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For years, India has served as the largest open battleground for Silicon Valley and Chinese firms searching for their next billion users.
With more than 400 million WhatsApp users, India is already the largest market for the Facebook-owned service. The social juggernaut’s big blue app also reaches more than 300 million users in the country.
Google is estimated to reach just as many users in India, with YouTube closely rivaling WhatsApp for the most popular smartphone app in the country.
Several major giants from China, like Alibaba and Tencent (which a decade ago shut doors for most foreign firms), also count India as their largest overseas market. At its peak, Alibaba’s UC Web gave Google’s Chrome a run for its money. And then there is TikTok, which also identified India as its biggest market outside of China.
Though the aggressive arrival of foreign firms in India helped accelerate the growth of the local ecosystem, their capital and expertise also created a level of competition that made it too challenging for most Indian firms to claim a slice of their home market.
New Delhi’s ban on 59 Chinese apps on June 30 on the basis of cybersecurity concerns has changed a lot of this.
Indian apps that rarely made an appearance in the top 20 have now flooded the charts. But are these skyrocketing download figures translating to sustaining users?
An industry executive leaked the download, monthly active users, weekly active users and daily active users figures from one of the top mobile insight firms. In this Extra Crunch report, we take a look at the changes New Delhi’s ban has enacted on the world’s second largest smartphone market.
Scores of startups in India, including news aggregator DailyHunt, on-demand video streamer MX Player and advertising giant InMobi Group, have launched their short-video format apps in recent months.
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Spotify explores virtual concerts, Twitter tests a “quotes” count and Google’s Nest Hub becomes more hotel-friendly. This is your Daily Crunch for August 26, 2020.
The big story: Spotify is testing virtual events
We can’t have real-world concerts at the moment, so the popular music streaming service is exploring virtual alternatives. The feature isn’t live yet, but reverse-engineering scoopster Jane Manchun Wong tweeted out photos of an “Upcoming Virtual Events” section.
Spotify already highlights upcoming concerts from artists you like through various ticketing partners, and the screenshots show Songkick as the ticketing partner. Presumably, Spotify would be able to support virtual events with only minor changes to its bargaining agreement.
And how big can these events be? K-pop megastars BTS raised nearly $20 million for a single show — but it’s probably safe to assume that most events will fall far short of that.
The tech giants
Twitter experiments with adding a ‘Quotes’ count to tweets — This engagement metric would sit alongside the tweet’s existing retweets and likes counts.
Instagram Guides may soon allow creators to recommended places, products and more — The feature, which launched in May, has allowed select organizations and experts to share resources related to managing your mental health.
Google is pushing to get the Nest Hub in more hotel rooms — A new update is tailored for the hotel experience, with key features like wake-up calls, weather and local businesses.
Startups, funding and venture capital
SpaceX will launch Masten’s first lander to the moon in 2022 — Masten’s first lunar mission is set to take place in 2022 if all goes according to plan.
Here are the 94 companies from Y Combinator’s Summer 2020 Demo Day 2 — So many companies!
Course Hero, a profitable edtech unicorn, raises rare cash — A Series B extension of $70 million, to be more specific.
Advice and analysis from Extra Crunch
Synthetic biology startups are giving investors an appetite — Impossible Foods is only the most public face of a growing trend in bioengineering.
Funding for mental health-focused startups rises in 2020 — As wellness startups drift generally, VC hotspots emerge.
(Reminder: Extra Crunch is our subscription membership program, which aims to democratize information about startups. You can sign up here.)
Everything else
GM teases two new all-electric Chevy Bolt models — Both vehicles will go into production in summer 2021, according to GM.
Learn how to scale social impact startups at Disrupt with Phaedra Ellis-Lamkins and Jessica O. Matthews — Uttering the words “making the world a better place” isn’t the same as doing it, or doing it well.
The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.
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With a large part of the working world doing jobs from home when possible these days, the focus right now is on how best to recreate the atmosphere of an office virtually, and how to replicate online essential work that used to be done in person. Today, href=”http://linkedin.com” target=”_blank” rel=”noopener noreferrer”>LinkedIn announced a couple of big new feature updates that point to how it’s trying to play a part in both of these: it’s launching a new Polls feature for users to canvas opinions and get feedback; and it’s launching a new “LinkedIn Virtual Events” tool that lets people create and broadcast video events via its platform.
Despite now being owned by Microsoft, interestingly it doesn’t seem that the Virtual Events service taps into Teams or Skype, Microsoft’s two other big video products that it has been pushing hard at a time when use of video streaming for work, education and play is going through the roof.
The polls feature — you can see an example of one in the picture below, or respond to that specific poll here — is a quick-fire and low-bar way of asking a question and encouraging engagement: LinkedIn says that a poll takes only about 30 seconds to put together, and responding doesn’t require thinking of something to write, but gives the respondent more of a ‘voice’ than he or she would get just by providing a “like” or other reaction.
But as with some of the other social features that LinkedIn has implemented over the years, its timing has not been quite right. With polls, you might say it’s been frustratingly late… or you might say it left the party too early.
The feature was first spotted by developer and app digger Jane Manchun Wong a couple of weeks ago, but it comes years after Twitter and Facebook have had polls in place on their platforms. I’d say it’s taken LinkedIn years to catch up, but actually it had polls in place years ago, yet chose to sunset the feature, back in 2014.
You could argue that LinkedIn miscalled the direction that social would go with engagement, or that it took too long to resuscitate the experience, or that the novelty of the concept that now worn off. Or you might say that LinkedIn has picked just the right time to bring it back, at a time when people are spending more time online than ever and are looking for more ways of varying the experience and interacting.
Those creating polls will be given the option in the menu of items when starting a new post. They can add four choices/options into the poll answers, and decide how long they would like for the poll to stay up, in a range of 24 hours to two weeks. You can also write an introduction post to accompany your poll with hashtags to come up in more searches.
Two important distinctions with LinkedIn Polls as you can see above are that you are polling a very specific audience of people in your professional circle, and those people can both respond to the poll but also include comments and reactions. Both of these set the feature as it works on LinkedIn apart from the others and should give it some… engagement.
The polls feature is getting rolled out (again) starting today.
The LinkedIn Virtual Events feature, meanwhile, falls into a similar placement as polls: it’s a way of getting people to engage more on LinkedIn, it taps into trends that are huge outside of the platform — in this case, videoconferencing — and it’s something that is coming surprisingly late to LinkedIn, given its existing product assets.
But is also potentially — potentially, because Live is still in an invite-only phase — going to prove very popular because it’s filling a very specific need.
LinkedIn Virtual Events is a merger of two products that LinkedIn launched last year, a live video broadcasting tool called LinkedIn Live, and its efforts to foster a sideline in offline, in person networking with LinkedIn Events. The idea here is that while physical events have been put on pause in the current climate — many cities have made group activities illegal in an attempt to slow the spread of the novel coronavirus — you can continue to use LinkedIn Events to plan them, but now carry them out over the Live platform.
Given how huge the conferencing industry has become, I am guessing that we will be seeing a lot of attempts at recreating something of those events in a virtual, online context. LinkedIn’s take on the challenge — via Virtual Events — could therefore become a strong contender to host these.
When LinkedIn first launched Events I did ask the company whether it planned to expand them online using live, and indeed that did seem to be the plan. LinkedIn now says that it “accelerated” its product roadmap — unsurprising, given the current market — to merge the two products for targeted audiences.
That’s why we accelerated our product roadmap to bring you a tighter integration between LinkedIn Events and LinkedIn Live, turning these two products into a new virtual events solution that enables you to stay connected to your communities and meet your customers wherever they are. This new offering is designed to help you strengthen relationships with more targeted audiences.
This is not a simple integration, I should point out: LinkedIn is working with third-party broadcasting partners — the initial list includes Restream, Wirecast, Streamyard and Socialive — to raise the level of production quality, which will be essential especially if you are asking people to pay for events, and if you have any hope of replicating some of the networking other features that are cornerstones of conferencing and other in-person events.
It’s also building on what has been a successful product so far for LinkedIn: the company says that Live has 23X more comments per post and 6X more reactions per post than simple native video.
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Oxwash, a UK-based laundry startup that’s aiming to disrupt traditional but environmentally costly washing and dry-cleaning processes by using ozone to sterilize fabrics at lower temperatures, along with electric cargo bikes for hyper local pick ups and deliveries, has bagged a £1.4 million (~$1.7M) seed.
Backers in the funding round include TrueSight Ventures, Biz Stone (co-founder of Twitter), Paul Forster (founder of Indeed.com), Founders Factory and other unnamed angel investors.
Prior to this, Oxwash was working with a £300k pre-seed round — which it used to fund building its first washing hubs (which it calls “Lagoons”) and to test its reengineered washing process.
The startup’s pitch is that its applying “space age” technology to clean dirty laundry, burnished by the claim that its co-founder and CEO, Kyle Grant, is a former NASA engineer — having spent two years as a systems engineer where he researched the use and effect of microorganisms for extended space travel.
That said, it’s packing its reengineered cleaning system into standard (but “massively” modified) industrial washing machines. Just add coronavirus-safe ‘space suits’ (er, PPE)….
“Washing still has crazy carbon emissions, pollution and collection/delivery services cause large amounts of congestion. We saw a way to re-engineer the laundry process from the ground up and to be the first truly sustainable, space-age laundry company in the world,” says Grant, discussing the opportunity he and his co-founder spied to rethink laundry.
“We’re developing processes to have zero net carbon emissions for the whole laundry process — from collection to washing and back to delivery.”
The team is developing “chemistry that works at 20˚C better than at 40˚C or higher, integrating ozone disinfection to remove microorganisms by oxidation rather than using heat and developing water recycling and filtration systems to reduce water consumption and remove microfibre pollution at the same time”, per Grant.
It’s also structuring business operations to locate washing hubs in city centres, where its customers are based, so it can make use of electric bikes for moving the laundry around — allowing for a next day service with 30 minute collection and delivery windows.
“Traditional washing processes use huge amounts of water, energy to heat said water, harsh chemicals and normal petrol/diesel vans for the collections and deliveries. These process warehouses are usually located outside of cities and there are large lags in when items are returned to the customers (up to two weeks),” he further claims.
While ozone itself is a pollutant that degrades air quality, and can even be dangerous if released, Grant says the ozone used in its cleaning machines — which is produced from oxygen in the atmosphere — degrades back to oxygen “within minutes and is therefore inert and safe”.
“After extensive analysis ozone is far safer to use in commercial laundry processes than heat and harsh chemicals such as peroxides (bleach),” he suggests.
On safety, he also says their washing machines are modified to be sealed whilst “washing and disinfecting”, and can only be opened after the ozone has degraded. “Our lagoons are also fitted with ozone sensors that will cut off our generators if the ozone concentration in the air ever goes over the safe limit,” he adds. “Thankfully this has never occurred. The risks to our staff are far lower than when working with boiling water tanks, harsh chemicals and manual handling, the usual work flow in commercial laundries.”
Oxwash launched in the UK in early 2018 and now has more than 4,000 individual customers, per Grant, along with “several hundred” business customers — including the Marriott Hotel Chain, NHS GP practices, London Marathon and Universities of Oxford and Cambridge.
It’s executed a slight pivot of focus over the past two months — spying an opportunity to target risks related to the coronavirus. “We’ve developed a service in the last 2 months that is available to provide coronavirus disinfection,” he says in a statement. “We are working closely with [the UK’s National Health Service] NHS and vulnerable groups to provide support when needed.”
“We have adopted laboratory-grade PPE [personal protective equipment] processes, heavily inspired and adapted from my time working at NASA but also from guidelines from the NHS and HSE England,” Grant adds. “For example, we now perform contactless collections and deliveries whereby the customers pre-bag their items in supplied dissolvable bags. Our rider then has gloves, goggles and a respirator to perform the transfer back to the lagoon where a member of our team in full hazmat gear will load and unload the machines where disinfection is performed.”
Before the COVID-19 pandemic, he says the startup was getting traction from customers wanting to remove allergens that caused them allergic reactions.
“We were confident of moving into the healthcare market in the years to come but usually the tender process for such contracts is not conducive to a startup,” says Grant. “However since the advent of COVID-19 and our ongoing healthcare certification, we have seen a huge increase in the value of proper hygiene to both the individuals and businesses we serve. The Marriott Hotel chain and Airbnb have both expressed serious intent to work on a non-healthcare hygiene rating much like that of the Food Standards Authority. We are working with CINET (the international textile committee) to bring this to market with our technology and processes.”
The seed funding will be used to expand to more cities within the UK and Europe — with London and other European hubs, such as Paris and Amsterdam, in its sights. Its initial two locations are Oxford and Cambridge.
It’s also going to spin up on the hiring front, planning to add a head of growth and head of tech, as well as new operational roles in London.
Ploughing more resource into software dev is another focus, with funding going to expand the tech stack and the software systems which run its logistics and integrate with its digitised washing process. More work on its app is also planned.
Asked what makes Oxwash a scalable business, Grant points to the development of this proprietary software alongside the reengineered washing service. “This iteration of technology and service allows us to develop our washing technology rapidly and get real-time feedback on the end-product and service from our customers,” he says. “The scalable technology element is the proprietary washing process driven by our bespoke software stack and process algorithms.”
On the labor side, Grant says Oxwash is “working towards a B Corp accreditation”.
“[We] have long held that our team should be properly reimbursed for their work but also as ambassadors for our brand out on our bikes. To that end all of our riders (couriers) are fully employed and like the rest of the team they are paid in excess of the national living wage,” he adds.
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Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.
What a week it’s been. I’m exhausted. Not only are we another cycle deeper into the COVID-19 quarantine, but there seems to be more news than ever to sift through. I’ve fallen behind. So, today, this little column is taking look back at things that it missed but wanted to cover. (There may come a day when we run out of stuff to talk about, but it’s not coming any time soon.)
So let’s talk about a16z’s new crypto fund, recent economic data, the Ebang F-1, Lime’s layoffs, Procore’s IPO delay and fresh valuation, stocks, Luckin, and, if we have time, Twitter’s changing jobs data. Let’s get this all out of our heads and into the world.
To annoy my editors, we’re using bullet points this morning. Bullet points are great way to convey a bloc of information in a neat format. Let the haters hate, we have a lot of ground to cover:
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By the summer of 2016, Marie Outtier had spent eight years as a consultant advising media agencies and martech companies on marketing growth strategy.
Pierre-Jean “PJ” Camillieri started as a music software engineer before joining one of Apple’s consumer electronics divisions. Inspired by Siri, he left to start Timista, a smart lifestyle assistant.
When the two joined forces to co-found Aiden.ai, the combination was potent — one was a consummate marketer, the other, a specialist in machine learning. Their goal: create an AI-driven marketing analyst that offered actionable advice in real time.
Humans who manage ad campaigns must analyze vast amounts of numbers, but Outtier and Camillieri envisioned a tool that could make optimization recommendations in real time. Analytics are vast and unwieldy, so theirs was a no-brainer proposition with a market crying out for solutions.
The company’s first office was at Bloom Space in Gower Street, London. It was just a handful of hot desks and a nearby sofa shared with four other startups. That summer, they began in earnest to build the company. A few months later, they had a huge opportunity when the still 100% bootstrapped company was selected for Techcrunch Disrupt’s Startup Battlefield competition.
Interviewed by TechCrunch, they explained their proposition: Marketers wanted to know where a digital marketing campaign was getting the most traction: Twitter or Facebook. You might need to check several dashboards across multiple accounts, plus Google analytics to compile the data — and even if you conclude that one platform is outperforming the other, that might change next week as users shift attention to Instagram, potentially wasting 60% of ad spend.
Aiden was intended to feel like just another co-worker, relying on natural language processing to make the exchange feel chatty and comfortable. It queried data from multiple dashboards and quickly compiled it into flash charts, making it easy to find and digest.
Eventually, instead of managing 10 clients, marketing analysts would be able to manage 50 using dynamic predictions as well as visualizations. Aiden incorporated Outtier’s expertise into its algorithms so it could suggest how to tweak a Facebook campaign and anticipate what was going to happen.
Was appearing at Disrupt a significant moment? “It was a big deal for us,” says Outtier. “The exposure gave us ammunition to raise our first round. And being part of the Disrupt Battlefield alumni gave us many meaningful networking and PR opportunities.”
A few weeks later the company had raised a seed round of $750,000. But not without difficulty. By this time Outtier was in the latter stages of pregnancy. Raising money under these circumstances was difficult, but, she says, “it can be done. It’s tougher than ‘normal circumstances.’ It’s a bit like running a marathon, but with a fridge on your back.”
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Every time we realize something new about the coronavirus, it’s always worse than we thought: maybe we don’t develop immunity to it; maybe six feet of social distancing isn’t far enough; maybe the spread won’t wane in warmer weather.
Every time we realize something new about the economy, it’s equally bleak: maybe we can’t safely reopen for months (Georgia and South Carolina notwithstanding), maybe unemployment will top Great Depression levels, maybe travel won’t resume till mid-2021, maybe most of the businesses who have shuttered their doors will never return.
But like everything in life, within all of the bad, there’s usually some good too. And for businesses who have to deal with regulation, this may be an unusually good time to get what you need.
The federal government does not have to balance its budget, which is why multi-trillion dollar legislation like the CARES Act is possible. But cities and states have to produce a budget every fiscal year that at least looks balanced on paper. In good times, that leads to lots of new spending. But in bad times, it requires a painful series of cuts, tax and fee increases and tough decisions that are normally avoided by politicians at all costs. All of that creates opportunity for startups.
Local government will desperately need new sources of revenue. Figuring out what a politician is going to do isn’t that difficult: identify the choice with the least political downside and that’s almost always the answer. That’s why controversial policy issues like legalizing mobile sports betting or recreational marijuana often stall in state legislatures when the budget is flush (disclosure, we’re investors in FanDuel) . But now, lawmakers face a very different situation: to balance the budget, they will either need to enact deep spending cuts, raise fees and taxes, or find new sources of revenue. All of a sudden, legalizing gambling and drugs doesn’t seem so risky, politically or substantively.
Any company that can offer material new tax revenues can now see their product or service legalized and permitted in a fraction of the time it would normally take. Companies who can offer direct savings to government can now secure contracts and win procurements at a rapidly faster clip. A broke government is a friendly government. This is the moment to be aggressive.
It was less than a year ago when Amazon tried to build its second headquarters in New York City.
Despite strong support from Governor Andrew Cuomo and tepid support from Mayor Bill de Blasio, the project was widely derided as an unfair corporate boondoggle and Amazon was swiftly run out of town. In good economic times, voters have the luxury of focusing on issues that aren’t critical to their own day-to-day survival and politicians have the luxury of saying no to new jobs and tax revenue to try to score points with the base.
Not anymore. Startups in blue cities and states up and down both coasts have vastly more political leverage than they’ve had in years. Issues like privacy, worker classification reform and fears of AI are all about to take a back seat to pocketbook issues like jobs, crime and access to health care. Startups who can promise to retain jobs can now drive meaningful changes on policy, regulation, permitting, zoning, licensing and everything else they need to operate.
Startups that can offer solutions to living in a pandemic (digital payments, D2C, telemedicine, teleconferencing, tele-anything) will become shiny new toys that lawmakers want to be seen with. Delivery drones, autonomous cars, at home medical testing and other concepts that seem a little edgy will now become ideas that lawmakers have to seriously consider – if a new technology could potentially save lives during a pandemic, you really don’t want to be the politician who killed the idea.
Proposals to screw with startups won’t automatically become the top priority for the San Francisco Board of Supervisors. Facebook even now has a much stronger argument to lobby for Libra (no one in this climate wants to use cash if they can help it). The power dynamic just flipped on its head. But that only works if you understand it and take advantage of it.
In the continual debate over whether tech startups should ask government for permission or beg for forgiveness over the last few years, the zeitgeist has shifted significantly towards asking for permission. The tech-lash against Facebook, Google, Amazon, Apple and Twitter created regulatory headaches for virtually every tech company, even some early stage startups.
All of that just changed. Regulators and lawmakers now have far bigger things to worry about than whether an electric scooter needs a particular type of permit. And if saying no to new ideas from new companies means turning away desperately needed jobs and tax revenue, for all of the same reasons that it was politically salient for lawmakers to reclassify all California sharing economy workers as full time employees or reject Amazon’s overtures or limit the spread of homesharing, the opposite is now true.
Now you get points for creating jobs and avoiding spending cuts. Now you’re far more reticent to tell a constituent that they can’t make a few extra bucks by renting out a room (assuming anyone ever travels again). The label of job killer will start to become politically toxic, even in the most progressive wards, districts and neighborhoods in the bluest cities on each coast. The dynamic is clearly shifting back to begging for forgiveness (don’t be stupid and do things that are clearly illegal but interpreting gray areas of regulation as friendly is now a lot easier).
Unlike the financial crisis in 2008, businesses are not the culprit here. Tech companies are actually even some of the heroes of fighting the coronavirus. But most important, being punitive towards startups is no longer a clear political winner, even in the most liberal cities and states. Even if it seems counterintuitive, now is exactly the time for startups to aggressively seek policy change and regulatory relief.
Politics is about leverage. Startups now have it. They should take advantage of it before things change again.
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Smart rings are still a relatively young category in the wearable hardware world, but the Oura Ring seems to be a standout in terms of early success. The Oura Ring hardware is sleek and packed with sensors, allowing it to measure a user’s sleep patterns, take your body temperature and track activity, and now Oura has raised $28 million in Series B funding to bring on new key hires and product updates.
In a Medium post announcing the raise, Oura CEO Harpreet Singh Rai revealed that to date, the company has sold over 150,000 of its rings since launch (which was in early 2018) and that its team has grown to over 100 people globally. The Series B funding comes from Forerunner Ventures, which has a strong track record when it comes to direct-to-consumer product company investments, as well as from Gradient Ventures and Square.
Along with the investment, Oura gains two new board members, and one new board observer all with expertise in different aspects of the startup’s business: Forerunner’s Eurie Kim and Square’s hardware lead Jesse Dorogusker are the new board members, and Gradient partner (and former VP of engineering at Google) Anna Patterson joins as the observer.
Oura will be revamping its website and adding a new web-based portal for Oura Ring users that offers “actionable insights,” the company says, and it’s going to be doing more in terms of collaborating with academic researchers on ensuring its products measurements and guidance remain as accurate and useful as possible.
Oura prioritizes the role of sleep in terms of its contribution to health, and has also recently ventured into the realm of meditation, but it acts as a general fitness tracking device as well. It has attracted a number of fans among the plugged-in tech elite, too, including Twitter and Square CEO Jack Dorsey. The company deserves kudos for delivering a solid, attractive and feature-rich gadget in a category that seemed like a tough sell in the early offing, and this new funding is a good vote of confidence.
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Box has joined a number of tech companies supporting employees to work remotely from home in response the outbreak of the novel coronavirus.
It’s applying the policy to all staff, regardless of location.
Late yesterday Box co-founder Aaron Levie tweeted a statement detailing the cloud computing company’s response to COVID-19, the name of the disease caused by the coronavirus — to, as he put it, “ensure the availability of our service and safety of our employees”.
We know how important secure collaboration and remote work is becoming for our customers right now. Here are a few of the measures we’re taking to ensure the availability of our service and safety of our employees: https://t.co/i65ONkIgNp
— Aaron Levie (@levie) March 8, 2020
In recent days Twitter has similarly encouraged all staff members to work from home. While companies including Amazon, Google, LinkedIn and Microsoft have also advised some staff to work remotely to reduce the risk of exposure to the virus.
In its response statement Box writes that it’s enacted its business continuity plans “to ensure core business functions and technology are operational in the event of any potential disruption”.
“We have long recognized the potential risks associated with service interruptions due to adverse events, such as an earthquake, power outage or a public health crisis like COVID-19, affecting our strategic, operational, stakeholder and customer obligations. This is why we have had a Business Continuity program in place to provide the policies and plans necessary for protecting Box’s operations and critical business functions,” the company writes.
In a section on “workforce resilience and business continuity” it notes that work from home practices are a normal part of its business operations but says it’s now extending the option to all its staff, regardless of the office or location they normally work out of — saying it’s doing so “out of an abundance of caution during COVID-19”.
Other measures the company says it’s taken to further reduce risk include suspending all international travel and limiting non-essential domestic travel; reducing large customer events and gatherings; and emphasizing health and hygiene across all office locations — “by maintaining sanitation supplies and encouraging an ‘if you are sick, stay home’ mindset”.
It also says it’s conducting all new hire orientation and candidate interviews virtually.
Box names a number of tools it says it routinely uses to support mobility and remote working, including its own service for secure content collaboration; Zoom’s video communication tool; the Slack messaging app; Okta for secure ID; plus additional unnamed “critical cloud tools” for ensuring “uninterrupted remote work for all employees”.
Clearly spying the opportunity to onboard new users, as more companies switch on remote working as a result of COVID-19 concerns, Box’s post also links to free training resources for its own cloud computing tools.
This report was updated with a correction to clarify that COVID-19 is the disease caused by the novel coronavirus; rather than another name for the virus
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Twitter CEO Jack Dorsey might not spend six months a year in Africa, claims the real product development is under the hood and gives an excuse for deleting Vine before it could become TikTok. Today he tweeted, via Twitter’s investor relations account, a multi-pronged defense of his leadership and the company’s progress.
The proclamations come as notorious activist investor Elliott Management prepares to pressure Twitter into a slew of reforms, potentially including replacing Dorsey with a new CEO, Bloomberg reported last week. Sources confirmed to TechCrunch that Elliott has taken a 4% to 5% stake in Twitter. Elliott has previously bullied eBay, AT&T and other major corporations into making changes and triggered CEO departures.
…Focusing on one job and increasing accountability has made a huge difference for us. One of our core jobs is to keep people informed. We want to be a service that people turn to… to see what’s happening, to be a credible source that people learn from.
— Twitter Investor Relations (@TwitterIR) March 5, 2020
Specifically, Elliott is seeking change because of Twitter’s weak market performance, which as of last month had fallen 6.2% since July 2015, while Facebook had grown 121%. The corporate raider reportedly takes issue with Dorsey also running fintech giant Square, and having planned to spend up to six months a year in Africa. Dorsey tweeted that “Africa will define the future (especially the bitcoin one!),” despite cryptocurrency having little to do with Twitter.
Rapid executive turnover is another sore spot. Finally, Twitter is seen as moving glacially slow on product development, with little about its core service changing in the past five years beyond a move from 140 to 280 characters per tweet. Competing social apps like Facebook and Snapchat have made landmark acquisitions and launched significant new products like Marketplace, Stories and Discover.
Dorsey spoke today at the Morgan Stanley investor conference, though apparently didn’t field questions about Elliott’s incursion. The CEO did take to his platform to lay out an argument for why Twitter is doing better than it looks, though without mentioning the activist investor directly. That type of response, without mentioning to whom it’s directed, is popularly known as a subtweet. Here’s what he outlined:
On democracy: Twitter has prioritized healthy conversation and now “the #1 initiative is the integrity of the conversation around the elections” around the world, which it’s learning from. It’s now using humans and machine learning to weed out misinformation, yet Twitter still hasn’t rolled out labels on false news despite Facebook launching them in late 2016.
On revenue: Twitter expects to complete a rebuild of its core ad server in the first half of 2020, and it’s improving the experience of mobile app install ads so it can court more performance ad dollars. This comes seven years late to Facebook’s big push around app install ads.
On shutting down products: Dorsey claims that “5 years ago we had to do a really hard reset and that takes time to build from… we had been a company that was trying to do too many things…” But was it? Other than Moments, which largely flopped, and the move to the algorithmic feed ranking, Twitter sure didn’t seem to be doing too much and was already being criticized for slow product evolution as it tried to avoid disturbing its most hardcore users.
On stagnation: “Some people talk about the slow pace of development at Twitter. The expectation is to see surface level changes, but the most impactful changes are happening below the surface,” Dorsey claims, citing using machine learning to improve feed and notification relevance.
Yet it seems telling that Twitter suddenly announced yesterday that it was testing Instagram Stories-esque feature Fleets in Brazil. No launch event. No U.S. beta. No indication of when it might roll out elsewhere. It seems like hasty and suspiciously convenient timing for a reveal that might convince investors it is actually building new things.
On talent: Twitter is apparently hiring top engineers “that maybe we couldn’t get 3 years ago.” 2017 was also Twitter’s share price low point of $14 compared to $34 today, so it’s not much of an accomplishment that hiring is easier now. Dorsey claims that “Engineering is my main focus. Everything else follows from that.” Yet it’s been years since fail whales were prevalent, and the core concern now is that there’s not enough to do on Twitter, rather than what it does offer doesn’t function well.
On Jack himself: Dorsey says he should have added more context “about my intention to spend a few months in Africa this year,” including its growing population that’s still getting online. Yet the “Huge opportunity especially for young people to join Twitter” seemed far from his mind as he focused on how crypto trading was driving adoption of Square’s Cash App.
“I need to reevaluate” the plan to work from Africa “in light of COVID-19 and everything else going on.” That makes coronavirus a nice scapegoat for the decision while the phrase “everything else” is doing some very heavy lifting in the face of Elliott’s activist investing.
Photographer: Cole Burston/Bloomberg via Getty Images
On fighting harassment: Nothing. The fact that Twitter’s most severe ongoing problem doesn’t even get a mention should clue you in to how many troubles have stacked up in front of Dorsey.
Running Twitter is a big job. So big it’s seen a slew of leaders ranging from founders like Ev Williams to hired guns like Dick Costolo peel off after mediocre performance. If Dorsey wants to stay CEO, that should be his full-time, work-from-headquarters gig.
This isn’t just another business. Twitter is a crucial communications utility for the world. Its absence of innovation, failure to defend vulnerable users and an inability to deliver financially has massive repercussions for society. It means Twitter hasn’t had the products or kept the users to earn the profits to be able to invest in solving its problems. Making Twitter live up to its potential is no side hustle.
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