Monthly Archives: October 2020

News: Mobile by Peak Design is a new, complete mobile mounting solution for everyday convenience

After a steady stream of successful product launches and Kickstarter campaigns, Peak Design is back with a new one – Mobile by Peak Design. The startup that created a rich ecosystem of photography and packing gear is tackling mobile devices next, and has devices a clever interconnect system that seems to have anticipated Apple’s new

After a steady stream of successful product launches and Kickstarter campaigns, Peak Design is back with a new one – Mobile by Peak Design. The startup that created a rich ecosystem of photography and packing gear is tackling mobile devices next, and has devices a clever interconnect system that seems to have anticipated Apple’s new MagSafe magnetic phone accessory scheme – but that’s designed for all smartphones and mobile devices.

Similar to Peak Design’s Capture, Anchor and mounting plate system, Mobile by Peak Design offers a way to connect smartphones to all kinds of accessories, including tripods, car mounts, charging stands, bike handlebars and much more. The system is entered around what Peak calls its “SlimLink” connector, which is a clever combo magnetic and physical mounting receiver that you can attach to your phone either with dedicated cases, or a universal sticky-backed accessory. SlimLink then works with both soft-lock and hard-lock accessories, which use either magnets alone (soft) or magnets combined with physical catchments (hard) for varying degrees of stable connection with a line of mounts.

Peak Design is launching on Kickstarter with a crowdfunding campaign, but the product is already designed and produced to a high level of quality. It sent out media samples of a range of products in the Mobile lineup, including a SlimLink universal phone mount, a handlebar mount, the folding tripod, two magnetic/stick-backed universal mounting pads, and an in-car dashboard mount.

I’ve been using these for the past couple of weeks and have found them to be incredibly versatile and convenient. Peak also supplied an iPhone 11 Pro case, but since I’m using an iPhone 11 Pro Max, I just affixed the 3M-backed universal plate directly to my phone using the included sizing and alignment guide. The attachment is incredibly secure, and doesn’t add very much thickness to your phone at all (it basically provides just enough clearance that the iPhone 11 Pro’s camera bump barely clears table surfaces).

The magnetic connection between it and the ‘soft-lock’ mounts is strong enough that I’m never worried about them coming loose – I’ve used the general purpose magnetic mounts on my fridge often, and the phone hasn’t moved. The bike mount, with its additional physical prongs, is rock solid while actually biking around, and the arm on the mount puts the phone is a great position for acting as a navigation device while biking around, in both portrait and landscape orientations.

Peak has really outdone itself with the design of this system, but that is maybe most true when it comes to the tripod. The clever, three-legged folding design is tiny – smaller overall footprint than a credit card, though a bit thicker – and it’s amazing to be able to carry this everywhere in a pocket and have a stable platform for taking time-lapse photos. You can adjust its stability using the included Allen key, too.

The car mount has an adhesive backing for sticking to your dashboard, and fits in the recessed SlimLink slot on the phone mount/case without physically catching. It’s stable and secure in testing, and best of all, Peak has made the adjustable ball that lets you orient your phone just the right amount of stiff that you can move it but it doesn’t require any additional tightening. My one complaint thus far with the universal mount has been that it isn’t compatible with my Nomad Base Station Pro charger, though Peak says it’s testing the accessory with wireless chargers and will advise as to compatibility in future. The Peak Everyday phone case, meanwhile, is compatible with many Qi chargers.

Peak says these designs are subject to change, and of course, MagSafe was a surprise to the company just as it was to the rest of the world. Peak still plans to create iPhone 12 cases for the range, and says that all of its soft-locking accessories will also work with both Apple MagSafe phones, as well as MagSafe cases. Apple MagSafe accessories, like the wallet, will also likewise attach to MagSafe phones.

This could’ve been one of those moments where Apple announces something that renders a competing product obsolete before it even gets to market, but Peak’s Mobile system design actually makes them complimentary – and provides very similar benefits to phones and devices that otherwise would’ve have been able to take advantage of what MagSafe offers.

The Kickstarter campaign launches today, and Peak believes it will be able to ship the Mobile system cases and accessories starting in Spring 2021.

News: Equity Monday: Three neat venture rounds, and Alibaba’s latest

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines. This is Equity Monday, our weekly kickoff that tracks the latest big news, chats about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines.

This is Equity Monday, our weekly kickoff that tracks the latest big news, chats about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here and myself here — and don’t forget to check out last Friday’s episode.

  • American equities are set to rise, which is good news for the startup-VC world as it means that the current up-cycle will continue. But the good public market is not landing evenly, as Europe sees its VC-backed IPO tally lag the rest of the world.
  • The biggest recent news stories in tech and venture were Alibaba’s enormous Sun Art deal that echoes the Amazon-Whole Foods deal at first blush, and SpaceX’s latest success. The quiet weekend could herald the return of a slower, holiday news cycle as we close in on November.

On the funding front, we found three super cool startups:

  • AiFi raised $14.5 million in a round that Crunchbase News covered. Autonomous, checkout-free stores? Count us in.
  • Lawmatics raised a $2.5 million Seed round. The startup does vertical SaaS (CRM, marketing) for lawyers. That just sounds lucrative.
  • And then there was Chiper, which put together a $12 million round to help build out its ecommerce service in Latin America. Investors Monashees, Kaszek Ventures, and WIND Ventures put the money up.

And to close we took a look at some Q3 2020 data from CBInsights and Crunchbase News.

That’s all we got. The show is back in just a few days. Hugs!

Equity drops every Monday at 7:00 a.m. PT and Thursday afternoon as fast as we can get it out, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

News: Facebook introduces a new Messenger API with support for Instagram

Following the updates to Instagram and Messenger that delivered cross-app communication and other features, Facebook today announced its Messenger API has also been updated to allow businesses to manage their communications across Instagram, in addition to Messenger . Before today, businesses could only respond to customer inquiries through the Instagram app and through Facebook’s unified

Following the updates to Instagram and Messenger that delivered cross-app communication and other features, Facebook today announced its Messenger API has also been updated to allow businesses to manage their communications across Instagram, in addition to Messenger .

Before today, businesses could only respond to customer inquiries through the Instagram app and through Facebook’s unified business inbox. This could work for some smaller businesses, but for larger brands with a high volume of messages, it could be difficult to be efficient this way.

The update means businesses will be able to now also integrate Instagram messaging into the applications and workflows they’re already using in-house to manage their Facebook conversations. Specifically, they’ll be able to use rich media — like photos, URL links and more — and work with developers to integrate the API with their product and customer databases to provide the same experience on Instagram as they do today on Messenger.

For example, a business with a CRM system integration would be able to view the customer loyalty information and take that into account when they respond.

Businesses using the API can also manage their Instagram presence, including their Profile, Shops and Stories, Facebook says.

Image Credits: Facebook

The change comes at a time when Instagram is pushing Shopping as a core activity on Instagram, and follows the launch of Instagram shops and visual changes to the app to highlight shopping features.

According to Facebook, daily conversations between people and businesses on Messenger and Instagram combined grew over 40% over the last year.

With the launch of the new API, Facebook is also introducing new features on Instagram that will allow businesses to respond immediately to common questions using automation, while still offering to connect customers to live support, if needed. An alpha test with partner Clarabridge on this feature indicated that client brands improved response rates on Instagram by up to 55% by managing DMs through its platform.

The updated Messenger API is launching into beta testing with businesses like Adidas, Amaro, Glossier, H&M, MagazineLuiza, Michael Kors, Nars, Sephora and TechStyle Fashion Group, among other consumer brands. The beta is also open to a limited number of developer partners. Today, other businesses and developers can join a waitlist to request access to the API post-beta.

Cross-app communication, a key part of the recent Instagram and Messenger update, is not available in the API at launch, however. For now, the messages will appear a brand’s Messenger or Instagram tab depending on where their customers are messaging from. However, Facebook confirmed it plans to “eventually” bring cross-app communication to businesses and developers in a later update.

News: Google Cloud launches Lending DocAI, its first dedicated mortgage industry tool

Google Cloud today announced the launch of Lending DocAI, its first dedicated service for the mortgage industry. The tool, which is now in preview, is meant to help mortgage companies speed up the process of evaluating a borrower’s income and asset documents, using specialized machine learning models to automate routine document reviews. Some of this

Google Cloud today announced the launch of Lending DocAI, its first dedicated service for the mortgage industry. The tool, which is now in preview, is meant to help mortgage companies speed up the process of evaluating a borrower’s income and asset documents, using specialized machine learning models to automate routine document reviews.

Some of this may sound familiar, because, with Document AI, Google Cloud already offers a more general tool for performing OCR over complex documents and then extracting data from those. Lending DocAI is essentially the first vertically specialized Google Cloud service to use this technology.

“Our goal is to give you the right tools to help borrowers and lenders have a better experience and to close mortgage loans in shorter time frames, benefiting all parties involved,” writes Google product manager Sudheera Vanguri. “With Lending DocAI, you will reduce mortgage processing time and costs, streamline data capture, and support regulatory and compliance requirements.”

Google argues that its tool will have speed up the mortgage workflow process and improve the experience for borrowers, too. If you’ve ever gone through the mortgage process, you know how much time it takes to compile all of the necessary documents and how much lag there is before your bank or mortgage broker tells you that everything is in order (or not).

In addition, Google Cloud also argues that this technology can help “reduce risk and enhance compliance posture by leveraging a technology stack (e.g. data access controls and transparency, data residency, customer managed encryption keys) that reduces the risk of implementing an AI strategy.”

In many ways, this new product is a good example for Google Cloud’s current strategy under the leadership of its CEO Thomas Kurian. While it continues to develop a plethora of general services for developers at every level, it now also bundles these together to sell as complete solutions to enterprises in various verticals. That’s where Google Cloud believes it can generate the most benefit for these companies — and hence generate the most revenue. With industry solutions for retailers, telcos, gaming companies and more — and industry partners to help them get up to speed — Kurian and his team believe that they can offer solutions while its competitors focus on offering tools. So far, that strategy seems to be working out alright, with Google Cloud’s revenue growing over 43 percent in the last quarter.

News: Singapore tech-based real estate agency Propseller raises $1.2 million seed round

Propseller, a Singapore-based real estate agency that combines a tech platform with in-house agents to close transactions more quickly, announced today it has raised $1.2 million in seed funding. The round included investment from Iterative; Hustle Fund; XA Network; Rapzo Capital; Lazada co-founder Stein Jakabo; and Dot Property founder Ben Neve. Propseller also said “three

Propseller, a Singapore-based real estate agency that combines a tech platform with in-house agents to close transactions more quickly, announced today it has raised $1.2 million in seed funding.

The round included investment from Iterative; Hustle Fund; XA Network; Rapzo Capital; Lazada co-founder Stein Jakabo; and Dot Property founder Ben Neve. Propseller also said “three undisclosed highly strategic investors” and returning private investors participated.

Propseller’s last funding announcement was in December 2018, when it raised SGD $1 million (about $737,000) in seed funding.

Founded in 2018 and launched the next year, Propseller says its technology platform enables transactions to close more quickly, helping with tasks like property valuations, and reduces standard commission fees to 1% from 2% because the startup’s in-house agents are able to finish more transactions in less time.

The company claims it is currently handling about SGD $75 million worth of properties each year. During the pandemic, tech-enabled services like online dashboards and virtual viewings have allowed Propseller’s agents to continue working with clients.

Despite the economic impact of COVID-19, Singapore’s real estate market is expected to recover relatively quickly, especially the residential sector, because of demand for new condominiums and foreign investment.

Another Singaporean real estate-focused startup that recently raised funding is PropertyGuru. Last month, the property listing platform announced an investment of $220 million from KKR and TPG to expand into new Southast Asian markets. PropertyGuru’s most direct competitor is 99.co, but startups like Propseller, Ohmyhome and Greyloft, which offer agent services combined with tech platforms, all provide an alternative in the Singaporean real estate market.

In a press statement about its investment in Propseller, Iterative partner (and founder of Divvy Homes, a San Francisco-based proptech startup) Brian Ma said, “Worldwide, modern estate agencies are already taking market share at breakneck speeds. In a market like Singapore with high property prices and the need for high quality service, we believe digitalization will be inevitable. We’re excited for Propseller to lead the charge there.”

News: Ready, Set, Raise, an accelerator for women built by women, announces third class

In 2018, Leslie Feinzaig, the founder of Female Founders Alliance, launched a free, equity-free accelerator for women called Ready, Set, Raise. The goal was to provide under-networked female founders the coaching and connections needed to raise money. This year, as funding for female founders drops to 2017 levels, Feinzaig realized why accelerators, hers included, might

In 2018, Leslie Feinzaig, the founder of Female Founders Alliance, launched a free, equity-free accelerator for women called Ready, Set, Raise. The goal was to provide under-networked female founders the coaching and connections needed to raise money.

This year, as funding for female founders drops to 2017 levels, Feinzaig realized why accelerators, hers included, might not work for women as well as they work for men: demo day. A common culminating event in most accelerators, demo day is an event where founders pitch to a room to investors, angels, and journalists with the hope of raising a round and landing some coverage.

“The truth is, you don’t raise a round based on a 5-minute, highly scripted, polished and practiced on-stage pitch,” Feinzaig continued. “You raise it by being able to pitch your startup to any person, at any time, in any context, and get them excited enough to want to participate in your journey.”

So, Feinzaig says the “aha moment” led to Ready, Set, Raise changing its programming, which will run 8-weeks, to be more focused on a “realistic fundraising process” vetted by hundreds of women.

The coronavirus has impacted the way that accelerators work, Y Combinator and Techstars moved to live, virtual programming, which has the opportunity to be more accessible to parents or people who cannot relocate to Palo Alto for three months out of the year. That said, Y Combinator’s latest batch had a drop in diversity, with only 16% of the companies having a founder who identified as female. In the previous batch, nearly 21% of companies had a founder who identified as female.

The drop in access makes Feinzaig’s work even more difficult, and important. This year, as applications rolled in for Ready, Set, Raise, Feinzaig noticed that more mature companies were applying than usual. The detail led to the founder surveying female founders and discovering that women who had the ambition to start a company before the pandemic, are less likely to do so now. Still, she’s optimistic, saying that they saw the “highest caliber of applicants” to her accelerator than ever before.

Today, Ready Set Raise announced its third cohort, including a startup that digitizes retailers which sell outdoor equipment, a marketplace for ethical and legal data exchange, and a digital platform that connects Black women to culturally-aware providers.

Here’s a look at Ready, Set, Raise’s third cohort of startups:

Brightly: Founded by Laura Wittig and Liza Moiseeva, Brightly is a startup that combines commerce, content, and community with the goal of scaling conscious consumerism. It is based in Seattle, WA.

Womp.ai: Founded by Gabriela Trueba, Womp wants to help anyone explore, create, and share 3D. It is based in Brooklyn, NY

FixFake: Founded by Kathryn Harrison and Jason Law, FixFake offers decision support tools to reduce fraud in e-commerce. It is based in Bozeman, MT

tbd health: Founded by Stephanie Estey, Daphne Chen, and Sherwin Lu, tbd health is an at-home, STI screening platform made for women. It is based in New York, NY.

Gearo: Founded by Justine Barone, Gearo digitizes outdoor retailer operations and brings in adventure-seekers as customers. It is based in Denver, CO

Mary Louise Cosmetics: Founded by Akilah Releford, Mary Louise Cosmetics sells natural skincare and personal care products. It is based in Los Angeles, CA

datacy: Founded by CEO Paroma Indilo and Kaleb Wilson, Datacy is a marketplace focused on enabling ethical and legal data exchange. It is based in San Jose, CA.

Health In Her HUE: Founded by Ashlee Wisdom and Eddwina Bright, the company is a digital platform connecting Black women to culturally competent providers. It is based in New York, NY.

The class will begin October 19th. Members will receive coaching from a variety of partners including Cooley LLP, Carta, Grasshopper Bank, Madrona Venture Group, UPS and Zendesk for Startups.

News: Pakistan lifts ban on TikTok

Pakistan Telecommunication Authority said on Monday it has lifted the ban on TikTok, 11 days after the South Asian nation’s telecom authority blocked the popular short video app in the country over problematic videos on the platform. The authority, however, warned that TikTok needs to actively moderate content on its app or else it will

Pakistan Telecommunication Authority said on Monday it has lifted the ban on TikTok, 11 days after the South Asian nation’s telecom authority blocked the popular short video app in the country over problematic videos on the platform. The authority, however, warned that TikTok needs to actively moderate content on its app or else it will be permanently blocked in the nation.

The telecom authority said it was lifting the ban after engaging with TikTok’s senior management, which assured it would moderate content in accordance with “societal norms and the laws of Pakistan.” TikTok has about 20 million monthly active users in Pakistan, the authority said.

TikTok’s senior management team has also ensured that it will block users who show a repeated pattern of uploading “unlawful” content, the telecom authority said in a statement.

“The restoration of TikTok is strictly subject to the condition that the platform will not be used for the spread of vulgarity/indecent content & societal values will not be abused. PTA will be constrained to permanently block the application incase said condition is not fulfilled,” the authority warned.

Pakistan banned TikTok in the nation earlier this month and also after issuing a “final” warning to the app in July. In its warning, Pakistan had expressed serious concerns over some videos that were circulating on the platform. The nation said some videos were “immoral,” “obscene” and “vulgar.”

After the ban, TikTok had assured that it would work harder to moderate content and also offered to invest in the country if the ban were to be lifted.

The ban had also raised concerns with some (via Techmeme), who cautioned that the move was Pakistan’s ongoing attempt to enforce a top down censorship in the nation. Earlier this year, Pakistan unveiled some of the world’s most sweeping rules on internet censorship that would have severely impacted American tech firms operating in the nation. But it later retreated the rules after Facebook, Google and Twitter among other firms threatened to leave the nation.

Neighboring nation India has also banned TikTok, among hundreds of other Chinese apps. In case of India, the ban has been enforced over cybersecurity concerns. Prior to the ban, India was TikTok’s biggest market by users outside of China.

News: SpaceX successfully launches 60 more Starlink satellites, bringing total delivered to orbit to more than 800

SpaceX on Sunday launched another batch of 60 of its internet-beaming Starlink satellites, growing its constellation even further. That makes 835 Starlink satellites launched thus far, though not all of those are operational (some were test satellites that were intentionally decommissioned). The launch, from Florida’s Kennedy Space Center, also included a successful controlled landing and

SpaceX on Sunday launched another batch of 60 of its internet-beaming Starlink satellites, growing its constellation even further. That makes 835 Starlink satellites launched thus far, though not all of those are operational (some were test satellites that were intentionally decommissioned). The launch, from Florida’s Kennedy Space Center, also included a successful controlled landing and recovery of the first stage booster, as well as a semi-successful dual catch of the fairing halves used to protect the cargo during launch.

I say semi-successful because both of SpaceX’s recovery barges actually did catch the fairing halves as they parachuted back down to the surface of the Atlantic Ocean, but one of the nets on the barges gave way during the catch. SpaceX says the recovery crew is fine, but that’s obviously not an ideal outcome. Still, being positioned correctly to catch both fairing halves is definitely a win for the company’s efforts on that aspect of Falcon 9 launch vehicle reusability.

This is another impressive show of SpaceX’s ability to maintain a very fast and frequent pace of launches, which has this year focused mostly on delivering its own Starlink satellites to orbit. The company has already launched almost 300 new Starlink satellites since June, and has plans to launch at least two more batches during the next month, including a tentative launch scheduled for this coming Wednesday.

Starlink is already in the process of being tested internally by SpaceX employees and technicians, and the company is readying for a broader public beta to begin before the end of this year.

News: Instagram’s handling of kids’ data is now being probed in the EU

Facebook’s lead data regulator in Europe has opened another two probes into its business empire — both focused on how the Instagram platform processes children’s information. The action by Ireland’s Data Protection Commission (DPC), reported earlier by the Telegraph, comes more than a year after a US data scientist reported concerns to Instagram that its

Facebook’s lead data regulator in Europe has opened another two probes into its business empire — both focused on how the Instagram platform processes children’s information.

The action by Ireland’s Data Protection Commission (DPC), reported earlier by the Telegraph, comes more than a year after a US data scientist reported concerns to Instagram that its platform was leaking the contact information of minors. David Stier went on to publish details of his investigation last year — saying Instagram had failed to make changes to prevent minors’ data being accessible.

He found that children who changed their Instagram account settings to a business account had their contact info (such as an email address and phone number) displayed unmasked via the platform — arguing that “millions” of children had had their contact information exposed as a result of how Instagram functions.

Facebook disputes Stier’s characterization of the issue — saying it’s always made it clear that contact info is displayed if people choose to switch to a business account on Instagram.

It also does now let people opt out of having their contact info displayed if they switch to a business account.

Nonetheless, its lead EU regulator has now said it’s identified “potential concerns” relating to how Instagram processes children’s data.

Per the Telegraph’s report the regulator opened the dual inquiries late last month in response to claims the platform had put children at risk of grooming or hacking by revealing their contact details. 

The Irish DPC did not say that but did confirm two new statutory inquiries into Facebook’s processing of children’s data on the fully owned Instagram platform in a statement emailed to TechCrunch in which it notes the photo-sharing platform “is used widely by children in Ireland and across Europe”.

“The DPC has been actively monitoring complaints received from individuals in this area and has identified potential concerns in relation to the processing of children’s personal data on Instagram which require further examination,” it writes.

The regulator’s statement specifies that the first inquiry will examine the legal basis Facebook claims for processing children’s data on the Instagram platform, and also whether or not there are adequate safeguards in place.

Europe’s General Data Protection Regulation (GDPR) includes specific provisions related to the processing of children’s information — with a hard cap set at age 13 for kids to be able to consent to their data being processed. The regulation also creates an expectation of baked in safeguards for kids’ data.

“The DPC will set out to establish whether Facebook has a legal basis for the ongoing processing of children’s personal data and if it employs adequate protections and or restrictions on the Instagram platform for such children,” it says of the first inquiry, adding: “This Inquiry will also consider whether Facebook meets its obligations as a data controller with regard to transparency requirements in its provision of Instagram to children.”

The DPC says the second inquiry will focus on the Instagram profile and account settings — looking at “the appropriateness of these settings for children”.

“Amongst other matters, this Inquiry will explore Facebook’s adherence with the requirements in the GDPR in respect to Data Protection by Design and Default and specifically in relation to Facebook’s responsibility to protect the data protection rights of children as vulnerable persons,” it adds.

In a statement responding to the regulator’s action, a Facebook company spokesperson told us:

We’ve always been clear that when people choose to set up a business account on Instagram, the contact information they shared would be publicly displayed. That’s very different to exposing people’s information. We’ve also made several updates to business accounts since the time of Mr. Stier’s mischaracterisation in 2019, and people can now opt out of including their contact information entirely. We’re in close contact with the IDPC and we’re cooperating with their inquiries.

Breaches of the GDPR can attract sanctions of as much as 4% of the global annual turnover of a data controller — which, in the case of Facebook, means any future fine for violating the regulation could run to multi-billions of euros.

That said, Ireland’s regulator now has around 25 open investigations related to multinational tech companies (aka cross-border GDPR cases) — a backlog that continues to attract criticism over the plodding progress of decisions. Which means the Instagram inquiries are joining the back of a very long queue.

Earlier this summer the DPC submitted its first draft decision on a cross-border GDPR case — related to a 2018 Twitter breach — sending it on to the other EU DPAs for review.

That step has led to a further delay, as the other EU regulators did not unanimously back the DPC’s decision — triggering a dispute mechanisms set out in the GDPR.

In separate news, an investigation of Instagram influencers by the UK’s Competition and Markets Authority found the platform is failing to protect consumers from being misled. The BBC reports that the platform will roll out new tools over the next year including a prompt for influencers to confirm whether they have received incentives to promote a product or service before they are able to publish a post, and new algorithms built to spot potential advertising content.

News: Alibaba Group will spend $3.6 billion to take control of Chinese supermarket giant Sun Art

Alibaba Group said today it will spend about $3.6 billion to take a controlling stake in Sun Art, one of China’s largest big-box and supermarket chains. After the transaction is complete, Alibaba Group will own 72% of Sun Art. As in other countries, COVID-19 lockdowns increased demand for online food orders in China, drawing in

Alibaba Group said today it will spend about $3.6 billion to take a controlling stake in Sun Art, one of China’s largest big-box and supermarket chains. After the transaction is complete, Alibaba Group will own 72% of Sun Art.

As in other countries, COVID-19 lockdowns increased demand for online food orders in China, drawing in shoppers who had still preferred to buy groceries in person. Even though lockdowns have lifted, many have continued to purchase online. Alibaba’s new investment in Sun Art will be made by acquiring 70.94% of equity interest in A-RT Retail Holdings from France-based Auchan Retail International. A-RT Retail holds about 51% of the equity interest in Sun Art.

After the deal closes, Alibaba will consolidate Sun Art in its financial statements. Sun Art chief executive officer Peter Huang has also been named its new chairman.

Alibaba first invested in Sun Art back in 2017, spending about $2.88 billion to pick up a 36.16% share in the chain, whose brands include RT-Mart, as part of its “New Retail” strategy.

“New Retail” aims to blur the lines between online and offline commerce through steps like turning physical stores in pickup points for online orders, integrating supply chains and enabling shoppers to use the same digital payment methods on its e-commerce platforms and in brick-and-mortar stores.

All of Sun Art’s 484 physical retail locations in China are now integrated into Alibaba’s Taoxianda and Tmall Supermarket platforms for groceries, as well as Ele.me and Cainiao, its on-demand food demand delivery app and logistics businesses, respectively. For customers, this means faster deliveries and larger selections, while giving Alibaba more sources of data it can use to improve its supply chain and business operations.

Other e-commerce companies are taking a similar approach to integrating offline and online grocery shopping, including Alibaba’s main rival JD, which has similar alliances with supermarket group Yonghui and Walmart.

In press statement, Alibaba chairman and chief executive officer Daniel Zhang said, “As the COVID-19 pandemic is accelerating the digitization of consumer lifestyles and enterprise operations, this commitment to Sun Art serves to strengthen our New Retail vision and serve more consumers with a fully integrated experience.”

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