business for a long time. Was very successful, and both transformative. Self driving cars will also play a role in transforming the way americans work, get to work, commute, travel, and maybe even live. Do you think they are worth 17 million . I dont have an opinion. I focus on startups, not the late stage growth. Big picture, it looks like uber has a great foothold on markets around the world. Do you see lyft being that big . They are growing, expanding very rapidly. Notwithstanding this new york saga. I think lyft has grown massively in the last two years. The growth rate is impressive by any standard. What you think of the pink mustache . Kind of cool. Its interesting. Should they keep it . I saw his comments earlier today, i tend to agree. As an icon, it is perfect. How it manifests itself in markets, probably yes. Keith rabois will talk with us about opendoor. You can sell a home in 30 seconds. I can we discuss. I cant wait to discuss. Withmiller takes a lyft cofounder john zimmer. Welcome back to bloomberg west. Im emily chang. Imagine a world where you could buy a home with just a few clicks. With opendoor, new startup from paypal cofounder, you may be able to. It is just announce a funding round of nearly 10 million. It is backed by nearly everyone in silicon valley. Is here with me now. You claim you can sell the home and 30 seconds. Will allow any american to sell your home in 30 seconds. And weify your identity, will give an offer to buy it for me right there and there right then and there. You get the convenience of instantly selling your home, but you can choose any time you want to move out. Reason this is a japan staking process is verifying with you a painstaking process is verifying all of the information. What about the risk . You sell your home to us, guaranteed. Instead of having to spend 60, it 70, 90, 120 days waiting for buyers, subject to all these risks, all this time youre daiting in unsure an unsure, we will give it to you. We find a buyer. We will transfer that burden to us. We do this everyday. It will be easier for us than seller. Easier how you afford to take on this risk . We will value your home, sight unseen. Accurately give you an offer that hopefully you accept. How can you value a home without seeing it . Theoretically, you can. But what if you make a bad call . We will make some mistakes. Like in any business, this isnt a zerosum business. But over time, it has been proven that generally speaking, data is better than human judgment. This is true across multiple verticals, medicine, the law, flawed. Perts are it is absolutely case that relying upon next for it is a disaster. Using data, math, and statistics you are almost always better coming to a right answer. Ask a friend. You look down the street for sales on your block. You may go to zillow or truly a trulia. Elle and buyers . The median home in the United States is worth 200,000. I have to remind people of that all the time it. About americans spend 250,000 to buy a home. It is the number one asset. Thats our target market. Normal americans. Most people use it when you try to move. The cost of the American Dream and is upgrading your home as you get promoted. It is a competent against the home seller has to go through. As you try to buy a new home, you have to sell your old home. You wontyou can sell your old e whenever you want, and walk into your new home when it is mostly means. It certainly seems like every single potential angel worked with before. t ra in intentionally from anybody. When they heard what we were up to, people were interested in transforming this market. Residential real estate is living in the dark ages in the United States. Unaffected by technology. It is massive. Home llion americans sell their homes in spite of all of the friction. We believe technology and da