Rate for African Americans as actually falling faster than the eye overall on implement rate. It is still too high. The wage growth is also too low. The Justice Department is likely to final corruption charges against new jerseys senator Robert Menendez this coming week. The democrat has been under investigation for trading business favors to a longtime friend and Campaign Donor from florida. Menendezs office says the senators actions have been appropriate and lawful. Federal authorities said that hackers stole one billion email addresses from companies that send legal spam. Hackers use them to send a legal spam. This is being described as one of the largest data breaches in u. S. History. Three people indicted in this case. A major reorganization saieh the spy agency is refocusing to focus more on cyber espionage. The changes were announced by the cia director john brennan. There will be a new director of digital innovation. They will have Mission Centers devoted to groups on terrorism rather than geographic regions. The worlds most valuable company is 20 the Dow Jones Industrial average. Apple is 20 the dow after replacing at t. Apple was kept out of the price weighted index for years. A 71 split last year of its shares gives it a share price that is more amenable to the dow. Apples entry comes after visa split. The new entry comes with a cost at t leaving the dow after some lackluster performance. This move has been predicted for some time, even two years ago. Sandford bernstein predicted that this was about to happen. What you make of it happening now . There were two things that made it possible. The first of them is the split in apple itself. The dow is a priceweighted index it has been ever since its inception. If you had put the old priest apple it would have been a huge percentage of the total weight of the index. If you put the old presplit apple. You have visa splitting its stock and that would have reduced the weight of the Information Technology sector of the Dow Jones Industrial average. Putting out a limb was a way to bring the tackle waiting. The tech waiting, you take out at t, you at apple which is more of an index in technology so, it is little bit closer. The index percentage weighting you had 20 in technology, now you will have 19 in the dow does that mean it better reflects . What are they trying to do . If apple had not come in and visa had split the weight would have been substantially reduced. That is the motive we cannot let technology be that low and have this index be representative of the bluechip american market. You have the obvious fact that apple is a stock and people like to see it. How important is the Dow Jones Industrial average to the way in which the market or the economy works . Isnt this head and shoulders above in terms of importance . The s p 500 is head and shoulders above. It is much more copper hence of capitalization weighting. It is much more comprehensive. Youre absolutely right. It is much more important. Anytime we can lead with apple, we want greg lazzara. Thank you. Now its time to our special cohost, john cymer will join us for the entire hour. Really glad to have you. Your pink mustaches are known increasingly, 65 cities across the world, across the u. S. You have grown a really interesting business. How do you measure your growth . Year over year, we have grown five x and we have 100,000 drivers across the country in 65 cities. We were talking about the economy adding 290,000 jobs. You have added 100,000 drivers. Amazing. You are and 65,000 cities you are in 65 cities right now. s starts with our vision. It tells what we are going and the new products that we are creating. In the beginning, it starts with the premise that 80 are empty at all times. So, i am sitting out and looking in the traffic in front of me and most of those cars are empty. Nla, the average occupancy is 1. 1 people. In l a, if you change that to 1. 3, you would have less traffic problems. 2. 15 children dollars spent on personal vehicles in the u. S. Every year and they are used 1 2 of their lifetime. We are trying to create a lowcost option that allows you to replace car ownership. This doesnt replace the taxi or the limo. Emily chang and i we did this thing for years ago, this thing called huber. She called the taxi and i waited for an huber. I never thought the answer was Something Like 300 or whatever. You have an even bigger ambition. You want to replace cars. Thats right. The black car industry is 1 billion. The taxi industry is about 12 billion. What was and on automobiles is 2. 5 one trillion what we spend on automobiles is two poin2. 15 trillion. Is the principal Technological Advancement that makes that possible the smartphone with gps . Thats right. Or the big data and analysis . It is a combination of both. Without mobile devices in everyones hands, it would not be possible. What is the biggest area of growth . Is about awareness. Finding out about the service. So, it is generally just an awareness. Weve got a lot of stuff to talk about. You will have a list driver talk about a bunch of other companies. We will have a lyft driver. Bloomberg west will be right back. Im cory johnson, here is bloomberg west. Isis of bulldozed nineveh. Iraqi fighters have launched a new offensive to retake the city of tikrit. Chinas cutting pay for top executives of its biggest banks and other state owned companies in effort to fight income inequality. Senior managers of the nations five largest lenders, all of which under government control will make no more than 95,800. A chinese smartphone maker is planning a Huge Investment spree. The ceo says the company was to emerge in fast in 100 emerging tech startups. They are hoping to expand. Was turned back to our special hour with cohost john zimmer the president and cofounder of lyft. It is all about passengers, the quick , he says. What about the drivers, how do you keep them happy . We did pick you at random. We just had to pick up one of the people on our staff. John is sitting. You guys have not met. Everything you wanted to blame him for, you can right now. Why did you decide to start doing this . I had moved to Northern California from southern california. I just finished grad school and i heard was a great way to make money. Is it . It is. I started in sacramento. The pay was much more rewarding here and i had a friend that was looking for a roommate. I was like, wow i can lyft in San Francisco and not have to pay a really high rent. What has been the most surprising thing . Im surprised i can make 300 a day. How many hours are you working . I work 10 hours, five hours, sometimes i work like eight. What is the stress level like . Because driving in traffic is stressful stuff especially if someone in the back seat has to get somewhere. Quick San Francisco is a tough place to drive in general. People are popping out at you all the time. Sometimes the passengers are very stressed out because they are late. That is hardest part. Right there, just the traffic. Having things come from all directions. A lot of things that people wonder about, how are the people you are meeting hundreds of people a week. Are also a woman alone in the car. When i drove, it was terrifying. Every day you are in the cap, you are an atm machine. You are driving, you have to pull over for anyone that requests you do. The first time, the first day, it was totally uneasy. I think the driver is more nervous than the passenger. They realize this is regular people. I requested. I drive a honda civic. Does the car matter . Yes, it has to be a 2003 and up. In terms of the way the passengers react . No, i dont think that they are too picky. We have looked at ratings and we have seen little variance. Passengers really want to ride with a great person. Interesting. You guys have a controversial promotion program. If you bring in a couple of people, you get paid. You backed away from it a little bit. Some people are complaining about it. There was even a threat of a strike. Is there a strike today . Not that i am aware of. So, we underestimated how many people would apply for this. We will pay you a thousand books, we will pay each of them a thousand. A thousand dollar referral bonus. If the application was complete by the end of the day yesterday. So, that is what we said from the beginning. There are certain steps in the process. They may take longer. So many got through. Some didnt. There are other safety checks that we do on our side. What we said is that we extended another week. We knew the background check may not go through. This was a young girl. It may or may not work out. Interesting stuff. We were glad to have you very much. Thank you very much, lift driver. Bloomberg west will be right back. We want to get back to our story about lyft. They pay with stripe, one of the hottest Payment Companies around. The relationship goes a long ways back. They have been back since the beginning. The very First Company to use a strike. Stripe. Talk to me about how stripe works with lyft. We are excited about the we are excited about the lyft relationship. Only 5 of commerce happens on the internet today. The way that lyft has grown they are taking part of the payments, the drivers need a payment. They of been a great partner with us. Businesses like lyft have that Party Agreement and need Payment Processing across those. When i drove the cap, i felt like a moving atm and i was carrying a couple of hundred dollars in cash to any part of new york city that a passenger would request, which was vaguely terrifying. There was a glass between the passenger and the driver was change the experience. Its the first thing you bring up the safety the first thing you want to bring up his safety. Stripe allows us to do that. How do you control peoples private information . Working with a third party like stripe, that is part of their business. When someone puts in their credit card information, strip e handles that and passes us a token so we dont have that individuals credit card information. The last piece is distribution. We have 100,000 drivers. It is quite complicated to collect money and disperse it out on a weekly basis. Millions have used the service. Probably more than 10 passengers per driver, right. Think about doing it in multiple countries. Very challenging to take a Company Global in the current payment structure. When you look at how this is a fault over time, how has this changed . How has stripe changed . We found exactly the example of the kind of business we want to sit what which is the security aspect, the mobile, the frictionless aspect. There are complexities in handling their business with respect. First of all, you want to make sure that security is occurring, theres fraud prevention. To make sure they dont have to build up a big Payment Scheme and the Business Office to track the money moving. They have a lot of transactions. Is it true that you can launch a business like this in the same way . So Many Companies are doing that now. Stripe is changing the way that companies can launch. Do you feel like every customer you add to stripe is really changing stripe and you will be able to apply that across a new Customer Base as well . This is the one segment we care about. We have in working with our partners there. She worked on this project. When you look at the future of transportation, youre working with lift. You see these things coming together . Maybe google does. I think in the future im interested to see how it comes together. That project and what john and logan have created and motivated are the same thing. We are not thinking about transportation the way we should, we only use our cars a fraction of the time and it should be a shared resource. Safety benefits and economic benefits. We appreciate it. John zimmer will stay with us. Bloomberg west will be right back. Cory you are watching bloomberg west, where he focus on the future of innovation, technology and business. Im cory johnson. Lets get a check of some headlines. U. S. Employers added 295,000 jobs to their payrolls last month. That is the 12th straight month of job gains, over 200,000. However, early earnings are only up 1 . Here is the reaction from bill gross. Bill gross i dont think this jobs report is as important as you pointed out. I dont think it threatens inflation. In fact, it is below what the fed needs. Cory johnson the Unemployment Rate dropped to 5. 5 , the lowest level in seven years. Vladimir putin ordered a pay cut for himself, the prime minister, and other Government Employees starting march first through the end of the year. Vladimir putins net worth is in the billions, so cry no tears for him. President obamas senior advisers say email used in the Current Administration is much different than during Hillary Clintons time as secretary of state. President obama believes emails should be tracked. He believes in transparency. The state department is currently working with the National Archives to make sure that all of secretary clintons emails are captured. Secretary clinton has asked the state department to make her emails available as soon as possible. Investigators are looking into whether claims that her emails violated policy are not true. British Police Arrested a 23yearold man says acted of hacking into the internal Communications System of the department suspected of hacking into the internal Communications System of the department of defense. Unique codes have identified 34,000 department of defense mobile devices. This follows a series of raids by u. K. Law enforcement officials targeting cyber criminals. We now turn to ride sharing. The pink mustache has drawn fans, critics, and a lot of attention to the company. Lyft is shifting away from the fuzzy pink mustache. They have a sleeker, glowing version. The ceo joins us, as well as Virgin Americas chief marketing officer. Glad to have you on. Tell me about the mustache. It was supposed to be a launch idea that we would do for a couple of weeks. We thought for two weeks it would get a lot of attention which it did, and it worked out really well, so we kept it for two years. Luckily, we worked with a great team to polish it off, and we now have a sleek glow mustache. Cory johnson so, it became your marketing message by accident. Yes. Cory johnson so lets look at virgin airlines. You try to come up with an idea that was different. Virgin air i have flown continental, united. Delta. Usair. There are not a lot of airlines that are really differentiated. What is the message you wanted Virgin America to have . It is about trying to create an airline that people loved and trying to make flying fun again. When we launched, the idea was to take what people like on earth and bring it into the sky. Have a meal when you want it. Have wifi. You like things to look nice. Its about giving people control in their environment and giving them something beautiful to look at. Cory johnson i am totally smitten with Virgin America, i will just put it out there. I am already virgin gold. But i wonder, is virgin brand that is marketing less you come up with an idea of the image you want to have and then create the experience around it, as opposed to putting a pink mustache on a car where you lead with the experience and the marketing comes second. We react to the message out there by differentiating our product. A lot of other airlines really do not offer a good experience. Does anything change now that you are a Public Company . Now we can answer a lot of cannot answer a lot of questions. In that way, it has become easier. Cory johnson whenever we talk to you, you talk about customer experience. You talked about that with the driver earlier. You want the passenger to bond with the driver. You like communication between the two. Is your marketing message you know, how does a pink mustache advance that idea . It is a conversation starter. It is kind of like a smile. You get into a lyft, and often the passenger is smiling because there is a pink mustache there. That was part of the original idea. Because you want to bring this to every car on the road, every driver, you need an experience that everyone is comfortable with. If you go into a room and ask people, how many of you are willing to be in a car with a friend, share a ride with somebody else, most people raise their hands. Creating that experience is important to going after the mass market. We admire everything Virgin America has done around the experience. I feel good when i am taking a Virgin America flight. Cory johnson virgin certainly gets very high rankings as far as Customer Satisfaction. How much is Customer Satisfaction not just about experience, but what the expectation of the brand will be . We have ontime arrivals and departures as well as baggage claim that is less sexy than some of our business, but it is part of the experience. We get you there safe and we get you there on time. Passengers are doing the work for me by talking about how much they enjoy the airline. We rely on social media. Having a good experience allows us to have a good wordofmouth. Cory johnson but does the marketing message prepare them for that . Hey, i thought i was going to get on a crummy airline, but i got on a somewhat less crummy airline. Because you are still cramped. You are in a steel shell for an uncomfortable amount of time. You are still carrying your luggage. Your kids are still crying. But isnt it better that you can order a movie and have a cocktail whenever you want it . Cory johnson absolutely. That is