Facebook will shut down its spyware VPN app Onavo
Facebook will end its unpaid market research programs and proactively take its Onavo VPN app off the Google Play store in the wake of backlash following TechCrunch’s investigation about Onavo code being used in a Facebook Research app the sucked up data about teens. The Onavo Protect app will eventually shut down, and will immediately cease pulling in data from users for market research, though it will continue operating as a Virtual Private Network in the short-term to allow users to find a replacement.
Facebook has also ceased to recruit new users for the Facebook Research app that still runs on Android but was forced off of iOS by Apple after we reported that it violated Apple’s Enterprise Certificate program for employee-only apps. Existing Facebook Research app studies will continue to run, though.
With the suspicions about tech giants and looming regulation leading to more intense scrutiny of privacy practices, Facebook has decided that giving users a utility like a VPN in exchange for quietly examining their app usage and mobile browsing data isn’t a wise strategy. Instead, it will focus on paid programs where users explicitly understand what privacy they’re giving up for direct financial compensation.
Onavo billed itself as a way to “limit apps from using background data” and “use a secure VPN network for your personal info” but also noted it would collect the “Time you spend using apps, mobile and Wi-Fi data you use per app, the websites you visit, and your country, device and network type.” A Facebook spokesperson confirmed the change and provided this statement: “Market research helps companies build better products for people. We are shifting our focus to reward-based market research which means we’re going to end the Onavo program.”
Facebook acquired Onavo in 2013 for a reported $200 million to use its VPN app to gather data about what people were doing on their phones. That data revealed WhatsApp was sending over twice as many messages per day as Messenger, BuzzFeed’s Ryan Mac and Charlie Warzel reported, convincing Facebook to pay a steep sum of $19 billion to buy WhatsApp. Facebook went on to frame Onavo as a way for users to reduce their data usage, block dangerous websites, keep their traffic safe from snooping — while Facebook itself was analyzing that traffic. The insights helped it discover new trends in mobile usage, keep an eye on competitors and figure out what features or apps to copy. Cloning became core to Facebook’s product strategy over the past years, with Instagram’s version of Snapchat Stories growing larger than the original.
But last year, privacy concerns led Apple to push Facebook to remove the Onavo VPN app from the App Store, though it continued running on Google Play. But Facebook quietly repurposed Onavo code for use in its Facebook Research app that TechCrunch found was paying users in the U.S. and India ages 13 to 35 up to $20 in gift cards per month to give it VPN and root network access to spy on all their mobile data.
Facebook ran the program in secret, obscured by intermediary beta testing services like Betabound and Applause. It only informed users it recruited with ads on Instagram, Snapchat and elsewhere that they were joining a Facebook Research program after they’d begun signup and signed non-disclosure agreements. A Facebook spokesperson claimed in a statement that “there was nothing ‘secret’ about this”, yet it had threatened legal action if users publicly discussed the Research program.
But the biggest problem for Facebook ended up being that its Research app abused Apple’s Enterprise Certificate program meant for employee-only apps to distribute the app outside the company. That led Apple to ban the Research app from iOS and invalidate Facebook’s certificate. This shut down Facebook’s internal iOS collaboration tools, pre-launch test versions of its popular apps and even its lunch menu and shuttle schedule to break for 30 hours, causing chaos at the company’s offices.
To preempt any more scandals around Onavo and the Facebook Research app and avoid Google stepping in to forcibly block the apps, Facebook is now taking Onavo off the Play Store and stopping recruitment of Research testers. That’s a surprising voluntary move that perhaps shows Facebook is finally getting in tune with the public perception of its shady actions. The company has repeatedly misread how users would react to its product launches and privacy invasions, leading to near constant gaffes and an unending news cycle chronicling its blunders.
Without Onavo, Facebook loses a powerful method of market research, and its future initiatives here will come at a higher price. Facebook has run tons of focus groups, surveys and other user feedback programs over the past decade to learn where it could improve or what innovations it could co-opt. And with more apps recently turning on encryption, Onavo likely started learning less about their usage. But given how cloning plus acquisitions like WhatsApp and Instagram have been vital to Facebook’s success, it’s likely worth paying out more gift cards and more tightly monitoring its research practices. Otherwise Facebook could miss the next big thing that might disrupt it.
Hopefully Facebook will be less clandestine with its future market research programs. It should be upfront about its involvement, make certain that users understand what data they’re giving up, stop researching teens or at the very least verify the consent of their parents and avoid slurping up sensitive information or data about a user’s unwitting friends. For a company that depends on people to trust it with their content, it has a long way to go win back our confidence.
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Apple confirms its plans to close retail stores in the patent troll-favored Eastern District of Texas
Apple has confirmed its plans to close retail stores in the Eastern District of Texas — a move that will allow the company to better protect itself from patent infringement lawsuits, according to Apple news sites 9to5Mac and MacRumors, which broke the news of the stores’ closures. Apple says that the impacted retail employees will be offered new jobs with the company as a result of these changes.
The company will shut down its Apple Willow Bend store in Plano, Texas as well as its Apple Stonebriar store in Frisco, Texas, MacRumors reported, and Apple confirmed. These stores will permanently close up shop on Friday, April 12. Customers in the region will instead be served by a new Apple store located at the Galleria Dallas Shopping Mall, which is expected to open April 13.
Apple did not comment on the stores’ dates of closure or the new store’s opening.
However, it’s common for Apple to leave little downtown during retail stores transitions — though most closures are related to renovations or other reasons that aren’t about trying to escape patent lawsuits.
The Eastern District of Texas had become a popular place for patent trolls to file their lawsuits, though a more recent Supreme Court ruling has attempted to crack down on the practice. The court ruled that patent holders could no longer choose where to file.
Apple has had to make big payouts to patent trolls in recent years: $625.6 million to patent holding firm VirnetX in 2016 over protocol patents; VirnetX won $368 million from Apple in 2013; and more recently $502.6 million over four communication patents.
VirnetX tends to be referred to as a “patent troll” because it makes most of its revenue by suing tech companies. In addition to Apple, it sued Microsoft over patents in Skype and has been in litigation with Cisco. Its cases and subsequent wins are often held up as another example of how patent law in the U.S. is in need of reform.
The Apple store closures could have had a notable impact on area jobs, had Apple not offered new positions to its retail staff.
Apple today employs 1,000 people in the Dallas-Fort Worth area, which has been an increase of 33 percent in the past five years.
The company also recently invested almost $30 million in its Dallas area stores.
Outside the Dallas metro area, Apple is also investing in Texas with its $1 billion for the new campus in Austin, which will accommodate an additional 5,000 employees on top of the 6,200 already in the area.
A rep for Apple confirmed the stores’ closures in a statement, but wouldn’t comment on the company’s reasoning:
We’re making a major investment in our stores in Texas, including significant upgrades to NorthPark Center, Southlake and Knox Street. With a new Dallas store coming to the Dallas Galleria this April, we’ve made the decision to consolidate stores and close Apple Stonebriar and Apple Willow Bend. All employees from those stores will be offered positions at the new Dallas store or other Apple locations.
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Report: Zoom, the video conferencing company, may be a public company as early as April
The video conferencing company Zoom is aiming to file a public S-1 by the end of March, according to a new report in Business Insider that adds the company could go public as soon as April.
Business Insider reported last month that Zoom had filed confidentially with the SEC to go public, just months after Reuters reported that the San Jose, Calif.-based company had chosen investment bank Morgan Stanley to lead its eventual IPO.
We’ve reached out to the company for comment.
Zoom was valued at $1 billion when it raised its last funding in 2017 in the form of a $100 million check from Sequoia Capital. Reuters sources have said they expect the company to be valued at several billion dollars at the IPO.
The company, founded in 2011, has raised $145 million altogether, including from Emergence Capital and Horizons Ventures. Its earliest backers include Qualcomm Ventures, Yahoo founder Jerry Yang, WebEx founder Subrah Iyar and former Cisco SVP Dan Scheinman, who has been an active angel investor for years.
We had a chance to sit down with CEO Eric Yuan last year at a small industry event hosted by the venture firm NextWorld Capital. He talked about coming to the United States as a student from China and applying for a U.S. visa nine times over the course of two years before finally receiving it and arriving in Silicon Valley in 1997. We also talked about his experience as the 10th employee of WebEx, and his frustration that the company’s code remained stubbornly unchanged after it was sold for $3.2 billion to Cisco in 2007.
He wasn’t alone, clearly. When Yuan struck out on his own to found Zoom, fully 45 employees from WebEx joined him, a decision for which they’re likely thankful now. Financial rewards aside, Yuan was ranked at the top of Glassdoor’s annual list of best-rated CEOs last year.
We’ll be able to take a deeper dive into the health of Zoom once its reported S-1 is made public. In the meantime, you can check out our chat here.
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Fortnite goes big on esports for 2019 with $100 million prize pool
Epic Games, maker of the ultra popular Battle Royale game Fortnite, is putting up another $100 million in prize cash for competitive tournaments in 2019.
The company made waves in the esports world last year, announcing a $100 million prize pool for the 2018 competitive year, dwarfing every other competitive title in one fell swoop.
This year, a significant portion of the $100 million will be awarded to participants of the first-ever Fortnite World Cup. Each of the 200 players who qualify and compete will walk away with at least $50,000, with the winner taking home $3 million.
The Fortnite World Cup will take place July 26 – 28 in New York City, offering $30 million total in prizes. One hundred of the top solo players will be invited, along with the top 50 duos teams.
So how do you get in on this?
Fortnite is holding weekly open online qualifiers, each worth $1 million, from April 13 to June 16. Eligible players who consistently place well will have a shot at being one of those top 200 players.
This announcement comes at an interesting time for Fortnite. While the game still reigns supreme in terms of popularity, other Battle Royale games are picking up traction. Apex Legends (an EA and Respawn title), in particular, is growing in popularity. Several of the top Twitch streamers, including Ninja, Shroud, Timthetatman, High Distortion and Annemunition have started playing more Apex and participated in the first Apex Legends Twitch Rivals tournament.
Keeping the attention of these streamers is surely a priority for Fortnite, and for a game that pulls in some $300 million a month in in-game purchases, spending $100 million a year is a small price to pay.
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Pinstagram? Instagram code reveals Public Collections feature
Instagram is threatening to attack Pinterest just as it files to go public the same way the Facebook-owned app did to Snapchat. Code buried in Instagram for Android shows the company has prototyped an option to create public “Collections” to which multiple users can contribute. Instagram launched private Collections two years ago to let you Save and organize your favorite feed posts. But by allowing users to make Collections public, Instagram would become a direct competitor to Pinterest.
Instagram public Collections could spark a new medium of content curation. People could use the feature to bundle together their favorite memes, travel destinations, fashion items or art. That could cut down on unconsented content stealing that’s caused backlash against meme “curators” like F*ckJerry by giving an alternative to screenshotting and reposting other people’s stuff. Instead of just representing yourself with your own content, you could express your identity through the things you love — even if you didn’t photograph them yourself. And if that sounds familiar, you’ll understand why this could be problematic for Pinterest’s upcoming $12 billion IPO.
The “Make Collection Public” option was discovered by frequent TechCrunch tipster and reverse engineering specialist Jane Manchun Wong. It’s not available to the public, but from the Instagram for Android code, she was able to generate a screenshot of the prototype. It shows the ability to toggle on public visibility for a Collection, and tag contributors who can also add to the Collection. Previously, Collections was always a private, solo feature for organizing your bookmarks gathered through the Instagram Save feature Instagram launched in late 2016.
Instagram told TechCrunch “we’re not testing this,” which is its standard response to press inquiries about products that aren’t available to public users, but that are in internal development. It could be a while until Instagram does start experimenting publicly with the feature and longer before a launch, and the company could always scrap the option. But it’s a sensible way to give users more to do and share on Instagram, and the prototype gives insight into the app’s strategy. Facebook launched its own Pinterest -style shareable Sets in 2017 and launched sharable Collections in December.
Currently there’s nothing in the Instagram code about users being able to follow each other’s Collections, but that would seem like a logical and powerful next step. Instagrammers can already follow hashtags to see new posts with them routed to their feed. Offering a similar way to follow Collections could turn people into star curators rather than star creators without the need to rip off anyone’s content. Speaking of infuencers, Wong also spotted Instagram prototyping IGTV picture-in-picture, so you could keep watching a long-form video after closing the app and navigating the rest of your phone.
Instagram lets users Save posts, which can then be organized into Collections
Public Collections could fuel Instagram’s commerce strategy that Mark Zuckerberg recently said would be a big part of the road map. Instagram already has a personalized Shopping feed in Explore, and The Verge’s Casey Newton reported last year that Instagram was working on a dedicated shopping app. It’s easy to imagine fashionistas, magazines and brands sharing Collections of their favorite buyable items.
It’s worth remembering that Instagram launched its copycat of Snapchat Stories just six months before Snap went public. As we predicted, that reduced Snapchat’s growth rate by 88 percent. Two years later, Snapchat isn’t growing at all, and its share price is at just a third of its peak. With more than 1 billion monthly and 500 million daily users, Instagram is four times the size of Pinterest. Instagram loyalists might find it’s easier to use the “good enough” public Collections feature where they already have a social graph than try to build a following from scratch on Pinterest.
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Opera Touch brings website cookie blocking to iOS
Last fall, Opera introduced Opera Touch for iOS — a solid alternative to Safari on iPhone, optimized for one-handed use. Today, the company is rolling out a notable new feature to this app: cookie blocking. Yes, it can now block those annoying dialogs that ask you to accept the website’s cookies. These are particularly problematic on mobile, where they often entirely interrupt your ability to view the content, as opposed to on many desktop websites where you can (kind of) ignore the pop-up banner that appears at the bottom or the top of the page.
Cookie dialogs have become prevalent across the web as a result of Europe’s GDPR, but many people find them overly intrusive. Today, it takes an extra click to dismiss these prompts, which slows down web browsing — especially for those times you’re on the hunt for a particular piece of information and are visiting several websites in rapid succession.
The cookie blocking feature was first launched in November on Opera’s flagship app for Android, but hadn’t yet made its way to iOS — through any browser app, that is, not just one from Opera. The company says it uses a mix of CSS and JavaScript heuristics in order to block the prompts.
At the time of the launch, Opera noted it had tested the feature with some 15,000 sites.
It’s important to note that the default setting for the cookie blocker on Opera Touch will allow the websites to set cookies.
Here’s how it works. When you enable the feature, it will hide the dialog boxes from appearing, allowing you to read a website without having to first close the prompt. However, when you turn on the Cookie Blocker option, another setting is also switched on: one that says “automatically accept cookie dialogs.”
That means, in practice, when you’re enabling the Cookie Blocker, you’re also enabling cookie acceptance if you don’t take further action.
But Opera says you can disable this checkbox, if you don’t want your browser to give websites your acceptance.
In addition to the new cookie blocking, the browser has a number of other options that make it an interesting alternative to Safari on iOS or Google Chrome.
For example, if offers built-in ad blocking, cryptocurrency mining protection (which prevents malicious sites from using your device’s resources to mine for cryptocurrencies), a way to send web content to your PC through Opera’s “Flow” technology and — most importantly — a design focused on using the app with just one hand.
Since the app’s launch in April, the company has rolled out 23 new features in total. This includes a new dark theme, as well as the addition of a private mode, plus search engine choice, which offers 11 options, including Qwant and DuckDuckGo, and other features.
The app is a free download on iOS.
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Podcasting startup WaitWhat raises $4.3M as interest in audio content explodes
WaitWhat, the digital content production engine behind LinkedIn co-founder Reid Hoffman’s Masters of Scale podcast, has secured a $4.3 million Series A investment led by Cue Ball Capital and Burda Principal Investments.
Launched in January 2017, WaitWhat will use the cash to create additional media properties across a variety of mediums, including podcasts.
Investors are gravitating toward podcast startups as consumer interest in original audio content skyrockets. Podcasting, though an infantile industry that hit just $314 million in revenue in 2017, is maturing, raking in venture capital rounds large and small and recording its first notable M&A transaction with Spotify’s acquisition of Gimlet and Anchor earlier this month. The music streaming giant shelled out a total of $340 million for the podcast production platform and the provider of a suite of podcast creation, distribution and monetization tools, respectively. It plans to spend an additional $500 million on audio storytelling platforms as part of a larger plan to become the Netflix of audio.
WaitWhat, for its part, dubs itself the “media invention company.” Founded by June Cohen and Deron Triff, a pair of former TED executives responsible for expanding the nonprofit’s digital media business, WaitWhat is today launching Should This Exist, a new podcast hosted by Flickr founder and tech investor Caterina Fake. Fake will interview entrepreneurs about the human side and the impact of technology in the show created in partnership with Quartz.
“People don’t just transact with content; they want to feel connected to it through a sense of wonder, awe, curiosity, and mastery,” Cohen said in a statement. “These are contagious emotions, and research shows they stimulate sharing. Where many media companies aim for volume — putting out lots of content with a short shelf life — we’re building a completely distinctive portfolio of premium properties that are continually increasing in value, inspiring deep audience engagement, and creating opportunities for format expansion.”
Other investors in the round include Reid Hoffman, MIT Media Lab director Joi Ito and Liminal Ventures. WaitWhat previously raised a $1.5 million round from Victress Capital, Human Ventures and Able Partners, all of which have joined the A round.
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Sunsama’s $10/month task management calendar cleans up your online productivity
I can’t tell you the number of times I’ve heard friends lament how difficult it is to find a decent calendar app. The stock calendar apps are certainly serviceable, but there’s so much that they can’t handle in terms of managing and prioritizing tasks.
Sunsama, launching out of Y Combinator’s latest batch, is taking a crack at solving the calendar conundrum with a $10-per-month professionals-focused productivity planner.
Co-founders Ashutosh Priyadarshy and Travis Meyer began with the idea that the relationship between task managers and calendars were a mess. Devotees to “get things done” to-do apps end up re-typing tasks they’ve been assigned on project-based systems like Trello and Asana, which just leads to a whole lot of confusion. Sunsama’s third-party integrations make it easy to drag these tasks into your to-do list every morning and keep things updated as your tasks evolve and priorities need to shift.
“[Sunsama is] more than just a bunch of integrations,” Meyer told TechCrunch. “It’s a methodology for planning your day and streamlining your daily workflow, on your own, or with the teammates you work closely with.”
The company takes some pretty clear design inspiration from existing enterprise apps. The influences from Google Calendar, Slack and Trello are pretty clear, but the resulting interface all works together very thoughtfully with a drag-and-drop organizational flow that lets you import projects from linked services. It all makes for a very friendly, pretty system that can enable you to fly through the often cumbersome work of populating your to-do list in the first place. The company currently supports integrations with Asana, Trello, Slack, GitHub, GitLab, Jira and Todoist.
While a lot of other task management apps rely on a freemium model or low annual subscription, Sunsama takes $10-per-month for their service. It’s definitely an expense, but the founders see apps like $30-per-month email service Superhuman as a sign that professionals are willing to drop some cash on a service that cleans up their digital life.
The company wants to snag individual users, but getting small teams onto the service could be their clearest route to wider adoption. When your entire team is on Sunsama, you’re able to check out what other members of your channels have on deck when they’re working on a particular project. There’s the risk of getting lost in the fray of other necessary platforms on the company level, but the founders think the deep integrations will keep people turning to Sunsama when they want to see how a project is going.
The startup seems to have taken more than a few on-boarding cues from Superhuman, which takes you off the waitlist only after they’ve gotten a chance to personally talk you through their service and see whether you’re a good fit. You can sign-up to request Sunsama access on their site now.
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Pokémon GO will soon let you change teams for about $8
Early on in Pokémon GO, you’re asked to make a decision: Which team do you want to be on? Instinct (Yellow)? Valor (Red)? Mystic (Blue)?
The question comes a bit out of the blue. Especially amongst those who started early and have stuck with the game, it’s not uncommon to hear people grumble about how they wish they’d chosen differently. But once you choose, it’s final; changing teams means making a whole new account and starting the grind from Level 1. Well, until now.
Pokémon GO will soon let you change your team by way of an in-game “Team Medallion” item. Realizing that there are too many Mystic in your area and want to mix it up a bit? You can switch to Valor. Are most of your friends Instinct and you want to help them hold gyms? You can.
But there are catches: It’ll cost money, and you can only do it once a year. It’ll cost you 1,000 Pokécoins — that’s the in-game currency, (slowly) obtainable by holding in-game locations or in exchange for real money via in-app purchase. A pack of 1,200 coins currently goes for $10, so 1,000 coins works out to a little over $8.
As for why there’s a once-per-year cap? It helps make sure people have some degree of loyalty to their chosen teams… but it also helps maintain the game’s mechanics. There are some advantages to playing alongside members of your team — stat boosts in the big group boss battles (or “Raids”), a few extra Pokéballs when your team does the most damage in said raids, etc. — and letting people change too much might screw that up a bit.
This is the latest in a streak of recent additions meant to fulfill longstanding requests from the playerbase, and perhaps respark the interest of some players who moved on. They added trading (a staple of the main series) in June of last year, and player-vs-player battles (another staple) in December. App Annie says the game is currently the 67th most popular title in the iOS app store.
Niantic says the team medallion should roll out on February 26th.
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As shared kitchens heat up, a China-based startup, Panda Selected, nabs $50 million led by Tiger Global
A few weeks ago, we told you that former Uber CEO Travis Kalanick looks to be partnering with the former COO of the bike-sharing startup Ofo, Yanqi Zhang, to bring his new L.A.-based company, CloudKitchens, to China. Kalanick didn’t respond to our request for more information, but according to the South China Morning Post (SCMP), his plan is to provide local food businesses with real estate, facilities management, technology and marketing services.
He might want to move quickly. Kitchens that invite restaurants to share their space to focus on take-out orders is a concept that’s picking up momentum fast in China. And one company looks to have just assumed pole position in that race: Panda Selected, a Beijing-based shared-kitchen company that just raised $50 million in Series C funding led by Tiger Global Management, with participation from earlier backers DCM and Glenridge Capital. The round brings its total funding to $80 million.
Little wonder there’s a contest afoot. China’s food-delivery market is already worth $37 billion dollars, according to the SCMP, which says 256 million people in China used online food ordering services in 2016, and the number is expected to grow to 346 million this year.
And that’s still a little less than a quarter of the country’s population of 1.4 billion people.
Panda Selected is wasting little time in trying to reach them. While SCMP says that online delivery services already blanket 1,300 cities. Panda Selected, founded just three years ago, says it already operates 120 locations that cover China’s biggest centers, including Shanghai, Beijing, Shenzhen and Hangzhou. It claims to work with more than 800 domestic catering brands, including Luckin Coffee, Kungfu and TubeStation. The company also says that its kitchens are typically 5,000-square-feet in size and can accommodate up to 20 restaurants in each space.
With its new funding, it expects to double that number over the next eight months, too, its founder, Haipeng Li, tells Bloomberg. That’s going to make it difficult to challenge, especially by any U.S.-based company, given overall relations between the two countries and the ever-changing regulatory environment in China.
Then again, this may be just the first inning. Stay tuned.
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