Author: azeeadmin

15 Mar 2021

Olo raises IPO range as DigitalOcean sees possible $5B debut valuation

It’s a busy day in IPO-land: Olo has raised its IPO range and DigitalOcean is giving us a first look at what it may be worth when it debuts.

That Olo raised its IPO price is not a huge surprise, given the software company’s rapid growth and profits. In the case of DigitalOcean, we have a bit more work to do as its approach to growth is a bit different.

Let’s explore both companies’ pricing intervals through our usual lens of revenue multiples, market comps and general SaaS sass. And we’ll do this in alphabetical order, which puts the cloud infra company up first.

DigitalOcean’s IPO price range

According to its S-1/A filing, DigitalOcean expects its IPO to price between $44 and $47 per share. The price range is a coup for the company’s private investors, who as recently as the company’s 2020 Series C paid about $10.59 each for the company’s shares. Andreessen Horowitz is going to do very well, having led the company’s Series A at a per-share price of just more than $2. IA Ventures, which led DigitalOcean’s seed round, according to Crunchbase, paid just $0.26 per share back in the 2012-2013 time frame. That’s going to convert well.

In valuation terms, the company’s simple share count post-IPO will be 105,303,340, or 107,778,340 if its underwriters purchase their option. At $44 to $47 per share, DigitalOcean is worth $4.72 billion to $5.07 billion, including shares designated for its underwriters.

The company’s fully diluted valuation is higher. At midpoint, Renaissance Capital estimates DigitalOcean’s diluted valuation is $5.6 billion. That works out to a little under $5.8 billion at $47 per share.

Taking a look at DigitalOcean’s Q4 2020 revenue of $87.5 million, the company closed last year on a run rate of $350 million. Or a revenue multiple of 14.5x at the upper end of its non-diluted valuation, and around 16.5x at the upper bound of its diluted worth.

15 Mar 2021

Swell launches its app for asynchronous voice conversations

You might think that Clubhouse is the final word on audio-centric social networks, but a San Francisco startup called Swell is launching its own iOS and Android app focused on voice conversations.

The big difference: While conversations on Clubhouse all happen in real-time — meaning that you’ve got to listen live or miss it all (at least for now) — Swell is focused on asynchronous comments. In other words, users post a standalone audio clip that can be up to five minutes in length (with an accompanying image and links), then other users can browse, listen and leave their own audio responses in their own time.

Swell supports audio-only group chats and private conversations, as well as public “Swellcasts,” that are more akin to a bite-sized podcact, or a Clubhouse-style conversation that’s structured more like a comment thread than a free-for-all. Users can also promote their public posts through their own pages on the Swellcast website.

Swell is led by husband-and-wife team Sudha Varadarajan and Arish Ali, who previously founded e-commerce company Skava and sold it to Infosys.

Varadarajan (the startup’s CEO) described the app as an attempt to “democratize” audio content creation, with no special equipment or serious production required, and allowing users to talk about anything. (In one example, the Swellcaster was outside talking about their front lawn.)

At the same time, she suggested that the app was created less as a response to Clubhouse and more as a general antidote to social media, where the pair saw increasing polarization and fewer genuine conversations.

Audio isn’t hardly immune to ranting and anger — just look at talk radio. But Varadarajan suggested that making the posts asynchronous doesn’t just make it easier for listeners to catch up; it also improves the quality of the conversation: “People really think about what they’re going to say.”

She added that the company is determined to avoid any ad-based business models and instead make money by charging for premium tools and Swellcasts.

Until now, Swell has only been open to a small group of users. Today it’s launching more broadly, in advance of its session tomorrow at the virtual SXSW, “Voice is transforming our online presence. Why?

15 Mar 2021

BMW debuts the next generation of its iDrive operating system

For modern cars, the standalone, photo frame-like display in the center of the dashboard has become something of a default. But with its next-generation iDrive 8 system, BMW is moving away from this design language by introducing what it calls the “BMW Curved Display,” which takes this idea to the next level by expanding that center display all the way through the cockpit. It’s actually still two screens, the 12.3-inch information display and 14.9-inch control display, but it looks like a single curved display that BMW describes as giving an “appearance of almost floating.”

The new curved display with the new iDrive 8 system will debut in the upcoming all-electric iX and i4, which should arrive later this year.

While the company isn’t sharing any details about the underlying technology stack just yet, BMW is willing to say that its new stack is able to process 20 to 30 times more data than the previous system. The company plans to share more details about the stack after July, Frank Weber, BMW’s head of development, told me during a press roundtable earlier today.

Image Credits: BMW

The company provided a first glimpse of the new layout when it announced the iX last November, but at the time, it didn’t provide any details about the new iDrive system. At the core of it is, unsurprisingly, a wholesale redesign of the user interface. Drivers will be able to choose between different layouts, for example. There’s a standard “Drive” layout for example, which will feature “a dynamically changing area in the center of the information display to show individually selectable information.” There’s also a “focus” mode for “dynamic driving situations,” a “gallery” layout that minimizes driving info in favor of other widgets from apps like your media source and, for when you just want to drive and be left in peace, a “calm” mode that only shows your vehicle speed in the center of the information display, and virtually nothing else.

Image Credits: BMW

There also are three different driving modes: efficient, sport and personal, which allows you to change some of the core driving experience settings like engine throttle, steering characteristics and chassis settings, as well as the audio characteristics of the car.

For maps, which are probably still the most-often used app in any car, there are also three different modes (adaptive, reduced and expanded), all going back to the central idea that the drivers should be able to decide how much information they want to see.

That’s a lot of personalization options and Weber acknowledged as much, but he also argues that the company has made them easy to use so that they don’t overwhelm the driver — and that a lot of drivers really want this functionality.

“When you test our system in China, you cannot do enough for personalization, they almost want to personalize everything,” Weber explained. “And then there are other people who say: I just want to drive my vehicle, I don’t want to see any of that. Therefore, what we did is, we have included a ‘My Mode’ function — a very simple surface in the vehicle. When you push My Mode, you find Sport and you find Efficiency and you find Personal here. And there, it is very easy to almost say ‘Do I want something that is very reduced? Or do I want something that has all the possibilities of personalization?’ There are very artful things that we have included in here. And there are very simple choices.”

Image Credits: BMW

And talking about personalization, with the BMW ID, the company now offers a new system for saving those personalized settings on your smartphone and the new My BMW app.

With this update, BMW is also launching the next generation of its BMW Intelligent Personal Assistant, which made its debut at TechCrunch Disrupt a few years ago. Built on top of Microsoft’s Azure Cognitive Services, the improved in-car assistant will get better at interacting with drivers through a more natural dialog, but in addition to voice interactions, BMW is now also adding more visual components and integrating the assistant with its gesture recognition capabilities. We’ll have to see this in action to see how this works in practice. So far, BMW hasn’t shared a lot of details about these features.

Image Credits: BMW

“In communication between people, a great deal of information is conveyed non-verbally,” the company explains. “The BMW Intelligent Personal Assistant has thus been upgraded with a greater focus on how it is presented visually. This new visualization approach features spheres of light in differing sizes and brightness levels, giving the assistant more space and new ways of expressing itself. This visual image also gives it a “face” with a clearly visible point of focus and identifiable states of activity.”

Like with the iDrive 7 system, this new operation system will also support remote software upgrades, either over the air thanks to the car’s built-in SIM card and cell connectivity (up to 5G for the iX) or through the My BMW app.

As for current cars with the iDrive 7, Weber noted that those cars will get some of the features from iDrive 8 that can be ported back to it — and iDrive 7 will continue to get updates as well.

Image Credits: BMW

“It’s a little bit like in the smartphone world,” Weber said. “All the things — and the good and interesting new things from iD8 that can be transferred to iD7, iD7 we’ll get those upgrades. But like a particular function on a phone, not all of them can be transferred back to the previous generation. So most of it can be transferred, but not all of them. But certainly, we will continue to work on updating the previous generation. We won’t stop that.”

As a side note, Weber also addressed the current chip shortage that has led some car manufacturers to slow down production. He noted that since about Christmas, BMW is “fighting for every single production day” but hasn’t lost a single production day yet. He wasn’t willing to make any forecasts, but noted that the company has started to develop alternative solutions on the engineering side. “So far, we are really able and capable of adjusting our pipeline, so that we didn’t have to stop any production at this point,” he said.

 

15 Mar 2021

The Station: Via makes a $100M acquisition and a chat with GM about battery tech

The Station is a weekly newsletter dedicated to all things transportation. Sign up here — just click The Station — to receive it every weekend in your inbox

Hi friends and new readers, welcome back to The Station, a newsletter dedicated to all the present and future ways people and packages move from Point A to Point B.

I changed things up this week to make room for an interview we had with Mike Lelli, senior manager of advanced battery cell technology over at GM. That means I don’t have the typical roundup at the bottom of EVERYTHING, or most things, that happened this week. But don’t worry, I’ll bring that back next issue.

You might recall, or maybe not, that GM president Mark Reuss announced last week a partnership with SolidEnergy Systems, an MIT spinoff. GM and SES plan to work together to improve the energy density of lithium-ion batteries. The companies are going to build a prototyping facility in Woburn, Massachusetts and aim to have a high-capacity, pre-production battery by 2023.

As one reader pointed out to me, the partnership is an interesting next step in GM’s interest in SES. Five years ago, GM Ventures, the VC arm of the automaker, invested in SES. Rohit Makharia, a longtime engineer turned investment manager at GM Ventures, is now the COO at SES. In other words, this isn’t some casual relationship.

Scroll below for a Q&A with Lelli.

Email me at kirsten.korosec@techcrunch.com to share thoughts, criticisms, offer up opinions or tips. You can also send a direct message to me at Twitter — @kirstenkorosec.

Q&A: GM’s battery plans

the station electric vehicles1

After the partnership between GM and SolidEnergy Systems was announced, we (meaning me and TC reporter Rebecca Bellan) jumped on the phone with Mike Lelli, senior manager of advanced battery cell technology at GM, to try and learn about about the automaker’s battery plans.

Specifically, we wanted to find out if SES was going to be providing the tech for the next generation of Ultium batteries. I’m not talking about the first generation of Ultium batteries that are going in the upcoming GMC Hummer. We’re talking next generation. We also wanted to learn more about GM’s approach to battery development.

The interview with Lelli was edited for clarity and brevity.

TECHCRUNCH: You’ve said that GM is trying to increase energy twofold and reduce the cost of batteries by 60%. So are you aiming to work directly with SolidEnergy Systems on building the next generation of Ultium batteries?

LELLI: The SolidEnergy Systems arrangement includes building a prototype line in Massachusetts. So, this new technology will be built on that line.

TECHCRUNCH: Are you looking at any other battery tech startups to help speed R&D along?

LELLI: I would just say, stay tuned on that; we have a lot more to announce in the future. In the meantime, work is continuing on lithium-metal batteries and other related technologies at our R&D lab. We’re working on many different technologies at this point, including high voltage cathode, electrolytes, dry processing, battery raw materials etc.

TECHCRUNCH: GM already has a lot of critical IP in the space of lithium metal batteries. How is SES filling in the gaps?

LELLI: Well they have strengths and we have strengths and that’s the beauty of this arrangement. SolidEnergy Systems is a very innovative technology company and they offer many novel ideas around lithium metal anode technology, and manufacturing and, of course, we do as well. That’s where their strength is.

They also have a strength in electrolytes, but we have a strength in electrolytes as well and we have IP around electrolytes that we think could be an enabler to this technology. We have 49 patents and over 45 pending in this lithium metal space, so we’ve been working on it for a while. This isn’t something that we’ve thought about, you know, a year ago and saying, ‘hey what are we going to do next?’ This is stuff we’ve been working on for quite some time.

TECHCRUNCH: How is GM thinking about pushing for reductions in nickel and cobalt? Is that a priority?

LELLI: When we came out with the event last year on the Ultium battery, we were very focused on the precious metals. And you may remember that we commented that our cathode would be NCMA — nickel, cobalt, manganese, aluminum. We said that technology we were taking on because it was able to reduce cobalt by over 70%, and we’re able to do that by building a cathode with aluminum. 

We’re always focused on these raw materials and reducing high-cost materials and materials that are hard to get. That’s part of my group’s job; my group is responsible for the technology roadmap relative to all these different spaces within the cell: the cathode active material, separator, electrolyte, anode material, the different ways to process the cathode in manufacturing —  right now we have a wet process and if we can get dry to work, it’ll be less expensive. We work in all of these spaces simultaneously to reduce costs.

The beauty with the SolidEnergy arrangement is that we can put any of those cathodes that we develop and we can tie that to the lithium metal anode. The key work we’re doing with SolidEnergy is getting the lithium anode technology to work, and then we can, at some point in time, continue to change the cathode part of that cell for further cost reduction and less reliance on some of these critical battery materials out there.

TECHCRUNCH: The work around the anode is really the key to unlocking that energy density, is my understanding. Are there any other benefits?

LELLI: Equally important is the electrolyte. Because the electrolyte is not just a commodity where you can buy it and put it in. It has the electrochemistry and the kinetic of electrochemistry in the cell are very dependent on the electrolyte.

And so the life of a cell will be very dependent on what electrolyte — and the electrochemistry behind that electrolyte — and how it reacts with the materials you’re using, like lithium.

Lithium gives us energy density, but then you also have to design a cell that lasts many cycles, and so to do that you have to understand all the other parts and pieces of the cell that enable that. An electrolyte is an extremely critical part of that. 

TECHCRUNCH: Is SES only working with GM or is it working with other automakers or clients?

LELLI: SolidEnergy Systems can work with other OEMs and, of course, we can work with other technologies. We’re not restricting SolidEnergy Systems in any way.

TECHCRUNCH: What are you expecting the range to be for the next generation of Ultium batteries?

LELLI: It’s conceivable that the range of our production in lithium metal batteries could be as high as 500 to 600 miles, but that really depends on the car you’re putting it into. If you put the same battery in a truck, it’s not going to have the range that if we took that same battery and put it in a small car. It really depends on the product you’re putting the battery in to answer that question, but to give you a frame of reference, 500 to 600 miles is conceivable.

TECHCRUNCH: Has GM identified which vehicles will receive the first generation Ultium battery, besides the GMC Hummer?

The Cadillac Lyriq and the Cruise Origin will be among the first. 

Deal of the week

money the station

Earlier this year, I predicted that Via was going to have a big year; I was right. The on-demand shuttle startup turned mobility-as-a-service provider has been expanding, snapping up contracts with cities globally. And now it’s expanding through acquisitions.

Via bought Remix, the startup that developed mapping software used by cities for transportation planning and street design, for $100 million in cash and equity. Remix will become a subsidiary of Via, an arrangement that will let the startup maintain its independent brand. Remix’s 65 employees and two of its co-founders — CEO Tiffany Chu and CTO Dan Getelman — will stay on.

Remix’s strength is in planning, while Via brings expertise in software and operations. The acquisition should nicely rounded out Via’s current business and help it capture more customers, which currently number more than 350 local governments in 22 countries.

I’m not so sure that Via is done. I expect more deal making — maybe even a bid to go public — by this company that last year hit a $2.25 billion valuation after raising $400 million in a Series E round.

Other deals that got my attention … 

Damon Motors, the electric motorcycle company, raised more than $30M in funding, completing a bridge round led by Benevolent Capital, SOL Global Investments, Zirmania, and others.

FlexClub, the South African-based car subscription startup founded in 2019, raised $5 million in equity and debt. This is a seed extension round, bringing the total investment raised by FlexClub to over $6 million. The company recently expanded to Mexico.

Optibus, the transit-focused software-as-service company based in Israel, raised a $107 million in a Series C round co-led by Bessemer Venture Partners and Insight Partners.

Populus AI, a San Francisco-based startup founded in 2017, has raised $5 million from new investors Storm Ventures and contract manufacturing and supplier company Magna along with existing backers Precursor, Relay Ventures and Ulu Ventures. The company has raised nearly $9 million to date.

Zego, the insurtech that got its start by offering flexible motorbike insurance for gig economy workers, has raised $150 million. DST Global led the London-based company’s C round, which gave it a $1.1 billion valuation and a unicorn status.  Other new backers include General Catalyst, whose founder and MD, Joel Cutler, joins Zego’s board. Zego has since expanded its business to offer a range of tech-enabled commercial motor insurance products.

A deep dive: the Volkswagen ID. 4

vw id 4 electric crossover

Image Credits: Volkswagen

I recently brought on Abigail Bassett, a World Car Juror and longtime journalist who writes about cars and tech (among other topics) to review some of the most important vehicles of 2021. Last month, Tamara Warren (another longtime reporter in autos and tech) reviewed the Aston Martin DBX, a vehicle that is critical to the automaker’s survival.

This month, Bassett takes a deep dive into the Volkswagen ID. 4, a five-passenger, fully electric crossover with a starting price of $33,995 (before federal or state incentives).

The ID. 4 matters. A lot. Volkswagen, once a dabbler in electric vehicles, is now betting its future on the technology.

Did the ID.4 make the grade? Bassett tested it on three different occasions. I suggest you read the whole article, but for those busy folks here is the tl;dr: The VW ID.4 offers a balanced blend of technology, comfort and design for a more affordable price. It offers solid technology without being so out of this world that your average crossover buyer will balk … with one exception. The lack of seamless charging makes finding and then connecting to a third-party charging station a clunky, even complex experience.

Read more by clicking below.

15 Mar 2021

Court overturns Amsterdam’s three-district ban on Airbnb rentals

A ban by Amsterdam authorities on housing owners offering their properties for vacation rentals in three central districts of the popular tourist city has been overturned after a court ruled it has no basis in law.

City authorities had been responding to concerns over the impact of tourist platforms like Airbnb on quality of life for residents.

An update to the city’s website notes that, from tomorrow, it will be possible for property owners to apply for a holiday rental permit in the three neighborhoods where vacation rentals had been entirely banned from July 1 last year.

City authorities write that they are studying the court ruling and will update the page “as soon as more is known”.

Amsterdam’s authorities took the step of prohibiting vacation rentals in the Burgwallen-Oude Zijde, Burgwallen-Nieuwe Zijde and Grachtengordel-Zuid districts last summer after a consultation process found widespread support among residents for a ban.

Authorities said strong growth in tourist rentals was impacting quality of life for residents.

It has also previously introduced a permit system to control vacation rentals in other districts of the city — which limits rentals to (currently) a maximum of 30 nights per year and for a maximum of four people per rental.

A further condition of the permit states that: “Your guests [must] not cause any inconvenience.”

Following the court ruling that permit system will operate in the three central districts too.

The city’s ban on vacation rentals in the central districts was challenged by an association (Amsterdam Gastvrij) that represents the interests of homeowners who rent their properties through Airbnb and other platforms. They had argued that the Housing Act 2014 did not provide a legal basis for a prohibition on holiday rental. 

The Court of Amsterdam agreed, writing in its judgement that “a system of permits cannot contain a total prohibition”.

“Anyone who meets the conditions of the permit is in principle eligible for a permit. A total ban is a major infringement of the right to property and the free movement of services and will only be seen as a justified measure in very exceptional circumstances,” it further emphasized. 

An Airbnb spokesperson told us the company was not involved in the proceedings to challenge the ban but it was keen to highlight the outcome. 

However the court’s verdict leaves room for the city to amend legislation to add new conditions to the permit system which could include a ‘quality of life’ consideration (which it does not currently).

The court also suggests the possibility of a quota system with a night criterion being introduced under existing legislation, as another means of using the permit system to manage quality of life. It further suggests city authorities could enforce residential (rather than touristic) purposes for houses via a zoning plan. So there are alternative avenues for Amsterdam’s officials to explore as a policy tool to limit activity on Airbnb et al.

At the same time the court ruling underlines the challenges European cities face in trying to regulate the impacts of rental platforms on areas like housing availability (and affordability) and wider quality of life issues for residents dealing with over-tourism (not currently an issue, of course, given ongoing travel restrictions related to the coronavirus pandemic).

In recent years a number of major tourist cities in Europe have expressed public frustration over vacation rental platforms — penning an open letter to the European Commission back in 2019 that called for “strong legal obligations for platforms to cooperate with us in registration-schemes and in supplying rental-data per house that is advertised on their platforms”.

“Cities must protect the public interest and eliminate the adverse effects of short term holiday rental in various ways. More nuisances, feelings of insecurity and a ‘touristification’ of their neighbourhoods is not what our residents want. Therefore (local) governments should have the possibility to introduce their own regulations depending on the local situation,” they also wrote, urging EU policymakers to support a rethink of the rules.

Since then the Commission has announced a limited data-sharing arrangement with the leading vacation rental platforms, saying it wants to encourage “balanced” development of peer-to-peer rentals.

Last year the Dutch government pressed the Commission to go further over data access to vacation rental platforms — pushing for a provision to be included in a major planned update to pan-EU rules wrapping digital services, aka the Digital Services Act (DSA).

The DSA proposal, which is now going through the EU’s co-legislative process, is broadly targeted at standardizing processes for tackling illegal goods and services — so it could have implications for vacation platforms in areas like data-sharing where it relates to illegal vacation rentals (i.e. where a property is advertised without a required permit).

 

15 Mar 2021

Court overturns Amsterdam’s three-district ban on Airbnb rentals

A ban by Amsterdam authorities on housing owners offering their properties for vacation rentals in three central districts of the popular tourist city has been overturned after a court ruled it has no basis in law.

City authorities had been responding to concerns over the impact of tourist platforms like Airbnb on quality of life for residents.

An update to the city’s website notes that, from tomorrow, it will be possible for property owners to apply for a holiday rental permit in the three neighborhoods where vacation rentals had been entirely banned from July 1 last year.

City authorities write that they are studying the court ruling and will update the page “as soon as more is known”.

Amsterdam’s authorities took the step of prohibiting vacation rentals in the Burgwallen-Oude Zijde, Burgwallen-Nieuwe Zijde and Grachtengordel-Zuid districts last summer after a consultation process found widespread support among residents for a ban.

Authorities said strong growth in tourist rentals was impacting quality of life for residents.

It has also previously introduced a permit system to control vacation rentals in other districts of the city — which limits rentals to (currently) a maximum of 30 nights per year and for a maximum of four people per rental.

A further condition of the permit states that: “Your guests [must] not cause any inconvenience.”

Following the court ruling that permit system will operate in the three central districts too.

The city’s ban on vacation rentals in the central districts was challenged by an association (Amsterdam Gastvrij) that represents the interests of homeowners who rent their properties through Airbnb and other platforms. They had argued that the Housing Act 2014 did not provide a legal basis for a prohibition on holiday rental. 

The Court of Amsterdam agreed, writing in its judgement that “a system of permits cannot contain a total prohibition”.

“Anyone who meets the conditions of the permit is in principle eligible for a permit. A total ban is a major infringement of the right to property and the free movement of services and will only be seen as a justified measure in very exceptional circumstances,” it further emphasized. 

An Airbnb spokesperson told us the company was not involved in the proceedings to challenge the ban but it was keen to highlight the outcome. 

However the court’s verdict leaves room for the city to amend legislation to add new conditions to the permit system which could include a ‘quality of life’ consideration (which it does not currently).

The court also suggests the possibility of a quota system with a night criterion being introduced under existing legislation, as another means of using the permit system to manage quality of life. It further suggests city authorities could enforce residential (rather than touristic) purposes for houses via a zoning plan. So there are alternative avenues for Amsterdam’s officials to explore as a policy tool to limit activity on Airbnb et al.

At the same time the court ruling underlines the challenges European cities face in trying to regulate the impacts of rental platforms on areas like housing availability (and affordability) and wider quality of life issues for residents dealing with over-tourism (not currently an issue, of course, given ongoing travel restrictions related to the coronavirus pandemic).

In recent years a number of major tourist cities in Europe have expressed public frustration over vacation rental platforms — penning an open letter to the European Commission back in 2019 that called for “strong legal obligations for platforms to cooperate with us in registration-schemes and in supplying rental-data per house that is advertised on their platforms”.

“Cities must protect the public interest and eliminate the adverse effects of short term holiday rental in various ways. More nuisances, feelings of insecurity and a ‘touristification’ of their neighbourhoods is not what our residents want. Therefore (local) governments should have the possibility to introduce their own regulations depending on the local situation,” they also wrote, urging EU policymakers to support a rethink of the rules.

Since then the Commission has announced a limited data-sharing arrangement with the leading vacation rental platforms, saying it wants to encourage “balanced” development of peer-to-peer rentals.

Last year the Dutch government pressed the Commission to go further over data access to vacation rental platforms — pushing for a provision to be included in a major planned update to pan-EU rules wrapping digital services, aka the Digital Services Act (DSA).

The DSA proposal, which is now going through the EU’s co-legislative process, is broadly targeted at standardizing processes for tackling illegal goods and services — so it could have implications for vacation platforms in areas like data-sharing where it relates to illegal vacation rentals (i.e. where a property is advertised without a required permit).

 

15 Mar 2021

4 signs your product is not as accessible as you think

For too many companies, accessibility wasn’t baked into their products from the start, meaning they now find themselves trying to figure out how to inject it retrospectively. But bringing decades-long legacy code and design into the future isn’t easy (or cheap).

Businesses have to overcome the fear and uncertainty about how to do such retrofitting, address the lack of education to launch such projects, and balance the scope of these iterations while still maintaining other production work.

Among the U.S. adult population, 26% live with some form of disability, and businesses that are ignorant or slow to respond to accessibility needs are producing digital products for a smaller group of users. Someone who is a neophyte might not be able to use a product with overwhelming cognitive overhead. Someone using a product that isn’t localized may not be able to refill their prescription in a new country.

We recently saw this play out in the “cat lawyer” episode, which the kitten-faced attorney took in good humor. But it also reminded us that many people struggle with today’s basic tools, and for those who don’t, it’s hard to understand just how much this disrupts people’s personal and professional lives.

If you’re a founder with a software product out there, you probably won’t receive as loud an alarm bell as a viral cat filter video to tell you that something’s wrong. At least not immediately. Unfortunately, that time will come because social media has become the megaphone for support issues. You want to avoid that final, uncontrollable warning sign. Here are four other warning signs that make clear your product is not as accessible as you might think — and how you can address that.

1. You didn’t define a11y principles at the start of your journey

Accessibility is a key ingredient in your product cake — and it’ll always taste best when it’s added to the mix at the beginning. It’s also more time- and cost-effective, as fixing a usability issue after the product has been released can cost up to 100 times more than earlier on in the development process.

Your roadmap should work toward the four principles of accessibility, described using the acronym POUR.

  • Perceivable: Your users need to be able to perceive all of the information displayed on your user interface.
  • Operable: Your users must be able to operate and navigate your interface components.
  • Understandable: Your content and the functioning of your user interface must be clearly understandable to users.
  • Robust: Your content has to be robust enough that a wide variety of users can continue to access it as technologies advance, including assistive technologies.

Without following each of these principles consistently, you cannot guarantee that your product is accessible to everybody.

The roadmap should integrate accessibility efforts into the design, development and quality assurance process, all the way through to product release and updates, where the cycle starts all over.

This means it’s vital to have everyone on your team informed and committed to accessibility. You could even go further and nominate one person from each team to lead the accessibility process and be responsible for each team’s compliance. It’s worth starting any new project with an accessibility audit so you understand exactly where your gaps are. And by syncing with sales and support teams, you can identify where users are experiencing friction.

This baking process helps you avoid legal problems in the future as a result of non-compliance. In 2019, a blind man successfully sued Domino’s after he was unable to order food on the Domino’s website and mobile app, despite using screen-reading software. Beyoncé’s company was sued by a blind woman that same year. Product owners are wide open to lawsuits if they don’t implement the Web Content Accessibility Guidelines.

To help you on your way, IBM’s Carbon Design System is an open-source design system for digital products that offers free guidelines to build an accessible product, including for people with physical or cognitive disabilities. In addition, software tools exist that can help you do accessibility checks ahead of time rather than when the product is finished.

2. You’re treating a11y like a set-it-and-forget-it

Design trends evolve fast in the tech world. Your team is probably staying on top of the latest software or mobile features, but are they paying attention to accessibility?

A11y needs maintenance; the requirements for the web and mobile platforms are changing all the time and it’s important (as well as necessary) to stay on top of those changes. If you’re not carrying out constant tweaks and upgrades, chances are that you’ve racked up a few accessibility issues over time.

Plan regular meetings where you review and discuss your products’ accessibility and a11y compliance. Look at what other products are doing to be more accessible and attend courses about inclusive design (e.g., TechCrunch Sessions). Platforms like the A11Y Project are also incredibly useful resources for teams to stay up to date, and they also offer books, tutorials, professional support and professional testers.

3. You and your team haven’t tried out a11y tools

The best accessibility tool you have is your team itself. Building a product with a diverse group of people will mean you encounter and rectify any barriers to use faster and can innovate with greater impact — after all, people with disabilities are some of the world’s greatest innovators.

Outside of your team makeup, ask yourself: Have you ever used a screen reader? Or tried to navigate your website using only your keyboard? Seen your designs simulated against various types of vision?

If the answer is no, chances are you’re letting key accessibility features slip through the cracks. By putting yourself in the shoes of someone with impairments, these tools force you toward a better appreciation of their needs.

Try and get your team using these tools as early as possible, especially if you’re struggling to convey to them the importance of a11y. Once you’ve broadened your perspective, it’ll genuinely be harder to not see how people with different abilities are experiencing your product. Which is why you should come back to your product afterward, as a user, and explore it through a new lens.

4. You aren’t talking to your users

Lastly, there’s little chance you’ve built a truly accessible product without actually talking to its users. The general population is the most diverse set of critics to warn you if your product’s falling short for people of different backgrounds and abilities. Every single user experiences a product uniquely, and regardless of all the effort you’ve put in until now, there will likely be issues.

Lend an ear to a wide range of users, throughout the product life cycle. You can do this by doing user testing with each update, asking users to complete surveys on their in-app experience, and holding focus groups that proactively enlist people with a spectrum of needs.

Accessible design is just good design. It’s a misconception that it only improves UX for people with disabilities — it provides a better experience for everyone. And all founders want their product to reach as many people as possible. Once you put in the initial effort and embrace it, it becomes easier, like another tool in your kit. You won’t get it 100% right on the first try. But this is about progress, not perfection.

15 Mar 2021

4 signs your product is not as accessible as you think

For too many companies, accessibility wasn’t baked into their products from the start, meaning they now find themselves trying to figure out how to inject it retrospectively. But bringing decades-long legacy code and design into the future isn’t easy (or cheap).

Businesses have to overcome the fear and uncertainty about how to do such retrofitting, address the lack of education to launch such projects, and balance the scope of these iterations while still maintaining other production work.

Among the U.S. adult population, 26% live with some form of disability, and businesses that are ignorant or slow to respond to accessibility needs are producing digital products for a smaller group of users. Someone who is a neophyte might not be able to use a product with overwhelming cognitive overhead. Someone using a product that isn’t localized may not be able to refill their prescription in a new country.

We recently saw this play out in the “cat lawyer” episode, which the kitten-faced attorney took in good humor. But it also reminded us that many people struggle with today’s basic tools, and for those who don’t, it’s hard to understand just how much this disrupts people’s personal and professional lives.

If you’re a founder with a software product out there, you probably won’t receive as loud an alarm bell as a viral cat filter video to tell you that something’s wrong. At least not immediately. Unfortunately, that time will come because social media has become the megaphone for support issues. You want to avoid that final, uncontrollable warning sign. Here are four other warning signs that make clear your product is not as accessible as you might think — and how you can address that.

1. You didn’t define a11y principles at the start of your journey

Accessibility is a key ingredient in your product cake — and it’ll always taste best when it’s added to the mix at the beginning. It’s also more time- and cost-effective, as fixing a usability issue after the product has been released can cost up to 100 times more than earlier on in the development process.

Your roadmap should work toward the four principles of accessibility, described using the acronym POUR.

  • Perceivable: Your users need to be able to perceive all of the information displayed on your user interface.
  • Operable: Your users must be able to operate and navigate your interface components.
  • Understandable: Your content and the functioning of your user interface must be clearly understandable to users.
  • Robust: Your content has to be robust enough that a wide variety of users can continue to access it as technologies advance, including assistive technologies.

Without following each of these principles consistently, you cannot guarantee that your product is accessible to everybody.

The roadmap should integrate accessibility efforts into the design, development and quality assurance process, all the way through to product release and updates, where the cycle starts all over.

This means it’s vital to have everyone on your team informed and committed to accessibility. You could even go further and nominate one person from each team to lead the accessibility process and be responsible for each team’s compliance. It’s worth starting any new project with an accessibility audit so you understand exactly where your gaps are. And by syncing with sales and support teams, you can identify where users are experiencing friction.

This baking process helps you avoid legal problems in the future as a result of non-compliance. In 2019, a blind man successfully sued Domino’s after he was unable to order food on the Domino’s website and mobile app, despite using screen-reading software. Beyoncé’s company was sued by a blind woman that same year. Product owners are wide open to lawsuits if they don’t implement the Web Content Accessibility Guidelines.

To help you on your way, IBM’s Carbon Design System is an open-source design system for digital products that offers free guidelines to build an accessible product, including for people with physical or cognitive disabilities. In addition, software tools exist that can help you do accessibility checks ahead of time rather than when the product is finished.

2. You’re treating a11y like a set-it-and-forget-it

Design trends evolve fast in the tech world. Your team is probably staying on top of the latest software or mobile features, but are they paying attention to accessibility?

A11y needs maintenance; the requirements for the web and mobile platforms are changing all the time and it’s important (as well as necessary) to stay on top of those changes. If you’re not carrying out constant tweaks and upgrades, chances are that you’ve racked up a few accessibility issues over time.

Plan regular meetings where you review and discuss your products’ accessibility and a11y compliance. Look at what other products are doing to be more accessible and attend courses about inclusive design (e.g., TechCrunch Sessions). Platforms like the A11Y Project are also incredibly useful resources for teams to stay up to date, and they also offer books, tutorials, professional support and professional testers.

3. You and your team haven’t tried out a11y tools

The best accessibility tool you have is your team itself. Building a product with a diverse group of people will mean you encounter and rectify any barriers to use faster and can innovate with greater impact — after all, people with disabilities are some of the world’s greatest innovators.

Outside of your team makeup, ask yourself: Have you ever used a screen reader? Or tried to navigate your website using only your keyboard? Seen your designs simulated against various types of vision?

If the answer is no, chances are you’re letting key accessibility features slip through the cracks. By putting yourself in the shoes of someone with impairments, these tools force you toward a better appreciation of their needs.

Try and get your team using these tools as early as possible, especially if you’re struggling to convey to them the importance of a11y. Once you’ve broadened your perspective, it’ll genuinely be harder to not see how people with different abilities are experiencing your product. Which is why you should come back to your product afterward, as a user, and explore it through a new lens.

4. You aren’t talking to your users

Lastly, there’s little chance you’ve built a truly accessible product without actually talking to its users. The general population is the most diverse set of critics to warn you if your product’s falling short for people of different backgrounds and abilities. Every single user experiences a product uniquely, and regardless of all the effort you’ve put in until now, there will likely be issues.

Lend an ear to a wide range of users, throughout the product life cycle. You can do this by doing user testing with each update, asking users to complete surveys on their in-app experience, and holding focus groups that proactively enlist people with a spectrum of needs.

Accessible design is just good design. It’s a misconception that it only improves UX for people with disabilities — it provides a better experience for everyone. And all founders want their product to reach as many people as possible. Once you put in the initial effort and embrace it, it becomes easier, like another tool in your kit. You won’t get it 100% right on the first try. But this is about progress, not perfection.

15 Mar 2021

U.S. e-commerce on track for its first $1 trillion year by 2022, due to lasting pandemic impacts

The COVID-19 pandemic boosted U.S. online shopping by $183 billion, accord to a new report by Adobe’s e-commerce division, released this morning. This figure represents the increase in online shopping during the months of March 2020, when the pandemic began in the U.S, through February 2021. During this time, U.S. consumers spent a total of $844 billion online. Meanwhile, $813 billion was spent during the calendar year 2020 alone, up 42% over 2019. To put this $183 billion in perspective, Adobe notes it’s nearly the size of the last holiday shopping season, when $188.2 billion was spent online during the months of November and December 2020. The firm expects this growth to continue in the years ahead, reaching $1 billion by 2022.

The pandemic has served as an accelerant to many industries, pushing them years ahead of where their natural growth would have otherwise taken them.

E-commerce benefitted from this trend as well, as consumers faced stay-at-home orders, non-essential retailers closed their doors, and in-person shopping was replaced with online commerce for many consumers. Adobe says the pandemic itself produced a “rare step change in online spending, equivalent to a 20% boost,” and noted the impacts will continue even as the pandemic comes to an end in the months to come.

The company’s analysts, for example, noted that the first two months of 2021 (Jan.-Feb 2021), have already seen consumer spending of $121 billion in the U.S, or a 34% year-over-year increase.

Also during this time, the buy-now-pay-later method for online shopping has jumped up by 215% year-over-year, with orders that are 18% larger — another factor in the growing sales driven by these changes.

Adobe predicts that current growth rates will continue, leading to 2021 calendar year sales of somewhere between $850 billion and $930 billion. It then expects 2022 to deliver the first trillion-dollar year for U.S. e-commerce.

Beyond the e-commerce sales increases, the pandemic may have also led to other long-lasting changes in terms of how people shop and what they’re buying.

Adobe said that both in-store and curbside pickup services had grown in adoption by 67% year-over-year, as of Feb. 2021. Consumers seem very receptive to this hybrid model of shopping, with a recent Adobe survey finding that 30% of U.S. consumers actually prefer pickup over standard delivery, for instance.

The shift to regular online shopping may have some later impacts on typical “sales holidays” that had, in the past, drawn larger increases in shopper activity. Memorial Day 2020 commerce grew 20% less than other days that week, and resulted in $32 million less revenue, Adobe noted. Labor Day and President’s Day saw similar trends. And notably, the five days between Thanksgiving and Cyber Monday 2020 also contributed 9% less to revenue share during the holiday season, equivalent to $600 million.

There were some indications that retailers haven’t quite adapted to the surge of new online shoppers, however. “Out of stock” messages were common, peaking in July 2020 which saw 3x the number of stockouts compared with a pre-pandemic period. And it Jan. 2021, out of stock messages were elevated at 4x pre-pandemic levels. This was common particularly among groceries, pet products and medical supplies, Adobe said.

Online grocery has also benefited from the change in consumer behavior, and doesn’t show any signs of slowing. In Feb. 2021, the category was up by 230% compared with Jan. 2020, pre-pandemic.

Unlike with consumer surveys, Adobe’s data is derived from trends seen directly in Adobe Analytics, which covers over 1 trillion visits to U.S. retail sites and over 100 million SKUs, giving it a more comprehensive, real-time look into the U.S. e-commerce industry and consumer spending.

15 Mar 2021

Cruise acquires self-driving startup Voyage

Voyage, the autonomous vehicle startup that spun out of Udacity, has been acquired by Cruise, a deal that points to the continued consolidation within the nascent industry.

Financial terms of the deal were not disclosed; the majority of Voyage’s 60-person team will move over to Cruise and the company’s co-founder and CEO Oliver Cameron will take on a new role as vice president of product.

Voyage, which was founded in 2017, was a tiny startup compared to well-funded operations like Cruise, Argo AI, Waymo and Aurora. But despite its size and only raising $52 million, Cameron helped Voyage stand out. The company is best known for its operations in two senior living communities. Voyage tested and gave rides to people within a 4,000-resident retirement community in San Jose, Calif., as well as The Villages, a 40-square-mile, 125,000-resident retirement city in Florida.

“Voyage’s approach has always been to leverage our limited resources to deliver a product that restores mobility to those who need it most: senior citizens. We’ve made tremendous progress towards this goal, moving countless senior citizens (some as old as 92!) around their communities,” Cameron wrote in a blog post announcing the deal. “Now at Cruise, we are thrilled to have the substantial resources to eventually serve not just senior citizens, but every possible demographic who stands to benefit from self-driving services.”

Voyage won’t be shutting down operations at the two senior communities immediately. However, Cruise reiterated to TechCrunch that its focus is commercial operations in San Francisco. Inevitably, any testing or operations at the senior communities will come to end, although Cruise did not provide a timeline.

Cameron’s role as VP of product is another signal that Cruise is inching forward with plans to launch a commercial robotaxi service in San Francisco. Cruise has hired hundreds of engineers, both hardware and software, but it will need to win over customers if it hopes to build a loyal base of robotaxi users. In his new role, Cameron will be the one who will be thinking through every customer touchpoint for Cruise’s self-driving service.

Cameron described the union of Cruise and Voyage as a “wonderful marriage,” in a tweet Monday morning. He noted that Cruise has the “most advanced self-driving technology, unique auto partners and the first purpose-built self-driving vehicle.” “With Voyage and our customer-service obsessed team, we’ll together deliver a game-changing self-driving product.”

Cruise has the funds to put towards this component of the business. Earlier this year, Cruise said it raised $2 billion in a new equity round that has pushed its valuation up to $30 billion and delivered Microsoft as an investor and partner. GM, Honda and other institutional investors also put more capital into Cruise as the autonomous vehicle company inches closer to commercializing its technology.