Year: 2020

29 Apr 2020

Lyft is laying off 982 employees, furloughing a further 288 due to COVID-19 pandemic

Less than 24 hours after it was reported that Uber was considering layoffs of 20% of staff, its big rival Lyft is announcing its own cuts.

Today the company said it would be reducing employee count by 17%, working out to 982 employees, and furloughing an additional 288, due to the affects of the COVID-19 pandemic and its impact on Lyft’s business.

It will also put in place salary reductions of 30%  for executive leadership, 20% for vice presidents and 10% for all other employees, while members of Lyft’s board of directors will forego 30% of their cash compensation for the second quarter of 2020.

Lyft said that it will take a restructuring charge of between $28 million and $36 million as a result, which will come through in its Q2 financials.

The news comes in the wake of technology sector layoffs now crossing 32,221 people since March 11. Transportation has been hit in a particularly tough way, in part because people are not moving around as much due to stay-at-home orders; and in part because of the worries of infection that people have around driving in vehicles in close quarters where others have been.

More to come.

29 Apr 2020

Daily Crunch: Google Meet goes free for everyone

Google is making a big push for its Zoom competitor, Samsung outlines how COVID-19 is reshaping consumer demand and Ford delays its autonomous vehicle plans.

Here’s your Daily Crunch for April 29, 2020.

1. Google is making Meet free for everyone

Meet is Google’s video meeting tool for businesses. (Hangouts is the company’s free consumer equivalent.) Until now, you could participate in a Meet call without being a paying user, but you needed a paid G Suite account to start calls.

Meanwhile, Google’s parent company Alphabet reported that its business grew more than expected in the first quarter of the year — but with a “significant slowdown” in March.

2. Samsung expects COVID-19 to hurt smartphone and TV sales, but increase demand for memory

More earnings news: In its first-quarter report, Samsung said it expects the COVID-19 pandemic to continue impacting its business for the rest of the year, cutting into sales for smartphones and TVs, but increasing demand for PCs, servers and memory chips as people continue to work or study from home.

3. Ford postpones autonomous vehicle service until 2022

“Understanding customer behavior is a critically important part of building a new mobility service built around trust and making people’s lives easier,” the company said. In fact, Ford said COVID-19 has already affected consumer behavior in China, prompting the automaker to turn to online sales.

4. As COVID-19 misinformation grows, YouTube brings video fact-checking to the US

Fact-check articles will begin appearing in relevant search results, using information pulled from a dozen or so third-party publishers, including The Dispatch, FactCheck.org, PolitiFact and The Washington Post Fact Checker.

5. A conversation with Sasha Astafyeva, Atomico’s new consumer-focused investment partner

We caught up with Astafyeva for a conversation that spanned the coronavirus crisis’ impact on her area of interest, new trends during and potentially after lockdown and how it feels to be a consumer-focused investor in turbulent times. (Extra Crunch membership required.)

6. Spotify Q1 beats on sales of $2B with monthly active users up 31% to 286M

The coronavirus may be decimating some corners of the economy, but the impact on the digital music — as evidenced by the world’s biggest music streaming company — appears to be minimal.

7. Smart contact lens startup Mojo Vision raises $51M

Mojo Vision’s technology still felt early-stage when we met with the company back at CES — but the demos we did see were enough to convince us that there really could be something to the California startup’s smart content lens technology.

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.

29 Apr 2020

Google Cloud opens its Las Vegas region

Google Cloud today announced the official opening of its Las Vegas data center region. With this, Google Cloud now operates four regions in the western U.S., with Las Vegas complementing Google Cloud’s existing data centers in Los Angeles, California; The Dalles, Oregon and its recently opened Salt Lake City, Utah region.

In total, Google now offers its customers the option to host their applications in 23 regions globally and with the opening of this new region, it now has seven U.S. regions.

Like all of Google’s new regions, Las Vegas will offer three availability zones and access to most of Google Cloud’s services. In Vegas, though, developers won’t be able to use relatively new services like Cloud Functions and Cloud Run yet. Some other features, including Cloud HSM and Secret Manager, are also not available yet either.

The company first announced the Vegas expansion in July 2019. And while it’s eerily quiet in Las Vegas right now, the idea behind these new regions is always to give companies the option to be close to their customers and offer them low-latency access to their applications, as well as the ability to distribute workloads across a wider geographic region.

Earlier this year, Google also announced that it would open its regions in Jakarta, Seoul and Warsaw over the course of 2020. So far, it doesn’t look like the COVID-19 pandemic is slowing these plans down.

For Las Vegas, Google’s launch partner is Aristocrat, which fittingly offers digital products for the gambling industry.

“Cloud technologies enable two important outcomes for us,” said James Alverez, CIO of Aristocrat. “First the ability to securely, consistently and immediately enable and disable game development platforms; and second, our ability to expand and contract our infrastructure based on demand. Both of these capabilities allow us to flex our technology to fully support the demands of our customers and our business. The Las Vegas region gives us the opportunity to more directly engage Google Cloud services and take advantage of an entry point into the network.”

29 Apr 2020

Fairphone teams up with /e/OS on a box-fresh ‘deGoogled’ handset

The makers of the world’s most ethical smartphone, the Fairphone 3, have teamed up for a version of the device with even less big tech on board.

The Netherlands-based device maker has partnered with France’s /e/OS to offer a ‘de-Googled’ version of its latest handset, running an Android AOSP fork out of the box that’s itself built atop a fork of CyanogenMod (remember them?) — called LineageOS (via Engadget).

“The deGoogled Fairphone 3 is most likely the first privacy conscious and sustainable phone,” runs the blurb on /e/OS’ website. “It combines a phone that cares for people and planet and an OS and apps that care for your privacy.”

A pithy explainer of its “privacy by design ecosystem” — and the point of “Android without Google” — further notes: “We have removed many pieces of code that send your personal data to remote servers without your consent. We don’t scan your data in your phone or in your cloud space, and we don’t track your location hundred times a day or collect what you’re doing with your apps.”

When the Fairphone 3 launched last September it came with Android 9 preloaded. But the company touted a post-launch update that would make it easy for buyers to wipe Google services off their slate and install the Android Open Source Project, which it recommended for advanced users.

The new /e/OS flavor offers a third OS option.

Per Engadget, Fairphone said it polled members of its community asking which alternative OS to offer and /e/OS got more votes than a number of others. The company also highlighted /e/OS’ privacy by design as a factor in the choice, lauding how it shuts down “unwanted data flows”, meaning users have more control over what their phone is doing.

The e/OS flavor of the Fairphone 3 ships from May 6, priced at just under €480 — a €30 premium on the Googley flavor of Android you get on the standard Fairphone 3.

Existing owners of Fairphone’s third gen handset can manually install /e/OS gratis via an installer on its website.

When the Fairphone 3 launched last year the company told us only around 5% of Fairphone users opt to go full open source — which suggests the /e/OS Fairphone 3 will be a niche choice for even these discerning buyers.

29 Apr 2020

EV startup Nio secures $1 billion investment from China entities

Chinese electric vehicle startup Nio has secured a $1 billion investment from several state-owned companies in Hefei in return for agreeing to establish headquarters in the city’s economic development hotspot and giving up a stake in one of its business units.

The injection of capital comes from several investors, including Hefei City Construction and Investment Holding Group, CMG-SDIC Capital and Anhui Provincial Emerging Industry Investment Co.

Nio’s factory is already in Hefei, which it operates with Anhui Jianghuai Automobile Group. However, the company’s headquarters and other operations are in Shanghai about 300 miles from the Anhui provincial city. Under this agreement, Nio will locate all of its Chinese operations, including R&D, sales, service and supply chain, in the Hefei Economic and Technological Development Area.

The investment is another important milestone of NIO for its long-term growth, Nio said in a statement Wednesday.

“After receiving the investments from the strategic investors, Nio will have more sufficient funds to support its business development, to enhance its leadership in the products and technologies of smart electric vehicles and to offer services exceeding users’ expectation,” the company said, adding that the launch of Nio China headquarters in Hefei enables NIO to improve its operational efficiency and to sustain its growth and competitiveness in the long run.

Despite the new capital, Nio faces a series of challenges, including a downturn in the Chinese automotive market. Electric vehicle sales in China declined 4% to 1.21 million vehicles in 2019 from the previous year. The company’s ES8 and ES6 vehicles haven’t generated the same demand as Tesla’s Model 3. Meanwhile, the COVID-19 pandemic is dampening demand further as customers stayed home.

Structuring the deal requires some asset shuffling. The investment is targeted towards Nio China, a recently established business unit under Nio Inc.

Investors will put 7 billion yuan, or $1 billion, into Nio’s holding company. Nio will put its core China businesses and assets — which include vehicle research and development, supply chain and its power division — into Nio China, a subsidiary of the holding company. Nio’s parent company will also invest into Nio China.

At the end, investors will hold a 24.1% stake in Nio China while Nio will have a 75.9% controlling equity interesting into the unit.

The company expects the closing of the investments to take place in the second quarter of 2020, subject to the satisfaction of customary closing conditions.

29 Apr 2020

Spotify’s catalog tops a million podcasts, consumption increased by ‘triple digits’ over last year

Spotify’s podcast business is booming despite — or perhaps, because of — the COVID-19 pandemic. The company says it has now grown its podcast catalog to over a million shows, up from the 700,000-plus podcasts it was reporting just this March. Podcaster listeners are also “more engaged overall” and “listen to more music,” the company noted, which may have helped boost Spotify’s overall listener and subscriber increases in the first quarter. In addition, podcast consumption was up by “triple digits” in Q1 2020 compared with the same quarter last year, Spotify said.

The streaming music service reported its monthly active user base is now at 286 million, with more users joining the ad-supported free service amid the coronavirus pandemic. It also beat on both earnings and revenue in Q1 2020, with -$0.20 earnings per share on a diluted basis and revenue of roughly $2 billion (€1.848 billion.)

Podcasts have now become a key part to Spotify’s business in recent years, and were addressed several times during Spotify’s call with investors on Wednesday.

The company has now made several investments in creator tools, podcast services, and original content and media studios related to its interests in podcasts. Spotify said it plans to continue its acquisitions in the future, as well, if the current environment means “there will be more advantageous deals to be done” — which, of course, it does.

Spotify also said Q1 2020 was its biggest-ever quarter for organic podcast creation.

Podcasters stuck at home were busy creating new shows and increasing their output on existing shows, it seems. Notably, 70% of the new podcasts in the quarter were created within Spotify’s own ecosystem via the Anchor podcast creation platform, the company said.

Spotify had acquired Anchor, a service that aims to make it easier to create podcasts, for an estimated $140 million in 2019. In the months that followed, the platform has continued to innovate on features designed to ease users into becoming podcasters — like its simple “record with friends” option for remote podcasting that’s now become particularly handy amid the quarantine. Yesterday, Anchor released a new feature to turn video chats into audio podcasts, as well.

These help to populate Spotify with a longer tail of content beyond the 800,000-some shows you’ll find on mainstream platforms, like Apple Podcasts.

Spotify, to some extent, addressed concerns that its podcast business had suffered due to the coronavirus outbreak. As more users have shifted their listening from cars and commutes to the home, podcast listening had declined industry-wide over the past several weeks. (Recent reports indicate a turnaround is starting to shape up, however.)

Spotify, however, said podcast consumption grew in the quarter.

The company said podcast consumption grew by triple digits in Q1 2020 compared with the same quarter last year. While that’s not as relevant a metric as a quarter-over-quarter increase would have been, it at least indicates that overall, the podcast side of the business is still growing.

In addition, one of Spotify’s own shows — a daily news podcast in Germany — has already become the second-largest show in the country, and a top 20 show worldwide. Plus, this week Spotify was finally able to add “This American Life,” the No. 5 show in the U.S., to its lineup as an exclusive streaming deal with Pandora lapsed.

The company admitted it was still trying to figure out how to market its own shows, though. It said it would continue experimenting with decisions like which to make exclusive to its service or which to offer in windowing deals, and so on.

And while Spotify has planned to grow ad revenue by way of podcasts, it stressed that the economic downturn which had resulted in ad sales declines has had a minimal effect on this business. Only 10% of Spotify’s overall revenue today comes from ads, so it’s able to weather a drop in ad sales better than some others in the media and entertainment business.

“With so many unknowns, there are some questions we simply can’t answer at this point,” noted Spotify CEO Daniel Ek as to how the COVID-19 pandemic will continue to impact the business. “But I can say that I’m confident that we will continue to be in a position of strength when this is behind us. And that’s because of our models, our scale, and our superior user experience. And, of course, our content pipeline,” he added.

29 Apr 2020

Determined AI makes its machine learning infrastructure free and open source

Machine learning has quickly gone from niche field to crucial component of innumerable software stacks, but that doesn’t mean it’s easy. The tools needed to create and manage it are enterprise-grade and often enterprise-only — but Determined AI aims to make them more accessible than ever by open-sourcing its entire AI infrastructure product.

The company created its Determined Training Platform for developing AI in an organized, reliable way — the kind of thing that large companies have created (and kept) for themselves, the team explained when they raised a $11 million Series A last year.

“Machine learning is going to be a big part of how software is developed going forward. But in order for companies like Google and Amazon to be productive, they had to build all this software infrastructure,” said CEO Evan Sparks. “One company we worked for had 70 people building their internal tools for AI. There just aren’t that many companies on the planet that can withstand an effort like that.”

At smaller companies, ML is being experimented with by small teams using tools intended for academic work and individual research. To scale that up to dozens of engineers developing a real product… there aren’t a lot of options.

“They’re using things like TensorFlow and Pytorch,” said Chief Scientist Ameet Talwalkar. “A lot of the way that work is done is just conventions: how do the models get trained? Where do I write down the data on which is best? How do I transform data to a good format? All these are bread and butter tasks. There’s tech to do it, but it’s really the wild west. And the amount of work you have to do to get it set up… there’s a reason big tech companies build out these internal infrastructures.”

Determined AI, whose founders started out at UC Berkeley’s AmpLab (home of Apache Spark), has been developing its platform for a few years, with feedback and validation from some paying customers. Now, they say, it’s ready for its open source debut — with an Apache 2.0 license, of course.

“We have confidence people can pick it up and use it on their own without a lot of hand holding,” said Sparks.

You can spin up your own self-hosted installation of the platform using local or cloud hardware, but the easiest way to go about it is probably the cloud-managed version that automatically provisions resources from AWS or wherever you prefer and tears them down when they’re no longer needed.

The hope is that the Determined AI platform becomes something of a base layer that lots of small companies can agree on, providing portability to results and standards so you’re not starting from scratch at every company or project.

With machine learning development expected to expand by orders of magnitude in the coming years, even a small piece of the pie is worth claiming, but with luck Determined AI may grow to be the new de facto standard for AI development in small and medium businesses.

You can check out the platform on GitHub or at Determined AI’s developer site.

29 Apr 2020

Marc Andreessen, Florence Nightingale and building in a vacuum

If you want to get a structural engineer excited, ask them what they could build in space. Freed from the constraints of gravity and aerodynamics, a single human could move skyscrapers like LEGO bricks. A fraction of the rocket fuel needed to escape earth’s pull could move mountainous objects. You could build mind-bending machines, like a Dyson sphere, in a vacuum.

The problem is, should you ever want to bring them back to earth, they would disintegrate on entry and collapse under their own weight on landing.

Which is what came to mind when I read Marc Andreessen’s energetic rallying cry to build. Marc, one of the most impressive entrepreneurs and investors of his generation, called for the technology community to pick up arms and start building solutions to the hard challenges, from clean energy to better education and effective healthcare. This is the right call. But if, during the financial crisis of 2008, a senior banker had looked at the global situation and wrote a thought piece entitled ‘it’s time to finance!’ they would have been rightly pilloried. Calling for more of the same won’t work now either.

Software businesses didn’t cause this crisis. It is thanks in part to our software infrastructure, the deep foundations of code and the endless hours of engineers’ effort, that we are able to continue to function as an economy at all. But just as much as it’s time to build, it’s also a time to listen and understand why these hard challenges haven’t been solved already, because we can’t continue to build in a vacuum.

There is undeniably a culture in many technology businesses and entrepreneurs that considers politicians, policy, civic institutions — in fact, anyone who isn’t a potential user or customer — as a distraction from the focus needed for a business to thrive. This is the vacuum in which much of the world’s most successful modern technology companies have been built.

But building new energy systems requires deep engagement with both politics and policy. Solving persistent healthcare challenges means solving for every edge case. Expanding education and skills demands an understanding of the structural challenges in society that prevent many communities from accessing these services in the first place. All of these challenges require a different mindset, a willingness to engage with government, an engineering culture that considers the second order consequences of what they are building and boards that think beyond their fiduciary and legal responsibilities to their social responsibilities as well.

If we want to learn how to build in times of crises, it’s worth looking at the innovators and entrepreneurs that tackled such complex problems before us. Which brings me to Florence Nightingale.

May 12, 2020 will be the 200th anniversary of Florence Nightingale’s birth. Nightingale is famous for many reasons, but above all for the impact she had on the welfare of soldiers in the Crimean War.

Seeing the appalling condition injured soldiers lived in after returning from the front line, she researched the causes of death, advocated for and created new methods for capturing and presenting data and worked with other great innovators of her time, Isambard Kingdom Brunel and Dr. Edmund Parkes, to design and deploy entirely new ways of caring, including a new type of hospital in Renkioi. She broke the rules of war, healthcare and being a woman in the process. She came at every problem not as a weary practitioner, but as an entrepreneur anxious for change. By some estimates, Renkioi hospital improved the fatality rate by 90%.

But this is not where Nightingale had her greatest impact. On returning to England, she found that the biggest challenges in healthcare then were not huge, technical problems, but behavioral and political ones. So she looked to change the institution of nursing itself, while bringing people along with her. She set up the Nightingale fund to train nurses who would go out and practice her new approach in American, India and Japan. She worked with multiple governments to change the laws around home sanitation. She wrote extensively, simplifying her language to make it more accessible and creating texts that served as the foundation for modern nursing. Two hundred years later, the British government managed to build a fully equipped ICU hospital in central London in just nine days, which we now call the Nightingale Hospital.

In this crisis, rules are being broken. And as we emerge from it, it won’t be business as usual. If we want to, and we should, build things that make us more resilient, have more impact and change more lives, then we have to approach these problems differently, as well. As Florence Nightingale found, the most complex challenges are not technical problems that can be solved by engineers alone, they are societal ones.

What this looks like in practice is complex. You can start by thinking about your internal culture, with tools like consequence scanning from Dot.Everyone, to consider the impact of what you’re building beyond your first users. You can start by looking at how a new generation of companies are engaging with policy problems through the work of funds like the Govtech Fund or Public.io. You can start by engaging with projects to tackle some of the fundamental weaknesses in the web that have been exposed during this crisis, such as Demos’ The Good Web Project. And if you’re interested in improving how your board works, you can get in touch with us to be part of Balderton’s Good Governance projectg, as well.

As Marc rightly said, it is time to build — but it’s time to build sustainably, too.

29 Apr 2020

Atlassian cofounder and co-CEO Mike Cannon-Brookes is coming to Disrupt SF 2020

Atlassian is about as ubiquitous to software engineers as Google is to the rest of us. The Sydney-based company, which launched in 2002, develops tools and services for enterprise collaboration and marched efficiently to a public offering in 2015.

So it goes without saying that we’re thrilled to have Atlassian cofounder and co-CEO Mike Cannon-Brookes join us at Disrupt SF 2020, which runs September 14 to September 16.

As far as entrepreneurship goes, Cannon-Brookes is on a very short list of founders who have led a company from founding to public offering, and all the steps in between.

Atlassian was one of the early players in enterprise collaboration, particularly for engineering and development teams, and has over the years introduced a robust product suite including Jira, Confluence, and Hipchat.

Cannon-Brookes has been at the helm for the entire journey, from raising early funding to product development to acquisitions (including Trello) to public offering and beyond. All the while, Cannon-Brookes kept the company’s HQ, and all invoicing, in its home country of Australia, becoming the most successful tech startup to ever launch out of the nation down under.

One of the more interesting features of the company? Unlike Microsoft and IBM and other big enterprise software companies, Atlassian has always operated without a proper sales team, using a fraction of spend on sales and marketing compared to other enterprise software giants.

“We had a hunch early on that salespeople break software companies,” Cannon-Brookes told the Australian Financial Review in 2015. “But convincing people this model would work has probably been the biggest struggle we’ve had. We’ve had a lot of smart people who wouldn’t join the company or give us money or advise us because it made no sense to them.”

The company developed an enormously successful distribution flywheel built on the back of one necessary ingredient: remarkable products. Great products at low prices mean that you can sell to everyone, and if you sell to everyone you have to do it online and with transparent pricing and a great free trial. But if you offer a free trial, you better have a remarkable product, and the flywheel spins on and on.

It’s worked.

Atlassian products are used by more than 160,000 large and small organizations across the globe, including Spotify, NASA, Sotheby’s and Visa.

Cannon-Brookes is also a tech investor across sectors like software, fintech, agriculture and energy, with a seat on the board of Zoox.

We’re excited to sit down with Cannon-Brookes and hear more about the company’s trajectory over the last two decades and hear what comes next for the behemoth.

Disrupt SF 2020 runs September 14 to September 16 at the Moscone Center right in the heart of San Francisco. For folks who can’t make it in person, we have several Digital Pass options to be part of the action or to exhibit virtually which you can check out here.

We’ll be announcing more speakers over the coming weeks so stay tuned.

(Editor’s Note: We’re watching the developing situation around the novel coronavirus very closely and will adapt as we go. You can find out the latest on our event schedule plans here.)

29 Apr 2020

Extra Crunch Live: Join Roelof Botha for a live Q&A on May 6 at 2pm ET/11am PT

23andMe. MongoDB. Eventbrite. Evernote. Bird. Square . Tumblr. Unity. YouTube. Xoom.

Roelof Botha has had a board seat in each of these companies, but his list of investments is much, much longer.

The Sequoia partner and managing director is legendary in Silicon Valley and the broader tech world, and we’re very excited that he’s joining us for an upcoming episode of Extra Crunch Live that will air on Wednesday, May 6th at 2pm ET/11am PT. Extra Crunch members may join the Zoom call or view the broadcast live (or on demand) on YouTube. If you’re not already a member, you can join here.

Before Botha graduated from Stanford, he had joined the ranks of the PayPal mafia, serving as the fintech startup’s director of corporate development. He climbed the ranks to vice president of finance and was eventually named CFO in 2001. He was just 28 went PayPal went public in 2002.

Following PayPal’s sale to eBay, Botha left the company to join Sequoia Capital in January of 2003; since then, he has been investing in some of the world’s fastest-rising startups.

Botha has been on Forbes’ Midas List every year since 2008 and was ranked third in 2020. He led Sequoia’s investments in companies like Instagram, YouTube and Square and is one of the most respected voices in tech and venture capital alike.

With the coronavirus thrashing the economy and forcing quick adaptation from the tech sector and beyond, Botha can provide a unique look at what comes next for tech and offer advice to startups that are trying to chart a course through a storm that has no end in sight.

We’ll ask Botha how he’s advising his own portfolio companies, any decision-making frameworks he suggests for business leaders who find themselves between a rock and a hard place and his general outlook on VC appetite over the next six to twelve months. There will also be plenty of time for questions from the audience, so come prepared.

You can find the Zoom info below.

Botha joins an incredible list of speakers joining us on Extra Crunch Live, including Kirsten Green, Mark Cuban and Hunter Walk. We’ll be announcing new speakers soon, so stay tuned!