Year: 2019

26 Jan 2019

The state of the foldable

You’d be forgiven for being cynical. I’ve been seeing foldable display concepts for as long as I’ve been attending tech trade shows (which, quite frankly, is longer than I care to mention). Big names like Samsung and LG have been pumping countless R&D dollars into the technology in hopes of being first to next step in the evolution of the smart phone form factor.

The concept is nothing new, of course. The flip phone pre-dates the ubiquitous smartphone slab by decades. And a number of companies have tried to cheat the system. 2017’s Axon M was one of the more memorable attempts in recent memory — though that device amounted to little more than two screens jammed together on a hinge.

It bold and brash, but more than anything it was completely silly with an execution that left a lot to be desired. In my review, I called it “a fascinating mess.” But hey, ZTE deserves at least some credit for a run of products that attempted — with varying degrees of success — to buck the trend of samey smartphones.

There are plenty of reasons to be pessimistic about the state of technology in 2019, but I humbly offer you a beacon of light. This is the year smartphones become fun again. With their back to the corner, facing flagging sales, smartphone makers are taking leaps. Hell, it’s still January, and we’ve already caught a glimpse of what’s to compete.

At the front of the charger are foldables. That seems to be the term we’ve settled on for now — and it suits the category just fine. What convertibles were to the laptop category, foldables are to phones. True foldables require the display itself to do the folding, so devices can ostensibly transform from a one-handed smartphone to a larger tablet.

The Axon M didn’t fit the description for a number of reason, not the least of which was the gap between the two displays, which, quite frankly, made for a pretty crappy movie viewing experience, among others.

The first real foldable we’ve seen was a surprise contender. If the name “Royole” meant anything to you, prior to the Flex Pai, it was probably followed by the phrase “with cheese.” From the moment we first saw grainy footage of the handset, it was clear that being first and being best are rarely one and the same. “Folding screens are here,” I wrote at the time, “and they look crappy.”

I got some time with an updated version of the handset about a month later in China, and reappraised my initial impressions a bit. Even still, the Flex Pai didn’t and doesn’t strike me as much more than a little known company’s push bid to make a name for itself simply by being first.

Romain spent a bit more time with the device at CES, and appears to have come to similar conclusions. Royole does get credit for actually making the device a reality — even if it’s one that’s more developer focused than consumer. That does, of course, speak to a broader issue around usability.

It was a cause Google was happy to take up in November, when the company announced Android support for foldable displays. Like the notch before it, Google was attempting to get out ahead of the looming trend.

Here’s how Android VP Dave Burke described the category at the time, “You can think of the device as both a phone and a tablet, Broadly, there are two variants — two-screen devices and one-screen devices. When folded, it looks like a phone, fitting in your pocket or purse. The defining feature for this form factor is something we call screen continuity.”

It’s going to be fascinating to see if the industry coalesces around a single form factor here. The Flex Pai is one of the simpler ones — essentially operating like a sheet of paper that (somewhat awkwardly) folds in half so you can slip it in your pocket.

The same day that Google announced Android support, Samsung (briefly) showed off its own version of the technology. In the whooping 45 seconds the company devoted to it during a its two-hour keynote, we caught a glimpse of what looks to be an early prototype. Here, the device sports a display on the outside and unfolds to reveal a larger display within.

The “Infinity Flex Display” appeared at first glance to be more sophisticated than Royole’s — but “glance” is really the operative word here. It was a big, blocky prototype that we’ll be hearing more about at Unpacked next month.

Earlier this week, meanwhile, Xiaomi debuted what’s since come to be regarded as the most advanced of the bunch, but like Samsung, we only got a glimpse. And here it was in a much more controlled environment of a short, pre-recorded clip and extremely low resolution. That said, “the world’s first ever double folding phone” looks like a thing out of a sci-fi film.

The company, telling, tossed around the word “prototype” quite liberally there.

And then there’s Huawei. Mobile Chief Richard Yu highlight plans to announce a 5G folding phone at Mobile World Congress next month. As ever, details are scarce. Same goes for Motorola’s Razer, a $1,500 folding throwback, which is firmly in the rumor stages.

If that price point gives you pause, well, get used to it. The Flex Pai is already available at $1,300, and most other handsets are appear on track to hit roughly the same price point, making the latest iPhone and Samsung Galaxy devices look like a downright bargain.

26 Jan 2019

Startups Weekly: Is Munchery the Fyre Festival of startups?

It was a tough week. Journalists around the U.S. were hit hard by layoffs, from HuffPost to BuzzFeed News to Verizon Media Group, which owns this very site. The government entered day 35 of the shutdown before President Donald Trump agreed to a short-term deal to reopen it for three weeks. And in the startup world, a once high-flying, venture-subsidized food delivery startup crashed and burned, leaving a cluster of small businesses in its wreckage.

Some good things happened too — we’ll get to those.

  1. Munchery fails to pay its debts

In an email to customers on Monday, Munchery announced it would cease operations, effective immediately. It, however, failed to notify any of its vendors, small businesses in San Francisco that had supplied baked goods to the startup for years. I talked to several of those business owners about what they’re owed and what the sudden disappearance of Munchery means for them.

  1. #Theranos #Content

If you haven’t read John Carreyrou’s “Bad Blood,” stop reading this newsletter right now and go get yourself a copy. If you love to read, watch and listen to the Theranos saga as much as I do, you’ll be glad to hear there’s some fresh Theranos content released to the world this week. Called “The Dropout,” a new ABC documentary and an accompanying podcast about Theranos features never-before-aired depositions. Plus, TechCrunch’s Josh Constine reviews the Theranos documentary, “The Inventor,” which premiered at the Sundance Film Festival this week.

  1. Deal of the week

Confluent, the developer of a streaming data technology that processes massive amounts of information in real time, announced a $125 million Series D round on an enormous $2.5 billion valuation (up 5x from its Series C valuation). The round was led by existing investor Sequoia Capital, with participation from other top-tier VCs Index Ventures and Benchmark.

  1. Wag founders ditch dogs for bikes

Jonathan and Joshua Viner, the founders of the SoftBank-backed dog walking startup Wag, launched Wheels this week, an electric bike-share startup with a $37 million funding from Tenaya Capital, Bullpen Capital, Naval Ravikant and others.

  1. Go-Jek makes progress on a $2B round

Indonesia-headquartered Go-Jek has closed an initial chunk of what it hopes will be a $2 billion round after a collection of existing investors, including Google, Tencent and JD.com, agreed to put around $920 million toward it, according to TechCrunch’s Southeast Asia reporter Jon Russell. The deal, which we understand could be announced as soon as next week, will value Go-Jek’s business at around $9.5 billion.

  1. Knowledge center

There’s been a lot of chatter around direct listings since Spotify opted to go public via the untraditional route in 2018, but what exactly is a direct listing… We asked a panel of six experts: “What are the implications of direct listing tech IPOs for financial services, regulation, venture capital and capital markets activity?” 

Here’s your weekly reminder to send me tips, suggestions and more to kate.clark@techcrunch.com or @KateClarkTweets

  1. Contraceptive deserts

Through telemedicine and direct-to-consumer sales platforms, startups are streamlining the historically arduous process of accessing contraception. The latest effort to secure a significant financing round is The Pill Club, an online birth control prescription and delivery service. This week, the consumer-focused investor VMG Partners led its $51 million Series B. 

  1. More startup cash
  1. Fundraising activity

Sunil Nagaraj spent years investing in startups at Bessemer Venture Partners, but he was itching to meet with younger companies and strike out on his own. So in the summer of 2017, he did, and now, Nagaraj said he’s closed Ubiquity Ventures’ debut fund with $30 million. March Capital Partners, the Los Angeles-based venture capital firm, raised $300 million for its latest fund. Plus, Zynga founder Mark Pincus is reportedly raising up to $700 million for a new investment fund, called Reinvent Capital, that will focus on publicly traded tech companies in need of strategic restructuring.

  1. Finally, meet the startups in Alchemist’s 20th cohort

A mental health startup, a construction tech business and a fintech company, among others. Take a quick look at the startups that just completed Alchemist’s six-month accelerator program.

  1. Listen to me talk

If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Crunchbase editor-in-chief Alex Wilhelm, TechCrunch’s Silicon Valley editor Connie Loizos and I chatted about Munchery’s downfall, The Pill Club’s mission to make birth control more accessible and the VC slowdown in China.

 

25 Jan 2019

The Predictive Index brings in $50M to help businesses create winning teams

Funding will get you a long way, but people, at the end of the day, are the key to a successful business.

The Predictive Index, which develops behavioral and cognitive employee assessments, has raised a $50 million round of growth-stage capital from venture capital firm General Catalyst to help companies choose the right talent.

Kirk Arnold, an executive-in-residence at General Catalyst and new Predictive Index board member, led the deal for the VC firm, which says the round is the largest first check they’ve ever written a company. Predictive Index declined to disclose the valuation.

The workplace analytics service was founded in 1955, making it just a bit older than your typical growth-stage business. Current chief executive officer Mike Zani (pictured, right) acquired the company in 2014 with Predictive Index president and chairman Daniel Muzquiz (pictured, left). Prior to the acquisition, the pair were clients of the business.

With the infusion of VC funding, Zani said he’ll double employee headcount, create a playbook on how to “successfully design, hire and inspire winning teams” and create a talent optimization industry conference, amongst other big plans.

“Most companies are losing the talent war, and not because of the lack of fight, but rather because strategic talent strategies are non-existent or broken,” Zani told TechCrunch. “The irony is that talent is one of the only lasting differentiators in business today. Most tools in the marketplace help with process or tactical aspects of people and ignore the strategic. At [Predictive Index] we offer the strategic talent discipline, or talent optimization, to the hands of those who want to use talent as a business performance lever.”

Headquartered in Boston, Predictive Index says it counts some 7,000 customers in 142 countries, including Nissan, DocuSign and Blue Cross Blue Shield.

“This year, low unemployment and high turnover will further magnify the importance of talent,” Arnold said in a statement. “Having a talent strategy which aligns and supports business strategy is a requirement for any business to be successful.”

25 Jan 2019

Bioware’s ambitious Anthem is off to a rough start as players bring servers to their knees

The gaming world is excited to play for Anthem, Bioware’s answer to Destiny and other big-budget online shooters — but an exclusive preview weekend for the mech-flying game has struggled to get off the ground. Of course, it wouldn’t be a game launch these days without a few hiccups to spice things up, but it is a little embarrassing.

The 40-gigabyte demo was made available today to those who had pre-ordered the game, as well as press and other “VIPs.” The game, announced last year at E3, is a loot-focused shooter where you pilot mechs through a huge open world, engage in cooperative combat and exploration and all that.

At least, so they say. Reports immediately came flooding in on forums and social media that not only was Origin, the service on which the demo is offered, failing to function properly, but that the game itself wasn’t connecting to servers, or if it did, wouldn’t load beyond the intro sequence.

I encountered this myself; after eventually getting loaded and logged in, I managed to get into the starting town area where you will, in the full game, upgrade your gear, accept quests, and so on. But when I attempted to launch the first mission or otherwise enter the actual game world, the loading bar would stop about 95 percent of the way done and stay there forever (I waited about five minutes and reloaded a couple times to make sure it wasn’t just my aging rig). Those who made it all the way in complained of lag and glitches.

No one really ever expects a major title, especially one with a major online components to launch even in a limited way without a few speed bumps, but something like this can really put the brakes on a hype train. Publisher EA admitted to the laundry list of issues from a support Twitter account:

Funnily enough EA Help’s own servers were having trouble as well, so not only could people not play Anthem, they couldn’t report that they couldn’t play Anthem.

Patience is a necessary virtue in today’s AAA game launches, but the people hoping to play this weekend aren’t randos but paying customers; this preview demo weekend was supposed to be a pre-order bonus, but the first day is a bust so far. Considering Bioware and EA knew exactly how many players could be trying to connect today — and those numbers are likely far less than those who will try the open beta or connect on launch day — it’s rather odd that they were seemingly caught so off-guard.

Anthem is certainly promising and the developers have gone out of their way to assure players that many of the hated practices of online games these days would not find a home on their platform. But launch problems always jar the confidence of undecided buyers, and there’s almost no question that the game will be better a month or two after its actual debut. Launch numbers could be affected by players not believing the game is ready to play, and therefore not being willing to pay.

I fully anticipate these issues getting resolved at some point soon, however, and will collect my impressions of the game in a separate post when that happens.

25 Jan 2019

Tinder agrees to settle age discrimination lawsuit

Tinder recently agreed to settle a $23 million class-action age discrimination lawsuit. The lawsuit, filed last April in California, alleged Tinder charged people over 30 years old twice the amount for its subscription services.

The class consists of every person 29 years of age or older at the time who subscribed to Tinder Plus or Tinder Gold between March 2, 2015 and the date of preliminary approval, according to the proposed order granting motion for preliminary approval of the class-action settlement.

“Under the Settlement, Defendants agree to a multifaceted Settlement structure, which includes a universal participation component (automatic benefits to all Class Members);” the settlement states. “An additional cash or cash-equivalent payout to Class Members who submit timely valid claims; and an agreement to substantially halt Defendants’ allegedly discriminatory practices going forward.”

Filed on behalf of about 230,000 class members, each person will be able to receive either $25 in cash, 25 additional Super Likes or a one-month subscription to either Tinder Plus or Tinder Gold. As part of the settlement, Tinder must distribute $11.5 million to all class members, as well as $5.75 million in potential cash or cash-equivalents (e.g. Super Likes) to every class member who submits a claim.

Tinder has also agreed to stop charging people — just those located in California — different prices based on their age. That carries a value of at least $5.75 million, according to the settlement. In total, this amounts to a $23 million settlement.

I’ve reached out to Tinder and will update this story if I hear back. In the meantime, feel free to check out the settlement below.

25 Jan 2019

Trump agrees to reopen the federal government through mid-February

On Friday, President Trump announced his intentions to back off of his demand for border wall funding, allowing the federal government to reopen for three weeks through February 15. The president touted the decision to reopen the government as a deal in spite of his failure to obtain a multi-billion-dollar agreement toward a physical perimeter for the southern border.

At 35 days, the federal shutdown has been the lengthiest to ever grind the U.S. government to a halt. Under the current terms of the proposal, the federal government would re-open, bringing hundreds of thousands of federal employees back to work, as negotiations around a border wall compromise take place. It would also provision back pay for the roughly 800,000 federal workers who have missed paychecks as part of the ordeal.

The Senate is expected to bring the proposal to reopen the government to a vote soon, with the House likely to quickly follow suit. While Trump’s decision on Friday shows the president backing down, he again raised the spectre of declaring a national emergency if his demands are not met.

Often framed as a political standoff between House Speaker Nancy Pelosi and the president, the shutdown resulted in far-reaching potential consequences for American safety, from unpaid TSA agents to understaffed intelligence agencies unable to monitor and respond to ongoing cybersecurity threats.

Though less consequential, companies have also seen their IPO plans put on ice, waiting out the shutdown to see how to proceed. Even with the government poised to reopen, the SEC remains clogged up with a pile of IPO filings that must be processed before companies can move forward with their plans, making for an unpredictable landscape for companies like Uber, Lyft, Cloudflare and other big-name anticipated 2019 IPOs. Even with the government reopening, a three-week window might not offer enough stability for companies eager to set the paperwork into motion.

Between lapsed cybersecurity and derailed IPO timelines, it may be some time before we know the true damage that the nearly month-long shutdown caused, but the implications will likely stretch well beyond the considerable emotional and financial toll on workers and their families.

25 Jan 2019

Pentagon stands by finding of no conflict of interest in JEDI RFP process

A line in a new court filing by the Department of Defense suggests that it might reopen investigation into a possible conflict of interest interest in the JEDI contract RFP process involving a former AWS employee. The story has attracted a great deal of attention in major news publications including the Washington Post and Wall Street Journal, but a Pentagon spokesperson has told TechCrunch that nothing has changed.

In the document, filed with the court on Wednesday, the government’s legal representatives sought to outline its legal arguments in the case. The line that attracted so much attention stated, “Now that Amazon has submitted a proposal, the contracting officer is considering whether Amazon’s re-hiring Mr. Ubhi creates an OCI that cannot be avoided, mitigated, or neutralized.” OCI stands for Organizational Conflict of Interest in DoD lingo.

When asked about this specific passage, Pentagon spokesperson Heather Babb made clear the conflict had been investigated earlier and that Ubhi had recused himself from the process. “During his employment with DDS, Mr. Deap Ubhi recused himself from work related to the JEDI contract. DOD has investigated this issue, and we have determined that Mr. Ubhi complied with all necessary laws and regulations,” Babb told TechCrunch.

She repeated that statement when asked specifically about the language in the DoD’s filing. Ubhi did work at Amazon prior to joining the DoD and returned to work for them after he left.

The Department of Defense’s decade-long, $10 billion JEDI cloud contract process has attracted a lot of attention, and not just for the size of the deal. The Pentagon has said this will be a winner-take-all affair. Oracle and IBM have filed formal complaints and Oracle filed a lawsuit in December alleging among other things that there was a conflict of interest by Ubhi, and that they believed the single-vendor approach was designed to favor AWS. The Pentagon has denied these allegations.

The DoD completed the RFP process at the end of October and is expected to choose the winning vendor in April.

25 Jan 2019

New iPad mini and entry-level iPad are around the corner

Apple has registered new iPad models in the Eurasian Economic Commission reference database. The Moscow-based commission keeps a product database pretty much like the FCC in the U.S. And it sounds like Apple is about to launch a new iPad mini 5 and an updated entry-level iPad.

That database has shown information on new Apple products in the pastMySmartPrice first discovered today’s new filings. There are two different filings that both mention new tablets that run iOS 12.

The first filing mentions five different models while the second one mention two different models. Usually, each configuration gets a different model number depending on storage and LTE capabilities.

It lines up with previous rumors that mentioned a new iPad mini and a new cheap iPad for early 2019. Ming-Chi Kuo expects an updated iPad mini with a 7.9-inch display. The device hasn’t been updated for years and many believed that Apple would stop updating it. But if you still like that form factor, Apple may have something new for you.

When it comes to the normal size iPad, Apple last updated the 9.7-inch iPad in March 2018. While all eyes are on the iPad Pro, many people are still looking for the cheapest iPad they can get. And the $329 9.7-inch iPad is a good deal. Apple usually update that model every year.

Today’s filings don’t say what those devices will look like unfortunately. It’s unclear if Apple is going to reduce the bezels of those devices, add a Face ID sensor and switch to USB-C.

25 Jan 2019

Daily Crunch: Facebook is shutting down Moments

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here:

1. Facebook is shutting down Moments; here’s how to save all your photos

Facebook Moments, the standalone mobile app designed to let users privately share photos and videos, is shutting down next month. The reason is simple: Not many people used it.

For those who did use it, there are two export options. One will create a private album on their Facebook account; the other option downloads everything to their device.

2. StarCraft II-playing AI AlphaStar takes out pros undefeated

AlphaStar is different from the traditional StarCraft AI. It learned from watching humans play at first, but soon honed its skills by playing against facets of itself.

3. Theranos documentary review: The Inventor’s horrifying optimism

The documentary that premiered yesterday at the Sundance Film Festival explores how the move-fast-and-break-things ethos of Silicon Valley is “really dangerous when people’s lives are in the balance,” as former employee and whistleblower Tyler Shultz says in the film.

4. Facebook to encrypt Instagram messages ahead of integration with WhatsApp, Facebook Messenger

As first reported by The New York Times, the social media giant said it’s reworking the underlying infrastructure of its three messaging apps to allow users to talk to each other more easily.

5. Smartphones are about to get more interesting, but is it enough to drive growth?

The mobile industry is at a crossroads.

6. Microsoft acquires Citus Data

Citus Data is focused on making PostgreSQL databases faster and more scalable. Microsoft says it will work with the team to “accelerate the delivery of key, enterprise-ready features from Azure to PostgreSQL and enable critical PostgreSQL workloads to run on Azure with confidence.”

7. Ultima Thule shows its lumps in latest images from New Horizons flyby

The latest image from the New Horizons probe shows the rocky world of Ultima Thule in considerably greater detail.

25 Jan 2019

Airbnb acquires Denmark’s Gaest to expand in bookings for meetings and offsites

Airbnb, now valued upwards of $30 billion and inching to an IPO possibly as early as this year, has made an acquisition to continue to diversify its revenues beyond basic booking services for overnight accommodations in private homes. It has acquired Gaest, a startup out of Aarhus, Denmark that provides a marketplace-style platform for people to post and book venues in hourly or daily increments for meetings and other work-related events like offsites in Europe and elsewhere.

Gaest’s team — it was founded in 2015 by Anders Boelskifte Mogensen (the CEO), Chris Kjær Sørensen, Christian Schwarz Lausten and Jonas Grau Sigtenbjerggaard — will be joining Airbnb and will report to President of Homes Greg Greeley. Airbnb says the service — which currently has listings for some 3,000 venues from hotels to co-working spaces and other rooms — will remain operational on its own platform “for the foreseeable future”. It’s not clear if the Gaest brand will remain as a part of that.

“We’re thrilled to join one of the world’s most innovative companies and become an integral part of their mission to make it easier for professionals to feel a sense of belonging at work,” said Mogensen in a statement. “Our dream from day one has been to make it easier, faster, and more cost-effective to list, discover, and book unique spaces that spark creativity, motivate interaction and encourage knowledge sharing.”

Terms of the deal are not disclosed but we are trying to find out. According to Crunchbase, Gaest had raised $3.5 million.

The acquisition points to two strategic developments at Airbnb, both aimed at helping the company diversity and grow its revenues.

The first is that it will build on Airbnb’s expansion into services for the business market.

This is an area where Airbnb has already been building inroads: it’s had a program in place since last year called Airbnb for Work, aimed at the business travel market and booking accommodations for business travellers, and it says that to date some 700,000 companies have seen employees sign up and book accommodation through the programme.

Even before that, Airbnb had inked partnerships with corporate travel apps like Concur that are standard tools in large enterprises, so that its listings can also be discoverable alongside more classic hotels. That’s before you consider the number of people who may be booking on Airbnb for work trips but using their personal accounts to do so.

The idea of Airbnb for Work also taps into the trend of “consumerization” and how it has played out in the world of business travel. While some people will prefer to stay in business hotels and the amenities that come with that, others will opt for more individualised options that tap into local life.

That’s before you consider the average price differences between the two, where business hotels tend to reach into premium price points and Airbnb homes tend to come at a wider range of prices. To be sure, Airbnb is not the only one eyeing up ways of serving business users with their travel and meeting needs. A number of startups like 2nd Address and Homelike have sprung up to address the growth of business travellers looking for Airbnb-style options instead of business hotels for longer-term work trips.

And you can’t not consider the competitive threat here also from We (FKA WeWork), which had its start in co-working and meeting spaces, but now has ambitions to extend into providing space to companies and business types to cover other needs like sleeping and more. Like Airbnb, it’s also going to be working hard to expand and diversify its business to capture more revenues from existing and new customers.

And this leads to the second area where Gaest will help Airbnb: providing more value to existing and future hosts on the platform.

Today, the mainstay of making money on Airbnb if you’re a host is to offer your house for overnight stays. But Airbnb has been adding options beyond that, for example by giving hosts the chance to offer paid experiences to visitors, to help them increase their options for monetizing guests.

Homes head Greeley, Airbnb notes, is “leading a robust and aggressive plan to both support the hosts who have always powered Airbnb and expand our accommodation and service offerings into new areas.”

Airbnb noted in September 2018 that informally, some business users had already started to use Airbnb for Work to book homes for offsites. This Gaest acquisition could help formalise some of that by providing a platform for Airbnb hosts to list their homes specifically for this use case, and of course a pool of potential customers to make bookings.

“We imagine a world where anyone can share their space for professional events and, in the longer term, for celebrations,” said David Holyoke, Global Head of Airbnb for Work, in a statement. “Bringing in a leadership team with strong domain knowledge allows us to accelerate our work in this area, and more importantly Gaest.com and Airbnb share a vision of helping every space owner become entrepreneurs through sharing their spaces with those who need it.”