Million users against more than 300 million users each day for rise. We will see which company will alternately within china. What happens when you are a brand does when youre brandnewdoes not work correctly . Well see how apple trains engineers and employees to diagnose problems before they can become punchlines for latenight comedians. Chinese Alibaba Group will file the terms of its filing later today. It could be the largest in u. S. History if they can sell stock. The filing could include details on pricing is required before alibaba can start the investor meetings. It lands a twoweek roadshow on monday in new york. They will have stops in other u. S. Cities and in asia. This has been delayed as the sec was seeking more information from the chinese ecommerce giant. David chow is with me. What is the experience of alibaba for users in hong kong and china . Most people in hong kong knowhow to use the site. They are active participants in this marketplace, one of the largest in the world, that connects buyers and businesses together. Whats interesting is that many people in the states have never been on the website or her the name and those who have tried, i have a Small Business friend who has tried he runs a Small Business. Be a small . But itstty small, too confusing. Thats going to be one of the Biggest Challenges for alibaba how do youdemystify one of the largest he Commerce Companies in the world. Run your perspective, i would imagine you have looked at the earlier filings and gotten a sense of the business. Tell us what you think. March,e a company by 2016 that will have about 50 billion in income. Talking 150re billion but it is still growing at 40 and higher. Toy have a shot at getting 200 billion in market cap that would really send a major message that the new world order of technology is going to change because its going to be the largest Chinese Internet Company by market cap and the largest ecommerce market in the world. Should it be . Frome business that strong profitability that that valuation will hold . Think we tend to forget that when amazon went public, it was not even profitable. Its barely profitable now. Thats exactly my point i think alibaba is still in the early stage when ecommerce is really kicking in. Its already the largest in china which is larger than the u. S. But mobile commerce is just about to start. They dominate about 7080 of anything sold to the consumer on ecommerce. Its basically through their website. Talk about the mobile usage and how important that is. Its extreme important. If you look at the many battles they are fighting, the brickandmortar integration, mobile is the most important thing. That is one of the pieces they have mailed compared to their biggest competitors likebaidu. They depend on the average person going out and buying what they see right away. They are adopting a new technology where if i like what you are wearing on the street, i can take a photo in a can send it directly to the type of store that will sell it and i could buy it right away. Like ebay where they match the buyer and seller but are not carrying their own product. Thats right, you are seeing the rise of the middle class in china. People are on their first smartphone and as a result, they are trying to figure out the best ways to use it. They dont have a laptop and home and have gone straight to the phone and thats where they are doing their shopping and that is where they are ordering. David, when you look at the other businesses that are folded into this, do you see a Network Effect or do you see that these guys are cobbling together many different ideas on top of one . For think the propensity Large Internet Companies nowadays whether you are google or others is to dominate or try to get into every field. In particular, there is a lot of greenfield areas in china. I think alibaba sees that they are in the front seat along with baidu and tencents to grab them. Chaotic a little bit but i think there is a strategic string. They want to own the consumer at the end of the day. Get the sense now that theyve got this really dominant market share in china in ways that amazon is starting to be in the u. S. . Are you seeing that in china . Yes, they own 80 of Consumer Shopping in china. That number is expected to grow by 2017. The reasons they are doing so well is because we take a look at china and i have spent many years there it is fragmented. If you want to buy a tv or a laptop, there are thousands of places to go to. Is a centralibaba portal where you can find what you need quickly and instantly. You dont have to navigate the ground. You have to navigate the web. Welleason it may not do as as in the u. S. Is because in the u. S. , its really straightforward to navigate. If you want to buy a laptop or computer or tv, go to best buy or others or go straight online. In china, you only have limited options which is why they are doing really well. Is the mobile platform so important because that is the first computing that many people in china will ever do . Absolutely. If you take a look at those in second and third tier cities, they have spent time in places that you have never heard of and most people there this is a savvy city, they only own a smart phone on the bought recently. Its not always one of the most expensive ones. Their other products. The point is, its interesting that david mentioned they want to own the consumer. I would be curious to hear what your thoughts are about the gaming side of things. If you want on the consumer, you want to figure out how to increase the number of Revenue Streams you can get from them. One way is gaming and . 10 has done a great job at this. They have partnered with the andtors of candy crush final fantasy and to sell these virtual goods so that not only are they able to buy physical goods with virtual goods as well. Im curious to see what you think about that. I think the thesis for alibaba is that shopping is also entertainment. We also know that a lot of ecommerce sites whether it is auctionbased or social networking based, is becoming more entertaining. The gamification of ecommerce and shopping has happened in alibaba needs to have their foot in the Gaming Business to really understand that and make sure they are in the forefront of shopping. Time, gaming in china is one of the early markets of the internet that was extreme the successful. Mobile, alibaba is facing a few threats from the communications side. Also on the search side thatbaidu has i think they need to have a defensive strategy to make sure they arm themselves with almost every single sector in the Internet Business in china. They also are armed with that a big armful of cash if this ipo goes through. Thank you both for helping us get ready for this. Thank you very much. Bloomberg will have extensive coverage of the alibaba ipo roadshow in all things leading up to the offering in the next couple of weeks including a special documentary monday night. It draws in over 200 hours of archival footage with alibaba employees and their headquarters in splashy public events. Take a look [circle of life] ma hat was jack thats crazy. Look at the premiere of crocodile in the yangtze on monday at 9 p. M. East coast time. More louvered west coming up after this more bloomberg west coming up after this. Im cory johnson and this is bloomberg west. Alley and alley bobby and alibaba back taxi service is starting in china and receives over 6 million orders for cars per day3 kuaidi launched in 2010 and is in over 300 cities. Uber only operates in four chinese cities. Johnny is now from hong kong is the cofounder. Joining us now from hong kong is the cofounder. How is your business growing . We are growing very good. We cover over 300 cities now. Have also tacked on Limo Services to our 100 million registered users. Those are really big numbers. What has the growth rate them like . Is accelerating or slowing down . It is accelerating. Really . Especially when we offer the new service to them. We addedn app and then the limo service so that is why our numbers are growing are going up. Specifically, what is the billing like . One of the secrets of uber is that they have a backend billing system that works so well and seamlessly. How does that work in china . Weve got the number one Payment Gateway in china with alibaba. Alipay which is the largest amon system in china. Is the functionality similar . Its similar and also [indiscernible] is not as common in china. A lot of people are using alipay to do online transactions. The transaction goes between the user and a bank account . Basically, the users deposit money into alipay and then alipay will be the Payment Gateway when they initiate a transaction on their app. Fromoney will go directly the passengers to the driver right away. That is an adjusting difference. Desk that is an interesting difference. I was struck looking at the website it does not look like it is close to the uber website. It looks like the uber website. As you copy what they did . We have lots of localization in the market area you are just looking at the english website but on the app, we did a lot of localization. We as local maps, local points of location, we did a lot of localization to make sure we get into the local market. How is it different . What sort of features would that be that look different . I can offer you some very interesting features. In china, taxi fare is so cheap. The startup is only two dollars. Sos very hard to get a taxi we offer a tipping function in our app. When the user cannot get a taxi, they can just say i would like to order a taxi and the driver will pick you up. Interesting, are the vehicles different . Adding aexpanded by cheaper vehicle. Yes, we have a portfolio of around 10,000bmws and audis andsclass mercedes. All the way from the economy car to the luxury cars. The smart phone market is expanding but not as prevalent in terms of percentage market shares as you see in other countries. Other other adjustments you make for that or are you waiting for them to come up with smart phones and that will give you more growth in the future . Definitely, in china, the market is so big we just kept a small portion of the market. The taxi but we offset the limo service eight weeks ago. We start with 50 and now week cover more cities and now there is a lot of growth for the rest of the year. Joe lee, thank you very much. The motorola smart watch is going on sale today. Its interesting to see this advice come out ahead of an apple wearable announcement next week and got our hands on the watch and will show it to you next on bloomberg west. Welcome back. Motorola just revealed its highly anticipated smart watch. And ialled themoto 360 of theat the release samsung watch. This comes ahead of an apple announcement of its own wrist device. Sam grobart was wearing that watch and was trying it out inside and look what he found. 0 this is Motorolas Moto 36 smart watch. This is the best smart watch you can buy right now. Why . For starters, its the only smart watch that realizes the importance of looking good. Smartphones spend a lot of their time in our pockets or in bags. The smart watches constantly visible. Looking good is really important. Bar not one clears that only is it eyecatching the round, it is made out of luxurious and suitably watchy materials like stainless steel and whether. The display is a colorful and responsive touchscreen. It is not super awesome in Bright Sunlight but few displays really are. When youre not looking at the display, it automatically dims which gives the 360 a battery life of about a day. Went to when you want to recharge, you put it into the included document and i stand which turns your watch into a little bedside device. It lets you use voice commands. , ok,ake it up by saying google, and then you could issue instructions like send a text or make an appointment on your calendar or have it navigate you to a destination. Navigate me to rockefeller center. Get your watch to do more than tell time, you have to prepare it via bluetooth with an android smartphone and that smartphone has to have anapp called android wear. Is the link between your watch and some of the apps on your smart phone. Naturally, google apps are the most compatible. I can read a gmail or make calendar appointments straight from iwatch but other apps are more limited. I can see on iwatch that a friend commented on one of my facebook posts but to actually read that comment, i have to open up they spoke on my phone. Is notend, the moto 360 looking at other smart watches for inspiration. Its looking at this an ipod. The ipod was not the first mp3 player out there but it was the first mp3 player that made people care about owning an mp3 player. We are still in a bit of a primordial phase when it comes to smart watches. This watch hopes to be the breakthrough. On the hardware side, it may have done that but the limitations on the Software Side still makes this feel less than something truly revolutionary. This really is the best smart watch you can buy right now. Unless im of course, someone comes up with a slamdunk. With theas sam grobart new motorola smart watch. Lumbered west will be right back. It is 26 minutes after the hour which means we are on the markets. Lets take a look at where stocks are trading in the wake of that disappointing jobs report. We see some gains on market as people speculate that the fed will not have to tighten if the economy is not on solid footing. In terms of individual stocks, we are watching gilead. They want to bring its hepatitis c treatment 280 developing countries. The 12 rate treatment the 12 week treatment will be in developing markets for about 900 and we are looking at that which posted samestore sales that trailed estimates pulled down by a six percent slide at its clothing chain. More bloomberg west coming up. You are watching lumbered west. Bloomberg west. Therce Software Company announced exist banding salesforce, platform that allows developers to create apps for wearable devices. Really . We are joined from toronto, the Senior Vice President at salesforce. Really . Crm software on a wearable . Absolutely, we are super excited about wearables and we think its the next mobile revolution. With salesforce where launching two months ago, the momentum has been tremendous. It is showing that there are tons of Business Applications for wearables in business and health care and retail and hospitality. Its going to be amazing. Rift is not really out there but what might you do with that . Think there is tons of applications for business for oculus rift. One of the Business Applications we created from our platform was the ability for someone to go into a car dealership and visualize the car they want to purchase and even sit in it and look at the color and the wheels and change the configuration. It would create an entirely new experience and also helping and automate of and automotive manufacturer create connect with their customers. We are about helping their customers connect with their customers and a new way. I was wondering what youre doing and canada. Is this where salesforce is based, in toronto . I live in toronto and we have a large presence in canada. The toronto area is a hotbed of wearable innovation. Its a great place to be today. I know there is wireless innovation going up there, too. In terms of the Virtual Reality notion, does this put salesforce more in front of consumers and less and not just the salespeople themselves . Salesforce, our roots are the salesforce automation of the crm company but we have become the number one clout company in the world in the number one sales cloud and number one marketing clout in the Number One Service cloud and we are huge Platform Company and thats why we saw the opportunity for salesforce where. We have over 2000 and of them and apps of all types. Withwe have seen innovation on this platform reinforces that the salesforce one platform which allows developers to quickly develop things across a variety of devices and now for wearables is the number one place to build Business Applications in the cloud. Salesforce things we are not just about sales people using it for automation, we are about really transformative applications you can build that connect directly to customers and create new experiences that were not possible before. I mentioned what i am wearing now. That come into being something that might help anybody sell anything . Its not necessarily just about helping people sell their products. Its about new experience in a way to connect to customers in new ways to provide service to them. Its also about new ways to create employee productivity. With the jawbone, salesforce has one of the number one internal Community Applications and thats the place that thousands of employees, millions of employees go everywhere date every day to do their work so isnt that a natural place to connect if it is our Wellness Program . Companies are deploying devices like the jawbone up and providing incentives in cap petitions to increase fitness and wellness. That translates into more happier and engaged employees and Lower Health Care costs for large organizations. Its intriguing with news of an apple device coming next week. There is a strange thing in new york this week where samsung did not announce a watch but had one available for the press to check out. They would not talk about it. Aich is odd but are you in position where you in a position where youre seeing these devices before they come out . Do you get a sense of what might be possible . Absolutely, we have had some great traction with hardware vendors. In this release of salesforce where, we added five more vendors. Who added oculus, jawbone but and meta. Ic and vario these are devices before they have been released and we get to work with them and its exciting. What salesforce where is helping us do is create a single place for developers and businesses to bring together hardware manufacturers, the Software Platform they need in a trusted cloud environment to build something that is going