Daily Archives: June 2, 2021

News: CDK Global buys vehicle the e-commerce platform Roadster for $360 million

Roadster, the Palo Alto-based digital platform that gives dealers tools to sell new and used vehicles online has been acquired for $360 million by retail automotive technology company CDK Global Inc., according to a Securities and Exchange Commission filing. As part of the all-cash deal, Roadster is now a wholly owned subsidiary. Roadster’s business model

Roadster, the Palo Alto-based digital platform that gives dealers tools to sell new and used vehicles online has been acquired for $360 million by retail automotive technology company CDK Global Inc., according to a Securities and Exchange Commission filing.

As part of the all-cash deal, Roadster is now a wholly owned subsidiary. Roadster’s business model has evolved since its founding in 2013. The online sales platform initially hosted dealers’ inventory on its site, but handled the entire sales process with customers. Roadster now works more directly with dealerships by providing its digital retail tools directly to these businesses through its “Express” products.

These digital tools have helped dealerships enter a modern era and serve customers who have become accustomed to completing retail purchases online, particularly in the last year.

“Consumers have shown they are increasingly more willing to purchase big ticket items online, and this trend has quickly accelerated during the pandemic,” said Brian Krzanich, CDK Global’s president and CEO, in a statement. “To meet their expectations, the automotive industry requires integrations of the right technology, data and infrastructure to better connect its online and in-store experiences.”

CDK is known for making the vehicle sales process easier with digital products like Connected Store, a digital quote, loan and payment tool, or Elead CRM, a leads generating software platform. Roadster’s assets will connect CDK to dealer back-end-systems for a more seamless end-to-end sales process.

“Automotive retailing is extremely complex, and the best way to create a truly frictionless, end-to-end buying experience is to fully integrate our technology with the back-end systems that power dealership sales, finance and operations, regardless of provider,” said Andy Moss, Roadster’s founder and CEO, in a statement.

News: Walmart accidentally unveiled its own bargain-priced FHD streaming stick and 4K player

Walmart accidentally scooped itself by publishing product listings for its own, onn-branded, low-cost Android TV streaming stick to the Walmart.com website ahead of its formal launch, where it was soon spotted, alongside an upcoming 4K streaming device. Both items are officially arriving next week in stores and online, Walmart told TechCrunch, but it seems the

Walmart accidentally scooped itself by publishing product listings for its own, onn-branded, low-cost Android TV streaming stick to the Walmart.com website ahead of its formal launch, where it was soon spotted, alongside an upcoming 4K streaming device. Both items are officially arriving next week in stores and online, Walmart told TechCrunch, but it seems the website revealed them a bit earlier than planned.

The entry-level device streaming stick had been leaked earlier this year thanks to its FCC listing, but its online listing caught people’s eye thanks to its almost absurdly low price point of just $24.88 — a figure that rivals or even undercuts other streaming sticks on the market, including some from Walmart’s partner, Roku.

Roku today makes a product line of Walmart exclusives, where its cheapest player is the Roku Express 4K at $34.99, currently. Otherwise, Roku’s most affordable streaming player is the Roku Express, at $24.99. Google’s entry-level Chromecast, meanwhile, is $29.99, and Amazon’s cheapest Fire TV stick is the Fire TV Stick Lite at $24.99.

The Walmart streaming stick, which is published under the retailer’s onn electronics brand, falls in line with the specifications you’d expect to find on a low-cost device like this. It support FHD (Full HD, meaning 1080p), Dolby Audio, and ships with an Android TV-style remote (with batteries included), 1 HDMI Extender, AC adapter, and 1 USB to Micro-USB cable.

Image Credits: Walmart

The system itself is powered by Android TV, which offers an easy way for consumers to turn a regular TV into a smart TV with access to streaming apps, voice control, and the ability to “cast” content like photos, video and music to the TV. Device owners can also ask Google Assistant to control their TV with their voice, and access over 700,000 movies and TV shows from the Android TV interface.

The included remote offers a Google Assistant button and dedicated buttons for YouTube, Netflix, Disney+ and HBO Max.

The stick may not be the sort of thing you’d use in your living room for your big screen, but may make sense to add to another, less important TV — like the one in the kid’s room or guest room — where having the top specs isn’t as essential.

Meanwhile, Walmart is addressing the higher-end of the streaming market with its new 4K Android TV streamer the $29.88 Onn UHD Streaming Device, also published ahead of schedule.

Image Credits: Walmart

The overall concept here is the same, but offers an affordable upgrade to 4K streaming.

The retailer’s onn brand today carries a range of devices, including TVs, headphones, portable speakers, tablets, and other accessories. Roku has also produced lower-cost versions of its new Smart Soundbar and Wireless Subwoofer for Walmart under the onn brand, too.

Walmart confirmed the new streaming devices are preparing to launch in stores and online in the retailer’s full assortment starting next week. Despite the website saying only a few devices are in stock or are out of stock, Walmart assures us there is, in fact, plenty of inventory available. These are not considered “test” items.

The company offered the following official specs for the new devices:

Streaming Stick

  • Android TV OS
  • Use built-in Chromecast to cast Chromecast-compatible apps to your TV
  • Streams up to Full HD resolution with Dolby Audio support
  • Built-in Google Assistant to control the TV and search for content
  • Access favorite streaming apps like Netflix, Youtube, Disney+, HBOMax, Hulu, Prime Video, and more
  • WiFi: 2.4 GHz/ 5Ghz 802.11 a/b/g/n/ac
  • Input: AC 100-240V, 50/60Hz, Output: DC 5V/1A

Comes with:

  • 1FHD TV Streaming Stick
  • 1 Remote control (batteries included)
  • 1HDMI Extender
  • 1 AC adapter
  • 1 USB to Micro-USB cable 4.88 ft.
  • Quick start guide

4K Streaming Device

  • Android TV OS
  • Use built in Chromecast to cast Chromecast compatible apps to your TV
  • Streams up to 4K ultra high-def resolution with Dolby Audio Support
  • Built-in Google Assistant to control the TV and search for content
  • Access favorite streaming apps like Netflix, Youtube, Disney+, HBOMax, Hulu, Prime Video, and more
  • WiFi: 2.4/5GHx 802.11 a/b/g/n/ac MIMO
  • Input: AC 100-240V, 50/60Hz, 250mA MAX; Output: DC 5V/1A

News: Google hires former SiriusXM CPO/CTO to lead its Maps team

Almost exactly a year ago, Google announced a couple of leadership changes that saw Prabhakar Raghavan, who joined the company back in 2012, take over the lead of Search, Assistant and Maps. Now, sources familiar with the hiring tell us, the company has hired Christopher Phillips, who was previously the chief product and technology officer

Almost exactly a year ago, Google announced a couple of leadership changes that saw Prabhakar Raghavan, who joined the company back in 2012, take over the lead of Search, Assistant and Maps. Now, sources familiar with the hiring tell us, the company has hired Christopher Phillips, who was previously the chief product and technology officer at SiriusXM, to lead its geo team, which is responsible for products like Google Maps, Google Earth and Google Maps Platform, the company’s enterprise business around these products. Google has confirmed his hire but declined to share any additional information. Phillips will officially join the company later this month.

Christopher Phillips

Image Credits: Christopher Phillips/LinkedIn

Phillips came to SiriusXM after the company acquired music service Pandora last year. Before the acquisition, he spent six years as Pandora’s CPO and head of Technology, a role he took after leading product and design for Amazon Music from 2012 to 2014 and executive roles at Workspeed and Intuit before that.

In his new role at Google, Phillips will lead both product and engineering for the Geo team and report directly to Raghavan, who will continue to oversee Search, Assistant, Geo, Commerce and Ads. Before last year’s leadership shuffle, Jen Fitzpatrick essentially played a similar role for the Geo team.

According to Search Engine Land, Dane Glasgow and Liz Reid became the leads for the Geo team after her departure. Glasgow has since departed Google and is now at Facebook, while Reid recently took on a new role to lead Google’s search experiences. That obviously left a bit of a vacuum, which Phillips will now fill.

While Phillips doesn’t have any direct experience in building geo products, he does bring with him extensive experience in managing product-oriented engineering teams. His hiring also comes at an interesting time for Google Maps, which only recently announced a number of major updates and which is becoming an increasingly important part of Google’s product portfolio.

 

 

News: Tinder tested group video chat ahead of Match’s move into social discovery with Hyperconnect deal

As dating app Tinder and its parent company Match explore the future of personal connection through apps, it’s interesting to see what sort of ideas it tested but later discarded. One such experiment was something called “Tinder Mixer,” which had briefly offered Tinder users a way to join group video chats, and “play games” with

As dating app Tinder and its parent company Match explore the future of personal connection through apps, it’s interesting to see what sort of ideas it tested but later discarded. One such experiment was something called “Tinder Mixer,” which had briefly offered Tinder users a way to join group video chats, and “play games” with others nearby.

The feature was tested for a short period of time last year in New Zealand, we understand, but will not be launching.

The Tinder Mixer experience was uncovered by app researcher Alessandro Paluzzi, who found references the product in the Tinder Android app’s code. He had not yet publicized the finding, as we worked to learn more about the origins of the product.

The resources he found in the dating app had given the appearance of a product in the midst of development, Paluzzi noted, but as it turns out it was one that had already been tested and quickly shut down as Tinder continued its other, ongoing experiments in the dating market.

According to Tinder, the Tinder Mixer test has no impact on its product roadmap this year, and the Tinder Mixer experience described here will likely never come into existence.

That said, what made the product particularly intriguing was that it saw Tinder venturing, however briefly and experimentally, into more of a social discovery space, compared with the usual Tinder experience. Typically, Tinder users swipe on daters’ profiles, match, chat and sometimes even video call each other on a one-on-one basis. But live video chatting with a group is not something Tinder today offers.

That said, the idea of going live on video is not new to Match.

This is an area where the company has experimented before, including with its apps Plenty of Fish, which offers a one-to-many video broadcasting feature, and Ablo, which offers one-on-one video chats with people around the world. These experiments constitute what the company considers “dating-adjacent” experiences. In other words, you could meet someone through these video interactions, but that’s not necessarily their main goal.

These video experiences have continued even as Match announced its $1.73 billion acquisition of Seoul-based Hyperconnect — its biggest acquisition ever, and one that puts the company more on the path towards a future that involves the “social discovery” and live streaming market.

The company believes social discovery an area with vast potential, and a market it estimates that could be twice the size of dating, in fact.

Match Group CEO Shar Dubey spoke to this point recently at the JP Morgan Technology, Media and Communications Conference, noting that on some of its bigger platforms, Match has seen that a number of its users were looking for more of “a shared experience and a sense of community among other like-minded single people on the platform,” she said.

She noted that technology has reached a point where people could now interact with others through richer experiences than the traditional dating flow of swipe-match-chat allowed for, including few-to-few, many-to-many, and one-to-many type of experiences.

Hyperconnect brings to Match much of the technology that would allow the company to expand in these areas.

Today, it offers two apps, Azar and Hakuna Live, which let users to connect with one another online. The former, launched in 2014, is focused on one-on-one live video and voice chats while the latter, launched in 2019 is in the online broadcast space. Not coincidentally, these apps mirror the live stream experiences that Match has been running on Plenty of Fish and Ablo.

Because these live streaming services are often more heavily adopted by younger demographics, it makes sense that Match may have wanted to also test out such a live stream experience on Tinder, which also skews younger, even if the test ultimately only served as a way to collect data as opposed to informing a specific future product’s development.

With the Hyperconnect deal soon to be finalized, the incoming apps will initially give Match an expanded footprint in the live streaming and social discovery market in Asia — 75% of Hyperconnect’s usage and revenue comes from markets in Asia. Match then plans to leverage its international experience and knowledge to accelerate their growth in other markets where they haven’t yet broken through.

But another major reason for the acquisition is that Match sees the potential in deploying Hyperconnect’s technology across its existing portfolio of dating apps to not only create richer experiences but also to cater to users in markets where the “Western” way of online dating hasn’t yet been fully embraced, but social discovery has.

“We think there is real synergy of bringing some of these experiences that are popular in social discovery platforms onto our dating platforms, as well as sort of enhance the social discovery platforms and help people get to their dating intent, should they choose to,” Dubey explained, at the JP Morgan conference.

What any of that may mean for Tinder, more specifically, is not yet known.

News: Daily Crunch: Spotify’s new ‘Only You’ feature expands on personalization investment

Hello friends and welcome to Daily Crunch, bringing you the most important startup, tech and venture capital news in a single package.

To get a roundup of TechCrunch’s biggest and most important stories delivered to your inbox every day at 3 p.m. PDT, subscribe here.

Hello and welcome to Daily Crunch for June 2, 2021. It’s a good day in the tech world because former unicorn Spotify is out with new features about you. Yes, the company is taking its yearly listening review to a midyear format and packing its app with even more personalized mixes. My playlists are why I won’t leave Spotify until the heat death of the universe, so I suppose it makes sense that the service is doubling down on its personalization feature set.

And yes, I do listen to a lot of Taylor Swift in the morning. — Alex

The TechCrunch Top 3

  • Stack Overflow sells for $1.8B: Well-known developer community and hub of copy-pastable coding snippets for software engineers of all skill levels Stack Overflow is selling itself to Prosus for nearly $2 billion. What’s Prosus? It’s part of Naspers, a South African investing group that you may have heard of. Naspers is perhaps best known for owning a large stake in Tencent.
  • Guild Education raises $150M: The company, focused on providing what TechCrunch described as “employer-sponsored learning opportunities” for employees, is now worth $3.75 billion after its latest funding round. For the burgeoning edtech startup market, the round is big news. There’s still lots of capital for tech companies tackling the various sides of the education market.
  • The great technology company liquidity run continues: As well-known tech startups like Marqeta look to list, other companies are jumping on the bandwagon. TechCrunch reported this morning that fintech firm Yieldstreet may go public via a SPAC, and data-centered unicorn Confluent is also going public.

Startups and VC

The week’s busy startup fundraising cycle continued today with a host of companies from the very earliest stages to the most mature unicorns raising capital. What follows is a selection of the day’s hottest deals. We’re starting in the world of wheels:

  • Faction raises $4.3M for three-wheeled delivery vehicles: That are driverless, we should add. Daily Crunch is certain that, simply given the sheer amount of capital that has gone into the various projects of this sort, it will eventually work. Perhaps Faction will be the company to get it right.
  • FlixMobility raises $650M for its low-cost bus service: If you are American, you may have not heard of FlixMobility, which operates FlixBus and FlixTrain, low-cost transport services in Europe. The company is also working to expand in the U.S. For reference, the new Flix round is a Series G.
  • Tier options $60M for e-scooter network: Electric scooter shares are not dead, it turns out. Sure, Bird’s SPAC demonstrates how difficult the economics proved for the model in some markets, but Tier now has access to a “highly scalable asset-backed debt facility,” in the words of its CFO, to keep growing. The company also has some neat battery tech aboard its portfolio.

Now, today’s other rounds of note tackling a more diverse set of industries:

  • Stemma raises $4.8M for managed Amundsen: What’s Amundsen? Per Ron, it’s a “data catalogue project that [Lyft built] to manage its massive data requirements.” And now there’s a startup offering it as a service. This reminds me of BuildBuddy to a degree, in which a startup takes on a BigCo tool, helping others access and leverage it.
  • $131M in total capital for Jeeves: It’s $31 million in equity funding and $100 million in debt access, which we presume is a revolving facility of sorts because Jeeves is building a multinational expense management platform. You know, for companies that have employees everywhere. Like every single early-stage startup we talk to these days.
  • Divido raises money because apparently we still need more buy now, pay later (BNPL) services: Divido has put together a fresh $30 million round to bring its BNPL service to more markets, TechCrunch reports. The startup BNPL market has been hot because the companies in it have been doing well. But at some point we hit saturation, right? Right?

With $1.6B Depop purchase, Etsy asks, ‘How do you do, fellow kids?’

News broke today that Etsy will buy used fashion marketplace Depop in a transaction that values the U.K.-based startup at $1.625 billion.

Depop showed 100% year-over-year growth to reach $70 million in revenue last year, but it’s still worth asking whether Etsy paid a premium to expand its reach into the hearts, minds and wallets of Gen Z and young millennial consumers.

To frame the deal’s overall value in a larger context, let’s look at revenue multiples for rivals Poshmark and ThredUp. If large e-commerce players are willing to splash out for youth-approved marketplaces, there’s a good reason why.

(Extra Crunch is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

Big Tech Inc.

Big Tech was super busy today, Spotify aside. Today we’re talking Amazon, Apple, Facebook, GitLab and Huawei:

  • Welcome to 2021, Amazon: The American e-commerce giant is doing away with cannabis testing of its employees. Our first reaction to this news was that Amazon was drug testing its employees?
  • Apple thinks highly of itself: Apple has a study out saying that it facilitated more than a half-trillion dollars in commerce last year. We are sure that Apple really put itself to the test in coming up with the number.
  • Facebook does two things that don’t suck: Today Facebook opened up its Messenger API to all companies, which is good. And Big Blue put together a research API. Both are good things from Zuck’s empire. Which is nice to say for once.
  • GitLab buys UnReview: GitLab is north of $100 million in revenue and is slated for an eventual IPO, so it’s big enough to warrant inclusion in this section. Regardless, the GitHub competitor has bought a startup that “helps software teams recommend the best reviewers for when developers want to check in their latest code” using machine learning. Honestly, that sounds cool.
  • Huawei’s new OS loves Android: TechCrunch has lots of details on HarmonyOS, the new operating system from Huawei. It turns out that it uses some Android code. All hail Google, we suppose.

Community

Tomorrow (Thursday) at 2 p.m. PDT/5 p.m. EDT, we’ll be chatting on Twitter Spaces about the future of e-commerce with Accel’s Ethan Choi, who wrote this piece for Extra Crunch recently. Joining him will be our very own Danny Crichton, Shogun CEO Finbarr Taylor and Shopify’s VP of Product and GM of Platform, Brandon Chu. Keep an eye on our tweets for details and come have a listen (and bring your thoughts and questions!).

TC Eventful

Are you a founder trying to get your startup off the ground? If so, TC Early Stage: Marketing & Fundraising is here to help! During this two-day bootcamp, leading experts will guide you through marketplace positioning to growth marketing and content development. Get an additional 10% off early-bird pricing if you register before this Friday with promo code DAILYCRUNCHRegister Now!

News: How to win consulting, board and deal roles with PE and VC funds

There are relatively few jobs directly inside private equity and venture capital funds, and those jobs are highly competitive. However, there are many other ways you can work within the industry.

David Teten
Contributor

David Teten is founder of Versatile VC and writes periodically at teten.com and @dteten.
Paulina Symala
Contributor

Paulina Symala is a consultant at Oliver Wyman and a past intern of Versatile VC.

Would you like to work with private equity and venture capital funds?

There are relatively few jobs directly inside private equity and venture capital funds, and those jobs are highly competitive. However, there are many other ways you can work and earn money within the industry — as a consultant, an interim executive, a board member, a deal executive partnering to buy a company, an executive in residence or as an entrepreneur in residence.

Venture capitalists often have an operations background. However, historically most private equity professionals were former investment bankers and other finance professionals. Then private equity players gradually realized that value cannot be created through financial engineering alone. A BCG study of 121 investments found that operational improvement drives 48% of value creation in PE-backed companies. PE funds now almost always require an upgrade in management and change management teams if necessary.

Not surprisingly, the tighter your relationship with the firm, the more money you will earn:

PE fund structural options in working with operating executives

 Image Credits: David Teten

At Versatile VC, we’ve used all these models. We are soon launching Founders’ Next Move, a selective, free community for founders researching their next move, which will be a key tool for working with outside talent.

The simplest path forward is to identify funds in your industry of expertise and reach out. You can explore all of the models below with them. First, start by identifying the firms that invest in companies that you’ve worked with. Then, more broadly, look for investors in the industries in which you have expertise. You can identify institutional investors through one of multiple online databases:

All investors Private equity Venture capital
Preqin (free demo)

Grey House (free demo)

S&P Global Market Intelligence

Pratt’s Guide

Thomson One

PitchBook (free trial)

PrivateEquityFirms.com
(free trial)

Eurekahedge

AngelList (free)

CrunchBase (free)

PWC MoneyTree (free)

VentureDeal (free trial)

Asian Venture Capital Journal (free trial)

Let’s take a look at the different ways you can work with the investment community.

Expert networks

Expert network firms source subject matter experts from various domains and pair them with clients seeking topical or industry insights. They typically charge clients up to $1,200 per hour, and pay the expert $100 to $500 an hour. I founded Circle of Experts, an expert network that I sold to Evalueserve.

The expert network industry has grown an average 4.5% annually between 2015 and 2020, its market size topping $1.3 billion in 2020. While the major clients were initially hedge funds and private equity firms, consulting firms now comprise 32% of total demand for expert network services.

Inex One, an expert network marketplace, has compiled a list of 80 expert networks, summarized in the graphic below:

80 expert networks

Image Credits: Inex One and Integrity Research

The largest expert networks include: GLG, which accounts for approximately 50% of the industry’s revenue; AlphaSights is the second biggest generalist expert network; Guidepoint services six major categories of clients globally across several industries; and Third Bridge hires and retains talent to “democratize the world’s human insights and upend the traditional research model.”

Other notable expert networks include Atheneum Partners, Coleman Research Group, Dialectica, ENG, Lynk Global, Mosaic, PreScouter, ProSapient and Tegus. There are also expert networks with sector or geography specialization. For example, SERMO is a global social media network for physicians to exchange knowledge and share challenging patient cases, and Clarity.fm connects startups to experts in building new businesses.

News: Rideshare drivers gather in NYC in hopes of unionizing

Protesters gathered in bright red t-shirts and matching masks bearing the Independent Drivers Guild logo. Placards bearing slogans like “Freeze Hiring, Reactive Workers Now!” and “Unlock Uber” were being handed out at a table toward the entrance. What the gathering lacked in sheer numbers, it made up with enthusiasm. A wide range of speakers approached

Protesters gathered in bright red t-shirts and matching masks bearing the Independent Drivers Guild logo. Placards bearing slogans like “Freeze Hiring, Reactive Workers Now!” and “Unlock Uber” were being handed out at a table toward the entrance. What the gathering lacked in sheer numbers, it made up with enthusiasm.

A wide range of speakers approached the podium — IDG members, drivers, local and prospective politicians. Nearly every speech was followed by a spirited call and response from the crowd, culminating in pro-union chants.

Previous protests have found drivers opting for other locations — perhaps most notably in 2019, when Brooklyn Bridge traffic toward the mayor’s residence at Gracie Mansion was slowed to a crawl. Today’s location was perfectly suited for such an event.

Image Credits: Brian Heater

The gathering was framed by the Falchi Building, a large office space in Queens, New York, housing some 36,000 square feet of Uber offices. The neighborhood of Long Island City has long served as an epicenter for the city’s ridesharing operations. Lyft has offices nearby, as does the Taxi Limousine Commission (TLC). Walk down a block or two and you’ll almost certainly stumble across rows upon rows of yellow cabs.

The concerns of gig workers are nothing new, of course, but today’s crowd gathered in Long Island City, Queens to add support to a proposed bill currently making its way through the state legislature in Albany. The legislation is designed to make it easy for gig economy workers in the state to unionize.

“Currently, the gig workers have no voice in their workplace. No voice to negotiate pay or benefits of workplace policies,” bill sponsor state Sen. Diane Savino of Staten Island explained in a recent interview. “And I have been talking about this issue for several years now. The world of work is changing, and labor law has not caught up to technology and how it has changed the world of work.”

Image Credits: Brian Heater

Such legislation would have a profound impact on not just ride-hailing apps like Uber and Lyft, but also a wide range of gig economy jobs, including food delivery services like Seamless. The gig economy has experienced explosive growth over the past decade, in many cases accelerated by the pandemic, as more people have relied on delivery and other services amid shutdowns. But the complaints remain the same: As corporations thrive on the backs of contractors, these workers too seldom receive the benefit of that growth.

The already complex math of being a driver in a city like New York is further compounded by a series of regulations that largely exist to support its once-thriving taxi business.

Tamina Ahmed, a member of the NYC Rideshare Club and registered nurse who has also worked as a driver for six years, cites the flexible hours as a net benefit for workers, but notes the rather intensive process required to start driving in NYC.

Image Credits: Brian Heater

“That takes a lot time, funds and energy for the drivers,” Ahmed told TechCrunch after speaking at the event. “They have to sacrifice to get to this point, and it’s not right for them to be deactivated without cause. They don’t give valid reason. They just deactivate them. They’re never on the driver’s side. They’re always on the rider’s side.”

The group present at the protest seems optimistic about Savino’s proposed legislation. The ability to unionize brings certain protections to gig workers, include wages, discrimination protection and unemployment benefits. The latter is even more timely these days, as some one million gig employees in 20 Republican-controlled states will be losing Pandemic Unemployment Assistance (PUA) benefits soon. Prop 22, which passed in California last November, has been seen as another major precedent setting legislation for the industry.

With the legislative session ended this month, many are expecting action on Savino’s proposed bill. But not everyone is thrilled with what it offers. “[T]he biggest concern I have is that workers won’t have employee status,” State Senate Labor Committee Chair Jessica Ramos told NY1. “And more than that, Uber and Lyft drivers’ pay would be slashed in half. It’s very unfortunate that they crafted this bill without the workers at the table.”

We’ve reached out to Savino’s office for additional comment.

Image Credits: Brian Heater

Among those I spoke with at the event, employee status wasn’t high on the list of demands. In fact, a number of drivers told me that the flexibility the current model affords them. Ramos’ name appeared on a number of the protest placards at the event, largely in a negative light. It’s a complex issue, certainly — only exacerbated by the large number of residents any legislation would impact. The rise of the gig economy has brought a number of key questions relating to the connection between worker protections and employee status to the fore.

What seems clear across the board, however, is that these drivers — and other gig economy workers — are seeking what, in many other industries, have become fairly fundamental protections. Of late, unionization has become a major talking point for blue and white-collar workers, alike. Efforts have seen a number of wins over the past few years, though April’s failure to unionize employees at Amazon’s warehouse in Bessemer, Alabama has been seen as a major setback for the cause.

Like those workers, the list of complaints among drivers is long. When a speaker at today’s event asked the crowd how many in attendance had had their accounts deactivated, the response was overwhelming. Many believed the decisions were made fairly arbitrarily.

Image Credits: Brian Heater

“A lot of drivers are falsely being accused, deactivated, thrown out of all these rideshare companies that they invested so much money on,” Ahmed said.

The Independent Drivers Guild — which organized today’s event along with the NYC Rideshare Club and the Chinese Delivery Association — isn’t mincing words.

“By helping drivers through deactivated systems, we realized only a true union can solve that problem,” Aziz Bah, IDG organizing director, told TechCrunch. “We decided to unionize. We will let the companies know what our plans are. They had better be behind our proposal. Because this is no negotiation. If this is what drivers and delivery workers want, they had better be behind it.”

News: FireEye to sell products unit to Symphony-led group for $1.2B

Cybersecurity giant FireEye has agreed to sell its products business to a consortium led by private equity firm Symphony Technology Group for $1.2 billion. The all-cash deal will split FireEye, the maker of network and email cybersecurity products, from its digital forensics and incident response arm Mandiant. FireEye’s chief executive Kevin Mandia said the deal

Cybersecurity giant FireEye has agreed to sell its products business to a consortium led by private equity firm Symphony Technology Group for $1.2 billion.

The all-cash deal will split FireEye, the maker of network and email cybersecurity products, from its digital forensics and incident response arm Mandiant.

FireEye’s chief executive Kevin Mandia said the deal unlocks its “high-growth” Mandiant business, allowing it to stand alone as a separate business running incident response and security testing.

The move to split the two companies comes almost a decade after FireEye acquired Mandiant, and made Mandia chief executive.

Mandia said: “STG’s focus on fueling innovative market leaders in software and cybersecurity makes them an ideal partner for FireEye Products. We look forward to our relationship and collaboration on threat intelligence and expertise.”

STG managing partner William Chisholm said there is an “enormous untapped opportunity for the business that we are excited to crystallize by leveraging our significant security software sector experience and our market leading carve-out expertise.”

The company said the deal is expected to close by the end of the fourth quarter.

FireEye has become one of the more prominent names in cybersecurity, known for its research into hacking groups — some linked to governments — and its Mandiant unit for responding to major security incidents. Mandiant was called in to help Colonial Pipeline recover from a recent ransomware attack.

In December, FireEye admitted that its own networks had been hacked, a move praised across the cybersecurity industry for helping to speed up efforts that led to the discovery of the SolarWinds espionage attack, later attributed to Russian foreign intelligence.

FireEye becomes the latest cybersecurity giant to STG’s portfolio. In March, Symphony bought McAfee’s enterprise business for $4 billion and bought RSA for $2 billion.

News: Twitter starts rolling out Birdwatch fact checks inside tweets

Twitter is looking to crowdsource its way out of misinformation woes with its new product Birdwatch which taps a network of engaged tweeters to add notes to misleading tweets. Today, Twitter announced that they are starting to roll out the Birdwatch notes to pilot participants across iOS, Android and desktop. The company launched a pilot

Twitter is looking to crowdsource its way out of misinformation woes with its new product Birdwatch which taps a network of engaged tweeters to add notes to misleading tweets. Today, Twitter announced that they are starting to roll out the Birdwatch notes to pilot participants across iOS, Android and desktop.

The company launched a pilot version of the program back in January, describing the effort as a way to add context to misinformation in real time.

“We believe this approach has the potential to respond quickly when misleading information spreads, adding context that people trust and find valuable” Product VP Keith Coleman wrote in a blog post at the time. “Eventually we aim to make notes visible directly on Tweets for the global Twitter audience, when there is consensus from a broad and diverse set of contributors.”

That time is apparently now for an early set of Birdwatch pilot participants.

Hey there! Exciting news 🎉. Now, when you’re browsing Twitter on Android, iOS, or https://t.co/lEjTtR4BGM, you may see Tweets with Birdwatch notes. Notes will appear in a card on the Tweet. Right now, this feature is only visible to pilot participants. pic.twitter.com/dyMHgawLUl

— Birdwatch (@birdwatch) June 2, 2021

Twitter says that once Birdwatch notes are added to a tweet, users will have the opportunity to rate whether the feedback is helpful or not. If none of the replies are deemed helpful, the Birdwatch card itself will disappear, but if any notes are deemed helpful they’ll pop up directly inside the tweet.

There have been an awful lot of questions about how and whether Birdwatch will work inside the current social media framework. Using community feedback differs from more centralized efforts used by platforms like Facebook that have tapped independent fact-checking organizations. Twitter is clearly aiming to decentralize this effort as much as it can and put power in the hands of Birdwatch contributors, but with audiences of individual tweeters currently responsible for deeming the helpfulness and visibility of fact checks, it’s clear this is going to be a pretty messy solution at times.

News: With buyout, Cloudera hunts for relevance in a changing market

When Cloudera announced its sale to a pair of private equity firms yesterday for $5.3 billion, along with a couple of acquisitions of its own, the company detailed a new path that could help it drive back towards relevance in the big data market. When the company launched in 2008, Hadoop was in its early

When Cloudera announced its sale to a pair of private equity firms yesterday for $5.3 billion, along with a couple of acquisitions of its own, the company detailed a new path that could help it drive back towards relevance in the big data market.

When the company launched in 2008, Hadoop was in its early days. The open source project developed at Yahoo three years earlier was built to deal with the large amounts of data that the Internet pioneer generated. It became increasingly clear over time that every company would have to deal with growing data stores, and it seemed that Cloudera was in the right market at the right time.

And for a while things went well. Cloudera rode the Hadoop startup wave, garnering a cool billion in funding along the way, including a stunning $740 million check from Intel Capital in 2014. It then went public in 2018 to much fanfare.

But the markets had already started to shift by the time of its public debut. Hadoop, a highly labor-intensive way to manage data, was being supplanted by cheaper and less complex cloud-based solutions.

“The excitement around the original promise of the Hadoop market has contracted significantly. It’s incredibly expensive and complex to get it working effectively in an enterprise context,” Casey Aylward, an investor at Costanoa Ventures told TechCrunch.

The company likely saw that writing on the wall when it merged with another Hadoop-based company, Hortonworks in 2019. That transaction valued the combined entity at $5.2 billion, almost the same amount it sold for yesterday, two years down the road. The decision to sell and go private may also have been spurred by Carl Icahn buying an 18% stake in the company that same year.

Looking to the future, Cloudera’s sale could provide the enterprise unicorn room as it regroups.

Patrick Moorhead, founder and principal analyst at Moor Insight & Strategies sees the deal as a positive step for the company. “I think this is good news for Cloudera because it now has the capital and flexibility to dive head first into SaaS. The company invented the entire concept of a data life cycle, implemented initially on premises, then extended to private and public clouds,” Moorhead said.

Adam Ronthal, Gartner Research VP agrees that it at least gives Cloudera more room to make necessary adjustments its market strategy as long as it doesn’t get stifled by its private equity overlords. “It should give Cloudera an opportunity to focus on their future direction with increased flexibility — provided they are able to invest in that future and that this does not just focus on cost cutting and maximizing profits. Maintaining a culture of innovation will be key,” Ronthal said.

Which brings us to the two purchases Cloudera also announced as part of its news package.

If you want to change direction in a hurry, there are worse ways than via acquisitions. And grabbing Datacoral and Cazena should help Cloudera alter its course more quickly than it could have managed on its own.

“[The] two acquisitions will help Cloudera capture some of the value on top of the lake storage layer — perhaps moving into different data management features and/or expanding into the compute layer for analytics and AI/ML use cases, where there has been a lot of growth and excitement in recent years,” Alyward said.

Chandana Gopal, Research Director for the future of intelligence at IDC agrees that the transactions give Cloudera some more modern options that could help speed up the data wrangling process. “Both the acquisitions are geared towards making the management of cloud infrastructure easier for end-users. Our research shows that data prep and integration takes 70%-80% of an analyst’s time versus the time spent in actual analysis. It seems like both these companies’ products will provide technology to improve the data integration/preparation experience,” she said.

The company couldn’t stay on the path it was on forever, certainly not with an activist investor breathing down its neck. Its recent efforts could give it the time away from public markets it needs to regroup. How successful Cloudera’s turnaround proves to be will depend on whether the private equity companies buying it can both agree on the direction and strategy for the company, while providing the necessary resources to push the company in a new direction. All of that and more will determine if these moves pay off in the end.

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