Daily Archives: April 14, 2021

News: Kroger launches its first Ocado-powered ‘shed’, a massive, robot-filled fulfillment center in Ohio

After inking a deal to work together almost three years ago, U.S. supermarket chain Kroger and U.K. online grocer Ocado today took the wraps off the first major product of that deal. Kroger has launched a new Ocado-powered customer fulfillment center in Monroe, Ohio, outside of Cincinnati, a gigantic warehouse covering 375,000 square feet and

After inking a deal to work together almost three years ago, U.S. supermarket chain Kroger and U.K. online grocer Ocado today took the wraps off the first major product of that deal. Kroger has launched a new Ocado-powered customer fulfillment center in Monroe, Ohio, outside of Cincinnati, a gigantic warehouse covering 375,000 square feet and thousands of products for packing and delivering Kroger orders from online shoppers.

Built with a giant grid along the floor, “the shed”, as Ocado calls its warehouses, will feature some 1,000 robots alongside 400 human employees to pick, sort and move around items. It is expected to process as much as $700 million in sales annually, the sales of 20 brick-and-mortar stores.

Those orders, in turn, will be delivered in temperature-controlled Kroger Delivery vans, built on the model of Ocado’s vans in the US and able to store up to 20 orders. These will also be run using Ocado software, mapping algorithms to optimize deliveries along the fastest and most fuel-efficient routes.

The partnership was a long time in the making but the focus on what has come out of it is probably at its keenest right now, given the huge boost online shopping has had in the past year. The Covid-19 pandemic, and the resulting push for more social distancing, has driven a lot of people to the internet to shop, opting for deliveries over physical store visits for some or all of their food and other weekly essentials.

In call today with journalists, Rodney McMullen, Kroger’s chairman and CEO, said that delivery had grown 150% for Kroger last year. While some of that may well melt back into physical shopping as and when Covid-19 cases wane (fingers crossed), many in the industry believe that the genie has been let out of the bottle, so to speak: many consumers introduced to shopping online will stay, at least in part, and so this is about building infrastructure to meet that new demand.

(And there is some data that backs that up: Ocado CEO and co-founder Tim Steiner noted that at Ocado, pre-pandemic the average order value for the company was £105 ($144). That grew to £180 last year, and are at £120.)

Kroger, like many brick-and-mortar players, has been building out multiple fronts in its digital strategy. Alongside Ocado, the company has also been investing in technology to boost the efficiency of its in-store operations (for example by working with companies like Shelf Engine), and it has a grocery delivery partnership with Instacart.

That partnership with Instacart will remain in place, not least because it covers a much wider geography than the Ocado approach, which is live now in Cincinnati, and sounds like it will also expand to Florida. While Kroger today said that CFCs will vary in size and be built on the concept of “modules” (the Monroe facility is built on seven modules), this is still a capital intensive approach compared to the Instacart model, so might overall face a slower rollout and perhaps only make sense in Kroger’s denser markets.

“The two partnerships are critical to Kroger and our customers,” said Yael Cosset, Kroger’s CIO, in the call today. “We expect to work very closely in strategic partnership with Instacart and with Ocado.”

Ocado, an early player that started out in the UK back in 2000, is seen by many as the industry standard for how to build and run an online-only grocery business.

The company has been expanding its reach by way of taking the technology that it has built for itself and turning it into a product — a process that is still very much in development, with the company working now on robotic pickers and other autonomous systems, along with other technology to power and make its delivery service more efficient.

Ocado’s “AWS” strategy of turning tech that it has built for itself into a product to sell to others has born fruit: it now has partnerships to power online grocery services, and specifically fulfillment centers, in Japan (with Aeon), France (with Casino) and Canada (with Sobeys). That means the Kroger rollout is now a tested model, but it’s still a very notable move for the company to break into the U.S. while at the same time giving Kroger a much-needed bit of infrastructure to better compete with bigger players in the country like Walmart and Amazon.

In that regard, it will be interesting to see how and if Kroger leverages its much bigger Ocado-powered infrastructure for its other projects. The company is working with Mirakl to develop its own marketplace for third-party retailers, going head to head with similar offerings from — yes — Amazon and Walmart.

News: Deep fake video app Avatarify, which process on-phone, plans digital watermark for videos

Making deep fake videos used to be hard. Now all you need is a smartphone. Avatarify, a startup that allows people to make deep-fake videos directly on their phone rather than in the Cloud, is soaring up the app charts after being used by celebrities such as Victoria Beckham. However, the problem with many deep

Making deep fake videos used to be hard. Now all you need is a smartphone. Avatarify, a startup that allows people to make deep-fake videos directly on their phone rather than in the Cloud, is soaring up the app charts after being used by celebrities such as Victoria Beckham.

However, the problem with many deep fake videos is that there is no digital watermark to determine that the video has been tampered with. So Avatarify says it will soon launch a digital watermark to prevent this from happening.

Run out of Moscow but with a US HQ, Avatarify launched in July 2020 and since then has been downloaded millions of times. The founders say that 140 million deepfake videos were created with Avatarify this year alone. There are now 125 million views of videos with the hashtag #avatarify on TikTok. While its competitors include the well-funded Reface, Snapchat, Wombo.ai, Mug Life, Xpression, Avatarify has yet to raise any money beyond an Angel round.

Despite taking only $120,000 in angel funding, the company has yet to accept any venture capital and says it has bootstrapped its way from zero to almost 10 million downloads and claims to have a $10 million annual run-rate with a team of less than 10 people.

It’s not hard to see why. Avatarify has a freemium subscription model. They offer a 7-day free trial and a 12-month subscription for $34.99 or a weekly plan for $2.49. Without a subscription, they offer the core features of the App for free, but videos then carry a visible watermark.

The founders also say the app protects privacy, because the videos are processed directly on the phone, rather than in the cloud where they could be hacked.

Avatarify processes user’s photos and turns them into short videos by animating faces, using machine learning algorithms, and adding sounds. The user chooses a picture she wants to animate, chooses the effects and music, and then taps to animate the picture. This short video can then be posted on Instagram or TikTok.

The Avatarify videos are taking off on TikTok because teens no longer need to learn a dance or be much more creative than finding a photo of a celebrity to animate to.

Avartify says you can’t use their app to impersonate someone, but there is of course no way to police this.

Founders Ali Aliev and Karim Iskakov wrote the app during the COVID-19 lockdown in April 2020. Ali spent 2 hours writing a program in Python to transfer his facial expressions to the other person’s face and use a filter in Zoom. The result was a real-time video, which could be streamed to Zoom. He joined a call with Elon Mask’s face and everyone on the call was shocked. The team posted the video, which then went viral.

The code on Github and immediately saw the number of downloads grow. The repository was published on 6 April 2020, and as of 19 March 2021 had been downloaded 50,000 times.

Ali left his job at Samsung AI Centre and devoted himself to the app. After Avatarify’s iOS app was released on 28 June 2020, viral videos on TikTok, created with the app, led it to App Store’s top charts without paid acquisition. In February 2021, Avatarify was ranked first among Top Free Apps worldwide. Between February and March, the app 2021 generated more than $1M in revenue (Source: AppMagic).

However, despite Avartify’s success, the ongoing problems with deep-fake videos remain, such as using these apps to make non-consensual porn, using the faces of innocent people.

News: MIT startup Pickle raises $5.75M for its package-picking robot

There’s no doubt this past year has been a major watershed moment for the robotics industry. Warehouse and logistics have been a particular target for an automation push, as companies have worked to keep the lights on amidst stay at home orders and other labor shortages. MIT spinoff Pickle is one of the latest startups

There’s no doubt this past year has been a major watershed moment for the robotics industry. Warehouse and logistics have been a particular target for an automation push, as companies have worked to keep the lights on amidst stay at home orders and other labor shortages.

MIT spinoff Pickle is one of the latest startups to enter the fray. The company launched with limited funding and a small team, though it’s recently changed one of these, telling TechCrunch this week that it has raised $5.57 million in funding during this hot investment streak. The seed round was led by Hyperplane and featured Third Kind Venture Capital, Box Group and Version One Ventures, among others.

The company’s making some pretty big claims around the efficacy of its first robot named, get this, “Dill” (the company clearly can’t avoid a clever name). It says the robot is capable of 1,600 picks per hour from the back of a trailer, a figure it claims is “double the speed of any competitors.”

CEO Andrew Meyer says collaboration is a key to the company’s play. “We designed people into the system from the get-go and focused on a specific problem: package handling in the loading dock. We got out of the lab and put robots to work in real warehouses. We resisted the fool’s errand of trying to create a system that could work entirely unsupervised or solve every robotics problem out there.”

Orders for the first product targeted at trailer unloading will open in June, with an expected ship date of early 2022.

News: Alexa von Tobel outlines how founders should manage personal finances

Von Tobel outlines steps to stay out of debt, build credit and accumulate wealth to ensure financial peace of mind as you take on the most stressful venture of your life: Starting a company.

Few people are more knowledgable on the topic of how founders should manage their finances than Alexa von Tobel. She is a certified financial planner, started her own company in the midst of the recession (which happened to be a wildly successful personal finance startup that sold for hundreds of millions of dollars) and is now a VC who invests and advises founders.

At Early Stage 2021, she gave a presentation on how founders should think about managing their own wealth. Startup founders can often put all their money into their venture and end up paying more attention to the finances of their company than their own bank account.

Von Tobel outlined the various steps you can take to stay out of debt, build credit and accumulate wealth through investments to ensure you have financial peace of mind as you take on the most stressful venture of your life: Starting a company.


Know your numbers

The first step in getting organized and being proactive is often taking inventory. Von Tobel believes that knowing your numbers and getting organized digitally is the first step to having financial peace of mind.

Know all your numbers. Know your net worth. What are your assets? What’s your debt? What does your total financial picture look like? Get everything online. You should have all the mobile apps downloaded so that, in minutes, you can actually see your full financial life. And keep it simple. Fewer accounts are better. I always tell people, if you have seven credit cards, plus three savings accounts, that’s a lot. You’re never going to be as good at managing your finances. Simplify your accounts. (Time stamp — 2:50)


Manage your credit and debt

News: Google’s FeedBurner moves to a new infrastructure but loses its email subscription service

Google today announced that it is moving FeedBurner to a new infrastructure but also deprecating its email subscription service. If you’re an internet user of a certain age, chances are you used Google’s FeedBurner to manage the RSS feeds of your personal blogs and early podcasts at some point. During the Web 2.0 era, it

Google today announced that it is moving FeedBurner to a new infrastructure but also deprecating its email subscription service.

If you’re an internet user of a certain age, chances are you used Google’s FeedBurner to manage the RSS feeds of your personal blogs and early podcasts at some point. During the Web 2.0 era, it was the de facto standard for feed management and analytics, after all. Founded in 2004, with Dick Costolo as one of its co-founders (before he became Twitter’s CEO in 2010), it was acquired by Google in 2007.

Ever since, FeedBurner lingered in an odd kind of limbo. While Google had no qualms shutting down popular services like Google Reader in favor of its ill-fated social experiments like Google+, FeedBurner just kept burning feeds day in and day out, even as Google slowly deprecated some parts of the service, most notably its advertising integrations.

I don’t know that anybody spent a lot of time thinking about the service and RSS has slowly (and sadly) fallen into obscurity, yet the service was probably easy enough to maintain that Google kept it going. And despite everything, shutting it down would probably break enough tools for publishers to create quite an uproar. The TechCrunch RSS feed, to which you are surely subscribed in your desktop RSS reader, is http://feeds.feedburner.com/TechCrunch/, after all.

So here we are, 14 years later, and Google today announced that it is “making several upcoming changes to support the product’s next chapter.” It’s moving the service to a new, more stable infrastructure.

But in July, it is also shutting down some non-core features that don’t directly involve feed management, most importantly the FeedBurner email subscription service that allowed you to get emailed alerts when a feed updates. Feed owners will be able to download their email subscriber lists (and will be able to do so after July, too). With that, Blogger’s FollowByEmail widget will also be deprecated (and hey, did you start this day thinking you’d read about FeedBurner AND Blogger on TechCrunch without having to travel back to 2007?).

Google stresses that other core FeedBurner features will remain in place, but given the popularity of email newsletters, that’s a bit of an odd move.

News: Coinbase opens at $381 per share, valuing the crypto exchange at nearly $100B

Today shares of Coinbase began to trade after the company executed a direct listing. From a reference price of $250, Coinbase shares opened at $381 today, a change of around 52% percent. At its open Coinbase was valued at $99.6 billion on a fully-diluted basis. As of the time of writing Coinbase has appreciated further

Today shares of Coinbase began to trade after the company executed a direct listing. From a reference price of $250, Coinbase shares opened at $381 today, a change of around 52% percent. At its open Coinbase was valued at $99.6 billion on a fully-diluted basis. As of the time of writing Coinbase has appreciated further to just over $400 per share, valuing the company at a touch more than $104 billion.

Coinbase was worth $65.3 billion at its reference price, on a fully-diluted basis.

Coinbase’s debut has been hotly anticipated, thanks to its position inside the greater crypto economy and, from a purely startup perspective, its huge value unlock. Private investors poured capital into the company during its life as a private company, valuing it as high as $8 billion.

The company’s new valuation dwarfs that prior figure, implying strong returns for its long-term backers. Today even regular folks could get a scratch at the company’s equity, and they were willing to pay up for the privilege. TechCrunch asked its audience about the debut, pre-trading results that served as an anti-indicator of where the crypto-unicorn’s shares would trade:

Would you pay more or less than $250/share for Coinbase? (read up on today’s direct listing: https://t.co/xd8xP4YwWX)

— Extra Crunch (@ExtraCrunch) April 14, 2021

For Coinbase the road ahead is interesting. The company is richly capitalized, and posted monster profits in its most recent quarter. However, Coinbase has yet to chart a future sufficiently de-linked from the impacts of cryptocurrency price levels and resulting trading volume to be immune to a potential setback in growth, and income if the value of bitcoin et al dropped.

But for crypto believers, watching Coinbase list is a win; it is ironic that a traditional company listing on an old-fashioned exchange is a key moment for the crypto-economy, but most things come in steps. Perhaps the next major crypto company trading debut will be on a decentralized exchange.

News: Indian fintech Zeta turns unicorn with SoftBank-led funding

Bangalore-based fintech startup Zeta has clinched the much sought-after unicorn status after finalizing a new financing round led by SoftBank Vision Fund 2, sources familiar with the matter told TechCrunch. SoftBank Vision Fund 2 has led a ~$250 million Series D round in the five-year-old Indian startup, the sources said. The new round valued the

Bangalore-based fintech startup Zeta has clinched the much sought-after unicorn status after finalizing a new financing round led by SoftBank Vision Fund 2, sources familiar with the matter told TechCrunch.

SoftBank Vision Fund 2 has led a ~$250 million Series D round in the five-year-old Indian startup, the sources said. The new round valued the Indian startup, co-founded by high-profile entrepreneur Bhavin Turakhia, at about $1.3 billion, up from $300 million in its maiden external funding (Series C) in 2019.

A SoftBank spokesperson declined to comment. Turakhia didn’t respond to a request for comment.

Five-year-old Zeta helps banks launch modern retail and fintech products. The thesis is that banks — largely operating on antiquated technologies — today don’t have the time and expertise to offer the best experience to hundreds of millions of customers and fintech firms they serve.

Zeta is attempting to help banks either use the startup’s cloud-native, API-first banking stack as its core framework or build services atop it to offer better a experience to all customers — think of improved mobile app and debit and credit features. It also offers API, SDKs and payment gateways to banks to work more efficiently with fintech firms.

The startup has amassed clients in several Asian and Latin American markets.

Turakhia, with his brother Divyank, started his first venture in 1998. Along the way, they sold Media.net for $900 million. In 2014, they sold four web companies to Endurance for $160 million. Zeta is the second startup Bhavin has co-founded since then — the other being business messaging platform Flock.

Zeta is the seventh Indian startup to become a unicorn this month. Last week, social commerce Meesho — also backed by SoftBank Vision Fund 2 — fintech firm CRED, e-pharmacy firm PharmEasy, millennials-focused Groww, business messaging platform Gupshup and social network ShareChat attained the unicorn status.

News: Triller owner gets a new CEO with acquisition of Amplify.AI; also acquires livestreaming service FITE TV

Would be TikTok competitor Triller, operated by parent company TrillerNet, is gaining a new CEO, the company announced today. The short-form video app said it’s acquiring an A.I.-based customer engagement platform, Amplify.AI, whose co-founder Mahi de Silva will now become TrillerNet’s CEO. Existing CEO Mike Lu will transition to president of TrillerNet and will focus

Would be TikTok competitor Triller, operated by parent company TrillerNet, is gaining a new CEO, the company announced today. The short-form video app said it’s acquiring an A.I.-based customer engagement platform, Amplify.AI, whose co-founder Mahi de Silva will now become TrillerNet’s CEO. Existing CEO Mike Lu will transition to president of TrillerNet and will focus on investor relations. The company separately announced the acquisition of FITE TV, a live event and pay-per-view combat sports streaming platform.

New CEO Mahi de Silva had been closely involved with Triller before today. The company’s press release today says he’s been serving as non-executive chairman since 2016, but his LinkedIn notes the year was 2019 (which would be following Triller’s 2019 funding by Proxima Media, when the press release at the time noted he was assuming the role of “chairman.”)  These are both wrong, the company discovered when we reached out for clarity. The correct year is 2018.

Ahead of the acquisition, de Silva had been serving as CEO and co-founder to Amplify.AI since 2017, and before that was CEO of Opera Mediaworks, the marketing and advertising arm of Opera Software, and co-founder and CEO of Botworx.

Amplify.AI, which works with brands in CPG, financial services, automotive, telecom, politics and digital media, among others, will continue to operate as a subsidiary of TrillerNet following the deal. Other team members include former RSA and VeriSign executive Ram Moskovitz who helped design and develop the digital certificates for SSL and code signing; and Amplify.ai co-founder and CTO Manoj Malhotra, a pioneer in B2C SMS messaging, the company notes.

TrillerNet also today announced it’s acquiring another strategic property to help shift its business further into the direction of live events: FITE TV. This deal gives Triller more of a foothold in the live events and pay-per-view streaming market, it says. As a result, FITE, which touts 10 million users, will become the exclusive digital distributor of all Triller Fight Club boxing events going forward.

“Acquiring FITE is part of the larger Triller strategy to bring together content, creators and commerce for the first time and the only place where they truly interact,” said Triller’s Ryan Kavanaugh, the former head of movie studio Relativity Media (and controversial figure) whose Proxima Media became Triller’s majority investor in 2019. “We have invested hundreds of millions of dollars and believe we have created a better more efficient e-commerce content platform,” he added.

The acquisition follows several others TrillerNet has made to expand into live events, now that becoming a TikTok replacement in the U.S. is no longer a viable option, as the Trump ban was put on hold by the Biden administration. Triller also in March acquired live music streaming platform Verzuz, founded by Swizz Beats and Timbaland. And it operates Triller Flight Club in partnership with Snoop Dogg, as well as a streaming platform Triller TV.

While specific deal terms were not revealed, Triller told TechCrunch it’s spent $250 million in the aggregate on its acquisitions, including Halogen, Mashtraxx, Verzuz, FITE and Amplify today.

 

News: Blue Origin launches and lands New Shepard rocket in key prep flight for human passengers

Blue Origin has launched its New Shepard rocket for the second time this year, and the 15th time overall. The mission profile saw the reusable spacecraft fly to suborbital space, and then return for a parachute-assisted landing at Blue Origin’s launch facility in West Texas. This flight was a little different than its usual missions,

Blue Origin has launched its New Shepard rocket for the second time this year, and the 15th time overall. The mission profile saw the reusable spacecraft fly to suborbital space, and then return for a parachute-assisted landing at Blue Origin’s launch facility in West Texas.

This flight was a little different than its usual missions, because it included a rehearsal component with people standing in for what will eventually be Blue Origin’s paying private astronaut customers. What that means is that they actually went through the process of flight preparations, including transporting to the pad, and even climbing in to the New Shepard vehicle and getting seated as if they were going along for the ride.

The crucial difference between this and an actual passenger flight is that Blue Origin then paused the countdown, and the mock crew disembarked, before the countdown was resumed and the flight proceeded as planned — without any passengers, save for Mannequin Skywalker, the Blue Origin test dummy who flies on these preparation missions to take crucial readings during the launch and return.

New Shepard returned and touched down without any issue, and in fact showed off one of its smoothest landings yet. This was the second launch and landing for this particular booster stage. The capsule also touched down as planned, with a soft landing facilitated by the spacecraft’s parachute descent system.

Image Credits: Blue Origin

Next up, Blue Origin is going to do a dry run of what would be the ending stage of the mission for an actual human crew, by bringing out those rehearsal astronauts and putting them back into the capsule, then rehearsing in full the astronaut recovery and departure process that would occur during a live tourist flight.

All of today’s activities showed off what Blue Origin hopes to accomplish sometime this year with people on board. It’s yet another way paying private astronauts can get to space, in a growing roster of options that now includes SpaceX Dragon flights, and hopefully soon, Virgin Galactic launches.

News: Uber hit with default ‘robo-firing’ ruling after another EU labor rights GDPR challenge

Labor activists challenging Uber over what they allege are ‘robo-firings’ of drivers in Europe have trumpeted winning a default judgement in the Netherlands — where the Court of Amsterdam ordered the ride-hailing giant to reinstate six drivers who the litigants claim were unfairly terminated “by algorithmic means.” The court also ordered Uber to pay the

Labor activists challenging Uber over what they allege are ‘robo-firings’ of drivers in Europe have trumpeted winning a default judgement in the Netherlands — where the Court of Amsterdam ordered the ride-hailing giant to reinstate six drivers who the litigants claim were unfairly terminated “by algorithmic means.”

The court also ordered Uber to pay the fired drivers compensation.

The challenge references Article 22 of the European Union’s General Data Protection Regulation (GDPR) — which provides protection for individuals against purely automated decisions with a legal or significant impact.

The activists say this is the first time a court has ordered the overturning of an automated decision to dismiss workers from employment.

However the judgement, which was issued on February 24, was issued by default — and Uber says it was not aware of the case until last week, claiming that was why it did not contest it (nor, indeed, comply with the order).

It had until March 29 to do so, per the litigants, who are being supported by the App Drivers & Couriers Union (ADCU) and Worker Info Exchange (WIE).

Uber argues the default judgement was not correctly served and says it is now making an application to set the default ruling aside and have its case heard “on the basis that the correct procedure was not followed.”

It envisages the hearing taking place within four weeks of its Dutch entity, Uber BV, being made aware of the judgement — which it says occurred on April 8.

“Uber only became aware of this default judgement last week, due to representatives for the ADCU not following proper legal procedure,” an Uber spokesperson told TechCrunch.

A spokesperson for WIE denied that correct procedure was not followed but welcomed the opportunity for Uber to respond to questions over how its driver ID systems operate in court, adding: “They [Uber] are out of time. But we’d be happy to see them in court. They will need to show meaningful human intervention and provide transparency.”

Uber pointed to a separate judgement by the Amsterdam Court last month — which rejected another ADCU- and WIE-backed challenge to Uber’s anti-fraud systems, with the court accepting its explanation that algorithmic tools are mere aids to human “anti-fraud” teams who it said take all decisions on terminations.

“With no knowledge of the case, the Court handed down a default judgement in our absence, which was automatic and not considered. Only weeks later, the very same Court found comprehensively in Uber’s favour on similar issues in a separate case. We will now contest this judgement,” Uber’s spokesperson added.

However WIE said this default judgement “robo-firing” challenge specifically targets Uber’s Hybrid Real-Time ID System — a system that incorporates facial recognition checks and which labor activists recently found misidentifying drivers in a number of instances.

It also pointed to a separate development this week in the U.K. where it said the City of London Magistrates Court ordered the city’s transport regulator, TfL, to reinstate the licence of one of the drivers revoked after Uber routinely notified it of a dismissal (also triggered by Uber’s real time ID system, per WIE).

Reached for comment on that, a TfL spokesperson said: “The safety of the travelling public is our top priority and where we are notified of cases of driver identity fraud, we take immediate licensing action so that passenger safety is not compromised. We always require the evidence behind an operator’s decision to dismiss a driver and review it along with any other relevant information as part of any decision to revoke a licence. All drivers have the right to appeal a decision to remove a licence through the Magistrates’ Court.”

The regulator has been applying pressure to Uber since 2017 when it took the (shocking to Uber) decision to revoke the company’s licence to operate — citing safety and corporate governance concerns.

Since then Uber has been able to continue to operate in the U.K. capital but the company remains under pressure to comply with a laundry list of requirements set by TfL as it tries to regain a full operator licence.

Commenting on the default Dutch judgement on the Uber driver terminations in a statement, James Farrar, director of WIE, accused gig platforms of “hiding management control in algorithms.”

“For the Uber drivers robbed of their jobs and livelihoods this has been a dystopian nightmare come true,” he said. “They were publicly accused of ‘fraudulent activity’ on the back of poorly governed use of bad technology. This case is a wake-up call for lawmakers about the abuse of surveillance technology now proliferating in the gig economy. In the aftermath of the recent U.K. Supreme Court ruling on worker rights gig economy platforms are hiding management control in algorithms. This is misclassification 2.0.”

In another supporting statement, Yaseen Aslam, president of the ADCU, added: “I am deeply concerned about the complicit role Transport for London has played in this catastrophe. They have encouraged Uber to introduce surveillance technology as a price for keeping their operator’s license and the result has been devastating for a TfL licensed workforce that is 94% BAME. The Mayor of London must step in and guarantee the rights and freedoms of Uber drivers licensed under his administration.”  

When pressed on the driver termination challenge being specifically targeted at its Hybrid Real-Time ID system, Uber declined to comment in greater detail — claiming the case is “now a live court case again”.

But its spokesman suggested it will seek to apply the same defence against the earlier “robo-firing” charge — when it argued its anti-fraud systems do not equate to automated decision making under EU law because “meaningful human involvement [is] involved in decisions of this nature”.

 

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