Year: 2019

16 Jul 2019

Amazon Prime Day sees competition from more than expected number of retailers

Amazon’s Prime Day continues to gain competition from rival retailers piggybacking on the annual event with their own sales. Ahead of this year’s Prime Day, RetailMeNot had forecast that this year’s sale would see competition from 250 retailers. Today, the firm upped this figure to over 300, saying it found that more retailers than earlier estimated have decided to run their own counter-sales.

As of 9 AM on the second day of Prime Day — Tuesday, July 16, 2019 — RetailMeNot says it has counted over 300 unique retailers running Prime Day-related offers. This is up from the 275 retailers it had uncovered yesterday afternoon, and up from the 250 it had forecast.

For comparison’s sake, Prime Day 2018 saw competition from 194 retailers; the year before that, just 119. And only 27 retailers ran counter sales back in 2016.

The rival sales come from retailers both large and small and are targeting online shoppers with aggressive deals, flash sales, free shipping offers, and other promotions. These sales extend across all categories and retailer segments, the report also notes.

Free shipping — which is one of Amazon Prime’s biggest draws — is a common offer from the Prime Day rival sales. Retailers are either lowering their free shipping minimums or touting free shipping “with no membership” needed, to counter Amazon’s plan to woo subscribers to join its free shipping service and perks program, Amazon Prime.

Many retailers are also using messaging that includes words and phrases that appeal to e-commerce deal hounds, like “Cyber” (13% of retailers used) or “Black Friday” — e.g. “Black Friday in July” — which 32% of retailers used. But even more are directly copying from Amazon, as 38% used the word “Prime” in their messages to consumers.

Some retailers even went for clever variations on the word “Prime” itself — like Joann Fabric’s “Primo Days,” for example. Meanwhile, ULTA’s deals on beauty primers were referenced as “up to 50% Off Primer Days” while West Elm noted several “Reasons to Love West Elm, (Primarily) Today.”

Already, the e-commerce market in the U.S. is feeling the impact from Amazon’s sale. According to Adobe, large retailers have already seen a 64% increase in their e-commerce revenue, compared with a typical Monday. It also predicts Prime Day 2019 will push total U.S. e-commerce sales to over $2 billion, when it all wraps.

Whether or not the sale is still paying off for Amazon as expected with all this new competition remains to be seen, however.

16 Jul 2019

Facebook reportedly hasn’t contacted the regulator it says will oversee Libra’s privacy and data security

A Swiss regulatory agency that Facebook executive David Marcus said in Congressional testimony would be responsible for overseeing data and privacy protections for the company’s newly launched cryptocurrency, Libra, has not been contacted by Facebook, according to a report.

CNBC is reporting that the Swiss Federal Data Protection and Information Commissioner, who Marcus said would oversee data protections for its cryptocurrency in his testimony before the Senate Banking Committee, has yet to hear from the company which is depending on it for oversight.

In a statement provided to CNBC, Hugo Wyler, who’s the head of communication at the FDPIC said:

“We have taken note of the statements made by David Marcus, Chief of Calibra, on our potential role as data protection supervisory authority in the Libra context. Until today we have not been contacted by the promoters of Libra… We expect Facebook or its promoters to provide us with concrete information when the time comes. Only then will we be able to examine the extent to which our legal advisory and supervisory competence is given. In any case, we are following the development of the project in the public debate.”

Facebook’s attempted end-run around national monetary policy already has been criticized by lawmakers in the U.S. and around the world.

“With the announcement that it plans to create a cryptocurrency, Facebook is continuing its unchecked expansion and extending its reach into the lives of its users… Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congres and regulators have the opportunity to examine these issues and take action,” said Congresswoman Maxine Waters, who heads the House Financial Services Committee, in a statement on the day Facebook announced its cryptocurrency.

Federal Reserve chairman, Jerome Powell, also had harsh words for Facebook and its planned cryptocurrency. “Libra raises many serious concerns regarding privacy, money laundering, consumer protection, and financial stability,” Powell said last week.

Even Treasury Secretary Steven Mnuchin, normally a proponent of laissez faire approaches to private enterprise, voiced concerns about Libra that seemed to echo Powell’s.

“Cryptocurrencies such as bitcoin have been exploited to support billions of dollars of illicit activity like cyber crime, tax evasion, extortion, ransomware, illicit drugs and human trafficking,” Mnuchin said in a press conference yesterday.

 

16 Jul 2019

Minecraft Earth starts rolling out in beta in Seattle and London

If you’ve been waiting to check out Minecraft Earth (Mojang’s Pokemon GO-style augmented reality reimagining of its hugely popular game Minecraft) good news: it’s starting to roll out to some people now.

The catch? It’s only available to a slice-of-a-slice of the world, at first.

After opening up a registration system for its closed beta just a few days ago, the company says that it sent out the first batch of beta invites this afternoon.

crafty

The beta is being rolled out on a region-by-region basis, with randomly picked players in Seattle and London getting access at first. Mojang says more cities should go live in “the next few days,” but doesn’t get any more specific than that.

It’s also worth noting that the beta is iOS only for now; Android support is on the way, but it won’t land until later this summer.

Our own Devin Coldewey went hands on with an early build of Minecraft Earth a few months ago – check out his first impressions here.

16 Jul 2019

Peter Thiel says Elizabeth Warren is ‘dangerous,’ Warren responds: ‘Good’

Senator Elizabeth Warren doesn’t seem too unhappy about being labeled “dangerous” by investor Peter Thiel .

Thiel, who co-founded PayPal, Palantir and Founders Fund, made the comments in an interview on Fox News with Tucker Carlson, where he described most of the Democratic presidential field as “equally unimpressive” and called Warren “the dangerous one.”

“I’m most scared by Elizabeth Warren,” he said. “I think she’s the one who’s actually talking about the economy, which is the only thing — the thing that I think matters by far the most.”

Warren tweeted a link to a Bloomberg story about Thiel’s remarks with a succinct response of her own: “Good.”

Thiel is a high-profile backer of libertarian causes and a Trump supporter — a fact that’s made him a controversial figure in Silicon Valley — so it’s hard to imagine that many Democratic primary voters will be following his recommendations. Indeed, to some, Thiel’s criticism could be seen as an endorsement.

During the same interview, Thiel — who sits on Facebook’s board — repeated points made in an earlier speech where he accused Google of “seemingly treasonous” conduct and said the government should investigate the search giant’s ties with China. (China being the main target in Trump’s trade war.)

Warren, who’s been gaining in some recent polls, has some thoughts on tech policy as well, having called for the breakup of Google, Amazon and Facebook and also proposed an equity fund for underrepresented entrepreneurs.

16 Jul 2019

Japan Aerospace Exploration Agency and Toyota sign 3-year deal to develop a fuel cell Moon rover

Toyota will work with the Japan Aerospace Exploration Agency (JAXA) on a fuel cell Moon rover vehicle, with a target launch date of a Moon mission currently set for 2029. The two previously announced their collaboration, but on Tuesday they signed a formal agreement which defines a three-year joint research agreement to co-develop pressurized lunar rover prototypes.

Each year will see the partnership focus on a different phase of the prototype’s development, with 2019 all about identifying technical requirements and drawing up spec docs; next year, the goal will be to build test parts and then actually putting together a rover prototype; finally, in fiscal 2021, the partners will test both the rover parts and rover prototype in order to evaluate the results for potential full production.

The pressurized rover will be able to transport astronauts over 10,000 km using its onboard fuel cells and solar recharging mechanism, according to a press release detailing the concept from March, prior to today’s development partnership agreement. It would have a total seating capacity of two people, with the option to carry as many as four if there’s an emergency need to do so.

It’s about the size of two microbuses, according to Toyota, which means about 20 feet long, by 17 feet wide and 12.5 feet tall. The six-wheeled concept also features deployable solar panels for recharging, ample communications equipment and a front winch for getting itself out of jams another potential applications.

[gallery ids="1856416,1856417,1856418,1856420,1856421,1856422,1856423"]

JAXA intends to launch a series of lunar missions, including 2007’s Selene (or ‘Kayuga’), which sent an orbiter and a pair of communication satellites to lunar orbit. Ultimately, JAXA’s goal is to host a series of uncrewed and human missions under a broader Lunar Exploration Program with the ultimate aim of establishing a presence for Japanese astronauts in a combined international lunar outpost program.

16 Jul 2019

What seed-stage dilution tells us about changing investor expectations

Round sizes are up. Valuations are up. There are more investors than ever hunting unicorns around the globe. But for all the talk about the abundance of venture funding, there is a lot less being said about what it all means for entrepreneurs raising their early funding rounds.

Take for instance Seed-stage dilution. Since 2014, enterprise-focused tech companies have given up significantly more ownership during Seed rounds. What gives?

Scale is an investor in early-in-revenue enterprise technology companies, so we wanted to better understand how this trend in Seed-stage dilution impacts companies raising Series A and Series B rounds.

Using our Scale Studio dataset of performance metrics on nearly 800 cloud and SaaS companies as well as Pitchbook fundraising records covering B2B software startups, we started connecting the dots between trends in valuations, round sizes, and winner-take-all markets.

Bottom line for founders: Don’t let all the capital in venture mislead you. There’s an important connection between higher Seed-stage dilution and increased investor expectations during Series A and Series B rounds.

These days, successful startups are growing up faster than ever.

Founders face an important trade-off decision

16 Jul 2019

Social chat app Capture launches to take a shot at less viral success

At first glance launching a new social app may seem as sensible a startup idea as plunging headfirst into shark-infested waters. But with even infamous curtain-ripper Facebook now making grand claims about a ‘pivot to privacy’ it’s clear something is shifting in the commercial shipping channels that contain our digital chatter.

Whisper it: Feeds are tiring. Follows are tedious. Attention is expiring. There’s also, of course, the damage that personal digital baggage left out in the open can wreak long after the fact of a blown fuse or fleeting snap.

Public feeds have become vehicles of self-promotion; carefully and heavily curated — which of course brings its own peer pressures to keep up with friends’ lux exploits and the influencer ‘gram aesthetic that pretends life looks like a magazine spread.

Yet for a brief time, in the gritty early years of social media, there was something akin to spontaneous, confessional reality on show online. People do like to share. That’s mostly been swapped for the polish of aspirational faking it on apps like Facebook-owned Instagram. While genuine friend chatter has moved behind the quasi-closed doors of group messaging apps, like Facebook-owned WhatsApp (or rival Telegram).

If you want to chat more freely online without being defined by your existing social graph the options are less mainstream friendly to say the least.

Twitter is genuinely great if you’re willing to put in the time and effort to find interesting strangers. But its user growth problem shows most consumers just aren’t willing (or able) to do that. Telegram groups also require time and effort to track down.

Also relevant in interest-based chat: Veteran forum Reddit, and game chat platform Disqus — both pretty popular, though not in a way that really cuts across the mainstream, tending to cater to more niche and/or focused interests. Neither is designed for mobile first either.

This is why Capture’s founders are convinced there’s a timely opportunity for a new social app to slot in — one which leverages smartphone sensors and AI smarts to make chatting about anything as easy as pointing a camera to take a shot.

They’re not new to the social app game, either. As we reported last year, two of Capture’s founders were part of the team behind the style transfer app Prisma, which racked up tens of millions of downloads over a few viral months of 2016.

And with such a bright feather in their cap, a number of investors — led by General Catalyst — were unsurprisingly eager to chip into Capture’s $1M seed, setting them on the road to today’s launch.

Point and chat

“The main idea behind the app is during the day you’ve got different experiences — working, watching some TV series etc, you’re sitting in an arena watching some sports, or something like that. So we imagine that you should open the app during any type of experience you have during the day,” says Capture co-founder and CEO Alexey Moiseenkov fleshing out the overarching vision for the app.

“It’s not for your friends; it’s the moment when you should share something or just ask something or discuss something with other people. Like news, for example… I want to discuss news with the people who are relevant, who want to discuss it. And so on and on. So I imagine it is about small groups with the same goal, discussing the same experience, or something like that. It’s all about your everyday life.”

“Basically you can imagine our app as like real-time forum,” he adds. “Real-time social things like Reddit. So it’s more about live discussion, not postponing something.”

Chat(room) recommendations are based on contextual inferences that Capture can glean from the mobile hardware. Namely where you are (so the app needs access to your location) and even whether you’re on the move or lounging around (it also accesses the accelerometer so can tell the angle of the phone).

The primary sensory input comes from the camera of course. So like Snap it’s a camera-first app, opening straight into the rear lens’ live view.

By default chats in Capture are public so it also knows what topics users are discussing — which in turn further feeds and hones its recommendations for chats (and indeed matching users).

Co-founder and CMO Aram Hardy (also formerly at Prisma) gives the example of the free-flowing discussion you can see unrolling in YouTube comments when a movie trailer gets its first release — as the sort of energetic, expressive discussion Capture wants to channel inside its app.

“It’s exploding,” he says. “People are throwing those comments, discussing it on YouTube, on web, and that’s a real pain because there is no tool where you can simply discuss it with people, maybe with people around you, who are just interested in this particular trailer live on a mobile device — that’s a real pain.”

“Everything which is happening around the person should be taken into consideration to be suggested in Capture — that’s our simple vision,” he adds.

Everything will mean pop culture, news, local events and interest-based communities.

Though some of the relevant sources of pop/events content aren’t yet live in the app. But the plan is to keep bulking out the suggestive mix to expand what can be discovered via chat suggestions. (There’s also a discovery tab to surface public chats.)

Discovery 1

Hardy even envisages Capture being able to point users to an unfolding accident in their area — which could generate a spontaneous need for locals or passers by to share information.

The aim for the app — which is launching on iOS today (Android will come later; maybe by fall) — is to provide an ever ready, almost no-barrier-to-entry chat channel that offers mobile users no-strings-attached socializing free from the pressures (and limits) of existing social graphs/friend networks; as well as being a context-savvy aid for content and event discovery, which means helping people dive into relevant discussion communities based on shared interests and/or proximity.

Of course location-based chatting is hardly a new idea. (And messaging giant Telegram just added a location-based chats feature to its platform.)

But the team’s premise is that mobile users are now looking for smart ways to supplement their social graph — and it’s betting on a savvy interface unlocking and (re)channelling underserved demand.

“People are really tired of something really follower based,” argues Moiseenkov. “All this stuff with a following, liking and so on. I feel there is a huge opportunity for all the companies around the world to make something based on real-time communication. It’s more like you will be heard in this chat so you can’t miss a thing. And I think that’s a powerful shot.

“We want to create a smaller room for every community in the Internet… So you can always join any group and just start talking in a free way. So you never shared your real identity — or it’s under your control. You can share or not, it’s up to you. And I think we need that.

“It’s what we miss during this Facebook age where everybody is ‘real’. Imagine that it’s like a game. In a game you’re really free — you can express yourself what way you want. I think that’s a great idea.”

“The entry threshold [for Twitter] is enormous,” adds Hardy. “You can’t have an account on Twitter and get famous within a week if you’re not an influencer. If you’re a simple person who wants to discuss something it’s impossible. But you can just create a chat or enter any chat within Capture and instantly be heard.

“You can create a chat manually. We have an add button — you can add any chat. It will be automatically recognized and suggested to other users who are interested in these sort of things. So we want every user to be heard within Capture.”

How it works

Capture’s AI-powered chatroom recommendations are designed to work as an onboarding engine for meeting relevant strangers online — using neural networks and machine learning to do the legwork of surfacing relevant people and chats.

Here’s how the mobile app works: Open the app, point the camera at something you view as a conversational jumping off point — and watch as it processes the data using computer vision technology to figure out what you’re looking at and recommend related chats for you to join.

For example, you might point the camera around your front room and be suggested a chatroom for ‘interior design trends and ideas’ , or at a pot plant and get ‘gardeners’ chat, or at your cat and get ‘pet chat’ or ‘funny pets’.

Capture app

Point the camera at yourself and you might see suggestions like ‘Meet new friends’, ‘Hot or not?’, ‘Dating’, ‘Beautiful people’ — or be nudged to start a ‘Selfie chat’, which is where the app will randomly connect you with another Capture user for a one-to-one private chat.

Chat suggestions are based on an individual user’s inferred interests and local context (pulled via the phone) and also on matching users across the app based on respective usage of the app.

At the same time the user data being gathered is not used to pervasively profile uses, as is the case with ad-supported social networks. Rather Capture’s founders say personal data pulled from the phone — such as location — is only retained for a short time and used to power the next set of recommendations.

Capture users are also not required to provide any personal data (beyond creating a nickname) to start chatting. If they want to use Capture’s web platform they can provide an email to link their app and web accounts — but again that email address does not have to include anything linked to their real identity.

“The key tech we want to develop is a machine learning system that can suggest you the most relevant stuff and topics for you right now — based on data we have from your phone,” continues Moiseenkov. “This is like a magical moment. We do not know who you are — but we can suggest something relevant.

“This is like a smart system because we’ve got some half graph of connection between people. It’s not like the entire graph like your friends and family but it’s a graph on what chat you are in, so where are you discussing something. So we know this connection between people [based on the chats you’re participating in]… so we can use this information.

“Imagine this is somehow sort of a graph. That’s a really key part of our system. We know these intersections, we know the queries, and the intersection of queries from different people. And that’s the key here — the key machine learning system then want to match this between people and interests, between people and topics, and so on.

“On top of that we’ve got recognition stuff for images — like six or seven neural networks that are working to recognize the stuff, what are you seeing, how, what position and so on. We’ve got some quite slick computer vision filters that can do some magic and do not miss.

“Basically we want to perform like Google in terms of query we’ve got — it’s really big system, lots of tabs — to suggest relevant chats.”

Image recognition processing is all done locally on the user’s device so Capture is not accessing any actual image data from the camera view — just mathematical models of what the AI believes it’s seen (and again they claim they don’t hold that data for long).

“Mostly the real-time stuff comes from machine learning, analyzing the data we have from your phone — everybody has location. We do not store this location… we never store your data for a long time. We’re trying to move into more private world where we do not know who you are,” says Moiseenkov.

“When you log into our app you just enter the nickname. It’s not about your phone number, it’s not about your social networks. We sometimes — when you just want to log in from other device — we ask you an email. But that’s all. Email and nickname it’s nothing. We do not know nothing about you. About your person, like where you work, who’s your friends, so on and so on. We do not know anything.

“I think that’s the true way for now. That’s why gaming is so fast in terms of growing. People just really want to share, really want to log in and sign up [in a way] that’s easy. And there is no real barriers for that — I think that’s what we want to explore more.”

Chatroulette

Having tested Capture’s app prior to launch I can report that the first wave chat suggestions are pretty rudimentary and/or random.

Plus its image recognition often misfires (for instance my cat was identified as, among other things, a dog, hamster, mouse and even a polar bear (!) — as well as a cat — so clearly the AI’s eye isn’t flawless, and variable environmental conditions around the user can produce some odd and funny results).

 

Capture app

The promise from the founders is that recommendations will get better as the app ingests more data and the AI (and indeed Capture staff performing manual curation of chat suggestions) get a better handle on what people are clicking on and therefore wanting to talk with other users about.

They also say they’re intending to make better linkage leaps in chat suggestions — so rather than being offered a chatroom called ‘Pen’ (as I was),  if you point the Capture camera at a pen, the app might instead nudge you towards more interesting-sounding chats — like ‘office talk’ or ‘writing room’ and so on.

Equally, if a bunch of users point their Capture cameras at the same pen the app might in future be smart enough to infer that they all want to join the same chatroom — and suggest creating a private group chat just for them.

On that front you could imagine members of the same club, say, being able to hop into the same discussion channel — summoning it by scanning a mutual object or design they all own or have access to. And you could also imagine people being delighted by a scanner-based interface linked to custom stuff in their vicinity — as a lower friction entry point vs typing in their directions. (Though — to be clear — the app isn’t hitting those levels of savvy right now.)

“Internally we imagine that we’re like Google but without direct query typing,” Moiseenkov tells TechCrunch. “So basically you do the query — like scanning the world around you. Like you are in some location, like some venue, imagine all this data is like a query — so then step by step we know what people are clicking, then improving the results and this step by step, month by month, so after three month or four month we will be better. So we know what people are clicking, we know what people are discussing and that’s it.”

“It’s tricky stuff,” he adds. “It’s really really hard. So we need lots of machine learning, we need lots of like our hands working on this moderating stuff, replacing some stuff, renaming, suggest different things. But I think that’s the way — that’s the way for onboarding people.

“So when people will know that they will open the app in the arena and they will receive the right results the most relevant stuff for this arena — for the concert, for the match, or something like that, it will be the game. That’s what we want to achieve. So every time during the day you open the app you receive relevant community to join. That’s the key.”

Right now the founders say they’re experimenting with various chat forms and features so they can figure out how people want to use the app and ensure they adapt to meet demand.

Hence, for example, the chatroulette-style random ‘selfie chat’ feature. Which does what it says on the tin — connecting you to another random user for a one-to-one chat. (If selfie chats do end up getting struck out of the app I hope they’ll find somewhere else to house the cute slide-puzzle animation that’s displayed as the algorithms crunch data to connect you to a serendipitous interlocutor.)

They’re also not yet decided on whether public chat content in Capture will persist indefinitely — thereby potentially creating ongoing, topics-based resources — or be ephemeral by default, with a rolling delete which kicks in after a set time to wipe the chat slate clean.

“We actually do not know what will be in the next one to three months. We need to figure out — will it be consistent or ephemeral,” admits Moiseenkov. “We need to figure out certain areas, like usage patterns. We should watch how people behave in our app and then decide what will be the feed.”

Capture does support private group chats as well as public channels — so there’s certainly overlap with the messaging platform Telegram, which also supports both. Though one nuance between them is Capture Channels let everyone comment but only admins post vs Telegram channels being a pure one-way broadcast.

But it’s on interface and user experience where Capture’s approach really diverges from the more standard mobile messaging playbook.

If you imagine it as a mash-up of existing social apps Capture could be thought of as something like a Snap-style front end atop a Telegram-esque body yet altogether sleeker, with none of the usual social baggage and clutter. (Some of that may creep in of course, if users demand it, and they do have a reactions style feature linked up to add in so… )

“With our tool you can find people not from your graph,” says Moiseenkov. “That’s the key here. So with WhatsApp it’s really hard to invite people not from your graph — or like friends of friends. And that’s a really tough question — where I can find the relevant people whom I chat about football? So now we add the tool for you in our app to just find these people and invite them to your [chat].”

“It’s really really hard not to like your friend’s post on Instagram because it’s social capital,” he adds. “You are always liking these posts. And we are not in this space. We do not want to move in this direction of followers, likers, and all this stuff — scrolling and endless communication.

“Time is changing, my life is changing, my friends and family somehow is changing because life is changing… We’re mobile like your everyday life… the app is suggesting you something relevant for this life [now]. And you can just find people also doing the same things, studying, discussing the same things.”

Community building

Why include private chats at all in Capture? Given the main premise (and promise) of the app is its ability to combine strangers with similar interests in the same virtual spaces — thereby expanding interest communities and helping mobile users escape the bubbles of closed chat groups.

On that Moiseenkov says they envisage communities will still want to be able to create their own closed groups — to maintain “a persistent, consistent community”.

So Capture has been designed to contain backchannels as well as open multiple windows into worlds anyone can join. “It’s one of opportunities to make this and I think that we should add it because we do not know exact scenarios right from the launch,” he says of including private conduits alongside public chats.

Given the multiple chat channels in the first release Capture does risk being a bit confusing. And during our interview the founders joke about having created a “maximal viable product” rather than the usual MVP.

But they say they’re also armed to be able to respond quickly to usage patterns — with bits and pieces lined up in the background so they can move quickly to add/remove features based on the usage feedback they get. So, basically, watch this space.

All the feature creep and experimentation has delayed their launch a little though. The app had been slated to arrive in Q4 last year. Albeit, a later-than-expected launch is hardly an unusual story for a startup.

Capture also of course suffers from a lack of users for people to chat to at the point of release — aka, the classic network effect problem (which also makes testing it prior to launch pretty tricky; safe to say, it was a very minimalist messaging experience).

Not having many users also means Capture’s chat suggestions aren’t as intelligent and savvy as the founders imply they’ll be.

So again the MVP will need some time to mature before it’s safe to pass judgement on the underlying idea. It does feel a bit laggy right now — and chat suggestions definitely hit and miss but it will be interesting to see how that evolves as/if users pile in. capture app

Part of their plan is to encourage and nurture movie/TV/entertainment discussion communities specifically — with Hardy arguing there’s “no such tool” that easily supports that. So in future they want Capture users to be notified about new series coming up on Netflix, or Disney’s latest release. Then, as users watch that third party content, their idea is they’ll be encouraged to discuss it live on their mobiles via Capture.

But movie content is only partially launched at this stage. So again that’s all just a nice idea at this stage.

Testing pre-launch on various celebrity visages also drew a suggestive blank — and Hardy confirmed they’ve got more pop culture adds planned for the future.

Such gaps will likely translate into a low stickiness rate at first. But when the team’s ambition is to support a Google-esque level of content queries the scale of the routing and pattern matching task ahead of them is really both massive and unending.

To get usage off the ground they’re aiming to break the content recommendation problem down into more bite-size chunks — starting by seeding links to local events and news (sourced from parsing the public Internet); and also by focusing on serving specific communities (say around sports), and also linked to particular locations, such as cities — the latter two areas likely informed by in what and where the app gets traction.

They’ve also hired a content manager to help with content recommendations. This person is also in charge of “banning some bad things and all that stuff”, as they put it. (From the get go they’re running a filter to ban nudity; and don’t yet support video uploads/streams to reduce their moderation risk. Clearly they will need to be very ‘on it’ to avoid problem usage mushrooming into view and discouraging positive interactions and community growth within the app. But again they say they’re drawing on their Prisma experience.)

They also say they want this social app to be more a slow burn on the growth front — having seen the flip side of burn out viral success at Prisma — which, soon after flooding the social web with painterly selfies, had to watch as tech giants ruthlessly cloned the style transfer effect, reducing their novelty factor and pushing users to move on to their next selfie lens fix.

“As data-driven guys we’re mostly looking for some numbers,” says Moiseenkov when asked where they hope to be with Capture in 12 months’ time. “So I think achieving something like 1M or 2M MAU with a good retention and engagement loop by then is our goal.

“We want to keep this growth under control. So we could release the features step by step, more about engagement not more about viral growth. So our focus is doing something that can keep engagement loop, that can increase our spend time in the app, increase the usage and so on, not driving this into the peak and like acquiring all the trends.”

“Conclusions are drawn from Prisma!” adds Hardy with investor-winning levels of chutzpah.

While it’s of course super early to talk business model, the question is a valid one given Capture’s claims of zero user profiling. Free apps backed by VC will need to monetize the hoped for scale and usage at some point. So how does Capture plan to do that?

The founders say they envisage the app acting as a distribution tool. And for that use case their knowing (only) the timing, location and subject of chats is plenty enough data to carry out contextual targeting of whatever stuff they can get paid to distribute to their users.  

They are also toying with models in a Patreon style — such as users being able to donate to content authors who are in turn distributing stuff to them via Capture. But again plans aren’t fully formed at this nascent stage.

“Our focus right now is more like going into partnerships with different companies that have lots of content and lots of events going on,” says Hardy. “We also are going to ask for permission to get access to music apps like Spotify or Apple Music to be aware of those artists and songs a person is interested in and is listening to. So this will give us an opportunity to suggest relevant new albums, maybe music events, concerts and so on and so forth.

“For example if a band is coming to your city and we know we have access to Apple Music we know you’re listening to it we’ll suggest a concert — we’ll say ‘hey maybe you can win a free ticket’ if we can partner… with someone, so yeah we’re moving into this in the near future I think.”

16 Jul 2019

One of Uber’s flying taxi partners just raised a $25 million Series A round

Uber Air, the transportation company’s upcoming flying taxi service, needs vehicle partners in order to make it a reality. Karem Aircraft, which Uber partnered with last year, has just raised a $25 million Series A round for its new air taxi spinoff. The round was led by Korean industrial conglomerate Hanwha Systems.

“Karem’s technology for making safe, quiet, and efficient air taxi vehicles excites all of us,” Uber Elevate Head Eric Allison said in a statement. “Hanwha’s Series A investment in Karem’s new air taxi entity accelerates efforts to bring the Butterfly to market, and we look forward to flying riders in places like Dallas, Los Angeles, and Melbourne in the near future.”

Uber is aiming to start testing these aircrafts next year, and wants to commercially deploy Uber Air in Los Angeles, Calif., Dallas-Fort Worth/Frisco, Texas and Melbourne, Australia in 2023.

Karem’s new venture is designed to focus solely on electric vertical takeoff and landing vehicles, specifically its Butterfly air taxi vehicle.

The Butterfly (rendered above) is a quad tiltrotor with four large rotors mounted on the wings and tail. The idea is to combine the vertical lift capability of a helicopter with the speed and range of a fixed-wing aircraft. The Butterfly is also designed to be more efficient as a result of its rotors with variable RPM.

“The new company will be able to focus exclusively on bringing Butterfly to market, leveraging Karem’s optimum speed rotor technology, Hanwha’s industrial scale, and Uber’s ridesharing network,” Ben Tigner, CEO of the new venture, said in a statement. “We look forward to the day when riders will be able to commute to work by flying above the traffic in one of our vehicles. Karem Aircraft will continue to serve the needs of its military customers; we are confident that each company is on a path for long-term success so that our technology can be applied in two distinct but important use cases.”

16 Jul 2019

Daily Crunch: Facebook and Libra go to Washington

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. Highlights from Facebook’s Libra Senate hearing

David Marcus, the head of Facebook’s blockchain subsidiary Calibra, testified before the Senate Banking Committee today. He said Calibra will be interoperable, so users can send money back and forth with other wallets, and he committed to data portability, so users can switch entirely to a competitor.

At the same time, Marcus said Facebook will embed only its own wallet into its messaging apps Messenger and WhatsApp, which could give the company a sizable advantage.

2. Twitter.com launches its big redesign with simpler navigation and more features

The company has been testing a new version of its desktop website since the beginning of the year, and yesterday, the final product started rolling out to the public.

3. Blackstone is acquiring mobile ad company Vungle

Multiple sources with knowledge of the deal said that the acquisition price was north of $750 million. As part of the transaction, Vungle has also reached a settlement with founder Zain Jaffer, who filed a wrongful termination lawsuit against the company earlier this year.

Curve Cash in App 1

4. Curve, the ‘over-the-top’ banking platform, raises $55M at a $250M valuation

The startup lets you consolidate all of your bank cards into a single Curve card and app to make it easier to manage your spending and access other benefits.

5. Meredith Whittaker, AI researcher and an organizer of last year’s Google walkout, is leaving the company

Whittaker and another one of the walkout’s organizers, Claire Stapleton, previously said they had faced retaliation from Google after the protest. Other employees also claimed they had experienced fallout as a result of their participation, which Google denied.

6. Newsletter platform Substack raises $15.3M round led by a16z

Although Substack started out two years ago as a way to turn newsletters into a paid subscription business, it’s since added support for podcasts and discussion threads. As CEO Chris Best put it, the goal is to allow writers and creators to run their own “personal media empire.”

7. Why commerce companies are the advertising players to watch in a privacy-centric world

We’re witnessing the beginning of a sweeping upheaval in how companies are allowed to obtain, process, manage, use and sell consumer data, and the implications for the digital ad competitive landscape are massive. (Extra Crunch membership required.)

16 Jul 2019

Elon Musk is raising the price of Tesla’s “full self-driving” feature by another $1,000

The price of a Tesla vehicle equipped with “full self-driving” is about to get more expensive, the second time in the past several months the company has increased fees for a feature that isn’t completely functional.

Tesla CEO Elon Musk tweeted Tuesday that the price of its full self-driving option will increase by $1,000 on August 16. Full self-driving, or FSD — a feature that Musk promises will one day deliver full autonomous driving capabilities — currently costs $6,000.

Musk has previously said the price of FSD will “increase substantially over time.” The first increase, which raised the price from $5,000 to $6,000, went into effect May 1. In previous tweets, Musk has said the total increase would be “something like” around the $3,000+ figure. This means buyers should prepare for more price hikes even after this latest one.

It’s a strategy that Musk repeated on Tuesday, noting in an additional tweet that the “cost of the Tesla FSD option will increase every few months. Those who buy it earlier will see the benefit.”

Tesla vehicles are not self-driving. Musk has promised that the advanced driver assistance capabilities on Tesla vehicles will continue to improve until eventually reaching full automation.

Today, Tesla vehicles come standard with Autopilot, an advanced driver assistance system that offers a combination of adaptive cruise control and lane steering. Tesla once charged for this feature as well, but made it standard in April 2019.

The more robust and higher functioning version of Autopilot is called Full Self-Driving. FSD includes the parking feature Summon as well as Navigate on Autopilot, an active guidance system that navigates a car from a highway on-ramp to off-ramp, including interchanges and making lane changes. Once drivers enter a destination into the navigation system, they can enable “Navigate on Autopilot” for that trip.

Tesla announced in October 2016 that all of its cars would come equipped with the hardware necessary for so-called “full self-driving.” The company has since modified the hardware needs with the addition of a new custom computer chip that all new vehicles have come equipped with since spring 2019.

It’s been nearly three years since Tesla began charging for an option that would eventually deliver an autonomous driving experience. And customers are still waiting.

Tesla does continue to improve Navigate on Autopilot and the broader FSD system through over-the-air software updates. The company says on its website that FSD will soon be able to recognize and respond to traffic lights and stop signs and automatically driving on city streets.