Year: 2019

27 Aug 2019

Airship acquires A/B testing company Apptimize

Airship announced today that it has acquired Apptimize, an A/B testing company whose customers include Glassdoor, HotelTonight and The Wall Street Journal.

Formerly known as Urban Airship, the more concisely-named Airship has built a platform for companies to manage their customer communication across SMS, push notifications, email, mobile wallets and more.

It says that by acquiring Apptimize, it can help customers test the impact of their messages. That means integrating Apptimize’s testing capabilities into the Airship platform, but the company says it will also continue to support Apptimize as a standalone platform.

“By combining Apptimize mobile app and web testing with Airship’s deep insight into customer engagement across channels, marketers and developers can focus innovation on the most critical areas while creating the seamless end-to-end experiences customers really want,” said Airship President and CEO Brett Caine in a statement.

The financial terms of the acquisition were not disclosed. Apptimize had raised a total of $18.6 million from US Venture Partners, Costanoa Venture and others, according to Crunchbase.

Airship says it will be bringing over 19 Apptimize team members (a little under two-thirds of the startup’s total workforce) across engineering, customer service and sales.

27 Aug 2019

Peloton files publicly for IPO

Peloton, the well-funded maker of high-tech bikes and treadmills, has revealed documents for its upcoming initial public offering. The business previously submitted a confidential draft submission of its S-1 statement to the U.S. Securities and Exchange Commission in June.

The company will trade on the Nasdaq under the ticker symbol PTON.

Peloton reported $915 million in total revenue for the year ending June 30, 2019, an increase of 110% from $435 million in fiscal 2018 and $218.6 million in 2017. Its losses, meanwhile, hit $245.7 million in 2019, up significantly from a reported net loss of $47.9 million last year.

Peloton, founded in 2012, raised $550 million in venture capital funding last year at a valuation of $4 billion. The startup, which initially struggled greatly to convince venture capitalists of its vision, has since inspired a new wave of fitness tech companies to launch, including a smart mirror company appropriately named “Mirror.”

In total, Peloton has raised $994 million in venture capital funding, according to PitchBook. Its S-1 filing lists CP Interactive Fitness, TCV, Tiger, True Ventures and Fidelity as principal stakeholders, or investors with at least a 5% stake in the company.

This story is developing.

27 Aug 2019

AR mapping startup 6D.ai expands platform as it exits beta

World-mapping computer vision startup 6D.ai is expanding support to new devices as its augmented reality platform exits beta.

The SF startup launched its beta in October and is now ready to let developers ship apps as it launches pricing for its services. The fixed subscription rates for 6D vary from $20-$50 per app based on the number of map download calls that users prompt. 6D will have custom-pricing for customers ushering in more than 50k map downloads.

The startup boasts Autodesk, Nexus Studios, Accenture among its customers.

The company’s platform has previously been confined to iOS devices but today, 6D announced that it is launching private beta support for Android phones and lightweight headsets.

Moving to the fractured Android platform presents more challenges than iOS, but 6D is beginning the rollout with recent ARCore-supported Samsung devices. The company plans to support all ARCore devices running Snapdragon 845 chips and newer.

The company is also announcing a partnership with Qualcomm, which is integrating the company’s tech into what basically seems to be a reference design for AR headset manufacturers. Headsets are a ways from being a central use case for the company’s technology but 6D is pursuing early partnerships to ensure that future hardware plays nicely with their platform. They have also partnered with Chinese headset-maker Nreal.

27 Aug 2019

U.S. border officials are increasingly denying entry to travelers over others’ social media

Travelers are increasingly being denied entry to the United States as border officials hold them accountable for messages, images and video on their devices sent by other people.

It’s a bizarre set of circumstances that has seen countless number of foreign nationals rejected from the U.S. after friends, family, or even strangers send messages, images, or videos over social media sites like Facebook and Twitter, and encrypted messaging apps like WhatsApp, which are then downloaded to the traveler’s phone.

The latest case saw a Lebanese national and would-be Harvard freshman denied entry to the U.S. just before the start of the school year.

Immigration officers at Boston Logan International Airport are said to have questioned Ismail Ajjawi, 17, for his religion and religious practices, he told the school newspaper The Harvard Crimson. The officers who searched his phone and computer reportedly took issue with his friends’ social media activity.

Ajjawi’s visa was canceled and he was summarily deported — for someone else’s views.

The United States border is a bizarre space where U.S. law exists largely to benefit the immigration officials who decide whether or not to admit or deny entry to travelers, and few protect the travelers themselves. Both U.S. citizens and foreign nationals alike are subject to unwarranted searches and few rights to free speech, and many have limited access to legal counsel.

That has given U.S. border officials a far wider surface area to deny entry to travelers — sometimes for arbitrary reasons.

On a typical day, U.S. Customs & Border Protection processes 1.13 million passengers by plane, sea and land and deny entry to over 760 people. Sometimes a denial is clear, such as a past criminal conviction or the wrong documentation. But all too often, no specific reasons are given, and there are no grounds to appeal.

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A U.S. immigration form describing why a traveler was denied entry to the U.S. (Image: Abed Ayoub/Twitter)

CBP also claims to have what critics say is broadly unconstitutional powers to search travelers’ phones — including those of U.S. citizens — at the border without needing a warrant. Last year, CBP searched 30,000 travelers’ devices — close to four times the number from three years prior — without any need for reasonable suspicion.

Complicating matters, the Trump administration in June began to demand that foreigners who apply for U.S. visas disclose their social media handles and profiles. Some 15 million are expected to fall under the new rule.

Summer Lopez, senior director of free expression programs at PEN America, a human rights nonprofit, said in a statement that the immigration policy on social media “demonstrates all too well the damage these ill-conceived policies can do.”

“That should not be the price of entrance to the U.S., let alone that one’s friends should have to censor themselves as well,” said Lopez.

But Ajjawi’s denied entry is not an isolated case.

Abed Ayoub, legal and policy director at the American-Arab Anti-Discrimination Committee, said device searches and subsequent denials of entry had become the “new normal” over the past year.

“We hear about this happening to Arab students and Muslim students coming into the U.S. today,” he told TechCrunch. Although all travelers are subject to having their devices searched, Ayoub said the government was “holding [the Arab and Muslim] community to a different level” than other backgrounds.

Ayoub said he’s had clients that have been turned away at the border for content found in their WhatsApp messages.

“It’s probably the most popular app in the Middle East,” he said. Because WhatsApp automatically downloads received images and videos to a user’s phone, any questionable content — even sent unsolicitedly — under a border official’s search could be enough to deny the traveler entry.

In one tweet, Ayoub posted a photo of an expedited removal form from one of his clients — also a student with U.S. visa — who was denied entry for an image he received in a WhatsApp group. The student strenuously denied any personal connection to the images and argued it had been automatically saved to his phone. The border official wrote that as a result of the device search the student was “inadmissible” to the U.S. The student was only a couple of semesters away from graduating, but a rejection meant the student can no longer return to the U.S.

“This is part of the backdoor ‘Muslim ban’,” Ayoub said, referring to a controversial executive order signed by President Trump in January 2017, which barred citizens from seven predominantly Muslim countries entry to the U.S.

“We don’t hear of other other individuals being denied because of WhatsApp or because of what’s on the social media,” he said.

27 Aug 2019

Uber and Lyft drivers are not letting up on the fight for AB-5 and a union

A number Uber and Lyft drivers are protesting outside of Uber’s San Francisco headquarters to demand the passage of Assembly Bill 5 and the right to unionize. This is part of a three-day caravan across California organized by Gig Workers Rising and Mobile Workers Alliance.

“The journey is inspired by the United Farm Workers 1966 pilgrimage from Delano to Sacramento, led by Cesar Chavez,” MWA wrote on its blog. “Like gig workers in California, farm workers were thought to be impossible to organize and their exploitation was taken as a given by the public at large. The UFW proved the doubters wrong and we will too.”

The aim of the caravan is to rally drivers throughout California to advocate for their collective rights and make it clear to legislators they want AB-5 to pass. AB-5 seeks to codify the ruling established in Dynamex Operations West, Inc. v Superior Court of Los Angeles. In that case, the court applied the ABC test and decided Dynamex wrongfully classified its workers as independent contractors based on the presumption that “a worker who performs services for a hirer is an employee for purposes of claims for wages and benefits…”

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Those who work as 1099 contractors can set their own schedules, and decide when, where and how much they want to work. For employers, bringing on 1099 contractors means they can avoid paying payroll taxes, overtime pay, benefits and workers’ compensation.

According to the ABC test, in order for a hiring entity to legally classify a worker as an independent contractor, it must prove the worker is free from the control and direction of the hiring entity, performs work outside the scope of the entity’s business and is regularly engaged in an “independently established trade, occupation, or business of the same nature as the work performed.”

In short, AB-5, which has already passed in the California State Assembly, would ensure gig economy workers are entitled to minimum wage, workers’ compensation and other benefits.

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Today represents the third protest at Uber’s HQ since May, when drivers protested ahead of Uber’s IPO. Their demands have remained consistent, asking for better wages, benefits, transparent policies, a voice and the right to form a union.

But neither Lyft nor Uber wants AB-5 pass. Uber says drivers tell the company what they value most is the flexibility to work whenever, wherever and for whomever they want.

“We believe that independent, on-demand workers should not have to sacrifice security to enjoy that flexibility,” an Uber spokesperson told TechCrunch. “That’s why we’ve been working with stakeholders to find a path forward that provides a minimum earnings guarantee for drivers; a robust package of portable benefits they can access no matter which rideshare company they drive for; and meaningful representation that gives them a say on matters affecting their lives and livelihood.”

Similarly, Lyft says it’s advocating for an approach that is in line with the interests of its drivers, which would entail flexibility and benefits.

“That’s why we’ve been working with lawmakers and labor leaders on a different solution, so drivers can continue to control where, when, and how long they drive, while also having some basic protections like a minimum earnings floor, a system of worker-directed portable benefits, and representation,” the spokesperson said.

It’s worth noting that Gig Workers Rising and Mobile Workers Alliance do not represent all drivers. Lyft has shared thousands of messages it says drivers have sent to legislators demanding they protect their flexibility. However, as driver and protest organizer Annette Rivero previously told TechCrunch’s Greg Epstein, “AB5 doesn’t take away anybody’s flexibility, it’s the companies that take away the flexibility. Because I know that that’s something that everyone’s stuck on right now, and it’s a lie. There’s no truth to it.”

Developing…

27 Aug 2019

Kitty Hawk CEO Sebastian Thrun is coming to Disrupt SF

Sebastian Thrun can’t be described easily.

He’s a serial entrepreneur and educator, a computer scientist and inventor. He helped bring self-driving cars out of academia through X, the Google moonshot factory he founded. (That little project is now known as Waymo.) Thrun went on to co-found Udacity, the $1 billion online education startup where he is executive chairman.

Now, Thrun is pushing the “future of transportation” idea beyond self-driving cars. As CEO of Kitty Hawk Corporation, Thrun is working on bringing two aircraft to market — the one-person Flyer and a two-person autonomous taxi called Cora. Boeing and Kitty Hawk recently formed a strategic partnership with Boeing on Cora and more broadly on urban air mobility, particularly around safety and how autonomous and piloted vehicles will co-exist.

We’re excited to announce that Thrun will be joining us onstage at TechCrunch Disrupt SF to give a behind the scenes look at Kitty Hawk and what the future of flight might look like.

Disrupt SF runs October 2 to October 4 at the Moscone Center in San Francisco. Tickets are available here.

Thrun’s visits to Disrupt SF always deliver something new. Who can forget the puppy? This year, we’re focused on flying cars, what they’ll look like, and how Kitty Hawk, which is backed by Google’s Larry Page, will deliver on this promise of the future. 

Did you know Extra Crunch annual members get 20% off all TechCrunch event tickets? Head over here to get your annual pass, and then email extracrunch@techcrunch.com to get your 20% off discount. Please note that it can take up to 24 hours to issue the discount code.

27 Aug 2019

How to move from VP of Sales to CRO with leading exec recruiter David Ives

It wasn’t so long ago that sales meant just showing up with a deck and a smile. These days, it seems that sales leaders almost need a PhD in statistics just to get through the typical day managing a sales funnel. From SQLs and MQLs to NDRR and managing overall retention, the roles of VP of Sales and Chief Revenue Officers (CROs) are evolving rapidly in tandem with the best practices of SaaS startups.

Few people know this world better than David Ives, who is a partner at True Search, one of the top executive recruiting firms in the country where he co-leads the go-to-market practice. David has led countless CRO and VP of Sales searches, and in the process, has learned not just what CEOs and boards are looking for, but also the kinds of skills that candidates need to shine in these important career inflection points.

In our conversation, we talk about the evolving nature of the sales org, how leaders can best position themselves for future advancement, what companies are looking for today in new executive sales hires, and compensation changes in the industry.

This interview has been extensively edited and condensed for clarity

Introduction and background

Danny: Why don’t we start with your background — how did you get into recruiting?

David: So my background was definitely unique. I started as an enterprise sales rep of the truest form selling subscription-based data analytics and systems into capital markets, so into investment banks, trading desks, hedge funds, asset managers, portfolio managers — you name it. Then I drifted purposely, intentionally away from capital markets and did about four different growth technology companies. I landed at NewsCred, and it was a neat time — it was really the birth of the startup landscape with the whole Flatiron district in New York.

Later, I was looking for my next CRO opportunity and was networking with some of the investor folks that I knew. I had a friend of mine who was a talent partner at a private equity firm who said to me, “I’ve always thought that you’d be really good at this and we’re starting to push for our search firms to have operators.” I went and met with Brad and Joe [founders of True], and three weeks later I was in the seat.

Danny: That’s great. And what do you do at True?

David: Well, we moved to a specialization model right when I got here. I don’t know if I was the test case or not, but I didn’t know search, so my skillset was that I knew the role. I run our go-to-market practice with another partner, and we have probably 40, 45 people in that group. We focus exclusively on sales, marketing, customer success, we’ll do biz dev. I probably skew more to CRO than anything else, but I do CMO and VP of marketing as well, and then I do a handful of business development, chief client officers, and VPs of customer success a year. That’s my mix basically.

What is the skillset of a modern CRO?

Danny: You’ve been in the sales leadership space for a long time, and you’ve been in the recruiting space for a couple of years. What are some of the changes that you’re seeing today in terms of candidates, skills, and experiences?

David: I think a big change has been from what I call a backend pipeline manager to what I would call a full funnel manager.

27 Aug 2019

Apple releases first beta of iOS 13.1, indicating iOS 13 is nearly done

Surprise, Apple didn’t release yet another beta version of iOS 13. The company released the first developer beta of iOS and iPadOS 13.1 instead.

This is a curious move as Apple doesn’t usually share beta versions of .1 updates before the release of major updates. What’s even more surprising is that Apple released new beta versions for watchOS 6.0 and tvOS 13.0 today.

Chances are that iOS 13.0 is pretty much done by this point. Usually, Apple releases major versions of iOS a few days after announcing the new iPhone — the press event will likely take place at some point in early September. The company might release iOS 13.0 a bit earlier than expected this year.

Apple removed some minor features in iOS 13 in early beta versions of iOS 13. As MacRumors spotted, many of those features are now back in the beta version of iOS 13.1. Those features include Shortcuts automations and the ability to share your ETA in Apple Maps.

It’s clear that Apple is trying to make iOS 13.0 as stable as possible, even if it means releasing some features a bit later this fall.

27 Aug 2019

Lucid’s drone is built to clean the outside of your house or office

Building exteriors tend to get gross. Dirt clings to the walls. Windows get filmy. Spiderwebs amass. If you live in a particularly humid area, mold and mildew can start to make exterior walls look like a science experiment.

On taller buildings, scrubbing it all off generally means bringing a bucket truck, scaffolding, or suspension gear and having a crew hang from the side of the building. It’s a lot of prep work, with a lot of potential for falls and injuries. Lucid, a new company out of North Carolina, has a different approach: drones.

Rather than pressure washing, their drone “soft washes” the building — be it a house, an office, or the campus library — by spraying a cleaning solution that the company says is biodegradable and works on surfaces like brick and limestone. The operator rolls up to a site, unfolds the drone, powers it up, then plugs it into a tank sitting in the back of their work truck. A hose tether runs from the tank to the drone at all times, feeding the low-pressure sprayer while keeping the bulk of the weight down on the ground. The operator handles the drone via remote control.

The drone is currently battery-powered; in the future, Lucid plans to work tethered power into the design. The company tells me the drone is currently designed/tested to clean buildings up to 120 feet tall. That’s around 11 or 12 stories, depending on the building’s design.

While their early tests were done with off-the-shelf drones, Lucid tells me it’s now custom building its own; they need to be able to carry the weight of the tether, fly slowly for finer controls and easier operation, and stay light enough (under 55 lbs) that it fits within the FAA’s small unmanned aircraft guidelines. The company tells me that their drone weighs around 25-30lbs, depending on payload requirements.

Lucid co-founder Andrew Ashur says they originally set out to be the service provider, hiring operators and cleaning the buildings themselves. When they began testing the concept and other companies started reaching out, the team realized that they might be better off selling the drone itself. They’re now starting to rent the drones out to companies for $3,000 per month, which includes support, training, and maintenance (because, as any hobbyist drone pilot could tell you, things break.)

Lucid is part of Y Combinator’s Summer 2019 batch. As of YC Demo Day last week, the company noted that it had signed contracts worth around $33,000 per month in recurring revenue.

Ashur tells me that while they’re considering a nationwide rollout, their focus right now is on the Southeastern United States — it’s where they started, and where mold and mildew issues are common.

27 Aug 2019

Daily Crunch: Smartphone sales decline again

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. Smartphone sales declined again in Q2, surprising no one

After years of growth, the smartphone market’s recent slide has continued in the second quarter of 2019, according to Gartner.

It’s not a huge decline — 1.7% year over year — but this could turn into an ongoing problem for manufacturers. And the biggest hit is coming at the high end of the market, as higher prices combine with longer refresh cycles and fewer compelling features.

2. Yelp will let users personalize their homepage and search results

If you’re a vegetarian, or if you’re a parent who’s usually looking for kid-friendly restaurants, you no longer have to reenter that information every time you do a search. Instead, you can enter it once and Yelp will prioritize those results moving forward.

3. Ron Johnson’s e-commerce startup Enjoy raises $150M, expands in U.K.

Through partnerships with other companies, including AT&T, Sonos, Google and now EE, Enjoy creates an online mobile store where customers can shop for devices and receive same-day delivery. They can also opt to have an Enjoy expert deliver the item and help them get set up, free of charge.

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Fairphone 3 running Android 9 out of the box

4. Can Fairphone 3 scale ethical consumer electronics?

Fairphone, the Dutch social enterprise that’s on a mission to rethink the waste and exploitation that underpins the business of consumer electronics, announced its third smartphone today.

5. Facebook is working with HackerOne on a bug bounty program for its Libra cryptocurrency

Facebook is moving ahead with its cryptocurrency project, even as government regulators have called for the company to suspend it while they assess its legality.

6. The BBC is developing a voice assistant, code named ‘Beeb’

Why is a publicly funded broadcaster ploughing money into developing a voice assistant? A BBC spokesperson said the intent is to “experiment with new programmes, features and experiences without someone else’s permission to build it in a certain way.”

7. How to use Amazon and advertising to build a D2C startup

In-depth tips from VMG Ignite, a consultancy that’s worked with dozens of direct-to-consumer startups trying to both find product-market fit and achieve scale through Amazon and online advertising. (Extra Crunch membership required.)