Monthly Archives: October 2020

News: High-profile startup execs back Indian influencers platform CreatorOS

The advent of low-cost Android smartphones and the world’s cheapest mobile data has paved the way for millions of social media influencers in India to amass a following of tens of millions of users in recent years. These influencers, also known as creators, share their daily vlogs, thoughts on a wide range of issues, and

The advent of low-cost Android smartphones and the world’s cheapest mobile data has paved the way for millions of social media influencers in India to amass a following of tens of millions of users in recent years.

These influencers, also known as creators, share their daily vlogs, thoughts on a wide range of issues, and some engage with big brands to help sell their products to niche, loyal audiences. E-commerce giant Flipkart and scores of several other businesses today work with these influencers.

But India’s ban on TikTok, the Chinese short-video app that reached more than 200 million users in the country, in late June unearthed some of the biggest problems these creators face today: They are too reliant on a handful of platforms, and their work structure is not well organized.

A new startup believes it has built the platform to help creators assume more control over their work. And a number of high-profile entrepreneurs agree.

On Friday, Madhavan Malolan announced CreatorOS, a platform that enables creators to build, manage and grow their businesses. About 1,000 creators including a number of short-film makers, teachers, consultants have already joined the platform, Malolan, who co-founded the startup, formerly known as Socionity, in January this year. Prior to CreatorOS, he worked at a number of firms including Microsoft.

“We believe that these creators will become an entrepreneur in the coming decade. So we are creating tools, connections and infrastructure that they will need to run their digital businesses. Currently, there is a lot of spray and pray happening on the creator’s part. They are producing videos in hopes that they go viral so more people in the industry discover them,” said Malolan in an interview with TechCrunch.

The marquee tool on CreatorOS today is an app-builder that allows creators to build their own apps, push and sell their content in it, and build their own communities. Malolan said CreatorOS has overly reduced the efforts that need to go into building an app to simply drag and drop.

The startup said today it has also raised $500,000 from a clutch of high-profile names. Some of the angel investors include Phanindra Sama (founder and former chief executive of online ticket booking platform RedBus.in), Gaurav Munjal (co-founder and chief executive of online learning platform Unacademy), Kalyan Krishnamurthy (chief executive of Flipkart Group), Sujeet Kumar (co-founder of business-to-business marketplace Udaan), Vidit Aatrey (co-founder and chief executive of social e-commerce Meesho), Vivekananda Hallekere (co-founder and chief executive of mobility firm Bounce), and Alvin Tse (GM of Xiaomi Indonesia).

Malolan said that the trust that so many established entrepreneurs showed in CreatorOS convinced him that he did not need to engage with VC firms yet and instead put the entire focus on serving creators. He said the ban on TikTok and how so many startups are trying to scale their short-video apps has created an immense opportunity for CreatorOS.

The startup expects to have more than 5,000 creators on its platform by the end of the year. It is working with creators to understand and build more features that would benefit them, said Malolan.

News: Devialet announces wireless earbuds

High-end speaker manufacturer Devialet is launching its first pair of earbuds called Devialet Gemini. The in-ear earbuds feature active noise canceling and cost £279 in the U.K. — they will be available in the coming weeks. The Devialet Gemini are completely wireless, which means that there’s no cord between each earbud, like on Apple’s AirPods.

High-end speaker manufacturer Devialet is launching its first pair of earbuds called Devialet Gemini. The in-ear earbuds feature active noise canceling and cost £279 in the U.K. — they will be available in the coming weeks.

The Devialet Gemini are completely wireless, which means that there’s no cord between each earbud, like on Apple’s AirPods. The company has developed three new patents for the product.

They feature cascading decompression chambers, which means that they should stick in your ears and provide adequate pressure. In-ear earbuds require a good seal.

Image Credits: Devialet

There are two microphones in each earbud for the active noise cancelation feature and a dedicated microphone for calls and other voice interactions. Like on the AirPods Pro, there are multiple ANC modes. You can remove background noise altogether or activate transparency modes so that you can hear what’s happening around you.

You can choose between three levels of ANC and two levels of transparency mode. The company is releasing a mobile app so that you can control those settings. There’s also a touch button at the rear of the earbuds that you can use to control music playback, noise cancelation or voice assistants.

The earbuds automatically adjusts the audio signal when the earbud moves. It uses a microphone to detect a change in frequency. The app can also tell you if you’re using the right tip for your ear.

The company promises 8 hours of battery life without ANC and 6 hours with ANC activated. The case provides 3.5 charges and works with wireless chargers using the Qi standard or a USB-C cable.

Image Credits: Devialet

News: Hong Kong logistics unicorn Lalamove unveils foray into the US

Lalamove, an on-demand logistics service active in China, Southeast Asia, and Latin America, has officially entered the U.S. seven years after launch. As the COVID-19 pandemic keeps millions of Americans home, Hong Kong-based Lalamove believes it can seize the growing demand for delivery services in the country. It makes its debut in the Dallas Fort-Worth area,

Lalamove, an on-demand logistics service active in China, Southeast Asia, and Latin America, has officially entered the U.S. seven years after launch.

As the COVID-19 pandemic keeps millions of Americans home, Hong Kong-based Lalamove believes it can seize the growing demand for delivery services in the country. It makes its debut in the Dallas Fort-Worth area, a major hub for distribution and logistics in the U.S. In days the service will launch in Chicago and Houston.

The startup was one of the first in Hong Kong to hit the $1 billion unicorn valuation mark alongside its archrival GoGoVan. Its business is multifold and highly localized, but essentially it works as an Uber for businesses and individuals that need to move goods within the city.

In China, where it’s known as Huolala (货拉拉), it primarily serves as a broker between shippers who need to send cargo and a network of truck drivers. In Southeast Asia, the business functions similarly with the addition of food delivery for restaurants, a crowded and cash-burning space. In the U.S., its fleet of sedans, SUVs and pickup trucks are available 24/7, allowing it to target customers spanning catering, retail, e-commerce, manufacturing and construction, with fees starting at $8.90.

“Delivery is essential, especially during the pandemic. But many local businesses don’t have or cannot afford in-house fleets, so we’re excited to work with businesses in the Dallas Fort-Worth area to provide same-day, on-demand delivery services to their customers,” said Blake Larson, international managing director at Lalamove and formerly co-founder of Rocket Internet’s Asia-focused e-hailing startup Easy Taxi.

Like GoGoVan, Lalamove was founded by a Hong Kong entrepreneur who was educated in the U.S. Both companies have scored fundings from heavyweight institutions from China and elsewhere.

Lalamove’s investors included Hillhouse Capital, Sequoia Capital China and Xiaomi founder’s Shunwei Capital. Through a merger with China’s 58 Suyun, GoGoVan counts Tencent, Alibaba, KKR and New Horizon Capital amongst its backers.

The Hong Kong startup’s global expansion comes at a time when TikTok stumbles in the U.S. due to its links to China. In the logistics startup’s case, a Chinese team operates the Chinese division Huolala, while separate international teams manage the overseas segments of Lalamove, TechCrunch understands. The core of TikTok’s challenge in the U.S. is the video app’s dependence on its Chinese parent ByteDance’s technological capabilities.

To date, Lalamove has verified and onboarded more than 500 partner drivers in Dallas Fort-Worth, with plans to add another 500 in the area by the end of this year. It’s also hiring for its regional operational office at a time when the U.S. is struck by widespread virus-induced layoffs, furloughs and slowdown in hiring.

Lalamove claims it has to date matched more than 7 million users with a pool of over 700,000 delivery partners in 22 markets around the world.

News: Amid a boom in SPACs, few women investors

If you’ve been following the SPAC boom, you may have noticed something about these blank-check vehicles that are springing up left and right in order to take public privately held companies. They are being organized mostly by men. It’s not surprising, given the relative dearth of women in senior financial positions in banking and the

If you’ve been following the SPAC boom, you may have noticed something about these blank-check vehicles that are springing up left and right in order to take public privately held companies. They are being organized mostly by men.

It’s not surprising, given the relative dearth of women in senior financial positions in banking and the venture industry. But it also begs the question of whether women, already hustling to overcome a wealth gap, could be left behind if the trend gains momentum.

Consider that studies have shown women investors are are twice as likely to invest in startups with at least one female founder, and more than three times as likely to invest in startups with female CEOs. It’s not a huge leap to imagine that women-led SPACs might also be more inclined to identify women-led companies with which to merge and take public.

More, the SPAC sponsors themselves are reaping financial rewards. In return for sponsoring a SPAC in its pre-IPO stage, sponsors typically receive 25% of the SPACs founder shares, which can mean a lot of money in a short amount of time, given that SPACs typically aim to merge with a target company in two years or less. In fact, even if the SPAC performs terribly — say the company with which it merges is later accused of fraud — those sponsors get paid.

Eventbrite cofounder Kevin Hartz, who is overseeing a $200 million SPAC, explained it to us in August this way: “On a $200 million SPAC, there’s a $50 million ‘promote’ that is earned.” But “if that company doesn’t perform and, say, drops in half over a year or 18-month period, then the shares are still worth $25 million. (Hartz himself called this guaranteed payout “egregious,” though he and his partner in the SPAC, Troy Steckenrider, didn’t structure their SPAC any differently, saying that as a first-time SPAC sponsor, they wanted to make sure that the investment community understood their offering.)

Women aren’t entirely unaccounted for in the current SPAC craze.

Thanks to a state law passed in California in 2018 that mandates that all publicly traded companies with headquarters in the state include at least one woman on their boards of directors, nearly all SPACs based in California have a female director, as reported earlier by Axios.

In the last week, too, at least three SPACs to register with the SEC have been launched exclusively or in part by sponsors who are women. Hope Taiz, a New York-based investor who began her investment banking career first as a M&A analyst and then as an associate at Drexel Burnham Lambert, registered plans this week with the SEC to raise a $300 million blank-check company called Aequi Acquisition.

Northern Star Acquisition, a consumer-focused SPAC led by magazine vet Joanna Coles and New York Islanders co-owner Jonathan Ledecky, meanwhile filed for a $300 million IPO last week, and Climate Change Crisis Real Impact I Acquisition, a SPAC focused on climate technology, raised $200 million in an IPO. The blank check company is led by Mary Powell, the former CEO of Green Mountain Power, and David Crane, a former CEO of the competitive energy supplier NRG Energy.

Betsy Cohen, a founder and former CEO of the financial services company Bancorp has established four fintech-related shell firms, in fact, taking public the newest of these vehicles, a $750 million SPAC, just last month.

As an interesting aside, the SPAC programs of both Goldman Sachs and Jefferies are led by women (Olympia McNerney and Tina Pappas, respectively).

In fact, some might wonder — reasonably — if it isn’t a little early to worry about women missing out on this apparent gold rush. After all, while 133 SPACs have raised more than $50 billion in proceeds this year at last count, the number of tech investors who’ve organized them remains very small, if exclusively male.

Among the only investors to jump into the pool to date are Chamath Palihapitiya of Social Capital (who has dozens of SPACs in mind); Hartz and Steckenrider; entrepreneur-investors Reid Hoffman and Mark Pincus, Ribbit Capital’s Mickey Malka; former Uber executive Emil Michael; and the founders of FirstMark Capital.

Still, with the apparent blessing of well-regarded investors, including Benchmark’s Bill Gurley, SPACs seem poised to explode in popularity. If they do, it will be interesting to see if more women, including in venture capital, take advantage of them to get more privately held companies into the public market.

A number of top women VCs with whom we’ve talked say they’re following the action and weighing how to participate. One such prominent investor told us she’s been researching under what circumstances it makes sense for VC firms to engage in a SPAC’s origination.

Others may well gain exposure first to SPACs through their portfolio companies. Dana Grayson of Construct Capital, for example, led an early investment in the 3D printing company Desktop Metal — which is going public through a SPAC-led deal —  while a partner the firm NEA. At TechCrunch’s recent Disrupt event, Grayson, speaking about Desktop Metal, called SPACs a “great new viable alternative for companies.”

With “most banking things, SPACs skew heavily male,” observes Kristi Marvin, a former investment banker who now runs the data site SPACInsider. It’s not time to panic yet, however, she suggests. For one thing, the SPAC market is on the verge of overheating.

“You have 10 deals trying to price in the same day, and investors are tapped out.”

SPACs also require a learning curve that some underestimate. “It’s why you see hedge funds and PE firms more involved in SPACs; they have infrastructure to do them versus three guys who are facing a ton of work just to do the administrative side of things,” notes Marvin.

As with other financial products, Marvin expects to see more women embrace SPACs over time. That said, she adds, “If in a year or two, it’s still only male VCs who’ve dipped their toe into SPACs, it may be a problem.”

News: Domestic terrorism suspects who plotted to kidnap Whitmer shared plans in Facebook groups

According to details from a shocking new affidavit, the FBI uncovered a group planning “violent action against multiple state governments,” including a detailed plot to capture or kill Michigan Governor Gretchen Whitmer. The domestic terror group organized across Facebook groups, real-life events and at least two encrypted chat apps that the FBI did not name.

According to details from a shocking new affidavit, the FBI uncovered a group planning “violent action against multiple state governments,” including a detailed plot to capture or kill Michigan Governor Gretchen Whitmer. The domestic terror group organized across Facebook groups, real-life events and at least two encrypted chat apps that the FBI did not name.

Whitmer, a Democrat, became a major target of pervasive anti-lockdown sentiment on the political right earlier this year when states imposed restrictions to slow the spread of the coronavirus. According to the affidavit, at a June in-person meeting, members of the group “talked about murdering ‘tyrants’ or ‘taking’ a sitting governor.”

Facebook says it played a “proactive” role in the FBI investigation, first reaching out to law enforcement six months ago. The FBI said it became aware of the activity through social media and also relied on an informant to collect information from within the group.

“We remove content, disable accounts and immediately report to law enforcement when there is a credible threat of imminent harm to people or public safety,” a Facebook spokesperson told TechCrunch. “We proactively reached out and cooperated with the FBI early in this ongoing investigation.”

The group sought to grow its numbers, contacting a Michigan-based militia group known as the Wolverine Watchmen that shared overlapping interests. Facebook removed the Wolverine Watchmen group from its platform in June when it purged a number of groups connected to the anti-government boogaloo movement.

“Today we are designating a violent US-based anti-government network as a dangerous organization and banning it from our platform,” Facebook wrote at the time, drawing a distinction between violent boogaloo groups and the “loosely-affiliated” boogaloo movement.

TechCrunch asked Facebook if the individuals connected with the Michigan militia through Facebook groups but the company did not provide an answer to that question.

Adam Fox, one of the group’s alleged organizers, livestreamed to a private Facebook group earlier this year, complaining that Michigan’s restrictions were keeping gyms closed. In the video, Fox “referred to Governor Whitmer as ‘this tyrant bitch,’ and stated, ‘I don’t know, boys, we gotta do something.’”

In April, Trump cheered on protests against those measures in Virginia, Minnesota and Michigan, three states with Democratic governors. Many of these early events were organized on Facebook, but anti-Whitmer sentiment quickly became ubiquitous on the right across social networks and traditional media.

By July, the group considered attacking a Michigan State Police location but landed on abducting Whitmer from her private vacation home or governor’s summer residence. The same day that decision was made, Fox wrote on a private Facebook page “‘We about to be busy ladies and gentlemen . . . This is where the Patriot shows up. Sacrifices his time, money, blood sweat and tears . . . it starts now so get fucking prepared!!”

The group alternated between planning to kidnap Whitmer for a private “trial” and killing her on sight. Over the course of the coming months, they conducted surveillance of Whitmer’s vacation home, collected supplies and planned detailed logistics for the kidnapping plot, including the idea of blowing up a nearby bridge to divert police attention. The group discussed those detailed plans in an encrypted chat.

According to the affidavit, “On several occasions, FOX has expressed his intention and desire to kidnap Governor Whitmer before November, 3, 2020, the date of the national election.”

The affidavit also details some of the training exercises the plot’s members engaged in with militias in Wisconsin and Michigan, where they practiced making IEDs “using black powder, balloons, a fuse, and BBs for shrapnel” and conducted firearm and combat training drills. They shared photos and videos of their techniques through “Facebook discussions,” according to the affidavit.

A shift at Facebook

Facebook’s attitude toward some forms of extremist activity changed radically in recent months. While armed political groups had long been flourishing on the platform, the company cracked down on what it calls “militarized social movements” in August. Just this week, Facebook announced both a broader ban on the pro-Trump conspiracy known as QAnon and a new policy for voter intimidation efforts that use militaristic language.

When asked about if the terror plot had an impact on the company’s recent spate of surprising policy changes, Facebook did not provide a direct response. It’s also not clear if the domestic terror plot used Facebook groups to recruit and connect online or just to communicate among members who already knew each other in real life.

Researchers who study extremism have long expressed concerns that Facebook’s algorithmic recommendations, particularly the groups it designed to connect like-minded people, can push users toward dangerous ideas — and dangerous behavior.

Militias and other kinds of domestic extremist groups have increasingly leaned on Facebook for recruitment in recent years. Once members are connected and vetted, often through public groups, they are allowed into an inner circle, sometimes in the form of a private Facebook group. The Proud Boys, a violent far-right group with ties to white supremacists, were a prominent example of this recruitment strategy.

Users can be ushered into these extremist groups by Facebook’s algorithmic suggestions, which previously appeared in a box next to a group’s activity. For Facebook pages, those suggestions still appear to the side of the main stream of content, directing users toward “related pages.”

Facebook banned the Proud Boys from its platform in late 2018. But groups interested in violence that kept a lower profile have maintained a large presence on the platform well into 2020, including a number of state “patriot” organizations and anti-government boogaloo groups that coordinate firearm and combat trainings through the platform.

In June, Facebook banned a “violent network” of boogaloo groups, but other groups remain, organizing under code words related to the boogaloo movement. One boogaloo page TechCrunch identified calling itself “definitely not boogaloo” was selling “Boogaloo Boys” patches and posting violent memes as recently as this week.

Unfortunately for researchers and reporters tracking this kind of activity, Facebook recently removed the option to see how many members are in a public group at a glance from the search page.

Facebook recently announced a plan to actually expand the reach of its public groups, surfacing them to more users. “Public Group posts may now get more distribution on and off Facebook so that more people can discover and join in on the conversation,” Facebook wrote in the announcement.

News: Daily Crunch: Waymo opens up driverless ride-hailing

Alphabet’s self-driving technology company hits a major milestone, Apple TV+ extends its free subscription period and Affirm files to go public. This is your Daily Crunch for October 8, 2020. The big story: Waymo opens up driverless ride-hailing Waymo hit a major milestone today: It’s offering fully driverless rides to (some) members of the public.

Alphabet’s self-driving technology company hits a major milestone, Apple TV+ extends its free subscription period and Affirm files to go public. This is your Daily Crunch for October 8, 2020.

The big story: Waymo opens up driverless ride-hailing

Waymo hit a major milestone today: It’s offering fully driverless rides to (some) members of the public.

While the Alphabet-owned company has offered plenty of self-driving rides before, they usually came with a human in the driver’s seat for safety. Members of the early rider program who’d signed nondisclosure agreements were able to try out fully driverless rides — but again, they had to sign NDAs first.

Today, the company said members of its more open Waymo One program in Phoenix will be able to go fully driverless, and to take friends and family with them. And over the next few weeks, the program will open up to even more passengers.

The tech giants

Apple is extending some Apple TV+ subs through February 2021 for free — Apple gave away a free year of Apple TV+ to new device purchasers last year; now it’s bumping those subs out to February.

Amazon debuts its first fully electric delivery vehicle, created in partnership with Rivian — The van’s unique features include sensor-based highway driving and traffic assist features.

IBM plans to spin off infrastructure services as a separate $19B business — The company said this will allow it to focus on newer opportunities in hybrid cloud applications and artificial intelligence.

Startups, funding and venture capital

Instacart raises $200M more at a $17.7B valuation — It’s not hard to trace a connection between COVID-19 and Instacart’s business results.

Affirm files confidentially to go public — The news comes after the impending debut was reported in July.

Delivery startup goPuff raises $380M at a $3.9B valuation — GoPuff delivers products like over-the-counter medicine, baby food and alcohol (basically, the stuff you’d buy at a convenience store) in 30 minutes or less.

Advice and analysis from Extra Crunch

Investors, founders report hot market for API startups — Startups that deliver their service via an API are having a moment.

Tech’s role in the COVID-19 response: Assist, don’t reinvent — Speakers at Disrupt explained how technology companies have taken a backseat to frontline workers, rather than attempting to “solve” the issues on their own.

These 3 factors are holding back podcast monetization — Fundamental fixes could unleash the channel’s revenue potential.

(Reminder: Extra Crunch is our subscription membership program, which aims to democratize information about startups. You can sign up here.)

Everything else

General Motors finally gets serious about in-car tech, taps Unreal Engine for next-gen interface — Matt Burns writes that GM’s current crop of in-car user interfaces is among the worst on the market.

Consumers spent a record $28B in apps in Q3, aided by pandemic — According to a new report from App Annie, consumers in the third quarter downloaded 33 billion new apps globally.

US Space Force is getting an immersive space sim training tool built in part by the VFX studio behind ‘The Mandalorian’ — The U.S. Space Force obviously won’t be able to train most of their service people in actual space, so the new arm of America’s defense forces has tasked Slingshot Aerospace to create a VR space sim.

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.

News: No-code is the new blockchain

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast (now on Twitter!), where we unpack the numbers behind the headlines. This week Natasha was on vacation, so Danny and your humble servant had to endeavour alone. She’s back next week, so we’ll be back to full strength as a collective soon enough. But even with

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast (now on Twitter!), where we unpack the numbers behind the headlines.

This week Natasha was on vacation, so Danny and your humble servant had to endeavour alone. She’s back next week, so we’ll be back to full strength as a collective soon enough.

But even with a depleted hosting crew, we had a mountain of news to get through. And to joke about, as Danny was in the mood for a laugh. Here’s the rundown:

That was a lot. We did our best. Hugs and chat with you next week!

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: These tiny sensors can hitch a ride on mothback

Everyone is familiar with carrier pigeons, but what about carrier moths? This research project uses the nocturnal insects as a delivery service for tiny electronic packages that weigh less than a hundredth of an ounce. The system was created by graduate students at the University of Washington and its prolific tiny gadget creator Shyam Gollakota.

Everyone is familiar with carrier pigeons, but what about carrier moths? This research project uses the nocturnal insects as a delivery service for tiny electronic packages that weigh less than a hundredth of an ounce.

The system was created by graduate students at the University of Washington and its prolific tiny gadget creator Shyam Gollakota.

“This is the first time anyone has shown that sensors can be released from tiny drones or insects such as moths, which can traverse through narrow spaces better than any drone and sustain much longer flights,” said Gollakota in a UW news release. He’s made a specialty of demonstrating new capabilities at extremely small scales, such as bee backpacks and super low-power video transmission.

The sensor platform, which you can see below on top of a penny, could be anything from environmental monitoring to a microphone or light-sensing device. The battery could last for years on a power-sipping board like this, so it’s potentially a great match for long-term monitoring of hard-to-reach places.

A tiny sensor sitting on top of a penny.

Image Credits: Mark Stone/University of Washington

A key aspect of the setup is the release system. To keep things lightweight and simple, the little sensor is held on with a tiny magnetic pin. A wireless signal can be sent that creates a current in a coil surrounding the pin, affecting its magnetic field and dropping the gadget.

It’s small enough to be carried quiet easily by a moth — though it must be noted that the hawk moth isn’t exactly the smallest moth of all time; they get up to hummingbird size, as I’ve experienced myself. But it looks as if the tiny device would fit easily on a smaller species as well. Maybe that’s the next experiment.

Cheap, long-lasting sensors carried to every corner of an ecosystem by moths (or other insects) could produce very interesting data for those who study those ecosystems. Sure, you could also use it to sneak a mic into a top secret area, but I’m sure no one would try that.

The research, funded by the National Science Foundation, was presented at Mobicom 2020.

News: Waymo and TuSimple autonomous trucking leaders on the difficulty of building a highway-safe AI

TuSimple and Waymo are in the lead in the emerging sector of autonomous trucking; TuSimple founder Xiaodi Hou and Waymo trucking head Boris Sofman had an in-depth discussion of their industry and the tech they’re building at TC Mobility 2020. Interestingly, while they’re solving for the same problems, they have very different backgrounds and approaches.

TuSimple and Waymo are in the lead in the emerging sector of autonomous trucking; TuSimple founder Xiaodi Hou and Waymo trucking head Boris Sofman had an in-depth discussion of their industry and the tech they’re building at TC Mobility 2020. Interestingly, while they’re solving for the same problems, they have very different backgrounds and approaches.

Hou and Sofman started out by talking about why they were pursuing the trucking market in the first place. (Quotes have been lightly edited for clarity.)

“The market is massive; I think in the United States, $700-800 billion a year is spent on the trucking industry. It’s continuing to grow every single year,” said Sofman, who joined Waymo from Anki last year to lead the effort in freight. “And there’s a huge shortage of drivers today, which is only going to increase over the next period of time. It’s just such a clear need. But it’s not going to be overnight — there’s still a really long tail of challenges that you can’t avoid. So the way we talk about it is the things that are hardest are just different.”

“It’s really the cost and reward analysis, thinking about building the operating system,” said Hou. “The cost is the number of features that you develop, and the reward is basically how many miles are you driving — you charge on a per mile basis. From that cost reward analysis, trucking is simply the natural way to go for us. The total number of issues that you need to solve is probably 10 times less, but maybe, you know, five times harder.”

“It’s really hard to quantify those numbers, though,” he concluded, “but you get my point.”

The two also discussed the complexity of creating a perceptual framework good enough to drive with.

“Even if you have perfect knowledge of the world, you have to predict what other objects and agents are going to do in that environment, and then make a decision yourself and the combination knows is very challenging,” said Sofman.

“What’s really helped us is a realization from the car side of the of the company many, many years ago that that in order to help us solve this problem in the easiest way possible, and facilitate the challenges downstream, we had to create our own sensors,” he continued. “And so we have our own lidar, our own radar, our own cameras, and they have incredibly unique properties that were custom designed through five generations of hardware that try to really lean into the most kind of most challenging situations that you just can’t avoid on the road.”

Hou explained that while many autonomous systems are descended from the approaches used in the famous DARPA Grand Challenge 15 years ago, TuSimple’s is a little more anthropomorphic.

“I think I’m heavily influenced by my background, which has a tinge of neuroscience. So I’m always thinking about building a machine that can see and think, as humans do,” he said. “In the DARPA challenge, people’s idea would be: Okay, write a dynamic system equation and solve this equation. For me, I’m trying to answer the question of, how do we reconstruct the world? Which is more about understanding the objects, understanding their attributes, even though some of the attributes may not directly contribute to the entire self-driving system.”

“We’re combining all the different, seemingly useless features together, so that we can reconstruct the so-called ‘qualia’ of the perception of the world,” continued Hou. “By doing that we find we have all the ingredients that we need to do whatever missions that we have.”

The two found themselves in disagreement over the idea that due to the major differences between highway driving and street-level driving, there are essentially two distinct problems to be solved.

Hou was of the opinion that “the overlap is rather small. Human society has declared certain types of rules for driving on the highway, this is a much more regulated system. But for local driving there’s actually no rules for interaction… in fact very different implicit social constructs to drive in different areas of the world. These are things that are very hard to model.”

Sofman, on the other hand, felt that while the problems are different, solving one contributes substantially to solving the other: “If you break up the problem into the many, many building blocks of an AV system, there’s a pretty huge leverage where even if even if you don’t solve the problem 100 percent it takes away 85-90 percent of the complexity. We use the exact same sensors, exact same compute infrastructures, simulation framework, the perception system carries over, very largely, even if we have to retrain some of the models. The core of all of our algorithms are, we’re working to keep them the same.”

You can see the rest of that last exchange in the video above.

News: Tech’s role in the COVID-19 response: Assist, don’t reinvent

The pandemic has affected just about every business in the world, but tech has also geared up to fight back in its own way, as we found out from speakers at Disrupt 2020. But technology has opted to take a back seat to frontline workers and find ways to support them rather than attempt to

The pandemic has affected just about every business in the world, but tech has also geared up to fight back in its own way, as we found out from speakers at Disrupt 2020. But technology has opted to take a back seat to frontline workers and find ways to support them rather than attempt to “solve” the issues at hand.

The founders of tech-forward healthcare startups Color and Carbon Health explained their approach in one panel, emphasizing that the startup mindset is a resilient and adaptable one.

“You’re seeing, I think, the distributed nature of the U.S., where at some point it’s clear that you can’t wait for someone to solve your problem, so people just start jumping in and building the solution themselves,” said Othman Laraki, Color’s CEO.

His company took on the issue of bottlenecks in the COVID-19 testing ecosystem, finding that with a few tweaks Color could contribute a considerable amount.

“We realized that there were several assets that we could bring to bear,” he said. “We decided to build a platform to get around some of the logistical constraints and the supply chain constraints around COVID testing. We did that, got large-scale COVID testing lab online, but also repurposed a lot of our digital platforms for COVID testing … I think we’re doing approximately 75% of all the testing in SF right now.”

Carbon Health CEO Eren Bali noted that companies like theirs are important props at a time when the medical infrastructure of the country buckles under pressure.

“At this point the U.S. doesn’t have the best public health system, but at the same time we have best-in-class private companies who can sometimes operate a lot more efficiently than governments can,” he said. “We also just recently launched a program to help COVID-positive patients get back to health quickly, a rehabilitation program. Because as you know even if you survive it doesn’t mean your body was not affected, there are permanent effects.”

This type of at-home care has become increasingly important, both to take pressure off hospitals and frontline workers and to improve accessibility to resources.

“Sometimes the cost of care is a lesser problem compared to the access,” said Laraki. “Like if you need to drive for an hour and take time out of your day, etc., if you’re an hourly worker. That’s what makes healthcare inaccessible.”

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