Year: 2019

11 Nov 2019

Watch live as SpaceX launches 60 Starlink satellites with a thrice-flown Falcon 9 rocket

SpaceX has a big launch coming up this morning from Cape Canaveral in Florida – a Falcon 9 will carry a payload of 60 of its Starlink orbital communications satellites to space at 9:56 AM ET (6:56 AM PT). The Starlink satellites are the first non-test group of SpaceX’s new constellation heading up en masse, with the aim of helping set up a network that will eventually provide global high-speed Internet connectivity.

SpaceX has already sent up 62 Starlink satellites in total, across two test batch launches: Two launched in February 2018 from Vandenberg in California, aboard a rocket that was also transporting a satellite called ‘Paz’ for a client, and 60 launched in May of this year, a large test batch that was used to trial ground-based communications, as well as controlled de-orbiting mechanisms. Of those 60, 57 satellites are still in orbit while 3 became non-operational after launch.

This mission will set up this new batch of 60 Starlink satellites in orbit, which feature increase spectrum capacity and construction that features 100% “demisability,” which means that at the end of their operating life they’ll burn up completely upon controlled re-entry to ensure there’s nothing left behind once they’re no longer in use. This is one of six launches of Starlink satellites that SpaceX says will lead up to the launch of its service across the U.S. and Canada, and one of 24 launches that will enable global high-bandwidth broadband service.

Besides setting up the foundation for its global satellite internet network, this launch is noteworthy from the perspective of SpaceX’s focus on re-usability. The first stage for the Falcon 9 used here previously flew on three separate missions, a record for a Falcon 9 booster in terms of re-use, and the fairing used to protect the payload also flew before on the Falcon Heavy Arabsat-6A mission launched earlier this year. SpaceX also plans to land the booster again, and it will attempt to recover the fairing once again using its sea-borne catcher vessels in the Atlantic.

The launch window at 9:56 AM ET is instantaneous, and SpaceX should begin broadcasting the live stream above about 15 minutes prior to that.

11 Nov 2019

OLX Group invests up to $400M in used car marketplace Frontier Car Group at $700M valuation

Frontier Car Group, the Berlin-based startup building used-car marketplaces targeting high-growth, emerging markets, has picked up another significant round of funding from a strategic backer also focusing on the same geographical opportunity.

Today, OLX, the online classifieds division Prosus (the digital division of Naspers that listed earlier this year in Europe) announced that it would invest up to $400 million in Frontier, in a mix of equity, secondary share acquisitions and existing business shares. The deal will include a primary capital injection of an unspecified amount, which OLX has confirmed to me values Frontier Car Group at $700 million, post-money.

In terms of business shares: OLX also said that it will be contributing its shares in a JV it had in place with Frontier in India and Poland. Meanwhile, the secondary acquisitions — the shares are currently held by other investors, founders and management — are subject to a tender process. The markets that Frontier operates in now include Nigeria, Mexico, Chile, Pakistan, and Indonesia, and the USA (where it acquired WeBuyAnyCar last year) in addition to India and Poland.

Notably, even before the full $400 million amount is exercised (that is, after the tender process is completed), an OLX spokesperson confirmed that first capital injection will make it Frontier’s largest single shareholder (but not the majority shareholder), which essentially values the deal at less than $350 million (based on the $700 million valuation).

Today, Frontier Car Group offers buyers and sellers a range of services: in addition to basic inventory listings, there are inspection reports, financial, pricing guides, warranties and insurance. The plan will be to expand more services for one of the key players in the used-car space, dealers — via Frontier’s Dealer Management System — more resale services (via OLX), and more CarFax/Blue Book-style pricing guides and other products.

It’s not clear how big the business is today (we’re asking) but as a point of reference, in May of last year, when the company raised $58 million, it had sold 50,000 cars to date and was on track for $200 million in annualised revenues, and CEO and cofounder Sujay Tyle says the company has been on a growth tear.

“FCG has nearly tripled performance across every key metric since the first OLX Group investment less than 18 months ago and has expanded to four new countries in that time,” said Sujay Tyle, the co-founder and CEO, in a statement. “This is a testament to FCG’s team, the ripe market opportunity, and the results of early integration with OLX in our key markets. Together with OLX and Prosus, we are aiming to revolutionize the used car market in several emerging and developed economies by adding trust, transparency and a comprehensive suite of services to all participants in the ecosystem.”

“Together with FCG, we are aiming to build the leading global used car marketplace, offering a premium and convenient service to millions of car buyers, sellers and dealers,” said Martin Scheepbouwer, CEO of OLX Group. “We’re in a unique position to accelerate the expansion of this platform worldwide. Our experience in India is a great proof of concept, where within the space of a year, our joint venture has already increased the number of stores threefold, with car purchase volumes continuing to grow by 10% month-on-month.”

This is the second time that OLX has invested in Frontier: in May 2018, Naspers had invested $89 million in the business, an investment that came just weeks after Frontier had raised $58 million from Balderton, TPG and others.

The deal underscores the longtime trend of consolidation in e-commerce businesses — something Prosus is also seeing played out in a completely different arena, that of food delivery.

The basics of the economy-of-scale principle, as applied to used car sales, goes something like this: economies of scale makes a platform more useful (there will be more cars on it, and less on competitors’ sites); but it also potentially means that Frontier would be making more transactions, thereby more revenues overall; and building and running more sales on the same platform improves the margins on the investment that gets made in building and operating that platform.

Targeting P2P used car sales in emerging markets is a big potential business: in part because of the nature of those economies, car owners are more likely to sweat out assets rather than go for buying completely new vehicles. OLX notes that combining the operations in Frontier’s footprint with those of the JV businesses that it is now taking over, plus OLX’s own business in Latin America, Asia and Poland, results in a market where some 30 million used cars are sold annually, “more than double that of China.”

11 Nov 2019

Prosus makes $6.3B hostile bid for Just Eat; Just Eat rejects deal in favor of Takeaway merger

As Amazon-backed Deliveroo expands into click-and-collect and procurement services to grow its footprint with restaurants in Europe, a food fight among three other takeout and delivery players continues apace in an ongoing consolidation march to compete better against the likes not just of Deliveroo but also Uber Eats and more.

Today, Prosus — the recently-listed arm of Naspers comprising its extensive online assets (including a significant stake in Tencent) — said that it would be willing to pay £4.9 billion ($6.3 billion) in cash for Just Eat, one of the big players in the food takeout and delivery market in Europe. The bid is a hostile one: Just Eat has been in the middle of working on a combination with Takeaway.com, another large competitor in the market; and today Just Eat wasted no time in asking its shareholders to reject the Prosus offer.

“The Board believes that Just Eat is a leading strategic asset in the food delivery sector and the Prosus Offer fails to appropriately reflect the quality of Just Eat and its attractive assets and prospects, the benefits of first mover advantage in a consolidating sector, and the significant future upside available to Just Eat shareholders through remaining invested in Just Eat and the Takeaway.com Combination,” it noted in a statement. “The Board of Just Eat believes that the Takeaway.com Combination is based on a compelling strategic rationale that will deliver a number of strategic benefits and greater value creation to Just Eat shareholders than the terms of the Prosus Offer. Accordingly, the Board of Just Eat continues to unanimously recommend the Takeaway.com Combination to Just Eat shareholders.”

Prosus’ offer, which works out to 710 pence per Just Eat Share, is 20% higher than Takeaway.com’s offer of 594 pence (which itself was at a premium to Just Eat’s share price).

The Takeaway offer has been months in the making and has had a number of twists and turns. The first announcement for a $10 billion merger was made in July, but in the interim Prosus made its first hostile offer, and so the deal switched to a takeover this month in hopes of securing shareholder agreement faster.

At stake for all players is the fact that the delivery business continues to be a fast-growing but very crowded field, with a number of players operating unprofitably and hoping for consolidation in order to improve their economies of scale and margins. If economies of scale and better margins is the rock, the competition is the hard place: all three have a strong and very highly capitalised set of a pair of competitors in the form of Uber Eats and Amazon-backed Deliveroo, with a number of smaller but also fast growing startups continuing to crowd the field.

Just Eat and Takeaway.com have already done some consolidating of other operations. The latter two have gobbled up different parts of DeliveryHero’s European business in recent times. Prosus, meanwhile, has a 22% stake in the remaining DeliveryHero business (outside of Europe), alongside stakes in India’s Swiggy and iFood in Latin America. This would mean that Prosus taking over Just Eat would be less about consolidation of European holdings, which could be one reason why Just Eat is less keen on the idea.

Takeaway.com has also issued a response to the news, noting that it’s the only one of the three that has working on building profitability into the business: it’s currently profitable in the Netherlands, its home market, and is on track to getting there in Germany (a track it believes it can continue with more scale).

“Given the circumstances, I can fully understand that the current cash values of both our and the competing offer aren’t particularly appealing to the Just Eat shareholders, and seem to be quite far removed from the fair value of Just Eat. We do however believe that the agreed merger ratio between Just Eat and Takeaway.com is appropriate,” noted Jitse Groen, CEO of Takeaway.com, in a statement. “Takeaway.com now operates in two out of the world’s four major profit pools. Including the UK, the Just Eat Takeaway.com combination will therefore operate in three out of the four major profit pools globally available. This in stark contrast with most other food delivery websites, which are loss-making, and in our opinion, will likely never become profitable.”

It seems that Naspers’ Prosus says that this is its last and final offer for Just Eat, but this is unlikely to be the final word on how food delivery and takeout will play out in Europe (or globally).

The market is still largely operating in the red globally — and even the most established players, like GrubHub, are not seeing much stability. And with about half a dozen giant players operating in different markets, and lots of capital riding on each of them, we’ll be seeing a number of deals and product expansions — for example the emergence of more “virtual” kitchens other added services such as restaurant procurement — before it’s all gravy for this industry.

11 Nov 2019

Deliveroo launches food orders for pick up

Don’t Deliveroo . The UK-based on-demand food delivery service has expanded into not actually delivering orders by offering users a pick-up option, called ‘Pickup’, as an alternative to paying a delivery fee and waiting in for lunch to arrive.

The new ‘click & collection’ service is live for 700+ eateries in 13 UK cities at launch: Aberdeen, Birmingham, Cardiff, Glasgow, Leeds, Liverpool, London, Manchester, Milton Keynes, Newcastle, Norwich, Nottingham and Edinburgh (Old Town). Restaurant brands signed up in the first wave include Byron, Pizza Express, Pizza Hut, TGI Friday’s, Frankie & Benny’s, Chiquito, Coast to Coast and Giraffe.

Deliveroo says it expects the pick-up service to grow rapidly, reckoning more than 10,000 restaurants will be offering it within the next 12 months — and doing so across the 200 UK towns and cities in which it currently operates. Albeit that’s just a prediction at this stage.

It’s not clear whether it also plans to add the ‘Pickup’ option in its international markets. (We’ve asked and will update if we get more.)

Deliveroo says the pick-up option is intended to widen customer choice with a cheaper option for users willing to collect a meal, potentially helping it to take a bite out of lunch money that could otherwise be spent at a supermarket.

At the same time it’s a way for the company to expand the order pipeline for restaurants that are signed up to its service — and in this scenario it’s acting merely as an ordering layer (but still taking a commission).

While customers picking up their own meals provides an additional revenue stream for Deliveroo’s platform that’s free from any legal or ethical risk attached to the employment status (and/or working conditions) of delivery couriers operating on its platform.

The pick-up option launch is the latest addition to a suite of b2b offerings Deliveroo serves up for signed up eateries.

These include a food procurement service; savings (badged as ‘perks’) on everyday business costs such as energy; a data service to support restaurant expansion; and ‘virtual brands’ — using demand data to feed new or complementary cuisines being offered from a restaurant’s existing kitchen.

Deliveroo says it expects growth for its business to step up sharply — anticipating signing up another 10,000 restaurants in the UK over the next 6 months, which would take the total it’s working with to 30,000.

Right now it operates in 500+ towns and cities across 13 markets in all, including Australia, Belgium, France, Hong Kong, Italy, Ireland, Netherlands, Singapore, Spain, Taiwan, United Arab Emirates, Kuwait as well as its home market of the UK.

Despite Deliveroo’s bullish talk of scaling in the UK, the food delivery space remains highly competitive in many global markets. And this summer the company announced it was exiting the German market, saying it would refocus resources and investment to accelerate growth and expansion in other markets across Europe and APAC.

In Europe consolidation has been the name of the recent game — with dominant platforms under pressure to increase choice and service offering to try to maintain an edge in key markets. So fast scaling in one market may be at the expense of any business at all in another.

Expansion into adjacent delivery markets is another strategy we’re seeing from regional on-demand delivery startups. For example Spain’s Glovo, which focuses on Southern and Eastern Europe, is working on a ‘dark supermarkets’ model to fuel high speed local grocery deliveries, while also dabbling in regional expansion on the food delivery front, with a major push (via acquisition) into Poland.

11 Nov 2019

Join Jeremy Johnson from Andela at Disrupt Berlin

Over the past few years, Andela has built a simple yet powerful answer to the talent shortage in Silicon Valley and other overheating tech ecosystems. The company helps you hire some of the most talented software developers in a handful of African cities. That’s why I’m excited to announce that Andela co-founder and CEO Jeremy Johnson is joining us at TechCrunch Disrupt Berlin.

Andela’s basic premise is that expertise is evenly distributed across the globe. And yet, the biggest tech companies are concentrated in a few places. More and more companies are now open to hiring remote employees and Andela is taking advantage of that.

The company makes it easy to find software engineers in no time. It screens applications and selects the best software engineers that can develop in Javascript (React.js, Angular.js), Python, Ruby, PHP and for the Android platform.

So far, 130,000 people have applied and Andela only accepted the top 1,000 engineers. The startup then tries to match your company with the best candidates for the job in order to facilitate onboarding. After that, you have a new team member.

With offices in Lagos, Nairobi, Kampala, Kigali, New York, San Francisco and Austin, Andela is trying to create a bridge between some of the most active tech communities in Africa and U.S.-based startups.

This isn’t Jeremy Johnson’s first startup. The young entrepreneur previously co-founded 2U, a software solution that helps schools and universities provide online degree programs. The company went public in 2014.

Buy your ticket to Disrupt Berlin to listen to this discussion — and many others. The conference will take place December 11-12.

In addition to panels and fireside chats, like this one, new startups will participate in the Startup Battlefield to compete for the highly coveted Battlefield Cup.

Jeremy Johnson is the CEO and Co-Founder of Andela, a company that builds high-performing, distributed engineering teams with Africa’s most talented software developers. Founded on the premise that brilliance is evenly distributed, Andela is solving the global technical talent shortage while catalyzing the growth of tech ecosystems on the African continent.

Prior to founding Andela, Jeremy co-founded 2U, one of the fastest growing education technology startups to date. 2U went public in 2014 (NASDAQ:TWOU) and continues to transform higher education by delivering the world’s best online degree programs with top tier universities.

Jeremy is recognized broadly for his work as an education innovator. He has spoken on education and entrepreneurship at meetings hosted by the White House and Congress. His speaking appearances include conferences and college campuses around the world as well as media outlets like NBC, ABC, FOX, and CNBC. Jeremy was named “30 Under 30” by Inc. Magazine in 2012 and Forbes in 2013 and 2014.

Outside of Andela, Jeremy serves on the board of the Young Entrepreneur Council and the education non-profit PENCIL and co-authored a book for the World Economic Forum: ‘Education & Skills 2.0: New Targets & Innovative Approaches.’

11 Nov 2019

A chat about UK deep tech and spin-out success with Octopus Ventures

New research commissioned by UK VC firm Octopus Ventures has put a spotlight on which of the country’s higher education institutions are doing the most to support spin outs. The report compiles a ranking of universities, foregrounding those with a record of producing what partner Simon King dubs “quality spin outs”.

The research combines and weights five data points — looking at university spinouts’ relative total funding as a means of quantifying exit success, for example. The idea for the Enterpreneurial Impact Ranking, as it’s been called, is to identify not just those higher education institutions with a track record of encouraging academics to set up a business off the back of a piece of novel work but those best at identifying the most promising commercialization opportunities — ultimately leading to spinout success (such as an exit where the company was sold for more than it raised).

Hence the report looking at data over almost a ten year period (2009-2018) to track spin-outs as they progress from an idea in the lab through prototyping to getting a product to market.

The ranking looks at five factors in all: Total funding per university; total spinouts created per university; total disclosures per university; total patents per university; and total sales from spinouts per university.

Topping the ranking is Queen’s University Belfast which the report notes has had a number of notable successes via its commercialization arm, Qubis, name checking the likes of Kainos (digital services), Andor Technology (scientific imaging) and Fusion Antibodies (therapeutics & diagnostics), all of whom have been listed on the London Stock Exchange.

The index ranks the top 100 UK universities on this entrepreneurial impact benchmark — but the rest of the top ten are as follows:

2) University of Cambridge
3) Cardiff University
4) Queen Mary University of London
5) University of Leeds
6) University of Dundee
7) University of Nottingham
8) King’s College London
9) University of Oxford
10) Imperial College London

Octopus Ventures says the ranking will help it to get a better handle on which universities to spend more time with as it searches for its next deep tech investment.

It also wants to increase visibility into how the UK is doing when it comes to commercializing academic research to feed further growth of the ecosystem by sharing best practice, per King.

“We are looking at a number of data points which are all self-reported by the universities themselves to the Higher Education Statistics Agency. And then we combine those in the way that we think brings out at a higher level which universities are doing a good job of spinning out companies,” he says.

“It means that you take into consideration which university is producing quality spin-outs. So it’s not just spray and pray and get lots of stuff out there. But actually which universities are creating spin-outs that then go on to return value back to them.”

11 Nov 2019

The post-exponential era of AI and Moore’s Law

My MacBook Pro is three years old, and for the first time in my life, a three-year-old primary computer doesn’t feel like a crisis which must be resolved immediately. True, this is partly because I’m waiting for Apple to fix their keyboard debacle, and partly because I still cannot stomach the Touch Bar. But it is also because three years of performance growth ain’t what it used to be.

It is no exaggeration to say that Moore’s Law, the mindbogglingly relentless exponential growth in our world’s computing power, has been the most significant force in the world for the last fifty years. So its slow deceleration and/or demise are a big deal, and not just because the repercussions are now making their way into every home and every pocket.

We’ve all lived in hope that some other field would go exponential, giving us another, similar, era, of course. AI/machine learning was the great hope, especially the distant dream of a machine-learning feedback loop, AI improving AI at an exponential pace for decades. That now seems awfully unlikely.

In truth it always did. A couple of years ago I was talking to the CEO of an AI company who argued that AI progress was basically an S-curve, and we had already reached its top for sound processing, were nearing it for image and video, but were only halfway up the curve for text. No prize for guessing which one his company specialized in — but it seems to have been entirely correct.

Earlier this week OpenAI released an update to their analysis from last year regarding how the computing power used by AI1 is increasing. The outcome? It “has been increasing exponentially with a 3.4-month doubling time (by comparison, Moore’s Law had a 2-year doubling period). Since 2012, this metric has grown by more than 300,000x (a 2-year doubling period would yield only a 7x increase).”

That’s … a lot of computing power to improve the state of the AI art, and it’s clear that this growth in compute cannot continue. Not “will not”; can not. Sadly, the exponential growth in the need for computing power to train AI has happened almost exactly contemporaneously with the diminishment of the exponential growth of Moore’s Law. Throwing more money at the problem won’t help — again, we’re talking about exponential rates of growth here, linear expense adjustments won’t move the needle.

The takeaway is that, even if we assume great efficiency breakthroughs and performance improvements to reduce the rate of doubling, AI progress seems to be increasingly compute-limited at a time when our collective growth in computing power is beginning to falter. Perhaps there’ll be some sort of breakthrough, but in the absence of one, it sounds a whole lot like we’re looking at AI/machine-learning progress leveling off, not long from now, and for the foreseeable future.


1It measures “the largest AI training runs,” technically, but this seems trend-instructive.

11 Nov 2019

Voi raises another $85M for its European e-scooter service

Voi Technology, the “micro-mobility” startup that operates an e-scooter service in a 38 cities across 10 European countries, has raised an $85 million in Series B funding.

Backing the round is a mixture of existing and new investors. They include Balderton Capital, Creandum, Project A, JME Ventures, Raine Ventures, Kreos Capital, Inbox Capital, Rider Global, and Black Ice Capital. The new funding brings the total raised by Voi to $136 million.

Eagled-eyed readers will have noticed that, based on our previous Voi coverage, the total figure is $32 million short. That’s because not all of Voi’s previous Series A commitment was cashed in after the company was offered more favourable terms for its $30 million Series A extension and therefore elected not to draw down the second tranche of its original Series A.

Launched in 2018, the company is best-known for its e-scooter rentals but now pitches itself as a micro-mobility provider, offering a number of different transport devices. These include various e-scooter and e-bike models, in a bid to become a broader transport operator helping to re-shape urban transport and wean people off using cars.

To date, Voi says it has 4 million registered users and has powered 14 million rides. More recently it has launched new, more robust hardware that has been designed to sustain the rigours of commercial e-bike sharing. The idea is that more suitable hardware will help e-scooter companies improve margins since more rides can be extracted from the life-span of each vehicle.

On that note, Voi says it will use the new funding to develop “strong profitable businesses” in the 38 cities where it is already operating, as well as increase its R&D spend to improve its technology platform and products. Earlier this year, the company announced that it is already profitable in the cities of Stockholm and Oslo.

“Clearly, we feel we are on track to achieve this in more of our cities and that is our aim,” Voi co-founder and CEO Fredrik Hjelm tells me. “At this point, a key focus for us is to ensure we continue to increase the lifetime of our e-scooters, forge key partnerships and continue to work in those cities which provide the best conditions for a profitable e-scooter business”.

Hjelm says that Voi’s version 2 scooters are projected to last over 18 months, which means the company should be in profit before it needs to raise again. However, he wouldn’t be drawn on when that might be.

With regards to R&D and improvements to the Voi platform, the company will continue to work on the lifetime of its e-scooters, in addition to improved repair management via integrating “predictive diagnostics”.

Hjelm also says Voi is developing “AI-powered” fleet management and more generally the platform’s capability to support future product portfolio expansion. In other words, we can expect new micro-mobility device categories in the future.

10 Nov 2019

China Roundup: facial recognition lawsuit and cashless payments for foreigners

Hello and welcome back to TechCrunch’s China Roundup, a digest of recent events shaping the Chinese tech landscape and what they mean to people in the rest of the world. This week, a lawsuit sparked a debate over the deployment of China’s pervasive facial recognition; meanwhile, in some good news, foreigners in China can finally experience cashless payment just like locals.

China’s first lawsuit against face scans

Many argue that China holds an unfair advantage in artificial intelligence because of its citizens’ willingness to easily give up personal data desired by tech companies. But a handful of people are surely getting more privacy-conscious.

This week, a Chinese law professor filed what looks like the country’s first lawsuit against the use of AI-powered face scans, according to Qianjiang Evening News, a local newspaper in the eastern province of Zhejiang. In dispute is the decision by a privately-owned zoo to impose mandatory facial recognition on admission control for all annual pass holders.

“I’ve always been conservative about gathering facial biometrics data. The collection and use of facial biometrics involve very uncertain security risks,” the professor told the paper, adding that he nonetheless would accept such requirement from the government for the purpose of “public interest.”

Both the government and businesses in China have aggressively embraced facial recognition in wide-ranging scenarios, be it to aid public security checks or speed up payments at supermarket checkouts. The technology will certainly draw more scrutiny from the public as it continues to spread. Already, the zoo case is garnering considerable attention. On Weibo, China’s equivalent of Twitter, posts about the suit have generated some 100 million views and 10,000 comments in less than a week. Many share the professors’ concerns over potential leaks and data abuse.

Scan and pay like a local

The other technology that has become ubiquitous in China is cashless payments. For many years, foreign visitors without a Chinese bank account have not been able to participate in the scan-and-pay craze that’s received extensive coverage in the west. But the fences are now down.

This week, two of the country’s largest payment systems announced almost at the same time that they are making it easier for foreigners to pay through their smartphones. Visitors can now pay at a selection of Chinese merchants after linking their overseas credit cards backed by Visa, MasterCard, American Express, Discover Global Network or JCB to Tencent’s WeChat Pay.

“This is to provide travelers, holding 2.6 billion Mastercard cards around the world, with the ability to make simple and smart payments anytime, anywhere in China,” Mastercard said in a company statement.

Alipay, Alibaba’s affiliate, now also allows foreign visitors to top up RMB onto a prepaid virtual card issued by Bank of Shanghai with their international credit or debit cards. The move is a boon to the large swathes of foreign tourists in China, which numbered 141 million in 2018.

Also worth your attention

Didi’s controversial carpooling service is finally back this week, more than a year after the feature was suspended following two murders of female passengers. But the company, which has become synonymous with ride-hailing, was immediately put in the hot seat again. The relaunched feature noticeably included a curfew on women, who are only able to carpool between 5 a.m. and 8 p.m. The public lambasted the decision as humiliating and discriminating against women, and Didi responded swiftly to extend the limit to both women and men. The murders were a huge backlash for the company, and it’s since tried to allay the concerns. At this point, the ride-hailing giant simply can’t afford another publicity debacle.

The government moves to stamp out monopolistic practices of some of China’s largest e-commerce platforms ahead of Single’s Day, the country’s busiest shopping festival. Merchants have traditionally been forced to be an exclusive supplier for one of these giants, but Beijing wants to put a stop to it and summoned Alibaba, JD.com, Pinduoduo (in Chinese) and other major retail players for talks on anti-competition this week.

Iqiyi, often hailed as the “Netflix of China,” reports widening net loss at $516.0 million in the third quarter ending September 30. The good news is it has added 25 million new subscribers to its video streaming platform. 99.2% of its 105.8 million user base are now paying members.

36Kr, one of China’s most prominent tech news sites, saw its shares tumble 10% in its Nasdaq debut on Friday. The company generates revenue from subscriptions, advertisements and enterprise “value-added” services. The last segment, according to its prospectus, is designed to “help established companies increase media exposure and brand awareness.”

09 Nov 2019

Can America ever rebuild its neighborhoods and communities?

We talk a lot about startup ecosystems around these parts, and for good reason. Strong ecosystems have great reservoirs of talent congregated close together, a culture built around helping one another on ambitious projects, and sufficient risk capital to ensure that interesting projects have the resources to get underway.

Strip off the ecosystem layer though, and you are left with the actual, physical manifestation of a city or region — its housing, its transportation and mobility options, and its infrastructure. And if Charles Marohn’s Strong Towns: A Bottom-Up Revolution to Rebuild American Prosperity is any indication, a whole heck of a swath of America has little hope of ever tapping into the modern knowledge economy or creating the kind of sustainable growth that builds “Strong Towns.”

Across the country, Marohn sees evidence of what he dubs a “Municipal Ponzi scheme.” Cities — armed with economic development dollars and consultants galore — focus their energies and budgets on new housing subdivisions as well as far-flung, auto-dependent office parks and strip malls, all the while ignoring the long-term debt, maintenance costs, and municipal burdens they are transferring to future generations of residents. “The growth creates an illusion of wealth, a broad, cultural misperception that the growing community is become [sic] stronger and more prosperous. Instead, with each new development, they become increasingly more insolvent,” the author writes.

He provides a multitude of examples, but few are as striking as that of Lafayette, Louisiana:

As one example, the city of Lafayette, Louisiana, had 5 feet of pipe per person in 1949. By 2015, that had grown to 50 feet, an increase of 1,000%. They had 2.4 fire hydrants per 1,000 people in 1949, but by 2015, they had 51.3. This is a 2,140% increase. Over the same period, median household income in Lafayette grew just 160% from an inflation-adjusted $27,700 to $45,000. And if national trends hold locally in Lafayette, which they almost certainly do, household savings decreased while personal debt skyrocketed. Lafayette grew its liabilities thousands of times over in service of a theory of national growth, yet its families are poorer.

The author contextualizes just how weird the modern American suburb and community is in the grand sweep of human history, where co-location, walkability, and human-scale density weren’t just norms, but necessities. The lack of thoughtful, dynamic planning that allows cities to adapt and evolve over time eventually comes to tear at the vitality of the town itself. “Only the richest country in the world could build so much and make such poor use of it.”

Marohn has spent decades in urban planning and also runs Strong Towns, a non-profit advocacy organization that tries to create more sustainable cities by attempting to guide the urban planning conversation toward better models of adaptable growth. He brings an authority to the topic that is heartening, and the book is absolutely on the right vector on how to start to think about urban planning going forward.

In addition to his discussions around municipal finance, he makes the critical connections between urban planning and some of the most pressing challenges facing America today. He notes how the disintegration of tight-knit communities has exacerbated issues like drug abuse and mental health, and how the focus on big-box retail development has undermined smaller-scale entrepreneurship.

Even more heartening in some ways is that the solutions are seemingly so easy. For example, one is to simply account for the true, long-term costs of infrastructure and economic development dollars, properly accounting for “value per acre.”

Yet, the flaws in the book are manifold, and I couldn’t help but shake my head on numerous occasions at the extent to which movements to improve urban planning always seem to shudder on the weight of reality.

Nowhere are those flaws more glaring than over the actual preferences of the residents of these cities themselves. As anyone who lives in San Francisco or Palo Alto understands, there is a serious contingent of NIMBYs who consistently vote against housing and density regardless of its effects on inequality or urban quality. Kim-Mai Cutler wrote one of the definitive pieces on this topic five years ago right here at TechCrunch, and yet, all these years later, the same dynamics still animates local politics in California and across the world.

The prescriptions offered in Strong Towns are not only correct, they are almost incontestable. “Instead of prioritizing maintenance based on condition or age, cities must prioritize based on financial productivity,” Marohn writes. Public dollars should be spent on the highest-impact maintenance projects. Who is really against that?

But, people are, as evidenced by city council meetings all across the United States and the simple ground truth that cities don’t spend their dollars wisely. Whether your issue is housing, or climate change, or economic development, or inequality, the reality is that residents vote, and their voices are heard. That leads to Marohn writing:

As a voter, as a property owner within a municipal corporation, as a person living cooperatively with my neighbors in a community, I can respect that some people prefer development styles that are financially ruinous to my city. My local government should not feel any obligation to provide those options, particularly at the price points people expect.

Yet, what should one do if 70-80% of a city’s voters literally want to jump off the proverbial cliff?

Ultimately, should cities be responsive to their own voters? If San Francisco refuses to build more transit-oriented development and in the process exacerbates the climate change literally setting the Bay Area on fire, shouldn’t the damn voters burn straight to the ground?

Marohn, who talks over several pages of his political evolution from Republican to complex libertarian communalist, never faithfully addresses this core problem with the Strong Towns thesis, or indeed, the entire activism around urban politics today. “American culture spends a lot of time debating what should be done, but hardly any time discussing who should make the decision,” he writes. But we do — we did — discuss who makes the decisions, and our political systems actively respond to those decision-makers: local voters.

American towns are in a perilous state – and that is precisely what people demanded and received. Marohn criticizes the planning profession for its lack of municipal sustainability, but seemingly is willing to substitute one group of far-flung experts with another to override the locals, presumably just with a different (better?) set of values.

In the final analysis, Strong Towns the book gets the fundamentals right. But will it change minds? I’m doubtful. It certainly doesn’t offer a clear guidebook on how local leaders can start to educate their neighbors and build the kinds of voter blocs required to get local, democratic change on these issues. Ultimately, the book feels like a smaller footnote to the worthy work of Strong Towns the organization, which ultimately will drive the activity needed to build change on these issues.