Furloughed Tesla employees who are called back to work could lose unemployment benefits if they choose to stay at home due to COVID-19 concerns, the company’s head of human resources Valerie Workman wrote in an email sent to workers Wednesday.
The internal email, which was viewed by TechCrunch, suggested that the loss of benefits was up to the state and that Tesla wasn’t penalizing employees for choosing to stay at home. CNBC was the first to report the email.
“Once you are called back, you will no longer be on furlough so if you choose not to work, it may impact your unemployment benefits as determined by your local government agency — and not by Tesla,” Workman wrote in the email. “We completely respect your decision and will support you, without any penalties from us.”
Tesla CEO Elon Musk has said in internal emails to employees that if they feel uncomfortable returning to work, then they should stay at home. However, this latest email puts workers at a crossroads, return to work and risk contracting COVID-19 or stay at home and lose their unemployment benefits.
A screenshot of a portion of the email is posted below.
The email sent Wednesday provided an update to employees as Tesla prepares to restart production at its factory in Fremont, California. The factory has been a flashpoint in the debate over when and how businesses reopen amid the COVID-19 pandemic.
Musk has lobbed repeated criticisms at Alameda County and its health officials for extending a stay-at-home order to the end of May. Over the weekend, Musk threatened to pull Tesla operations out of the state and sue the county. Tesla filed Saturday a lawsuit against the county seeking injunctive relief.
Even as Musk publicly decried the county — going as far to tweet Monday that the factory was reopening in defiance of the stay-at-home order — negotiations between government officials and Tesla continued in the background. On Tuesday evening, Alameda County said that Tesla could reopen as soon as next week if it implements additional safety recommendations.
The statement from the Alameda County Public Health Department said that after receiving Tesla’s COVID-19 site-specific safety plan for its Fremont plant, officials “held productive discussions today with Tesla’s representatives about their safety and prevention plans, including some additional safety recommendations.”
Houseparty, the video chat app that’s seen a surge of growth during quarantine, is preparing to expand its service in a new direction: co-watching live video with friends. The company on Friday will launch its first experiential event series called In The House, which will feature over 40 celebrities who will dance, talk, cook, sing, workout, and more, over the course of three days.
Viewers of the event will be able to sing and dance with Alicia Keys and DaBaby; cook with Bad Bunny, José Andrés, and Christina Tosi; workout with Cam Newton and Terry Crews; and dance with Derek Hough and Addison Rae, for example.
Newer additions who were just confirmed this afternoon include Katy Perry, John Legend, David Blaine, Lindsey Harrod, Gabi Butler, Snoop Dogg, CHVRCHES, and Dua Lipa.
They join other participants already scheduled on the In The House website, including Zooey Deschanel, Keegan-Michael Key, Tinashe, Miguel, Robin Arzon, Jermey Fall, Jalaiah, Roy Choi, Chef Mike, The Shoe Surgeon, Jen Atkin, Aquaria, Westside Gunn, Ralph Garman, Sarah Michelle Gellar, Craig Robinson, Justin Willman, Conrad Rocha, Kerri Verna, Cam Newton, Marissa Mullen, Dr. Woo, JB Smoove, 2 Chainz, and Neil Patrick Harris,
The event will run from Friday, May 15 through Sunday, May 17 directly in the Houseparty app. To join in, you open the app when the content is live. Once there, you’ll see a billboard for the show that’s currently airing. This billboard will appear 30 minutes before each broadcast so you can subscribe to the event and receive a push notification when the show starts.
These live streams are not meant to be watched alone like other live videos often are –where users can only participate by typing in group chats or sending virtual likes. Instead, the idea is to join your friends on Houseparty in a group video chat, as usual, then tune into the live content and watch together.
You’ll see a TV icon appear when there’s a new stream to watch, Houseparty notes.
This live, co-watching experience is made possible thanks to Houseparty’s newly launched video player. The player is designed to sit on your screen but not cover up your friends’ faces, allowing you to watch and chat at the same time.
The live show is over, it will only re-air once, exactly 12 hours after the original show time. Then, it’s gone forever.
Houseparty soft-launched the video player last week when it hosted a virtual prom experience with D-Nice. But that was more of a test run ahead of this much larger and longer live event.
The company doesn’t see this weekend’s virtual celeb party as a one-off event, however. Instead, Houseparty sees this as the first of many live co-watching experiences still to come.
“While many entertainers have turned to performing online during these unprecedented times, this event is different from anything that has happened in the past few months. This is not just another virtual music festival – this weekend’s lineup is a curation of shared experiences: cooking demos, comedy shows, fitness secrets, dance parties, sing-a-longs, and more,” Houseparty spokesperson, Kimberly Baumgarten, told TechCrunch.
“Now that we have this live player it allows us to create more interactive experiences for our users to enjoy together in the future. This content will be additive to the Houseparty video chat experience for our users,” she said.
By focusing on co-watching within group video chats, Houseparty is in closer competition with Instagram, which just this March introduced co-watching of feed photos and videos. But Houseparty is offering planned and scheduled experience — allowing users to coordinate when they’ll join each other in the app, instead of leaving it up to chance.
Quarantine may have rushed this co-watching video technology into development and adoption. But it seems the next step for our high-speed connections was not just to “go live” in order to be watched, but the creation of a world where everyone goes live together — whether performer or viewer.
Your life probably involves a lot more videoconferencing now than it did a few weeks ago – even if it already did involve a lot. That’s not likely going to change anytime soon, so why not make the most of it? The average MacBook webcam can technically get the job done, but it’s far from impressive. There are a number of ways to up your game, however – by spending either just a little or a whole lot. Whether you’re just looking to improve your daily virtual stand-up, gearing up for presenting at a virtual conference, or planning a new video podcast, here’s some advice about what to do to make the most of what you’ve got, or what to get if you really want to maximize your video and audio quality.
Level 0
Turn on a light and put it in the right place
One of the easiest things you can do to improve the look of your video is to simply turn on any light you have handy and position it behind the camera shining on your face. That might mean moving a lamp, or moving your computer if all your available lights are in a fixed position, but it can make a dramatic difference. Check out these examples below, screen grabbed from my Microsoft Surface Book 2 (which actually has a pretty good built-in video camera, as far as built-in video cameras go).
The image above is without any light beyond the room’s ceiling lights on, and the image below is turning on a lamp and positioning it directed on my face from above and behind the Surface Book. It’s enough of a change to make it look less like I got caught by surprise with my video on, and more like I actually am attending a meeting I’m supposed to take part in.
Be aware of what’s behind you
It’s definitely too much to ask to set dress your surroundings for every video call you jump on, but it is worth taking a second to spot check what’s visible in the frame. Ideally, you can find a spot where the background is fairly minimal, with some organized decor visible. Close doors that are in frame, and try not to film in front of an uncovered window. And if you’re living in a pandemic-induced mess of clutter, just shovel the clutter until it’s out of frame.
Know your system sound settings
Get to know where the input volume settings are for your device and operating system. It’s not usually much of an issue, because most apps and systems set pretty sensible defaults, but if you’re also doing something unusual like sitting further away from your laptop to try to fit a second person in frame, then you might want to turn up the input audio slider to make sure anyone listening can actually hear what you have to say.
It’s probably controllable directly in whatever app you’re using, but on Macs, also try going to System Preferences > Sound > Input to check if the level is directly controllable for the device you’re using, and if tweaking that produces the result you’re looking for.
Level 1
Get an external webcam
The built-in webcam on most notebooks and all-in-ones isn’t going to be great, and you can almost always improve things by buying a dedicated webcam instead. Right now, it might be hard to find them in stock, since a lot of people have the same need for a boost in videoconferencing quality all at the same time. But if you can get your hands on even a budget upgrade option like the Logitech C922 Pro Stream 1080p webcam I used for the clip below, it should help with sharpness, low light performance, color and more.
Get a basic USB mic
Dedicated external mics are another way to quickly give your setup a big boost for relatively low cost. In the clip above, I used the popular Samson Meteor USB mic, which has built-in legs and dedicated volume/mute controls. This mic includes everything you need, and should work instantly when you plug it in via USB, and it produces great sound that’s ideal for vocals.
Get some headphones
Headphones of any kind will make your video calls and conferences better, since it minimizes the chance of echo from your mic picking up the audio from your own speakers. Big over ears models are good for sound quality, while earbuds make for less obvious headwear in your actual video image.
Level 2
Use a dedicated camera and an HDMI-to-USB interface
If you already have a standalone camera, including just about any consumer pocket camera with HDMI out capabilities, then it’s worth looking into picking up an HDMI-to-USB video capture interface in order to convert it into a much higher quality webcam. In the clip below I’m using the Sony RX100 VII, which is definitely at the high end of the consumer pocket camera market, but there are a range of options that should give you nearly the same level of quality, including the older RX100 models from Sony .
When looking for an HDMI interface, make sure that they advertise that it works with videoconferencing apps like Zoom, Hangouts and Skype on Mac and Windows without any software required: This means that they likely have UVC capabilities, which means those operating systems will recognize them as webcams without any driver downloads or special apps required out of the box. These are also in higher demand due to COVID-19, so the Elgato Cam Link 4K I used here probably isn’t in ready stock anywhere. Instead, look to alternatives like the IOGear Video Capture Adapter or the Magewell USB 3.0 Capture device, or potentially consider upgrading to a dedicated live broadcast deck like the Blackmagic ATEM Mini I’ll talk more about below.
Get a wired lav mic
A simple wired lavalier (lav) microphone is a great way to upgrade your audio game, and it doesn’t even need to cost that much. You can get a wired lav that performs decently well for as little as $20 on Amazon, and you can use a USB version for connecting directly to your computer even if you don’t have a 3.5mm input port. Rode’s Lavalier GO is a great mid-range option that also works well with the Wireless GO transmitter and receiver kit I mention in the next section. The main limitation of this is that depending on cord length, you could be pretty limited in terms of your range of motion while using one.
Get multiple lights and position them effectively
Lighting is a rabbit hole that ends up going very deep, but getting a couple of lights that you can move to where you need them most is a good, inexpensive way to get started. Amazon offers a wide range of lighting kits that fit the bill, or you can even do pretty well with just a couple of Philips Hue lights in gooseneck lamps positioned correctly and adjusted to the right temperature and brightness.
Level 3
Use an interchangeable lens camera and a fast lens
The next step up from a decent compact camera is one that features interchangeable lenses. This allows you to add a nice, fast prime lens with a high maximum aperture (aka a low ‘f’ number’) to get that defocused background look. This provides natural-looking separation of you, the subject, from whatever is behind you, and provides a cinematic feel that will wow colleagues in your monthly all-hands.
Get a wireless lav mic
A lav mic is great, but a wireless lav mic is even better. It means you don’t need to worry about hitting the end of your cable, or getting it tangled in other cables in your workspace, and it can provide more flexibility in terms of what audio interfaces you use to actually get your sound into the computer, too. A great option here is the RODE Wireless GO, which can work on its own or in tandem with a mic like the RODE Lavalier GO for great, flexible sound.
Use in-ear monitors
You still want to be using headphones at this stage, but the best kind to use really are in-ear monitors that do their best to disappear out of sight. You can get some dedicated broadcast-style monitors like those Shure makes, or you can spring for a really good pair of Bluetooth headphones with low latency and the latest version of Bluetooth. Apple’s AirPods Pro is a great option, as are the Bang & Olfusen E8 fully wireless earbuds, which I’ve used extensively without any noticeable lag.
Use 3-point lighting
At this stage, it’s really time to just go ahead and get serious about lighting. The best balance in terms of optimizing specifically for streaming, videoconferencing and anything else your’e doing from your desk, basically, is to pick up at least two of Elgato’s Key Lights or Key Light Airs.
These are LED panel lights with built-in diffusers that don’t have a steep learning curve, and that come with very sturdy articulating tube mounts with desk clamps, and that connect to Wi-Fi for control via smartphones or desktop applications. You can adjust their temperature, meaning you can make them either more ‘blue’ or more ‘orange’ depending on your needs, as well as tweak their brightness.
Using three of these, you can set up a standard 3-point lighting setup which are ideal for interviews or people speaking directly into a camera – aka just about every virtual conference/meeting/event/webinar use you can think of.
Level 4
Get an HDMI broadcast switcher deck
HDMI-USB capture devices do a fine job turning most cameras into webcams, but if you really want to give yourself a range of options, you can upgrade to a broadcast switching interface like the Blackmagic ATEM Mini. Released last year, the ATEM Mini packs in a lot of features that previously were basically only available to video pros, and provides them in an easy-to-use form factor with a price that’s actually astounding given how much this thing can really do.
On its own paired with a good camera, the ATEM Mini can add a lot to your video capabilities, including allowing you to tee up still graphics, and switch to computer input to show videos, work live in graphics apps, demonstrate code or run a presentation. You can set up picture-in-picture views, put up lower thirds and even fade-to-black using a hardware button dedicated to that purpose.
But if you really want to make the most of the ATEM Mini, you can add a second or even a third and fourth camera to the mix. For most uses, this is probably way too much camera – there are only so many angles one can get of a single person talking, in the end. But if you get creative with camera placement and subjects, it’s a fun and interesting way to break up a stream, especially if you’re doing something longer like giving a speech or extended presentation. The newer ATEM Mini Pro is just starting to ship, and offers built-in recording and streaming as well.
Use a broadcast-quality shotgun mic
The ATEM Mini has two dedicated audio inputs that really give you a lot of flexibility on that front, too. Attaching one to the output on an iPod touch, for instance, could let you use that device as a handy soundboard for cueing up intro and title music, plus sound effects. And this also means you can route sound from a high-quality mic, provided you have the right interface.
For top level streaming quality, with minimal sacrifices required in terms of video, I recommend going to a good, broadcast-quality shotgun mic. The Rode VideoMic NTG is a good entry-level option that has flexibility when it comes to also being mountable on-camera, but something like the Rode NTG3m mounted to a boom arm and placed out of frame with the mic end angled down towards your mouth, is going to provide the best possible results.
Add accent lighting
You’ve got your 3-point lighting – but as I said, lighting is a nearly endless rabbit hole. Accent lighting can really help push the professionalism of your video even further, and it’s also pretty easy and to set up using readily available equipment. Philips Hue is probably my favorite way to add a little more vitality to any scene, and if you’re already a Hue user you can make do with just about any of their color bulbs. Recent releases from Philips like the Hue Play Smart LED Light Bars are essentially tailor made for this use, and you can daisy chain up to three on one power adapter to create awesome accent wall lighting effects.
All of this is, of course, not at all necessary for basic video conferencing, virtual hangouts and meetings. But if you think that remote video is going to be a bigger part of our lives going forward, even as we return to some kind of normalcy in the wake of COVID-19, then it’s worth considering what elements of your system to upgrade based on your budget and needs, and hopefully this article provides some guidance.
Jonathan Greechan is co-founder of the world's largest pre-seed accelerator, Founder Institute, has run over 100 webinars including 100,000+ live attendees, and is one of Meetup's most active organizers.
Around the world, the COVID-19 pandemic is disrupting calendars — along with travel budgets and marketing plans — by canceling events ranging from major league sports to tech conferences. This has impacted the startup and tech industries on all levels; by early March, economic losses from tech event cancellations alone amounted to more than $1.1 billion.
In response, many businesses have taken events online. Teleconferencing tools are being used more than ever, and Zoom registered 200 million daily users in March, up from a record of 10 million. Business figures and organizations can harness these online tools to minimize the blow of the worldwide shutdown, reach their target audiences and position themselves as thought leaders, but moving events online has its own problems.
The more meetups are generated, the more likely it is that yours will get lost in a sea of options. It’s also significantly easier for people to “attend” an event — and ignore it or exit early. There are plenty of studies demonstrating that internet users have shorter attention spans.
So you have to stand out and keep people engaged while speaking to people through a screen thousands of miles away. Over the past decade I have run more than 100 webinars with over 100,000 live attendees, and am one of the largest Meetup organizers in the world. Through trial and error I have developed a set of best practices that will keep people engaged in online events.
Transmitting real value by computer is certainly more challenging than face-to-face, but following these three pointers will help you get there.
1. Prepare for all eventualities
We all know what a badly prepared organized meeting looks like: frozen screens, buffering videos and broken audio.
Uber is rolling out a series of changes to its ride-hailing and on-demand food delivery apps, beginning Monday, as cities and states lift stay-at-home orders prompted by the COVID-19 pandemic.
The changes, which includes an online checklist for all users, limits on the number of passengers in vehicles and a face mask verification feature for drivers, aims to stop the spread of COVID-19, the company said Wednesday.
“This is not a problem that can only be solved by the drivers or only can be solved by the riders, it is everyone’s responsibility,” said Sachin Kansal, senior director of product management at Uber, during a webinar Wednesday announcing the changes.
User policing lies at the heart of these new policies. Riders and drivers as well as delivery workers and even restaurants that use Uber Eats will have the power to report unsafe COVID-19 behavior and give low ratings. For instance, a delivery worker can give feedback that a restaurant doesn’t have proper protocols in place, such as social distancing. Meanwhile, a restaurant can provide feedback if a delivery driver isn’t wearing a mask.
“These feedback loops between all the parties are extremely important for us to maintain safety,” Kansal said.
The new policies will remain for the next several months, according to Kansal, who added that “as the situation on the ground changes, we will evolve our policies as well.”
All Uber app users will now have to read and agree to an online checklist before picking up a rider or trying to hail a ride, according to the company. The online checklist requires riders and drivers to confirm that they have taken certain steps such as putting on a face mask and washing their hands to help stop the spread of COVID-19.
Image Credits: Uber
Uber will encourage drivers and riders to cancel trips — a move that in the past could result in a lower rating — if they don’t feel safe or the user is not wearing a face mask or cover. If drivers or riders give a low rating, they can now pick “no face cover or mask” along with the other traditional options such as “late for pickup,” “disrespectful” or “cleaniness.” If the user chooses the “no face cover” option in their review, the rider or driver will be sent a message informing them about the requirements of being on the Uber platform.
Kansal said Uber will take riders or drivers off the platform if they repeatedly violate these requirements.
Drivers will have verify they’re wearing a mask before accepting trips, using Uber’s existing driver selfie technology. The app also features a video tutorial on how to wear a mask.
The selfie technology, which has been in use since 2016, isn’t available on the rider app. Instead, riders will be policed by drivers. Riders are also asked to keep the window open, if possible.
For now, Uber isn’t adding shared rides, known as Uber Pool. The company has also put new restrictions on UberX and UberXL rides. Riders are no longer allowed to ride in the front seat, which Uber says will allow for more distance in the car. The change means UberX can have a maximum of three passengers in the vehicle.
Senators have narrowly rejected a bipartisan amendment that would have required the government first obtain a warrant before accessing Americans’ web browsing data.
The amendment brought by Sens. Ron Wyden (D-OR) and Steve Daines (R-MT) — just seven lines in length — would have forced the government to first establish probable cause — or reasonable suspicion of a crime — to obtain the warrant. That’s a far higher bar than what’s required under existing law, which under the Patriot Act permits the bulk collection of Americans’ browsing records.
But the amendment fell short by one vote of the required 60 votes to pass the chamber.
Four senators did not vote on the amendment: Lamar Alexander (R-TN), who is in self-isolation after a staffer tested positive; Ben Sasse (R-NE); Patty Murray (D-WA); and former Democratic presidential candidate Bernie Sanders (I-VT).
Spokespeople for the absent senators did not immediately comment on why they did not vote.
The bill took aim at Section 215, a controversial law in the Patriot Act, which was signed into law in response to and a month after the September 11 terrorist attacks. The law allows the government to collect any “tangible thing” from libraries and other businesses — so long as it’s relevant to a national security inquiry.
But it was only after the Edward Snowden disclosures in 2013 onwards that the vast scope of the program was first revealed. The government had a secret interpretation of the Patriot Act that allowed it to collect call logs and internet browsing records directly from the internet and telecom giants. Jim Sensenbrenner, who authored the Patriot Act, expressed shock at how his legislation was used to spy on Americans and became a vocal advocate in pushing through reforms.
As Wyden explained in his speech to the Senate prior to the vote:
Right now, the government can collect web browsing and internet search history without a warrant under Section 215 of the Patriot Act. Section 215 is the most controversial and dangerous provision of [the Foreign Intelligence Surveillance Act]. That’s because it is so vague and so broad. Under Section 215, the government can collect just about anything so long as it is relevant to an investigation. This can include the private records of innocent, law-abiding Americans. They don’t have to have done anything wrong. They don’t have to be suspected of anything. They don’t even have to have been in contact with anyone suspected of anything. Their personal information just has to be “relevant.”
Wyden and Daines’ failed amendment is just one of several proposed reforms to the U.S. government’s surveillance powers, some of which — including Section 215 — which expired in March. The Senate is expected to vote on a final bill later this week.
Assuming none of the amendments pass, the final bill is likely to skip the House — which passed its version of the bill earlier this year — and await the president’s signature.
Senators have narrowly rejected a bipartisan amendment that would have required the government first obtain a warrant before accessing Americans’ web browsing data.
The amendment brought by Sens. Ron Wyden (D-OR) and Steve Daines (R-MT) — just seven lines in length — would have forced the government to first establish probable cause — or reasonable suspicion of a crime — to obtain the warrant. That’s a far higher bar than what’s required under existing law, which under the Patriot Act permits the bulk collection of Americans’ browsing records.
But the amendment fell short by one vote of the required 60 votes to pass the chamber.
Four senators did not vote on the amendment: Lamar Alexander (R-TN), who is in self-isolation after a staffer tested positive; Ben Sasse (R-NE); Patty Murray (D-WA); and former Democratic presidential candidate Bernie Sanders (I-VT).
Spokespeople for the absent senators did not immediately comment on why they did not vote.
The bill took aim at Section 215, a controversial law in the Patriot Act, which was signed into law in response to and a month after the September 11 terrorist attacks. The law allows the government to collect any “tangible thing” from libraries and other businesses — so long as it’s relevant to a national security inquiry.
But it was only after the Edward Snowden disclosures in 2013 onwards that the vast scope of the program was first revealed. The government had a secret interpretation of the Patriot Act that allowed it to collect call logs and internet browsing records directly from the internet and telecom giants. Jim Sensenbrenner, who authored the Patriot Act, expressed shock at how his legislation was used to spy on Americans and became a vocal advocate in pushing through reforms.
As Wyden explained in his speech to the Senate prior to the vote:
Right now, the government can collect web browsing and internet search history without a warrant under Section 215 of the Patriot Act. Section 215 is the most controversial and dangerous provision of [the Foreign Intelligence Surveillance Act]. That’s because it is so vague and so broad. Under Section 215, the government can collect just about anything so long as it is relevant to an investigation. This can include the private records of innocent, law-abiding Americans. They don’t have to have done anything wrong. They don’t have to be suspected of anything. They don’t even have to have been in contact with anyone suspected of anything. Their personal information just has to be “relevant.”
Wyden and Daines’ failed amendment is just one of several proposed reforms to the U.S. government’s surveillance powers, some of which — including Section 215 — which expired in March. The Senate is expected to vote on a final bill later this week.
Assuming none of the amendments pass, the final bill is likely to skip the House — which passed its version of the bill earlier this year — and await the president’s signature.
Amazon has received a fair amount of criticism for perceived inaction against seller price gouging during the COVID-19 pandemic. While the retail giant has made efforts to rein in the opportunist activity (pulling some half a million offending listings), critics have pointed to the company’s slow response, along with continued problems with a number of high-demand products sold through affiliates.
Today, however, the company’s VP of Public Policy, Brian Huseman, penned an open letter to Congress, asking lawmakers to make price gouging illegal during a national crisis. The executive notes that the policy has been an effective tool in states like Tennessee where such laws already exist.
“Our collaborative efforts to hold price gougers accountable have clarified one thing: to keep pace with bad actors and protect consumers, we need a strong federal anti-price gouging law,” Huseman writes. “As of now, price gouging is prohibited during times of crisis in about two-thirds of the United States. The disparate standards among states present a significant challenge for retailers working to assist law enforcement, protect consumers, and comply with the law.”
Jeff Bezos also addressed the issue in his annual shareholder letter last month, writing, “To accelerate our response to price-gouging incidents, we created a special communication channel for state attorneys general to quickly and easily escalate consumer complaints to us.”
The company has certainly taken some efforts to curb the act. As it notes, nearly 4,000 seller accounts have been suspended in the U.S. store for policy violations. But a cursory search for in-demand products yields plenty of prohibitively expensive listings for once-ubiquitous household products. Home cleaning supplies in particular have seen a massive spike in pricing.
We asked Thinknum to chart the price of Clorox-branded items from late last year through now and the graph speaks for itself:
As retail store shelves have gone bare, Amazon has become an essential lifeline for many — a fact that plenty of predatory sellers have been more than happy to capitalize on. Beyond essential supplies, prices have gone through the roof for a number of products currently in short demand, such as the Nintendo Switch, which has been squeezed through a combination of increased interest and supply chain issues.
The company rightfully notes that enforcing such policies as a matter of the law will be a kind of juggling act. “Put simply, we want to avoid the $400 bottle of Purell for sale right after an emergency goes into effect, while not punishing unavoidable price increases that emergencies can cause, especially as supply chains are disrupted,” Huseman writes. “Furthermore, any prohibitions should apply to all levels of the supply chain so that retailers and resellers are not forced to bear price gouging increases by manufacturers and suppliers.”
Amazon has received a fair amount of criticism for perceived inaction against seller price gouging during the COVID-19 pandemic. While the retail giant has made efforts to rein in the opportunist activity (pulling some half a million offending listings), critics have pointed to the company’s slow response, along with continued problems with a number of high-demand products sold through affiliates.
Today, however, the company’s VP of Public Policy, Brian Huseman, penned an open letter to Congress, asking lawmakers to make price gouging illegal during a national crisis. The executive notes that the policy has been an effective tool in states like Tennessee where such laws already exist.
“Our collaborative efforts to hold price gougers accountable have clarified one thing: to keep pace with bad actors and protect consumers, we need a strong federal anti-price gouging law,” Huseman writes. “As of now, price gouging is prohibited during times of crisis in about two-thirds of the United States. The disparate standards among states present a significant challenge for retailers working to assist law enforcement, protect consumers, and comply with the law.”
Jeff Bezos also addressed the issue in his annual shareholder letter last month, writing, “To accelerate our response to price-gouging incidents, we created a special communication channel for state attorneys general to quickly and easily escalate consumer complaints to us.”
The company has certainly taken some efforts to curb the act. As it notes, nearly 4,000 seller accounts have been suspended in the U.S. store for policy violations. But a cursory search for in-demand products yields plenty of prohibitively expensive listings for once-ubiquitous household products. Home cleaning supplies in particular have seen a massive spike in pricing.
We asked Thinknum to chart the price of Clorox-branded items from late last year through now and the graph speaks for itself:
As retail store shelves have gone bare, Amazon has become an essential lifeline for many — a fact that plenty of predatory sellers have been more than happy to capitalize on. Beyond essential supplies, prices have gone through the roof for a number of products currently in short demand, such as the Nintendo Switch, which has been squeezed through a combination of increased interest and supply chain issues.
The company rightfully notes that enforcing such policies as a matter of the law will be a kind of juggling act. “Put simply, we want to avoid the $400 bottle of Purell for sale right after an emergency goes into effect, while not punishing unavoidable price increases that emergencies can cause, especially as supply chains are disrupted,” Huseman writes. “Furthermore, any prohibitions should apply to all levels of the supply chain so that retailers and resellers are not forced to bear price gouging increases by manufacturers and suppliers.”
So, an eight-year product veteran from Facebook and an internationally renowned barista walk into a coffee bar…
It’s not a joke. It’s the origin story for Taika, a new startup that’s aiming to bring natural stimulants to the masses through its juiced up coffee-beverages.
The two co-founders, Michael Sharon, an eight-year veteran of Facebook’s mobile product division, and Kalle Freese, a champion barista (it’s a thing) and the co-founder of Sudden Coffee are on a mission to bring consumers what Sharon calls “stealth health”.
Talk to any of Sharon’s friends and it’s plain to see that the man loves his coffee. While at Facebook he’d down pour overs in the morning and espresso shots throughout the day, but the side effects left him… “tweaky”.
So, like any good product designer and engineer, Sharon set out to try and make a better cuppa. The South African native developed a stack of different natural additives that he would add to his morning ‘joe in an effort to provide a steady source of stimulation — without any side-effects throughout the day.
The cornerstone of Sharon’s putatively potent potables is an ingredient commonly found in tea called L-theanine. “I had these compounds and these stacks that I was putting together for myself,” said Sharon. “[And] I realized they were super beneficial, but when i tried to get my friends interested and said ‘Here are the twenty things you need to buy,’ people would lose interest and walk away.”
It was in those moments that Sharon came up with the notion of “stealth health”, if his friends were rejecting his attempts to try out his curated stack of ingredients on their own, he’d just make a product that would package them into a handy beverage and foist them on an unwitting world.
Sharon stresses that his company is based on the latest science and that nothing that’s included in Taika’s coffee-based drinks is a novel compound or regulated substance. They’re all supplements that are known quantities in the wellness world.
“We are, as a company, we’re very much science aware and science supported,” said Sharon. “We’re not science blocked… The compounds that I’ve experimented with.. I’ve experimented with them myself and experimented with them on my partner and started this larger beta program.”
Bringing software-style beta testing to the beverage business
Sharon met Freese in 2018 after a two-and-a-half year hiatus from Facebook that saw the veteran product designer try his hand at kite surfing, wind surfing, surfing, photographing polar bears in Svalbard, and visiting the world’s only desert with fresh water lagoons.
That summer the coffee snob met the world’s best barista and a friendship was formed that would blossom into the partnership at the heart of Taika. Sharon had already made an investment in the coffee world through a small stake in Blue Bottle and was ready to take the plunge into startup land.
“When i met Kalle we started riffing on a whole bunch of insane ideas,” said Sharon. “After two months we were like… Why don’t we try to take some of these compounds and put together a formula.”
Since none of the compounds that the company uses need to be approved by the FDA, because they’re classified as “Generally Recognized As Safe”, Taika was able to begin formulating.
The company started off as a direct sales business, giving away coffee to friends and friends-of-friends. Then they started delivering to what Sharon called micro-kitchens. From there, the business grew and continued growing. the two co-founders began dropping off their brews at corporate offices.
Their first big human beta test was at the offices of the now-defunct legal startup Atrium. “They were — like — 80 people at that stage,” said Sharon. And they were also providing legal services to Taika as a newly launched startup. “They went through the coffee in the first two weeks,” said Sharon.
From the initial run of a regular coffee, the company added an oat milk latte and that’s when Sharon and Freese knew they were off to the races.
“This coffee is like secretly healthy,” said Sharon. “We have no added sugar in the coffee. We know coffee is a healthy compound and we have a bunch of these compounds that are very healthy but not widely known. This stealth-health concept stuck around.”
Taika includes a phone number for customer feedback on the packaging and the company is constantly tweaking its formulations. It’s now up to version 0.8 on its three drinks, which include a black coffee, an oat milk latte and a macadamia nut latte. The drinks also include functional ingredients like L-theanine, ashwagandha, and functional mushrooms like cordyceps, reishi, and lion’s mane. The company uses allulose as a sweetener, which doesn’t impact blood sugar levels and is better than table sugar, Sharon said.
“We definitely think that it’s healthy, but we don’t think you have to compromise on the taste,” said Sharon. “We asked ourselves what are the right extracts that we can use that will have an effect.. Everybody is different and everybody psychoactive compound effects people differently.. The compounds we put in this coffee are going to affect people differently..
Repeatedly, Sharon returns to the concept of providing a stealth way to introduce healthy compounds and chemicals into a consumer’s day and diet.
“There are established supply chains for these things,” said Sharon. “One of the first things we worked on was the formulation. We ended up with this specific mix of five. They helped us dial in the right headspace and they’re all natural compounds. These are things that have been consumed by humans for thousands of years.”
It’s working with the coffees. So far the company has sold 50,000 cans and it’s now available at stores across San Francisco including Buy Rite, Epicurian Trader, Rainbow Grocery and has even managed to make its way through COVID-19 shelter in place orders to the five Erewhon locations in Los Angeles.
Taika takes its name for the Finnish word for magic and, according to Sharon, it’s a good corollary for how the beverage makes you feel.
The company has raised $2.7 million in seed funding to date to take its product to market from firms like Kindred Ventures (which has backed companies like Coinbase , Blue Bottle Coffee , Postmates , Zymergen) and individual investors like James Joaquin.
And coffee is just the beginning, according to Sharon.
“If we’re able to take sugar and milk out of their day… and we’re not beating them over the head with the health aspects… there are a ton of products out there that we could turn into stealth health products,” he said.