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Oyo layoffs, Airbnb’s delayed IPO and the long-term quandary of investing in travel startups

It’s the best and worst of times for travel startups.

Massive growth over the past few decades has made tourism one of the big global industries, covering everything from recreation to business conferences to shopping sprees.

But doubts about the future of the industry are growing — and not just because of the novel coronavirus and COVID-19. The rise of remote work and the increasing stresses from tourism on urban and environmental systems portends tougher times ahead.

Given the spate of bad news the past few weeks swirling around global tourism startups, I wanted to go over where we are and what the future holds — and why that’s going to be so challenging for startups in this space.

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Google Cloud announces four new regions as it expands its global footprint

Google Cloud today announced its plans to open four new data center regions. These regions will be in Delhi (India), Doha (Qatar), Melbourne (Australia) and Toronto (Canada) and bring Google Cloud’s total footprint to 26 regions. The company previously announced that it would open regions in Jakarta, Las Vegas, Salt Lake City, Seoul and Warsaw over the course of the next year. The announcement also comes only a few days after Google opened its Salt Lake City data center.

GCP already had a data center presence in India, Australia and Canada before this announcement, but with these newly announced regions, it now offers two geographically separate regions for in-country disaster recovery, for example.

Google notes that the region in Doha marks the company’s first strategic collaboration agreement to launch a region in the Middle East with the Qatar Free Zones Authority. One of the launch customers there is Bespin Global, a major managed services provider in Asia.

“We work with some of the largest Korean enterprises, helping to drive their digital transformation initiatives. One of the key requirements that we have is that we need to deliver the same quality of service to all of our customers around the globe,” said John Lee, CEO, Bespin Global. “Google Cloud’s continuous investments in expanding their own infrastructure to areas like the Middle East make it possible for us to meet our customers where they are.”

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Quibi closes on $750 million as its date with destiny approaches

With just over one month to go until its official launch date, the short-form, subscription streaming service Quibi has closed on $750 million in new financing, according to a report in the company’s private PR firm The Wall Street Journal.

The company declined to disclose exactly who invested in the new round (which is always a great sign) and didn’t comment on how the new investment would effect the company’s valuation.

Chief Executive Officer Meg Whitman told the Journal that the new financing was made to ensure that the company would have the financial flexibility and runway to build a long-term business, but it’s likely that companies as diverse as Brandless and WeWork said the same thing about their goals when raising capital, as well.

According to the story in the WSJ, the company’s new investment contains both existing investors, like the Alibaba Group and Hollywood Studios, along with WndrCo, the investment firm and holding company launched by Quibi’s co-founder and Hollywood mogul Jeffrey Katzenberg.

To date, Quibi has raised $1.75 billion.

While the company touts its original approach to storytelling, and its list of marquee talent developing series for the app, the emphasis on short-form has been tried before by other companies (notably TechCrunch’s own parent company)… and the results were less than promising.

The idea that people need to consume short-form stories instead of … maybe just hitting the pause button… is interesting as an experiment to see what kinds of narratives or reality show-style entertainment needs to live behind a paywall rather than on YouTube or TikTok.

Perhaps Quibi will win with its slate of reality and narrative shows (which, to be honest, look pretty fun). The big names that Katzenberg and co-founder Meg Whitman promised are certainly on offer in the roster that is helpfully synopsized in a recent Entertainment Weekly article about the company’s programming.

Quibi, unlike some of the streaming services that it’s going to compete with, doesn’t have a back catalog of titles to tap to pad out the service, so it’s coming to market with a whopping 175 shows in its first year with 8,500 episodes, which run no longer than 10 minutes.

When it launches, there will be 50 shows on offer from the service. A lot depends on the reception of those shows. While many of the titles seem compelling, there are only a couple that seem to have the appeal to break through to the audience that Quibi hopes it can reach, and that will be willing to shell out money for its subscriptions.

The service is also hoping to differentiate itself by dropping new episodes daily — rather than weekly releases common on network television or the season-long binges that Netflix encourages.

The app itself seems to be fairly undifferentiated from the services available from other streamers. As we wrote when the company launched pre-orders for its app in February:

Much has been made about Quibi’s potential to reimagine TV by taking advantage of mobile technology in new ways, but the app itself looks much like any other streaming service, save for its last app store screenshot showing off its TurnStyle technology.

The app appears to favor a dark theme common to streaming apps, like Netflix and Prime Video, with just four main navigation buttons at the bottom.

The first is a personalized For You page, where you’re presented a feed where you’ll discover new things Quibi thinks you’ll like.

A Search tab will point you toward trending shows and it will allow you to search by show titles, genre or even mood.

The Following tab helps you keep track of your favorite shows and a Downloads tab keeps track of those you’ve made available for offline viewing.

Otherwise, Quibi’s interface is fairly simple. Shows are displayed with big images that you flip through either vertically on your home feed or both horizontally and vertically as you move through the Browse section.

The company does promote its TurnStyle viewing technology in its app store description, though it doesn’t reference the technology by name. Instead, it describes it as a viewing experience that puts you in full control. “No matter how you hold your phone, everything is framed to fit your screen,” it says.

In vertical viewing mode, it also introduces controls that appear on either the left or right side the screen — you choose, based on whether you’re left or right-handed.

Quibi did not formally announce the app was open for pre-order.

The startup, founded by Jeffrey Katzenberg, is backed by more than a billion dollars — including a recently closed $400 million round.

Despite the doubt surrounding its success, Quibi managed to sell out of the initial $150 million in available advertising for the service’s first year.

Whether it’s as big of a hit with potential subscribers as with advertisers remains to be seen. The service could still become the Mike Bloomberg campaign of streaming media — a lot of money and no discernible result.

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Lunchr becomes Swile to expand beyond corporate lunch cards

Lunchr has rebranded to Swile in order to expand its product offering beyond meal vouchers. The company wants to focus on everything that happens at work but that isn’t technically work — money pots for a birthday, paying back your co-workers, creating team-building events and more.

At heart, Swile provides a payment card for your lunch. French companies of a certain size have to support employees in one way or another when it comes to their lunch break. Big companies usually build out a cafeteria, while small companies hand out meal vouchers.

Companies can sign up to Swile so their employees all get a payment card for their meal vouchers. The company tops up everyone’s card every month. Just like challenger banks, Swile wants to provide a better user experience. For instance, you can associate a debit card with your account so that your debit card is used if you pay for an expensive lunch above your daily limit.

Currently 200,000 employees across 7,500 companies use a Swile card to pay for lunch.

But paying for lunch is just one of the financial transaction types that you do at work. And Swile wants to capture a bigger chunk of that market.

It starts with two simple features. First, you can pay back your co-workers when they lend you some money. It isn’t limited to lunch money; you can basically associate a debit card with your account, send money and hold money.

Old habits die hard, so it’s going to be hard to convince people to switch from Lydia to Swile. People already use Lydia to send money to their friends, and the company has managed to attract millions of users in France.

Second, many companies need to collect money from the team. It could be for a gift when somebody is leaving the company, it could be in order to buy beers or grab a drink after work on a Friday evening.

Employees can create money pots and invite the team. Given that everybody in your company has already created a Swile account, you don’t need to manually add your co-workers to the app — you just have to find their name in the directory. Swile doesn’t charge any fee on those money pots when you transfer the money to a Swile account or a bank account.

In addition to payment, Swile wants to help you connect more easily with your team. You can create and join events in the app. It could be useful for a birthday party at work, a soccer match, etc.

In the future, Swile also wants to add the ability to message your friends directly in the app — at some point, all apps become messaging apps. Also coming soon, Swile will help you bookmark places and share with your co-workers a map of your favorite places around the office.

Starting in June, even if your company doesn’t use Swile’s meal vouchers, you’ll be able to create an account for your team in order to use events, money pots, etc. Basic features will be free and Swile will introduce a premium tier later this year.

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Lerer Hippeau’s Ben Lerer shares his priorities for scouring seed deals

Enterprise software startups are changing how they infiltrate companies, and investors are taking note.

Last week, I chatted with Lerer Hippeau‘s Ben Lerer after his firm had just led a seed round in Air, a digital asset management platform. I used the opportunity to pick his brain about what he’s searching for in early-stage investments and which trends he believes are shaking up enterprise software.

Below is a chunk of our conversation, which has been edited for length and clarity.


TechCrunch: What kinds of things are you looking at recently? Anything notable?

Ben Lerer: The market is always shifting, but 40,000 feet up, nothing has changed in that we’re always just focused on investing in people. But, beyond people, there’s certainly been various areas of opportunity that over the years we have had different kinds of focus on. One that I’ve been most focused on traditionally has been a category that would’ve been called direct-to-consumer brands. Now you would probably just call it “future of consumer” or “future of retail.” Now, I think direct-to-consumer is not the entire pie but just a piece of the pie. So generally my focus is doing consumer deals and then sometimes I focus on deals that are not necessarily consumer, but they’re SaaS businesses, often SaaS businesses that my consumer companies are current or potential customers of.

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This bathroom cleaning robot is trained in VR to clean up after you

You’ve no doubt heard about the three Ds of automation. Somatic’s robot handily qualifies for two. I’d say “dangerous” is probably a bit of a stretch here, but the robot is well-focused on replacing a job that’s generally regarded as both “dirty” and “dull.”

The startup, which is ostensibly based in the New York area (it’s a small, geographically dispersed team in search of a more permanent home) effectively came out of stealth onstage at TC Sessions: Robotics + AI at UC Berkeley. Its first product is a large, commercial restroom cleaning robot.

CEO Michael Levy compares the device to a “minifridge with a robot arm attached to the front.” Levy, who co-founded the company with CTO Eugene Zasoba, says he was inspired to develop a robot for bathroom cleaning after years spent working his way up at his grandfather’s restaurant.

“When I grew up, I did a bunch of jobs. He said, if you want to get to the register, you have start in the bathroom,” he explains. “The reason bathrooms are such a good application, because everything is bolted down to the floor. Things move in a predictable way. All commercial bathrooms built after 1994 are ADA compliant. What’s good for robotics is that lays a specific design.”

The static nature of most commercial restrooms means that robots only have to train on a space once. The team does the work remotely now, using a VR simulation of the bathroom to show the robot where to spray and wipe chemicals, vacuum and blow-dry. It’s an activity the team affectionately refers to as “the worst video game, ever.” Once all of that is in place, the robot uses a variety of sensors, including lidar, to navigate around.

The robot will clean a restroom, then go to recharge and refill chemicals as needed. It should get around eight hours of cleaning done in a day and can even open doors and ride the elevator to get around buildings, according to Levy.

Prime targets include airports, casinos, office spaces and other spots with large commercial restrooms. The robot will be leased out for around $1,000 a month, after a trial phase. Somatic already has a handful of customers, including a FAANG company, whose offices are already being cleaned by the robot.

The first model was created with help from $50,000 in bootstrapped funds, to which Somatic has added $300,000, including $150,000 from SOSV.

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Tilting Point acquires mobile game Star Trek Timelines

Tilting Point announced this morning that it has acquired Star Trek Timelines, a free-to-play character collection game, from the game’s developer Disruptor Beam. It has also hired Disruptor Beam team members to create a new studio, Wicked Realm Games.

This follows Disruptor Beam‘s shuttering of its other titles, Game of Thrones Ascent and The Walking Dead: March to War. Moving forward, the company says it will be focused on its Disruptor Engine tools for mobile game development and operations.

Tilting Point, meanwhile, had previously acquired the game Languinis and the monetization startup Gondola, but President Samir El Agili told me that this is the first time the company has acquired both a game and the development team behind it. CEO Kevin Segalla described this as an extension of Tilting Point’s “progressive publishing” model, where the company first works with developers on user acquisition, then develops a deeper business relationship over time.

In fact, Timelines — which Tilting Point says has been downloaded 8 million times and earned over $100 million — was one of the first games supported by the company’s user acquisition fund. And through those efforts, the Tilting Point team came to believe that there’s still plenty of opportunity for growth.

“We spent a good amount of time over the past year-and-a-half to two years helping the team scale the game to success, helping them bring a user to the game using our ability to do user acquisition, as well as improving the game itself in terms of our operations,” El Agili said. “What we have seen over this time is that Star Trek Timelines is a very impressive game, its users are very sticky.”

He noted that Tilting Point is increasing the size of the team working on Timelines from nine at Disruptor Beam to 19 at Wicked Realm Games, which will be led by Disruptor Beam’s former CTO David Cham.

The studio, El Agili said, will be “100% integrated from a financial standpoint, but they’re still going to be very independent in the way they operate.” And while Wicked Realm will be focused on Timelines for the near future, there are “more ideas that we can build with them.”

Segalla also said that as a result of the deal, Tilting Point is essentially becoming the first Disruptor Engine customer.

“Tilting Point has been a great partner to us and have proven that they care about the game and its community and there’s no one better to take Star Trek Timelines to the next level,” said Disruptor Beam CEO Jon Radoff in a statement. “We are also excited that Tilting Point will be one of our first live customers for our live-ops technology and that we will be continuing our working relationship.”

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Robinhood’s downtime as a stress test for the consumer fintech boom

Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

Earlier this week, the popular free stock trading service Robinhood suffered downtime over a two-day period. The company, a well-funded unicorn taking on incumbents in its industry, failed to operate properly when the public markets were surging on Monday (bad) and falling on Tuesday (very bad).

Complaints flooded investing forums and social media. Images of Robinhood account screens featuring huge losses from the periods of downtime (or missed upside) weren’t hard to find. For Robinhood, it wasn’t its first misstep, but it was perhaps its worst. Mishandling the rollout of a high-yield savings function? Embarrassing, but hardly a serious wound. Some options oddness? Eh, not the worst.

Going down during surging volatility? Much worse. The company is already in the market with apologies and some give-aways to try to stem the negative news cycle. But what’s notable so far is that, while you might expect to see rival apps and services to Robinhood boom in the wake of its downtime, it instead appears that only select competitors to the popular company are seeing a jump in downloads this week. And given the insane market movements, it’s hard to pin some of their gains on Robinhood instead of, say, what stocks are themselves doing.

I’d expected by today to have some data in hand that painted a starker picture for Robinhood, given that the company’s recent missteps triggered a lot of negative press and user reaction. Let’s peek at what numbers can tell us, and try to figure out if there’s a lesson for consumer fintech and finservies companies while we’re at it.

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Zendesk’s latest tools designed to give fuller view of the customer

Like many technology companies, Zendesk made the tough decision to cancel its Zendesk Relate customer conference this week in Miami amid COVID-19 health concerns. That doesn’t mean the announcements didn’t happen though, even if the conference didn’t, and today the company announced a major update to its Sunshine development platform.

You may recall that the company, which is widely known for its help desk software, made the move to CRM when it acquired Base in September 2018. A little later that year, it announced the Sunshine platform, which customers could use to build applications on top of the Zendesk platform.

It has been working to integrate the CRM tool more broadly into the platform, and today’s announcement is about giving Zendesk users a broader view of its customers. Zendesk has a great amount of data at its disposal about the customer’s likes and dislikes based on interactions with the help desk side of the house, and Zendesk CEO Mikkel Svane sees the two sides being interconnected. At the same time, he’s embracing the idea of this all taking place in the public cloud on AWS.

“Our vision is really to have all the components, all the infrastructure, all the business logic that you need to build a customer experience, and customer relationship management applications, all on the Sunshine platform, all living natively on AWS,” Svane told TechCrunch.

All of this is in service of giving customers a better experience based on what you know about them. He said that the goal today is to retain and satisfy the customer, and the platform is designed to give them the data they need to help do that.

“In the old days, you went out and you bought a product, and that was kind of the end of the transaction. Today, through the convenience economy, through the subscription economy, it’s more about your long-term engagement with a vendor,” he explained.

He sees the platform helping pull all of this data together, while recognizing and acknowledging the challenges involved here. In fact, he is reluctant to call it a complete picture, calling that a false narrative other vendors are putting out.

“We do want to help our customers extract all the relevant information and to try and create a picture that is helpful across all these different channels, but we also know that the reality of it is that you have so many disparate systems right now,” he said.

He sees his platform with the engagement data on one side and the customer record on the other as a good starting point for this. “I think there’s a lot you can do to collect a lot of information and have an abstraction layer, and that’s what we try to do with Sunshine. We want to have an abstraction layer where you start working and seeing all of this data to get insights into your customer. And I think that’s much better start.”

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Bookshlf launches an app to curate and share your favorite digital content

Bookshlf has created a new way for people to recommend media — whether it’s music, videos, articles, podcasts or even tweets — to their friends and to the rest of the world.

The New York-based startup is officially launching its web and iOS app this week and announcing that David A. Steinberg, co-founder and CEO of marketing company Zeta Global, has signed on as both an investor and advisor.

The big emphasis here is curation. It’s a word that comes up a lot in the media industry, but President Andrew Boggs — who previously worked in business development at Zeta, then founded Bookshlf with Mike Abend and Justin Cadelago — argued that the major internet platforms aren’t actually designed for real curation.

“A lot of the legacy platforms have focused on quantity over quality,” Boggs said. “There’s also the nature of things being really fleeting there … For example, if you are sharing stuff about music, I have to sift through your feed to find that information.”

Bookshlf

It sounds like this idea resonated with Steinberg, who argued, “The big social media platforms do not make a living by building small groups of very interesting people. They think, ‘How do we get as much volume as possible?’”

In Bookshlf, on the other hand, users can organize their recommendations into different “shelves” based on topic, and then easily add links using the iOS Share menu (or by just adding them directly in the app). You can also share links to your shelves via social media.

Boggs, for example, has shelves tied to topics like electronic music, humor, tech/media news and even the best burgers in New York. Steinberg, meanwhile, said, “I don’t believe people primarily go to Facebook or Instagram to consume business information,” so it’s not surprising his shelves are focused on artificial intelligence, DARPA and Zeta itself.

The paradigm of a shelf of content might seem a little quaint — Boggs compared it to the shelves of DVDs or albums that you might have shown off in the past. But in his view, the model makes sense for these kinds of recommendations, because it allows people to focus on what they’re actually interested in: “Because the shelves are a curated selection, you can jump to your profile, and if you have a music shelf, I can jump right into that.”

While it remains to be seen how people will actually use Bookshlf, Boggs said there’s a likely to be a minority of core users who are doing the most active curation and sharing. These are the kinds of people who are probably already doing a lot of sharing — whether that’s on social media or just over a group chat — and “love to send you interesting articles and interesting podcasts.” At the same time, other users will simply browse the app for interesting recommendations, and they can also use the shelves to save links for themselves.

It sounds like the Bookshlf team isn’t focused on monetization yet, but Boggs suggested that there are a number of interesting opportunities, including targeted advertising, sponsored shelves, micropayments for content and selling data about broader trends in the audience interest.

In addition to Steinberg, Bookshlf has raised an undisclosed amount of funding from CAIVIS Acquisition Corp, Dalton Partners and Cambridge Way Ventures.

 

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