Year: 2018

13 Jul 2018

As facial recognition technology becomes pervasive, Microsoft (yes, Microsoft) issues a call for regulation

Technology companies have a privacy problem. They’re terribly good at invading ours and terribly negligent at protecting their own.

And with the push by technologists to map, identify and index our physical as well as virtual presence with biometrics like face and fingerprint scanning, the increasing digital surveillance of our physical world is causing some of the companies that stand to benefit the most to call out to government to provide some guidelines on how they can use the incredibly powerful tools they’ve created.

That’s what’s behind today’s call from Microsoft President Brad Smith for government to start thinking about how to oversee the facial recognition technology that’s now at the disposal of companies like Microsoft, Google, Apple and government security and surveillance services across the country and around the world.

In what companies have framed as a quest to create “better,” more efficient and more targeted services for consumers, they have tried to solve the problem of user access by moving to increasingly passive (for the user) and intrusive (by the company) forms of identification — culminating in features like Apple’s Face ID and the frivolous filters that Snap overlays over users’ selfies.

Those same technologies are also being used by security and police forces in ways that have gotten technology companies into trouble with consumers or their own staff. Amazon has been called to task for its work with law enforcement, Microsoft’s own technologies have been used to help identify immigrants at the border (indirectly aiding in the separation of families and the virtual and physical lockdown of America against most forms of immigration) and Google faced an internal company revolt over the facial recognition work it was doing for the Pentagon.

Smith posits this nightmare scenario:

Imagine a government tracking everywhere you walked over the past month without your permission or knowledge. Imagine a database of everyone who attended a political rally that constitutes the very essence of free speech. Imagine the stores of a shopping mall using facial recognition to share information with each other about each shelf that you browse and product you buy, without asking you first. This has long been the stuff of science fiction and popular movies – like “Minority Report,” “Enemy of the State” and even “1984” – but now it’s on the verge of becoming possible.

What’s impressive about this is the intimation that it isn’t already happening (and that Microsoft isn’t enabling it). Across the world, governments are deploying these tools right now as ways to control their populations (the ubiquitous surveillance state that China has assembled, and is investing billions of dollars to upgrade, is just the most obvious example).

In this moment when corporate innovation and state power are merging in ways that consumers are only just beginning to fathom, executives who have to answer to a buying public are now pleading for government to set up some rails. Late capitalism is weird.

But Smith’s advice is prescient. Companies do need to get ahead of the havoc their innovations can wreak on the world, and they can look good while doing nothing by hiding their own abdication of responsibility on the issue behind the government’s.

“In a democratic republic, there is no substitute for decision making by our elected representatives regarding the issues that require the balancing of public safety with the essence of our democratic freedoms. Facial recognition will require the public and private sectors alike to step up – and to act,” Smith writes.

The fact is, something does, indeed, need to be done.

As Smith writes, “The more powerful the tool, the greater the benefit or damage it can cause. The last few months have brought this into stark relief when it comes to computer-assisted facial recognition – the ability of a computer to recognize people’s faces from a photo or through a camera. This technology can catalog your photos, help reunite families or potentially be misused and abused by private companies and public authorities alike.”

All of this takes on faith that the technology actually works as advertised. And the problem is, right now, it doesn’t.

In an op-ed earlier this month, Brian Brackeen, the chief executive of a startup working on facial recognition technologies, pulled back the curtains on the industry’s not-so-secret huge problem.

Facial recognition technologies, used in the identification of suspects, negatively affects people of color. To deny this fact would be a lie.

And clearly, facial recognition-powered government surveillance is an extraordinary invasion of the privacy of all citizens — and a slippery slope to losing control of our identities altogether.

There’s really no “nice” way to acknowledge these things.

Smith, himself admits that the technology has a long way to go before it’s perfect. But the implications of applying imperfect technologies are vast — and in the case of law enforcement, not academic. Designating an innocent bystander or civilian as a criminal suspect influences how police approach an individual.

Those instances, even if they amount to only a handful, would lead me to argue that these technologies have no business being deployed in security situations.

As Smith himself notes, “Even if biases are addressed and facial recognition systems operate in a manner deemed fair for all people, we will still face challenges with potential failures. Facial recognition, like many AI technologies, typically have some rate of error even when they operate in an unbiased way.”

While Smith lays out the problem effectively, he’s less clear on the solution. He’s called for a government “expert commission” to be empaneled as a first step on the road to eventual federal regulation.

That we’ve gotten here is an indication of how bad things actually are. It’s rare that a tech company has pleaded so nakedly for government intervention into an aspect of its business.

But here’s Smith writing, “We live in a nation of laws, and the government needs to play an important role in regulating facial recognition technology. As a general principle, it seems more sensible to ask an elected government to regulate companies than to ask unelected companies to regulate such a government.”

Given the current state of affairs in Washington, Smith may be asking too much. Which is why perhaps the most interesting — and admirable — call from Smith in his post is for technology companies to slow their roll.

We recognize the importance of going more slowly when it comes to the deployment of the full range of facial recognition technology,” writes Smith. “Many information technologies, unlike something like pharmaceutical products, are distributed quickly and broadly to accelerate the pace of innovation and usage. ‘Move fast and break things’ became something of a mantra in Silicon Valley earlier this decade. But if we move too fast with facial recognition, we may find that people’s fundamental rights are being broken.”

13 Jul 2018

Department of Justice indicts 12 Russian intelligence officers for Clinton email hacks

Just days before President Trump is set to meet with Russian President Vladimir Putin, the Department of Justice has leveled new charges against 12 Russian intelligence officers who allegedly hacked the Democratic National Committee and the presidential campaign of Hillary Clinton .

The charges, released by Rod J. Rosenstein, the deputy attorney general who’s leading the investigation into Russian election tampering because of the recusal of Attorney General Jeff Sessions from the investigation.

In January of last year, the intelligence community issued a joint statement affirming that Russia had indeed tampered with the U.S. presidential elections in 2016.

Russian Election Interference

Now the investigation is beginning to release indictments. Three former campaign aides for the president’s campaign have already plead guilty, and the president himself is under investigation by Special Investigator Robert Mueller for potential obstruction of justice.

According to the indictment the Russians used spearphishing attacks to gain access to the network of the Democratic National Committee and the Democratic Congressional Campaign Committee.

Rosenstein also said that Russia’s military intelligence service was also behind the leaks that distributed the information online under the aliases Guccifer 2.0 and DCLeaks.

Read the full indictment below.

 

13 Jul 2018

Amazon’s share of the US e-commerce market is now 49%, or 5% of all retail spend

Amazon has already been in the crosshairs of the White House when it comes to threats of antitrust investigations, and while some say this is simply Trumpian bluster that has a slim chance of going anywhere, some new numbers out from the researchers at eMarketer could prove to be a fan to the flames.

Amazon is set to clear $258.22 billion in US retail sales in 2018, according to eMarketer’s figures, which will work out to 49.1 percent of all online retail spend in the country, and 5 percent of all retail sales.

It started as an online bookstore, but today Amazon is a behemoth in all areas of e-commerce, fuelled by a strong Marketplace network of third-party sellers, an ever-expanding range of goods from groceries to fashion, and a very popular loyalty program in the form of Prime.

Now, it is fast approaching a tipping point where more people will be spending money with Amazon, than with all other retailers — combined. Amazon’s next-closest competitor, eBay, a very, very distant second at 6.6 percent, and Apple in third at 3.9 percent. Walmart, the world’s biggest retailer when counting physical stores, has yet to really hit the right note in e-commerce and comes in behind Apple with 3.7 percent of online sales in the US.

The figures — which eMarketer says are estimates “based on an analysis of quantitative and qualitative data from research firms, government agencies, media firms and public companies, plus interviews with top executives at publishers, ad buyers and agencies” — are also remarkable not because of their size, but because of Amazon’s pace has not slowed down. Its sales are up 29.2 percent versus a year ago, when it commanded 43 percent of all e-commerce retail sales.

The rocket ship for Amazon’s growth at the moment is its Marketplace — the platform where Amazon allows third-party sellers to use its retail and (if they choose) logistics infrastructure to sell and deliver items to Amazon shoppers. It’s currently accounting for 68 percent of all retail sales, working out to nearly $176 billion, versus 32 percent for Amazon’s direct sales, and eMarketer projects that by the end of this year, Marketplace’s share will be more than double that of Amazon’s own sales (it’s already about double).

It’s no wonder that so many other online commerce businesses are chasing the marketplace model, which essentially creates transactions on two fronts for the platform operator, thereby improving margins that might be cut by not selling items directly.

“The continued growth of Amazon’s Marketplace makes sense on a number of levels,” eMarketer principal analyst Andrew Lipsman notes in the eMarketer report. “More buyers transacting more often on Amazon will naturally attract third-party sellers. But because third-party transactions are also more profitable, Amazon has every incentive to make the process as seamless as possible for those selling on the platform.”

In terms of popular categories, consumer electronics and tech continue to be the leading product category: eMarketer projects sales of $65.82 billion, around one-fourth of all turnover. Second will be apparel and accessories, which will pull in $39.88 billion of sales. Third in 2018 are health, personal care and beauty with $16 billion. Fourth is food and beverage at a distant $4.75 billion.

All of these are already up by 38 percent or more over a year ago (see the full table below), but what’s perhaps most notable is how Amazon has been investing in being a direct player in each of the categories as well.

In tech, it has its Kindles and Fire tablets, Fire TV, and of course its huge hit Alexa-powered Echo devices, among many other products. Apparel is being pushed heavily in the company’s private-label efforts. Amazon just the other week announced that it was acquiring online drug seller PillPack for $1 billion, which will be a major lever in its wider health products and services strategy. And lastly, there is Amazon’s acquisition of Whole Foods and its much wider play around meal kits and its server-free physical shops. The physical aspect, eMarketer believes, will play a strong role in Amazon’s growth in this category.

“Amazon’s strategy for food and beverage is no different, in some respects, than it was for books—dominate the category,” eMarketer senior analyst Patricia Orsini notes in the report. “However, e-commerce in the grocery sector is a challenge. Share of online sales in this category is low because most people, for a host of reasons, prefer to buy food in brick-and-mortar stores. Amazon has an advantage because its shopper base is comfortable with shopping online. Along with insights gathered about Whole Foods shoppers, Amazon probably has the best chance of converting in-store grocery buyers to online grocery buyers.”

All of these will not just boost Amazon’s own direct sales but help create an environment for people to come to Amazon to buy either these at price-busting rates, or other-brand alternatives.

So far, people think that it is unlikely that Amazon would stand an antitrust investigation because e-commerce is still a small part of all commerce (as evidenced by the five percent of all retail sales figure). However, Amazon’s dominance is clear when considering e-commerce alone.

 

13 Jul 2018

Chad Rigetti to talk quantum computing at Disrupt SF

Even for the long-standing giants of the tech industry, quantum computing is one of the most complicated subjects to tackle. So how does a five-year old startup compete?

Chad Rigetti, the namesake founder of Rigetti Computing, will join us at Disrupt SF 2018 to help us break it all down.

Rigetti’s approach to quantum computing is two-fold: on one front, the company is working on the design and fabrication of its own quantum chips; on the other, the company is opening up access to its early quantum computers for researchers and developers by way of its cloud computing platform, Forest.

Rigetti Computing has raised nearly $70 million to date according to Crunchbase, with investment from some of the biggest names around. Meanwhile, labs around the country are already using Forest to explore the possibilities ahead.

What’s the current state of quantum computing? How do we separate hype from reality? Which fields might quantum computing impact first — and how can those interested in quantum technology make an impact? We’ll talk all this and more at Disrupt SF 2018.

Tickets are available here.

13 Jul 2018

Apple announces clean energy fund in China

Apple has announced a new investment fund to foster clean energy usage in China. The company isn’t just trying to switch its own offices and facilities. Apple is also working with its suppliers to expand the use of clean energy across the board.

For this fund in particular, Apple and 10 suppliers will invest $300 million over the next four years. Overall, the company expects to finance multiple clean energy projects to produce 1 gigawatt of renewable energy in China.

Apple isn’t going to manage the fund itself. The company is partnering with DWS Group, a division of Deutsche Bank. DWS will also participate in the fund.

The company started working on renewable energy projects a few years ago. Earlier this year, Apple claimed that 100 percent of its offices, retail stores, data centers and Apple-owned facilities are now powered by renewable energy.

Apple is not there yet when it comes to suppliers. The company has launched the Supplier Clean Energy Program back in 2015 with 23 manufacturing partners, and regularly shares updates — Foxconn seems to be missing so far.

By 2020, Apple and its suppliers hope to generate 4 gigawatts of clean energy. And let’s be honest, this is great news for the planet.

13 Jul 2018

Amazon Prime Day’s best tech deals

When you’re as big as Amazon, you get to make up your own holidays. And if you want to make that day 36 hours long, who’s going to stop you? This year, things kick off on Monday July 16, and just kind of keep going from there.

Granted, many of the best deals won’t be announced until the day starts, but companies (including Amazon itself) have been more than happy to offer up a preview of what’s to come. Here’s a partial list of some of the best.

We’ll no doubt be updating things over the next few days as more companies reach out. 

Amazon Cloud Cam ($60, $60 off regular price): One of Amazon’s deepest cuts yet, the company is cutting the price of its 1080p connected security camera in half.

Amazon Kindle Paper White ($80, $40 off regular price) – Amazon’s Kindle Paper White is getting a bit long in the tooth, but it’s still one of the best e-readers on the market. The 300 DPI reader usually runs $120 with Special Offers (you know, screen saver ads), but this will get you in at well under $100.

Blink XT 1 Camera System ($75, $55 off regular price) – After picking up Blink earlier this year, Amazon’s offering some steep discounts off the smart camera line next week. The weatherproof system can run up to two years on AA batteries.

DJI Mavic Pro Fly More Combo ($999, $300 off regular price) – This is the first year the drone giant is participating in Amazon’s pretend holiday, and it’s going all in, with 10 different discounted packages. We’ve got a sneaking suspicion a new Mavic Pro is just around the corner, but in the meantime, DJI’s taking $300 of the first-gen combo pack for the foldable drone.

NVIDIA Shield TV ($139, $40 off regular price) – Shield TV streams Amazon and Netflix video in 4K HDR. The Android-based set top box is also capable gaming — this is NVIDIA, after all. Users can stream games from a PC or the cloud, via GeForce Now. There are also a number of exclusive Android gaming titles on-board for good measure.

razer phone

Razer Phone (Up to 25-percent off): The “deepest discount on Razer Phone to-date,” according to the company. No specifics on how much the $700 phone will be discounted — only that it will be up to a quarter off the full price. The Android handset has some beefy specs, in order to power a mobile gaming experience.

13 Jul 2018

Emptor looks to help companies more easily find contractors in the area

For any company looking to spin up some kind of operation in a new region, one of the first steps may be finding contractors in the area that can actually get the work started — but, especially as companies drift further from cities, that can increasingly become a nightmare that’s quite familiar to Matt Velker.

That led to he and his co-founder starting Emptor, a network to connect companies with local contractors in order to get those local projects off the ground effectively. That can range from actual construction to janitorial work or landscaping. A platform like Emptor seeks to take a lot of the ambiguity or guesswork out of finding a set of local companies to work with in order to get construction projects off the ground. It also adds a robust audit trail — ratings or otherwise — to ensure that the best contractors surface up and that everyone knows which ones they should skip.

“Every time you’re building

you have to find an entirely new set of suppliers,” Velker said. “Often in rural areas when there isn’t an saturation of contractors like there is in a large metro, that discovery process within a reasonable time frame was the biggest challenge. Especially within the construction industry, there’s a huge deviation in terms of the quality fo the companies you work with. We definitely had a lot of pains with unreliable contractors who weren’t getting the job done to spec or on time, or things that came close to fraud. It comes with the territory when you work with that volume of companies in a short period of time.”

Companies first go to Emptor and describe the projects they want and what kinds of pricing structure they are offering. Then, kind of like Thumbtack or other marketplaces, Emptor matches those projects up with qualified contractors and then compares those bids in order to select the best offer. It aims to be a replacement for the time spent searching around Yelp or Google, where there may be listings and pages but not a high volume of ratings — or ones that are even accurate to begin. Even after the search, getting the whole process started can take weeks, another period Emptor hopes to shrink by streamlining that process.

Right now Emptor mainly focuses on facilities and maintenance, though should something like this take off it could add other elements of contract work that companies need. The approach also aims to be more granular, giving companies more ways to identify the needs of the project that might not necessarily just be quantitative. After all, better data about a company’s actual needs that flows into some algorithm can produce better matching, and that can also go down to the actual way compensation would work on that project.

“Having just one number for what a project will cost is convenient from the supplier and buyer perspective, but it’s missing out on the ability to build structured data that you can analyze,” Velker said. “The companies are deciding, ‘what do I need to know, how many years have you done in business.’ You want to be explicit about how are we going to make this decision. If price is a factor, how much of a factor is it, so they can spec things out and there’s transparency to the buyers.”

But while it’s an attempt to try to bridge that gap between the company and a service provider, it’s one that many companies have tried to fill before. There are tools like Angie’s List and others for finding contractors, though Velker says those are primarily geared toward consumers — and some end up bending the apps in order to fill the needs they have for contractors without some kind of formal platform to use. Velker acknowledges the theory behind all these tools is pretty similar, though he hopes Emptor will be able to tackle the specific needs companies might have that he’s experienced himself.

13 Jul 2018

Sales of PCs just grew for the first time in six years

Don’t look now, but the PC might not be dead. According to Gartner, collector of marketshare and industry metrics, worldwide shipments of personal computers just experienced the first year-over-year growth since 2012. Shipments totaled 62.1 million units, which is a 1.4 percent increase from the same time period in 2017. The report states “experienced some growth compared with a year ago” but goes on to caution declaring the PC industry as in recovery just yet.

The top five PC vendors all experienced growth with Lenovo seeing the largest gains of 10.5% — though that could be from Lenovo completing a joint venture with Fujitsu. HP grew 6.1%, Dell 9.5%, Apple 3% and Acer 3.1%. All good signs for an industry long thought stagnate. This report excludes Chromebooks from its data. PC vendors experienced growth without the help of Chromebooks, which are the latest challenger to the notebook computer.

Gartner points to the business market as the source of the increased demand. The consumer market, it states, is still decreasing as consumers increasing use mobile devices. Yet growth in the business sector will not last, it says.

“In the business segment, PC momentum will weaken in two years when the replacement peak for Windows 10 passes.” said Mikako Kitagawa, principal analyst at Gartner said in the report. “PC vendors should look for ways to maintain growth in the business market as the Windows 10 upgrade cycle tails off.”

Consumers will likely continue, for the most part, to keep a computer around but since the web is the new desktop, the upgrade cycle for a causal user will keep getting longer. As long as a home has a computer that can run Chrome, that’s likely good enough for most people.

13 Jul 2018

MallforAfrica and DHL launch MarketPlace Africa global e-commerce site

MallforAfrica and DHL are giving African merchants a global stage. This week the online retailer and delivery giant launch MarketPlaceAfrica.com: an e-commerce site for select African artisans to sell wares to buyers in any of DHL’s 220 delivery countries.

The site will prioritize fashion items—clothing, bags, jewelry, footwear, and personal care—and crafts, such as pictures and carvings. MallforAfrica is vetting sellers for MarketPlace Africa online and through the Africa Made Product Standards association (AMPS), to verify made in Africa status and merchandise quality.

“We’re starting off in Nigeria and then we’ll open in Kenya, Rwanda and the rest of Africa, utilizing DHL’s massive network,” MallforAfrica CEO Chris Folayan told TechCrunch about where the goods will be sourced. “People all around the world can buy from African artisans online, that’s the goal,” said Folayan.

Current listed designer products include handbags from Chinwe Ezenwa and Tash women’s outfits by Tasha Goodwin.

In addition to DHL for shipping, MarketPlace Africa will utilize MallforAfrica’s e-commerce infrastructure. The startup was founded in 2011 to solve challenges global consumer goods companies face when entering Africa.

MallforAfrica’s payment and delivery system serves as a digital broker and logistics manager for U.S. retailers, who partner with MFA to sell their goods online to African consumers.

The venture has backing from UK private equity firm Helios Investment Partners and alliances with companies such as consumer electronics chain Best Buy and department store Macy’s.

In 2016 MallforAfrica partnered with eBay to launch the eBay Powered by MallforAfrica platform allowing U.S. vendors to sell in Africa. In 2017 eBay opened its U.S. platform to select sales from African vendors through MallforAfrica’s website.

Africa’s e-commerce space—expected to exceed $75 billion in revenue by 2025—has been one of the continent’s most active, with a number of well-funded startups focused on mastering mega-market Nigeria before expanding outward.

E-commerce minted the continent’s first unicorn in 2016, when Rocket Internet backed Jumia achieved a $1BN valuation after a $326M funding round that included Goldman Sachs.

Africa’s digital retail race produced one of the continent’s notable tech exits when Ringier acquired Nigerian startup DealDey in 2016.

E-commerce shops in Africa have also struggled to reach profitability—though after years of losses Jumia’s apparently getting closer. And digital retail on the continent has seen some big fails, namely the folding of South Africa’s Khalahari.com in 2015 and the distressed acquisition of Konga.com earlier this year.

MallforAfrica CEO Chris Folayan said his company does not release financial performance figures, but noted it now ships to 17 countries, averages a ton a day of goods shipped to Africa, and plans to grow by 3-4 times this year over 2017.

With MarketPlace Africa, Folayan sees an opportunity to open the sales channels both ways. “Our MallforAfrica platform is really about helping people in Africa buy products from places like the U.S., this is the return ticket for Africa’s products,” he said.

13 Jul 2018

Instacart taps Postmates to help with deliveries in SF during peak demand

Instacart has tapped Postmates to offer better delivery services during peak hours in a San Francisco pilot.

While Instacart will still handle all the shopping for its customers, it will hand off some deliveries to Postmates at times when there is high demand on the Instacart platform.

Postmates, obviously, has offered delivery-as-a-service for merchants and brands since its inception, and some of those brands, such as Walmart, offer their own delivery services. But this marks the first time that Postmates has offered delivery-as-a-service to a business that itself is already a delivery service.

This comes at a time when the grocery space is at an inflection point. Amazon’s nearly $14 billion acquisition of Whole Foods has spurred a race to offer quick and convenient grocery delivery from a number of the bigger players, such as Target and Walmart. On top of that, the grocery industry is highly fragmented, offering a huge opportunity for the catch-all of Instacart’s service.

But quantity means almost nothing without quality, and Instacart’s pilot with Postmates is meant to ensure that delivery times don’t lag in the late morning and early afternoon, when most Instacart orders are set to be delivered.

Instacart’s Northwest General Manager Michelle McRae explained that there is a load balance involved in the partnership with Postmates.

“Like many on-demand services, Instacart sees demand peaks on certain days and at certain times,” said McRae. “The pilot is a way to offer delivery during peak hours and utilize Postmates delivery staff at times where Postmates would be most underutilized. Instacart users overwhelmingly prefer mid-morning and mid-afternoon, where is different from when people want hot, prepared food.”

McRae also stressed that the pilot would not affect current Instacart shoppers or delivery contractors, as Postmates is simply offering delivery capacity during peak demand times.

Perhaps more interesting, Postmates sees a big opportunity to work with on-demand services in offering extra delivery either at or below the cost of hiring more delivery people.

“We definitely see this as a bigger part of Postmates’ future,” said Postmates SVP Dan Mosher. “Most brands are moving toward a world where they want to provide quick convenient delivery but they don’t have the capabilities. As we scale, we have the delivery density to drive economics in a really cost-effective way, not only to restaurants and retailers but to other on-demand services as well.”

He added that enterprise delivery services will never eclipse Postmates’ direct-to-consumer business.

The pilot is currently only going down in San Francsico, but Instacart said that it is considering expanding it to other geographies and other delivery services as the pilot continues. The deal is not exclusive, as Postmates is currently working with Walmart to help deliver their groceries to customers.