America’s largest companies push for federal online privacy laws to circumvent state regulatory efforts – gpgmail


As California moves ahead with what would be the most restrictive online privacy laws in the nation, the chief executives of some of the nation’s largest companies are taking their case to the nation’s capitol to plead for federal regulation.

Chief executives at Amazon, AT&T, Dell, Ford, IBM, Qualcomm, Walmart, and other leading financial services, manufacturing, and technology companies have issued an open letter to Congressional leadership pleading with them to take action on online privacy, through the pro-industry organization, The Business Roundtable.

“Now is the time for Congress to act and ensure that consumers are not faced with confusion about their rights and protections based on a patchwork of inconsistent state laws. Further, as the regulatory landscape becomes increasingly fragmented and more complex, U.S. innovation and global competitiveness in the digital economy are threatened,” the letter says.

The subtext to this call to action is the California privacy regulations that are set to take effect by the end of this year.

As we noted when the bill was passed last year there are a few key components of the California legislation including the following requirements:

  • Businesses must disclose what information they collect, what business purpose they do so for and any third parties they share that data with.

  • Businesses would be required to comply with official consumer requests to delete that data.

  • Consumers can opt out of their data being sold, and businesses can’t retaliate by changing the price or level of service.

  • Businesses can, however, offer “financial incentives” for being allowed to collect data.

  • California authorities are empowered to fine companies for violations.

There’s a reason why companies would push for federal regulation to supersede any initiatives from the states. It is more of a challenge for companies to adhere to a patchwork of different regulatory regimes at the state level. But it’s also true that companies, following the lead of automakers in California, could just adhere to the most stringent requirements which would clarify any confusion.

Indeed many of these companies are already complying with strict privacy regulations thanks to the passage of the GDPR in Europe.


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Shopify buys warehouse automation tech developer 6 River Systems for $450 million – gpgmail


Shopify, the shopping technology developer that’s quickly becoming the anti-Amazon, has taken another step up the sales supply chain with its $450 million acquisition of the warehouse automation and management technology developer, 6 River Systems.

The acquisition will serve to boost efficiencies among Shopify’s Fulfillment Network service which launched in . June.

The acquisition gives Shopify access to the robotics experts who helped develop Amazon’s own robotics business when they were at Kiva Systems (before Amazon acquired that company). j

“Shopify is taking on fulfillment the same way we’ve approached other commerce challenges, by bringing together the best technology to help everyone compete,” said Tobi Lütke, CEO of Shopify, in a statement. “With 6 River Systems, we will bring technology and operational efficiencies to companies of all sizes around the world.”

The deal, which was approved by 6 Rivers’ investors including Menlo Ventures, Norwest Venture Partners, and Eclipse Partners, was a mix of cash and stock totaling $450 million with around $69 million worth of Shopify Class A shares set aside for 6 River Systems’ employees and founders that will vest subject to certain conditions.

Shopify said in a statement that the transaction would have no material effect on the company’s revenue in 2018. It’s expected to increase the company’s expenses by $25 million — including $10 million in operating expenses, $8 million in amortization of intangible assets; and $7 million in stock-based compensation.

Shopify estimated that 6 River Systems will have annual revenues of roughly $30 million in 2020.


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Forty-nine states and the District of Columbia are pushing an antitrust investigation against Google – gpgmail


Fifty attorneys general are pushing forward with an antitrust investigation against Google, led by the Texas state Attorney General Ken Paxton.

In an announcement on the steps of the U.S. Supreme Court building, Paxton and a gathering of attorneys general said that the focus of the investigation would be on Google’s advertising practices, but that other points of inquiry could be included in the investigation.

The investigation into Google comes as big technology companies find themselves increasingly under the regulatory microscope for everything from anticompetitive business practices to violations of users’ privacy and security, to accusations of political bias.

Last week, the New York State Attorney General launched an investigation into Facebook.

Action from the states follows movement from the federal government which is investigating just about every major technology company including Google, Apple, Amazon, and Facebook.

This story is developing.




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DHL expands Africa eShop online retail app to 34 countries – gpgmail


DHL  has expanded its DHL Africa eShop business to 13 additional markets, upping the presence of the global shipping company’s e-commerce platform to 34 African countries.

DHL  href=”https://Gpgmail.com/2019/04/11/dhl-launches-africa-eshop-app-for-global-retailers-to-sell-into-africa/”>went live with the digital retail app in April, bringing more than 200 U.S. and U.K. sellers — from Neiman Marcus to Carters — online to African consumers.

Africa eShop operates using startup MallforAfrica.com’s white label fulfillment service, Link Commerce. Similar to MallforAfrica’s model, the arrangement allows Africa eShop users to purchase goods directly from the websites of any of the app’s global partners.

This week’s expansion is the second for DHL’s Africa eShop, after adding 9 markets in May.

DHL’s moves run parallel to significant developments this year in the Africa’s online retail scene—namely Jumia’s big capital raise through its IPO.

Here are Africa eShop’s latest additions: Angola, Benin, Burkina Faso, Burundi, Chad, Ethiopia, Guinea, Lesotho, Namibia, Niger, Sudan, Togo, and Zimbabwe.

MallforAfrica CEO Chris Folayan points to the novelty of online sales in many of Africa eShop’s new markets.

“For some of these countries no one has really tapped into e-commerce the way we’re tapping into it, with an ability to buy online and also buy online directly from places like Macy’s or Amazon,” he told gpgmail on a call.

Payment methods include local fintech options, such as Nigeria’s Paga and Kenya’s M-Pesa. DHL Africa eShop leverages the shipping giant’s existing delivery structure on the continent, through its DHL Express courier service.

To add some context, someone with a mobile phone and bank account in, say, Niger can now use DHL’s app to shop at Macys.com and have anything from designer sneakers to kitchenware shipped to their doorstep in Central-Africa.

DHL AFRICA ESHOP MAP

DHL Africa eShop is also offering incentives to entice first-time digital consumers.

“We will be launching with a promo, buy any 5 items from over 100 retail partners and get a $20 flat shipping fee. This is DHL’s way of showing they are dominant in shipping and eCommerce in Africa.”

As gpgmail highlighted this spring, the launch and expansion of DHL’s MallforAfrica supported platform is creating a competitive scenario with e-commerce unicorn Jumia.

Jumia is Africa’s most visible e-tailer and operates consumer retail and online service verticals in 14 African countries. Headquartered in Lagos, the company raised more than $200 million in an NYSE IPO this April.

DHL launched the Africa eShop product the day before Jumia went public and made its first country expansion only weeks after.

There’s a brewing business debate on which platform is best positioned to capture a larger share of a projected $2.1 trillion in consumer spending (10% online) expected in Africa by 2025.

Then there’s the question of who’s largest. DHL Africa eShop touts itself as “Africa’s Largest Online Shopping Platform.” Jumia said, “We believe that our platform is the largest e-commerce marketplace in Africa,” in its SEC F-1 filing.

On the prospect of going head to head with Africa’s best funded e-commerce company, Chris Folayan is somewhat circumspect.

“We’re note focused on competing with Jumia, but in a way it’s starting to happen as a result of our expansion and growth,” he said.

Two main spectators in a MallforAfrica, Jumia match up could be the big global e-commerce names.

Alibaba has talked about Africa expansion, but for the moment has not entered in full.

Amazon offers limited e-commerce sales on the continent, but more notably, has started with AWS services in Africa.

DHL and partner MallforAfrica plan to bring Africa eShop to all 54 African countries in coming years.

 

 


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Amazon’s ‘Carnival Row’ mixes fairies, politics and murder – gpgmail


“Carnival Row” offers an unlikely mix of genres, laying out a murder mystery in a world of fairies and other mythical creatures, while also delivering a healthy dose of allegorical politics.

And as we explain in the latest episode of the Original Content podcast, the show (recently released on Amazon Prime Video) does take some getting used to. There’s a certain clumsiness in the way the opening episode insists on its grittiness and adult themes — and most viewers will probably need some time before they stop gawking at the fairy sex and focus instead on the story and characters.

Once they do, though, “Carnival Row” offers plenty of rewards. Orlando Bloom and Cara Delevingne star as Philo and Vignette — a police investigator and a “fae” refugee, respectively, who have a complicated romantic past together. Bloom and Delevingne may not be entirely up to the task of creating complex and memorable characters, but the world that creators Travis Beacham and René Echavarria have built around them is rich, detailed and strange.

The pair is also surrounded by a strong supporting cast that includes Jared Harris (“The Crown”) and Indira Varma (“Game of Thrones”) — and ultimately, the fantasy, the politics and the mystery do come together in satisfying ways.

In addition to reviewing “Carnival Row,” we also discuss YouTube’s settlement with the FTC and listener response to last week’s review of “The Dark Crystal: Age of Resistance.”

You can listen in the player below, subscribe using Apple Podcasts or find us in your podcast player of choice. If you like the show, please let us know by leaving a review on Apple. You can also send us feedback directly. (Or suggest shows and movies for us to review!)

And if you want to skip ahead, here’s how the episode breaks down:
0:00 Introduction
2:11 “Dark Crystal: Age of Resistance” listener response
15:03 “Carnival Row” review (minor spoilers for the first episode)
33:47 “Carnival Row” spoiler discussion


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U.S. Senator demands answers from Amazon Ring over its police partnerships – gpgmail


Senator Edward J. Markey (D-Mass.) is looking for answers from Amazon about its doorbell camera Ring and the company’s relationships with law enforcement agencies around the U.S. In a letter published on Thursday, he writes to the technology giant how partnerships like Ring’s raise “serious privacy and civil liberties concerns,” and asks Amazon to further detail the size and scope of its numerous deals with police.

The Senator’s attention was drawn to the issue following a recent report by The Washington Post. The report revealed that Ring had entered into some 400 video-sharing partnerships with U.S. police forces, which granted the police access to the footage from the homeowners’ internet-connected video cameras.

The police cannot tap into live or on ongoing footage, and the homeowners can choose to decline police requests, the report also said.

However, the partnerships raised concerns from privacy advocates who believe the program could threaten civil liberties, turn residents into informants, and subject innocent people to greater surveillance and risk, The Washington Post noted.

The same kind of network of surveillance cameras would draw more scrutiny if the police or the government had installed it themselves, but by working with Ring they’re not directly involved.

In a letter (see below) dated Thursday, September 5, 2019, Senator Markey questions the use targeted language that encourages Ring owners to opt in to the video-sharing program with police, as well as the way Amazon actively courts law enforcement to increase its use of the Ring system. Sen. Markey additionally points out that Amazon seems to be increasingly working with U.S. police forces, like it did when marketing its facial recognition product, Rekognition.

“The scope and nature of Ring’s partnership with police forces raise additional civil liberties concerns. The integration of Ring’s network of cameras with law enforcement offices could easily create a surveillance network that places dangerous burdens on people of color and feeds racial anxieties in local communities,” Sen. Markey wrote. “I am particularly alarmed to learn that Ring is pursuing facial recognition technology with the potential to flag certain individuals as suspicious based on their biometric information,” he continued, referencing a patent Ring applied for last year that would catch “suspicious” people on camera.

“In light of evidence that existing facial recognition technology disproportionately misidentifies African Americans and Latinos, a product like this has the potential to catalyze racial profiling and harm people of color,” Markey said.

The Senator asks Amazon to detail how long it’s been asking users to share video footage with police, how those policies have changed, and which police departments it’s working with. He also asked for information about how this data was being stored, what safeguards are in place, whether the police are sharing that footage with other entities, whether Rekognition capabilities were coming to Ring, and more.

Markey also wants Ring to review its consent prompts for video-sharing with experts to make sure it’s not manipulating consumers into these agreements with police.

And he wants to know if Ring has worked with any experts in civil liberties, criminal justice or other relevant fields to review its doorbells and social network Neighbors to ensure they don’t present unique threats to people of color or other populations.

Ring would not be the first to create a home for racial profiling among neighbors, though its connection to cameras makes it more of an actionable threat than other networks, like Nextdoor or Facebook Groups.

Nextdoor, for example, became well-known for issues around racial profiling, and eventually rolled out tools to try to stem the problem in its app. Crime-tracking app Citizen also faced controversies for creating a state of paranoid hypervigilance among its users — something that has long-term effects on how people perceive their world and those they share it with. And anyone in a Facebook Group for their neighborhood knows there will at some point be a post about a “suspcious” person with little evidence of any wrongdoing.

Sen. Markey gave Amazon until September 26, 2019 to respond to his questions.


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Amazon unveils a new Fire TV Cube, soundbar, and over a dozen Fire TV Edition products – gpgmail


At the big European tech trade show, IFA 2019, Amazon today announced over 20 new Fire TV-branded devices, including a next-generation Fire TV Cube, Fire TV Edition soundbar from Anker — its first foray into Fire TV Edition audio products — and 15 new Fire TV Edition products, including the first OLED Fire TV Edition smart TVs.

The announcement represents a significant expansion of Amazon’s Fire TV hardware line and integrations at a time when Roku has gained a lead over Amazon in the U.S., in terms of connected-TV market share, while Fire TV has been claiming the top spot in some European markets and an international lead over Roku.

The company today said its Fire TV devices now have over 37 million monthly active users globally, which is ahead of the 30.5 million Roku reported in Q2. Both companies offer products that may be used by more than one person in a household, of course, but each household only gets counted as one user (or account) as long as they’ve streamed through the platform in the past month. It’s a relatively fair comparison, in other words.

Of the new devices, the new Fire TV Cube is one of the more interesting additions to the lineup as it represents the second generation, and a big upgrade, over the existing product. The device offers a hands-free Fire TV experience, and has become the testing ground for many Fire TV software enhancements before they roll out to the wider product lineup.

The updated Fire TV Cube now includes a faster, “hexa-core” processor that’s twice as powerful as the one that shipped in the first generation device. It provides “instant access” to Dolby Vision and 4K Ultra HD content, Amazon claims, at up to 60 frames per second. The new Cube also includes on-device processing with Local Voice Control, which lets you more quickly execute some of your common voice commands like “Alexa, go home,” or “Alexa, scroll right,” for example. These commands will now execute up to 4 times faster, says Amazon.

The Fire TV Cube will also ship with far-field voice recognition capabilities with 8 microphones and technology that helps to suppress noise, reverberation, content currently playing, and even competing speech so Alexa better hears your voice commands even when the TV is on in a room full of people.

Customers will be able to control their compatible TV, soundbar, A/V receiver, cable or satellite box, as well as other smart home devices by way of the device’s support of multi-directional infrared technology, cloud-based protocols, and HDMI CEC, combined with Alexa. 

“Fire TV Cube was the first hands-free streaming media player powered by Alexa, and since launching last year we have gathered a wealth of feedback from customers about how they use voice in the living room,” said Marc Whitten, Vice President of Amazon Fire TV, in a statement. “Over the past year, we have continued to expand and advance the Fire TV Cube experience based on this feedback with dozens of new features including Multi-Room Music, Follow-Up Mode, and Alexa Communications. These key learnings carried over and guided the development of the second-generation Fire TV Cube, and we are excited to introduce this new-and-improved experience to customers around the world,” he said.

The new Fire TV Cube is available for pre-order in the U.S. for $119.99, in Canada for $149.99, the United Kingdom for £109.99, Germany for €119.99, and Japan for ¥14980.  It ships on Oct. 10 in all markets except Japan, where it ships on Nov. 5, instead. And it will be sold in a package with Ring Video Doorbell 2 for $249.99 (or $69 off).

Fire TV Cube Couch

Amazon’s Fire TV Edition lineup is expanding, too. This is the licensed version of the Fire TV OS available to other manufacturers for use in their own products.

The company announced more than 15 new products from brands including Skyworth, Arcelik, TPV, Compal, and others.

In partnership with Dixons Carphone, Amazon is teaming up to launch JVC – Fire TV Edition Smart 4K Ultra HD HDR LED TVs, which are the first Fire TV Edition products in the U.K. They’ll be sold by Currys PC World and online at Amazon.co.uk and are priced at £349 and up.

With IMTRON, a company of MediaMarktSaturn Retail Group, Amazon is launching a lineup of Fire TV Edition smart TVs under the private label ok. These will be available in Germany and Austria, as will the 11 Fire TV Edition smart TVs from Grundig including the first OLED Fire TV Edition television ( available in 55” and 65” models, starting at €1,299.99 for hands-free; or starting at €1,199.99 if not; pictured below). 

Grundig OLED Fire TV Edition display

Other more affordable Grundig Fire TV Edition products will be sold on Amazon.de in 32″, 40″, 43″, 49″, 55″, and 65″ variations, starting at €239.99. They’ll also come to retailers including MediaMarkt, Saturn, Euronics, Expert, EP:, Medimax, and others.

In the U.S., Amazon and Best Buy announced the first 65-inch Toshiba – Fire TV Edition smart TV with Dolby Vision, which will be available for customers in the United States next month for $599.

Finally, following Roku’s lead into home audio, Amazon also announced the first expansion of Fire TV Edition beyond the TV itself with the launch of the Nebula Soundbar from Anker. (Roku also today launched its own wireless soundbar).

The new device supports 4K Ultra HD, a unified smart TV user interface, near-field Alexa voice control, Dolby Vision pass-through, and more. It can also be added to a multi-room speaker group through the Alexa app, and comes with a 90-day trial to Amazon Music Unlimited. 

Nebula Soundbar – Fire TV Edition 4

It’s available for pre-order today for $229.99 in the United States, $269.99 in Canada, £179.99 in the United Kingdom, and €209.99 in Germany. It will begin shipping on November 21.

The expansion of Fire TV Edition-branded products is also meant to challenge Roku on the success of its Roku TV-branded television sets, which are similarly manufactured by partners but run the Roku OS.

In the U.S., Roku OS is the No. 1 licensed TV OS in the U.S. and now powers more than 1 in 3 smart TVs. Amazon is today is clearly answering that challenge by focusing on the international markets with a suite of new partners for Fire TV Edition.

 


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Why Walmart’s Flipkart is betting heavily on Hindi – gpgmail


To win India’s next 200 million internet users, e-commerce giant Flipkart wants to speak their language

Flipkart, the largest e-commerce platform in India, said Tuesday it has concluded the roll-out of a range of features to its shopping app in what is its biggest update in recent years.

Chief among these new features is access to Flipkart in Hindi language. Prior to the revamp of the app, Flipkart was available only in English, a language spoken by 10% of India’s 1.3 billion population.

Flipkart says it is hoping that the new features, which includes a video streaming service, would help it reach the next 200 million users in India.

The major bet on Hindi, a language spoken by more than 500 million people in India, illustrates a growing push from local and international companies operating in the country as they adapt their services and business models to go beyond the urban cities.

And that’s where much of the opportunity, which countless startups and companies have trumpeted to investors to successfully raise hundreds of millions of dollars in debt and venture capital in recent years, lies in the nation.


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Peloton’s 29 secret weapons – gpgmail


Hello and welcome back to Startups Weekly, a weekend newsletter that dives into the week’s noteworthy startups and venture capital news. Before I jump into today’s topic, let’s catch up a bit. Last week, I wrote about a new e-commerce startup, Pietra. Before that, I wrote about the flurry of IPO filings.

Remember, you can send me tips, suggestions and feedback to kate.clark@Gpgmail.com or on Twitter @KateClarkTweets. If you don’t subscribe to Startups Weekly yet, you can do that here.

What’s new?

Peloton revealed its S-1 this week, taking a big step toward an IPO expected later this year. The filing was packed with interesting tidbits, including that the company, which manufacturers internet-connected stationary bikes and sells an affiliated subscription to its growing library of on-demand fitness content, is raking in more than $900 million in annual revenue. Sure, it’s not profitable, and it’s losing an increasing amount of money to sales and marketing efforts, but for a company that many people wrote off from the very beginning, it’s an impressive feat.

Despite being a hardware, media, interactive software, product design, social connection, apparel and logistics company, according to its S-1, the future of Peloton relies on its talent. Not the employees developing the bikes and software but the 29 instructors teaching its digital fitness courses. Ally Love, Alex Toussaint and the 27 other teachers have developed cult followings, fans who will happily pay Peloton’s steep $39 per month content subscription to get their daily dose of Ben or Christine.

“To create Peloton, we needed to build what we believed to be the best indoor bike on the market, recruit the best instructors in the world, and engineer a state-of-the-art software platform to tie it all together,” founder and CEO John Foley writes in the IPO prospectus. “Against prevailing conventional wisdom, and despite countless investor conference rooms full of very smart skeptics, we were determined for Peloton to build a vertically integrated platform to deliver a seamless end-to-end experience as physically rewarding and addictive as attending a live, in-studio class.”

Peloton succeeded in poaching the best of the best. The question is, can they keep them? Will competition in the fast-growing fitness technology sector swoop in and scoop Peloton’s stars?

In other news

Last week I published a long feature on the state of seed investing in the Bay Area. The TL;DR? Mega-funds are increasingly battling seed-stage investors for access to the hottest companies. As a result, seed investors are getting a little more creative about how they source deals. It’s a dog-eat-dog world out there, and everyone wants a stake in The Next Big Thing. Read the story here.

Rounds of the week

Time to Disrupt

Don’t miss out on our flagship Disrupt, which takes place October 2-4. It’s the quintessential tech conference for anyone focused on early-stage startups. Join more than 10,000 attendees — including over 1,200 exhibiting startups — for three jam-packed days of programming. We’re talking four different stages with interactive workshops, Q&A sessions and interviews with some of the industry’s top tech titans, founders, investors, movers and shakers. Check out our list of speakers and the Disrupt agenda. I will be there interviewing a bunch of tech leaders, including Bastian Lehmann and Charles Hudson. Buy tickets here.

Listen

This week on Equity, gpgmail’s venture capital-focused podcast, we had Floodgate’s Iris Choi on to discuss Peloton’s upcoming IPO. You can listen to it here. Equity drops every Friday at 6:00 am PT, so subscribe to us on Apple Podcasts, Overcast and Spotify.

Learn

We published a number of new deep dives on Extra Crunch, our paid subscription product, this week. Here’s a quick look at the top stories:




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Ring Confirms It Works With More Than 400 Police Departments


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Ring has come under fire in recent months for the way it partners with law enforcement and helps them obtain camera footage from customers without a warrant. Ring frames this as an initiative to keep neighborhoods safe, but privacy advocates worry about the development of a corporate-controlled surveillance state. The scale of Ring’s police partnership has only now become clear. It’s not a handful of police departments or even a few dozen — Ring works with more than 400 departments around the US. 

You can buy and use Ring cameras anyplace without interacting with law enforcement, but Ring is working hard to get people under the jurisdiction of partnered police departments to use its “Neighbors” app. That’s what connects your cameras to other nearby Ring cameras, allowing you to share video with neighbors. 

Ring’s contracts with police call for the direct promotion of Ring devices and services with the aim of increasing downloads of the Neighbors app. Police departments working with Ring get access to the Neighbors online community portal where they too can request footage. When investigating a crime, police can ask residents in Neighbors to share their video — Ring will even help police craft effective messages to get more footage. Ring (which is owned by Amazon) even provides police with credits toward free Ring cameras they can provide to residents. 

It’s not hard to see why police would like this. Officers can set up a Neighbors request and get access to video much more quickly than if they had to go through the legal system. On the flip side, they are getting access to a great deal of video that has little or nothing to do with investigating a crime. 

Ring stresses that police can’t see live feeds from cameras, and they don’t technically know who is and is not providing video footage. Although, it’s not hard to figure out which houses with Ring doorbells aren’t supplying video as requested. Ring seems conscious of how uncomfortable this could make people, so it’s trying to get ahead of the critics by making its full list of law enforcement partners public. The map above shows all 405 departments that work with Ring. The company promises to update the map regularly, too. 

The map probably won’t do much to calm those who are already concerned — it really drives home the incredible scale of the program. Almost all the departments listed joined the program in just the last few months. Still, the map is a step in the right direction. It will allow at least some public accountability going forward.

Now read:




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