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News: EU fines BMW, VW $1B for running emissions cartel since the 90s

As environmental issues really came of age in the 1990s, certain German automakers were meeting in secret groups to make sure their cars would continue to industriously contribute to greenhouse gas emissions. According to the European Union, Volkswagen, Audi, Porsche, BMW and Mercedes-Benz parent company Daimler have been illegally colluding to restrict competition in emission

As environmental issues really came of age in the 1990s, certain German automakers were meeting in secret groups to make sure their cars would continue to industriously contribute to greenhouse gas emissions. According to the European Union, Volkswagen, Audi, Porsche, BMW and Mercedes-Benz parent company Daimler have been illegally colluding to restrict competition in emission cleaning for new diesel passenger cars, essentially slowing the deployment of cleaner emissions tech. On Thursday, the EU issued fines of $1 billion (€875 million) to Volkswagen and BMW for their involvement in the emissions cartel.

“The five car manufacturers Daimler, BMW, Volkswagen, Audi and Porsche possessed the technology to reduce harmful emissions beyond what was legally required under EU emission standards,” said executive VP of the EU Commission Margrethe Vestager in a statement. “But they avoided to compete on using this technology’s full potential to clean better than what is required by law. So today’s decision is about how legitimate technical cooperation went wrong. And we do not tolerate it when companies collude. It is illegal under EU Antitrust rules. Competition and innovation on managing car pollution are essential for Europe to meet our ambitious Green Deal objectives. And this decision shows that we will not hesitate to take action against all forms of cartel conduct putting in jeopardy this goal.”

All parties acknowledged their involvement and agreed to settle. Volkswagen, which owns Audi and Porsche, will have to pay around $595 million, and BMW will pay $442 million. Daimler would have had to pay around $861 million, but the company is evading fines by being the whistleblower. So we guess Daimler just gets off scot-free?

BMW made a net profit of $4.62 billion last year, and VW made about $12.2 billion and nearly $23 billion in 2019, so this fine sort of feels like a slap on the wrist. And let us remember, this is not the first time VW has gotten into an emissions scandal.

In 2015, the U.S. Environmental Protection Agency issued a notice of violation of the Clean Air Act to VW for intentionally adding software into its diesel engines to make it look like it was following emissions controls, when in reality its cars were actually producing far more than the legal amount.

In its action against the companies, the EU specifically homed in on the agreement reached by the companies on the sizes of tanks used for AdBlue, a solution that mixes with diesel car exhaust to neutralize harmful pollutants. The companies agreed not to compete on making cars cleaner even though they had the tech to do so.

Der Spiegel first broke the news about the cartel in 2017, and the companies set to work greenwashing. In the same year, all of the involved parties, as well as Ford Motor Company, joined forces to create a high-power charging network for EVs called Ionity. The plan was to build and operate around 400 charging stations across Europe by 2020, but it looks like Ionity only managed to install 300 across Europe, and it even significantly increased the price of a charge by 500% last year.

Earlier this week, VW’s heavy-truck business, the Traton Group, Daimler Truck and Volvo group joined up to invest nearly $593 million in a network of public charging stations for electric heavy-duty long-haul trucks and buses around Europe.

 

 

News: Halo will launch a remotely operated car service powered by 5G in Las Vegas

5G technology has generated a lot of hype for its potential to power driverless cars using a remote operator, but for the past few years that’s all it’s been — hype. Las Vegas-based startup Halo and telecom giant T-Mobile are teaming up to change that, with a driverless electric car service in Las Vegas powered

5G technology has generated a lot of hype for its potential to power driverless cars using a remote operator, but for the past few years that’s all it’s been — hype. Las Vegas-based startup Halo and telecom giant T-Mobile are teaming up to change that, with a driverless electric car service in Las Vegas powered on 5G to launch later this year.

The service, which will start with five vehicles, will work by connecting users to Halo’s pilot fleet of vehicles via an app. After a user has ordered a vehicle, a remote operator will drive it to the waiting customer. Once the car is delivered, the user can get behind the steering wheel and operate the vehicle as normal for the duration of their trip. When the trip is complete, the remote operator takes back over and drives it to the next waiting customer.

Halo departs significantly from companies like Waymo or Cruise, which are developing a full self-driving technology stack that aims to completely remove the human — remote or in-car — from the equation. Instead, Halo vehicles will be equipped with nine cameras, radars and ultrasonics as backup (no lidar), and it will connect to remote operators via T-Mobile’s Ultra Capacity midband 5G network.

Halo CEO Anand Nandakumar told TechCrunch that the service can also run on extended range low-band 5G network and on LTE as needed.

Halo said in a press release that its cars will be equipped with an algorithm that “learns in the background while humans control the vehicle, building a unique feedback loop to achieve Level 3 capabilities over time,” suggesting that the company has its sights set on autonomy in the long term. (“Level 3” refers to the Society of Automotive Engineers’ five levels of autonomous driving. L3 indicates features that allow the driver to be out of the loop under very limited conditions.)

“Full autonomy is a massive challenge from both a technical and social-trust perspective that won’t be solved for years to come,” Nandakumar said in the release. “But Halo has been designed to address these challenges by building automation over time starting with a solution that consumers will feel comfortable using today.”

The startup also said its vehicles will be equipped with an advanced safe stop mechanism, which will immediately bring cars to a full stop if a potential safety hazard is detected.

Last year, Halo joined the 5G Open Innovation Lab T-Mobile co-founded, giving the startup access to the telecom’s engineers and midspectrum network. Nandakumar declined to specify if T-Mobile is one of the company’s investors.

News: Daily Crunch: Indian food delivery startup Zomato will seek post-IPO valuation up to $8.6B

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 July 8, 2021. Forget about Hot ___ Summer. It’s Hot IPO Summer in technology land, and today’s news underscores just how inviting the global exit market is proving to be.

But before we get into the TechCrunch Top 3, the good news from the site is that our latest super-deep company teardown, or EC-1, is live. This time, we looked at NS1, a company that we wrote is building “a strategic node at the core of the modern web delivery tech stack.” The whole series is fire. — Alex

The TechCrunch Top 3

When we said it was IPO season, we weren’t kidding. Here’s the day’s biggest exit news, which has a theme, as you’ll see:

  • Instacart hires new CEO as it preps to go public: Big news from the world of grocery delivery today as longtime Instacart CEO and co-founder Apoorva Mehta promoted himself to chairman of the company’s board. Facebook exec Fidji Simo is taking the helm. Back during my first stint at TechCrunch, Mehta would send me Facebook messages when his company added new Bay Area markets. How times change!
  • India’s Zomato sets IPO price range: The day’s other big news from the world of delivery comes from India’s Zomato, which will price its IPO “shares in the range of 72 Indian rupees (96 cents) to 76 ($1) and is targeting an upper limit valuation of $8.56 billion,” TechCrunch reports.
  • Crypto-powered Circle is going public via a SPAC: If you are a crypto-minded person, you’ve heard of Circle. If you aren’t, it’s the company that bought SeedInvest and is helping build stablecoin USDC. It’s going public via a SPAC at a multibillion-dollar valuation. Call it riding the Coinbase wave.

Startups/VC

Flipping the script and going back to the earlier stages of startup life, here’s a rundown of news from startup land:

  • PowerZ raises $8.3M to fuse gaming and education: The French startup is both a gaming company and edtech startup. The startup thinks that “educational games will become mainstream really quickly,” TechCrunch reports. This makes sense: I have learned more about the Middle Ages from Crusader Kings III than any book I’ve read.
  • Rootly raises $3.2M to bring SRE tooling into Slack: Look, we all live inside of Slack or Teams, so why not bring more functionality into the services? Rootly wants to bring “an incident-response solution inside” of the work platform that Salesforce is buying. The round and company are neat, as is the fact that startups are building atop Slack itself.
  • Z1 wants to bring fintech to LatAm zoomers: Homebrew is putting early-stage money to work in Latin America in hopes that Z1 can mimic what Nubank has managed in the region, namely build a fintech titan and raise a zillion dollars. Per TechCrunch, Z1 was a recent Y Combinator grad, which means that Homebrew acquired around 0.8 bips worth of equity in the $2.5 million the transaction. We kid.
  • Popshop Live raises $20M for modern QVC: Now worth around $100 million, Popshop Live has built a “standalone business that taps into the millennial taste for shopping from smaller and more edgy brands and individuals as much as bigger retailers.” With new capital and retailer momentum, it’s a startup to watch.
  • Smile Identity raises $7M Series A to verify identities: Focused on the African market, Smile Identity has put together a lettered round for KYC and ID services on the continent. TechCrunch reports that Costanoa Ventures co-led the deal with CRE Venture Capital.

To close out, Natasha scooped that “Peter Boyce II has left General Catalyst to start his own firm, a little over a year after the venture capital firm promoted him to partner.” It’s a busy week for new venture funds, with Acrylic and Renegade also making news.

The NS1 EC-1

For the latest entry in our series of long-form articles that explore the inner workings of notable startups, we looked at NS1, an internet infrastructure company best known for its software-defined domain name services (DNS).

Part 1: Origin story: How three engineers decided to rebuild the internet’s core addressing system.

Part 2: Product development and roadmap: Experimentation, open-source efforts and expanding beyond DNS.

Part 3: Competitive landscape: A look at the broader internet infrastructure market.

Part 4: Customer development: How their top competitor’s stumble became “the gift that kept on giving.”

If you’re curious about how NS1 transformed “a slumbering and dreary yet reliable aspect of the internet” into “a strategic moat and an enterprise win” in just eight years, read on.

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

Big Tech Inc.

A few notes from Big Tech before we wrap our news coverage. Enjoy:

  • Dropbox reinvents work(places): No, not in the product sense, but in terms of how it is approaching offices as COVID slowly wanes. The result? Something that looks more like a fancy, private coffee spot than an office. I demand that all companies mimic this immediately.
  • Tendies from $BYND: Yep, Beyond Meat has launched plant-based “chicken” tenders at some 400 U.S. restaurants. The company, long a public firm and thus befitting of our Big Tech moniker, has had a tumultuous life since it went public. Its shares have traded as high as $239 since it debuted. Today, the company is still worth a healthy $140 per share, far above its original $25 IPO price.

TechCrunch Experts: Growth Marketing

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Image Credits: SEAN GLADWELL (opens in a new window) / Getty Images

TechCrunch wants to help startups find the right expert for their needs. To do this, we’re building a shortlist of the top growth marketers. We’ve received great recommendations for growth marketers in the startup industry since we launched our survey.

We’re excited to read more responses as they come in! Fill out the survey here.

Our editorial coverage about growth marketing includes articles from the TechCrunch team, guest columns and posts like “Demand Curve: 10 lies you’ve been told about marketing” by Nick Costelloe on Extra Crunch. If you’re interested in writing a column, learn more here.

News: Demand Curve: How to double conversions on your startup’s homepage

Want to convert twice as many visitors into customers? Follow these copywriting tactics.

Nick Costelloe
Contributor

Nick writes actionable growth marketing insights as head of content at Demand Curve.

Between our work at Demand Curve and our agency, Bell Curve, we’ve rewritten over 1,000 websites for startups across most industries.

Want to convert twice as many visitors into customers? Follow these copywriting tactics.

Everything “above the fold” must have a purpose

The section of your homepage that’s immediately visible to a visitor before they start scrolling is called “above the fold.” (Think of a print newspaper: Everything above the literal fold in the paper is the most important information.) When a visitor sees the content above the fold, they decide to either keep scrolling or exit your site.

In seconds, they’re trying to figure out what you do and whether you’re a fit for them.

The most common mistake we see startups make? Their “above the fold” is either uninteresting or confusing. This often happens when marketers attempt to squeeze too much content above the fold.

The most common mistake we see startups make? Their “above the fold” is either uninteresting or confusing.

The truth is, most of the information on your website is irrelevant to new visitors. So the area above the fold should be used to explain how you can help new visitors solve a specific problem.

For example, you might see a homepage that promotes the newest technical blog post that the company published. But that’s not useful to a visitor who doesn’t yet understand what you do.

To further confuse the visitor, many companies add an extensive navigation bar to the top of their site. In theory, this allows your visitors to easily access any part of your website. In practice, it leads to decision fatigue and low conversion rates.

Unless the content directly helps answer what you do and whether you’re a good fit for that visitor, it should be removed.

There are three things you can do to improve the conversion rate of your homepage:

  1. Craft a sharp header.
  2. Use a complementary subheader.
  3. Design with intention.

Let’s get into the tactics of these three areas of improvement.

Help TechCrunch find the best growth marketers for startups.

Provide a recommendation in this quick survey and we’ll share the results with everybody.

Write headers that speak to an individual (not a crowd)

Your header is the largest piece of text on your website. In under 10 words (about the longest we’d recommend), your header needs to accomplish three things:

1. Identify how customers get value from your product.

This is your most important value proposition. If you can’t explain how someone gets value from your product in fewer than 10 words, it’ll be a challenge to keep visitors’ attention for much longer.

Here’s how we uncover your key value proposition:

  • What bad alternative do people resort to when they lack your product?
  • How is your product better than the bad alternative?
  • Now turn the last step into an action statement — that’s your value proposition.

Take Airbnb:

  • The bad alternative is being stuck in a sterile hotel without experiencing any real culture.
  • Airbnb’s product is better than the bad alternative because it allows you to stay in a local’s home.
  • So if we turn the second question into an action statement, we’d get a value proposition like: Experience new cities like a local.

Here are some more examples from top startups:

Image Credits: Demand Curve

2. Include an enticing hook that keeps visitors reading.

Telling your visitors what you do is a good start, but now we need to get them excited about your product.

A huge missed opportunity we see a lot of startups make with their website copy? It’s not action oriented. In a world where customers can shop 24/7, there’s very little urgency for your visitors to take action now.

Adding a hook will increase the likelihood that a visitor buys from you on their first visit.

There are two ways we like to write hooks:

  • Offer a bold claim: something highly specific that triggers the thought, “Wow, I didn’t know that was possible.”

Image Credits: Demand Curve

  • Or address common objections: questions or pushback that your visitor is likely already thinking about. Addressing objections right away might seem counterintuitive, but bringing attention to your weaknesses will actually make your visitor trust your brand more. With no direct sales team, your copy is going to need to work hard to answer as many questions as possible.

Here are some value propositions of top startups that incorporate their biggest objections upfront.

Image Credits: Demand Curve

3. Speak directly to your ideal customer persona

To truly make the message in your header grab the attention of your visitor, rewrite your value proposition to speak directly to your customer personas.

To do so, list your top two to three customer personas. Rewrite your headers to address the part of your product they value most. Use their own language, not industry jargon. The best way to learn what your customers love about your product is through one-on-one customer interviews or reading customer success tickets.

Now you’ve got headers that speak directly to your ideal customer persona. You can either A/B test which header leads to a higher conversion rate or create custom landing pages using each header to drive traffic from different sources to specific pages.

For example, if you include a link to your website in a guest blog post, send that audience to the page with the most relevant header.

Here are some examples of writing multiple value propositions for the same startup:

Image Credits: Demand Curve

Use a subheader to explain how your header can be possible

We suggest spending about 50% of your time working on writing the header and 25% of your time on the subheader. Why? Because if your header isn’t interesting, your visitors won’t even bother reading the subheader.

Your subheader should be used to expand on two things:

  1. How does your product work exactly?
  2. Which of your features make our header’s bold claim believable?

You can use your top two to three features to explain how your header is achieved.

For example, let’s say Airbnb’s header is: Experience your getaway vacation like a local. No minimum stays.

To make this statement believable, we need to explain how it’s possible to vacation like a local and how “no minimum stays” is possible.

A subheader could read something like: An online rental marketplace with thousands of short-term rentals in your area.

Do not use industry jargon or technical terms in your subheader or header. Use words that a fifth-grade reader would understand. Use short sentences. Lengthy paragraphs will kill the momentum of your reader.

Here are a few more examples of using the subheader to explain the header:

Image Credits: Demand Curve

Make your homepage feel familiar and function as expected

The last aspect to consider when creating a high-converting homepage is the design. We see a lot of high-tech startups try to use their website to show off their creativity.

From our experience, your website is not the place to try to be original.

A website’s design should rarely be unique. It’s your product that should be unique. Your website is just a familiar medium for communicating your product’s uniqueness.

Functionality

Using familiar buttons and navigation that other websites have popularized will save your visitor the hassle of having to learn how your website works. For example, we’ve come to expect there to be a “home” button in the top left of the page. Attempting to place the same button in the bottom right for the sake of uniqueness will lead to confusion and possibly a lost customer. Stick with what works.

Images

Consider these goals when adding images to your homepage:

  • Remove uncertainty by showing your product in action. GIFs or looping videos are a terrific way of demonstrating how it works without taking up any additional space.

    Image Credits: Judy

  • If you sell physical goods, use images to show off various use cases and close-ups of the material and texture. This will help your visitor assess the quality of the product and further validate that the product is right for them.

Image Credits: Allbirds

Call-to-action buttons

Your call-to-action buttons (CTA) are where you’ll convert a visitor of your webpage into an active shopper. Therefore, your CTAs should be a continuation of the magic that you teased in your header copy.

Make the CTA button copy action focused and tell your visitor what will happen once they click it.

Here are some examples of CTA buttons that feel natural because they continue the narrative that began with the header copy:

Image Credits: Demand Curve

News: Can advertising scale in VR?

Bottom line: VR usage needs more scale before ad revenue makes a dent.

Michael Boland
Contributor

Mike Boland is chief analyst of ARtillery Intelligence, an AR/VR research firm.
More posts by this contributor

One of VR’s prospective revenue streams is ad placement. The thought is that its levels of immersion can engender high engagement with various flavors of display ads. Think billboards in a virtual streetscape or sporting venue. Art imitates life, and all that.

This topic reemerged recently in the wake of Facebook’s experimental ads in Blaston VR. As TechCrunch’s Lucas Matney observed, it didn’t go too well. The move triggered a resounding backlash, followed by the game publisher, Resolution Games, backing out of the trial.

This chain of events underscored Facebook’s headwinds in VR ad monetization, which stem from its broader ad issues. In fairness, this was an experimental move to test the VR advertising waters … which Facebook accomplished, though it didn’t get the result it wanted.

VR advertising is a bit of a double-edged sword. It could take several years for VR usage to reach requisite levels for meaningful ad monetization.

Regardless, we’ve taken this opportunity to revisit our ongoing analysis and market sizing of VR advertising in general. The short version: There are pros and cons on both qualitative and quantitative levels.

The pros of VR advertising

VR advertising’s opportunity goes back to factors noted above: potentially high ad engagement given inherent levels of immersion. On that measure, VR exceeds all other media, which can mean higher-quality impressions, brand recall and other common display-ad metrics.

Historical evidence also suggests that VR could follow a path toward ad monetization. VR shows similar patterns to media that were increasingly ad supported as they matured. These include video, social media, mobile apps and games (just ask Unity).

To put some numbers behind that, 75% of apps in the Apple App Store’s first year were paid apps — similar to VR today. That figure declined to 15% in 2014 and hovers around 10% today. Over time, developers learned they could reach scale through free downloads.

Prevalent revenue models today include in-app purchases — especially in mobile gaming — and advertising. The question is whether VR will follow a similar path as developers learn that they can reach scale faster through free apps that employ “back-end monetization” like ad support.

This trend also follows audience dynamics: Early adopters are more likely to pay for content and experiences. But as a given technology or media matures, its transition to mainstream audiences requires different business models with less upfront commitment and friction.

“Today, there are only about 18% of applications in VR stores such as Steam and Oculus that are free,” Admix CEO Samuel Huber said. “This is fine for now because we are still very early in the market and most of these users are early adopters. They are willing to pay for content, just like they were willing to pay for prototype unproven hardware and generally, they have higher purchasing power than the average person.”

Drawbacks of VR advertising

Considering the above advantages, VR advertising is a bit of a double-edged sword (or beat saber). Those advantages are counterbalanced by a few practical disadvantages in the medium’s early stage. Much of this comes down to the requirement for scale.

News: Gillmor Gang: TV Clubhouse

The Gang spends a lot of time these days on the streaming wars, so it seems appropriate that Congress wants to get into it. With Netflix’s success at overturning the structure of Hollywood’s broadcast television production and advertising processes, consumers are taking advantage of a Golden Age of choices. Senator Elizabeth Warren is resuscitating her

The Gang spends a lot of time these days on the streaming wars, so it seems appropriate that Congress wants to get into it. With Netflix’s success at overturning the structure of Hollywood’s broadcast television production and advertising processes, consumers are taking advantage of a Golden Age of choices. Senator Elizabeth Warren is resuscitating her plan to tax the billionaire class as a way to fund the progressive part of the infrastructure bill through the Democrat-only reconciliation process. As bait, she is using Amazon’s MGM acquisition as the carrot, suggesting the deal would be anti-competitive and dilutive of consumer choice. Coming as streaming passes broadcast as a percentage of the entire television market, it’s not clear just what consumers are going to lose with a smorgasbord of captivating programming choices.

The streaming heavyweights are in the throes of a transition from building audience to locking in paying customers. Netflix has jumped way out in front with an enormous audience fueling an equally gigantic investment in original programming. Apple TV+ has blinked earliest, moving their free trial of a year with a new Apple device purchase to 3 months, barely long enough to get halfway through the second season of their hit The Morning Show. Similar Disney+ deals with Verizon Wireless unlimited broadband upgrades are starting to time out as Disney tries to survive the pandemic’s impact on theme park revenue and steep costs of moving newly acquired properties from theaters to streaming, And then there are the rest of the old studio and network players, trying to build enough scale to compete with the leaders. Comcast consumed NBC and Universal Studios, CBS and Viacom merged to knit together broadcast, cable networks, and Paramount studios, now renamed Paramount +. And reality TV giant Discovery absorbed the remnants of WarnerMedia’s scripted studio and cable operation as AT&T backed away from content to pay for investment in 5G.

Ironically, ad-supported networks may turn out to be where the real action is. Although streaming subscribers are running up against a budget cap as they opt out of cable bundles, their antipathy for advertising is finessed by some midtier networks like Hulu and Paramount + mixing some ads with subscriptions at a reduced monthly charge. Comcast is already managing that transition with HBO Max, bundling the new streaming network with basic cable packages that include the HBO premium service. Combining HBO’s pre-pandemic windowed, or delayed from theatrical release feature films with original series programming is one thing: adding a monthly new feature simultaneously with theatrical release for all of 2021 has proven a powerful way of attracting new HBO Max subscribers in the battle for streaming. While the strategy will moderate in 2022 as theaters reopen, movie-goers are learning to appreciate the marriage of smaller titles with the convenience of subscription television.

Although big budget films like F9 are enjoying considerable success theatrically, smaller films like Parasite and other streaming releases are winning Oscars and other awards. Films have been eligible for Oscars and Golden Globes without the requirement of theatrical runs during the pandemic, and will continue for at least one more year. The HBO Max theater/digital gambit angered producers and talent with its bold move made easier during 2020’s lockdown, but WarnerMedia CEO Jason Kilar was apparently the loser in AT&T’s Discovery/WarnerMedia deal as Discovery’s CEO David Zaslav was picked to run the combined company. But audiences may find more affinity with popcorn at home than the distributors expect as vaccinations take root. Kilar may have bootstrapped a look at what success will mean in the New Normal similar to what companies are saving in travel and facilities costs as we incorporate the strengths of work/play-from-anywhere and the mobile transformation.

The ad streamers bring more to the party than just subscriber discounts. While Netflix has made hay with binge viewing (dumping an entire season of shows at one time) ad streamers are using a hybrid of binge production and broadcast-style staged release as a way of updating the feel of appointment television with Peak TV dynamics. Using the weekly series model a la This Is Us and Gray’s Anatomy, shows like Paramount +‘s The Good Fight are released on a weekly basis with the release night staggered across the key nights of the week. Instead of browsing the TV Guide, you get a notification that the new episode has “dropped.” In effect, the linear tv schedule so beloved by advertisers and marketers is creating a new prime time schedule across the variety of streaming networks. With constant mergers and realignment of studios, cable assets, and streaming models, we already don’t have a clue what network is screening our new shows let alone what the network is called this week, so mobile messaging becomes the point of sale for sharing digital experiences. With cable giants like Comcast deriving more and more broadband customers as cable cutting persists, and set top boxes like AppleTV and Roku smart tvs capturing more scale and competing for a combination of ad-supported and original programming, the built in microphone on their remotes leapfrogs the vanished TV guides with audio commands that require only the name of the show or even the name of the favorite star.

The creator economy is experiencing a surge of services across the social networks. Newsletters, conversational audio sites, and new notification services from Apple are promoting media to support these AI-driven user rankings of the new Hollywood streaming winners. Apple’s notification summary screens in iOS 15 effectively present a way to organize a personalized digest of show notifications, freeing you from interrupting work to track the weekly dropping of favorite shows. It won’t be long before Twitter and other newsletter tools let you broadcast those alerts to special groups you define for watercooler-like conversations about the latest spoilers. Clubhouse and other social audio rooms will invite media analysts, showrunners, and stars to interact with these newly empowered fans, and some of the more proficient will graduate to subscription newsletter recaps and transcribed interviews. Advertisers will sponsor these streams, expanding the impact of the intersection of subscription and ad-supported hybrid services.

from the Gillmor Gang Newsletter

__________________

The Gillmor Gang — Frank Radice, Michael Markman, Keith Teare, Denis Pombriant, Brent Leary and Steve Gillmor. Recorded live Friday, June 18, 2021.

Produced and directed by Tina Chase Gillmor @tinagillmor

@fradice, @mickeleh, @denispombriant, @kteare, @brentleary, @stevegillmor, @gillmorgang

Subscribe to the new Gillmor Gang Newsletter and join the backchannel here on Telegram.

The Gillmor Gang on Facebook … and here’s our sister show G3 on Facebook.

News: Evernote quietly disappeared from an anti-surveillance lobbying group’s website

In 2013, eight tech companies were accused of funneling their users’ data to the U.S. National Security Agency under the so-called PRISM program, according to highly classified government documents leaked by NSA whistleblower Edward Snowden. Six months later, the tech companies formed a coalition under the name Reform Government Surveillance, which as the name would

In 2013, eight tech companies were accused of funneling their users’ data to the U.S. National Security Agency under the so-called PRISM program, according to highly classified government documents leaked by NSA whistleblower Edward Snowden. Six months later, the tech companies formed a coalition under the name Reform Government Surveillance, which as the name would suggest was to lobby lawmakers for reforms to government surveillance laws.

The idea was simple enough: to call on lawmakers to limit surveillance to targeted threats rather than conduct a dragnet collection of Americans’ private data, provide greater oversight and allow companies to be more transparent about the kinds of secret orders for user data that they receive.

Apple, Facebook, Google, LinkedIn, Microsoft, Twitter, Yahoo and AOL (to later become Verizon Media, which owns TechCrunch — for now) were the founding members of Reform Government Surveillance, or RGS, and over the years added Amazon, Dropbox, Evernote, Snap and Zoom as members.

But then sometime in June 2019, Evernote quietly disappeared from the RGS website without warning. What’s even more strange is that nobody noticed for two years, not even Evernote.

“We hadn’t realized our logo had been removed from the Reform Government Surveillance website,” said an Evernote spokesperson, when reached for comment by TechCrunch. “We are still members.”

Evernote joined the coalition in October 2014, a year and a half after PRISM first came to public light, even though the company was never named in the leaked Snowden documents. Still, Evernote was a powerful ally to have onboard, and showed RGS that its support for reforming government surveillance laws was gaining traction outside of the companies named in the leaked NSA files. Evernote cites its membership of RGS in its most recent transparency report and that it supports efforts to “reform practices and laws regulating government surveillance of individuals and access to their information” — which makes its disappearance from the RGS website all the more bizarre.

TechCrunch also asked the other companies in the RGS coalition if they knew why Evernote was removed and all either didn’t respond, wouldn’t comment or had no idea. A spokesperson for one of the RGS companies said they weren’t all that surprised since companies “drop in and out of trade associations.”

The website of the Reform Government Surveillance coalition, which features Amazon, Apple, Dropbox, Facebook, Google, Microsoft, Snap, Twitter, Verizon Media and Zoom, but not Evernote, which is also a member. Image Credits: TechCrunch

While that may be true — companies often sign on to lobbying efforts that ultimately help their businesses; government surveillance is one of those rare thorny issues that got some of the biggest names in Silicon Valley rallying behind the cause. After all, few tech companies have openly and actively advocated for an increase in government surveillance of their users, since it’s the users themselves who are asking for more privacy baked into the services they use.

In the end, the reason for Evernote’s removal seems remarkably benign.

“Evernote has been a longtime member — but they were less active over the last couple of years, so we removed them from the website,” said an email from Monument Advocacy, a Washington, D.C. lobbying firm that represents RGS. “Your inquiry has helped to prompt new conversations between our organizations and we’re looking forward to working together more in the future.”

Monument has been involved with RGS since near the beginning after it was hired by the RGS coalition of companies to lobby for changes to surveillance laws in Congress. Monument has spent $2.2 million in lobbying to date since it began work with RGS in 2014, according to OpenSecrets, specifically on lobbying lawmakers to push for changes to bills under congressional consideration, such as changes to the Patriot Act and the Foreign Intelligence Surveillance Act, or FISA, albeit with mixed success. RGS supported the USA Freedom Act, a bill designed to curtail some of the NSA’s collection under the Patriot Act, but was unsuccessful in its opposition to the reauthorization of Section 702 of FISA, the powers that allow the NSA to collect intelligence on foreigners living outside the United States, which was reauthorized for six years in 2018.

RGS has been largely quiet for the past year — issuing just one statement on the importance of transatlantic data flows, the most recent hot-button issue to concern tech companies, fearing that anything other than the legal status quo could see vast swaths of their users in Europe cut off from their services.

“RGS companies are committed to protecting the privacy of those who use our services, and to safeguard personal data,” said the statement, which included the logos of Amazon, Apple, Dropbox, Facebook, Google, Microsoft, Snap, Twitter, Verizon Media and Zoom, but not Evernote.

In a coalition that’s only as strong as its members, the decision to remove Evernote from the website while it’s still a member hardly sends a resounding message of collective corporate unity — which these days isn’t something Big Tech can find much of.

News: Peter Boyce II has left General Catalyst to start his own $40M fund

Peter Boyce II has left General Catalyst to start his own firm, a little over a year after the venture capital firm promoted him to partner. His new firm is called Stellation Capital, and filings indicate that he is looking to raise up to $40 million for the debut investment vehicle. Sources say that most,

Peter Boyce II has left General Catalyst to start his own firm, a little over a year after the venture capital firm promoted him to partner. His new firm is called Stellation Capital, and filings indicate that he is looking to raise up to $40 million for the debut investment vehicle. Sources say that most, if perhaps not all, of that total has been closed since the initial SEC filing in April.

Boyce declined to comment for this story. It’s been a quiet transition for the investor; his LinkedIn and Twitter have not been updated to indicate his new job title, but his personal website indicates the new gig. For an investor to leave a prominent venture capital firm after an eight-year tenure to raise dozens of millions of his own — and somehow do so quietly and with minimal coverage — might be a result of the funding frenzy and consequential numbness to yet another filing.

Boyce joined GC in 2013 and led investments in Ro, Macro, towerIQ and Atom. He’s also supported portfolio companies such as Giphy, Jet.com and Circle. Beyond GC, Boyce has experience co-founding and running Rough Draft Ventures, a program that helps incubate startups founded by students and recent graduates, as well as promote entrepreneurship on campuses.

Stellation Capital will leverage his work and name into early-stage investments. The name of the firm, per its website, is derived from the Latin root of stella, which means star. The name also describes “the process of extending a polygon in new dimensions to form a new shape … just like we’re extending the potential of a founder into new possibilities.”

It’s unclear what the firm’s check size and cadence will be, but it did say it wants to back successful companies at “their earliest stages” on the website.

News: Instacart hires Facebook executive as new CEO ahead of expected IPO

Instacart has appointed Facebook executive Fidji Simo as its new CEO, just seven months after she joined the grocery delivery company’s board of directors. Simo, formerly the vice president and head of the Facebook app, will replace Instacart founder and current CEO Apoorva Mehta on August 2. Mehta will transition to executive chairman of the

Instacart has appointed Facebook executive Fidji Simo as its new CEO, just seven months after she joined the grocery delivery company’s board of directors. Simo, formerly the vice president and head of the Facebook app, will replace Instacart founder and current CEO Apoorva Mehta on August 2. Mehta will transition to executive chairman of the board, per a statement from Instacart.

Instacart declined on behalf of Simo for request to provide further comment.

Women of color chief executives at the forefront of billion-dollar businesses are still an unfortunately rare occurrence. Simo is the co-founder of Women in Product, a nonprofit organization that works to empower women in product management, as well as advance and advocate for women’s careers in tech. The transition marks that Facebook has lost one of its few female leaders, and Instacart has a new energy as it plans to increase its head count by 50% in 2021.

The departure of Mehta from his role so close to an expected IPO is as notable as it is rare. Mehta founded Instacart 10 years ago, incubating it through Y Combinator’s 2012 summer batch to its most recent valuation of $39 billion.

The pandemic spotlighted Instacart’s purpose, as millions of people around the world faced quarantines and limited in-person interactions, including trips to the grocery store. The increased consumer spending on for-delivery services led Instacart to hire hundreds of thousands of workers, as well as launch same-day delivery on a variety of products beyond avocados — including electronics, sports equipment and prescription medicine

The growth hasn’t come without controversy. Instacart joined Uber, Lyft, DoorDash and Postmates as major backers for Proposition 22, a measure that would classify gig workers as independent contractors, limiting the types of benefits that they could receive. Prop 22 eventually passed, which could be seen as beneficial to Instacart executives and detrimental to the shoppers who make the deliveries. The event happened after years of protests, class-action lawsuits over wages and tipping debacles in which Instacart was scrutinized for unfair policies toward its shoppers.

Simo obviously has experience working at controversial companies, thanks to her decade at Facebook. Facebook’s Chief Operating Officer Sheryl Sandberg replied to Simo’s announcement in a comment on the platform.

“Fidji — I’m immensely grateful for the impact you’ve had on Facebook over the last 10 years,” Sandberg wrote. “You’ve worn so many hats leading the Facebook App — all while advocating for gender equality in the tech community. I’m so proud to see where you’re headed. Cheering you on!”

Instacart describes Simo as a “core driver of Facebook’s mobile monetization strategy” and the leader behind the architecture of Facebook’s advertising business. The executive helped scale Facebook as it grew from 1,000 to 100,000 employees, and through its transition to the public markets — experience that may mesh well with Instacart’s ambitions to eventually go public.

Her rise to chief executive comes as the pandemic winds down and parts of the world begin to reopen, which will likely signal a new chapter about how Instacart conducts business and faces new challenges on how the business stays relevant.

News: Achieving digital transformation through RPA and process mining

For your transformation journey to be successful, you need to develop a deep understanding of your goals, people and the process.

Alp Uguray
Contributor

Alp Uguray is an award-winning technologist, adviser and investor with 2x UiPath (MVP) Most Valuable Professional Award and is a globally recognized expert on intelligent automation, AI (artificial intelligence), RPA, process mining and enterprise digital transformation.

Understanding what you will change is most important to achieve a long-lasting and successful robotic process automation transformation. There are three pillars that will be most impacted by the change: people, process and digital workers (also referred to as robots). The interaction of these three pillars executes workflows and tasks, and if integrated cohesively, determines the success of an enterprisewide digital transformation.

Robots are not coming to replace us, they are coming to take over the repetitive, mundane and monotonous tasks that we’ve never been fond of. They are here to transform the work we do by allowing us to focus on innovation and impactful work. RPA ties decisions and actions together. It is the skeletal structure of a digital process that carries information from point A to point B. However, the decision-making capability to understand and decide what comes next will be fueled by RPA’s integration with AI.

From a strategic standpoint, success measures for automating, optimizing and redesigning work should not be solely centered around metrics like decreasing fully loaded costs or FTE reduction, but should put the people at the center.

We are seeing software vendors adopt vertical technology capabilities and offer a wide range of capabilities to address the three pillars mentioned above. These include powerhouses like UiPath, which recently went public, Microsoft’s Softomotive acquisition, and Celonis, which recently became a unicorn with a $1 billion Series D round. RPA firms call it “intelligent automation,” whereas Celonis targets the execution management system. Both are aiming to be a one-stop shop for all things related to process.

We have seen investments in various product categories for each stage in the intelligent automation journey. Process and task mining for process discovery, centralized business process repositories for CoEs, executives to manage the pipeline and measure cost versus benefit, and artificial intelligence solutions for intelligent document processing.

For your transformation journey to be successful, you need to develop a deep understanding of your goals, people and the process.

Define goals and measurements of success

From a strategic standpoint, success measures for automating, optimizing and redesigning work should not be solely centered around metrics like decreasing fully loaded costs or FTE reduction, but should put the people at the center. To measure improved customer and employee experiences, give special attention to metrics like decreases in throughput time or rework rate, identify vendors that deliver late, and find missed invoice payments or determine loan requests from individuals that are more likely to be paid back late. These provide more targeted success measures for specific business units.

The returns realized with an automation program are not limited to metrics like time or cost savings. The overall performance of an automation program can be more thoroughly measured with the sum of successes of the improved CX/EX metrics in different business units. For each business process you will be redesigning, optimizing or automating, set a definitive problem statement and try to find the right solution to solve it. Do not try to fit predetermined solutions into the problems. Start with the problem and goal first.

Understand the people first

To accomplish enterprise digital transformation via RPA, executives should put people at the heart of their program. Understanding the skill sets and talents of the workforce within the company can yield better knowledge of how well each employee can contribute to the automation economy within the organization. A workforce that is continuously retrained and upskilled learns how to automate and flexibly complete tasks together with robots and is better equipped to achieve transformation at scale.

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