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This Week in Apps: Black Friday’s boost, security news and the year’s biggest apps

18:00 | 7 December

Welcome back to This Week in Apps, the Extra Crunch series that recaps the latest OS news, the applications they support and the money that flows through it all. What are developers talking about? What do app publishers and marketers need to know? How are politics impacting the App Store and app businesses? And which apps are everyone using?

This week we look at how the Black Friday weekend played out on mobile (including which non-shopping category that saw a boost in revenue!), as well as a few security-related stories, TikTok’s latest bad press, plus Apple and Google’s best and most downloaded apps of 2019, and more.

Headlines

80% of Android apps are encrypting traffic by default

Google gave an update on Android security this week, noting that 80% of Android applications were encrypting traffic by default, and that percentage was higher for apps targeting Android 9 or higher, with 90% of them encrypting traffic by default. Android protects the traffic entering or leaving the devices with TLS (Transport Layer Security). Its new statistics are related to Android 7’s introduction of the Network Security Configuration in 2016, which allows app developers to configure the network security policy for their app through a declarative configuration file. Apps targeting Android 9 (API level 28) or higher automatically have a policy set by default that prevents unencrypted traffic for every domain. And since Nov. 1, 2019, all apps (including app updates) must target at least Android 9, Google says. That means the percentages will improve as more apps roll out their next updates.

Black Friday boosted mobile game revenue to a record $70M

U.S. sales holiday Black Friday wasn’t just good for online shoppers, who spent a record $7.4 billion in sales, $2.9 billion from smartphones. It also boosted iOS and Android mobile game revenue to a single-day record of $69.7 million in the U.S., according to Sensor Tower. This was the most revenue ever generated in a single day for the category, and it represents a 25% increase over 2018. Marvel Contest of Champions from Kabam led the day with approximately $2.7 million in player spending. Two titles from Playrix — Gardenscapes and Homescapes — also won big, with $1 million and $969,000 in revenue, respectively.

These increases indicate that consumers are looking for all kinds of deals on Black Friday, not just those related to holiday gift-giving. They’re also happy to spend on themselves in games. Mobile publishers caught on to this trend and offered special in-game deals on Black Friday which really paid off.

Did Walmart beat Amazon’s app on Black Friday?

Sensor Tower and Apptopia said it did. App Annie also said it did, but then later took it back (see update). In any event, it must have been a close race. According to Sensor Tower, Walmart’s app reached No.1 on the U.S. App Store on Black Friday with 113,000 new downloads, a year-over-year increase of 23%. Amazon had 102,000 downloads, making it No. 2.

Arguably, many Amazon shoppers already have the app installed, so this is more about Walmart’s e-commerce growth more so than some ding on Amazon.

In fact, Apptopia said that Amazon still had 162% more mobile sessions over the full holiday weekend — meaning Amazon was more shopped than Walmart.

More broadly, mobile shopping is still huge on Black Friday. The top 10 shopping apps grew their new installs by 11% over last year on Black Friday, to reach a combined 527,000 installs.

Report: Android Advanced Protection Program could prevent sideloading

Google’s Advanced Protection Program protects the accounts of those at risks of targeted attacks — like journalists, activists, business leaders, and political campaign teams. This week, 9to5Google found the program may get a new protection feature with the ability to block sideloading of apps, according to an APK breakdown. What’s not yet clear is if program members will have the option to disable the protection, but there are some indications that may be the case. Another feature the report uncovered appears to show that Play Protect will automatically scan all apps, including those from outside the Play Store. This won’t affect the majority of Android users, of course, but it is an indication of where Google believes security risks may be found: sideloaded apps.

Bug hunter suggests Security.plist standard for apps

 


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Real X-Wings took flight at Disney’s new Star Wars ride grand opening thanks to Boeing

16:48 | 7 December

Boeing might be taking the last crucial steps to prepare for its first crewed Starliner capsule spaceflight, but it’s also busy turning sci-fi into reality right here on Earth – by helping Disney build X-Wing large-scale starfighters to celebrate the opening of the ‘Rise of the Resistance’ ride at Disney World in Florida.

Earlier this week when the ride opened during an evening ceremony, X-Wings “roughly the size of a family van” flew over the event, as described by The Drive, which first identified earlier spy shots of the vehicles as potentially being based on Boeing’s aerial cargo drone. Boeing has since confirmed its involvement, but they aren’t providing more info than that the X-Wings were indeed their aircraft.

In the clip below, you can see the X-Wings ascend vertically into the night sky, then hover and rotate before heading out. Don’t go squinting to see if you can spot Poe Dameron at the controls, however – these are unpiloted drones based mostly likely on the Cargo Air Vehicle design Boeing has recently shown off, which sports six rotors (you can see them in close-ups of the X-Wing included in the gallery at the end of this post).

Astute observers and Star Wars fans will note that the X-Wings feature the split-engine design introduced in the T-70 variant that are flown by the Resistance in the current trilogy, as opposed to the full cylinder engine design on the T-65 from the original trilogy. That makes perfect sense, since the Rise of the Resistance ride takes place during an encounter between the Resistance and the First Order during the current trilogy timeline.

As for Boeing’s CAV, it recently completed a three-minute test flight during which it demonstrated forward movement, after flying outdoors during a hover test for the first time earlier this year. The cargo drone is designed for industrial applications, and can carry up to 500 lbs of cargo, but it’s still in the testing phase, which makes this Star Wars demonstration even more interesting.

[gallery ids="1921346,1921347,1921348,1921349"]

 


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Startups Weekly: U.S. VCs eye European startups

16:00 | 7 December

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 Chinese investor activity in Africa. Before that, I noted Airbnb’s issues.

Remember, you can send me tips, suggestions and feedback to kate.clark@techcrunch.com or on Twitter @KateClarkTweets. If you’re new, you can subscribe to Startups Weekly here.


Europe’s appeal

This week I want to talk about Europe and not just because I’m in Europe prepping for TechCrunch’s annual conference, TechCrunch Disrupt Berlin. But because of a new trend we’re seeing in which U.S. venture capital funds strike deals overseasmore than ever.

Forbes wrote a piece on this trend this week alongside the release of their annual European Midas List, which ranks the top VCs on the continent. More and more, top funds, including the likes of Sequoia and Benchmark, are writing checks to companies in London, Dublin, Amsterdam, Stockholm and more. 

Sequoia, for example, funded a teenager in Dublin, Ireland this year. Evervault is building a data protection solution aimed at developers, by way of an API, which aims to bake data protection into the app from the start. We hear a number of other top firms are sending partners over seas, too, or considering making such moves. Why? To search for companies to add to their global portfolios (in a region where they may also see a nice discount). As we prep for a new year, this is one of several trends in VC I’ll be keeping an eye on.


Workplace toxicity

If you didn’t log on to Twitter this week, you may have missed The Verge’s investigation into workplace toxicity at Away, a ‘unicorn’ travel company known for its lightweight, compact suitcases (full disclosure: I have an Away bag). Read that story first, then check out Winnie co-founder and chief executive officer Sara Mauskopf’s piece from this week, “The inevitable takedown of the female CEO,” in which she questions why we celebrate female-founded companies, until they rise too far. Here’s a passage:

AggressiveBlunt. Furious. These are words that have been used to criticize the behavior of female CEOs of prominent companies like Thinx, Cleo, Rent the Runway and ThirdLove, to name a few. Away is the latest female-led company to come under fire, in an article in The Verge on Thursday.

First, let me be clear: A toxic work culture is never acceptable. Regardless of who started a company or what kind of stress the company is under, it’s never okay to mistreat employees. Some of the things that came to light in these pieces are particularly abhorrent: sexual harassment, lying about one’s credentials, creating an unsafe space for underrepresented groups, overworking employees. These are dynamics that need to be called out and eliminated at all companies, whether female or male-led. The Away example is no exception.


The top VC deals of the week:

Plus, read my profile of VSCO, the photo-sharing and editing app you may have never heard of. That is, until the “VSCO girl” meme craze of 2019.


Disrupt Berlin

It’s hard to believe it’s already that time of the year again, but Disrupt Berlin is this week! I’m in Berlin this week to meet with Europe’s top VCs and some of the most promising founders in the region. If you’re here too, make sure to say hi. Here are a few things you can expect to hear about at the event:


#Equity

If you like this newsletter, you will definitely enjoy Equity, which brings the content of this newsletter to life — in podcast form! Join myself and Equity co-host Alex Wilhelm every Friday for a quick breakdown of the week’s biggest news in venture capital and startups.

This week, we discussed Harlem Capital’s debut fund, a $40 million effort that will back minority entrepreneurs. On top of that, we shared thoughts on Figure’s latest funding, European venture capital activity and more.

Equity drops every Friday at 6:00 am PT, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

 


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Reddit links UK-US trade talk leak to Russian influence campaign

13:59 | 7 December

Reddit has linked account activity involving the leak and amplification of sensitive UK-US trade talks on its platform during the ongoing UK election campaign to a suspected Russian political influence operation.

Or, to put it more plainly, the social network suspects that Russian operatives are behind the leak of sensitive trade data — likely with the intention of impacting the UK’s General Election campaign.

The country goes to the polls next week, on December 12.

The UK has been politically deadlocked since mid 2016 over how to implement the result of the referendum to leave the European Union . The minority Conservative government has struggled to negotiate a brexit deal that parliament backs. Another hung parliament or minority government would likely result in continued uncertainty.

In a post discussing the “Suspected campaign from Russia on Reddit”, the company writes:

We were recently made aware of a post on Reddit that included leaked documents from the UK. We investigated this account and the accounts connected to it, and today we believe this was part of a campaign that has been reported as originating from Russia.

Earlier this year Facebook discovered a Russian campaign on its platform, which was further analyzed by the Atlantic Council and dubbed “Secondary Infektion.” Suspect accounts on Reddit were recently reported to us, along with indicators from law enforcement, and we were able to confirm that they did indeed show a pattern of coordination. We were then able to use these accounts to identify additional suspect accounts that were part of the campaign on Reddit. This group provides us with important attribution for the recent posting of the leaked UK documents, as well as insights into how adversaries are adapting their tactics.

Reddit says that an account, called gregoratior, originally posted the leaked trade talks document. Later a second account, ostermaxnn, reposted it. The platform also found a “pocket of accounts” that worked together to manipulate votes on the original post in an attempt to amplify it. Though fairly fruitlessly, as it turned out; the leak gained little attention on Reddit, per the company.

As a result of the investigation Reddit says it has banned 1 subreddit and 61 accounts — under policies against vote manipulation and misuse of its platform.

The story doesn’t end there, though, because whoever was behind the trade talk leak appears to have resorted to additional tactics to draw attention to it — including emailing campaign groups and political activists directly.

This activity did bear fruit this month when the opposition Labour party got hold of the leak and made it into a major campaign issue, claiming the 451-page document shows the Conservative party, led by Boris Johnson, is plotting to sell off the country’s free-at-the-point-of-use National Health Service (NHS) to US private health insurance firms and drug companies.

Labour party leader, Jeremy Corbyn, showed a heavily redacted version of the document during a TV leaders debate earlier this month, later calling a press conference to reveal a fully un-redacted version of the data — arguing the document proves the NHS is in grave danger if the Conservatives are re-elected.

Johnson has denied Labour’s accusation that the NHS will be carved up as the price of a Trump trade deal. But the leaked document itself is genuine. It details preliminary meetings between UK and US trade negotiators, which took place between July 2017 and July 2019, in which discussion of the NHS takes place, in addition to other issues such as food standards. Although the document does not confirm what position the UK might seek to adopt in any future trade talks with the US.

The source of the heavily redacted version of the document appears to be a Freedom of Information (FOI) request by campaigning organisation, Global Justice Now — which told Vice it made an FOI request to the UK’s Department for International Trade around 18 months ago.

The group said it was subsequently emailed a fully unredacted version of the document by an unknown source which also appears to have sent the data directly to the Labour party. So while the influence operation looks to have originated on Reddit, the agents behind it seem to have resorted to more direct means of data dissemination in order for the leak to gain the required attention to become an election-influencing issue.

Experts in online influence operations had already suggested similarities between the trade talks leak and an earlier Russian operation, dubbed Secondary Infektion, which involved the leak of fake documents on multiple online platforms. Facebook identified and took down that operation in May.

In a report analysing the most recent leak, social network mapping and analysis firm Graphika says the key question is how the trade document came to be disseminated online a few weeks before the election.

“The mysterious [Reddit] user seemingly originated the leak of a diplomatic document by posting it around online, just six weeks before the UK elections. This raises the question of how the user got hold of the document in the first place,” it writes. “This is the single most pressing question that arises from this report.”

Graphika’s analysis concludes that the manner of leaking and amplifying the trade talks data “closely resembles” the known Russian information operation, Secondary Infektion.

“The similarities to Secondary Infektion are not enough to provide conclusive attribution but are too close to be simply a coincidence. They could indicate a return of the actors behind Secondary Infektion or a sophisticated attempt by unknown actors to mimic it,” it adds.

Internet-enabled Russian influence operations that feature hacking and strategically timed data dumps of confidential/sensitive information, as well as the seeding and amplification of political disinformation which is intended to polarize, confuse and/or disengage voters, have become a regular feature of Western elections in recent years.

The most high profile example of Russian election interference remains the 2016 hack of documents and emails from Hillary Clinton’s presidential campaign and Democratic National Committee — which went on to be confirmed by US investigators as an operation by the country’s GRU intelligence agency.

In 2017 emails were also leaked from French president Emmanuel Macron’s campaign shortly before the election — although with apparently minimal impact in that case. (Attribution is also less clear-cut.)

Russian activity targeting UK elections and referendums remains a matter of intense interest and investigation — and had been raised publicly as a concern by former prime minister, Theresa May, in 2017.

Although her government failed to act on recommendations to strengthen UK election and data laws to respond to the risks posed by Internet-enabled interference. She also did nothing to investigate questions over the extent of foreign interference in the 2016 brexit referendum.

May was finally unseated by the ongoing political turmoil around brexit this summer, when Johnson took over as prime minister. But he has also turned a wilfully blind eye to the risks around foreign election interference — while fully availing himself of data-fuelled digital campaign methods whose ethics have been questioned by multiple UK oversight bodies.

A report into Russian interference in UK politics which was compiled by the UK’s intelligence and security parliamentary committee — and had been due to be published ahead of the general election — was also personally blocked from publication by the prime minister.

Voters won’t now get to see that information until after the election. Or, well, barring another strategic leak…

 


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Facebook sells off Oculus Medium to Adobe

13:56 | 7 December

Facebook is selling Oculus Medium — a 3D virtual reality sculpting tool for creatives — to Adobe. The team was an expensive effort for Oculus and its sale signifies a broader rethinking within Facebook in what virtual reality projects they tackle in-house.

It’s clear that Oculus pumped an awful lot of money into Medium over the years and the sale probably isn’t great for the Oculus Medium team, if only because there is now a proper price tag attached to the effort that will be looming for the fairly niche software. Terms of the deal weren’t shared so who knows what kind of deal Adobe got.

What is nice is that Facebook went to the trouble of properly spinning out Medium. When Facebook shut down Oculus Story Studio, the company quietly laid off its employees. Medium is well-liked by a small community and it makes plenty of sense at Adobe where first-party integration with other products will undoubtedly make it better software. It’s nice to see it live on.

The sale of Medium after the purchase of Beat Saber-maker Beat Games really encapsulates the VR content strategy of Oculus at the moment. Non-gaming creative tools aren’t getting new investment, cinematic VR content isn’t being prioritized, and Facebook is preparing to buy more game studios with the goal of scaling their titles. For a division that has been talking only about the distant future for years, it’s a pragmatic strategy that probably signifies broader contentment with how things are looking on the hardware front.

 


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See Atomico’s most senior VCs on stage at Disrupt Berlin

09:00 | 7 December

Atomico is among the most widely respected venture firms in Europe, ranking right up there with friendly rivals like Accel London and Index Ventures.

It’s also just 13 years old at this point, compared with its more established peers. It’s easy to overlook this, considering the impact the firm has made on the European startup scene since Swedish billionaire Niklas Zennström — who’d previously cofounded Skype and Kazaa — first swung open its doors.

Consider that four funds and $1.5 billion dollars in asset under management later, Atomico is now among Europe’s largest early-stage funds. It also has one of the most enviable portfolios, with companies that include Klarna (valued at $5.5 billion), Graphcore (valued at $1 billion), Stripe (valued at $35 billion) and Compass (valued at $6.4 billion), as well as a growing long list of past winners, including Climate Corp., which sold to Monsanto for $1.1 billion back in 2013.

In fact,  it was through this last investment  that Atomico first met Siraj Khaliq, who is today among the most senior members of the Atomico team and who will be joining us on stage at TechCrunch Berlin next week for a wide-ranging discussion about where Atomico is shopping — and how the different geographies it covers are evolving.

Khaliq previously cofounded and served as CTO of The Climate Corp. and today leads Atomico’s “frontier” investment team. He’ll be talking with us along the firm’s other most senior members, including Niall Wass, who co-leads the firm’s consumer investment team; Sophia Bendz, who lead Atomico’s Nordic investment sourcing, as well as its angel program; and Hiro Tamura, who co-leads the firm’s consumer investment team with Wass and also leads its later-stage investing team. (Tamura is also the longest serving partner at Atomico after Zennström.)

What excites them, what concerns them, and how are they trying to prepare for 2020? We’re thrilled to be sitting down with them to talk about these questions and much more.

If you care about what’s happening on the ground in Europe, this is one conversation you won’t want to miss. Tickets to the show are still available. You can find the entire Disrupt Berlin agenda here.

 

 


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Elon Musk found not liable in case brought against him by British diver

02:26 | 7 December

After a three-day trial, Elon Musk was found not liable for defamation in a federal court today in Los Angeles, where Musk reportedly owns a cluster of six homes as well as oversees the operations of both SpaceX and Tesla.

British diver Vernon Unsworth had brought the suit against Musk in the fall of 2018 after Musk tweeted that Unsworth was a “pedo guy,” meaning a pedophile. The reason, as Musk’s attorney’s argued in court, was essentially that Musk threw a temper tantrum. After Musk and his employees developed what they called a a mini-submarine or escape pod to save a children’s soccer team from a flooded cave in Thailand in July of 2018, Unsworth — a stranger to Musk and an experienced diver with knowledge of the cave — called the production a “PR stunt” when asked about the effort in an interview with CNN.

Unsworth brought the suit after Musk doubled down on his accusation, describing Unsworth as a “child rapist” in August 2018 emails to Buzzfeed. He claimed in court this week that since “being branded a pedophile” by Musk, he has felt “vulnerable and sometimes, when I’m in the U.K., I feel isolated.”

Unsworth — who in addition to being a diver is a financial consultant who divides his time between England and Thailand — was seeking damages from Musk to the tune of $190 million, including actual assumed, and punitive damages, and this week, his team tried to make the point that what he was seeking is a pittance for Musk, who was force to estimate his own net worth during the trial and guessed this was $20 billion, based on his Tesla and SpaceX holdings.

During the trial, Musk apologizes at least twice for the “pedo guy” tweet, saying that what he’d really meant was “creepy old man,” which still sounds nearly as perverted to our ears. The court, however, ultimately decided Musk did not genuinely believe that Unsworth is a pedophile and this outburst was not meant as a statement of fact.

As CNBC notes, the verdict could “set a precedent where free speech online, libel and slander are concerned” as the case was among the first court cases brought by a private individual over a tweet.

 


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To measure sales efficiency, SaaS startups should use the 4×2

01:33 | 7 December

Brian Ascher Contributor
Brian Ascher is a partner at Venrock, where he invests broadly across enterprise and fintech and serves on the boards of several companies, including Personal Capital, 6Sense, Socrates AI, Dynamic Signal, Retail Solutions, SmartBiz Loans, and Inrix.

Once you’ve found product/market fit, scaling a SaaS business is all about honing go-to-market efficiency.

Many extremely helpful metrics and analytics have been developed to provide instrumentation for this journey: LTV (lifetime value of a customer), CAC (customer acquisition cost), Magic Number and SaaS Quick Ratio are all very valuable tools. But the challenge in using derived metrics such as these is that there are often many assumptions, simplifications and sampling choices that need to go into these calculations, thus leaving the door open to skewed results.

For example, when your company has only been selling for a year or two, it is extremely hard to know your true lifetime customer value. For starters, how do you know the right length of a “lifetime?”

Taking one divided by your annual dollar churn rate is quite imperfect, especially if all or most of your customers have not yet reached their first renewal decision. How much account expansion is reasonable to assume if you only have limited evidence?

LTV is most helpful if based on gross margin, not revenue, but gross margins are often skewed initially. When there are only a few customers to service, cost of goods sold (COGS) can appear artificially low because the true costs to serve have not yet been tracked as distinct cost centers as most of your team members wear multiple hats and pitch in ad hoc.

Likewise, metrics derived from sales and marketing costs, such as CAC and Magic Number, can also require many subjective assumptions. When it’s just founders selling, how much of their time and overhead do you put into sales costs? Did you include all sales-related travel, event marketing and PR costs? I can’t tell you the number of times entrepreneurs have touted having a near-zero CAC when they are just starting out and have only handfuls of customers — which were mostly sold by the founder or are “friendly” relationships.

Even if you think you have nearly zero CAC today, you should expect dramatically rising sales costs once professional sellers, marketers, managers, and programs are put in place as you scale.

One alternative to using derived metrics is to examine raw data, which is less prone to assumptions and subjectivity. The problem is how to do this efficiently and without losing the forest for the trees. The best tool I have encountered for measuring sales efficiency is called the 4×2 (that’s “four by two”) which I credit to Steve Walske, one of the master strategists of software sales, and the former CEO of PTC, a company renowned for its sales effectiveness and sales culture. [Here’s a podcast I did with Steve on How to Build a Sales Team.]

The 4×2 is a color-coded chart where each row is an individual seller on your team and the columns are their quarterly performance shown as dollars sold. [See a 4×2 chart example below].

Sales are usually measured as net new ARR, which includes new accounts and existing account expansions net of contraction, but you can also use new TCV (total contract value), depending on which number your team most focuses. In addition to sales dollars, the percentage of quarterly quota attainment is shown. The name 4×2 comes from the time frame shown: trailing four quarters, the current quarter, and the next quarter.

Color-coding the cells turns this tool from a dense table of numbers into a powerful data visualization. Thresholds for the heatmap can be determined according to your own needs and culture. For example, green can be 80% of quota attainment or above, yellow can be 60% to 79% of quota, and red can be anything below 60%.

Examining individual seller performance in every board meeting or deck is a terrific way to quickly answer many important questions, especially early on as you try to figure out your true position on the Sales Learning Curve. Publishing such leaderboards for your Board to see also tends to motivate your sales people, who are usually highly competitive and appreciate public recognition for a job well done, and likewise loathe to fall short of their targets in a public setting.

4x2 chart venrock saas

A sample 4×2 chart.

Some questions the 4×2 can answer:

Overall performance and quota targets

How are you doing against your sales plan? Lots of red is obviously bad, while lots of green is good. But all green may mean that quotas are being set too low. Raising quotas even by a small increment for each seller quickly compounds to yield big difference as you scale, so having evidence to help you adjust your targets can be powerful. A reasonable assumption would be annual quota for a given rep set at 4 to 5 times their on-target earnings potential.

 


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Boeing Starliner crew capsule and Atlas V rocket complete dress rehearsal ahead of test flight

01:23 | 7 December

Boeing and launch partner United Launch Alliance (ULA) completed a key step today in pursuit of launching U.S. astronauts aboard their commercial spacecraft. The Boeing CST-100 Starliner crew capsule was atop the ULA Atlas V rocket at Cape Canaveral Air Force Station’s Launch Complext 41 in Florida, with the rocket fully fuelled while the combined crew all took part in a dress rehearsal called the “integrated Day of Launch Test – aka IDOLT because space people all love acronyms so much.

The rehearsal paves the way for the uncrewed Orbital Flight Test (OFT) that NASA, ULA and Boeing are targeting for December 20 (which just changed today from December 19), which will be exactly what the first crewed mission aboard the Starliner will be, but without the crew on board. Today’s test involved everything leading up to the actual launch, including real feeling, a launch countdown, preparing and checking the access hatch to the crew capsule and more.

This kind of practice was standard during the days of Shuttle launches, and helps ensure that everyone knows what to do and when, and that more than just knowing, they can demonstrate that it works exactly as it’s supposed in a real-world setting. The full integrated dress rehearsal is especially important, since while you can always drill teams independently, you never know exactly how things are going to work until you run them all together.

As mentioned,d next up is the crucial OFT that will set the stage for a crewed launch early next year. The current target is December 20, so Boeing and its partners should get this in just before year’s end, if all goes to plan.

 


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Bird lays off several Scoot employees

00:56 | 7 December

Bird has laid off less than two dozen employees, The San Francisco Chronicle first reported. The layoffs affect employees Bird brought on board following its ~$25 million acquisition of Scoot earlier this year.

Those affected were salaried employees and/or people with technical backgrounds, according to Bird.

“The integration of Bird and Scoot does not impact or change our previous or future commitments to San Francisco or to providing its residents and visitors access to the highest quality and most reliable shared micromobility vehicles and services,” a Bird spokesperson told TechCrunch. “We are planning to relocate a number of Scoot team members to our Santa Monica headquarters while also maintaining an office in San Francisco for our operations and maintenance teams as well as a number of regionally specific roles.”

Scoot currently operates electric kick scooters and mopeds in San Francisco, where it’s one of four companies permitted to do so, as well as other types of vehicles in Santiago and Barcelona.

This round marks Bird’s second set of layoffs this year. In March, Bird laid off between four to five percent of its workforce. Those layoffs were part of Bird’s annual performance review process and only affected U.S.-based employees.

In October, Bird closed a $275 million Series D round led by CDPQ and Sequoia Capital at a $2.5 billion pre-money valuation. That same month, at TechCrunch Disrupt San Francisco, Bird CEO Travis VanderZanden told me he wants the Scoot brand to live on.

“We think it is a strong brand particularly with cities and so we want it to live on,” he said. “It’ll certainly live on in San Francisco. And then we’re still trying to figure out in other cities what makes the most sense for the brand.”

 


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AncestryDNA And Google’s Calico Team Up To Study Genetic Longevity
Peter Short
I'm still fascinated by DNA though I favour pure chemistry what could be
Offered is for future gen…
Peter Short

U.K. Push For Better Broadband For Startups
Verg Matthews
There has to an email option icon to send to the clowns in MTNL ... the govt of India's service pro…
Verg Matthews

CrunchWeek: Apple Makes Music, Oculus Aims For Mainstream, Twitter CEO Shakeup
Peter Short
Noted Google maybe grooming Twitter as a partner in Social Media but with whistle blowing coming to…
Peter Short

CrunchWeek: Apple Makes Music, Oculus Aims For Mainstream, Twitter CEO Shakeup
Peter Short
Noted Google maybe grooming Twitter as a partner in Social Media but with whistle blowing coming to…
Peter Short