e-commerce

How COVID-19 transformed the way Americans spend online

Posted by | Column, coronavirus, COVID-19, e-commerce, eCommerce, Extra Crunch, Gaming, growth marketing, Market Analysis, Media, mobile web, online shopping, payments, retail, shopping, Social, social commerce, Startups, TC | No Comments
Ethan Smith
Contributor

Ethan Smith is founder and CEO of Graphite, an SEO and growth marketing agency based in San Francisco. Ethan has served as a strategic advisor to Ticketmaster, MasterClass, Thumbtack and Honey.

COVID-19 has transformed the way Americans use their phones and the way they spend their time and money online. These shifts present both a number of challenges and a raft of opportunities for savvy growth marketers.

We’ve seen COVID-19 affect a number of verticals. A number of industries have taken a hit (like music streaming and sports), while some are expanding due to the pandemic (groceries, media, video gaming). Others have found distinctive ways to adjust the way they position and sell their product, allowing them to take advantage of changes in buyer behavior.

The key to being able to read and react to changes in this still-tumultuous time and tailoring your growth marketing accordingly is to understand how public sentiment is reflected in new purchasing behaviors. Here’s an overview of the most important trends we’re seeing that will allow you to adjust your growth marketing effectively.

By the numbers: A sheltering-in-place economy

Virtually all of the data we’ve seen shows a marked difference in buyer behavior following the WHO’s declaration of a pandemic on March 11, 2020. With consumers encouraged to stay home to deter the spread of COVID-19, it’s no surprise that the biggest change is the spike in online activity.

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Chinese startup Rokid pitches COVID-19 detection glasses in US

Posted by | ambient intelligence, america, artificial intelligence, california, China, COVID-19, data management, Director, e-commerce, Emerging-Technologies, facial recognition, Gadgets, Hangzhou, Internet of Things, IoT, Johns Hopkins University, Larry Liu, law enforcement, Liang Guan, Megvii, president, Qualcomm, rokid, SenseTime, smartglasses, Startups, surveillance, t1, TC, tech startups, TechCrunch, technology, trump, ubiquitous computing, United States, wearable devices, wearable technology, Weee!, White House, world health organization | No Comments

Thermal imaging wearables used in China to detect COVID-19 symptoms could soon be deployed in the U.S.

Hangzhou based AI startup Rokid is in talks with several companies to sell its T1 glasses in America, according to Rokid’s U.S. Director Liang Guan.

Rokid is among a wave of Chinese companies creating technology to address the coronavirus pandemic, which has dealt a blow to the country’s economy. 

Per info Guan provided, Rokid’s T1 thermal glasses use an infrared sensor to detect the temperatures of up to 200 people within two minutes from as far as three meters. The devices carry a Qualcomm CPU, 12 megapixel camera and offer augmented reality features — for hands free voice controls — to record live photos and videos.

The Chinese startup (with a San Francisco office) plans B2B sales of its wearable devices in the U.S. to assist businesses, hospitals and law enforcement with COVID-19 detection, according to Guan.

Rokid is also offering IoT and software solutions for facial recognition and data management, as part of its T1 packages.

Image Credits: Rokid

The company is working on deals with U.S. hospitals and local municipalities to deliver shipments of the smart glasses, but could not disclose names due to confidentiality agreements.

One commercial venture that could use the thermal imaging wearables is California based e-commerce company Weee!.

The online grocer is evaluating Rokid’s T1 glasses to monitor temperatures of its warehouse employees throughout the day, Weee! founder Larry Liu confirmed to TechCrunch via email.

On procedures, to manage those who exhibit COVID-19 related symptoms —  such as referring them for testing — that’s something for end-users to determine, according to Rokid. “The clients can do the follow-up action, such as giving them a mask or asking to work from home,” Guan said.

The T1 glasses connect via USB and can be set up for IoT capabilities for commercial clients to sync to their own platforms. The product could capture the attention of U.S. regulators, who have become increasingly wary of Chinese tech firms’ handling of American citizen data. Rokid says it doesn’t collect info from the T1 glasses directly.

“Regarding this module…we do not take any data to the cloud. For customers, privacy is very important to them. The data measurement is stored locally,” according to Guan.

Image Credits: Rokid

Founded in 2014 by Eric Wong and Mingming Zhu, Rokid raised $100 million at the Series B level in 2018. The business focuses primarily on developing AI and AR tech for applications from manufacturing to gaming, but developed the T1 glasses in response to China’s COVID-19 outbreak.

The goal was to provide businesses and authorities a thermal imaging detection tool that is wearable, compact, mobile and more effective than the common options.

Large scanning stations, such as those used in airports, have drawbacks in not being easily portable and handheld devices — with infrared thermometers — pose risks.

“You have to point them to people’s foreheads…you need to be really close, it’s not wearable and you’re not practicing social distancing to use those,” Guang said.

Rokid pivoted to create the T1 glasses shortly after COVID-19 broke out in China in late 2019. Other Chinese tech startups that have joined the virus-fighting mission include face recognition giant SenseTime — which has installed thermal imaging systems at railway stations across China — and its close rival Megvii, which has set up similar thermal solutions in supermarkets.

On Rokid’s motivations, “At the time we thought something like this can really help the frontline people still working,” Guang said.

The startup’s engineering team developed the T1 product in just under two months. In China, Rokid’s smart glasses have been used by national parks staff, in schools and by national authorities to screen for COVID-19 symptoms.

Temperature detectors have their limitation, however, as research has shown that more than half of China’s COVID-19 patients did not have a fever when admitted to hospital.

Source: Johns Hopkins University of Medicine Coronavirus Research Center

The growth rate of China’s coronavirus cases — which peaked to 83,306 and led to 3,345 deaths — has declined and parts of the country have begun to reopen from lockdown. There is still debate, however, about the veracity of data coming out of China on COVID-19. That led to a row between the White House and World Health Organization, which ultimately saw President Trump halt U.S. contributions to the global body this week.

As COVID-19 cases and related deaths continue to rise in the U.S., technological innovation will become central to the health response and finding some new normal for personal mobility and economic activity. That will certainly bring fresh facets to the common tech conundrums — namely measuring efficacy and balancing benefits with personal privacy.

For its part, Rokid already has new features for its T1 thermal smart glasses in the works. The Chinese startup plans to upgrade the device to take multiple temperature readings simultaneously for up to four people at a time.

“That’s not on the market yet, but we will release this very soon as an update,” said Rokid’s U.S. Director Liang Guan .

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Grocery delivery apps see record downloads amid coronavirus outbreak

Posted by | Apps, apptopia, coronavirus, COVID-19, e-commerce, eCommerce, grocery, grocery delivery, Health, Instacart, Mobile, online grocery, online shopping, shipt, Target, Walmart | No Comments

As the COVID-19 pandemic spreads across the U.S., grocery delivery apps have begun seeing record numbers of daily downloads, according to new data from app store intelligence firm Apptopia. On Sunday, online grocery apps, including Instacart, Walmart Grocery and Shipt, hit yet another new record for daily downloads for their respective apps, the firm says.

Comparing the average daily downloads in February to yesterday (Sunday, March 15), Instacart, Walmart Grocery and Shipt have seen their daily downloads surge by 218%, 160% and 124%, respectively.

Typically, these apps (except for Shipt) see tens of thousands to as many as 20,000+ downloads per day. But on Sunday, Instacart saw more than 38,500 downloads and Walmart Grocery saw nearly 54,000 downloads, the firm says. Shipt, though hitting record numbers, saw only 7,285 downloads on Sunday. To some extent, its lower figures could be due to Target’s move to integrate Shipt’s grocery delivery service, which it owns, into its main app.

In fact, the Target app has also broken records for daily downloads, the report found. On Sunday, Target’s app saw more than 53,100 daily downloads; a month ago, it was seeing 25,000+.

Walmart very recently announced it would merge its grocery delivery service into its main app, as Target has done. But for now, consumers are still seeking and downloading its standalone grocery app at record levels.

These grocery delivery apps are in demand more than ever during this health crisis.

With government mandates to practice “social distancing,” U.S. consumers have been stocking up for long weeks to be spent at home. Stores were cleared of key supplies, like toilet paper, and several also saw long lines and crowds as panic-buying set in. Grocery delivery and pickup, meanwhile, presents an easier option — as well as one where you could limit your exposure to other people. With grocery pickup, consumers only have to interact with a single store employee from their curbside parking space. And with grocery delivery, most orders can simply be left on the doorstep with no person-to-person contact required.

Several grocery delivery services, including Instacart and others, promoted the fact they would add a “contactless” delivery option, which helps contribute to the huge sales boost. On Thursday, Instacart said its sales growth rates for the week was 10 times higher than the week before, and had increased by as much as 20 times in areas like California, New York, Washington and Oregon.

Apptopia’s report didn’t analyze the impact of the coronavirus outbreak on Amazon’s grocery delivery business, which includes Amazon Fresh and Whole Foods deliveries. This is more difficult to do because Amazon grocery orders aren’t placed inside a dedicated app, as with Instacart. However, Amazon confirmed a technical glitch on Sunday affected online orders through both its grocery delivery services, which the company attributed to the increase in online shopping.

“As COVID-19 has spread, we’ve seen a significant increase in people shopping online for groceries,” an Amazon spokeswoman explained, in a statement shared with Bloomberg. “This resulted in a systems impact affecting our ability to deliver Amazon Fresh and Whole Foods Market orders [on Sunday night]. We’re contacting customers, issuing concessions, and are working around the clock to quickly to resolve the issue,” they added.

Amazon Prime is also expected to experience delays and shortages as consumers stock up on non-grocery household items, the company says.

But even as grocery delivery booms, the market for food delivery apps has not seen the same results.

Despite promises for contactless delivery from several providers, including Uber Eats, food delivery apps are not experiencing a similar surge in daily downloads. According to Apptopia, the food delivery market earlier in March was starting to cool off. It later began to pick up but then cooled off again as consumers realized the expense of ordering food compared with home cooking, and because some consumers view restaurant delivery as not being as safe as cooking at home.

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Opera and the firm short-selling its stock (alleging Africa fintech abuses) weigh in

Posted by | africa, Andrew Left, Android, Asia, Citron Research, e-commerce, Finance, freeware, Google, Google Play Store, india, jumia, kenya, Lyft, Nigeria, Norway, Opay, Opera, operating systems, TC, Tesla, United States, Web browsers | No Comments

Internet services company Opera has come under a short-sell assault based on allegations of predatory lending practices by its fintech products in Africa.

Hindenburg Research issued a report claiming (among other things) that Opera’s finance products in Nigeria and Kenya have run afoul of prudent consumer practices and Google Play Store rules for lending apps.

Hindenburg — which is based in NYC and managed by financial analyst Nate Anderson — went on to suggest Opera’s U.S.-listed stock was grossly overvalued.

That’s a primer on the key info, though there are several additional shades of the who, why and where of this story to break down before getting to what Opera and Hindenburg had to say.

A good start is Opera’s ownership and scope. Founded in Norway, the company is an internet services provider, largely centered around its Opera browser.

Opera was acquired in 2016 for $600 million by a consortium of Chinese investors, led by current Opera CEO Yahui Zhou.

Two years later, Opera went public in an IPO on NASDAQ, where its shares currently trade.

Web Broswers Africa 2019 Opera

Though Opera’s web platform isn’t widely used in the U.S. — where it has less than 1% of the browser market — it has been No. 1 in Africa, and, more recently, a distant second to Chrome, according to StatCounter.

On the back of its browser popularity, Opera went on an African venture spree in 2019, introducing a suite of products and startup verticals in Nigeria and Kenya, with intent to scale more broadly across the continent.

In Nigeria these include motorcycle ride-hail service ORide and delivery app OFood.

Central to these services are Opera’s fintech apps: OPay in Nigeria and OKash and Opesa in Kenya — which offer payment and lending options.

Fintech-focused VC and startups have been at the center of a decade-long tech boom in several core economies in Africa, namely Kenya and Nigeria.

In 2019, Opera led a wave of Chinese VC in African fintech, including $170 million in two rounds to its OPay payments service in Nigeria.

Opera’s fintech products in Africa (as well as Opera’s Cashbean in India) are at the core of Hindenburg Research’s brief and short-sell position. 

The crux of the Hindenburg report is that due to the declining market share of its browser business, Opera has pivoted to products generating revenue from predatory short-term loans in Africa and India at interest rates of 365-876%, so Hindenburg claims.

The firm’s reporting goes on to claim Opera’s payment products in Nigeria and Kenya are afoul of Google rules.

“Opera’s short-term loan business appears to be…in violation of the Google Play Store’s policies on short-term and misleading lending apps…we think this entire line of business is at risk of…being severely curtailed when Google notices and ultimately takes corrective action,” the report says.

Based on this, Hindenburg suggested Opera’s stock should trade at around $2.50, around a 70% discount to Opera’s $9 share price before the report was released on January 16.

Hindenburg also disclosed the firm would short Opera.

Founder Nate Anderson confirmed to TechCrunch Hindenburg continues to hold short positions in Opera’s stock — which means the firm could benefit financially from declines in Opera’s share value. The company’s stock dropped some 18% the day the report was published.

On motivations for the brief, “Technology has catalyzed numerous positive changes in Africa, but we do not think this is one of them,” he said.

“This report identified issues relating to one company, but what we think will soon become apparent is that in the absence of effective local regulation, predatory lending is becoming pervasive across Africa and Asia…proliferated via mobile apps,” Anderson added.

While the bulk of Hindenburg’s critique was centered on Opera, Anderson also took aim at Google.

“Google has become the primary facilitator of these predatory lending apps by virtue of Android’s dominance in these markets. Ultimately, our hope is that Google steps up and addresses the bigger issue here,” he said.

In a statement to TechCrunch a Google spokesperson said: “Our Google Play Developer Policies are designed to protect users and keep them safe, and we recently expanded our Financial Services policy to help protect people from deceptive and exploitative personal loan terms. When violations are found, we take action.”

Google did not confirm if any specific action would be taken regarding Opera’s fintech products in Africa.  

In the meantime, Opera’s apps in Nigeria and Kenya are still available on GooglePlay, according to Opera and a cursory browse of the site.

For its part, Opera issued a rebuttal to Hindenburg and offered some input to TechCrunch through a spokesperson.

In a company statement opera said, “We have carefully reviewed the report published by the short seller and the accusations it put forward, and our conclusion is very clear: the report contains unsubstantiated statements, numerous errors, and misleading conclusions regarding our business and events related to Opera.”

Opera added it had proper banking licenses in Kenyan or Nigeria. “We believe we are in compliance with all local regulations,” said a spokesperson.

TechCrunch asked Hindenburg’s Nate Anderson if the firm had contacted local regulators related to its allegations. “We reached out to the Kenyan DCI three times before publication and have not heard back,” he said.

As it pertains to Africa’s startup scene, there’ll be several things to follow surrounding the Opera, Hindenburg affair.

The first is how it may impact Opera’s business moves in Africa. The company is engaged in competition with other startups across payments, ride-hail and several other verticals in Nigeria and Kenya. Being accused of predatory lending, depending on where things go (or don’t) with the Hindenburg allegations, could put a dent in brand equity.

There’s also the open question of if/how Google and regulators in Kenya and Nigeria could respond. Contrary to some perceptions, fintech regulation isn’t non-existent in both countries; neither are regulators totally ineffective.

Kenya passed a new data-privacy law in November and Nigeria recently established guidelines for mobile-money banking licenses in the country, after a lengthy Central Bank review of best digital finance practices.

Nigerian regulators demonstrated they are no pushovers with foreign entities, when they slapped a $3.9 billion fine on MTN over a regulatory breach in 2015 and threatened to eject the South African mobile-operator from the country.

As for short-sellers in African tech, they are a relatively new thing, largely because there are so few startups that have gone on to IPO.

In 2019, Citron Research head and activist short-seller Andrew Left — notable for shorting Lyft and Tesla — took short positions in African e-commerce company Jumia, after dropping a report accusing the company of securities fraud. Jumia’s share price plummeted more than 50%, and has only recently begun to recover.

As of Wednesday, there were signs Opera may be shaking off Hindenburg’s report — at least in the market — as the company’s shares had rebounded to $7.35.

Update: This article was updated for a statement by Google post-publication. 

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This Week in Apps: Apple’s vaping app ban, Disney+ gets installed, apps gear up for Black Friday

Posted by | app-store, Apple, Apps, developers, e-commerce, Gaming, Google, Mobile, publishers, TC, this week in apps | No Comments

Welcome back to This Week in Apps, the Extra Crunch series that recaps the latest OS news, the applications they support, and the money that flows through it all. What are developers talking about? What do app publishers and marketers need to know? How are politics impacting the App Store and app businesses? And which apps are everyone using?

As mid-November rolls around, we’re looking at a few big stories, including Apple’s decision to ban an entire category of apps due to health concerns, the launch of Disney+ from an app perspective, what Black Friday will mean for e-commerce apps, and more.

Fast Facts

With Disney+’s huge launch (10+ million users!) on everyone’s minds, it’s time to think about what these streaming newcomers mean for the overall landscape and the app stores. In this case, it seems that Disney+’s user base was highly mobile. The company itself announced more than 10 million users, while data on the Disney+ app’s first few days indicates it now has over 10 million downloads. It seems like consumers definitely want to take their new streaming service with them everywhere they go.

  • In 2020, App Annie forecasts consumers will spend more than 674 billion hours in the Entertainment and Video Player and Editor categories worldwide on Android phones, up from an expected 558 billion hours in 2019. Thanks to Disney+, Apple TV+ and soon, HBO Max, Peacock and Quibi, to making the landscape both richer and more complicated.
  • On its launch day, Disney+ hit #1 by iPhone Overall downloads at 8 AM in the U.S. and at 11 AM in Canada — an indication of the ability that strong IP has can really excite consumers to come out in droves. (Unfortunately, that led to some launch day glitches, too.)
  • Apptopia estimated Disney+ was downloaded 3.2 million times in its first 24 hours. The firm also estimated users collectively spent 1.3 million hours watching Disney+ on day one — ahead of Amazon Prime Video, but well behind Netflix.

  • Sensor Tower waited to collect a little more data instead. It found that the Disney+ app was installed approximately 9.6 million times in all available markets (the U.S., Canada, and the Netherlands), since its U.S. launch on Tuesday, Nov. 12. For comparison’s sake, HBO Now’s U.S. launch only saw 180,000 installs in its first three days — or 2% of the Disney+ total. Combined with the test period installs in the Netherlands, the app has now been installed over 10 million times.
  • The hype around Disney+ has had a halo effect. Hulu and ESPN, which were offered in a bundle with Disney+, also grew as a result of the Disney+ launch. Sensor Tower found combined users of the apps in the U.S. and Canada were up 30% in the past week over the week prior.

Headlines

Apple removed all vaping apps from the App Store, citing CDC health concerns

The CDC says 42 people have died due to vaping product use and thousands more cases of lung injuries have been reported from 49 states. Now, Apple has made the controversial decision to remove all 181 vaping-related apps from its App Store — including those with news and information about vaping and even vaping-related games, Axios reported this week.

Some say Apple is helping to protect kids and teens by limiting their exposure to e-cigarette and vaping products, which are being used to addict a younger generation to nicotine and cause serious disease. Others argue that Apple is over-reaching. After all, many of the lung illnesses involve people who were vaping illegally obtained THC, studies indicated.

This isn’t the first time Apple has banned a category of apps because of what appear to be moral concerns. The company in the past had booted apps that promoted weed or depicted gun violence, for example. In the case of vaping apps, Apple cited the public health crisis and youth epidemic as contributing factors, telling Axios that:

We take great care to curate the App Store as a trusted place for customers, particularly youth, to download apps. We’re constantly evaluating apps, and consulting the latest evidence, to determine risks to users’ health and well-being. Recently, experts ranging from the CDC to the American Heart Association have attributed a variety of lung injuries and fatalities to e-cigarette and vaping products, going so far as to call the spread of these devices a public health crisis and a youth epidemic. We agree, and we’ve updated our App Store Review Guidelines to reflect that apps encouraging or facilitating the use of these products are not permitted. As of today, these apps are no longer available to download.

Existing users will still be able to use their apps, but new users will not be able to download the banned apps going forward.

Minecraft Earth arrives 

Minecraft Earth launched early last week across 9 countries on both Android and iOS and now it’s come to the U.S., Canada, the U.K., and several other markets. Some expect the app will rival the success of the AR breakout hit, Pokémon Go, which was thought at the time to be the precursor to a new wave of massive AR gaming titles. But in reality, that didn’t happen. The highly anticipated follow-up from Niantic, Harry Potter: Wizards Unite didn’t come close to competing with its predecessor, generating $12 million in its first month, compared with Pokémon Go’s first-month earnings of $300 million. With Minecraft Earth now sitting at No. 2 (c’mon, you can’t unseat Disney+) on the U.S. App Store, it seems there’s potential for another AR kingpin.

App Annie releases a user acquisition playbook

A top name in App Store intelligence, App Annie this week released a new how-to handbook focused on user acquisition strategies on mobile. Sure the free download is just a bit of lead gen for App Annie, but the guide promises to fill you in on all you need to know to be successful in acquiring mobile users. The playbook’s arrival follows App Annie’s acquisition of adtech insights firm Libring this fall, as it expands to cover more aspects of running an app business. Just as important as rankings and downloads are the very real costs associated with running an app business — including the cost of acquiring users.

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Europe’s antitrust chief, Margrethe Vestager, set for expanded role in next Commission

Posted by | Android, Apple, artificial intelligence, digital economy, e-commerce, Europe, european commission, european parliament, european union, Facebook, financial services, France, Google, Margrethe Vestager, Mariya Gabriel, online disinformation, Policy, TC, Trump administration, United Kingdom, United States, Vera Jourova | No Comments

As the antitrust investigations stack up on US tech giants’ home turf there’s no sign of pressure letting up across the pond.

European Commission president-elect Ursula von der Leyen today unveiled her picks for the next team of commissioners who will take up their mandates on November 1 — giving an expanded role to competition commissioner Margrethe Vestager. The pick suggests the next Commission is preparing to dial up its scrutiny of big tech’s data monopolies.

Under the draft list of commissioners-designate, which still needs to be approved in full by the European Parliament, Vestager has been named executive VP overseeing a new portfolio called ‘Europe fit for the digital age’.

But, crucially, she will also retain the competition portfolio — which implies attention on growing Europe’s digital economy will go hand in glove with scrutiny of fairness in ecommerce and ensuring a level playing field vs US platform giants.

“Executive vice-president Margrethe Vestager will lead our work on a Europe fit for the digital age,” said von der Leyen at a press conference to announce her picks. “Digitalization has a huge impact on the way we live, we work, we communicate. In some fields Europe has to catch up — for example in the field of business to consumer but in other fields we’re excellent. Europe is the frontrunner, for example in business to business, when we talk about digital twins of products and procedures.

“We have to make more out of the field of artificial intelligence. We have to make our single market a digital single market. We have to use way more the big data that is out there but we don’t make enough out of it. What innovation and startups are concerned. It’s not only need to know but it’s need to share big data. We have to improve on cyber security. We have to work hard on our technological sovereignty just to name a few issues in these broad topics.

“Margrethe Vestager will co-ordinate the whole agenda. And be the commissioner for competition. She will work together with the commissioner for internal market, innovation and youth, transport, energy, jobs, health and justice.”

If tech giants were hoping for Europe’s next Commission to pay a little less attention to question marks hanging over the fairness of their practices they’re likely to be disappointed as Vestager is set to gain expanded powers and a broader canvas to paint on. The new role clearly positions her to act on the review of competition policy she instigated towards the end of her current mandate — which focused on the challenges posed by digital markets.

Since taking over as Europe’s competition chief back in 2014, Vestager has made a name for herself by blowing the dust off the brief and driving forward on a series of regulatory interventions targeting tech giants including Amazon, Apple and Google . In the latter case this has included opening a series of fresh probes as well as nailing the very long running Google Shopping saga inherited from her predecessor.

The activity of the department under her mandate has clearly catalyzed complainants — creating a pipeline of cases for her to tackle. And just last month Reuters reported she had been preparing an “intensive” handover of work looking into complaints against Google’s job search product to her successor — a handover that won’t now be necessary, assuming the EU parliament gives its backing to von der Leyen’s team.

While the competition commissioner has thus far generated the biggest headlines for the size of antitrust fines she’s handed down — including a record-breaking $5BN fine for Google last year for illegal restrictions attached to Android — her attention on big data holdings as a competition risk is most likely to worry tech giants going forward.

See, for example, the formal investigation of Amazon’s use of merchant data announced this summer for a sign of the direction of travel.

Vestager has also talked publicly about regulating data flows as being a more savvy route to control big tech versus swinging a break up hammer. And while — on the surface — regulating data might sound less radical a remedy than breaking giants like Google and Facebook up, placing hard limits on how data can be used has the potential to effect structural separation via a sort of regulatory keyhole surgery that’s likely to be quicker and implies a precision that may also make it more politically palatable.

That’s important given the ongoing EU-US trade friction kicked up by the Trump administration which is never shy of lashing out, especially at European interventions that seek to address some of the inequalities generated by tech giants — most recently Trump gave France’s digital tax plans a tongue-lashing.

von der Leyen was asked during the press conference whether Vestager might not been seen as a controversial choice given Trump’s views of her activity to date (Europe’s “tax lady” is one of the nicer things he’s said about Vestager). The EU president-elect dismissed the point saying the only thing that matters in assigning Commission portfolios is “quality and excellence”, adding that competition and digital is the perfect combination to make the most of Vestager’s talents.

“Vestager has done an outstanding job as a commissioner for competition,” she went on. “At competition and the issues she’s tackling there are closely linked to the digital sector too. So having her as an executive vice-president for the digital in Europe is absolutely a perfect combination.

“She’ll have this topic as a cross-cutting topic. She’ll have to work on the Digital Single Market. She will work on the fact that we want to use in a better way big data that is out there, that we collect every day — non-personalized data. That we should use way better, in the need for example to share with others for innovation, for startups, for new ideas.

“She will work on the whole topic of cyber security. Which is the more we’re digitalized, the more we’re vulnerable. So there’s a huge field in front of her. And as she’s shown excellence in the Commission portfolio she’ll keep that — the executive vice-presidents have with the DGs muscles to deal with their vast portfolios’ subject they have to deal with.”

In other choices announced today, the current commissioner for Digital Economy and Society, Mariya Gabriel, will be taking up a new portfolio called ‘Innovation and Youth’. And Sylvie Goulard was named as ‘Internal Market’ commissioner, leading on industrial policy and promoting the Digital Single Market, as well as getting responsibility for Defence Industry and Space.

Another executive VP choice, Valdis Dombrovskis, looks likely to be tackling thorny digital taxation issues — with responsibility for co-ordinating the Commission’s work on what’s been dubbed an “Economy that Works for People”, as well as also being commissioner for financial services. 

In prepared remarks on that role, von der Leyen said: We have a unique social market economy. It is the source of our prosperity and social fairness. This is all the more important when we face a twin transition: climate and digital. Valdis Dombrovskis will lead our work to bring together the social and the market in our economy.”

Frans Timmermans, who was previously in the running as a possible candidate for Commission president but lost out to von der Leyen, is another exec VP pick. He’s set to be focused on delivering a European Green Deal and managing climate action policy.

Another familiar face — current justice, consumer and gender affairs commissioner, Věra Jourová — has also been named as an exec VP, gaining responsibility for “Values and Transparency”, a portfolio title which suggests she’ll continue to be involved in EU efforts to combat online disinformation on platforms.

The rest of the Commission portfolio appointments can be found here.

There are 26 picks in all — 27 counting von der Leyen who has already been confirmed as president; one per EU country. The UK has no representation in the next Commission given it is due to leave the bloc on October 31, the day before the new Commission takes up its mandate.

von der Leyen touted the team she presented today as balanced and diverse, including on gender lines as well as geographically to take account of the full span of European Union members.

“It draws on all the strength and talents, men and women, experienced and young, east and west, south and north, a team that is well balanced, a team that brings together diversity of experience and competence,” she said. “I want a Commission that is led with determination, that is clearly focused on the issues at hand — and that provides answers.”

Commissioners elect

“There’s one fundamental that connects this team: We want to bring new impetus to Europe’s democracy,” she added. “This is our joint responsibility. And democracy is more than voting in elections in every five years; it is about having your voice heard. It’s about having been able to participate in the way our society’s built. We gave to address some of the deeper issues in our society that have led to a loss of faith in democracy.”

In a signal of her intention that the new Commission should “walk the talk” on making Europe fit for the digital age she announced that college meetings will be paperless and digital.

On lawmaking, she added that there will be a one-in, one-out policy — with any new laws and regulation supplanting an existing rule in a bid to cut red tape.

The shape of the next Commission remains in draft pending approval by the European Parliament to all the picks. The parliament must vote to accept the entire college of commissioners — a process that’s preceded by hearings of the commissioners-designate in relevant parliamentary committees.

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Disney+ comes to Canada and the Netherlands on Nov. 12, will support nearly all major platforms at launch

Posted by | Android, Apple, apple inc, apple tv, Australia, Canada, chromecast, computing, Disney, e-commerce, espn, Google, Hulu, iOS, iPad, iPhone, Media, Netflix, Netherlands, New Zealand, operating system, playstation, TC, United States | No Comments

Disney+ will have an international launch that begins at the same time as its rollout in the U.S., Disney revealed. The company will be launching its digital streaming service on November 12 in Canada and The Netherlands on November 12, and will be available in Australia and New Zealand the following week. The streaming service will also support virtually every device and operating system from day one.

Disney+ will be available on iOS, Apple TV, Google Chromecast, Android, Android TV, PlayStation 4, Roku and Xbox One at launch, which is pretty much an exhaustive list of everywhere someone might want to watch it, leaving aside some smaller proprietary smart TV systems. That, combined with the day-and-date global markets, should be a clear indicator that Disney wants its service to be available to as many customers as possible, as quickly as possible.

Through Apple’s iPhone, iPad and Apple TV devices, customers will be able to subscribe via in-app purchase. Disney+ will also be fully integrated with Apple’s TV app, which is getting an update in iOS 13 in hopes of becoming even more useful as a central hub for all a user’s video content. The one notable exception on the list of supported devices and platforms is Amazon’s Fire TV, which could change closer to launch depending on negotiations.

In terms of pricing, the service will run $8.99 per month or $89.99 per year in Canada, and €6.99 per month (or €69.99 per year) in the Netherlands. In Australia, it’ll be $8.99 per month or $89.99 per year, and in New Zealand, it’ll be $9.99 and $99.99 per year. All prices are in local currency.

That compares pretty well with the $6.99 per month (or $69.99 yearly) asking price in the U.S., and undercuts the Netflix pricing in those markets, too. This is just the Disney+ service on its own, however, not the combined bundle that includes ESPN Plus and Hulu for $12.99 per month, which is probably more comparable to Netflix in terms of breadth of content offering.

 

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Japan’s mobile payments app PayPay reaches 10 million users

Posted by | Apps, Asia, e-commerce, Finance, india, Japan, Mobile, mobile payment, payments, Paytm, Softbank, SoftBank Group, Vijay Shekhar Sharma, yahoo japan | No Comments

Paytm, India’s biggest mobile payments firm, now has 10 million customers in Japan, the company said as it pushes to expand its reach in international markets. Paytm entered Japan last October after forming a joint venture with SoftBank and Yahoo Japan called PayPay.

In addition to 10 million users, PayPay is now supported by 1 million merchant partners and local stores in Japan, Vijay Shekhar Sharma, founder and CEO of Paytm said Thursday. The mobile payments app has clocked more than 100 million transactions to date in the nation, he claimed. In June, PayPay had 8 million users.

“Thank you India 🇮🇳 for your inspiration and giving us chance to build world class tech…,” he posted in a tweet.

Like in India, cash also dominates much of the daily transactions in Japan. Large medical clinics and supermarkets often refuse to accept plastic cards and instead ask for cash. This encouraged Paytm, which also has presence in Canada, to explore the Japanese market.

And it has the experience, capital and tech chops to achieve it. The mobile payments app has amassed more than 250 million registered users in India. Most of these customers signed up after the Indian government invalidated much of the cash in the nation in late 2016.

PayPay competes with a handful of local players in Japan. Its biggest competition is Line, an instant messaging app that has followed China’s WeChat model to aggressively expand its offerings in recent years.

Like PayPay, Line also has no shortage of money. Earlier this year, it announced a ¥30 billion ($282 million) reward campaign to boost usage of its payments service. Line has more than 80 million users in Japan, 32 million of whom used its payments service as of February this year. There are about 120 million internet users in Japan.

PayPay maintains a ¥10 billion ($94 million) marketing campaign of its own, as part of which customers who make a certain number of transactions and participate in referral programs earn some money. In a statement, PayPay said Thursday that moving forward it “will strive to create a society where people can buy anything through cashless payments in every corner of the country with a safe and secured service for our users.”

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Africa’s top mobile phone seller Transsion to list in Chinese IPO

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Chinese mobile-phone and device maker Transsion will list in an IPO on Shanghai’s STAR Market,  Transsion confirmed to TechCrunch. 

The company—which has a robust Africa sales network—could raise up to 3 billion yuan (or $426 million).

“The company’s listing-related work is running smoothly. The registration application and issuance process is still underway, with the specific timetable yet to be confirmed by the CSRC and Shanghai Stock Exchange,” a spokesperson for Transsion’s Office of the Secretary to the Chairman told TechCrunch via email.

Transsion’s IPO prospectus was downloadable (in Chinese) and its STAR Market listing application available on the Shanghai Stock Exchange’s website.

STAR is the Shanghai Stock Exchange’s new Nasdaq-style board for tech stocks that also went live in July with some 25 companies going public. 

Headquartered in Shenzhen—where African e-commerce unicorn Jumia also has a logistics supply-chain facility—Transsion is a top-seller of smartphones in Africa under its Tecno brand.

The company has a manufacturing facility in Ethiopia and recently expanded its presence in India.

Transsion plans to spend the bulk of its STAR Market raise (1.6 billion yuan or $227 million) on building more phone assembly hubs and around 430 million yuan ($62 million) on research and development,  including a mobile phone R&D center in Shanghai—a company spokesperson said. 

Transsion recently announced a larger commitment to capturing market share in India, including building an industrial park in the country for manufacture of phones to Africa.

The IPO comes after Transsion announced its intent to go public and filed its first docs with the Shanghai Stock Exchange in April. 

Listing on the STAR Market will put Transsion on the freshly minted exchange seen as an extension of Beijing’s ambition to become a hub for high-potential tech startups to raise public capital. Chinese regulators lowered profitability requirements, for the exchange, which means pre-profit ventures can list.

Transsion’s IPO process comes when the company is actually in the black. The firm generated 22.6 billion yuan ($3.29 billion) in revenue in 2018, up from 20 billion yuan from a year earlier. Net profit for the year slid to 654 million yuan, down from 677 million yuan in 2017, according to the firm’s prospectus.

Transsion sold 124 million phones globally in 2018, per company data. In Africa, Transsion holds 54% of the feature phone market—through its brands Tecno, Infinix, and Itel—and in smartphone sales is second to Samsung and before Huawei, according to International Data Corporation stats.

Transsion has R&D centers in Nigeria and Kenya and its sales network in Africa includes retail shops in Nigeria, Kenya, Tanzania, Ethiopia and Egypt. The company also attracted attention for being one of the first known device makers to optimize its camera phones for African complexions.

On a recent research trip to Addis Ababa, TechCrunch learned the top entry-level Tecno smartphone was the W3, which lists for 3600 Ethiopian Birr, or roughly $125.

In Africa, Transsion’s ability to build market share and find a sweet spot with consumers on price and features gives it prominence in the continent’s booming tech scene.

Africa already has strong mobile-phone penetration, but continues to undergo a conversion from basic USSD phones, to feature phones, to smartphones.

Smartphone adoption on the continent is low, at 34 percent, but expected to grow to 67 percent by 2025, according to GSMA.

This, added to an improving internet profile, is key to Africa’s tech scene. In top markets for VC and startup origination—such as Nigeria, Kenya, and South Africa—thousands of ventures are building business models around mobile-based products and digital applications.

If Transsion’s IPO enables higher smartphone conversion on the continent that could enable more startups and startup opportunities—from fintech to VOD apps.

Another interesting facet to Transsion’s IPO is its potential to create greater influence from China in African tech, in particular if the Shenzhen company moves strongly toward venture investing.

Comparatively, China’s engagement with African startups has been light compared to China’s deal-making on infrastructure and commodities—further boosted in recent years as Beijing pushes its Belt and Road plan.

Transsion’s IPO move is the second recent event—after Chinese owned Opera’s big venture spending in Nigeria—to reflect greater Chinese influence and investment in the continent’s digital scene.

So in coming years, China could be less known for building roads, bridges, and buildings in Africa and more for selling smartphones and providing VC for African startups.

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Amazon Spark, the retailer’s two-year-old Instagram competitor, has shut down

Posted by | Amazon, amazon spark, e-commerce, eCommerce, instagram, Mobile, online shopping, product discovery, Social | No Comments

Amazon’s two-year-old Instagram competitor, Amazon Spark, is no more.

Hoping to capitalize on the social shopping trend and tap into the power of online influencers, Amazon in 2017 launched its own take on Instagram with a shoppable feed of stories and photos aimed at Prime members. The experiment known as Amazon Spark has now come to an end. However, the learnings from Spark and Amazon’s discovery tool Interesting Finds are being blended into a new social-inspired product, #FindItOnAmazon.

Amazon Spark had been a fairly bland service, if truth be told. Unlike on Instagram, where people follow their friend, interests, brands like they like, and people they find engaging or inspiring, Spark was focused on the shopping and the sale. While it tried to mock the Instagram aesthetic at times with fashion inspiration images or highly posed travel photos, it lacked Instagram’s broader appeal. Your friends weren’t there and there weren’t any Instagram Stories, for example. Everything felt too transactional.

Amazon declined to comment on the apparent shutdown of Spark, but the service is gone from the website and app.

The URL amazon.com/spark, meanwhile, redirects to the new #FoundItOnAmazon site — a site which also greatly resembles another Amazon product discovery tool, Interesting Finds.

Interesting Finds has been around since 2016, offering consumers a way to browse an almost Pinterest-like board of products across a number of categories. It features curated “shops” focused on niche themes, like a “Daily Carry” shop for toteable items, a “Mid Century” shop filled with furniture and décor, a shop for “Star Wars” fans, one for someone who loves the color pink, and so on. Interesting Finds later added a layer of personalization with the introduction of a My Mix shop filled with recommendations tailored to your interactions and likes.

The Interesting Finds site had a modern, clean look-and-feel that made it a more pleasurable way to browse Amazon’s products. Products photos appeared on white backgrounds while the clutter of a traditional product detail page was removed.

We understand from people familiar with the products that Interesting Finds is not shutting down as Spark has. But the new #FoundItOnAmazon site will take inspiration from what worked with Interesting Finds and Spark to turn it into a new shopping discovery tool.

Interesting Finds covers a wide range of categories, but #FoundItOnAmazon will focus more directly on fashion and home décor. Similar to Interesting Finds, you can heart to favorites items and revisit them later.

The #FoundItOnAmazon site is very new and isn’t currently appearing for all Amazon customers at this time. If you have it, the amazon.com/spark URL will take you there.

Though Amazon won’t talk about why its Instagram experiment is ending, it’s not too hard to make some guesses. Beyond its lack of originality and transactional nature, Instagram itself has grown into a far more formidable competitor since Spark first launched.

Last fall, Instagram fully embraced its shoppable nature with the introduction of shopping features across its app that let people more easily discover products from Instagram photos. It also added a new shopping channel and in March, Instagram launched its own in-app checkout option to turn product inspiration into actual conversions. It was certainly a big move into Amazon territory. And while that led to headlines about Instagram as the future of shopping, it’s not going to upset Amazon’s overall dominance any time soon.

In addition to the shifting competitive landscape, Spark’s primary stakeholder, Amazon VP of Consumer Engagement Chee Chew departed at the beginning of 2019 for Twilio. While at Amazon, Chew was heavily invested in Spark’s success and product managers would even tie their own efforts to Spark in order to win his favor, sources said.

For example, Amazon’s notifications section had been changed to include updates from Spark. And Spark used to sit a swipe away from the main navigation menu on mobile.

Following Spark’s closure, Amazon’s navigation has once again been simplified. It’s now a clutter-free hamburger menu. Meanwhile, Amazon’s notifications section no longer includes Spark updates — only alerts about orders, shipments, and personalized recommendations.

In addition, it’s likely that Spark wasn’t well adopted. Just 10,000 Amazon customers used it during its first 24 hours, we heard. With Chew’s departure, Spark lost its driving force. No one needed to curry favor by paying it attention, which may have also helped contribute to its shuttering.

6/14/19, 10:20 PM ET: Updated with further context after publication.

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